
Pediatrix Medical Group Reports First Quarter Results
For the 2025 first quarter, Pediatrix reported the following results:
Net revenue of $458 million;
Net income of $21 million; and
Adjusted EBITDA of $49 million.
'Our strong first quarter results reflect same-unit top-line outperformance versus our expectations, continued steady cost management and the successful results of the portfolio restructuring we completed last year. As a result of our strong first quarter performance, we are raising our full year 2025 Adjusted EBITDA outlook from a range of $215 million to $235 million to a range of $220 million to $240 million, demonstrating our commitment to delivering value for our stakeholders,' said Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group. 'While we are raising our guidance, we remain mindful of the uncertainty that we face in the healthcare industry and the broad economic turbulence that is challenging virtually all companies.'
Operating Results– Three Months Ended March 31, 2025
Pediatrix's net revenue for the three months ended March 31, 2025 was $458.4 million, compared to $495.1 million for the prior-year period. This decrease reflects the impact of non-same unit activity, primarily practice dispositions, partially offset by growth in same-unit net revenue of 6.2 percent.
Same-unit revenue from net reimbursement-related factors increased by 4.6 percent for the 2025 first quarter as compared to the prior-year period. This increase primarily reflects improved payor mix and modest improvements in hospital contract administrative fees. The percentage of services reimbursed by commercial and other non-government payors increased by approximately 120 basis points compared to the prior year period.
Same-unit revenue attributable to patient volume increased by 1.6 percent for the 2025 first quarter as compared to the prior-year period. Shown below are year-over-year percentage changes in certain same-unit volume statistics for the three months ended March 31, 2025. (Note: figures in the below table reflect contributions only to net patient service revenue and exclude other contributions to total same-unit revenue, including contract and administrative fees.)
For the 2025 first quarter, practice salaries and benefits expense was $337.0 million, compared to $369.1 million for the prior-year period. This comparison primarily reflects the impact of practice disposition activity, partially offset by increases in same-unit clinical compensation costs, including incentive compensation based on practice results.
For the 2025 first quarter, general and administrative expenses were $58.6 million, as compared to $60.2 million for the prior-year period. This decrease primarily reflects net staffing reductions, partially offset by increases in certain professional services and information technology expenses.
For 2025 first quarter, transformational and restructuring related expenses were $6.6 million, compared to $8.5 million for the prior-year period. The expenses in both periods were primarily related to position eliminations and revenue cycle management transition activities.
Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization and transformational and restructuring related expenses, was $49.2 million for the 2025 first quarter, compared to $37.2 million for the prior-year period. The increase in Adjusted EBITDA was primarily due to the net favorable impacts from same-unit results and practice disposition activity completed during 2024.
Depreciation and amortization expense was $5.3 million for the first quarter of 2025, compared to $10.3 million for same period in 2024. This comparison was primarily related to a decrease in depreciation expense related to non-same unit activity, primarily practice dispositions.
Interest expense was $9.2 million for the first quarter of 2025, compared to $10.6 million for the first quarter of 2024.
Investment and other income was $4.7 million for the first quarter of 2025, compared to $2.0 million for the prior year period. The increase was primarily related to interest income earned on cash balances.
Pediatrix generated net income of $20.7 million, or $0.24 per diluted share, for the 2025 first quarter, based on a weighted average 85.4 million shares outstanding. This compares with net income of $4.0 million, or $0.05 per diluted share, for the 2024 first quarter, based on a weighted average 83.3 million shares outstanding.
For the first quarter of 2025, Pediatrix reported Adjusted EPS of $0.33, compared to $0.20 for the first quarter of 2024. For these periods, Adjusted EPS is defined as diluted income per common and common equivalent share excluding non-cash amortization expense, stock-based compensation expense, transformational and restructuring related expenses, and discrete tax events.
Financial Position and Cash Flow – Continuing Operations
Pediatrix had cash and cash equivalents of $99.0 million at March 31, 2025, compared to $229.9 million at December 31, 2024, and net accounts receivable at March 31, 2025 were $242.5 million.
For the first quarter of 2025, Pediatrix used cash of $116.1 million to fund continuing operations, compared to a use of $122.6 million during the first quarter of 2024. Pediatrix typically uses cash during the first quarter of each year as it pays incentive compensation, primarily to its affiliated physicians, and makes employee benefit plan matching contributions that were accrued during the prior year. Additionally, during the first quarter of 2025, the Company used $3.3 million to fund capital expenditures.
At March 31, 2025, Pediatrix had total debt outstanding of $611 million, consisting of its $400 million in 5.375% Senior Notes due 2030 and $211 million in borrowings under its Term A Loan. At March 31, 2025, the Company had no outstanding borrowings under its $450 million revolving line of credit.
Updated 2025 Outlook
As a result of the strong first quarter 2025 performance, Pediatrix is raising its full year 2025 outlook for Adjusted EBITDA, as defined above, and now anticipates Adjusted EBITDA will be in a range of $220 million to $240 million.
Non-GAAP Measures
A reconciliation of Adjusted EBITDA and Adjusted EPS to the most directly comparable GAAP measures for the three months ended March 31, 2025 and 2024 is provided in the financial tables of this press release.
Earnings Conference Call
Pediatrix will host an investor conference call to discuss the quarterly results at 9 a.m., ET today. The conference call Webcast may be accessed from the Company's Website, www.pediatrix.com. A replay of the conference call will also be available at www.pediatrix.com.
ABOUT PEDIATRIX MEDICAL GROUP
Pediatrix® Medical Group, Inc. (NYSE:MD) is a leading provider of physician services. Pediatrix-affiliated clinicians are committed to providing coordinated, compassionate and clinically excellent services to women, babies and children across the continuum of care, both in hospital settings and office-based practices. Specialties include obstetrics, maternal-fetal medicine and neonatology complemented by multiple pediatric subspecialties. The group's high-quality, evidence-based care is bolstered by significant investments in research, education, quality-improvement and safety initiatives. The physician-led company was founded in 1979 as a single neonatology practice and today provides its highly specialized and often critical care services through approximately 4,400 affiliated physicians and other clinicians. To learn more about Pediatrix, visit www.pediatrix.com or follow us on Facebook, Instagram, LinkedIn and the Pediatrix blog. Investment information can be found at www.pediatrix.com/investors.
Certain statements and information in this press release may be deemed to contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, 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. Forward-looking statements may include, but are not limited to, statements relating to the Company's objectives, plans and strategies, and all statements, other than statements of historical facts, that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future. These statements are often characterized by terminology such as 'believe,' 'hope,' 'may,' 'anticipate,' 'should,' 'intend,' 'plan,' 'will,' 'expect,' 'estimate,' 'project,' 'positioned,' 'strategy' and similar expressions, and are based on assumptions and assessments made by the Company's management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward-looking statements in this press release are made as of the date hereof, and the Company undertakes no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Important factors that could cause actual results, developments, and business decisions to differ materially from forward-looking statements are described in the Company's most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q, including the sections entitled 'Risk Factors', as well the Company's current reports on Form 8-K, filed with the Securities and Exchange Commission, and include the impact of the Company's practice portfolio management plans and whether the Company is able to achieve the expected favorable impact to Adjusted EBITDA therefrom; the impact of the Company's termination of its then third-party revenue cycle management provider and transition to a hybrid revenue cycle management model with one or more new third-party service providers, including any transition costs associated therewith; the impact of surprise billing legislation; the effects of economic conditions on the Company's business; the effects of the Affordable Care Act and potential healthcare reform; the Company's relationships with government-sponsored or funded healthcare programs, including Medicare and Medicaid, and with managed care organizations and commercial health insurance payors; the Company's ability to comply with the terms of its debt financing arrangements; the impact of management transitions; the timing and contribution of future acquisitions or organic growth initiatives; the effects of share repurchases; and the effects of the Company's transformation initiatives, including its reorientation on, and growth strategy for, its hospital based and maternal fetal businesses.
Pediatrix Medical Group, Inc.
Reconciliation of Net Income to Adjusted EBITDA
(in thousands)
(Unaudited)
Three Months Ended
March 31,
2025
2024
Net income
$
20,737
$
4,035
Interest expense
9,154
10,599
Income tax provision
7,353
3,789
Depreciation and amortization expense
5,332
10,308
Transformational and restructuring related expenses
6,605
8,480
Adjusted EBITDA
$
49,181
$
37,211
Expand
Pediatrix Medical Group, Inc.
Reconciliation of Diluted Net Income per Share
to Adjusted Income per Diluted Share ('Adjusted EPS')
(in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
2025
2024
Weighted average diluted shares outstanding
85,430
83,275
Net income and diluted net income per share
$
20,737
$
0.24
$
4,035
$
0.05
Adjustments (1):
Amortization (net of tax of $430 and $863)
1,290
0.01
2,589
0.03
Stock-based compensation (net of tax of $573 and $716)
1,720
0.02
2,146
0.03
Transformational and restructuring expenses (net of tax of $1,651 and $2,120)
4,954
0.06
6,360
0.08
Net impact from discrete tax events
(175
)
—
1,676
0.01
(1) A blended tax rate of 25% was used to calculate the tax effects of the adjustments for the three months ended March 31, 2025 and 2024.
Expand
Pediatrix Medical Group, Inc.
Balance Sheet Highlights
(in thousands)
(Unaudited)
As of
March 31, 2025
As of
December 31, 2024
Assets:
Cash and cash equivalents
$
98,978
$
229,940
Investments
120,198
118,566
Accounts receivable, net
242,529
259,990
Other current assets
29,965
31,111
Intangible assets, net
10,387
11,595
Operating and finance lease right-of-use assets
39,866
39,267
Goodwill, other assets, property and equipment
1,451,556
1,462,231
Total assets
$
1,993,479
$
2,152,700
Liabilities and shareholders' equity:
Accounts payable and accrued expenses
$
234,173
$
398,690
Total debt, including finance leases, net
612,604
617,664
Operating lease liabilities
42,712
44,649
Other liabilities
314,802
326,759
Total liabilities
1,204,291
1,387,762
Total shareholders' equity
789,188
764,938
Total liabilities and shareholders' equity
$
1,993,479
$
2,152,700
Expand
Pediatrix Medical Group, Inc.
Reconciliation of Net Income to Forward-Looking Adjusted EBITDA
(in thousands)
(Unaudited)
Year Ended
December 31, 2025
Net income
$
106,210
$
120,810
Interest expense
36,870
36,870
Income tax provision
39,280
44,680
Depreciation and amortization expense
26,060
26,060
Transformational and restructuring related expenses
11,580
11,580
Adjusted EBITDA
$
220,000
$
240,000
Expand

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
14 minutes ago
- Yahoo
AM Best Upgrades Credit Ratings of Lincoln Heritage Life Insurance Company
OLDWICK, N.J., July 24, 2025--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to "a" (Excellent) from "a-" (Excellent) of Lincoln Heritage Life Insurance Company (Lincoln Heritage) (Springfield, IL). The outlook of these Credit Ratings (ratings) has been revised to stable from positive. The ratings reflect Lincoln Heritage's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. The upgrading of the ratings for Lincoln Heritage reflects a trend of strong and consistent operating performance, with three consecutive years of record operating, underwriting, and investment earnings. The company's strong operating performance is further evidenced in the return on equity ratios, which exceed 20% on a one-, three- and five-year basis. This trend of improved operating performance began in 2022, when the company reported strong underwriting gains mainly driven by a significant decline in death claims. This trend of underwriting income continued through 2024, and continues through first-quarter 2025, as claims trends have moderated over time post the COVID-19 pandemic. Investment income has also increased significantly in recent years, largely driven by growth in invested assets and an improvement in investment yield from the investment portfolio. Lincoln Heritage's strong operating results have been accretive to the balance sheet, with risk-adjusted capital and liquidity metrics improving as its capital has accumulated over the long term. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on


Business Wire
15 minutes ago
- Business Wire
Files.com Acquires ExpanDrive, Launches Free Version to Expand Multi-Cloud Access
TEMPE, Ariz.--(BUSINESS WIRE)-- the leading platform for secure and automated file transfer, today announced its acquisition of ExpanDrive, a desktop application for accessing cloud and remote storage as local drives. As part of the acquisition, ExpanDrive is now free for personal use under a new freemium pricing model. Bringing Remote Storage to the Desktop ExpanDrive enables users to mount cloud platforms and remote servers – including SFTP, Amazon S3, Google Drive, and Dropbox – directly into their native file explorers on macOS, Windows, and Linux, without syncing or separate transfers. 'ExpanDrive offers a beautifully simple way to access remote storage right from your desktop,' said Kevin Bombino, CEO of 'We're thrilled to make it free for personal use, helping more people experience frictionless file access.' Freemium Model Now Live ExpanDrive is now: Free for individuals and small teams (under 10 users annually) Paid for larger teams and enterprises, unlocking features like the Web Console, Server Edition, and premium support Strengthening the Ecosystem ExpanDrive's technology and user experience will help shape future innovations across the platform – reinforcing its mission to unify secure file access, automation, and management at any scale. About ExpanDrive Founded in 2004, ExpanDrive allows users to mount cloud and remote storage as local drives across operating systems, simplifying access to services like SFTP, S3, Google Drive, Dropbox, and more. About is the secure file platform for automation, compliance, and scale, trusted by over 4,000 organizations. It enables teams to manage, transfer, and integrate files across systems with enterprise-grade security, direct cloud integrations, and powerful automation.


Business Wire
15 minutes ago
- Business Wire
DesignLinx Named AMD Embedded Premier Partner of the Year for the Americas
NASHUA, N.H.--(BUSINESS WIRE)--DesignLinx received the AMD Embedded Partner Program Premier Partner of the Year Award for the Americas on June 17, 2025 at the annual AMD Embedded Partner Summit in San Jose, CA. DesignLinx co-founders, Don and Patty were on hand to receive the award from AMD, marking DesignLinx's outstanding achievements in 2024. "A long-time partner, DesignLinx was instrumental in driving tangible success for AMD customers in 2024, directly contributing to new business and faster revenue across a broad range of key markets. In addition, DesignLinx created QuickStart®, a flexible suite of services that demonstrate a commitment to meeting diverse customer needs, further solidifying their role as a long-term, broadly engaged, and indispensable partner,' said Donna Best, Program Manager, Partner Ecosystem, Adaptive and Embedded Computing Group at AMD. DesignLinx provides advanced AMD FPGA and embedded software design services to a diverse client base, including several key AMD customers. Combining sound design methodology and engineering expertise with responsive, in-depth support services (QuickStart), DesignLinx helps clients reduce time-to-market, mitigate development risks, and lower costs. 'At DesignLinx, we provide innovative design services for AMD-based projects of all sizes, including large-scale endeavors that require even the most stringent security,' said Don Founder and President at DesignLinx. 'Our commitment to client success extends past individual projects—we become a trusted extension of our clients' engineering team. To that end, we created DesignLinx QuickStart to support clients whenever they need assistance with AMD technology.' DesignLinx QuickStart features Xpert-on-Demand™ for access to senior engineers whenever assistance is needed, Board-on-Demand™ to test and validate code on popular AMD boards virtually, and customized Learning Workshops to help teams master AMD products and tools. 'We are deeply honored to receive the AMD Premier Partner of the Year award for 2024. Our long-standing relationship with AMD—coupled with our team's countless hours of work on AMD technology-based projects—make this recognition especially meaningful,' said Patty Founder and VP of Business Operations at DesignLinx. About DesignLinx Specializing in FPGA design services and support, DesignLinx Hardware Solutions was founded in 2009. DesignLinx helps clients reduce time-to-market, mitigate development risks, and lower costs by bringing specialized knowledge, skills, and robust support to every engagement. Driven by innovation and quality of service, DesignLinx prides itself on creative thinking, quick problem solving, and an engineering staff whose experience, skill set, and expertise are unmatched. To learn more, visit the DesignLinx website. AMD, the AMD logo and combinations thereof are trademarks of Advanced Micro Devices, Inc. The DesignLinx logo, Board-on-Demand, and Xpert-on-Demand are trademarks of DesignLinx Hardware Solutions. QuickStart is a registered trademark of DesignLinx Hardware Solutions. Expand