Revenue growth remains robust at 36.0% year-over-year, though structural labor costs continue to constrain gross margins to approximately 12.9% as of 2025Q4.
| Sales/Revenue | 1.02B | 947.71M | 695.24M | 544.89M | 473.24M | 439.69M | 390.95M | 338.53M | 286.06M | 250.99M |
| Revenue Growth % | 36.76% | 36.31% | 27.59% | 15.14% | 7.63% | 12.47% | 15.49% | 18.34% | 13.97% | - |
| Cost of Goods Sold | 623.98M | 825.24M | 601.48M | 477.86M | 414.66M | 391.1M | 336.06M | 293.92M | 243.62M | 218.58M |
| COGS % of Revenue | - | 87.08% | 86.51% | 87.7% | 87.62% | 88.95% | 85.96% | 86.82% | 85.16% | 87.09% |
| Gross Profit | 113.88M | 122.47M | 93.76M | 67.04M | 58.59M | 48.59M | 54.89M | 44.62M | 42.44M | 32.41M |
| Gross Margin % | 11.13% | 12.92% | 13.49% | 12.3% | 12.38% | 11.05% | 14.04% | 13.18% | 14.84% | 12.91% |
| Gross Profit Growth % | - | 30.61% | 39.87% | 14.43% | 20.56% | -11.47% | 23.03% | 5.13% | 30.95% | - |
| Operating Expenses | 93.73M | 71.08M | 55.65M | 41.87M | 45.85M | 43.9M | 35.97M | 38.95M | 21.81M | 17.01M |
| OpEx % of Revenue | - | 7.5% | 8% | 7.68% | 9.69% | 9.98% | 9.2% | 11.5% | 7.62% | 6.78% |
| Selling, General & Admin | 90.54M | 71.08M | 50.21M | 36.67M | 33.98M | 36.26M | 31.3M | 35.13M | 18.84M | 14.46M |
| SG&A % of Revenue | - | 7.5% | 7.22% | 6.73% | 7.18% | 8.25% | 8.01% | 10.38% | 6.59% | 5.76% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 5.44M | 5.2M | 11.87M | 7.64M | 4.67M | 3.81M | 2.96M | 2.54M |
| Operating Income | 57.14M | 51.39M | 38.12M | 25.17M | 12.74M | 4.7M | 18.92M | 5.67M | 20.63M | 15.4M |
| Operating Margin % | 5.58% | 5.42% | 5.48% | 4.62% | 2.69% | 1.07% | 4.84% | 1.67% | 7.21% | 6.14% |
| Operating Income Growth % | - | 34.83% | 51.44% | 97.57% | 171.33% | -75.18% | 233.63% | -72.52% | 33.95% | - |
| EBITDA | 66.4M | 59.93M | 44.23M | 30.3M | 17.64M | 9.48M | 23.59M | 9.48M | 23.59M | 17.95M |
| EBITDA Margin % | 6.49% | 6.32% | 6.36% | 5.56% | 3.73% | 2.16% | 6.03% | 2.8% | 8.25% | 7.15% |
| EBITDA Growth % | 35.73% | 35.48% | 45.99% | 71.77% | 86.08% | -59.82% | 148.86% | -59.82% | 31.48% | - |
| D&A (Non-Cash Add-back) | 9.26M | 8.54M | 6.12M | 5.13M | 4.9M | 4.78M | 4.67M | 3.81M | 2.96M | 2.54M |
| EBIT | 39.73M | 52.31M | 38.32M | 25.51M | 12.71M | 4.67M | 19.14M | 5.67M | 20.63M | 15.4M |
| Net Interest Income | -2.4M | -6.68M | -6.96M | -5.92M | -3.82M | -1.94M | -1.24M | -410K | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.4M | 6.68M | 6.96M | 5.92M | 3.82M | 1.94M | 1.24M | 410K | 0 | 0 |
| Other Income/Expense | -8.8M | -5.76M | -6.75M | -5.58M | -3.85M | -1.97M | -1.01M | -410K | 0 | 0 |
| Pretax Income | 48.34M | 45.63M | 31.37M | 19.58M | 8.89M | 2.73M | 17.9M | 5.26M | 20.63M | 15.4M |
| Pretax Margin % | 4.72% | 4.81% | 4.51% | 3.59% | 1.88% | 0.62% | 4.58% | 1.55% | 7.21% | 6.14% |
| Income Tax | 12.81M | 11.87M | 7.03M | 5.67M | 1.65M | 582K | 2.35M | 2.08M | 4.35M | 5.38M |
| Effective Tax Rate % | 26.49% | 26% | 22.41% | 28.97% | 18.54% | 21.32% | 13.13% | 39.64% | 21.09% | 34.9% |
| Net Income | 30.32M | 29.58M | 22.56M | 13.38M | 6.64M | 2.7M | 15.74M | 2.55M | 15.68M | 9.87M |
| Net Margin % | 2.96% | 3.12% | 3.24% | 2.46% | 1.4% | 0.61% | 4.03% | 0.75% | 5.48% | 3.93% |
| Net Income Growth % | 19.25% | 31.11% | 68.62% | 101.4% | 146.4% | -82.88% | 518.38% | -83.77% | 58.95% | - |
| Net Income (Continuing) | 33.76M | 33.76M | 24.34M | 13.91M | 7.24M | 2.15M | 15.55M | 3.17M | 16.28M | 10.03M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 43.42M | 41.65M | 18.68M | 5.18M | 4.64M | 4.04M | 4.59M | 0 | 9.43M | 4.92M |
| EPS (Diluted) | 0.85 | 0.84 | 0.71 | 0.44 | 0.22 | 0.07 | 0.52 | 0.09 | 0.56 | 0.35 |
| EPS Growth % | 11.84% | 18.31% | 61.36% | 100% | 213.84% | -86.52% | 504.65% | -84.64% | 60% | - |
| EPS (Basic) | - | 0.86 | 0.72 | 0.45 | 0.23 | 0.08 | 0.56 | 0.09 | 0.56 | 0.35 |
| Diluted Shares Outstanding | 35.76M | 35.32M | 32M | 30.19M | 30.16M | 30.64M | 30.23M | 29.59M | 28M | 28M |
| Basic Shares Outstanding | 34.73M | 34.56M | 31.19M | 29.86M | 29.06M | 28.41M | 28.03M | 27.84M | 27.83M | 27.83M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 455.62% | - | - |
Medicare reimbursement rate volatility
As reported in recent financial filings, PNTG achieved a significant 36.31% year-over-year revenue growth, signaling that the company's decentralized acquisition strategy is successfully scaling top-line volume despite a challenging regulatory environment for post-acute care providers across the Western United States.
The consistent acceleration in revenue growth suggests that the company's cluster-based operating model is effectively integrating new acquisitions into its existing footprint. Investors should monitor whether this rapid expansion is sustainable or if it relies on an increasingly expensive M&A pipeline that could eventually dilute the quality of the portfolio.
Based on the provided income statement data, gross margins have hovered near 12.92%, reflecting the inherent labor-intensive nature of the company's care delivery model and the persistent inflationary pressures on clinical wages that limit profitability in the home health and hospice segments.
The narrow gross margin profile indicates that PNTG lacks significant pricing power, as reimbursement rates are largely dictated by government payers rather than market demand. Future margin expansion appears contingent on the company's ability to optimize its labor mix and reduce reliance on high-cost temporary staffing agencies.
According to historical income statements, operating margins have remained relatively stable between 4.5% and 6.2%, suggesting that while revenue is scaling rapidly, the company has yet to achieve significant operating leverage through its centralized corporate overhead and administrative functions.
The lack of meaningful operating margin expansion despite strong top-line growth implies that the company's decentralized structure requires proportional increases in management and support costs. This suggests that the benefits of scale may be offset by the complexity of managing a growing number of local agency leaders.
Analysis of recent quarterly filings reveals that stock-based compensation, such as the $6.5M charge in 2025Q4, periodically creates volatility in net income, which warrants caution when evaluating the underlying cash-generating capability of the core healthcare operations versus accounting-driven fluctuations.
The presence of non-cash compensation charges suggests that management is utilizing equity incentives to align local leadership, which may be necessary for retention but complicates the assessment of true operational profitability. Investors should focus on adjusted EBITDA metrics to strip out these periodic distortions and better gauge performance.
Quick answers to the most common questions about buying PNTG stock.
For fiscal year 2025, The Pennant Group, Inc. (PNTG) reported total revenue of $947.7M. This represents a 277.6% increase compared to $251.0M in 2017.
The Pennant Group, Inc. (PNTG) is profitable, generating $29.6M in net income for the fiscal year ending 2025 with a net profit margin of 3.1%.
The Pennant Group, Inc. (PNTG) reported an operating income of $51.4M, resulting in an operating profit margin of 5.4%. This margin reflects the operational efficiency of the business before interest and taxes.
The Pennant Group, Inc. (PNTG) generated $122.5M in gross profit for the year, representing a gross profit margin of 12.9%. This demonstrates the company's core pricing power and production efficiency.