ENSIGN GROUP, INCENSG
ENSIGN GROUP, INC Segments Disclosure
BUSINESS SEGMENTS
(1) Medicaid payor includes revenue generated from senior living operations.
The Company has two reportable segments: (1) skilled services, which includes the operation of skilled nursing facilities and rehabilitation therapy services and (2) Standard Bearer, which is comprised of selected real estate properties owned by Standard Bearer and leased to skilled nursing and senior living operators.
As of December 31, 2025, the skilled services segment includes 326 skilled nursing and 31 campus operations that provide both skilled nursing and rehabilitative care services and senior living services. The Company's Standard Bearer segment consists of 152 owned real estate properties.
The Company also reports an “All Other” category that includes results from its senior living operations, which includes 16 stand-alone senior living operations and the senior living operations at 31 campus operations that provide both skilled nursing and rehabilitative care services and senior living services. In addition, the "All Other" category includes mobile diagnostics, medical transportation, other real estate, other ancillary operations and the Service Center. Services included in the “All Other” category are insignificant individually and therefore do not constitute a reportable segment.
The Company’s reportable segments are significant operating segments that offer differentiated services. The segment structure reflects the Company's current operational and financial management and provides the best structure to maximize the quality of care and investment strategy provided, while maintaining financial discipline.
Segment income is defined as income before provision for income taxes, excluding gain or loss from sale of real estate, real estate insurance recoveries and impairment of long-lived assets. The Company's chief operating decision maker or CODM, who is the Chief Executive Officer, reviews segment income for each operating segment to evaluate performance and allocate capital resources. The CODM uses segment income to analyze actual results as part of operational planning and to decide whether to reinvest profits into the segments or into other parts of the Company, such as through acquisitions, to pay dividends or to recommend a stock repurchase program. The Company's CODM does not review assets by segment in his resource allocation and therefore assets by segment are not disclosed below.
Intercompany revenue is eliminated in consolidation, along with corresponding intercompany expenses. Included in segment income for Standard Bearer is expense for intercompany services provided by the Service Center as described in Note 6, Standard Bearer, as it is part of the CODM financial information.
The following tables set forth financial information for the segments:
| Year Ended December 31, 2025 | ||||||||||||||||||||
| Skilled Services | Standard Bearer | Total | ||||||||||||||||||
Service revenue(1) | $ | 4,837,809 | $ | — | $ | 4,837,809 | ||||||||||||||
Rental revenue | — | 126,930 | 126,930 | |||||||||||||||||
Segment revenue | $ | 4,837,809 | $ | 126,930 | $ | 4,964,739 | ||||||||||||||
Reconciliation of revenue: | ||||||||||||||||||||
All other revenue(2) | 232,846 | |||||||||||||||||||
Elimination of intercompany revenue(3) | (139,744) | |||||||||||||||||||
TOTAL CONSOLIDATED REVENUE | $ | 5,057,841 | ||||||||||||||||||
Less: | ||||||||||||||||||||
Other segment items(4) | 4,165,591 | 11,210 | ||||||||||||||||||
| Depreciation and amortization | 55,821 | 37,599 | ||||||||||||||||||
Interest expense(5) | — | 40,498 | ||||||||||||||||||
Segment income | $ | 616,397 | $ | 37,623 | $ | 654,020 | ||||||||||||||
Reconciliation of profit or loss: | ||||||||||||||||||||
All other not included in segment income | (198,398) | |||||||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | $ | 455,622 | ||||||||||||||||||
(1) Skilled services service revenue does not include intercompany service revenue generated by ancillary operations provided to the Company's independent subsidiaries and management service revenue generated by the Service Center with Standard Bearer. Intercompany service revenue is eliminated in "Elimination of intercompany revenue".
(2) All other revenue includes $220,364 of service revenue and $12,482 of rental revenue for the year ended December 31, 2025, both of which include intercompany revenue that is eliminated in "Elimination of intercompany revenue".
(3) Elimination of intercompany revenue includes the elimination of intercompany rental revenue of $113,689 and intercompany service revenue of $26,055 for the year ended December 31, 2025.
(4) Other segment items include cost of services of $3,846,828 and rent expense of $318,763 for the skilled services segment, and cost of services of $2,133, rent expense of $1,057 and general and administrative expenses of $8,020 for the Standard Bearer segment. Additionally, there are intercompany expenses of $139,744 during the year ended December 31, 2025, which are eliminated in consolidation.
(5) Included in interest expense in Standard Bearer is interest from intercompany debt arrangements between Standard Bearer and The Ensign Group, Inc. of $35,058 during the year ended December 31, 2025, which is eliminated in consolidation.
| Year Ended December 31, 2024 | ||||||||||||||||||||
| Skilled Services | Standard Bearer | Total | ||||||||||||||||||
Service revenue(1) | $ | 4,076,825 | $ | — | $ | 4,076,825 | ||||||||||||||
Rental revenue | — | 95,086 | 95,086 | |||||||||||||||||
Segment revenue | $ | 4,076,825 | $ | 95,086 | $ | 4,171,911 | ||||||||||||||
Reconciliation of revenue: | ||||||||||||||||||||
All other revenue(2) | 192,881 | |||||||||||||||||||
Elimination of intercompany revenue(3) | (104,307) | |||||||||||||||||||
TOTAL CONSOLIDATED REVENUE | $ | 4,260,485 | ||||||||||||||||||
Less: | ||||||||||||||||||||
Other segment items(4) | 3,513,167 | 9,152 | ||||||||||||||||||
| Depreciation and amortization | 45,195 | 29,297 | ||||||||||||||||||
Interest expense(5) | — | 27,302 | ||||||||||||||||||
| Segment income | $ | 518,463 | $ | 29,335 | $ | 547,798 | ||||||||||||||
Reconciliation of profit or loss: | ||||||||||||||||||||
All other not included in segment income | (161,704) | |||||||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | $ | 386,094 | ||||||||||||||||||
(1) Skilled services service revenue does not include intercompany service revenue generated by ancillary operations provided to the Company's independent subsidiaries and management service revenue generated by the Service Center with Standard Bearer. Intercompany service revenue is eliminated in "Elimination of intercompany revenue".
(2) All Other revenue includes $181,066 of service revenue and $11,815 of rental revenue for the year ended December 31, 2024, both of which include intercompany revenue that is eliminated in "Elimination of intercompany revenue".
(3) Elimination of intercompany revenue includes the elimination intercompany rental revenue of $83,941 and intercompany service revenue of $20,366 for the year ended December 31, 2024.
(4) Other segment items include cost of services of $3,242,737 and rent expense of $270,430 for the skilled services segment, and cost of services of $2,265, rent expense of $983 and general and administrative expenses of $5,904 for the Standard Bearer segment. Additionally, there are intercompany expenses of $104,307 during the year ended December 31, 2024, which are eliminated in consolidation.
(5) Included in interest expense in Standard Bearer is interest from intercompany debt arrangements between Standard Bearer and The Ensign Group, Inc. of $20,285 during the year ended December 31, 2024, which is eliminated in consolidation.
Year Ended December 31, 2023 | ||||||||||||||||||||
| Skilled Services | Standard Bearer | Total | ||||||||||||||||||
Service revenue(1) | $ | 3,578,855 | $ | — | $ | 3,578,855 | ||||||||||||||
Rental revenue | — | 82,486 | 82,486 | |||||||||||||||||
Segment revenue | $ | 3,578,855 | $ | 82,486 | $ | 3,661,341 | ||||||||||||||
Reconciliation of revenue: | ||||||||||||||||||||
All other revenue(2) | 155,804 | |||||||||||||||||||
Elimination of intercompany revenue(3) | (87,790) | |||||||||||||||||||
TOTAL CONSOLIDATED REVENUE | $ | 3,729,355 | ||||||||||||||||||
Less: | ||||||||||||||||||||
Other segment items(4) | 3,075,164 | 8,455 | ||||||||||||||||||
| Depreciation and amortization | 38,766 | 25,205 | ||||||||||||||||||
Interest expense(5) | — | 19,761 | ||||||||||||||||||
| Segment income | $ | 464,925 | $ | 29,065 | $ | 493,990 | ||||||||||||||
Reconciliation of profit or loss: | ||||||||||||||||||||
All other not included in segment income | (221,228) | |||||||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | $ | 272,762 | ||||||||||||||||||
(1) Skilled services service revenue does not include intercompany service revenue generated by ancillary operations provided to the Company's independent subsidiaries and management service revenue generated by the Service Center with Standard Bearer. Intercompany service revenue is eliminated in "Elimination of intercompany revenue".
(2) All Other revenue includes $144,667 of service revenue and $11,137 of rental revenue for the year ended December 31, 2023, both of which include intercompany revenue that is eliminated in "Elimination of intercompany revenue".
(3) Elimination of intercompany revenue includes the elimination of intercompany rental revenue of $72,339 and intercompany service revenue of $15,451 for the year ended December 31, 2023.
(4) Other segment items includes cost of services of $2,832,012 and rent expense of $243,152 for the skilled services segment, and cost of services of $2,104, rent expense of $954 and general and administrative expenses of $5,397 for the Standard Bearer segment. Additionally, there are intercompany expenses of $87,790 during the year ended December 31, 2023, which are eliminated in consolidation.
(5) Included in interest expense in Standard Bearer is interest from intercompany debt arrangements between Standard Bearer and The Ensign Group, Inc. of $12,902 during the year ended December 31, 2023, which is eliminated in consolidation.
Service revenue by major payor source were as follows:
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||
| Skilled Services | All Other (3) | Total Service Revenue | Revenue % | |||||||||||||||||||||||
Medicaid(1) | $ | 1,952,142 | $ | 49,865 | $ | 2,002,007 | 39.8 | % | ||||||||||||||||||
| Medicare | 1,194,554 | — | 1,194,554 | 23.7 | ||||||||||||||||||||||
Medicaid-skilled | 301,122 | — | 301,122 | 6.0 | ||||||||||||||||||||||
Total Medicaid and Medicare | $ | 3,447,818 | $ | 49,865 | $ | 3,497,683 | 69.5 | % | ||||||||||||||||||
| Managed care | 944,316 | — | 944,316 | 18.8 | ||||||||||||||||||||||
Private and other(2) | 445,675 | 144,444 | 590,119 | 11.7 | ||||||||||||||||||||||
| TOTAL SERVICE REVENUE | $ | 4,837,809 | $ | 194,309 | $ | 5,032,118 | 100.0 | % | ||||||||||||||||||
(2) Private and other includes revenue for skilled services (private, Veteran Affairs and hospice payors), senior living and ancillary operations.
(3) All Other incorporates intercompany eliminations.
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||
| Skilled Services | All Other (3) | Total Service Revenue | Revenue % | |||||||||||||||||||||||
Medicaid(1) | $ | 1,646,422 | $ | 35,922 | $ | 1,682,344 | 39.7 | % | ||||||||||||||||||
| Medicare | 1,055,226 | — | 1,055,226 | 24.9 | ||||||||||||||||||||||
Medicaid-skilled | 266,738 | — | 266,738 | 6.3 | ||||||||||||||||||||||
Total Medicaid and Medicare | $ | 2,968,386 | $ | 35,922 | $ | 3,004,308 | 70.9 | % | ||||||||||||||||||
| Managed care | 789,643 | — | 789,643 | 18.6 | ||||||||||||||||||||||
Private and other(2) | 318,796 | 124,778 | 443,574 | 10.5 | ||||||||||||||||||||||
| TOTAL SERVICE REVENUE | $ | 4,076,825 | $ | 160,700 | $ | 4,237,525 | 100.0 | % | ||||||||||||||||||
(1) Medicaid payor includes revenue generated from senior living operations.
(2) Private and other includes revenue for skilled services (private, Veteran Affairs and hospice payors), senior living and ancillary operations.
(3) All Other incorporates intercompany eliminations.
Year Ended December 31, 2023 | ||||||||||||||||||||||||||
| Skilled Services | All Other (3) | Total Service Revenue | Revenue % | |||||||||||||||||||||||
Medicaid(1) | $ | 1,429,473 | $ | 29,976 | $ | 1,459,449 | 39.4 | % | ||||||||||||||||||
| Medicare | 985,749 | — | 985,749 | 26.6 | ||||||||||||||||||||||
Medicaid-skilled | 245,663 | — | 245,663 | 6.6 | ||||||||||||||||||||||
Total Medicaid and Medicare | 2,660,885 | 29,976 | 2,690,861 | 72.6 | ||||||||||||||||||||||
| Managed care | 666,129 | — | 666,129 | 18.0 | ||||||||||||||||||||||
Private and other(2) | 251,841 | 99,240 | 351,081 | 9.4 | ||||||||||||||||||||||
| TOTAL SERVICE REVENUE | $ | 3,578,855 | $ | 129,216 | $ | 3,708,071 | 100.0 | % | ||||||||||||||||||
(1) Medicaid payor includes revenue generated from senior living operations.
(2) Private and other includes revenue for skilled services (private, Veteran Affairs and hospice payors), senior living and ancillary operations.
(3) All Other incorporates intercompany eliminations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 4, 2026 | Showing above |
| 2024 | Feb 5, 2025 | |
| 2023 | Feb 1, 2024 | |
| 2022 | Feb 2, 2023 | |
| 2021 | Feb 9, 2022 | |
| 2020 | Feb 3, 2021 | |
| 2019 | Feb 5, 2020 | |
| 2018 | Feb 6, 2019 | |
| 2017 | Feb 8, 2018 | |
| 2016 | Feb 8, 2017 | |
| 2015 | Feb 10, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.