PACS Group Group reports $1.5 billion revenue for Q3 2026

Item 6. Exhibits

Signatures

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FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements.⁴ We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q may be forward-looking statements including, but not limited to, statements regarding our strategy, future financial condition, future operations, projected costs, prospects, plans, objectives of management, and expected market growth;⁴ our plans, objectives, and expectations for our business, including facility acquisitions, divestitures, openings, and closures; the effects of industry and regulatory developments; our liquidity, capital resources, and uses of cash, including our Amended and Restated Credit Facility, amendments, waivers, and forbearance arrangements, and access to capital; the scope, timing, costs, and potential impacts of governmental and regulatory investigations and the SEC investigation, as well as other litigation and legal proceedings; the restatement of prior periods and related impacts; our internal controls and disclosure controls and procedures, including any material weaknesses and related remediation; and self-insurance liabilities, including actuarial estimates and related reserves. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions.

The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, our dependence on reimbursement from third-party payors, and changes in patient acuity mix, payor mix, payment methodologies, or new cost-containment initiatives could negatively impact our revenue and results of operations;⁵ we may not be fully reimbursed for all services billed through consolidated billing or bundled payments, reducing our revenue and financial condition; increased competition for, or shortages of, nurses, nurse assistants and other skilled personnel could raise labor costs and subject us to monetary fines; state efforts to regulate or deregulate healthcare services or the construction, expansion, or acquisition of healthcare facilities could impair our ability to expand or increase competition;⁵ failure to attract patients and residents or compete effectively with other healthcare providers may reduce our revenue and profitability; reviews and audits of care delivery, recordkeeping and billing may detect noncompliance requiring repayment of billed amounts or other costs; litigation and claims common in our industry could result in significant legal costs, settlements or damage awards, and our self-insurance programs may expose us to unexpected costs and losses; material weaknesses in our internal control over financial reporting, or failure to remediate such weaknesses or maintain effective controls, could impair timely and accurate reporting, reduce investor confidence, subject us to penalties, and affect the value of our common stock; inability to provide consistently high quality of care, or employee conduct that impacts patient health, safety or clinical treatment, could result in civil or criminal penalties and harm our operations; significant reliance on information technology, and any failure or interruption of that technology, could impair our operations; operational metrics derived from internal systems without independent verification may contain inaccuracies that harm our reputation; inability to complete acquisitions at attractive prices or at all may reduce revenue, and divestitures of underperforming or non-strategic subsidiaries would further decrease revenue; we may not successfully integrate acquired facilities or achieve expected benefits; acquisitions may entail unforeseen costs, liabilities or regulatory issues that adversely affect our operations; difficulty completing partnerships consistent with our growth strategy; failure to achieve or maintain competitive quality ratings from CMS or private rating organizations could negatively affect us; inability to obtain insurance or increases in insurance costs could impair our financial condition; geographic concentration of our facilities, including in California, increases vulnerability to local economic downturns, regulatory changes or natural disasters; actions of national labor unions may reduce our revenue and profitability; because we lease most facilities, we face risks from lease termination, extensions and special charges that could affect our financial condition and results of operations; insufficient cash flow to cover required payments or meet covenants under long-term debt, mortgages and leases could trigger defaults and cross-defaults, risking loss of facilities or foreclosures; we may need additional capital to fund operations and growth, which may be unavailable or available only on unfavorable terms; extensive and complex laws and regulations govern our industry, and noncompliance

Item 1. Financial Statements

PACS GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except for share and per share values)¹ (unaudited)

ASSETS

Current Assets:

Prepaid expenses and other current assets 81,356 170,630

Operating lease right-of-use assets 2,969,730 2,968,176

Insurance subsidiary deposits and investments 164,703 87,192

Escrow funds 25,468 18,404

Goodwill and other indefinite-lived assets 151,115 68,061

LIABILITIES AND EQUITY

Current Liabilities:

Current maturities of long-term debt 7,984 4,463

Current portion of accrued self-insurance liabilities 160,724 128,994

Long-term operating lease liabilities 2,933,068 2,939,854

Line of credit — 100,000

Long-term debt, less current maturities, net of deferred financing fees 264,350 244,803

Accrued self-insurance liabilities, less current portion 243,582 192,561

Commitments and contingencies (Note 15)

Equity:

PACS Group, Inc. stockholders' equity:

Total PACS Group, Inc. stockholders' equity 1,214,256⁷ 946,771

See accompanying notes to unaudited condensed consolidated financial statements.

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PACS GROUP, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except for share and per share values)

Three Months Ended September 30, Nine Months Ended September 30,

2026 2025 2026 2025

Revenue²

Total Revenue

$ 1,498,578 $ 1,344,567 $ 4,347,070 $ 3,930,953

Operating Expenses

Total Operating Expenses

Other (Expense) Income

Total Other Expense, Net

Net Income Per Share Attributable To PACS Group, Inc.³

Weighted-Average Common Shares Outstanding

See accompanying notes to unaudited condensed consolidated financial statements.

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PACS GROUP, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(dollars in thousands, except for share and per share values)

Common Stock Additional Paid-In Capital Retained Earnings Noncontrolling Interest Total

Shares Amount

Net loss attributable to noncontrolling interest — — — — ( 27 ) ( 27 )

Net income attributable to PACS Group, Inc. — — — 80,695 — 80,695

Net loss attributable to noncontrolling interest — — — — ( 21 ) ( 21 )

Net income attributable to PACS Group, Inc. — — — 76,370 — 76,370

Net loss attributable to noncontrolling interest — — — — ( 6 ) ( 6 )

Net income attributable to PACS Group, Inc. — — — 60,818 — 60,818

Balance September 30, 2026 158,723,071 $ 159 $ 686,635 $ 52