Open the filing on EDGARFinancial Performance Summary 2026 Financial Guidance 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, competitive position; (8) inability to recruit and retain quality physicians and increased labor costs resulting from increased 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 Second Quarter 2026 Results
competition for staffing or a continued or increased shortage of experienced nurses, as well as the loss of key personnel, investors and other interested parties to evaluate and compare the enterprise value of different companies in our Condensed Consolidated Income Statements Condensed Consolidated Income Statements Condensed Consolidated Statements of Cash Flows Condensed Consolidated Balance Sheets Operating Statistics Supplemental Non-GAAP Disclosures Supplemental Non-GAAP Disclosures Supplemental Non-GAAP Disclosures including key members of our management team; (9) changes to physician utilization practices and treatment Second quarter 2026 year-over-year growth rates were negatively impacted by the Company recording two quarters of The Company is reaffirming its full-year 2026 revenue and adjusted EBITDA financial guidance. All guidance is current as 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) methodologies and other factors outside our control that impact demand for medical services and may reduce our financial benefit from the New Mexico state directed payment program in the prior year quarter as a result of delayed the time provided and is subject to change. not expect to continue in the future; (2) certain other adjustments that do not impact our enterprise value; and (3) rent revenues and ability to grow profitability; (10) continued industry trends toward value-based purchasing, third party payor renewal of the program in 2025. expense payable to REITs. We operate 30 acute care hospitals, 12 of which we lease from two REITs, Ventas and MPT, Six Months Ended June 30, 20262025Cash flows from operating activities: Net income$93,177$154,666Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization84,32875,510Other non-operating (gains) losses(1,886)777Amortization of deferred financing costs and debt discounts1,6222,474Deferred income taxes3,068(2,733)Equity-based compensation16,88120,509Income from non-consolidated affiliates(8,079)(2,956)Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:Accounts receivable(9,838)(14,251)Inventories2,571(3,118)Prepaid expenses and other current assets32,009(51,449)Accounts payable and other accrued expenses and liabilities(60,400)(50,590)Accrued salaries and benefits(16,940)(36,136)Net cash provided by operating activities136,51392,703Cash flows from investing activities:Purchases of property and equipment(66,766)(69,105)Other(316)(264)Net cash used in investing activities(67,082)(69,369)Cash flows from financing activities:Proceeds from insurance financing arrangements17,03310,959Payments of principal on insurance financing arrangements(8,192)(6,529)Payments of principal on long-term debt(6,937)(2,896)Distributions to noncontrolling interests(44,143)(39,525)Repurchase of common stock (13,031) - Other714(1,499)Net cash used in financing activities(54,556)(39,490)Net increase (decrease) in cash and cash equivalents14,875(16,156)Cash and cash equivalents at beginning of period709,601556,785Cash and cash equivalents at end of period$724,476$540,629Supplemental Cash Flow Information:Non-cash purchases of property and equipment$677$13,272 June 30, 2026(1)December 31, 2025 (1)AssetsCurrent assets:Cash and cash equivalents$724,476$709,601Accounts receivable695,950686,102Inventories116,022118,593Prepaid expenses147,895112,646Other current assets370,533431,882Total current assets2,054,8762,058,824Property and equipment, net920,044935,769Operating lease right of use assets300,509292,651Operating lease right of use assets, related party908,233915,599Goodwill879,262879,451Other intangible assets87,67889,335Deferred income taxes5,8216,888Other assets123,655111,691Total assets$5,280,078$5,290,208 Liabilities and EquityCurrent liabilities:Current installments of long-term debt$28,572$23,444Accounts payable429,769457,936Accrued salaries and benefits279,244296,260Other accrued expenses and liabilities238,738268,904Total current liabilities976,3231,046,544Long-term debt, less current installments1,073,2101,075,782Long-term operating lease liability268,054260,600Long-term operating lease liability, related party896,492904,632Self-insured liabilities242,771241,050Other long-term liabilities81,82476,636Total liabilities3,538,6743,605,244Redeemable noncontrolling interests(4,658)(1,250)Equity: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; 141,910,898 and 142,864,171 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively1,4191,429Additional paid-in capital 791,411788,472Accumulated other comprehensive loss(638)(3,610)Retained earnings558,356501,607Equity attributable to Ardent Health, Inc.1,350,5481,287,898Noncontrolling interests395,514398,316Total equity1,746,0621,686,214Total liabilities and equity$5,280,078$5,290,208 Three Months Ended June 30,Six Months Ended June 30, 2026% Change20252026% Change2025Total revenue (in thousands)$1,622,245(1.4)%$1,645,280$3,224,1152.6%$3,142,514Hospitals 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%(2.0)%50%50%0.0%50%Admissions (4)41,104(1.0)%41,53582,036(1.1)%82,924Adjusted admissions (5)89,3262.5%87,167175,5702.3%171,703Inpatient surgeries (6)9,106(7.5)%9,84018,362(3.8)%19,090Outpatient surgeries (7)22,649(0.9)%22,86044,7350.4%44,572Total surgeries31,755(2.9)%32,70063,097(0.9)%63,662Emergency room visits (8)156,8960.2%156,622313,064(1.5)%317,871Patient days (9)189,223(2.8)%194,738386,352(1.2)%390,952Total encounters (10)1,581,2076.0%1,491,9053,145,3216.9%2,942,534Average length of stay (11)4.60(1.7)%4.684.710.0%4.71Net patient service revenue per adjusted admission (12)$17,864(3.9)%$18,581$18,1110.6%$18,001 Three Months Ended June 30,Six Months Ended June 30,2026202520262025Net income$34,689$95,701$93,177$154,666Adjusted EBITDA Addbacks:Income tax expense8,51426,29124,61741,524Interest expense12,56914,72924,78028,905Depreciation and amortization41,34239,30984,32875,510Noncontrolling interest earnings(17,790)(22,751)(36,428)(40,333)Other non-operating losses (1) - 560 - 777Cybersecurity Incident recoveries, net (2) - - - (19,705)Certain legal matters and related costs462 - 2,464 - Other expenses, including development, restructuring and enterprise system conversion costs (3)27,2074,78134,9956,188Equity-based compensation7,95211,24616,88120,509Loss (income) from disposed operations67(5,877)33Adjusted EBITDA$114,951$169,873$238,937$268,074Total revenue$1,622,245$1,645,280$3,224,115$3,142,514Adjusted EBITDA margin7.1%10.3%7.4%8.5% Three Months Ended June 30, 2026Six Months Ended June 30, 2026Net income$34,689$93,177Adjusted EBITDAR Addbacks:Income tax expense8,51424,617Interest expense12,56924,780Depreciation and amortization41,34284,328Noncontrolling interest earnings(17,790)(36,428)Certain legal matters and related costs4622,464Other expenses, including development, restructuring and enterprise system conversion costs (1)27,20734,995Equity-based compensation7,95216,881Loss (income) from disposed operations6(5,877)Rent expense payable to REITs (2)41,57983,135Adjusted EBITDAR$156,530$322,072 Guidance for the Full Year Ending December 31, 2026Previous GuidanceRevised GuidanceLowHighLowHighNet income$221$280$202$260Adjusted EBITDA Addbacks:Income tax expense58735369Interest expense56535653Depreciation and amortization175170175170Noncontrolling interest earnings(92)(97)(92)(97)Cybersecurity Incident recoveries (1)(7)(7)(7)(7)Other expenses, including development, restructuring and enterprise system conversion costs (2)28215649Equity-based compensation46424238Adjusted EBITDA$485$535$485$535 Six Months Ended June 30,20262025 Amount%Amount%Total revenue$3,224,115100.0%$3,142,514100.0%Expenses:Salaries and benefits1,337,61741.5%1,329,34942.3%Professional fees644,91320.0%577,86918.4%Supplies548,17417.0%529,49416.8%Rents and leases55,0381.7%55,5861.8%Rents and leases, related party77,3722.4%75,8692.4%Other operating expenses339,98910.5%294,4659.5%Interest expense24,7800.8%28,9050.9%Depreciation and amortization84,3282.6%75,5102.4%Other non-operating gains(5,890)(0.2)%(20,723)(0.7)%Total operating expenses3,106,32196.3%2,946,32493.8%Income before income taxes117,7943.7%196,1906.2%Income tax expense24,6170.8%41,5241.3%Net income93,1772.9%154,6664.9%Net income attributable to noncontrolling interests36,4281.1%40,3331.3%Net income attributable to Ardent Health, Inc.$56,7491.8%$114,3333.6%Net income per share:Basic$0.40$0.82Diluted$0.40$0.81Weighted-average common shares outstanding:Basic141,478,312140,219,452Diluted142,414,946141,111,732 consolidation and care coordination among healthcare providers; (11) inability to successfully complete acquisitions or Full Year 2026 Guidance(Unaudited; dollars in millions, except per share amount)Previous GuidanceRevised GuidanceTotal revenue$6,400 - $6,700$6,400 - $6,700Net income attributable to Ardent Health, Inc.$129 - $183$110 - $163Adjusted EBITDA$485 - $535$485 - $535Rent expense payable to REITs$168 - $168$168 - $168Diluted earnings per share$0.90 - $1.27$0.78 - $1.15Adjusted admissions growth1.5% - 2.5%1.5% - 2.5%Capital expenditures$225 - $265$225 - $265 pursuant to long-term lease agreements. Additionally, we lease 18 medical office buildings from Ventas pursuant to Brentwood, Tenn. (August 4, 2026) - Ardent Health, Inc. (NYSE: ARDT) ("Ardent Health" or the "Company"), a leading Three Months Ended June 30,20262025 Amount%Amount%Total revenue$1,622,245100.0%$1,645,280100.0%Expenses:Salaries and benefits676,18641.7%671,69740.8%Professional fees327,84320.2%297,01218.1%Supplies279,62117.2%270,63916.4%Rents and leases27,9571.7%27,8251.7%Rents and leases, related party38,6862.4%37,8192.3%Other operating expenses174,83810.8%163,69810.0%Interest expense12,5690.8%14,7290.9%Depreciation and amortization41,3422.5%39,3092.4%Other non-operating losses - 0.0%5600.0%Total operating expenses1,579,04297.3%1,523,28892.6%Income before income taxes43,2032.7%121,9927.4%Income tax expense8,5140.6%26,2911.6%Net income34,6892.1%95,7015.8%Net income attributable to noncontrolling interests17,7901.1%22,7511.4%Net income attributable to Ardent Health, Inc.$16,8991.0%$72,9504.4%Net income per share:Basic$0.12$0.52Diluted$0.12$0.52Weighted-average common shares outstanding:Basic141,688,279140,374,892Diluted143,052,519141,517,661 strategic JVs or inability to realize all of the anticipated benefits; (12) liabilities because of professional liability and other For the second quarter of 2026: 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 claims brought against our hospitals, physician practices, outpatient facilities or other business operations; (13) exposure to management views the long-term lease agreements with Ventas and MPT, as more like financing arrangements than ended June 30, 2026. certain risks and uncertainties by the JVs through which we conduct a significant portion of our operations, including
- Total revenue declined 1.4% year-over-year to $1,622 million driven primarily by a 3.9% decrease in net patient true operating leases, with the rent payable to such REITs being similar to interest expense. As a result, our capital anticipated synergies of past acquisitions and the risk that transactions may not receive necessary government clearances; service revenue per adjusted admission. This decrease was largely attributable to recording two quarters of the structure is different than many of our competitors, especially those whose real estate portfolio is predominately (14) failure to obtain drugs and medical supplies at favorable prices or sufficient volumes; (15) operational, legal and New Mexico state directed payment program 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 financial risks associated with outsourcing functions to third parties; (16) our facilities are heavily concentrated in Texas and
Second Quarter 2026 Operating and Financial Summary
those of other healthcare companies without regard to differences in capital structures, leasing arrangements and Oklahoma, which makes us sensitive to regulatory, economic and competitive conditions and changes in those states; (17)
- Net income attributable to Ardent Health was $17 million, or $0.12 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 negative impact of severe weather, climate change, and other factors beyond our control, which could restrict patient attributable to Ardent Health of $73 million, or $0.52 per diluted share, for the second quarter of 2025. 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 access to care or cause one or more facilities to close temporarily or permanently; (18) risks related to the Master Lease We have included certain non-GAAP financial measures in this press release, including Adjusted EBITDA, Adjusted EBITDA •Adjusted EBITDA decreased 32.3% year-over-year to $115 million. of our lease agreements, including the Ventas Master Lease, use Adjusted EBITDAR as a measure of compliance. with Ventas (“Ventas Master Lease”) and its restrictions and limitations on our business; (19) the impact of our significant Total Revenue$1.62 billion Net Income Attributable to Ardent Health $17 million Adjusted EBITDA(1)$115 millionAdjusted EBITDAR(1)$157 millionAdmissionsDecrease of 1.0% Y/YAdjusted Admissions2.5% growth Y/YOperating Cash Flow$197 million, increase of 67% Y/YReaffirming 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: indebtedness and the ability to refinance such indebtedness on acceptable terms; (20) our failure to comply with complex Adjusted EBITDAR does not reflect our cash requirements for leasing commitments. As such, our presentation of laws and regulations applicable to the healthcare industry or to adjust our operations in response to changing laws and Adjusted EBITDAR should not be construed as a performance or liquidity measure. regulations; (21) the impact of governmental claims or governmental investigations, payor audits and litigation brought •Adjusted EBITDA and Adjusted EBITDA Margin. Adjusted EBITDA is defined as net income plus (i) provision for income Operating Performance Summary against our hospitals, physician practices, outpatient facilities or other business operations; (22) actual or perceived failures 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 The Company’s guidance is based on current plans and expectations and is subject to a number of known and unknown to comply with applicable data protection, privacy and security laws, regulations, standards and other requirements; (23) noncontrolling interest earnings, and excludes the effects of other non-operating losses; recoveries from the The following table provides a summary of certain key operating metrics for the second quarter of 2026 compared to the other similarly titled measures of other companies. While we believe this is a useful supplemental valuation measure uncertainties and risks, including those set forth below under the heading "Forward-Looking Statements." The Company the impact of a deterioration of public health conditions associated with a future pandemic, epidemic or outbreak of cybersecurity incident in November 2023 (the "Cybersecurity Incident"), net of incremental information technology and same prior year period. See the footnotes to the Operating Statistics table of this press release for definitions of the metrics for investors and other users of our financial information, you should not consider Adjusted EBITDAR in isolation or as a does not forecast the impact of items such as, but not limited to, losses (gains) on sales of facilities, losses on retirement of infectious disease; (24) actual or perceived failures to comply with applicable data protection, privacy and security laws, litigation costs; certain legal matters and related costs; other expenses, including development, restructuring and below and a full list of key operating metrics. substitute for net income or any other items calculated in accordance with GAAP. Adjusted EBITDAR has inherent debt, legal claim costs (benefits) and impairments of long-lived assets. The Company does not believe that it can forecast regulations, standards and other requirements could adversely affect our business, results of operations and financial enterprise system conversion costs; equity-based compensation expense; and loss (income) from disposed operations. material limitations as a valuation measure, because it adds back certain expenses to net income, resulting in those these items with sufficient accuracy because of the inherent difficulty of forecasting the timing or amount of various items condition; (25) inability to or delay in building, acquiring, selling, renovating or expanding our healthcare facilities; (26) (1)Cybersecurity Incident recoveries represent insurance recovery proceeds associated with the Cybersecurity Incident. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenue. (1)Other expenses, including development, restructuring and enterprise system conversion costs consist of (i) enterprise restructuring costs, including Three Months Ended June 30,(Unaudited)20262025% ChangeAdjusted admissions89,32687,1672.5%Admissions41,10441,535(1.0%)Inpatient surgeries9,1069,840(7.5%)Outpatient surgeries22,64922,860(0.9%)Total surgeries31,75532,700(2.9%)Emergency room visits156,896156,6220.2%Net patient service revenue per adjusted admission$17,864$18,581(3.9%) expenses not being taken into account in the valuation measure. The payment of rent is a necessary element of our that have not yet occurred and are out of the Company’s control or cannot be reasonably predicted. failure to comply with federal and state laws relating to Medicare and Medicaid enrollment, permit, licensing and severance costs related to workforce reductions for restructuring and CEO transition, (ii) penalties and costs incurred for terminating pre-existing contracts (2)Other expenses, including development, restructuring and enterprise system conversion costs consist of (i) enterprise restructuring costs, including valuation. Because Adjusted EBITDAR excludes this and other items, it has material limitations as a measure of our accreditation requirements; (27) the results of our efforts to use technology, including artificial intelligence (“AI”) and at acquired facilities, (iii) third-party professional fees and expenses, salaries and benefits, and other internal expenses incurred in connection with potential severance costs related to workforce reductions for restructuring and CEO transition, (ii) penalties and costs incurred for terminating pre-existing contracts Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP performance measures used by our management and valuation. and completed acquisitions, and (iv) various costs incurred in connection with our enterprise resource planning system conversion. For the three and six machine learning, to drive efficiencies, better outcomes and an enhanced patient experience; (28) our status as a controlled (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 at acquired facilities, (iii) third-party professional fees and expenses, salaries and benefits, and other internal expenses incurred in connection with potential external users of our financial statements, such as investors, analysts, lenders, rating agencies and other interested months ended June 30, 2026 these costs included (i) salaries and benefits of $17.2 million and $21.5 million, respectively, (ii) professional fees of $9.8 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 company; (29) conflicts of interest between our controlling stockholder and other holders of our common stock; and (30) Second Quarter 2026 Results Conference Call and completed acquisitions, and (iv) various costs incurred in connection with our enterprise resource planning system conversion. million and $13.1 million, respectively, and (iii) other expenses of $0.2 million and $0.4 million, respectively. 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 parties, to evaluate companies in our industry. Adjusted EBITDA and Adjusted EBITDA margin are performance other risk factors described in our filings with the Securities and Exchange Commission. (1)Other non-operating losses include losses realized on certain non-recurring events or events that are non-operational in nature. 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 (2)Rent expense payable to REITs for the three and six months ended June 30, 2026 consists of rent expense of $38.7 million and $77.4 million, respectively, measures that are not prepared in accordance with GAAP and are presented in this press release because our Forward-Looking Statements The Company will host a conference call to discuss its second quarter financial results on August 5, 2026, at 10:00 a.m. North Campus Tyler, the financial results of such entity are not consolidated under Ardent Health, Inc. related to the Ventas Master Lease and other lease agreements with Ventas for medical office buildings and rent expense of $2.8 million and $5.7 million, (2)Cybersecurity Incident recoveries, net represent insurance recovery proceeds associated with the Cybersecurity Incident, net of incremental information management considers them important analytical indicators commonly used within the healthcare industry to evaluate Many of the important factors that will determine these results are beyond our ability to control or predict. You are Eastern Time. A webcast of the conference call will be available in the Investor Relations section of the Company’s respectively, related to a lease arrangement with MPT for the lease of Hackensack Meridian Mountainside Medical Center. technology and litigation costs. (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 financial performance and allocate resources. Further, our management believes that Adjusted EBITDA and Adjusted This press release may contain "forward-looking statements," as that term is defined in the U.S. federal securities laws. cautioned not to put undue reliance on any forward-looking statements, which speak only as of the date of this press corporate website at https://ir.ardenthealth.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the whether the beds are actually available for patient use. (3)Other expenses, including development, restructuring and enterprise system conversion costs consist of (i) enterprise restructuring costs, including severance (1) Adjusted EBITDA and Adjusted EBITDAR are financial measures that have not been prepared in a manner that complies with U.S. generally accepted EBITDA margin are useful financial metrics to assess our operating performance from period to period by excluding These forward-looking statements include, but are not limited to, statements other than statements of historical facts, release. Except as otherwise required by law, we do not assume any obligation to publicly update or release any revisions to scheduled start time in order to register, download, and install any necessary audio software. costs related to workforce reductions for restructuring and CEO transition, (ii) penalties and costs incurred for terminating pre-existing contracts at acquired 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 certain material non-cash items and unusual or non-recurring items that we do not expect to continue in the future and including, among others, statements relating to our future financial performance, our business prospects and strategy, facilities, (iii) third-party professional fees and expenses, salaries and benefits, and other internal expenses incurred in connection with potential and these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the 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 completed acquisitions, and (iv) various costs incurred in connection with our enterprise resource planning system conversion. These costs included (i) certain other adjustments we believe are not reflective of our ongoing operations and our performance. anticipated financial position, liquidity and capital needs, the industry in which we operate and other similar matters. 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. occurrence of unanticipated events. All references to "Company," "Ardent Health," "Ardent," "we," "our" and "us" as used To participate in the live teleconference: salaries and benefits of $17.2 million and $3.2 million for the three months ended June 30, 2026 and 2025, respectively, and $21.5 million and $3.2 million for Words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "could," "would," throughout this release refer to Ardent Health, Inc. and its affiliates, unless stated otherwise or indicated by context. Second Quarter 2026 Commentary•"As I transition to the CEO role, I’m looking forward to building on the momentum of key initiatives launched during my COO tenure as well as Ardent's strong foundation in attractive, growing markets," said Dave Caspers, President and Chief Executive Officer of Ardent Health. "I see clear opportunities to further improve performance and unlock the full potential of the platform. Our growth strategy remains unchanged, but sharpening operational execution is my highest priority. We are focused on the levers we can control - staffing, contracting, capital allocation, standardization and accountability - while continuing to deliver high-quality care to the patients and communities we serve."•"Second quarter operating and financial performance was impacted by lower surgeries and admissions, but volumes improved after our intra-quarter update in early June, and we moved quickly to address the earnings pressure," Caspers continued. "Those actions included an improved payor contract in a key market and incremental benefit from our IMPACT program, which we now expect to generate at least $70 million of savings in 2026, compared with $55 million previously. Additionally, we reported strong second quarter operating cash flow of $197 million."•"Our actions give us confidence to reaffirm our 2026 Adjusted EBITDA guidance of $485 million to $535 million, even as we factor in a lower volume outlook," Caspers said. "We remain focused on disciplined execution, consistent performance and creating long-term value for shareholders." (4)Admissions. This metric represents the number of patients admitted for inpatient treatment during the applicable period. the six months ended June 30, 2026 and 2025, respectively, (ii) professional fees of $9.8 million and $0.8 million for the three months ended June 30, 2026 United States Live: 1-888-596-4144 "will," "may," "can," "continue," "potential," "should" and the negative of these terms or other comparable terminology Because not all companies use identical calculations, our presentation of Adjusted EBITDA and Adjusted EBITDA margin and 2025, respectively, and $13.1 million and $2.0 million for the six months ended June 30, 2026 and 2025, respectively, and (iii) other expenses of $0.2 International Live: 1-646-968-2525 (5)Adjusted admissions. This metric is used by management as a general measure of combined inpatient and outpatient volume. Adjusted admissions often identify forward-looking statements. When reviewing this press release, you should keep in mind the substantive risk million and $0.8 million for the three months ended June 30, 2026 and 2025, respectively, and $0.4 million and $1.0 million for the six months ended June 30, may not be comparable to other similarly titled measures of other companies. While we believe these are useful
- Admissions for the second quarter of 2026 decreased 1.0% year-over-year. provides management with a key performance indicator that considers both inpatient and outpatient volumes by applying an inpatient volume measure Access Code: 4437657 2026 and 2025, respectively. The increase in salaries and benefits for the three and six months ended June 30, 2026, compared to the respective prior year and uncertainties that could impact our business. These forward-looking statements are not guarantees of future supplemental performance measures for investors and other users of our financial information, you should not (admissions) to a ratio of gross inpatient and outpatient revenue to gross inpatient revenue. Gross inpatient and outpatient revenue reflect gross inpatient periods, was primarily driven by non-recurring severance costs as a result of workforce reductions in connection with enterprise restructuring activity and performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results •Surgeries for the second quarter of 2026 decreased 2.9% year-over-year. The decrease in total surgeries reflected and outpatient charges prior to estimated contractual adjustments, uninsured discounts, implicit price concessions, and other discounts. The calculation of consider Adjusted EBITDA and Adjusted EBITDA margin in isolation or as a substitute for net income or any other items transition of the CEO during the current period. The increase in professional fees for the three and six months ended June 30, 2026, compared to the To listen to a replay of the teleconference, which will be available through August 19, 2026: contemplated by the forward-looking statements. These risks and uncertainties could cause actual results to differ adjusted admissions is summarized as follows: declines in outpatient and inpatient surgery volume of 0.9% and 7.5%, respectively. respective prior year periods, was primarily attributable to incremental third-party costs incurred in connection with enterprise restructuring activity and calculated in accordance with GAAP. Adjusted EBITDA and Adjusted EBITDA margin have inherent material limitations Adjusted Admissions=Admissionsx(Gross Inpatient Revenue + Gross Outpatient Revenue)Gross Inpatient Revenue materially from those projected in forward-looking statements contained in this press release or implied by past results and enterprise resource planning system conversion during the current period. United States Replay: 1-800-770-2030 as performance measures, because they add back certain expenses to net income, resulting in those expenses not trends. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. International Replay: 1-647-362-9199 being taken into account in the performance measures. We have borrowed money, so interest expense is a necessary Factors, risks, and uncertainties that could cause actual outcomes and results to be materially different from those Access Code: 4437657 (6)Inpatient surgeries. This metric represents the number of surgeries performed on patients who have been admitted to our hospitals. Pain management, c- element of our costs. Because we have material capital and intangible assets, depreciation and amortization expense Balance Sheet, Cash Flow & Liquidity Update contemplated include, among others: (1) general economic and business conditions, both nationally and in the regions in sections, and certain diagnostic procedures are excluded from inpatient surgeries. are necessary elements of our costs. Likewise, the payment of taxes is a necessary element of our operations. Because which we operate, including the impact of challenging macroeconomic conditions and inflationary pressures, current (7)Outpatient surgeries. This metric represents the number of surgeries performed on patients who have not been admitted to our hospitals. Pain Adjusted EBITDA and Adjusted EBITDA margin exclude these and other items, they have material limitations as geopolitical instability, and impacts from the imposition of, or changes in, tariffs, as well as the potential impact on us of As of June 30, 2026, the Company had total cash and cash equivalents of $724 million and total debt of $1.1 billion. The management, c-sections, and certain diagnostic procedures are excluded from outpatient surgeries. About Ardent Health measures of our performance. uncertain political, financial, credit and capital conditions; (2) possible reductions or other changes in Medicare, Medicaid Company’s net leverage ratio was 0.8x and its lease-adjusted net leverage ratio was 2.6x as of June 30, 2026. At the end of (8)Emergency room visits. This metric represents the total number of patients provided with emergency room treatment during the applicable period. and other state programs, including Medicaid supplemental payment programs, Medicaid waiver programs or state the second quarter, the Company’s available liquidity was $992 million. Ardent Health (NYSE: ARDT) is a leading provider of healthcare in growing mid-sized urban communities across the U.S. The •Adjusted EBITDAR. Adjusted EBITDAR is defined as Adjusted EBITDA further adjusted to add back rent expense payable directed payments, that could have an adverse effect on our revenues and business; (3) reduction in the reimbursement (9)Patient days. This metric represents the total number of days of care provided to patients admitted to our hospitals during the applicable period. Company delivers care through its subsidiaries, which include 30 acute care hospitals and more than 280 sites of care with to real estate investment trusts ("REITs"), which consists of rent expense pursuant to the master lease agreement (the rates paid by commercial payors, increased reimbursement denials or payment delays by commercial payors, our inability During the second quarter of 2026, net cash provided by operating activities was $197 million, or an increase of 67% (10)Total encounters. This metric represents the total number of events where healthcare services are rendered resulting in a billable event during the over 1,800 employed and affiliated providers across six states. Anchored by a shared operating model and a commitment to "Ventas Master Lease") with Ventas, Inc. ("Ventas"), lease agreements with Ventas for 18 medical office buildings and a to retain and negotiate favorable contracts with private third party payors, or an increasing volume of uninsured or applicable period. This includes both hospital and ambulatory patient interactions. compared to $117 million provided by operating activities in the same prior year period. investing in innovative services and technologies that improve quality, access and experience, Ardent is focused on lease arrangement with Medical Properties Trust, Inc. ("MPT") for the Hackensack Meridian Mountainside Medical underinsured patients; (4) effects of changes in healthcare policy or legislation, including the One Big Beautiful Bill Act (the (11)Average length of stay. This metric represents the average number of days admitted patients stay in our hospitals. delivering strong clinical outcomes and improving the health of the patients and communities it serves. Center. "OBBBA") and any other reforms that have or may be undertaken by the current presidential administration, and legal and During the second quarter of 2026, the Company repurchased 1.4 million shares of its common stock for $13 million. The regulatory restrictions on our hospitals that have physician owners; (5) the ability to achieve operating and financial targets, (12)Net patient service revenue per adjusted admission. This metric represents net patient service revenue divided by adjusted admissions for the applicable Company had $34 million remaining under its repurchase authorization as of June 30, 2026. period. Net patient service revenue reflects gross inpatient and outpatient charges less estimated contractual adjustments, uninsured discounts, implicit develop and execute mitigation plans to offset to the extent possible impacts from the OBBBA, the expiration of temporary price concessions, and other discounts. (1)As of June 30, 2026 and December 31, 2025, the unaudited condensed consolidated balance sheets included total liabilities of consolidated variable interest entities of enhanced subsidies for individuals eligible to purchase insurance coverage through health insurance marketplaces and $331.2 million and $335.1 million, respectively. Refer to Note 2 of the Company's unaudited condensed consolidated financial statements included in its Quarterly imposition of tariffs, attain expected levels of patient volumes and revenues, and control the costs of providing services; (6) Report on Form 10-Q for the six months ended June 30, 2026 for further discussion. security threats, catastrophic events and other disruptions affecting our, our service 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 competitive nature of the healthcare Lease-adjusted net leverage ratio is defined as the Company's net debt, plus 8x trailing twelve-month real estate investment trust ("REIT") rent expense, divided by trailing twelve-month Adjusted EBITDAR as of June 30, 2026. industry and continued industry trends towards clinical transparency and value-based purchasing may impact our 1 2 3 4 5 6 7 8 9 10 11 12 13 14