Ardent Health — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue increased 3.1% year-over-year to $1.625 billion for the quarter ended September 30, 2026.
• Net income attributable to Ardent Health was $45 million ($0.31 per diluted share), compared to a net loss of $23 million ($0.17 per diluted share) in the prior year period.
• Adjusted EBITDA was $138 million, with an Adjusted EBITDA margin of 8.5% for the quarter, up from 2.9% in the prior year period.
• Adjusted EBITDAR was $180 million for the quarter.
• Operating cash flow for the quarter was $122 million; year-to-date operating cash flow was $258 million, a 5% increase from $247 million in the same prior year period.
• Net patient service revenue per adjusted admission was $17,370, a 0.7% increase year-over-year.
• Salaries and benefits as a percentage of total revenue decreased to 39.9% in the quarter from 42.9% in the prior year period.

Guidance and Future Outlook:

• Reaffirmed full-year 2026 Total Revenue guidance of $6,400 million to $6,700 million.
• Raised full-year 2026 Adjusted EBITDA guidance midpoint to $500 million–$535 million from $485 million–$535 million.
• Revised full-year 2026 Net Income guidance to $132 million–$167 million from $110 million–$163 million.
• Revised full-year 2026 Diluted EPS guidance to $0.93–$1.18 from $0.78–$1.15.
• Revised full-year 2026 Capital Expenditures guidance to $210 million–$250 million from $225 million–$265 million.
• Maintained full-year 2026 Adjusted Admissions growth guidance of 1.5% to 2.5%.
• Management expects IMPACT initiatives to achieve at least $70 million of savings for the year.

Business Segments and Product Lines:

• Adjusted admissions grew 2.9% year-over-year, accelerating from 2.5% growth in the second quarter of 2026.
• Total admissions increased 0.1% year-over-year, improving from a 1.0% decline in the second quarter.
• Total surgeries decreased 1.9% year-over-year, an improvement from a 2.9% decline in the second quarter; inpatient surgeries fell 5.0% and outpatient surgeries fell 0.6%.
• Emergency room visits increased 1.7% year-over-year, accelerating from 0.2% growth in the second quarter.
• Total encounters increased 3.2% year-over-year for the quarter.
• The Company operates 30 acute care hospitals with 4,281 licensed beds.

Market and Competitive Landscape:

• The Company operates in growing mid-sized urban communities across six states.
• Management noted the highly competitive nature of the healthcare industry and trends toward clinical transparency and value-based purchasing.
• The Company faces risks related to reimbursement rates from commercial payors and potential changes in Medicare/Medicaid programs.

Risks and Challenges:

• Risks include general economic conditions, inflationary pressures, and geopolitical instability.
• Potential reductions in Medicare, Medicaid, or commercial reimbursement rates could adversely affect revenues.
• Challenges include recruiting and retaining quality physicians and nurses, and increased labor costs.
• The Company is heavily concentrated in Texas and Oklahoma, making it sensitive to state-specific regulatory and economic conditions.
• Risks associated with the Master Lease with Ventas and significant indebtedness ($1.1 billion total debt).
• Potential impacts from the One Big Beautiful Bill Act (OBBBA) and other healthcare policy reforms.

Management Commentary and Tone:

• Dave Caspers, President and CEO, stated the company delivered strong results highlighted by adjusted EBITDA of $138 million, a 4% reduction in SWB expense, and 2.9% adjusted admissions growth.
• Management expressed confidence in the trajectory of the business and ability to execute on opportunities ahead.
• Caspers noted disciplined execution with volumes improving sequentially and continued progress on operating priorities.
• Management emphasized a focus on disciplined portfolio management and strategic capital deployment prioritizing organic investments and M&A.

Other Key Points:

• Entered into a definitive agreement to transition full ownership of a Kansas hospital to a joint venture partner to enhance margins and redeploy capital.
• Board of Directors authorized a $25 million increase to the share repurchase program; approximately $48 million remained available as of September 30, 2026.
• Repurchased 1.0 million shares of common stock for $11 million during the third quarter.
• As of September 30, 2026, the Company held $766 million in cash and cash equivalents and $1.1 billion in total debt.
• Lease-adjusted net leverage ratio was 2.5x; net leverage ratio was 0.8x.
• Available liquidity was $1 billion at the end of the third quarter.
• Enterprise restructuring costs were $5.4 million for the quarter and $32.2 million year-to-date.
• Enterprise resource planning system conversion costs were $5.9 million for the quarter and $11.7 million year-to-date.
• The Company recognized a $1.0 million gain related to the release of an accrual for expected litigation costs related to the 2023 Cybersecurity Incident.