Pediatrix Medical Group, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 5 May 2026: press release. Guidance figures: 2 raised, 3 lowered, 1 kept. The quarter’s numbers.

Key takeaways

Net revenue grew to $476.2 million: Net revenue was $476.2 million against $458.4 million a year earlier. Same-unit growth and non-same-unit activity both contributed. Source
Adjusted EBITDA rose to $58.2 million: Adjusted EBITDA was $58.2 million against $49.2 million a year earlier. Management attributed the increase mainly to same-unit results and recent acquisitions. Source
Diluted EPS $0.36 against $0.24: Net income was $29.6 million, or $0.36 per diluted share, against $20.7 million, or $0.24 per diluted share, in the 2025 first quarter. Source
Reimbursement factors lifted same-unit revenue: Management listed improved cash collections, higher hospital contract administrative fees, higher neonatology acuity and a slightly favorable payor mix as drivers. Source
Seasonal cash use cut balance: Cash and equivalents fell to $205.8 million from $375.2 million at December 31. Cash used in continuing operations was $129.5 million, which management described as typical for the first quarter. Source
Service-line volume statistics declined: Management reported year-over-year changes in hospital-based, office-based and neonatal intensive care unit volume statistics for the quarter, all of which were lower. Source

“Our first quarter operating results exceeded our expectations, driven by top-line growth,”
Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group

Guidance

Area	Period	Figure	Against last quarter
Adjusted EBITDA Source	Full year 2026	$280 million to $300 million	Kept
Net income (projected, Adjusted EBITDA reconciliation) Source	Year ended December 31, 2026	$152,100 and $166,700 (in thousands)	Lowered from $155,100 and $169,700 (in thousands)
Interest expense (projected) Source	Year ended December 31, 2026	$33,500 and $33,500 (in thousands)	Lowered from $34,000 and $34,000 (in thousands)
Income tax provision (projected) Source	Year ended December 31, 2026	$56,300 and $61,700 (in thousands)	Lowered from $57,400 and $62,800 (in thousands)
Depreciation and amortization (projected) Source	Year ended December 31, 2026	$24,800 and $24,800 (in thousands)	Raised from $24,300 and $24,300 (in thousands)
Transformational and restructuring expenses (projected) Source	Year ended December 31, 2026	$13,300 and $13,300 (in thousands)	Raised from $9,200 and $9,200 (in thousands)

What changed from last quarter

Guidance lowered: Projected full-year net income in the Adjusted EBITDA reconciliation is $152.1 million to $166.7 million, down from $155.1 million to $169.7 million in the prior quarter. Source
Guidance raised: Projected full-year transformational and restructuring expenses rose to $13.3 million from $9.2 million in the reconciliation. Source
Ended: Adjusted EBITDA no longer adjusts for goodwill impairment or gain on disposal of businesses. The prior quarter definition included those adjustments. Source
Ended: The Adjusted EPS definition no longer lists gain on disposal of businesses or related goodwill impairment adjustments. The prior quarter definition included them. Source

Results and growth drivers

Net revenue grew to $476.2 million: Net revenue was $476.2 million against $458.4 million a year earlier. Same-unit growth and non-same-unit activity both contributed. Source
Adjusted EBITDA rose to $58.2 million: Adjusted EBITDA was $58.2 million against $49.2 million a year earlier. Management attributed the increase mainly to same-unit results and recent acquisitions. Source
Diluted EPS $0.36 against $0.24: Net income was $29.6 million, or $0.36 per diluted share, against $20.7 million, or $0.24 per diluted share, in the 2025 first quarter. Source
Adjusted EPS $0.44 against $0.33: Adjusted EPS was $0.44 for the 2026 first quarter, compared with $0.33 for the 2025 first quarter. Source
Reimbursement factors lifted same-unit revenue: Management listed improved cash collections, higher hospital contract administrative fees, higher neonatology acuity and a slightly favorable payor mix as drivers. Source
Commercial payor share of services rose: The share of services reimbursed by commercial and other non-government payors increased by 45 basis points against the prior-year period. Source

Operating costs and restructuring

Clinical salaries rose to $345.7 million: Practice salaries and benefits were $345.7 million against $337.0 million, which management attributed to increases in same-unit clinical salaries. Source
G&A rose on incentive compensation: General and administrative expenses were $60.3 million against $58.6 million. The increase was attributed to higher incentive compensation, partly offset by lower professional services and other expenses. Source
Restructuring costs tied to revenue cycle: Transformational and restructuring expenses were $4.9 million against $6.6 million. Both periods related to revenue cycle management transition and position eliminations. Source
Supplies and other operating costs fell: Practice supplies and other operating expenses were $17.5 million against $18.7 million in the prior-year period, per the income statement. Source

“Our priorities for 2026 remain focused on maximizing quality driven support for our hospital partners.”
Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group

Cash, debt and share count

Seasonal cash use cut balance: Cash and equivalents fell to $205.8 million from $375.2 million at December 31. Cash used in continuing operations was $129.5 million, which management described as typical for the first quarter. Source
Buybacks, acquisitions and capex funded: During the quarter the company used $21.5 million for share repurchases, $7.0 million for acquisitions and $6.2 million for capital expenditures. Source
Debt totalled $591 million: Total debt was $591 million at March 31, 2026: $400 million of 5.375% Senior Notes due 2030 and $191 million under the Term A Loan. Source
Revolver undrawn at quarter end: The company had no outstanding borrowings under its $450 million revolving line of credit at March 31, 2026. Source
Share count fell on repurchases: Weighted average shares were 83.1 million against 85.4 million. Management attributed the decline to repurchases, partly offset by restricted stock issuance. Source

Strategy and service-line volumes

Cash flow and balance sheet cited: Management said robust cash flow and a healthy balance sheet place the company to look for new activity and move decisively. Source
Service-line volume statistics declined: Management reported year-over-year changes in hospital-based, office-based and neonatal intensive care unit volume statistics for the quarter, all of which were lower. Source
Acquisitions added, dispositions offset: Non-same-unit activity came from recent acquisitions, which management said were partially offset by practice dispositions. Source

Non-GAAP measures and tax

Adjusted EPS tax effects at 25%: Management applied a blended 25% tax rate to calculate the tax effects of the Adjusted EPS adjustments for both quarters. Source
Reconciliation tables included in release: The release includes reconciliations of Adjusted EBITDA and Adjusted EPS to the most directly comparable GAAP measures, and a projected full-year Adjusted EBITDA reconciliation. Source
Discrete tax events deducted from Adjusted EPS: A net impact from discrete tax events of $1.1 million was deducted in the Adjusted EPS bridge, against $175 thousand in the prior-year period. Source

Below-the-line items

Depreciation rose on capex and acquisitions: Depreciation and amortization was $6.1 million against $5.3 million. Management linked the increase to existing-unit capex and acquisition amortization. Source
Interest expense fell to $8.3 million: Interest expense was $8.3 million against $9.2 million, which management attributed to modestly lower interest rates and borrowings. Source
Investment income rose slightly: Investment and other income was $4.8 million against $4.7 million in the prior-year period. Source

Figures management reported

Figure	Reported
Same-facility (same-unit) revenue growth Source	2.8 percent
Same-unit revenue from net reimbursement-related factors Source	4.4 percent increase
Same-unit revenue from patient volume Source	1.6 percent decrease
Hospital-based patient services volume Source	(1.5)%
Office-based patient services volume Source	(3.3)%
Neonatal intensive care unit (NICU) days Source	(0.8)%

Risks management discussed

Demand: Same-unit revenue from patient volume declined, while reimbursement-related factors added to same-unit revenue. Source
Operational: Revenue cycle management transition activity carried transformational and restructuring costs in both the current and prior-year periods. Source

Earlier plans management reported on

Not stated: Management reaffirmed the full-year 2026 Adjusted EBITDA range, which it had given on a preliminary basis in the prior quarter. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

FOR MORE INFORMATION:

Kasandra H. Rossi

Executive Vice President, Chief Financial Officer & Treasurer

Pediatrix Medical Group Reports First Quarter Results

FORT LAUDERDALE, Fla., May 5, 2026 - Pediatrix Medical Group, Inc. (NYSE: MD), a leading provider of physician services, today reported earnings of $0.36 per share for the three months ended March 31, 2026. On a non-GAAP basis, Pediatrix reported Adjusted EPS of $0.44.

For the 2026 first quarter, Pediatrix reported the following results:

Net revenue of $476 million;

Net income of $30 million; and

Adjusted EBITDA of $58 million.

“Our first quarter operating results exceeded our expectations, driven by top-line growth,” said Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group. “Our priorities for 2026 remain focused on maximizing quality driven support for our hospital partners. With robust cash flow and a healthy balance sheet, we believe we are also well-positioned to find new opportunities and move decisively.”

Operating Results - Three Months Ended March 31, 2026

Pediatrix’s net revenue for the three months ended March 31, 2026 was $476.2 million, compared to $458.4 million for the prior-year period. This increase reflects growth in same-unit revenue of 2.8 percent, and to a lesser extent, growth in non-same unit activity, driven by recent acquisitions, partially offset by practice dispositions.

Same-unit revenue from net reimbursement-related factors increased by 4.4 percent for the 2026 first quarter as compared to the prior-year period. This increase primarily reflects improved cash collections, an increase in hospital contract administrative fees, higher patient acuity, primarily in neonatology, and a slightly favorable shift in payor mix. The percentage of services reimbursed by commercial and other non-government payors increased by 45 basis points compared to the prior-year period.

Same-unit revenue attributable to patient volume decreased by 1.6 percent for the 2026 first quarter as compared to the prior-year period. Shown below are year-over-year percentage changes in certain same-unit volume statistics for the three months ended March 31, 2026. (Note: figures in the below table reflect contributions only to net patient service revenue and exclude other contributions to total same-unit revenue, including contract and administrative fees.)

	Three Months Ended March 31, 2026
Hospital-based patient services	(1.5)%
Office-based patient services	(3.3)%
Neonatology services (within hospital-based services):
Neonatal intensive care unit (NICU) days	(0.8)%

For the 2026 first quarter, practice salaries and benefits expense was $345.7 million, compared to $337.0 million for the prior-year period. This increase primarily reflects increases in same-unit clinical salaries expense.

For the 2026 first quarter, general and administrative expenses were $60.3 million, as compared to $58.6 million for the prior-year period. This increase primarily reflects an increase in incentive compensation expense based on financial results, partially offset by decreases in certain professional services and other expenses.

For the 2026 first quarter, transformational and restructuring related expenses were $4.9 million, compared to $6.6 million for the prior-year period. The expenses in both periods were related to revenue cycle management transition activities and position eliminations.

Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization and transformational and restructuring related expenses, was $58.2 million for the 2026 first quarter, compared to $49.2 million for the prior-year period. The increase in Adjusted EBITDA was primarily due to net favorable impacts from same-unit results and recent acquisitions.

Depreciation and amortization expense was $6.1 million for the first quarter of 2026, compared to $5.3 million for the same period in 2025. The increase was primarily related to capital expenditures at our existing units and from amortization of intangible assets and capital expenditures from recent acquisitions.

Interest expense was $8.3 million for the first quarter of 2026, compared to $9.2 million for the first quarter of 2025, reflecting a reduction in interest expense from modestly lower interest rates and borrowings.

Investment and other income was $4.8 million for the first quarter of 2026, compared to $4.7 million for the prior-year period.

Pediatrix generated net income of $29.6 million, or $0.36 per diluted share, for the 2026 first quarter, based on a weighted average shares outstanding of 83.1 million. This compares with net income of $20.7 million, or $0.24 per diluted share, for the 2025 first quarter, based on a weighted average shares outstanding of 85.4 million. The decrease in our weighted average shares outstanding is primarily due to the impact of shares repurchased under our repurchase program, partially offset by issuances of restricted stock.

For the first quarter of 2026, Pediatrix reported Adjusted EPS of $0.44, compared to $0.33 for the first quarter of 2025. For these periods, Adjusted EPS is defined as diluted income per common and common equivalent share excluding non-cash amortization expense, stock-based compensation expense, transformational and restructuring related expenses, and impacts from discrete tax events.

Financial Position and Cash Flow - Continuing Operations

Pediatrix had cash and cash equivalents of $205.8 million at March 31, 2026, compared to $375.2 million at December 31, 2025, and net accounts receivable at March 31, 2026 were $224.8 million.

For the first quarter of 2026, Pediatrix used cash of $129.5 million to fund continuing operations, compared to a use of $116.1 million during the first quarter of 2025. Pediatrix typically uses cash during the first quarter of each year as it pays incentive compensation, primarily to its affiliated physicians, and makes employee benefit plan matching contributions that were accrued during the prior year. Additionally, during the first quarter of 2026, the Company used $21.5 million to fund share repurchases, $7.0 million to fund acquisitions and $6.2 million to fund capital expenditures.

At March 31, 2026, Pediatrix had total debt outstanding of $591 million, consisting of its $400 million in 5.375% Senior Notes due 2030 and $191 million in borrowings under its Term A Loan. At March 31, 2026, the Company had no outstanding borrowings under its $450 million revolving line of credit.

2026 Outlook

Pediatrix reaffirms its full year 2026 outlook for Adjusted EBITDA, as defined above, and anticipates Adjusted EBITDA will be in a range of $280 million to $300 million.

Non-GAAP Measures

A reconciliation of Adjusted EBITDA and Adjusted EPS to the most directly comparable GAAP measures for the three months ended March 31, 2026 and 2025 is provided in the financial tables of this press release. A reconciliation of projected full year 2026 Adjusted EBITDA to the most directly comparable GAAP financial measures is provided in the financial tables of this press release.

Earnings Conference Call

Pediatrix will host an investor conference call to discuss the quarterly results at 9 a.m., ET today. The conference call Webcast may be accessed from the Company’s Website, www.pediatrix.com. A replay of the conference call will also be available at www.pediatrix.com.

ABOUT PEDIATRIX MEDICAL GROUP

Pediatrix® Medical Group, Inc. (NYSE:MD) is a leading provider of physician services. Pediatrix-affiliated clinicians are committed to providing coordinated, compassionate and clinically excellent services to women, babies and children across the continuum of care, both in hospital settings and office-based practices. Specialties include obstetrics, maternal-fetal medicine and neonatology complemented by multiple pediatric subspecialties. The group’s high-quality, evidence-based care is bolstered by significant investments in research, education, quality-improvement and safety initiatives. The physician-led company was founded in 1979 as a single neonatology practice and today provides its highly specialized and often critical care services through approximately 4,300 affiliated physicians and other clinicians. To learn more about Pediatrix, visit www.pediatrix.com or follow us on Facebook, Instagram, LinkedIn and the Pediatrix blog. Investment information can be found at www.pediatrix.com/investors.

Forward-looking statements notice

Certain statements and information in this press release may be deemed to contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may include, but are not limited to, statements relating to the Company’s objectives, plans and strategies, its full year 2026 guidance, future impacts of legal, regulatory, political and macroeconomic developments and all statements, other than statements of historical facts, that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future. These statements are often characterized by terminology such as “believe,” “hope,” “may,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy” and similar expressions, and are based on assumptions and assessments made by the Company’s management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward-looking statements in this press release are made as of the date hereof, and the Company undertakes no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Important factors that could cause actual results, developments, and business decisions to differ materially from forward-looking statements are described in the Company’s most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q, including the sections entitled “Risk Factors”, as well the Company’s current reports on Form 8-K, filed with the Securities and Exchange Commission, and include the following: the impact of the Company’s practice portfolio management plans and whether the Company is able to achieve the expected favorable impact to Adjusted EBITDA therefrom; the effects of economic conditions on the Company’s business; the effects of the Medicare Access and CHIP Reauthorization Act of 2015, the Affordable Care Act, the One Big Beautiful Bill Act and potential additional healthcare reform; the Company’s relationships with government-sponsored or funded healthcare programs and with managed care organizations and commercial health insurance payors; the impact of state budgetary constraints and uncertainty over the future of Medicaid; the impact of surprise billing legislation; the Company’s transition to a hybrid revenue cycle management model; the timing and contribution of future acquisitions or organic growth initiatives; the Company’s ability to comply with the terms of debt financing arrangements and the Company’s ability to replace, refinance or extend its current debt financing arrangements; and the effects of the Company’s transformation initiatives, including our renewed focus, and growth strategy for, the Company’s hospital-based and maternal-fetal service lines.

Consolidated Statements of Income and Comprehensive Income

(in thousands, except per share data)

(Unaudited)

	Three Months Ended March 31,
	2026	2025
Net revenue	$476,196	$458,359
Operating expenses:
Practice salaries and benefits	345,744	337,031
Practice supplies and other operating expenses	17,488	18,686
General and administrative expenses	60,266	58,604
Depreciation and amortization	6,119	5,332
Transformational and restructuring related expenses	4,922	6,605
Total operating expenses	434,539	426,258
Income from operations	41,657	32,101
Investment and other income	4,760	4,737
Interest expense	(8,265)	(9,154)
Equity in earnings of unconsolidated affiliate	692	406
Total non-operating expenses	(2,813)	(4,011)
Income before income taxes	38,844	28,090
Income tax provision	(9,272)	(7,353)
Net income	$29,572	$20,737
Other comprehensive income, net of tax
Unrealized holding (loss) gain on investments, net of tax of $152 and $255	(533)	779
Total comprehensive income	$29,039	$21,516
Per common and common equivalent share data (diluted):
Net income:	$0.36	$0.24
Weighted average common shares	83,075	85,430

Reconciliation of Net Income to Adjusted EBITDA

(in thousands)

(Unaudited)

	Three Months Ended March 31,
	2026	2025
Net income	$29,572	$20,737
Interest expense	8,265	9,154
Income tax provision	9,272	7,353
Depreciation and amortization expense	6,119	5,332
Transformational and restructuring related expenses	4,922	6,605
Adjusted EBITDA	$58,150	$49,181

Reconciliation of Diluted Net Income per Share

to Adjusted Income per Diluted Share (“Adjusted EPS”)

(in thousands, except per share data)

(Unaudited)

	Three Months Ended March 31,
	2026		2025
Weighted average diluted shares outstanding		83,075		85,430
Net income and diluted net income per share	$29,572	$0.36	$20,737	$0.24
Adjustments :
Amortization (net of tax of $564 and $430)	1,695	0.02	1,290	0.01
Stock-based compensation (net of tax of $937 and $573)	2,808	0.03	1,720	0.02
Transformational and restructuring expenses (net of tax of $1,230 and $1,651)	3,692	0.04	4,954	0.06
Net impact from discrete tax events	(1,135)	(0.01)	(175)	-
Adjusted income and diluted EPS	$36,632	$0.44	$28,526	$0.33

A blended tax rate of 25% was used to calculate the tax effects of the adjustments for the three months ended March 31, 2026 and 2025.

Balance Sheet Highlights

(in thousands)

(Unaudited)

	As of March 31, 2026	As of December 31, 2025
Assets:
Cash and cash equivalents	$205,780	$375,241
Short-term investments	123,194	124,482
Accounts receivable, net	224,801	229,665
Other current assets	33,259	34,126
Intangible assets, net	15,937	16,862
Operating and finance lease right-of-use assets	36,871	34,330
Goodwill, other assets, property and equipment	1,430,453	1,431,990
Total assets	$2,070,295	$2,246,696
Liabilities and shareholders' equity:
Accounts payable and accrued expenses	$236,930	$419,530
Total debt, including finance leases, net	590,769	597,338
Operating lease liabilities	38,946	37,277
Other liabilities	325,074	326,697
Total liabilities	1,191,719	1,380,842
Total shareholders' equity	878,576	865,854
Total liabilities and shareholders' equity	$2,070,295	$2,246,696

Reconciliation of Net Income to Forward-Looking Adjusted EBITDA

(in thousands)

(Unaudited)

	Year Ended December 31, 2026
Net income	$152,100	$166,700
Interest expense	33,500	33,500
Income tax provision	56,300	61,700
Depreciation and amortization expense	24,800	24,800
Transformational and restructuring related expenses	13,300	13,300
Adjusted EBITDA	$280,000	$300,000

Contacts
954-692-7163 kasandra.rossi@pediatrix.com