CYH earnings analysis
What we found in CYH's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Community Health Systems reported Q1 2026 net operating revenues of $2,965 million, down $194 million versus $3,159 million in Q1 2025. Income from operations was essentially flat at $281 million (vs. $284 million), but net loss attributable to stockholders widened to $58 million (diluted EPS $(0.43) vs $(0.10)). Operating cash flow was a use of $(297) million, largely offset by $1,108 million of proceeds from dispositions that increased cash and cash equivalents to $712 million at March 31, 2026. The company recorded a net gain on sales/impairments of approximately $90 million (gain ~$230M offset by impairments ~$88M and $52M) and noted the potential for additional impairment charges going forward.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Dispositions generated large investing proceeds
- Proceeds from disposition of hospitals and other ancillary operations were $1,108 million, producing net cash provided by investing activities of $1,023 million for the quarter.
- Cash balance materially improved
- Cash and cash equivalents increased to $712 million at March 31, 2026 from $260 million at December 31, 2025.
- Operating profitability essentially unchanged
- Income from operations was $281 million in Q1 2026 compared with $284 million in Q1 2025 (down $3 million).
- Net gain on disposals after impairments
- The company recorded a net gain of approximately $90 million in the quarter comprised of a gain of approximately $230 million on a divestiture offset by an approximately $88 million net impairment and a $52 million impairment recorded on a held-for-sale hospital.
- Debt modestly reduced
- Long-term debt declined to $10,127 million at March 31, 2026 from $10,380 million at December 31, 2025, and the company reported repayments of long-term indebtedness of $351 million in the quarter.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Revenue decline year-over-year
- Net operating revenues declined to $2,965 million in Q1 2026 from $3,159 million in Q1 2025, a decrease of $194 million.
- Widening loss to equity holders
- Net loss attributable to Community Health Systems, Inc. stockholders increased to $(58) million in Q1 2026 from $(13) million in Q1 2025; diluted loss per share was $(0.43) versus $(0.10).
- Operating cash burn in the quarter
- Net cash used in operating activities was $(297) million in Q1 2026 compared with net cash provided by operating activities of $120 million in Q1 2025.
- Significant increase in accrued liabilities–other
- Accrued liabilities — other rose to $955 million at March 31, 2026 from $433 million at December 31, 2025 (increase of $522 million), indicating large short-term obligations recorded in the quarter.
- Impairment risk remains
- The company allocated approximately $284 million of goodwill to disposal groups and recorded impairments of approximately $88 million and $52 million during the quarter and cautioned that "additional impairment charges may be recorded in the future."
- High interest costs and sizable leverage
- Interest expense, net was $213 million for the quarter and cash interest payments were $261 million, while long-term debt remains $10,127 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.43
- Operating margin
- 9.48%
What they said about what is next.
This 10-Q contains no quantitative forward-looking guidance. Management discloses disposition activity and states it "will continue to evaluate" potential sales and that additional impairment charges "may be recorded in the future." (No numeric FY-2026 guidance is presented in this filing.)
The filing reads worse than the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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