Pediatrix Medical Group, Inc. Q4 FY2025 earnings call

Mark Ordan noted Q4 results were strong with adjusted EBITDA of $66M in line with upwardly adjusted guidance. 2025 full year adjusted EBITDA was $276M. Welcomed new leaders focusing on care quality. Introduced new physician programs including stock price tracking bonus and Pediatrix Partners. Looking ahead, opportunities in telemedicine, physical core growth in NICUs, maternal fetal medicine, OBH, etc.

Consolidated revenue decreased due to net non-same unit activity, but same unit growth of 4% with same unit pricing up just under 7%. Adjusted EBITDA for Q4 was $66,000,000, full year adjusted EBITDA was $276,000,000, and 2026 guidance is $280,000,000 to $300,000,000

2026 adjusted EBITDA expected to be in range of $280M - $300M, midpoint 5% above 2025. Full year 2026 revenue ~$1,900,000,000. G&A expense range $230M - $240M

Risks include potential effect on results if ACA subsidies continue to lapse with no effective remedy, which is difficult to quantify

Q: Could you kind of give us the drivers of that revenue growth for 2026?

A: Kasandra H. Rossi said overall assumes flat volume and pricing, average of what saw in 2025.

Q: With the negative patient volume year over year this quarter, is there anything you could call out regarding what happened this quarter?

A: Mary Ann Moore said it was about the comp, tough comp from Q4 of last year.

Q: Drill in a little bit on probably the quarter and the guidance as well, about variable comp expense and physician/stock-based comp structures.

A: Mark Ordan said various factors led to Q4 operations, alignment is key driver for physician/stock-based comp structures.

Q: Want to understand what could possibly be embedded in the guidance for ACA subsidy impact, and about pricing assumption.

A: Mark Ordan said guidance assumes same metrics as 2025, Mary Ann Moore said pricing assumption is average of 2025.

Q: Flush out more what is embedded in guidance with respect to cost or expense side, and share repurchase and M&A.

A: Mark Ordan said small expense reduction, small stock buyback anticipated, many growth opportunities including telemedicine, physical practices, etc., and may be opportunistic with M&A.

Q: Talk about pricing, strength over past couple of quarters and sustainability.

A: Mary Ann Moore said strong RCM collection, favorable payer mix, acuity, contract administrative fees, and anticipate steady in 2026 but tougher comps