The Ensign Group, Inc.

Q2 consolidated GAAP revenue and adjusted revenue were both $1.4 billion, up 17.3% year over year. GAAP diluted EPS was $1.68, up 16.7%, and adjusted diluted EPS was $1.92, up 20.8%. GAAP net income was $99.7 million, up 18.2%, and adjusted net income was $114.3 million, up 22.5%. Cash and cash equivalents were $262.3 million and cash flow from operations was $272.1 million as of June 30, 2026. The company spent more than $460 million on strategic growth in the first half of 2026 and said lease-adjusted net debt-to-EBITDA was 2x. For 2026, Ensign raised EPS guidance to $7.75-$7.85 and revenue guidance to $5.87 billion-$5.92 billion; management said the guidance assumes about 59.5 million weighted average shares, a 25% tax rate, acquisitions closed and expected in Q3, and reimbursement assumptions. The company also paid a quarterly cash dividend of $0.065 per common share and has increased the annual dividend for 23 consecutive years.

Barry Port framed the quarter as evidence that Ensign’s mission, culture and operating model are continuing to translate into financial performance. He emphasized CAPLICO, the ONE CLINICAL model, and the belief that clinical outcomes, employee stability and referral trust are the foundation for sustainable growth. Tone was confident and upbeat, especially around occupancy runway, acquisition opportunities and the durability of the model.

Suzanne Snapper highlighted the quarter’s hard numbers: $1.4 billion of revenue, $1.68 GAAP EPS, $1.92 adjusted EPS, $99.7 million of GAAP net income, $114.3 million adjusted net income, $262.3 million of cash, and $272.1 million of operating cash flow. She said Ensign spent more than $460 million on growth in the first half while still holding lease-adjusted net debt-to-EBITDA at 2x, with more than $592 million available on the line of credit and over $850 million of total dry powder including cash. She also noted the dividend, the 23-year streak of annual increases, and reiterated that guidance includes expected Q3 acquisitions and reimbursement assumptions.

Analysts focused on CMS quality-measure methodology changes, the impact of being removed from the Special Focus Facility list, the pace of integration for newly acquired buildings, and whether share repurchases are a durable capital-allocation priority. Management said the CMS methodology change should affect everyone, but early analysis suggests Ensign’s impact may be smaller than expected and partly offset by gains elsewhere in the 5-star system. On The Reserve, they said momentum had been building for years so leaving the Special Focus list should help, but it is not the primary driver of its improvement. On new acquisitions, management said the Texas deals are more typical turnarounds and are not expected to be accretive for a while; any upside beyond guidance would depend on faster-than-expected execution. On buybacks, they said repurchases have long been part of the strategy and reflect confidence in the stock’s valuation, but they will not change the acquisition plan.