Open the filing on EDGARFinancial Performance Summary Investor Contact:Dave Styblo, CFAInvestor.Relations@ardenthealth.com(615) 296-3016Media Contact:Rebecca Kirkhamrebecca.kirkham@ardenthealth.com(615) 296-3000 Adjusted EBITDAR is a commonly used non-GAAP valuation measure used by our management, research analysts, purchasing may impact our competitive position; (8) inability to recruit and retain quality physicians, as well as increasing Ardent Health, Inc. Ardent Health, Inc. Ardent Health, Inc. Ardent Health, Inc. Ardent Health, Inc. Ardent Health, Inc. Ardent Health, Inc. Ardent Health, Inc.
Ardent Health Reports Fourth Quarter 2025 Results
cost to contract with hospital-based physicians; (9) changes to physician utilization practices and treatment methodologies Introducing 2026 Financial Guidance investors and other interested parties to evaluate and compare the enterprise value of different companies in our Consolidated Income Statements Consolidated Income Statements Consolidated Statements of Cash Flows Consolidated Balance Sheets Operating Statistics Supplemental Non-GAAP Disclosures Supplemental Non-GAAP Disclosures Supplemental Non-GAAP Disclosures and other factors outside our control that impact demand for medical services and may reduce our revenues and ability to Fourth quarter 2025 year-over-year growth rates were negatively impacted by the Company recording two quarters of industry. Adjusted EBITDAR excludes: (1) certain material noncash items and unusual or non-recurring items that we do (Unaudited; dollars in thousands, except per share amounts) (Unaudited; dollars in thousands, except per share amounts) (Unaudited; in thousands) (Unaudited; dollars in thousands, except per share amounts) (Unaudited) (Unaudited; in thousands) (Unaudited; in thousands) (Unaudited; in millions) grow profitability; (10) continued industry trends toward value-based purchasing, third party payor consolidation and care financial benefit from the New Mexico state directed payment program in the prior year quarter. The Company is providing initial full-year 2026 financial guidance. The guidance incorporates a number of assumptions, not expect to continue in the future; (2) certain other adjustments that do not impact our enterprise value; and (3) rent coordination among healthcare providers; (11) inability to successfully complete acquisitions or strategic JVs or inability to including headwinds from annualization of elevated professional fees and other rate pressures driven by payor denials, expense payable to our REITs. We operate 30 acute care hospitals, 12 of which we lease from two REITs, Ventas and Years Ended December 31, 20252024Cash flows from operating activities: Net income$230,135$299,708Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization155,703146,288Other non-operating losses (gains)1,275(4,702)Loss on extinguishment and modification of debt5152,158Amortization of deferred financing costs and debt discounts4,3795,468Deferred income taxes43,59424,044Equity-based compensation39,29317,978(Income) loss from non-consolidated affiliates(1,043)5,835Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:Accounts receivable59,15540,001Inventories(3,148)(9,407)Prepaid expenses and other current assets(122,094)(136,009)Accounts payable and other accrued expenses and liabilities62,060(103,860)Accrued salaries and benefits68627,524Net cash provided by operating activities470,510315,026Cash flows from investing activities:Investment in acquisitions, net of cash acquired(2,504)(35,542)Purchases of property and equipment(211,904)(187,508)Proceeds from divestitures - 4,297Other179(1,707)Net cash used in investing activities(214,229)(220,460)Cash flows from financing activities:Proceeds from initial public offering, net of underwriting discounts and commissions - 208,656Proceeds from insurance financing arrangements15,60710,797Proceeds from long-term debt - 3,600Payments of principal on insurance financing arrangements(15,041)(10,443)Payments of principal on long-term debt(7,988)(108,371)Debt issuance costs(2,573)(2,450)Payments of initial public offering costs - (9,534)Distributions to noncontrolling interests(88,239)(72,856)Other(5,231)5,243Net cash (used in) provided by financing activities(103,465)24,642Net increase in cash and cash equivalents152,816119,208Cash and cash equivalents at beginning of period556,785437,577Cash and cash equivalents at end of period$709,601$556,785 December 31, 2025 (1)December 31, 2024 (1)AssetsCurrent assets:Cash and cash equivalents$709,601$556,785Accounts receivable686,102743,031Inventories118,593115,093Prepaid expenses112,646113,749Other current assets431,882304,093Total current assets2,058,8241,832,751Property and equipment, net935,769861,899Operating lease right of use assets292,651248,040Operating lease right of use assets, related party915,599929,106Goodwill879,451852,084Other intangible assets89,33576,930Deferred income taxes6,88812,321Other assets111,691142,969Total assets$5,290,208$4,956,100 Liabilities and EquityCurrent liabilities:Current installments of long-term debt$23,444$9,234Accounts payable457,936401,249Accrued salaries and benefits296,260295,117Other accrued expenses and liabilities268,904239,824Total current liabilities1,046,544945,424Long-term debt, less current installments1,075,7821,085,818Long-term operating lease liability260,600221,443Long-term operating lease liability, related party904,632919,313Self-insured liabilities241,050227,048Other long-term liabilities76,63634,697Total liabilities3,605,2443,433,743Redeemable noncontrolling interests(1,250)1,158Equity:Preferred stock, par value $0.01 per share; 50,000,000 shares authorized; no shares issued and outstanding - - Common stock, par value $0.01 per share; 750,000,000 shares authorized; 142,864,171 and 142,747,818 shares issued and outstanding as of December 31, 2025 and 2024, respectively1,4291,428Additional paid-in capital 788,472754,415Accumulated other comprehensive (loss) income(3,610)9,737Retained earnings501,607365,796Equity attributable to Ardent Health, Inc.1,287,8981,131,376Noncontrolling interests398,316389,823Total equity1,686,2141,521,199Total liabilities and equity$5,290,208$4,956,100 Three Months Ended December 31,Years Ended December 31, 2025% Change20242025% Change2024Total revenue (in thousands)$1,605,079(0.1)%$1,606,289$6,324,3396.0%$5,966,072Hospitals operated (at period end) (1)300.0%30300.0%30Licensed beds (at period end) (2)4,2810.0%4,2814,2810.0%4,281Utilization of licensed beds (3)49%4.3%47%50%8.7%46%Admissions (4)40,8961.5%40,300165,6825.3%157,295Adjusted admissions (5)88,5832.0%86,872349,6142.3%341,781Inpatient surgeries (6)9,4663.9%9,10838,2886.5%35,937Outpatient surgeries (7)23,976(1.3)%24,29691,361(2.3)%93,497Total surgeries33,4420.1%33,404129,6490.2%129,434Emergency room visits (8)158,256(1.7)%161,010637,3250.2%636,222Patient days (9)192,8514.7%184,167777,3617.3%724,363Total encounters (10)1,582,2196.8%1,481,6126,102,0345.5%5,785,709Average length of stay (11)4.723.3%4.574.691.7%4.61Net patient service revenue per adjusted admission (12)$17,757(2.4)%$18,200$17,7483.5%$17,144 Three Months Ended December 31,Years Ended December 31,2025202420252024Net income$74,262$140,891$230,135$299,708Adjusted EBITDA Addbacks:Income tax expense18,10926,35556,22363,352Interest expense12,38313,52855,20265,578Depreciation and amortization41,03737,854155,703146,288Noncontrolling interest earnings(29,306)(26,687)(94,324)(89,365)Loss on extinguishment and modification of debt - - 7,3443,388Other non-operating (gains) losses (1) - (4,702)1,130(4,910)Cybersecurity Incident recoveries, net (2) - (16,501)(22,655)(21,477)Certain legal matters and related costs9002,0009002,000Restructuring, exit and acquisition-related costs (3)5,3321,05713,27612,751Change in accounting estimate (4) - - 43,298 - New Mexico professional liability accrual (5) - - 54,468 - Epic expenses (6)1,9331,6734,8373,173Equity-based compensation9,1109,10539,29317,978Loss (income) from disposed operations185(1,980)2079Adjusted EBITDA$133,945$182,593$545,037$498,473Total revenue$1,605,079$1,606,289$6,324,339$5,966,072Adjusted EBITDA margin8.3%11.4%8.6%8.4% Three Months Ended December 31, 2025Year Ended December 31, 2025Net income$74,262$230,135Adjusted EBITDAR Addbacks:Income tax expense18,10956,223Interest expense12,38355,202Depreciation and amortization41,037155,703Noncontrolling interest earnings(29,306)(94,324)Loss on extinguishment and modification of debt - 7,344Other non-operating losses (1) - 1,130Cybersecurity Incident recoveries, net (2) - (22,655)Certain legal matters and related costs900900Restructuring, exit and acquisition-related costs (3)5,33213,276Change in accounting estimate (4) - 43,298New Mexico professional liability accrual (5) - 54,468Epic expenses (6)1,9334,837Equity-based compensation9,11039,293Loss from disposed operations185207Rent expense payable to REITs (7)41,786164,308Adjusted EBITDAR$175,731$709,345 Guidance for the Full Year Ending December 31, 2026LowHighNet income$221$280Adjusted EBITDA Addbacks:Income tax expense5873Interest expense5653Depreciation and amortization175170Noncontrolling interest earnings(92)(97)Cybersecurity Incident recoveries (1)(7)(7)Other expenses, including restructuring and enterprise system conversion costs2821Equity-based compensation4642Adjusted EBITDA$485$535 Years Ended December 31,20252024 Amount%Amount%Total revenue$6,324,339100.0%$5,966,072100.0%Expenses:Salaries and benefits2,657,70042.0%2,534,75642.5%Professional fees1,192,64518.9%1,097,11918.4%Supplies1,082,90817.1%1,033,12217.3%Rents and leases109,5861.7%103,5771.7%Rents and leases, related party152,9052.4%149,2292.5%Other operating expenses647,30810.3%496,2198.2%Interest expense55,2020.9%65,5781.1%Depreciation and amortization155,7032.5%146,2882.5%Loss on extinguishment and modification of debt7,3440.1%3,3880.1%Other non-operating gains(23,320)(0.4)%(26,264)(0.4)%Total operating expenses6,037,98195.5%5,603,01293.9%Income before income taxes286,3584.5%363,0606.1%Income tax expense56,2230.9%63,3521.1%Net income230,1353.6%299,7085.0%Net income attributable to noncontrolling interests94,3241.5%89,3651.5%Net income attributable to Ardent Health, Inc.$135,8112.1%$210,3433.5%Net income per share:Basic$0.96$1.59Diluted$0.96$1.58Weighted-average common shares outstanding:Basic140,760,736132,439,695Diluted141,450,309132,744,577 realize all of the anticipated benefits; (12) liabilities because of professional liability and other claims brought against our For the fourth quarter of 2025: Exchange disruption, and restoration of short-term compensation. The outlook also assumes tailwinds from mid-single digit MPT, pursuant to long-term lease agreements. Additionally, we lease 18 medical office buildings from Ventas pursuant Brentwood, Tenn. (March 4, 2026) - Ardent Health, Inc. (NYSE: ARDT) ("Ardent Health" or the "Company"), a leading Three Months Ended December 31,20252024 Amount%Amount%Total revenue$1,605,079100.0%$1,606,289100.0%Expenses:Salaries and benefits651,38940.6%653,96640.7%Professional fees309,69319.3%286,29917.8%Supplies277,53317.3%264,08816.4%Rents and leases27,6141.7%27,3261.7%Rents and leases, related party38,9302.4%37,8162.4%Other operating expenses154,1299.5%141,3688.8%Interest expense12,3830.8%13,5280.8%Depreciation and amortization41,0372.6%37,8542.4%Loss on extinguishment and modification of debt - 0.0%1,8980.0%Other non-operating gains - 0.0%(23,202)(1.4)%Total operating expenses1,512,70894.2%1,439,04389.6%Income before income taxes92,3715.8%167,24610.4%Income tax expense18,1091.2%26,3551.6%Net income74,2624.6%140,8918.8%Net income attributable to noncontrolling interests29,3061.8%26,6871.7%Net income attributable to Ardent Health, Inc.$44,9562.8%$114,2047.1%Net income per share:Basic$0.32$0.82Diluted$0.32$0.81Weighted-average common shares outstanding:Basic141,359,534140,044,698Diluted142,099,858140,828,828 hospitals, physician practices, outpatient facilities or other business operations; (13) exposure to certain risks and core earnings growth and IMPACT program savings. All guidance is current as of the time provided and is subject to change. to lease agreements with initial terms of 12 years and eight options to renew for additional five-year terms. Our provider of healthcare in growing mid-sized urban communities across the U.S., today announced results for the quarter uncertainties by the JVs through which we conduct a significant portion of our operations, including anticipated synergies of
- Total revenue decreased 0.1% year-over-year to $1,605 million, driven primarily by a 2.0% increase in adjusted management views the long-term lease agreements with Ventas and MPT, as more like financing arrangements than ended December 31, 2025. past acquisitions and the risk that transactions may not receive necessary government clearances; (14) failure to obtain admissions offset by a 2.4% decrease in net patient service revenue per adjusted admission. Total revenue (Unaudited; dollars in millions, except per share amount)Full Year 2026 GuidanceTotal revenue$6,400 - $6,700Net income attributable to Ardent Health, Inc.$129 - $183Adjusted EBITDA$485 - $535Rent expense payable to REITs$168 - $168Diluted earnings per share$0.90 - $1.27Adjusted admissions growth1.5% - 2.5%Capital expenditures$225 - $265 true operating leases, with the rent payable to such REITs being similar to interest expense. As a result, our capital drugs and medical supplies at favorable prices or sufficient volumes; (15) operational, legal and financial risks associated increased approximately 3% year-over-year when adjusting for the New Mexico state directed payment program structure is different than many of our competitors, especially those whose real estate portfolio is predominately with outsourcing functions to third parties; (16) our facilities are heavily concentrated in Texas and Oklahoma, which makes that included two quarters of financial benefit in the prior year quarter. owned and not leased. Excluding the rent payable to such REITs allows investors to compare our enterprise value to us sensitive to regulatory, economic and competitive conditions and changes in those states; (17) negative impact of severe
Fourth Quarter 2025 Operating and Financial Summary
those of other healthcare companies without regard to differences in capital structures, leasing arrangements and weather, climate change, and other factors beyond our control, which could restrict patient access to care or cause one or
- Net income attributable to Ardent Health was $45 million, or $0.32 per diluted share, compared to net income All comparisons are versus the same prior year period. See the footnotes to the Operating Statistics table of this press Supplemental Non-GAAP Financial Information geographic markets, which can vary significantly among companies. Our management also uses Adjusted EBITDAR as more facilities to close temporarily or permanently; (18) risks related to the Master Lease with Ventas (“Ventas Master attributable to Ardent Health of $114 million, or $0.81 per diluted share, in the fourth quarter of 2024. release for definitions of the metrics below and a full list of key operating metrics. one measure in determining the value of prospective acquisitions or divestitures. Finally, financial covenants in certain Lease”) and its restrictions and limitations on our business; (19) the impact of our significant indebtedness and the ability to We have included certain non-GAAP financial measures in this press release, including Adjusted EBITDA, Adjusted EBITDA •Adjusted EBITDA decreased 26.6% year-over-year to $134 million. of our lease agreements, including the Ventas Master Lease, use Adjusted EBITDAR as a measure of compliance. refinance such indebtedness on acceptable terms; (20) our failure to comply with complex laws and regulations applicable Total Revenue4Q25: $1.61 billion2025: $6.32 billion; 6.0% growth Y/YNet Income Attributable to Ardent Health 4Q25: $45 million Adjusted EBITDA(1)4Q25: $134 million2025: $545 million; 9.3% growth Y/YAdjusted EBITDAR(1)4Q25: $176 millionAdmissions4Q25: 1.5% growth Y/YAdjusted Admissions4Q25: 2.0% growth Y/YOperating Cash Flow 4Q25: $223 million 87% growth Y/YIssuing Full-Year 2026 GuidanceTotal Revenue: $6,400 - $6,700 millionAdjusted EBITDA(1): $485 - $535 million margin, and Adjusted EBITDAR. We define these terms as follows: to the healthcare industry or to adjust our operations in response to changing laws and regulations; (21) the impact of Adjusted EBITDAR does not reflect our cash requirements for leasing commitments. As such, our presentation of governmental claims or governmental investigations, payor audits and litigation brought against our hospitals, physician For the full-year 2025, revenue increased 6.0% to $6.32 billion, Adjusted EBITDA grew 9.3% to $545 million, and Adjusted Adjusted EBITDAR should not be construed as a performance or liquidity measure. practices, outpatient facilities or other business operations; (22) actual or perceived failures to comply with applicable data •Adjusted EBITDA and Adjusted EBITDA Margin. Adjusted EBITDA is defined as net income plus (i) provision for income EBITDA margin expanded 20bps to 8.6%. protection, privacy and security laws, regulations, standards and other requirements; (23) the impact of a deterioration of taxes, (ii) interest expense and (iii) depreciation and amortization expense (or EBITDA), as adjusted to deduct Because not all companies use identical calculations, our presentation of Adjusted EBITDAR may not be comparable to public health conditions associated with a future pandemic, epidemic or outbreak of infectious disease; (24) inability to or noncontrolling interest earnings, and excludes the effects of loss on extinguishment and modification of debt; other other similarly titled measures of other companies. While we believe this is a useful supplemental valuation measure delay in building, acquiring, selling, renovating or expanding our healthcare facilities; (25) failure to comply with federal and non-operating (gains) losses; recoveries from the cybersecurity incident in November 2023 (the "Cybersecurity The Company’s guidance is based on current plans and expectations and is subject to a number of known and unknown Operating Performance Summary for investors and other users of our financial information, you should not consider Adjusted EBITDAR in isolation or as a state laws relating to Medicare and Medicaid enrollment, permit, licensing and accreditation requirements; (26) the results (1)Cybersecurity Incident recoveries represent insurance recovery proceeds associated with the Cybersecurity Incident. Incident"), net of incremental information technology and litigation costs; certain legal matters and related costs; uncertainties and risks, including those set forth below under the heading "Forward-Looking Statements." The Company substitute for net income or any other items calculated in accordance with GAAP. Adjusted EBITDAR has inherent of our efforts to use technology, including artificial intelligence (“AI”) and machine learning, to drive efficiencies, better restructuring, exit and acquisition-related costs; change in accounting estimate; New Mexico professional liability does not forecast the impact of items such as, but not limited to, losses (gains) on sales of facilities, losses on retirement of The following table provides a summary of certain key operating metrics for the fourth quarter of 2025 compared to the material limitations as a valuation measure, because it adds back certain expenses to net income, resulting in those outcomes and an enhanced patient experience; (27) our status as a controlled company; (28) conflicts of interest between accrual; expenses incurred in connection with the implementation of our integrated health information technology debt, legal claim costs (benefits) and impairments of long-lived assets. The Company does not believe that it can forecast same prior year period. See the footnotes to the Operating Statistics table of this press release for definitions of the metrics expenses not being taken into account in the valuation measure. The payment of taxes and rent is a necessary element our controlling stockholder and other holders of our common stock; and (29) other risk factors described in our filings with system provided by Epic Systems; equity-based compensation expense; and loss (income) from disposed operations. these items with sufficient accuracy because of the inherent difficulty of forecasting the timing or amount of various items below and a full list of key operating metrics. of our valuation. Because Adjusted EBITDAR excludes these and other items, it has material limitations as a measure of the Securities and Exchange Commission. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenue. that have not yet occurred and are out of the Company’s control or cannot be reasonably predicted. our valuation. (1)Hospitals operated (at period end). This metric represents the total number of hospitals operated by us at the end of the applicable period, irrespective of Three Months Ended December 31,(Unaudited)20252024% ChangeAdjusted admissions88,58386,8722.0%Admissions40,89640,3001.5%Inpatient surgeries9,4669,1083.9%Outpatient surgeries23,97624,296(1.3%)Total surgeries33,44233,4040.1%Emergency room visits158,256161,010(1.7%)Net patient service revenue per adjusted admission$17,757$18,200(2.4%) whether the hospital real estate is (i) owned by us, (ii) leased by us or (iii) held through a controlling interest in a JV. This metric includes the managed Many of the important factors that will determine these results are beyond our ability to control or predict. You are clinical operations of the hospital at UT Health North Campus in Tyler, Texas ("UT Health North Campus Tyler"), a hospital owned by The University of Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP performance measures used by our management and cautioned not to put undue reliance on any forward-looking statements, which speak only as of the date of this press Texas Health Science Center at Tyler ("UTHSCT"), an affiliate of The University of Texas System. Since we only manage the clinical operations of UT Health external users of our financial statements, such as investors, analysts, lenders, rating agencies and other interested Fourth Quarter and Year End 2025 Results Conference Call Forward-Looking Statements release. Except as otherwise required by law, we do not assume any obligation to publicly update or release any revisions to North Campus Tyler, the financial results of such entity are not consolidated under Ardent Health, Inc. parties, to evaluate companies in our industry. Adjusted EBITDA and Adjusted EBITDA margin are performance these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the (2)Licensed beds (at period end). This metric represents the total number of beds for which the appropriate state agency licenses a facility, regardless of measures that are not prepared in accordance with GAAP and are presented in this press release because our The Company will host a conference call to discuss its fourth quarter and year end financial results on March 5, 2026, at This press release may contain "forward-looking statements," as that term is defined in the U.S. federal securities laws. (1)Other non-operating losses include losses realized on certain non-recurring events or events that are non-operational in nature. occurrence of unanticipated events. All references to "Company," "Ardent Health," "Ardent," "we," "our" and "us" as used whether the beds are actually available for patient use. (1) Adjusted EBITDA and Adjusted EBITDAR are financial measures that have not been prepared in a manner that complies with U.S. generally accepted management considers them important analytical indicators commonly used within the healthcare industry to evaluate 10:00 a.m. Eastern Time. A webcast of the conference call will be available in the Investor Relations section of the These forward-looking statements include, but are not limited to, statements other than statements of historical facts, throughout this release refer to Ardent Health, Inc. and its affiliates, unless stated otherwise or indicated by context. (2)Cybersecurity Incident recoveries, net represent insurance recovery proceeds associated with the Cybersecurity Incident, net of incremental information accounting principles ("GAAP"). See "Supplemental Non-GAAP Financial Information" and reconciliations of non-GAAP measures to their most (3)Utilization of licensed beds. This metric represents a measure of the actual utilization of our inpatient facilities, computed by (i) dividing patient days by (1)Other non-operating (gains) losses include gains and losses realized on certain non-recurring events or events that are non-operational in nature. financial performance and allocate resources. Further, our management believes that Adjusted EBITDA and Adjusted Company’s corporate website at https://ir.ardenthealth.com. To listen to a live broadcast, go to the site at least 15 minutes including, among others, statements relating to our future financial performance, our business prospects and strategy, technology and litigation costs. comparable GAAP financial measures contained later in this press release. the number of days in each period, and (ii) further dividing that number by average licensed beds, which is calculated by dividing total licensed beds (at EBITDA margin are useful financial metrics to assess our operating performance from period to period by excluding (2)Cybersecurity Incident recoveries, net represent insurance recovery proceeds associated with the Cybersecurity Incident, net of incremental information anticipated financial position, liquidity and capital needs, the industry in which we operate and other similar matters. prior to the scheduled start time in order to register, download, and install any necessary audio software. period end) by the number of days in the period, multiplied by the number of days in the period the licensed beds were in existence. (3)Restructuring, exit and acquisition-related costs represent (i) enterprise restructuring costs, including severance costs related to work force reductions of technology and litigation costs. Words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "could," "would," certain material non-cash items and unusual or non-recurring items that we do not expect to continue in the future and $4.3 million and $10.3 million for the three months ended and year ended December 31, 2025, respectively, (ii) penalties and costs incurred for terminating Solid Finish to 2025: IMPACT Program Building Momentum; Robust Cash Flow Generation•"I'm pleased with tangible progress from the deliberate, measurable actions we took during the fourth quarter to mitigate the payor denial and professional fee industry pressures we outlined on the third quarter earnings call," stated Marty Bonick, President and Chief Executive Officer of Ardent Health. "Disciplined execution and expense optimization drove solid fourth quarter adjusted EBITDA results. Our IMPACT program is building traction and resulted in significant SWB expense improvements, particularly in contract labor. Additionally, I'm encouraged by payor denial and professional fee dynamics that were stable in the fourth quarter."•"The solid finish to the year resulted in 2025 revenue and adjusted EBITDA growth of 6% and 9%, respectively, with adjusted EBITDA margins expanding 20 basis points," added Bonick. "Furthermore, we generated robust operating cash flow of $471 million in 2025, up nearly 50%. We also strengthened our balance sheet by improving net leverage to 2.5x and growing cash to over $700 million at year-end." •"We enter 2026 with improving momentum from our IMPACT program, which we now expect to generate $55 million of savings this year, up from $40 million previously. We are highly focused on optimizing revenue, disciplined expense management, and productivity, all while delivering superior quality," continued Bonick. "At the same time, we are stepping over annualization of the aforementioned industry headwinds and the expiration of enhanced Exchange subsidies. As such, we are taking a prudent approach to establishing our 2026 adjusted EBITDA guidance of $485-$535 million."•"We remain confident in our ability to deliver long-term shareholder value,” stated Bonick. "We expect to return to adjusted EBITDA growth in 2027, and over the longer-term our business is strategically well-positioned to leverage key pillars including: durable demand, operational efficiencies captured by our IMPACT program, and capital deployment supported by our strong balance sheet." (4)Admissions. This metric represents the number of patients admitted for inpatient treatment during the applicable period. pre-existing contracts at acquired facilities of $0.8 million and $1.2 million for the three months ended and year ended December 31, 2025, respectively, and "will," "may," "can," "continue," "potential," "should" and the negative of these terms or other comparable terminology (3)Restructuring, exit and acquisition-related costs represent (i) enterprise restructuring costs, including severance costs related to work force reductions of $4.3 certain other adjustments we believe are not reflective of our ongoing operations and our performance. To participate in the live teleconference: (iii) third-party professional fees and expenses, salaries and benefits, and other internal expenses incurred in connection with potential and completed (5)Adjusted admissions. This metric is used by management as a general measure of combined inpatient and outpatient volume. Adjusted admissions million and $0.3 million for the three months ended December 31, 2025 and 2024, respectively, and $10.3 million and $10.4 million for the years ended often identify forward-looking statements. When reviewing this press release, you should keep in mind the risks and United States Live: 1-888-596-4144 acquisitions of $0.2 million and $1.8 million for the three months ended and year ended December 31, 2025, respectively. provides management with a key performance indicator that considers both inpatient and outpatient volumes by applying an inpatient volume measure uncertainties that could impact our business. These forward-looking statements are not guarantees of future performance December 31, 2025 and 2024, respectively, (ii) penalties and costs incurred for terminating pre-existing contracts at acquired facilities of $0.8 million and $0.2 Because not all companies use identical calculations, our presentation of Adjusted EBITDA and Adjusted EBITDA margin (admissions) to a ratio of gross inpatient and outpatient revenue to gross inpatient revenue. Gross inpatient and outpatient revenue reflect gross inpatient International Live: 1-646-968-2525 million for the three months ended December 31, 2025 and 2024, respectively, and $1.2 million and $0.8 million for the years ended December 31, 2025 and (4)Change in accounting estimate reflects the reduction in total revenue of $42.6 million and its $0.7 million impact on noncontrolling interest earnings as a and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated and outpatient charges prior to estimated contractual adjustments, uninsured discounts, implicit price concessions, and other discounts. The calculation of may not be comparable to other similarly titled measures of other companies. While we believe these are useful 2024, respectively, and (iii) third-party professional fees and expenses, salaries and benefits, and other internal expenses incurred in connection with Access Code: 4437657 result of a change in our accounting estimate of the collectability of accounts receivable. See Note 2 to our consolidated financial statements included in our by the forward-looking statements. These risks and uncertainties could cause actual results to differ materially from those adjusted admissions is summarized as follows: supplemental performance measures for investors and other users of our financial information, you should not potential and completed acquisitions of $0.2 million and $0.6 million for the three months ended December 31, 2025 and 2024, respectively, and $1.8 million Annual Report on Form 10-K for further detail.
- Admissions for the fourth quarter of 2025 increased 1.5% year-over-year, driven by strong inpatient surgery growth. Adjusted Admissions=Admissionsx(Gross Inpatient Revenue + Gross Outpatient Revenue)Gross Inpatient Revenue projected in forward-looking statements contained in this press release or implied by past results and trends. Our historical and $1.6 million for the years ended December 31, 2025 and 2024, respectively. consider Adjusted EBITDA and Adjusted EBITDA margin in isolation or as a substitute for net income or any other items (5)During the year ended December 31, 2025, we recorded adjustments to our professional liability expense of $63.3 million. These adjustments included $54.5 To listen to a replay of the teleconference, which will be available through March 19, 2026: results are not necessarily indicative of the results that may be expected for any period in the future. Factors, risks, and
- Surgeries for the fourth quarter of 2025 increased 0.1% year-over-year. The increase in total surgeries reflected (4)Change in accounting estimate reflects the reduction in total revenue of $42.6 million and its $0.7 million impact on noncontrolling interest earnings as a million of additional expense recorded during the third quarter of 2025 for adverse prior-period claim developments in New Mexico that was primarily calculated in accordance with GAAP. Adjusted EBITDA and Adjusted EBITDA margin have inherent material limitations uncertainties that could cause actual outcomes and results to be materially different from those contemplated include, United States Replay: 1-800-770-2030 result of a change in our accounting estimate of the collectability of accounts receivable. See Note 2 to our consolidated financial statements included in our attributable to recent claim settlements and ongoing litigation arising from the actions of a single provider who was employed between 2019 and 2022. See inpatient surgery growth of 3.9% largely offset by a decrease in outpatient surgeries of 1.3%. (6)Inpatient surgeries. This metric represents the number of surgeries performed on patients who have been admitted to our hospitals. Pain management, c- as performance measures, because they add back certain expenses to net income, resulting in those expenses not among others: (1) general economic and business conditions, both nationally and in the regions in which we operate, Annual Report on Form 10-K for further detail. Note 11 to our consolidated financial statements included in our Annual Report on Form 10-K for further detail. International Replay: 1-647-362-9199 sections, and certain diagnostic procedures are excluded from inpatient surgeries. being taken into account in the performance measures. We have borrowed money, so interest expense is a necessary including the impact of challenging macroeconomic conditions and inflationary pressures, current geopolitical instability, Access Code: 4437657 (5)During the year ended December 31, 2025, we recorded adjustments to our professional liability expense of $63.3 million. These adjustments included $54.5 (6)Epic expenses consist of various costs incurred in connection with the implementation of Epic, our health information technology system. These costs (7)Outpatient surgeries. This metric represents the number of surgeries performed on patients who have not been admitted to our hospitals. Pain element of our costs. Because we have material capital and intangible assets, depreciation and amortization expense and impacts from the imposition of, or changes in, tariffs, as well as the potential impact on us of the federal government million of additional expense recorded during the third quarter of 2025 for adverse prior-period claim developments in New Mexico that was primarily included (i) professional fees of $0.6 million and $2.1 million for the three months ended and year ended December 31, 2025, respectively, (ii) salaries and management, c-sections, and certain diagnostic procedures are excluded from outpatient surgeries. are necessary elements of our costs. Likewise, the payment of taxes is a necessary element of our operations. Because attributable to recent claim settlements and ongoing litigation arising from the actions of a single provider who was employed between 2019 and 2022. See benefits of $1.3 million and $2.6 million for the three months ended and year ended December 31, 2025, respectively, and (iii) other expenses related to shutdown or other uncertain political, financial, credit and capital conditions; (2) possible reductions or other changes in Balance Sheet, Cash Flow & Liquidity Update Note 11 to our consolidated financial statements included in our Annual Report on Form 10-K for further detail. one-time training and onboarding support costs of $0.1 million for the year ended December 31, 2025. Epic expenses do not include ongoing operating costs (8)Emergency room visits. This metric represents the total number of patients provided with emergency room treatment during the applicable period. Adjusted EBITDA and Adjusted EBITDA margin exclude these and other items, they have material limitations as Medicare, Medicaid and other state programs, including Medicaid supplemental payment programs, Medicaid waiver About Ardent Health of the Epic system. measures of our performance. programs or state directed payments, that could have an adverse effect on our revenues and business; (3) reduction in the (6)Epic expenses consist of various costs incurred in connection with the implementation of Epic, our health information technology system. These costs (9)Patient days. This metric represents the total number of days of care provided to patients admitted to our hospitals during the applicable period. As of December 31, 2025, the Company had total cash and cash equivalents of $710 million and total debt of $1.1 billion. included (i) professional fees of $0.6 million and $1.6 million for the three months ended December 31, 2025 and 2024, respectively, and $2.1 million and (7)Rent expense payable to REITs for the three months ended and year ended December 31, 2025 consists of rent expense of $38.9 million and $152.9 million, reimbursement rates paid by commercial payors, increased reimbursement denials or payment delays by commercial The Company’s net leverage ratio as of December 31, 2025, was 0.8x, as calculated under the Company's credit (10)Total encounters. This metric represents the total number of events where healthcare services are rendered resulting in a billable event during the $3.1 million for the years ended December 31, 2025 and 2024, respectively, (ii) salaries and benefits of $1.3 million and $0.1 million for the three months Ardent Health (NYSE: ARDT) is a leading provider of healthcare in growing mid-sized urban communities across the U.S. respectively, related to the Ventas Master Lease and other lease agreements with Ventas for medical office buildings and rent expense of $2.9 million and payors, our inability to retain and negotiate favorable contracts with private third party payors, or an increasing volume of •Adjusted EBITDAR. Adjusted EBITDAR is defined as Adjusted EBITDA further adjusted to add back rent expense payable applicable period. This includes both hospital and ambulatory patient interactions. ended December 31, 2025 and 2024, respectively, and $2.6 million and $0.1 million for the years ended December 31, 2025 and 2024, respectively, and (iii) $11.4 million, respectively, related to a lease arrangement with MPT for the lease of Hackensack Meridian Mountainside Medical Center. agreements, and its lease-adjusted net leverage ratio was 2.5x, an improvement from 2.9x as of December 31, 2024. At the With a focus on people and investments in innovative services and technologies, Ardent is passionate about making uninsured or underinsured patients; (4) effects of changes in healthcare policy or legislation, including the One Big Beautiful to real estate investment trusts ("REITs"), which consists of rent expense pursuant to the master lease agreement (the other expenses related to one-time training and onboarding support costs of $0.1 million for the year ended December 31, 2025. Epic expenses do not end of the fourth quarter, the Company’s available liquidity was $1 billion. (11)Average length of stay. This metric represents the average number of days admitted patients stay in our hospitals. healthcare better and easier to access. Through its subsidiaries, the Company delivers care through a system of 30 acute Bill Act (the "OBBBA") and any other reforms that have or may be undertaken by the current presidential administration, include ongoing operating costs of the Epic system. "Ventas Master Lease") with Ventas, Inc. ("Ventas"), lease agreements with Ventas for 18 medical office buildings and a care hospitals, more than 280 sites of care, and over 2,000 employed and affiliated providers across six states. For more and legal and regulatory restrictions on our hospitals that have physician owners; (5) the ability to achieve operating and (12)Net patient service revenue per adjusted admission. This metric represents net patient service revenue divided by adjusted admissions for the applicable lease arrangement with Medical Properties Trust, Inc. ("MPT") for the Hackensack Meridian Mountainside Medical Supplemental Cash Flow Information:Interest payments, net of capitalized interest$65,740$74,976Non-cash purchases of property and equipment$16,369$9,276Offering costs not yet paid$ - $330Income tax payments, net$36,510$41,603 During the fourth quarter of 2025, net cash provided by operating activities was $223 million, compared to $120 million in period. Net patient service revenue reflects gross inpatient and outpatient charges less estimated contractual adjustments, uninsured discounts, implicit information, please visit ardenthealth.com. financial targets, develop and execute mitigation plans to offset to the extent possible impacts from the OBBBA, the Center. price concessions, and other discounts. (1)As of December 31, 2025 and 2024, the consolidated balance sheets included total liabilities of consolidated variable interest entities of $335.1 million and $306.4 the same prior year period. For the full-year 2025, net cash provided by operating activities increased 49% to $471 million. expiration of temporary enhanced subsidies for individuals eligible to purchase insurance coverage through health million, respectively. Refer to Note 2 of the Company's consolidated financial statements included in its Annual Report on Form 10-K for further discussion. insurance marketplaces and imposition of tariffs, attain expected levels of patient volumes and revenues, and control the During the fourth quarter of 2025, the Company repurchased 0.35 million shares of its common stock for $3 million. The costs of providing services; (6) security threats, catastrophic events and other disruptions affecting our, our service Company had $47 million remaining under its repurchase authorization as of December 31, 2025. providers’ or our joint venture ("JV") partners’ information technology and related systems, which have adversely affected, and could in the future adversely affect, our relationships with patients and business partners and subject us to legal claims and liabilities, reputational harm and business disruption and adversely affect our financial condition; (7) the highly Lease-adjusted net leverage ratio is defined as the Company's net debt as of December 31, 2025, plus 8x trailing twelve-month real estate investment trust ("REIT") rent expense as of the end of the fourth quarter of 2025, divided by trailing twelve-month Adjusted EBITDAR as of December 31, 2025. competitive nature of the healthcare industry and continued industry trends towards clinical transparency and value-based 1 2 3 4 5 6 7 8 9 10 11 12 13 14