Pediatrix Medical Group, Inc.

Pediatrix reported second-quarter adjusted EBITDA of $76 million and reaffirmed full-year 2026 adjusted EBITDA guidance of $280 million to $300 million. Consolidated revenue increased 4%, with same-unit growth of 2%; same-unit pricing rose 4% while same-unit patient service volumes declined 2%. Same-unit payer mix improved by 135 basis points versus the prior-year second quarter and by 120 basis points versus Q1 2026. Operating cash flow was $126 million versus $138 million a year ago, cash was $289 million, total debt was $584 million, and net debt was just over $295 million. The company also said shares outstanding were 81 million, down from 87 million at the end of Q2 2025, and 2026 G&A is expected to be $230 million to $240 million, likely toward the high end.

Mark Ordan framed the quarter as solid and emphasized that Pediatrix’s model is built around a large physical footprint in neonatology and maternal-fetal medicine, which he believes supports a broader telehybrid offering. He said telemedicine is most effective when paired with physical patient visits and highlighted expansion into OB hospitalist, retinopathy, neurology, infectious disease, and neonatology. He also stressed balance-sheet strength and said the company is actively looking for growth opportunities, including possible JVs and capital-partner arrangements, while continuing share repurchases when they make financial sense.

Kasandra Rossi said revenue growth was driven by non-same-unit activity and 2% same-unit growth, with pricing up 4% from strong RCM collections, favorable payer mix, and higher acuity. She noted practice-level salaries and malpractice expense were up year over year, salary increases have stayed in a tight 3% to 3.5% band, and G&A rose to $5.8 million from $5.3 million largely due to executive transition-related compensation and acquisition-related amortization. She also said other nonoperating expense fell to $2.9 million from $4.9 million due to lower interest expense and higher interest income, operating cash flow was $126 million, DSO was 42.5 days, leverage was just above 1x using the 2026 EBITDA midpoint, and second-half EBITDA should be fairly ratable.

Analysts pressed on whether stable payer mix could hold up if subsidy-related insurance losses hit other providers, and management said Pediatrix has not seen the same effect to date, though it is not claiming immunity. They also asked about volume declines, and Mark Ordan said the company views them as broadly in line with seasonal patterns and expects full-year volumes to be flat to slightly down, not necessarily a new trend. On pricing, management said RCM collections remain the biggest tailwind but will start to lap in the second half, while acuity should continue to help and there were no additional pricing drivers to flag. On acquisitions, management said dispositions are behind them and that the market looks more favorable for disciplined buys, with capital partners potentially helping fund larger deals.