The Pennant Group, Inc. (PNTG): Business Model Canvas [Dec-2025 Updated]

You're digging into how The Pennant Group, Inc. actually makes its money, especially after that big asset grab from UnitedHealth and Amedisys. Honestly, seeing their 2025 revenue guidance land between $911.4 million and $948.6 million tells you they are serious about growth through acquisition and a local-leader-driven care model spanning home health, hospice, and senior living. As someone who's seen a few market cycles, I can tell you this canvas cuts through the noise to show you exactly where their value is created and what costs they are managing. Let's break down the nine building blocks of this post-acute care powerhouse below.

The Pennant Group, Inc. (PNTG) - Canvas Business Model: Key Partnerships

You're looking at The Pennant Group, Inc.'s (PNTG) key external relationships that fuel its growth and operational footprint as of late 2025. These aren't just vendors; they are strategic anchors in key geographic markets and essential revenue channels.

Strategic Acquisition of 54 Home Health/Hospice Locations from UnitedHealth/Amedisys

The most recent, and certainly transformative, partnership is the acquisition that closed on October 1, 2025. The Pennant Group, Inc. purchased divested home health, hospice, and personal care operations from UnitedHealth Group Incorporated following their antitrust settlement with Amedisys Inc..

This deal added 54 locations across Tennessee, Alabama, and Georgia for a combined purchase price of $146.5 million. This move strategically establishes a 'center of strength' in the Southeast, expanding The Pennant Group, Inc.'s footprint to 14 states. The acquired assets brought in combined revenues of $189.3 million over the trailing twelve months leading up to the close.

Here's a quick look at the revenue profile of the acquired assets and how The Pennant Group, Inc. was performing before the full integration:

Metric	Acquired Asset Revenue Split	The Pennant Group, Inc. Q2 2025 Segment Revenue	The Pennant Group, Inc. Q3 2025 Segment Revenue
Home Health Revenue Share/Contribution	Approximately two-thirds	$166 million (Q2 2025)	$173.6 million (Q3 2025)
Hospice Revenue Share/Contribution	Approximately one-third	Segment up 32.5% YoY (Q2 2025)	Segment up 27.9% YoY (Q3 2025)

The integration is expected to become accretive in 2026, using the model developed from the prior Signature Healthcare acquisition. The hospice portion of the acquired business contributed to a Q3 2025 Hospice average daily census of 4,044, an increase of 17.4% compared to the prior year quarter.

Joint Venture with John Muir Health for Bay Area Home Health Services

The Pennant Group, Inc. entered a home health joint venture (JV) with John Muir Health, which closed effective January 1, 2024. This JV operates under the name Muir Home Health across San Francisco's East Bay Region.

The structure involves John Muir Health contributing its existing home health business to the new entity, which is then majority-owned and managed by a Pennant subsidiary. The Pennant Services, Inc. entity provides the operational and administrative support backbone for the venture.

The services offered through Muir Home Health include:

• Skilled nursing
• Physical, occupational, and speech therapy
• Home health aide services
• Medical social work services

Management and Consulting Agreement with Hartford HealthCare at Home

The Pennant Group, Inc. established a management and consulting services agreement with Hartford HealthCare at Home (HHCAH), the home health and hospice segment of Hartford HealthCare. This partnership, which marked The Pennant Group, Inc.'s entry into Connecticut (its 14th state as of the announcement), has Hartford HealthCare retaining ownership of HHCAH.

The support provided by The Pennant Group, Inc. is channeled through a dedicated service center launched in Connecticut, which offers:

• Financial support services
• Human resources advising
• Information technology support

As of the agreement date, HHCAH operated 8 locations, employed over 1,000 people, and recorded over 33,000 home health admissions and approximately 4,000 hospice admissions over the prior 12 months.

Partnerships with Medicare, Medicaid, and Private Managed Care Payors

The Pennant Group, Inc.'s revenue streams are fundamentally dependent on contracts with major payors, which include Medicare, Medicaid, and various private managed care organizations. These payor relationships set the reimbursement terms for the majority of The Pennant Group, Inc.'s home health and hospice services.

The regulatory environment for these partnerships is dynamic, particularly concerning Medicare:

• The Centers for Medicare & Medicaid Services (CMS) proposed a 2.4% payment increase for hospice facilities for FY 2026.
• The updated annual per-patient cap under Medicare hospice rules was set at $35,292.51.
• There is a consistent industry shift toward value-based care models, where reimbursement is tied to quality and cost-effectiveness over volume.

For Medicaid, The Pennant Group, Inc. operates within state-specific managed care structures, such as Pennsylvania's HealthChoices program, where capitation rates for Calendar Year (CY) 2025 are set based on prior encounter data. The Pennant Group, Inc.'s ability to successfully negotiate and maintain favorable rates across these payor segments is critical, especially given the shift away from pure fee-for-service arrangements.

Finance: draft 13-week cash view by Friday.

The Pennant Group, Inc. (PNTG) - Canvas Business Model: Key Activities

You're looking at the core engine driving The Pennant Group, Inc.'s growth, which is heavily reliant on M&A execution and decentralized management. Honestly, the key activities here aren't just about providing care; they're about buying, integrating, and empowering local teams.

Aggressive, disciplined acquisition and integration of new operations

The Pennant Group, Inc. maintains a strategy centered on acquiring new operations, often scouting for agencies with existing 'talented' local leaders. The integration process is modeled after prior successes, like the Signature acquisition, to ensure smooth transitions for the largest deals. The company closed on its largest transaction to date, the UnitedHealth Amedisys asset divestiture, on October 1, 2025. This disciplined approach aims for a five-year return on capital for acquisitions.

Here's a look at some recent additions to the portfolio:

Acquisition Activity Detail	Metric/Count	Date Context
New Senior Living Units Added (Early 2025)	188 units	Early 2025
Senior Living Transactions Closed (Early 2025)	3 transactions	Early 2025
Largest Acquisition Completed	UnitedHealth Amedisys Assets	October 1, 2025
Other Recent Acquisitions	GranCare, Healing Hearts Home Health	Q3 2025

Operating a decentralized, local-leader-driven clinical service model

The Pennant Group, Inc. operates as a holding company where each business unit functions as a separate, independent operating subsidiary with its own management. This structure supports the decentralized model, which is central to their operating philosophy. As of December 31, 2024, the footprint spanned across 13 states, plus operational support via a management service agreement in Connecticut.

The scale of this decentralized network includes:

• Home health and hospice agencies: 123
• Senior living communities: 57 (as of Dec 31, 2024)
• Total senior living units: 3,960 (AL, IL, MC) (as of Dec 31, 2024)

Investing heavily in leadership and clinical development programs

Developing local leaders is explicitly stated as being 'at the heart' of The Pennant Group, Inc.'s operating model, acting as a catalyst for momentum. These investments are credited with helping accelerate senior living occupancy rates. The company launched specific programs to build out its leadership pipeline.

Here are the reported numbers for leadership development:

• CEO-in-training program additions (Q4 2024): 66 leaders
• Clinical leadership training participants (Q4 2024): 40 participants
• Total CEOs added to portfolio agencies (Year to date prior to Q3 2025): Over 60
• Internal clinical leaders added (Year to date prior to Q3 2025): 40

Providing skilled nursing, therapy, and palliative care services

The Pennant Group, Inc. provides services across home health, hospice, and senior living segments. Geriatric primary and palliative care services are part of the offering, which includes physician and nurse practitioner services delivered in the home or facility setting. The company's Q3 2025 results show strong performance across both operating segments, with the Home Health and Hospice segment driving record clinical and financial results.

Segment performance highlights for the quarter ended September 30, 2025:

Metric	Home Health & Hospice	Senior Living
Segment Revenue (Q3 2025)	$173.6 million	Implied from Total Revenue less H&H Revenue
Segment Adjusted EBITDA (Q3 2025)	$26.8 million	Implied from Total Adj. EBITDA of $17.3M
Hospice Average Daily Census Growth (YoY)	17.4% increase	N/A
All-Store Occupancy Rate (Q3 2025)	N/A	80.9%

The company is focused on improving Medicare Advantage rates and is working to reduce the differential between those rates and fee-for-service reimbursement in its home health operations. To be fair, the company noted that less than 20% of revenue comes from Medicare home health fee-for-service reimbursement, which helps mitigate regulatory risk. Finance: draft 13-week cash view by Friday.

The Pennant Group, Inc. (PNTG) - Canvas Business Model: Key Resources

The Pennant Group, Inc. (PNTG) relies on a mix of physical infrastructure, financial strength, and decentralized human capital to execute its business model.

The physical network, which is the core of the service delivery, has expanded across states and service lines as of the second quarter of 2025.

Resource Metric	Value as of Q2 2025	Context/Date
Home Health and Hospice Agencies	137	Operating subsidiaries as of Q2 2025
Senior Living Communities	61	Operating communities as of Q2 2025
States of Operation	13	States served as of Q2 2025
Total Senior Living Units Added via Q1 2025 M&A	188 units	Added through new triple-net lease agreements in Q1 2025
Senior Living Units Added via Q4 2024 M&A	125 units	Added via triple-net lease in Green Bay, Wisconsin area

Financially, the company maintains a balance sheet position that supports its acquisition strategy, though cash levels fluctuate with capital deployment.

Financial Metric (in thousands)	June 30, 2025	December 31, 2024
Cash	$14,385	$24,246
Accounts Receivable (less allowance)	$95,720	$81,302

The company's updated 2025 annual guidance anticipates total revenue between $852.8 million and $887.6 million, with adjusted EBITDA from operations projected between $69.1 million and $72.7 million.

The human capital is characterized by its decentralized structure, where local leaders and clinical staff drive operations. While the exact count of this specific group isn't explicitly stated, the scale of operations reflects a significant workforce:

• Total revenue for the second quarter of 2025 was $219.5 million.
• Home Health and Hospice Services segment adjusted EBITDAR from operations for Q2 2025 was $27.7 million.
• Total home health admissions for Q2 2025 were 17,832, a 26.1% increase year-over-year.
• Hospice average daily census for Q2 2025 was 3,909 patients, up 21.4% year-over-year.

The senior living segment's real estate assets are often held under triple-net lease agreements, which shifts certain operational costs to the tenant. Key performance indicators for this segment in Q2 2025 include:

• Segment revenue: $53.5 million.
• Average occupancy: 78.8% (flat with the prior year quarter).
• Average monthly revenue per occupied room: $5,188.

Finance: draft 13-week cash view by Friday.

The Pennant Group, Inc. (PNTG) - Canvas Business Model: Value Propositions

The Pennant Group, Inc. (PNTG) delivers value through a coordinated approach across distinct but related healthcare services.

Integrated continuum of care: home health, hospice, and senior living

The Pennant Group, Inc. (PNTG) operates a platform that spans home health, hospice, and senior living services.

As of the end of the first quarter of 2025, the company's operational footprint included 137 home health, hospice, and home care agencies, alongside 60 senior living communities operating across 12 states.

The third quarter of 2025 demonstrated record operational performance across these segments, achieving all-time highs in senior living occupancy at 80.9%, hospice average daily census (ADC) of 4,044, and home health admissions reaching 20,426.

This integrated model supports the continuum of care delivery.

Metric	Q3 2025 Value	Year-over-Year Change
Total Revenue	$229 million	+26.8% YoY
Home Health & Hospice (HH&H) Revenue	$173.6 million	+27.9% YoY
Senior Living Revenue	$55.5 million	+23.2% YoY

Localized, high-quality, patient-centric care delivery model

The core of the model is empowering local clinical leaders to make key decisions based on community needs.

This local autonomy is intended to drive clinical outperformance and support strong patient outcomes.

• CMS reported hospice quality composite score improved to 97% in Q3 2025, above the national average of 92%.
• Acute care hospitalization rate was 13.3% in Q1 2025, which is below the national average of 14.1%.
• 73.5% of home health agencies held a Star rating of 4 and above as of Q1 2025.

Clinical excellence driving strong patient outcomes and referrals

Clinical performance directly fuels financial results, with one acquired entity projected to show an 11% revenue increase and 34% EBITDA increase over the prior year through its projected 2025 results.

For the second quarter of 2025, total home health admissions were 17,832, a 26.1% increase over the prior year quarter.

In the third quarter of 2025, total home health admissions were 20,426, representing a 36.2% increase year-over-year.

Same-store home health admissions grew 7% in Q3 2025 over the prior year quarter.

Diversified service offerings mitigating regulatory risk in one segment

The mix of home health, hospice, and senior living provides diversification against segment-specific headwinds, such as regulatory changes in home health.

The company raised its full-year 2025 revenue guidance to a midpoint of $930 million, up from a previous outlook of $870.2 million.

The full-year 2025 Adjusted EBITDA guidance midpoint was also raised to $72.35 million.

In Q3 2025, Senior Living segment Adjusted EBITDA from operations was $5.6 million, with the margin reaching 10.3%, an increase of 50 basis points year-over-year.

The company closed its largest deal in history in Q3 2025, involving 54 sites across Tennessee, Georgia, and Alabama, at an attractive T12M EBITDA purchase multiple within 4-7x.

Finance: draft 13-week cash view by Friday.

The Pennant Group, Inc. (PNTG) - Canvas Business Model: Customer Relationships

You're looking at how The Pennant Group, Inc. (PNTG) builds and keeps its patient and resident base. It's all about local presence and deep relationships, which is key in healthcare where trust matters more than almost anything else. This approach is reflected in their operational scale, with over 120 home health and hospice agencies and more than 50 senior living communities across multiple states as of late 2025.

The core of the high-touch model is empowering local leaders. This decentralized structure helps ensure decisions meet the specific needs of patients, families, and local referral sources, which is a stated differentiator for The Pennant Group, Inc. Clinical quality metrics support this focus; for instance, in Q1 2025, 73.5% of their home health agencies maintained a 4 Star rating or above. Also, their acute care hospitalization rate was reported at 13.3% in Q1 2025, which is better than the national average of 14.1%.

Direct relationships with patients and families are most prominent in the private pay segment, especially within Senior Living Services. For the year ended December 31, 2024, approximately 69.4% of their senior living revenue came from private pay sources. This indicates a strong reliance on direct consumer relationships for that segment. For the Home Health and Hospice segment, Medicare was the primary payor in 2024 at about 64.7% of segment revenue.

Contractual relationships with managed care organizations and government programs form the backbone of the overall revenue mix. For the third quarter ended September 30, 2025, Medicare accounted for 47.5% of total revenue, and Medicaid was 13.7% of total revenue. This reliance on government and contractual payors is significant, even as they manage regulatory shifts. The CEO noted that less than 20% of revenue arises from Medicare home health fee-for-service reimbursement, suggesting a strategic push toward other, potentially more stable, reimbursement models. You can see the detailed payor mix snapshot from Q1 2025 below, which gives a clearer picture of the four relationship types:

Payor Source / Relationship Type	Revenue Percentage (Q1 2025)	Notes
Medicare (Contractual)	48.2%	Largest single payor source in Q1 2025.
Private and Other (Direct Patient/Family)	24.2%	Includes revenue from all payors in home care operations.
Managed Care (Contractual)	14.6%	Represents formal contracts with managed care organizations.
Medicaid (Contractual)	13.0%	State-specific programs revenue share in Q1 2025.

The focus on clinical excellence drives patient acquisition and retention. For instance, total home health admissions grew 38.5% year-over-year in Q1 2025, with Medicare home health admissions specifically up 30.8%. This volume growth suggests their localized, quality-focused relationships are translating into referrals. The company is definitely focused on scaling this model, raising full-year 2025 revenue guidance to a range of $911.4 million to $948.6 million after Q3 results.

The Senior Living segment maintains a high private pay concentration, which means building strong, personal relationships with residents and their responsible family members is paramount for maintaining occupancy. The company reported occupancy was 79.2% in Q1 2025, with average monthly revenue per occupied unit at $5,093. Keeping those units full depends on that local, high-touch service delivery.

Finance: review the Q4 2025 covenant compliance projections based on the raised full-year guidance by December 20th.

The Pennant Group, Inc. (PNTG) - Canvas Business Model: Channels

The Pennant Group, Inc. (PNTG) uses a multi-faceted channel strategy to deliver its home health, hospice, and senior living services, heavily relying on its physical footprint and relationships within the healthcare ecosystem.

Network of affiliated home health, hospice, and senior living locations

The core channel is the physical network of operating subsidiaries, which allows for localized service delivery and relationship building. As of the end of the first quarter of 2025, The Pennant Group, Inc. (PNTG) operated:

• 137 home health and hospice agencies.
• 60 senior living communities.
• These operations spanned across 12 states.

This physical presence is augmented by growth through acquisition, such as the Q3 2025 closing of the largest deal in company history, involving 54 sites across Tennessee, Georgia, and Alabama.

The operational scale is reflected in the latest reported revenue figures. Trailing twelve month revenue as of September 30, 2025, was $847M USD. For the third quarter of 2025, total GAAP revenue reached $229.0M.

The key performance indicators for patient volume, which directly relate to service delivery channels, showed strength in the third quarter of 2025:

Metric	Q3 2025 Number	Year-over-Year Change
Home Health Admissions (Total)	20,426	+36.2%
Hospice Average Daily Census (ADC)	4,044	+17.4%
Senior Living Occupancy	80.9%	N/A (All-time high)

The focus on quality within the home health channel is evident, with 73.5% of agencies holding a Star rating of 4 and above. Also, the acute care hospitalization rate stood at 13.3%, which is below the national average of 14.1%.

Referrals from physicians, hospitals, and post-acute care facilities

The primary driver for patient volume in the home health and hospice segments is the professional referral network. This channel is critical for filling capacity across the affiliated agencies.

• Total home health admissions in Q3 2025 were 20,426.
• Medicare home health admissions for Q3 2025 represented 30.8% of total admissions growth.
• Same-Store Home Health Admissions grew by 15.5% in Q3 2025.

The company emphasizes maintaining strong relationships with these referral sources, noting optimism about retaining teams despite transitions, which helps secure consistent patient flow.

Digital presence and local community outreach programs

While the search results emphasize physical and referral channels, The Pennant Group, Inc. (PNTG) maintains a digital presence and engages in local outreach to support brand awareness and community integration for its independent subsidiaries.

The company's strategy involves ensuring that acquired operations understand 'what life will be like at Pennant' to build on legacy and retain staff, which supports the local service delivery channel.

Service center support for acquired operations, like in Connecticut

A centralized service center model supports the decentralized operating subsidiaries, providing back-office and administrative functions that allow local leaders to focus on clinical care and referral development. This structure is a key channel for scaling operations efficiently.

Following an acquisition in 2024, The Pennant Group, Inc. (PNTG) launched a dedicated service center based in Connecticut to support the operations of the acquired HHCAH entity. This centralized support is crucial for integrating new acquisitions, as seen with the Signature Healthcare at Home assets integration being ahead of schedule.

The service center model helps drive margin improvement; for instance, the Senior Living segment achieved an Adjusted EBITDA from operations margin of 10.3% in Q3 2025, a 50 basis point increase year-over-year.

Finance: draft 13-week cash view by Friday.

The Pennant Group, Inc. (PNTG) - Canvas Business Model: Customer Segments

You're looking at the core groups The Pennant Group, Inc. (PNTG) serves, which are primarily driven by demographic shifts toward an aging population needing various levels of care. These segments are the lifeblood of the company's revenue generation across its Home Health and Hospice Services and Senior Living Services divisions.

The Pennant Group, Inc. operates across 13 states, serving patients of all ages, but the focus is clearly on the continuum of post-acute and long-term care needs. The company's structure, spun off from The Ensign Group in 2019, emphasizes a decentralized model where independent operating subsidiaries manage local care delivery.

Growing senior population requiring post-acute and long-term care

This segment represents the broad market need that The Pennant Group, Inc. addresses. While the company doesn't report the total US senior population, its financial performance directly reflects its penetration into this growing demographic.

• The Pennant Group, Inc. operates across 13 states, including Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming, to capture this demand.
• The company's overall Total Revenue for the third quarter of 2025 reached $229.0 million.

Patients needing skilled home health and hospice services

This is the largest revenue-contributing segment for The Pennant Group, Inc., serving patients requiring skilled care in their homes or end-of-life hospice care. You can see the volume growth clearly in the quarterly admissions and census figures.

• Home Health and Hospice Services segment revenue for the third quarter of 2025 was $173.6 million, representing about 75.8% of total revenue for that quarter.
• Total home health admissions hit 20,426 in the third quarter of 2025, an increase of 36.2% over the prior year quarter.
• Medicare home health admissions, a key indicator of government payer volume, were 8,221 in the third quarter of 2025, up 35.4% year-over-year.
• Hospice average daily census (ADC) reached an all-time high of 4,044 patients in the third quarter of 2025.

Residents seeking assisted living, independent living, and memory care

The Senior Living Services segment caters to residents needing various levels of support, including assisted living and memory care. The focus here is on occupancy levels and the revenue generated per resident.

• The company achieved an all-time high in senior living occupancy during the third quarter of 2025.
• For the second quarter of 2025, the average occupancy rate was 78.8%.
• In the first quarter of 2025, the average monthly revenue per occupied room was $5,193, which was an increase of 11.3% over the prior year quarter.
• Senior Living Services segment revenue for the second quarter of 2025 was $53.5 million.

Here's a quick look at how the two main service segments performed in the latest reported quarters. Honestly, the growth in the Home Health and Hospice segment is outpacing the Senior Living segment on a percentage basis, but both are showing positive momentum.

Metric	Home Health and Hospice Services	Senior Living Services
Revenue (Q3 2025)	$173.6 million	Implied: $55.4 million (Calculated from Total $229.0M - HHH $173.6M)
Revenue (Q2 2025)	$166.0 million	$53.5 million
Key Volume Indicator (Q3 2025)	Total Admissions: 20,426	Occupancy: All-time high
Key Volume Indicator (Q1 2025)	Hospice ADC: 3,794	Avg. Monthly Revenue Per Occupied Room: $5,193

Managed care organizations and government agencies (indirect customers)

These entities act as significant payers for the services The Pennant Group, Inc. provides, particularly within the home health and hospice space. The volume of Medicare admissions is a direct proxy for the level of engagement with government-sponsored programs.

• Medicare home health admissions accounted for 8,221 of the total 20,426 home health admissions in the third quarter of 2025.
• The company's focus on revenue quality in senior living suggests an awareness of the reimbursement backdrop, though only about 13% of assisted living properties receive federal assistance from Medicaid, as noted in prior periods.

Finance: draft Q4 2025 segment revenue projections by next Tuesday.

The Pennant Group, Inc. (PNTG) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive The Pennant Group, Inc.'s operations as they integrate major growth. The cost structure is heavily weighted toward personnel, which is typical for a provider of this nature, but significant capital deployment for M&A is also a major factor.

High variable costs related to clinical staff wages and benefits are embedded primarily within the Cost of Services. For the Home Health and Hospice Services segment in the second quarter of 2025, the reported Cost of Services was $137,565 thousand on segment revenue of $165,248 thousand. Cost of Services itself is defined as primarily consisting of employee wages and related benefits, supplies, and purchased services. The company actively seeks to manage these labor costs by improving staff retention and reducing reliance on temporary agency services. The company generated $229.0 million in total revenue for the third quarter of 2025.

The commitment to growth via acquisition is a major cost component. The strategic acquisition of home health, hospice, and personal care operations from UnitedHealth Group Incorporated, which closed on October 1, 2025, carried a purchase price of $146.5 million. This deal added 54 locations, primarily in Tennessee. This capital expenditure follows prior growth, as the company took on $52.5 million in new long-term debt in the first quarter of 2025 alone to fund acquisitions. The company also expanded its credit capacity by adding a $100 million term loan to its credit facility during the third quarter of 2025 to support integration and selective M&A.

The decentralized structure necessitates specific Operating expenses for a decentralized structure and shared service center. General and administrative expense, which covers wages and benefits for Service Center personnel providing operational support, was $13,023 thousand for the three months ended September 30, 2024, and totaled $36,337 thousand for the nine months then ended. Management flagged near-term G&A elevation as a margin headwind following the close of the large October 2025 transaction. Acquisition-related costs, which are non-capitalizable, were $2,166 thousand in the first quarter of 2025.

Financing growth has increased the burden of Interest expense on long-term debt. As of September 30, 2024, The Pennant Group, Inc.'s Long-term debt, net stood at $108,875 thousand. The annual interest expenses were noted as $2.04 million over the last 12 months, though the full impact of the Q3 2025 $100 million term loan add-on is incorporated into the raised full-year 2025 guidance for higher interest expense.

Regulatory compliance and reimbursement-related costs present an ongoing risk that impacts cost management. The company faces the possibility of a net 6.4% payment reduction from the proposed 2026 CMS home health rule, which directly pressures margins for contracts indexed to Medicare rates. The Home Health and Hospice segment generated approximately 64.7% of its revenue from Medicare for the year ended December 31, 2024, making it sensitive to these policy shifts.

Here are some key expense and operational metrics for context:

Metric	Value (USD Millions)	Period/Date
FY 2025 Revenue Guidance (Midpoint)	$930.0	FY 2025
Q3 2025 Total Revenue	$229.0	Q3 2025
Acquisition Purchase Price (UHG/Amedisys)	$146.5	October 2025
Long-term Debt, Net	$108.9	September 30, 2024
New Term Loan Add-on	$100.0	Q3 2025
Annual Interest Expense (Approximate)	$2.04	Last 12 Months (Pre-New Debt Impact)
Q1 2025 Acquisition Related Costs	$2.166	Q1 2025
Potential CMS Home Health Payment Reduction	6.4%	Proposed 2026 Rule

You should track the Cost of Services as a percentage of Home Health & Hospice revenue, which was approximately 83.2% in Q2 2025 (137.565 / 165.248). The company's overall Operating Margin was 4.5% in Q3 2025, down from 6% in the same quarter last year, showing cost pressures relative to revenue growth.

• Home Health and Hospice Segment Revenue (Q3 2025): $173.6 million.
• Senior Living Services Segment Revenue (Q3 2025): $55.5 million.
• Total FY 2024 Revenue: $695 million.
• Total FY 2025 Revenue Guidance Raised to: $911.4M-$948.6M.

Finance: draft 13-week cash view by Friday.

The Pennant Group, Inc. (PNTG) - Canvas Business Model: Revenue Streams

You're looking at how The Pennant Group, Inc. (PNTG) actually brings in the money, which is key to understanding its valuation. The revenue streams are built around delivering healthcare services across different settings, primarily in-home care and senior living communities.

For the full year 2025, The Pennant Group, Inc. is guiding total revenue to be between $852.8 million and $887.6 million. That's a solid projection, especially when you look at the trailing twelve-month revenue as of September 30, 2025, which stood at $847 million.

The core of the business is definitely the Home Health and Hospice Services segment, which consistently represents the majority of sales. To give you a concrete look at the scale, here's how the revenue broke down in the second quarter of 2025:

Revenue Segment	Q2 2025 Revenue (in millions)	Year-over-Year Growth
Home Health and Hospice Services	$166.0 million	32.5%
Senior Living Services	$53.5 million	23.1%

The Senior Living Services stream comes from charging for room, board, and the level of care provided in their assisted living, independent living, and memory care communities. You can see the pricing power improving here; for the second quarter of 2025, the average monthly revenue per occupied room hit $5,188, marking an 8.3% increase over the prior year quarter.

When we look at where the money actually comes from-the payor mix-it shows The Pennant Group, Inc. is diversified, which helps mitigate risk from any single government payer change. As of the second quarter of 2025, the mix looked like this:

• Medicare payments accounted for 47.3% of total revenue.
• Medicaid payments made up 14.0% of total revenue.
• Private payors accounted for 24.8% of total revenue.
• Managed Care and other sources fill the remainder.

Also, the Home Care and Other Services revenue stream is defintely growing fast, which is a positive sign for diversification away from traditional episodic care. For the first quarter of 2025, this category brought in $15,166 thousand (or $15.166 million), which was a significant jump from the $4,671 thousand reported in the same period last year.

Finance: draft 13-week cash view by Friday.