10-Q · May 5, 2026
Pediatrix Medical Group, Inc. reported a revenue increase of 3.9% year-over-year for Q1 2026, totaling $476.2 million, driven by improved collection activity and acquisitions. Net income rose substantially to $29.6…
Earnings analysis · 10-Q
MD earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Pediatrix delivered $487.8 million of Q2 revenue, up 4.0% year over year and above the $477.9 million consensus estimate, with GAAP EPS of $0.49 and adjusted EPS of $0.63. The earnings trend improved…
Read full summary
Pediatrix delivered $487.8 million of Q2 revenue, up 4.0% year over year and above the $477.9 million consensus estimate, with GAAP EPS of $0.49 and adjusted EPS of $0.63. The earnings trend improved sequentially—revenue rose $11.8 million and operating margin improved to 11.7% from 8.8% in Q1—but operating margin remained 110 basis points below the prior-year quarter as clinical, malpractice, executive-transition, and restructuring costs rose. Reimbursement and acquisition contributions offset falling patient volumes, while the principal financial offset was a shift to $3.2 million of operating cash outflow in the first half and a $146.0 million reduction in working capital.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.49
- Operating margin
- 11.7%
What stood out
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Revenue grew 4.0% year over year
Q2 net revenue was $487.8 million, up $19.0 million (4.0%) year over year from $468.8 million and up $11.8 million (2.5%) sequentially from $476.0 million in Q1 2026. Same-unit revenue increased $8.5 million (1.9%), while acquisitions net of dispositions supplied the remaining growth.
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EPS increased year over year and sequentially
GAAP diluted EPS rose to $0.49 from $0.46 a year earlier and $0.36 in Q1 2026. Adjusted EPS increased to $0.63 from $0.53, while the diluted share count fell to 81.4 million from 85.5 million.
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Adjusted EBITDA expanded despite cost pressure
Adjusted EBITDA increased $3.2 million to $76.4 million from $73.2 million in Q2 2025. Reimbursement, collections, payor mix, and neonatal acuity contributed $18.1 million (4.0%) of same-unit revenue improvement.
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Margins recovered sequentially but lagged prior year
Operating margin was 11.7%, down 1.1 percentage points from 12.8% a year ago but up 2.9 percentage points from 8.8% in Q1 2026. Excluding restructuring costs, operating margin was 13.4%, versus 13.6% a year earlier.
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Receivables collection efficiency improved
Collections improved: DSO declined to 42.5 days at June 30, 2026 from 42.8 days at December 31, 2025 and 46.4 days a year earlier.
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Share repurchases reduced share count
The company repurchased $64.2 million of stock in the first six months of 2026; $104.5 million remained under the $250.0 million August 2025 authorization after $145.5 million of purchases through June 30.
What to watch
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Patient volumes remain a growth headwind
Patient-service volumes reduced same-unit revenue by $9.6 million (2.1%) in Q2, primarily in neonatology, partially offsetting the $18.1 million reimbursement-related benefit. For the first six months, volume declines reduced same-unit revenue by $16.9 million (1.9%) across all service lines.
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Working-capital needs turned cash flow negative
Cash used in operating activities was $3.2 million in the first six months, versus $22.0 million generated a year earlier; after $7.6 million of capex, calculated free cash flow was negative $10.8 million. Cash declined to $288.9 million from $375.2 million at year-end.
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2027 loan maturity and debt exposure
Working capital fell $146.0 million to $158.6 million because the Term A Loan becomes current ahead of its February 2027 maturity. The company had $184.4 million outstanding on that loan and $400.0 million of 2030 Notes at June 30, 2026; a 1% interest-rate change affects pretax income by about $1.8 million annually.
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No formal risk update; reimbursement risk persists
Item 1A states there were no material changes to risks disclosed in the 2025 Form 10-K. However, CMS's July 2026 proposed 2027 physician fee schedule would reduce the Medicare conversion factor by 1.19%, while the Congressional Budget Office estimated the One Big Beautiful Bill Act could reduce Medicaid and CHIP spending by $900 billion through 2034.
Management's outlook
The 10-Q provides no numeric revenue or EPS outlook. Management said it anticipates that operating cash generation and current cash will fund working capital, acquisitions, capital expenditures, restructuring costs, repurchases, and contractual obligations for at least the next 12 months.
Earlier filings 4
10-K · February 19, 2026
Pediatrix (MD) remains a large, hospital-focused provider of neonatal, maternal-fetal and pediatric subspecialty physician services with a national network of approximately 2,295 affiliated physicians and operating…
10-Q · August 5, 2025
Pediatrix reported Q2 net revenue of $468.8M (three months ended June 30, 2025) down from $504.3M a year ago, but delivered a sharp operating turn as income from operations was $59.9M versus an operating loss of $157.7M…
10-Q · May 6, 2025
Pediatrix reported Q1 net revenue of $458,359 (as reported in the filing) versus $495,101 in the prior-year quarter, a decline, but delivered materially higher operating profit and net income. Income from operations…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.