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 Third 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 For the third quarter of 2026: The Company is increasing its full-year 2026 adjusted EBITDA financial guidance to $500 - 535 million from $485 - 535 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 million. The Company is maintaining its full-year 2026 revenue outlook of $6,400 - 6,700 million. All guidance is current as 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 •Total revenue grew 3.1% year-over-year to $1,625 million. The growth in total revenue consisted of a 2.9% of the time provided and is subject to change. expense payable to REITs. We operate 30 acute care hospitals, 12 of which we lease from two REITs, Ventas and MPT, Nine Months Ended September 30, 20262025Cash flows from operating activities: Net income$156,564$155,873Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization125,387114,666Other non-operating (gains) losses(1,886)1,275Loss on extinguishment and modification of debt - 515Amortization of deferred financing costs and debt discounts2,4323,568Deferred income taxes10,20214,884Equity-based compensation24,19430,183Income from non-consolidated affiliates(12,251)(1,409)Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:Accounts receivable(9,129)16,594Inventories1,961(6,308)Prepaid expenses and other current assets54,879(47,361)Accounts payable and other accrued expenses and liabilities(79,925)(15,716)Accrued salaries and benefits(13,988)(19,689)Net cash provided by operating activities258,440247,075Cash flows from investing activities:Purchases of property and equipment(115,576)(127,909)Other8,357(92)Net cash used in investing activities(107,219)(128,001)Cash flows from financing activities:Proceeds from insurance financing arrangements23,49315,607Payments of principal on insurance financing arrangements(14,434)(10,751)Payments of principal on long-term debt(10,778)(4,506)Debt issuance costs - (2,573)Distributions to noncontrolling interests(68,371)(62,366)Repurchase of common stock (24,011) - Other(483)(1,829)Net cash used in financing activities(94,584)(66,418)Net increase in cash and cash equivalents56,63752,656Cash and cash equivalents at beginning of period709,601556,785Cash and cash equivalents at end of period$766,238$609,441Supplemental Cash Flow Information:Non-cash purchases of property and equipment$693$13,509 September 30, 2026(1)December 31, 2025 (1)AssetsCurrent assets:Cash and cash equivalents$766,238$709,601Accounts receivable661,845686,102Inventories110,100118,593Prepaid expenses119,726112,646Other current assets378,896431,882Assets held for sale133,649 - Total current assets2,170,4542,058,824Property and equipment, net899,769935,769Operating lease right of use assets318,076292,651Operating lease right of use assets, related party895,779915,599Goodwill861,856879,451Other intangible assets87,02089,335Deferred income taxes3,2016,888Other assets116,864111,691Total assets$5,353,019$5,290,208 Liabilities and EquityCurrent liabilities:Current installments of long-term debt$28,763$23,444Accounts payable399,035457,936Accrued salaries and benefits274,135296,260Other accrued expenses and liabilities260,163268,904Liabilities held for sale55,262 - Total current liabilities1,017,3581,046,544Long-term debt, less current installments1,069,6881,075,782Long-term operating lease liability281,402260,600Long-term operating lease liability, related party885,291904,632Self-insured liabilities232,538241,050Other long-term liabilities85,05976,636Total liabilities3,571,3363,605,244Redeemable noncontrolling interests(7,326)(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; 140,931,614 and 142,864,171 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively1,4091,429Additional paid-in capital 786,447788,472Accumulated other comprehensive income (loss)5,456(3,610)Retained earnings602,872501,607Equity attributable to Ardent Health, Inc.1,396,1841,287,898Noncontrolling interests392,825398,316Total equity1,789,0091,686,214Total liabilities and equity$5,353,019$5,290,208 Three Months Ended September 30,Nine Months Ended September 30, 2026% Change20252026% Change2025Total revenue (in thousands)$1,624,8563.1%$1,576,746$4,848,9712.7%$4,719,260Hospitals 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%0.0%49%50%0.0%50%Admissions (4)41,8990.1%41,862123,935(0.7)%124,786Adjusted admissions (5)91,9332.9%89,328267,5032.5%261,031Inpatient surgeries (6)9,250(5.0)%9,73227,612(4.2)%28,822Outpatient surgeries (7)22,684(0.6)%22,81367,4190.1%67,385Total surgeries31,934(1.9)%32,54595,031(1.2)%96,207Emergency room visits (8)163,9091.7%161,198476,973(0.4)%479,069Patient days (9)193,7730.1%193,558580,125(0.8)%584,510Total encounters (10)1,627,8393.2%1,577,2814,773,1605.6%4,519,815Average length of stay (11)4.620.0%4.624.680.0%4.68Net patient service revenue per adjusted admission (12)$17,3700.7%$17,252$17,8570.6%$17,745 Three Months Ended September 30,Nine Months Ended September 30,2026202520262025Net income$63,387$1,207$156,564$155,873Adjusted EBITDA Addbacks:Income tax expense (benefit)17,638(3,410)42,25538,114Interest expense15,31713,91440,09742,819Depreciation and amortization41,05939,156125,387114,666Noncontrolling interest earnings(18,871)(24,685)(55,299)(65,018)Loss on extinguishment and modification of debt - 7,344 - 7,344Other non-operating losses (1) - 353 - 1,130Cybersecurity Incident recoveries, net (2)(1,000)(2,950)(1,000)(22,655)Certain legal matters and related costs - - 2,464 - Enterprise restructuring costs (3)5,3602,84632,1606,043Exit and acquisition-related costs (4)1,6141,1224,0713,486Enterprise resource planning system conversion costs (5)5,91369211,6511,319Equity-based compensation7,3139,67424,19430,183Loss (income) from disposed operations17(11)(5,860)22Adjusted EBITDA$137,747$45,252$376,684$313,326Total revenue$1,624,856$1,576,746$4,848,971$4,719,260Adjusted EBITDA margin8.5%2.9%7.8%6.6% Three Months Ended September 30, 2026Nine Months Ended September 30, 2026Net income$63,387$156,564Adjusted EBITDAR Addbacks:Income tax expense17,63842,255Interest expense15,31740,097Depreciation and amortization41,059125,387Noncontrolling interest earnings(18,871)(55,299)Cybersecurity Incident recoveries, net (1)(1,000)(1,000)Certain legal matters and related costs - 2,464Enterprise restructuring costs (2)5,36032,160Exit and acquisition-related costs (3)1,6144,071Enterprise resource planning system conversion costs (4)5,91311,651Equity-based compensation7,31324,194Loss (income) from disposed operations17(5,860)Rent expense payable to REITs (5)41,875125,010Adjusted EBITDAR$179,622$501,694 Guidance for the Full Year Ending December 31, 2026Previous GuidanceRevised GuidanceLowHighLowHighNet income$202$260$209$254Adjusted EBITDA Addbacks:Income tax expense53695669Interest expense56535654Depreciation and amortization175170171167Noncontrolling interest earnings(92)(97)(77)(87)Cybersecurity Incident recoveries, net (1)(7)(7)(7)(7)Certain legal matters and related costs3333Enterprise restructuring costs (2)37323736Exit and acquisition-related costs (3)5465Enterprise resource planning system conversion costs (4)17161716Equity-based compensation42383531Income from disposed operations(6)(6)(6)(6)Adjusted EBITDA$485$535$500$535 Nine Months Ended September 30,20262025 Amount%Amount%Total revenue$4,848,971100.0%$4,719,260100.0%Expenses:Salaries and benefits1,985,55740.9%2,006,31142.5%Professional fees972,71820.1%882,95218.7%Supplies831,30117.1%805,37517.1%Rents and leases82,8231.7%81,9721.7%Rents and leases, related party116,3562.4%113,9752.4%Other operating expenses502,80310.4%493,17910.5%Interest expense40,0970.8%42,8190.9%Depreciation and amortization125,3872.6%114,6662.4%Loss on extinguishment and modification of debt - 0.0%7,3440.2%Other non-operating gains(6,890)(0.1)%(23,320)(0.5)%Total operating expenses4,650,15295.9%4,525,27395.9%Income before income taxes198,8194.1%193,9874.1%Income tax expense42,2550.9%38,1140.8%Net income156,5643.2%155,8733.3%Net income attributable to noncontrolling interests55,2991.1%65,0181.4%Net income attributable to Ardent Health, Inc.$101,2652.1%$90,8551.9%Net income per share:Basic$0.72$0.65Diluted$0.71$0.64Weighted-average common shares outstanding:Basic141,180,120140,569,409Diluted142,174,942141,242,065 consolidation and care coordination among healthcare providers; (11) inability to successfully complete acquisitions, increase in adjusted admissions. pursuant to long-term lease agreements. Additionally, we lease 18 medical office buildings from Ventas pursuant to Brentwood, Tenn. (November 4, 2026) - Ardent Health, Inc. (NYSE: ARDT) ("Ardent Health" or the "Company"), a leading Three Months Ended September 30,20262025 Amount%Amount%Total revenue$1,624,856100.0%$1,576,746100.0%Expenses:Salaries and benefits647,94039.9%676,96242.9%Professional fees327,80520.2%305,08319.3%Supplies283,12717.4%275,88117.5%Rents and leases27,7851.7%26,3861.7%Rents and leases, related party38,9842.4%38,1062.4%Other operating expenses162,81410.1%198,71412.6%Interest expense15,3170.9%13,9140.9%Depreciation and amortization41,0592.5%39,1562.5%Loss on extinguishment and modification of debt - 0.0%7,3440.5%Other non-operating gains(1,000)(0.1)%(2,597)(0.2)%Total operating expenses1,543,83195.0%1,578,949100.1%Income (loss) before income taxes81,0255.0%(2,203)(0.1)%Income tax expense (benefit)17,6381.1%(3,410)(0.2)%Net income63,3873.9%1,2070.1%Net income attributable to noncontrolling interests18,8711.2%24,6851.6%Net income (loss) attributable to Ardent Health, Inc.$44,5162.7%$(23,478)(1.5)%Net income (loss) per share:Basic$0.32$(0.17)Diluted$0.31$(0.17)Weighted-average common shares outstanding:Basic140,593,457141,226,862Diluted141,704,656141,226,862 divestitures or strategic JVs or inability to realize all of the anticipated benefits; (12) liabilities because of professional Full Year 2026 Guidance(Unaudited; dollars in millions, except per share amounts)Previous GuidanceRevised GuidanceTotal revenue$6,400 - $6,700$6,400 - $6,700Net income attributable to Ardent Health, Inc.$110 - $163$132 - $167Adjusted EBITDA$485 - $535$500 - $535Rent expense payable to REITs$168 - $168$168 - $168Diluted earnings per share$0.78 - $1.15$0.93 - $1.18Adjusted admissions growth1.5% - 2.5%1.5% - 2.5%Capital expenditures$225 - $265$210 - $250 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 •Net income attributable to Ardent Health was $45 million, or $0.31 per diluted share, compared to net loss liability and other claims brought against our hospitals, physician practices, outpatient facilities or other business management views the long-term lease agreements with Ventas and MPT, as more like financing arrangements than ended September 30, 2026. operations; (13) exposure to certain risks and uncertainties by the JVs through which we conduct a significant portion of our attributable to Ardent Health of $23 million, or $0.17 per diluted share, for the third quarter of 2025. true operating leases, with the rent payable to such REITs being similar to interest expense. As a result, our capital operations, including anticipated synergies of past acquisitions and the risk that transactions may not receive necessary
- Adjusted EBITDA was $138 million, which includes benefits from IMPACT program initiatives, improving volume structure is different than many of our competitors, especially those whose real estate portfolio is predominately government clearances; (14) failure to obtain drugs and medical supplies at favorable prices or sufficient volumes; (15) trends, and operational execution. owned and not leased. Excluding the rent payable to such REITs allows investors to compare our enterprise value to operational, legal and financial risks associated with outsourcing functions to third parties; (16) our facilities are heavily
Third Quarter 2026 Operating and Financial Summary
those of other healthcare companies without regard to differences in capital structures, leasing arrangements and concentrated in Texas and Oklahoma, which makes us sensitive to regulatory, economic and competitive conditions and 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 changes in those states; (17) negative impact of severe weather, climate change, and other factors beyond our control, release for definitions of the metrics below and a full list of key operating metrics. Operating Performance Summary one measure in determining the value of prospective acquisitions or divestitures. Finally, financial covenants in certain which could restrict patient access to care or cause one or more facilities to close temporarily or permanently; (18) risks We have included certain non-GAAP financial measures in this press release, including Adjusted EBITDA, Adjusted EBITDA of our lease agreements, including the Ventas Master Lease, use Adjusted EBITDAR as a measure of compliance. related to the Master Lease with Ventas ("Ventas Master Lease") and its restrictions and limitations on our business; (19) Total Revenue$1.62 billion Net Income Attributable to Ardent Health $45 million Adjusted EBITDA(1)$138 millionAdjusted EBITDAR(1)$180 millionAdmissions0.1% growth Y/YAdjusted Admissions2.9% growth Y/YOperating Cash Flow$122 millionIncreasing 2026 Adjusted EBITDA GuidanceReaffirming Total Revenue: $6,400 - $6,700 millionRaising Adjusted EBITDA midpoint(1): $500 - $535 million margin, and Adjusted EBITDAR. We define these terms as follows: the impact of our significant indebtedness and the ability to refinance such indebtedness on acceptable terms; (20) our The following table provides a summary of certain key operating metrics for the third quarter of 2026 compared to the Adjusted EBITDAR does not reflect our cash requirements for leasing commitments. As such, our presentation of failure to comply with complex laws and regulations applicable to the healthcare industry or to adjust our operations in same prior year period. See the footnotes to the Operating Statistics table of this press release for definitions of the metrics Adjusted EBITDAR should not be construed as a performance or liquidity measure. response to changing laws and regulations; (21) the impact of governmental claims or governmental investigations, payor •Adjusted EBITDA and Adjusted EBITDA Margin. Adjusted EBITDA is defined as net income plus (i) provision for income below and a more extensive list of key operating metrics. audits and litigation brought against our hospitals, physician practices, outpatient facilities or other business operations; 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 (22) actual or perceived failures to comply with applicable data protection, privacy and security laws, regulations, standards noncontrolling interest earnings, and excludes the effects of loss on extinguishment and modification of debt; other Three Months Ended September 30,(Unaudited)20262025% ChangeAdjusted admissions91,93389,3282.9%Admissions41,89941,8620.1%Inpatient surgeries9,2509,732(5.0%)Outpatient surgeries22,68422,813(0.6%)Total surgeries31,93432,545(1.9%)Emergency room visits163,909161,1981.7%Net patient service revenue per adjusted admission$17,370$17,2520.7% other similarly titled measures of other companies. While we believe this is a useful supplemental valuation measure The Company’s guidance is based on current plans and expectations and is subject to a number of known and unknown and other requirements; (23) the impact of a deterioration of public health conditions associated with a future pandemic, non-operating losses; recoveries from the cybersecurity incident in November 2023 (the "Cybersecurity Incident"), net for investors and other users of our financial information, you should not consider Adjusted EBITDAR in isolation or as a uncertainties and risks, including those set forth below under the heading "Forward-Looking Statements." The Company epidemic or outbreak of infectious disease; (24) inability to or delay in building, acquiring, selling, renovating or expanding of incremental information technology and litigation costs; certain legal matters and related costs; enterprise substitute for net income or any other items calculated in accordance with GAAP. Adjusted EBITDAR has inherent does not forecast the impact of items such as, but not limited to, losses (gains) on sales of facilities, losses on retirement of our healthcare facilities; (25) failure to comply with federal and state laws relating to Medicare and Medicaid enrollment, restructuring costs; exit and acquisition-related costs; enterprise resource planning system conversion costs; equity- material limitations as a valuation measure, because it adds back certain expenses to net income, resulting in those debt, legal claim costs (benefits) and impairments of long-lived assets. The Company does not believe that it can forecast permit, licensing and accreditation requirements; (26) the results of our efforts to use technology, including artificial based compensation expense; and loss (income) from disposed operations. Adjusted EBITDA margin is defined as expenses not being taken into account in the valuation measure. The payment of rent is a necessary element of our these items with sufficient accuracy because of the inherent difficulty of forecasting the timing or amount of various items intelligence ("AI") and machine learning, to drive efficiencies, better outcomes and an enhanced patient experience; (27) Adjusted EBITDA divided by total revenue. valuation. Because Adjusted EBITDAR excludes this and other items, it has material limitations as a measure of our that have not yet occurred and are out of the Company’s control or cannot be reasonably predicted. our status as a controlled company; (28) conflicts of interest between our controlling stockholder and other holders of our valuation. common stock; and (29) other risk factors described in our filings with the Securities and Exchange Commission. (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 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP performance measures used by our management and (1)Cybersecurity Incident recoveries, net primarily represent gains on insurance recovery proceeds associated with the Cybersecurity Incident, net of 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 incremental information technology and litigation costs. During the three and nine months ended September 30, 2026, the Company recognized a gain of 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 external users of our financial statements, such as investors, analysts, lenders, rating agencies and other interested (1)Cybersecurity Incident recoveries, net primarily represent gains on insurance recovery proceeds associated with the Cybersecurity Incident, net of Third Quarter 2026 Results Conference Call Many of the important factors that will determine these results are beyond our ability to control or predict. You are $1.0 million associated with the release of an accrual for expected litigation-related related costs. Texas Health Science Center at Tyler, an affiliate of The University of Texas System. Since we only manage the clinical operations of UT Health North incremental information technology and litigation costs. parties, to evaluate companies in our industry. Adjusted EBITDA and Adjusted EBITDA margin are performance Forward-Looking Statements cautioned not to put undue reliance on any forward-looking statements, which speak only as of the date of this press Campus Tyler, the financial results of such entity are not consolidated under Ardent Health, Inc. (2)Enterprise restructuring costs represent expenses related to employee termination benefits of $0.2 million and $21.5 million for the three and nine months measures that are not prepared in accordance with GAAP and are presented in this press release because our (2)Enterprise restructuring costs represent expenses related to employee termination benefits for position eliminations and executive leadership departures as The Company will host a conference call to discuss its third quarter financial results on November 5, 2026, at 10:00 a.m. release. Except as otherwise required by law, we do not assume any obligation to publicly update or release any revisions to ended September 30, 2026, respectively, for position eliminations and executive leadership departures as part of strategic organizational changes, and third- (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 part of strategic organizational changes and third-party professional fees and expenses for advisory services related to enterprise restructuring activities. management considers them important analytical indicators commonly used within the healthcare industry to evaluate party professional fees and expenses for advisory services related to enterprise restructuring activities of $5.2 million and $10.7 million for the three and nine This press release may contain "forward-looking statements," as that term is defined in the U.S. federal securities laws. Eastern Time. A webcast of the conference call will be available in the Investor Relations section of the Company’s these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the whether the beds are actually available for patient use. These costs reflect severance and related employee benefit expenses associated with a discrete enterprise restructuring program designed to streamline and (1)Other non-operating losses include losses realized on certain non-recurring events or events that are non-operational in nature. (1) Adjusted EBITDA and Adjusted EBITDAR are financial measures that have not been prepared in a manner that complies with U.S. generally accepted months ended September 30, 2026, respectively. Employee termination benefit costs reflect severance and related employee benefit expenses associated financial performance and allocate resources. Further, our management believes that Adjusted EBITDA and Adjusted These forward-looking statements include, but are not limited to, statements other than statements of historical facts, improve the Company’s organizational structure. corporate website at https://ir.ardenthealth.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the occurrence of unanticipated events. All references to "Company," "Ardent Health," "Ardent," "we," "our" and "us" as used 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 with a discrete enterprise restructuring program designed to streamline and improve the Company's organizational structure. (2)Cybersecurity Incident recoveries, net primarily represent gains on insurance recovery proceeds associated with the Cybersecurity Incident, net of EBITDA margin are useful financial metrics to assess our operating performance from period to period by excluding including, among others, statements relating to our future financial performance, our business prospects and strategy, comparable GAAP financial measures contained later in this press release. •Adjusted admissions for the third quarter of 2026 increased 2.9% year-over-year, which is an acceleration from a 2.5% scheduled start time in order to register, download, and install any necessary audio software. throughout this release refer to Ardent Health, Inc. and its affiliates, unless stated otherwise or indicated by context. 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 (3)Exit and acquisition-related costs represent penalties and costs incurred for terminating pre-existing contracts at acquired facilities, third-party professional incremental information technology and litigation costs. During the three and nine months ended September 30, 2026, the Company recognized a gain of (3)Exit and acquisition-related costs represent penalties and costs incurred for terminating pre-existing contracts at acquired facilities of $0.8 million and $0.9 certain material non-cash items and unusual or non-recurring items that we do not expect to continue in the future and 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. fees and expenses incurred in connection with potential and completed acquisitions, and system integration costs for completed acquisitions. $1.0 million associated with the release of an accrual for expected litigation-related related costs. year-over-year increase in the second quarter of 2026. million for the three and nine months ended September 30, 2026, respectively, third-party professional fees and expenses incurred in connection with Words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "could," "would," certain other adjustments we believe are not reflective of our ongoing operations and our performance. Third Quarter Results Reflect Improving Performance; Raising 2026 Adjusted EBITDA Guidance•"We delivered strong third quarter results, highlighted by adjusted EBITDA of $138 million, a 4% reduction in SWB expense, and 2.9% adjusted admissions growth," said Dave Caspers, President and Chief Executive Officer of Ardent Health. "Our performance reflects disciplined execution, with volumes improving sequentially and continued progress on our operating priorities. IMPACT initiatives continued to gain traction and remain on track to achieve at least $70 million of savings this year, contributing to greater efficiency and stronger financial performance."•"We enter the fourth quarter with confidence in the trajectory of our business and ability to execute on the opportunities ahead," Caspers continued. "Based on our year-to-date performance and continued operational momentum, we are raising our 2026 Adjusted EBITDA guidance midpoint 1.5%." •“Consistent with our focus on disciplined portfolio management, we entered into a definitive agreement during the third quarter to transition full ownership of our Kansas hospital to our joint venture partner,” Caspers noted. “We expect this transaction to enhance margins while allowing us to redeploy capital toward growth in core markets where we can build scale and integrated systems of care.” •“We remain focused on strategic capital deployment that prioritizes organic investments and M&A," said Caspers. “The company’s $766 million of cash and 2.5x lease-adjusted net leverage provide flexibility to execute against these priorities while maintaining a balanced approach to capital allocation that creates long-term shareholder value.” To participate in the live teleconference: (4)Enterprise resource planning system conversion costs represent various costs incurred related to a single system conversion project to implement a new potential and completed acquisitions of $0.6 million and $2.6 million for the three and nine months ended September 30, 2026, respectively, and system (4)Admissions. This metric represents the number of patients admitted for inpatient treatment during the applicable period. (3)Enterprise restructuring costs represent expenses related to employee termination benefits of $0.2 million and $2.8 million for the three months ended
- Admissions for the third quarter of 2026 increased 0.1% year-over-year, which is an improvement from a 1.0% year- "will," "may," "can," "continue," "potential," "should" and the negative of these terms or other comparable terminology enterprise resource planning system. These costs include expected third-party professional fees and expenses incurred in connection with the conversion integration costs for completed acquisitions of $0.2 million and $0.6 million for the three and nine months ended September 30, 2026, respectively. September 30, 2026 and 2025, respectively, and $21.5 million and $6.0 million for the nine months ended September 30, 2026 and 2025, respectively, for United States Live: 1-833-461-5787 (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 over-year decline in the second quarter of 2026. project and contract labor expense directly related to the conversion project. These costs do not include post-implementation licensing, maintenance and position eliminations and executive leadership departures as part of strategic organizational changes, and third-party professional fees and expenses for Because not all companies use identical calculations, our presentation of Adjusted EBITDA and Adjusted EBITDA margin (4)Enterprise resource planning system conversion costs represent various costs incurred related to a single system conversion project to implement a new provides management with a key performance indicator that considers both inpatient and outpatient volumes by applying an inpatient volume measure International Live: 1-585-542-9983 operating costs associated with the new enterprise resource planning system. advisory services related to enterprise restructuring activities of $5.2 million and $10.7 million for the three and nine months ended September 30, 2026, and uncertainties that could impact our business. These forward-looking statements are not guarantees of future may not be comparable to other similarly titled measures of other companies. While we believe these are useful enterprise resource planning system. These costs include expected third-party professional fees and expenses incurred in connection with the conversion (admissions) to a ratio of gross inpatient and outpatient revenue to gross inpatient revenue. Gross inpatient and outpatient revenue reflect gross inpatient •Surgeries for the third quarter of 2026 decreased 1.9% year-over-year, which is an improvement from a 2.9% year- respectively. Employee termination benefit costs reflect severance and related employee benefit expenses associated with a discrete enterprise restructuring Access Code: 142718519 performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results project of $5.2 million and $10.7 million for the three and nine months ended September 30, 2026, respectively, and contract labor expense directly related and outpatient charges prior to estimated contractual adjustments, uninsured discounts, implicit price concessions, and other discounts. The calculation of supplemental performance measures for investors and other users of our financial information, you should not program designed to streamline and improve the Company's organizational structure. over-year decline in the second quarter of 2026. The decrease in total surgeries reflected declines in outpatient and to the conversion project of $0.8 million and $1.0 million for the three and nine months ended September 30, 2026, respectively. These costs do not include contemplated by the forward-looking statements. These risks and uncertainties could cause actual results to differ adjusted admissions is summarized as follows: consider Adjusted EBITDA and Adjusted EBITDA margin in isolation or as a substitute for net income or any other items post-implementation licensing, maintenance and operating costs associated with the new enterprise resource planning system. inpatient surgery volume of 0.6% and 5.0%, respectively. (4)Exit and acquisition-related costs represent penalties and costs incurred for terminating pre-existing contracts at acquired facilities of $0.8 million and $0.2 Adjusted Admissions=Admissionsx(Gross Inpatient Revenue + Gross Outpatient Revenue)Gross Inpatient Revenue To listen to a replay of the teleconference, which will be available through November 19, 2026: materially from those projected in forward-looking statements contained in this press release or implied by past results and calculated in accordance with GAAP. Adjusted EBITDA and Adjusted EBITDA margin have inherent material limitations million for the three months ended September 30, 2026 and 2025, respectively, and $0.9 million and $0.5 million for the nine months ended September 30, (5)Rent expense payable to REITs for the three and nine months ended September 30, 2026 consists of rent expense of $39.0 million and $116.4 million, trends. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. United States Replay: 1-833-309-1852
- Emergency room visits for the third quarter of 2026 increased 1.7% year-over-year, which is an acceleration from a 2026 and 2025, respectively, third-party professional fees and expenses incurred in connection with potential and completed acquisitions of $0.6 million for as performance measures, because they add back certain expenses to net income, resulting in those expenses not 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 Factors, risks, and uncertainties that could cause actual outcomes and results to be materially different from those the three months ended September 30, 2026, and $2.6 million and $0.8 million for the nine months ended September 30, 2026 and 2025, respectively, and International Replay: 1-929-828-5978 0.2% year-over-year increase in the second quarter of 2026. (6)Inpatient surgeries. This metric represents the number of surgeries performed on patients who have been admitted to our hospitals. Pain management, c- $8.6 million, respectively, related to a lease arrangement with MPT for the lease of Hackensack Meridian Mountainside Medical Center. being taken into account in the performance measures. We have borrowed money, so interest expense is a necessary system integration costs for completed acquisitions of $0.2 million and $0.9 million for the three months ended September 30, 2026 and 2025, respectively, contemplated include, among others: (1) general economic and business conditions, both nationally and in the regions in Access Code: 142718519 sections, and certain diagnostic procedures are excluded from inpatient surgeries. element of our costs. Because we have material capital and intangible assets, depreciation and amortization expense and $0.6 million and $2.2 million for the nine months ended September 30, 2026 and 2025, respectively. 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 are necessary elements of our costs. Likewise, the payment of taxes is a necessary element of our operations. Because geopolitical instability, and impacts from the imposition of, or changes in, tariffs, as well as the potential impact on us of (5)Enterprise resource planning system conversion costs represent various costs incurred related to a single system conversion project to implement a new management, c-sections, and certain diagnostic procedures are excluded from outpatient surgeries. Adjusted EBITDA and Adjusted EBITDA margin exclude these and other items, they have material limitations as enterprise resource planning system. These costs include expected third-party professional fees and expenses incurred in connection with the conversion uncertain political, financial, credit and capital conditions; (2) possible reductions or other changes in Medicare, Medicaid Balance Sheet, Cash Flow & Liquidity Update; $25 Million Increase To Share Repurchase Program About Ardent Health project of $5.2 million and $0.6 million for the three months ended September 30, 2026 and 2025, respectively, and $10.7 million and $1.2 million for the (8)Emergency room visits. This metric represents the total number of patients provided with emergency room treatment during the applicable period. measures of our performance. and other state programs, including Medicaid supplemental payment programs, Medicaid waiver programs or state nine months ended September 30, 2026 and 2025, respectively, and contract labor expense directly related to the conversion project of $0.8 million and $0.1 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. million for the three months ended September 30, 2026 and 2025, respectively, and $1.0 million and $0.1 million for the nine months ended September 30, As of September 30, 2026, the Company had total cash and cash equivalents of $766 million and total debt of $1.1 billion. Ardent Health (NYSE: ARDT) is a leading provider of healthcare in growing mid-sized urban communities across the U.S. The rates paid by commercial payors, increased reimbursement denials or payment delays by commercial payors, our inability •Adjusted EBITDAR. Adjusted EBITDAR is defined as Adjusted EBITDA further adjusted to add back rent expense payable 2026 and 2025, respectively. These costs do not include post-implementation licensing, maintenance and operating costs associated with the new enterprise The Company’s net leverage ratio was 0.8x and its lease-adjusted net leverage ratio was 2.5x as of September 30, 2026. At Company delivers care through its subsidiaries, which include 30 acute care hospitals and more than 280 sites of care with (10)Total encounters. This metric represents the total number of events where healthcare services are rendered resulting in a billable event during the resource planning system. to retain and negotiate favorable contracts with private third party payors, or an increasing volume of uninsured or to real estate investment trusts ("REITs"), which consists of rent expense pursuant to the master lease agreement (the applicable period. This includes both hospital and ambulatory patient interactions. the end of the third quarter, the Company’s available liquidity was $1 billion. over 2,000 employed and affiliated providers across six states. Anchored by a shared operating model and a commitment to underinsured patients; (4) effects of changes in healthcare policy or legislation, including the One Big Beautiful Bill Act (the "Ventas Master Lease") with Ventas, Inc. ("Ventas"), lease agreements with Ventas for 18 medical office buildings and a investing in innovative services and technologies that improve quality, access and experience, Ardent is focused on (11)Average length of stay. This metric represents the average number of days admitted patients stay in our hospitals. "OBBBA") and any other reforms that have or may be undertaken by the current presidential administration, and legal and lease arrangement with Medical Properties Trust, Inc. ("MPT") for the Hackensack Meridian Mountainside Medical delivering strong clinical outcomes and improving the health of the patients and communities it serves. During the third quarter of 2026, net cash provided by operating activities was $122 million. Year-to-date net cash provided 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 Center. by operating activities was $258 million, or an increase of 5% compared to $247 million in the same prior year period. 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. enhanced subsidies for individuals eligible to purchase insurance coverage through health insurance marketplaces and During the third quarter of 2026, the Company repurchased 1.0 million shares of its common stock for $11 million. Ardent’s imposition of tariffs, attain expected levels of patient volumes and revenues, and control the costs of providing services; (6) Board of Directors has authorized a $25 million increase to its share repurchase program. Inclusive of this update, the security threats, catastrophic events and other disruptions affecting our, our service providers’ or our joint venture ("JV") (1)As of September 30, 2026 and December 31, 2025, the unaudited condensed consolidated balance sheets included total liabilities of consolidated variable interest Company had approximately $48 million remaining under its repurchase authorization as of September 30, 2026. partners’ information technology and related systems, which have adversely affected, and could in the future adversely entities of $301.7 million and $335.1 million, respectively. Refer to Note 2 of the Company's unaudited condensed consolidated financial statements included in its affect, our relationships with patients and business partners and subject us to legal claims and liabilities, reputational harm Quarterly Report on Form 10-Q for the nine months ended September 30, 2026 for further discussion. 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 September 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