Pediatrix Medical Group, Inc. Q1 FY2026 earnings call

• CEO mentioned strong first quarter results with adjusted EBITDA $58 million, strong pricing outpacing modest volume decline in service lines, comfortable with no headwind estimate for tax subsidy lapse, and reaffirming full 2026 outlook of $280 to $300 million in adjusted EBITDA. • CFO provided details on consolidated revenue increase, pricing growth drivers, expense details including G&A, DNA, and other non-operating expenses, cash flow information, and maintained full year adjusted EBITDA outlook. • Mentioned investment in care quality with new physician leaders joining, expanding hospital partnerships, opportunities in teleservices and obstetrics, and rolled out share price-based awards compensation program.

Consolidated revenue increase was driven by same-unit growth of just under 3% and net non-famous unit activity of about $6 million. Adjusted EBITDA came in at $58 million. Pricing growth of 4% was driven by solid RCM cash collections, increases in contract administrative fees, favorable payer mix, and increased patient acuity in neonatology, while volume declines were seen across service lines, including NICU days down about 1%. Practice-level SWMB expenses increased by $9 million year-over-year primarily due to same-unit increases in clinical salary expense.

Reaffirming full 2026 outlook of $280 to $300 million in adjusted EBITDA. First quarter results represented about 20% of that annual expected range, and expecting adjusted EBITDA for remaining three quarters to be fairly ratable.

• Major hospital systems have seen decline in patient volume and revenue, which may affect in the future. • Uncertainty regarding the potential effect of tax subsidy lapse.

Q: When looking at pricing above 4%, any potential headwinds or impacts?

A: Pricing components include RCM cash collections, contract revenue, payer mix, and acuity. Expect pricing to kick down a bit as year progresses but no other known headwinds.

Q: Thoughts on continued decrease in volume in NICU days?

A: Recent results haven't shown a continued trend, so no different forecast.

Q: On pricing visibility, payer mix strength?

A: No signs of weakness in payer mix, and contract revenue has been strong.

Q: Thoughts on recent acquisitions?

A: Recent acquisitions have done better than initial projections.

Q: On second quarter modeling, any one-timers?

A: No one-timers to call out.

Q: Quantify pricing from cash collections and admin fees?

A: About 25% of pricing from cash collections, admin fees around 20% for the quarter, contracts vary.

Q: Maintaining flat pricing guidance?

A: Maintaining flat outlook as RCM cash collections expected to tail off, early in year.