Pennant Group, Inc.PNTG
Pennant Group, Inc. Segments Disclosure
BUSINESS SEGMENTS
The Company classifies its operations into the following reportable operating segments: (1) home health and hospice services, which includes the Company’s home health, hospice, home care, and geriatric primary and palliative care businesses; and (2) senior living services, which includes the operation of assisted living, independent living and memory care communities. The reporting segments are business units that offer different services and are managed separately to provide greater visibility into those operations. The Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (“CODM”), reviews financial information at the operating segment level.
As of December 31, 2025, the Company provided services through 172 affiliated home health, hospice and home care agencies, and 63 affiliated senior living operations. The Company evaluates performance and allocates capital resources to each segment based on an operating model that is designed to maximize the quality of care provided and profitability. The Company’s Service Center provides various services to all lines of business. The CODM does not review assets by segment and therefore assets and capital expenditure by segment are not disclosed below.
The CODM uses Segment Adjusted EBITDAR from Operations as the primary measure of profit and loss for the Company's reportable segments and to compare the performance of its operations with those of its competitors. The CODM monitors these results and provides guidance to leadership of the reportable segments to allocate enterprise-wide resources. Segment Adjusted EBITDAR from Operations is net income attributable to the Company's reportable segments excluding interest expense, provision for income taxes, depreciation and amortization expense, rent, unallocated corporate and
administrative expenses, and, in order to view the operations’ performance on a comparable basis from period to period, certain adjustments including: (1) activities associated with start-up operations, (2) share-based compensation expense, (3) acquisition related costs, (4) activities associated with transitioning operations, (5) transition services costs, (6) unusual, non-recurring, or redundant charges, and (7) net income attributable to noncontrolling interest. “All Other” consists of revenues generated at operating locations not included in the segment financial information reviewed by the CODM. Revenue included in the “All Other” category is insignificant individually, and therefore does not constitute a reportable segment. General and administrative expenses are not allocated to the reportable segments, and are included as “Unallocated corporate expenses”, accordingly the segment earnings measure reported is before allocation of corporate general and administrative expenses. The Company's segment measures may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
The following table presents certain financial information regarding the Company’s reportable segments, provided that general and administrative expenses are not allocated to the reportable segments.
| Home Health and Hospice Services | Senior Living Services | All Other | Total | |||||||||||||||||||||||
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||
| Segment Revenue | $ | 731,392 | $ | 210,078 | $ | 6,235 | $ | 947,705 | ||||||||||||||||||
| Segment Cost of Services | 610,561 | 149,553 | ||||||||||||||||||||||||
| Segment Adjusted EBITDAR from Operations | $ | 120,831 | $ | 60,525 | $ | 181,356 | ||||||||||||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||
| Segment Revenue | $ | 515,344 | $ | 174,767 | $ | 5,129 | $ | 695,240 | ||||||||||||||||||
| Segment Cost of Services | 427,635 | 123,107 | ||||||||||||||||||||||||
| Segment Adjusted EBITDAR from Operations | $ | 87,709 | $ | 51,660 | $ | 139,369 | ||||||||||||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||
| Segment Revenue | $ | 385,652 | $ | 148,198 | $ | 11,041 | $ | 544,891 | ||||||||||||||||||
| Segment Cost of Services | 320,046 | 102,904 | ||||||||||||||||||||||||
| Segment Adjusted EBITDAR from Operations | $ | 65,606 | $ | 45,294 | $ | 110,900 | ||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Segment Adjusted EBITDAR from Operations | $ | 181,356 | $ | 139,369 | $ | 110,900 | |||||||||||
| Less: Unallocated corporate expenses | 60,455 | 43,587 | 31,704 | ||||||||||||||
| Less: Depreciation and amortization | 8,538 | 6,119 | 5,130 | ||||||||||||||
| Rent—cost of services | 48,700 | 43,029 | 39,759 | ||||||||||||||
| Other income | 422 | 207 | 339 | ||||||||||||||
| Adjustments to Segment EBITDAR from Operations: | |||||||||||||||||
Less: Start-up operations (a) | 182 | 137 | 102 | ||||||||||||||
Share-based compensation expense(b) | 9,036 | 8,242 | 5,565 | ||||||||||||||
Acquisition related costs(c) | 6,587 | 1,278 | 476 | ||||||||||||||
Activities associated with transitioning operations(d) | (880) | (570) | 612 | ||||||||||||||
Transition services costs(e) | 503 | — | — | ||||||||||||||
Unusual, non-recurring, or redundant charges(f) | 113 | 1,004 | 2,575 | ||||||||||||||
| Add: Net income attributable to noncontrolling interest | 4,186 | 1,780 | 531 | ||||||||||||||
| Income from operations | $ | 51,886 | $ | 38,116 | $ | 25,169 | |||||||||||
| (a) | Represents results related to start-up operations. This amount excludes rent and depreciation and amortization expense related to such operations. | |||||||
| (b) | Share-based compensation expense and related payroll taxes incurred. Share-based compensation expense and related payroll taxes are included in cost of services and general and administrative expense. | |||||||
| (c) | Non-capitalizable costs associated with acquisitions and write-offs for amounts in dispute with the prior owners of certain acquired operations. | |||||||
| (d) | During the year ended December 31, 2023, an affiliate of the Company placed its memory care units into transition and is converting the facility into an assisted living community. We received insurance proceeds related to the property in 2024 and 2025 which were recorded in gain on disposition of property and equipment, net on the consolidated statements of income. The amounts reported exclude rent and depreciation and amortization expense related to such operations. | |||||||
| (e) | Costs identified as redundant or non-recurring incurred by the Company as a result of the transition services agreement between the Company and UnitedHealth entered into as part of the acquisition agreement. All amounts are included in Cost of services. Fees incurred under the transition services agreement were $3,001 for the year ended December 31, 2025. | |||||||
| (f) | Represents unusual, non-recurring, or redundant charges for legal services, implementation costs, integration costs, and consulting fees in general and administrative and cost of services expenses. | |||||||
| Adjusted segment depreciation expense | Home Health and Hospice Services | Senior Living Services | ||||||||||||
| Year Ended December 31, 2025 | $ | 1,066 | $ | 4,740 | ||||||||||
| Year Ended December 31, 2024 | $ | 870 | $ | 4,107 | ||||||||||
| Year Ended December 31, 2023 | $ | 1,208 | $ | 3,452 | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Mar 4, 2020 | |
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.