MD

It has been about a month since the last earnings report for Pediatrix Medical Group (MD). Shares have added about 3.4% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Pediatrix Medical Group due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Pediatrix Medical Group, Inc. before we dive into how investors and analysts have reacted as of late. Pediatrix Medical Tops Q2 Earnings on Better Cash Collections Pediatrix Medical reported second-quarter 2026 adjusted earnings per share (EPS) of 63 cents, which beat the Zacks Consensus Estimate by 10.5%. The bottom line increased 18.9% year over year. Net revenues increased 4.1% year over year to $487.8 million. The top line surpassed the Zacks Consensus Estimate by 2.2%. The strong performance was driven by improved cash collection activity and a favorable payor mix, along with contributions from recent acquisitions. However, these gains were partly offset by lower patient volumes and higher operating costs. Same-unit revenues increased 1.9% year over year, which beat our growth estimate of 0.4%. Same-unit revenues from patient service volumes declined 2.1% year over year. Same-unit revenues from net reimbursement-related factors grew 4% year over year. This growth was supported by higher cash collections, increased patient acuity and a slightly better payor mix. This metric exceeded our model estimate of 2.6%. Total operating expenses were $430.9 million, up 5.4% year over year. The figure was higher than our estimate of $415.8 million. The year-over-year increase was primarily due to higher practice salaries and benefits costs, and general and administrative expenses. Practice salaries and benefits totaled $336.1 million, up 3.9% year over year, mainly due to higher same-unit clinical salaries and malpractice expenses. Interest expense decreased 10.5% year over year to $8.2 million. The figure was below our estimate of $8.7 million due to lower interest rates and borrowings. Adjusted EBITDA rose 4.4% year over year to $76.4 million, driven by favorable contributions from recent acquisitions. Pediatrix Medical exited the second quarter of 2026 with cash and cash equivalents of $288.9 million, down from $375.2 million as of Dec. 31, 2025. There were no outstanding borrowings on its revolving credit facility at the end of the quarter. Total assets of $2.1 billion decreased from $2.2 billion at the end of 2025. Total debt, including finance leases, net was $584.2 million, which fell from $597.3 million at the end of 2025. Total shareholders’ equity of $881 million improved from $865.9 million at the end of 2025. MD generated net cash from operations of $126.3 million in the second quarter of 2026 compared with $138.1 million in the prior-year comparable period. During the first half of 2026, the company repurchased 2.8 million shares for $61.7 million. As of June 30, 2026, $104.5 million was available under the buyback program. Management has reaffirmed its guidance for adjusted EBITDA at $280-$300 million for 2026. Net income is now estimated to be between $147.6 million and $162.1 million for 2026. Interest expenses are currently forecasted to be $33.1 million. Income tax expenses are expected to be in the range of $54.5-$60 million. Depreciation and amortization expenses are now estimated to be $24.4 million. Transformational and restructuring-related expenses are anticipated to be $20.4 million. Since the earnings release, investors have witnessed a upward trend in estimates review. At this time, Pediatrix Medical Group has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a score of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Pediatrix Medical Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Pediatrix Medical Group belongs to the Zacks Medical Services industry. Another stock from the same industry, Danaher (DHR), has gained 5.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Danaher reported revenues of $6.27 billion in the last reported quarter, representing a year-over-year change of +5.5%. EPS of $1.94 for the same period compares with $1.80 a year ago. For the current quarter, Danaher is expected to post earnings of $1.96 per share, indicating a change of +3.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. Danaher has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pediatrix Medical Group, Inc. (MD) : Free Stock Analysis Report Danaher Corporation (DHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Looking back on healthcare providers & services stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Pediatrix Medical Group (NYSE:MD) and its peers. The healthcare providers and services sector, from insurers to hospitals, benefits from consistent demand, generating stable revenue through premiums and patient services. However, it faces challenges from high operational and labor costs, reimbursement pressures that squeeze margins, and regulatory uncertainty. Looking ahead, an aging population with more chronic diseases and a shift toward value-based care create tailwinds. Digitization via telehealth, data analytics, and personalized medicine offers new revenue streams. Nonetheless, headwinds persist, including clinical labor shortages, ongoing reimbursement cuts, and regulatory scrutiny over pricing and quality. The 39 healthcare providers & services stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 1.6% above. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. With a network of approximately 2,620 affiliated physicians caring for some of the most vulnerable patients, Pediatrix Medical Group (NYSE:MD) provides specialized physician services focused on neonatal, maternal-fetal, pediatric cardiology and other pediatric subspecialty care across 37 states. Pediatrix Medical Group reported revenues of $487.8 million, up 4% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and full-year EBITDA guidance meeting analysts’ expectations. “Our strong results this quarter were in line with our expectations and reflect continued favorable trends in the performance of recent acquisitions and same-unit reimbursement metrics,” said Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group. Interestingly, the stock is up 2.8% since reporting and currently trades at $26.99. Is now the time to buy Pediatrix Medical Group? Access our full analysis of the earnings results here, it’s free. With a network of thousands of healthcare professionals ranging from nurses to physicians to executives, AMN Healthcare (NYSE:AMN) provides healthcare workforce solutions including temporary staffing, permanent placement, and technology platforms for hospitals and healthcare facilities across the United States. AMN Healthcare Services reported revenues of $673.2 million, up 2.3% year on year, outperforming analysts’ expectations by 7.2%. The business had an incredible quarter with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations. AMN Healthcare Services scored the highest guidance raise in the group. The market seems happy with the results as the stock is up 10% since reporting. It currently trades at $33.88. Is now the time to buy AMN Healthcare Services? Access our full analysis of the earnings results here, it’s free. With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ:AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders. AdaptHealth reported revenues of $740.3 million, up 12.7% year on year, falling short of analysts’ expectations by 12.6%. It was a disappointing quarter as it posted full-year revenue and EBITDA guidance missing analysts’ expectations. AdaptHealth delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. As expected, the stock is down 48.9% since the results and currently trades at $5.53. Read our full analysis of AdaptHealth’s results here. Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE:MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states. Molina Healthcare reported revenues of $10.87 billion, down 4.8% year on year. This number was in line with analysts’ expectations. More broadly, it was a slower quarter as it recorded full-year revenue guidance missing analysts’ expectations. The company lost 108,000 customers and ended up with a total of 4.93 million. The stock is down 10.5% since reporting and currently trades at $198.50. Read our full, actionable report on Molina Healthcare here, it’s free. With over 600 million tests performed annually and involvement in 90% of FDA-approved drugs in 2023, Labcorp (NYSE:LH) provides laboratory testing services and drug development solutions to doctors, hospitals, pharmaceutical companies, and patients worldwide. Labcorp reported revenues of $3.73 billion, up 5.8% year on year. This print met analysts’ expectations. Overall, it was a satisfactory quarter as it also put up a decent beat of analysts’ full-year EPS guidance estimates. The stock is up 9.9% since reporting and currently trades at $337.50. Read our full, actionable report on Labcorp here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Pediatrix Medical Group’s second quarter was marked by revenue growth exceeding Wall Street’s expectations, but the market responded negatively, reflecting concerns about profitability and underlying operational trends. Management attributed the top-line gains to improved revenue cycle management collections, a favorable payer mix, and rising patient acuity, while acknowledging a modest decline in same-unit patient volumes, particularly in neonatology. CEO Mark Ordan noted, “Same unit revenue was buoyed by strong RCM collections, payer mix, and importantly, continuing rise in acuity, while we did see modestly lower volumes.” The company also pointed to higher operating expenses, especially salaries and executive transition costs, as factors weighing on margins. Is now the time to buy MD? Find out in our full research report (it’s free). Revenue: $487.8 million vs analyst estimates of $477.8 million (4% year-on-year growth, 2.1% beat) Adjusted EPS: $0.63 vs analyst estimates of $0.59 (6.6% beat) Adjusted EBITDA: $76.43 million vs analyst estimates of $75.86 million (15.7% margin, 0.8% beat) EBITDA guidance for the full year is $290 million at the midpoint, in line with analyst expectations Operating Margin: 11.7%, down from 12.8% in the same quarter last year Same-Store Sales rose 1.9% year on year (6.4% in the same quarter last year) Market Capitalization: $2.07 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Matthew Mardula (William Blair): Asked about the resilience of payer mix and whether trends seen this quarter could continue. CEO Mark Ordan explained that pregnant patients are less likely to drop insurance, but acknowledged uncertainty about future shifts. Matthew Mardula (William Blair): Inquired about the decline in patient volumes and whether this signals a longer-term trend. Ordan stated that volume declines are consistent with seasonal patterns and expects flat to slightly down volumes for the year. Albert Rice (UBS): Requested clarification on the main drivers of pricing strength. CFO Kasandra Rossi identified RCM collections as the largest contributor, followed by payer mix and patient acuity. Albert Rice (UBS): Sought details on non-same-store growth and the outlook for acquisitions and dispositions. Ordan highlighted current opportunities in the women’s and children’s space and noted most dispositions are complete. Brett Grulkowski (Jefferies): Asked about wage inflation trends and expectations for salary costs. Rossi reported wage increases remain controlled within a narrow range, with no major changes anticipated. In the coming quarters, the StockStory team will be watching (1) whether payer mix and patient acuity can continue to offset flat or declining volumes, (2) the impact of telehybrid medicine expansion on both access and revenue generation, and (3) management’s ability to control expenses as executive transition and wage inflation pressures persist. The trajectory of acquisitions and integration of new services will also be important indicators of future growth. Pediatrix Medical Group currently trades at $26.19, in line with $26.25 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 9:00 a.m. ET Chief Executive Officer - Mark Ordan Chief Financial Officer - Kasandra Rossi Operator: Thank you for standing by. My name is Jordan, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Q2 2026 Pediatrix Medical Group Inc. Earnings Conference Call. [Operator Instructions] I'd now like to turn the call over to [ Ashley Schneider ]. Please go ahead. Unknown Attendee: Good morning. Certain statements and information during this conference call may be deemed to be forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions and assessments made by Pediatrix's management in light of their experience and assessment of historic trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward-looking statements made during this call are made as of today, and Pediatrix undertakes no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Important factors that could cause actual results, developments and business decisions to differ materially from forward-looking statements are described in the company's filings with the SEC, including the sections entitled Risk Factors. In today's remarks by management, they will be discussing non-GAAP financial metrics. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures can be found in this morning's earnings press release and the company's quarterly and annual reports and on the Pediatrics website at www.pediatrix.com. With that, I will turn the call over to Mark Ordan, Chief Executive Officer of Pediatrics Medical Group. Mark Ordan: Thank you, Ashley, and good morning, everyone. Also with me today is Kasandra Rossi, our Chief Financial Officer. We are pleased to report another solid quarter with adjusted EBITDA of $76 million. Same unit revenue was buoyed by strong RCM collections, payer mix, and importantly, continuing rise in acuity, while we did see modestly lower volumes, primarily in neonatology with NICU days down 3%. Our overall results for the quarter were in line with our expectations, and we reaffirm our full year 2026 outlook of $280 million to $300 million in adjusted EBITDA. In the quarter, we repurchased just under 2 million shares of our stock, bringing our total buybacks since August of 2025 to 7 million shares and our shares outstanding to 81 million, down from $87 million at the end of the second quarter of 2025. Our cash balance is at $289 million with total debt of $584 million. We've spoken before about our financial strength, which enables our consistent support for our practices, quality programs, research and growth. Before Kasandra provides additional details on the quarter, I'll comment on how the pieces of our business fit our strategic position. You know our sector-leading footprint in neonatology and maternal-fetal medicine. Today, we are in the process of building a significant function to augment our physical services with teleservices nationwide. No other entity is able to provide the services that we can offer to hospital partners, obstetricians and patients. And I'm sure you can imagine, we believe telemedicine is most effective when it's combined with physical patient visits. As one of our MFM physician leaders, Dr. Amber Samuel will put it, access when you need it and hands on when required. Only pediatrics has a multistate footprint of over 170 MFMs, by far the largest in the nation. These practices are very closely linked to the over 360 NICUs across 32 states in which our clinicians provide services, which also is, of course, by far the largest in the country and which also handles more high acuity patients than anyone else. We believe that telemedicine without a physical link is an imperfect offering. We expect telehybrid medicine to add significant value to pediatrics as it furthers our expansion in women's and children's care. This important area is not limited to MFM. Areas including retinopathy, neurology, infectious disease and of course, neonatology are all under this umbrella. I spoke on previous call about our expanding OBH footprint, which takes advantage of our embedded significant relationship with over 400 hospitals. We have recruited leaders in both telehybrid medicine and in OBH to help us expand both areas effectively. Last on growth. We're not a bank, and our business is not holding deposits. Our strong balance sheet, cash position and debt capacity enables us to take advantage of outside opportunities as they arise. We are very actively looking at possible growth avenues within women's and children's medicine, including potential opportunities to augment our strength by working with outside JV and capital investors. We have continued to buy back our shares and will continue to unless and until we see opportunities that make clear operating and financial sense. Now I'll turn the call to Kasandra to provide those additional details. Kasandra Rossi: Thanks, Mark, and good morning, everyone. Our consolidated revenue increased by 4%, driven by non-same-unit activity, primarily recent acquisitions and same-unit growth of 2%. Same-unit pricing was up 4%, driven by strong RCM cash collections, favorable payer mix and increased patient acuity, primarily in neonatology. Payer mix improved by 135 basis points as compared to the prior year second quarter and importantly, improved by 120 basis points as compared to the first quarter of 2026. Same-unit patient service volumes were down 2%, driven by hospital-based services, primarily neonatology, and we were up against a tough comp. Practice level SW&B expenses increased year-over-year and on a same-unit basis, reflected increases in salary expenses and malpractice expense. Salary growth has remained in a pretty tight band, consistent with the ranges we have seen for the last 18 months. Our G&A expense increased year-over-year, primarily related to executive transition-related costs flowing through compensation expense. G&A expense increased to $5.8 million as compared to $5.3 million in the prior year, primarily reflecting capital expenditures and amortization of intangible assets from recent acquisitions. Other nonoperating expense decreased to $2.9 million as compared to $4.9 million for the prior year period, primarily reflecting a decrease in interest expense from modestly lower interest rates and borrowings and an increase in interest income on higher cash balances. Moving to cash flow. We generated $126 million in operating cash flow in the second quarter compared to $138 million in the prior year, with the change driven by decreases in cash flow from accounts payable and accrued expenses and accounts receivable. With cash of $289 million and net debt of just over $295 million, leverage sits at just above 1x using the midpoint of our adjusted EBITDA outlook range for 2026. Our accounts receivable DSO at June 30 of 42.5 days were fairly unchanged from March 31 and December 31, but were down just under four days year-over-year, primarily related to improved cash collections at our existing units. For the second half of 2026, we expect that our adjusted EBITDA will be fairly ratable in the third and fourth quarters. Now I'll turn the call back over to Mark. Mark Ordan: Thanks, Kasandra. And now we are able to take questions if you have them. Operator: [Operator Instructions] Your first question comes from the line of Ryan Daniels from William Blair. Matthew Mardula: This is Matthew Mardula on for Ryan. Thank you for taking the question, as well as for the details in the prepared remarks. So with the payer mix remaining stable this quarter and then increasing for commercial and nongovernment payers year-over-year and then also from Q1 based on the prepared remarks, why do you think you have been having a stable payer mix compared to your other peers in health care? And then any color on the consumer trends that is driving that payer mix for you as well as any insights into your expectations of how this payer mix could hold up into the second half? Mark Ordan: Well, we said on -- Matthew, thanks for the question. We said on previous calls, and we've said recently in a filing that we have not seen the same effect that others have experienced. We can guess that it has something to do with the fact that if you're pregnant, then the relative value of insurance is a lot greater for you than it might be for somebody else. So it would make sense to me that somebody would retain their health insurance if you're pregnant. We don't know what the future holds. Many people were concerned that we hadn't built in some negative assumption, but we look at the fact, we looked at that to date, it's still very strong. We're not saying we're immune from it. We don't really know. We can only say that there is a there is a logical reason that we would be continuing to be strong. And it would make sense that in other cases, people would drop off the insurance because of the subsidy lapse. So that's all we know. But there has been absolutely no sign of a change to date at pediatrics. Matthew Mardula: Great. And then kind of given that we've seen a couple of quarters of this volume decrease, do you still believe this is not a trend occurring? And then if so, what's the reasoning behind the belief that the decrease in patient volume seen is not a trend occurring? I know you were kind of talking about in the prepared remarks, the tough comp, and it's just difficult to assess or predict the birth trends. But if you can give any color into maybe when you believe an increase in patient volume, maybe is that second half of this year, given the easier comps we see in the second half of this year. But just any color into the potential increase in that patient volume? Mark Ordan: Well, the change in volume is pretty much on trend with past seasonal patterns. We expect for the year that we'll be overall flat in volume to maybe slightly down. As for an ongoing trend, we don't know. We have seen the numbers that we report that show a slight decline in volume that's been offset by the factors that we outlined. Other than that, we look at what the birth rate is, which is not a perfect indicator of what happens in neonatology. And importantly, because we sit on the high acuity side of neonatology, we look a lot at that. And when I talked in my remarks about telemedicine, we can reach into other parts of the country where there are really care deserts, where there isn't care available to provide care and when necessary, bring patients in for physical care. But we're on trend. This is typically a lower volume quarter, and so we're on trend for the year to be flat to possibly slightly down. Operator: Your next question comes from the line of A.J. Rice from UBS. Albert Rice: Just a couple of things maybe. On the pricing, I know you're attributing part of that to better collections, part of its payer mix, and it sounds like some of it to acuity. Is there any way to delineate that a little further into what are the drivers of the extent to which either any of those were the primary driver? Kasandra Rossi: A.J., it's Kasandra. So, yes, on the drivers, they are really following the same order that we've seen for the past several quarters. The biggest contributor is the RCM collections. And then really kind of coming in a close second is the payer mix impact and then wearing it up there is the acuity. So those three drivers are about 95% of the pricing for the quarter. And as we've talked about, we do anticipate that the RCM collections piece that we've been seeing that tailwind will begin to dissipate in the last -- in the second half of 2026. But like Mark said, we have no reason to believe at this time that acuity will wane. We've seen over the past few years, that is definitely on an upward trajectory and then payer mix, Mark already covered. Albert Rice: Okay. That's good. On the non-same-store contribution to growth, acquisitions offset maybe by a little bit of dispositions. Can you tell us a little more about what you're doing on the acquisition front, what you're seeing pricing? And then was there much in the way of dispositions? Or is most of that behind you at this point? Kasandra Rossi: All the dispositions are behind us, and then I'll let Mark cover acquisitions. Mark Ordan: Yes. Look, we're seeing -- we do see a lot of opportunities with where pricing is fair. So we expect to find opportunities. And as I mentioned before, if there are larger opportunities, we also see a big appetite from capital partners to join us in some way to help provide additional financing. Look, we obviously are looking for ways to grow. We just want to make sure that it makes sense, as I said on the call, both on an operating basis and a financial basis. But it does seem like a good time in the market to find smart opportunities that fit in the women's and children's space. Albert Rice: Okay. And then maybe just the last point of clarification. It sounded like there might be some unusual items. I think you mentioned executive transition compensation in the G&A. Is there an unusual item in there that we should back out to come up with a run rate for G&A going forward? Kasandra Rossi: Yes. So, we said that G&A, we expect for 2026 to be somewhere in the range of $230 million to $240 million. It will probably be on the higher end of that range. And like we mentioned in our remarks, most of the growth in G&A was related to those executive transition costs that we would say are onetime-ish. Albert Rice: Okay. But that's done for the second half, so you won't see it step down a bit in the second half. Is that the way to think about it? Kasandra Rossi: Yes. There was an increase in the second quarter in particular. Operator: Your next question comes from the line of Jack Slevin from Jefferies. Brett Grulkowski: This is Brett Grulkowski on for Jack Slevin. Maybe just to double-click into kind of previous questions and asked here, pricing in the back half of the year. What are the trends you're currently expecting? I know you kind of called out the RCM comps there, but do you see any other incremental opportunities? Kasandra Rossi: No. So, I mean, our pricing drivers are -- they pretty much follow the four. RCM collections, which we've covered, which we will be lapping to some extent. Like we said, we do anticipate acuity will continue to be a positive factor for us in pricing. Payer mix, we've already covered. And then we have seen contract revenue come in through our pricing in past quarters. It wasn't as much of a contributor this quarter, but no other -- nothing else to really call out there for the back half of the year. Brett Grulkowski: Okay. Great. And then maybe could you give some extra color on where you're seeing wage inflation tracking? How can we expect this to progress into the rest of the year and then maybe into 2027? Kasandra Rossi: Yes. So, on the salaries expense, we've talked about that quite a bit for the past several quarters. We've been able to keep our salary increases in a pretty tight band, somewhere in that 3% to 3.5% area. And if you go back historically, we were up in the mid-single digits. So we don't see anything really changing. We've got really tight controls in that area. Operator: There are no further questions. I'd like to turn the call back to Mark Ordan for closing remarks. Mark Ordan: Thank you very much, and thanks, everybody, for your continued support and interest in Pediatrics. I hope you're enjoying your summer. Have a great day. Operator: That concludes today's meeting. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Pediatrix Medical Group (MD) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Pediatrix Medical Group (MD) recently reported second quarter and first half 2026 results, with higher sales, net income, and earnings per share from continuing operations compared with the same periods a year earlier. See our latest analysis for Pediatrix Medical Group. Pediatrix Medical Group’s earnings update comes after a strong run in the stock, with a 90 day share price return of 15.88% and a year to date share price return of 27.20%. The 1 year total shareholder return of 88.97% contrasts with an 83.47% total shareholder return over three years and a decline of 17.94% over five years, which suggests recent momentum has been building from a weaker longer term base. If you are reviewing Pediatrix Medical Group and want to widen your watchlist within healthcare, this can be a good time to scan potential opportunities through our focused list of 43 healthcare AI stocks After Pediatrix Medical Group’s sharp share price move and with the stock now trading slightly above the average analyst target yet still at a large modeled intrinsic discount, where might a reasonable view of fair value sit next for you as an investor? The most followed narrative on Pediatrix Medical Group compares a fair value of $23.17 to the last close of $27.08 and frames today’s price as richer than that modeled view. Read the complete narrative. Want to see what sits behind that premium call on Pediatrix Medical Group? The narrative focuses on steady revenue growth, firm margins and a future earnings multiple that is lower than many healthcare peers. Result: Fair Value of $23.17 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Pediatrix Medical Group still faces pressure from portfolio restructuring and rising compensation costs, which could weigh on revenue stability and margin resilience if conditions tighten. Find out about the key risks to this Pediatrix Medical Group narrative. The analyst narrative frames Pediatrix Medical Group as 16.9% overvalued against a fair value of $23.17. Yet the current P/E of 12.3x looks low compared with a fair ratio of 19.2x, the US Healthcare industry at 25.3x and peers at 21x. That gap points to either valuation risk in the narrative assumptions or a pricing opportunity in the market. Which side do you think has it right? See what the numbers say about this price — find out in our valuation breakdown. Mixed signals around Pediatrix Medical Group’s valuation and outlook can feel confusing, so review the full data set now and weigh both sides through the 3 key rewards and 1 important warning sign. If Pediatrix Medical Group is on your radar, broaden your opportunities by lining up a few more high quality ideas that could complement your current watchlist. Target resilient compounding potential by reviewing companies in the 52 high quality undervalued stocks that pair quality fundamentals with prices below modeled fair value. Strengthen your focus on protection by scanning the 83 resilient stocks with low risk scores for stocks with more measured risk profiles than the broader market. Get ahead of the crowd by using the screener containing 21 high quality undiscovered gems to spot lesser known companies that still show strong, disciplined fundamentals. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MD. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Encompass Health Corporation EHC reported second-quarter adjusted earnings per share (EPS) of $1.55, which beat the Zacks Consensus Estimate by 4.7%. The bottom line increased 10.7% year over year. Net operating revenues of $1.6 billion improved 9.6% year over year. The top line marginally beat the consensus mark by 1.5%. The robust results were primarily driven by strong growth in net patient revenue per discharge, supported by solid discharge volumes and contributions from capacity expansion. However, the upside was partly offset by elevated operating expenses, particularly higher salaries, benefits, and general and administrative costs. Encompass Health Corporation price-consensus-eps-surprise-chart | Encompass Health Corporation Quote EHC’s net patient revenue per discharge rose 3.9% year over year and beat the Zacks Consensus Estimate by 2.1%. Total discharges grew 5.6% year over year to 68,895, but missed the consensus estimate by 0.2%. Total operating expenses of $1.3 billion escalated 9.2% year over year due to elevated salaries, benefits, other operating and general & administrative expenses. The figure marginally missed our estimate by 0.9%. Net income climbed 12.2% year over year to $207.4 million in the second quarter. Adjusted EBITDA of $348 million grew 9.2% year over year and surpassed our estimate of $330.2 million. In the first half, Encompass Health opened three new hospitals with beds totaling 139 and added 54 beds across its existing hospitals. Encompass Health exited the second quarter with cash and cash equivalents of $107.7 million, which rose 49.2% from the 2025-end level. Total assets of $7.5 billion increased 5.2% from the 2025-end level. Long-term debt, net of the current portion, amounted to $2.6 billion, which increased 6.2% from that recorded as of Dec. 31, 2025. The current portion of long-term debt totaled $35.9 million. Total shareholders’ equity of $3.4 billion improved 5.8% from the 2025-end figure. EHC generated $595.7 million of net cash from operations in the first half, which improved 6.6% from the prior-year figure. Adjusted free cash flow decreased 9.2% to $370.8 million for the period. Encompass Health bought back 0.7 million shares worth $74.2 million in the second quarter of 2026. As of June 30, 2026, the company had a leftover capacity of around $188 million under its buyback authorization. On July 23, 2026, Encompass Health increased the aggregate common stock repurchase authorization to $1 billion. Management paid out a quarterly cash dividend of 19 cents per share. Net operating revenues are now expected to be between $6.41 billion and $6.49 billion, up from the earlier projection of $6.375-$6.475 billion. This reflected growth over the 2025 reported figure of $5.94 billion. Adjusted EBITDA is now expected to range between $1.365 billion and $1.395 billion, up from $1.27 billion in 2025. The prior guidance was $1.35-$1.38 billion for the metric. Adjusted EPS from continuing operations is projected to be between $6.02 and $6.25, reflecting an increase from $5.45 in 2025. The earlier guidance for the metric was $5.89-$6.11. Adjusted free cash flow is presently forecasted to be in the range of $760-$865 million. Maintenance CAPEX is expected to remain in the range of $225-$240 million. The company still expects to open eight de novo hospitals, adding a total of 389 beds. It plans to add 150 to 200 beds to its existing hospitals. Over the 2023-2027 period, management still aims to inaugurate six to 10 de novos each year, as well as make bed additions in the range of 80-120 every year. It also expects a CAGR of 6-8% in discharges in the same time frame. It also expects to open freestanding hospitals, including remote and satellite locations, with more than 30 beds beginning in 2026. EHC currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Here are some stocks from the broader Medical space that have also reported their quarterly results: Tenet Healthcare Corporation THC, Elevance Health, Inc. ELV and Pediatrix Medical Group, Inc. MD. Here's how they have performed: Tenet Healthcare reported second-quarter 2026 adjusted earnings per share of $6.12, which surpassed the Zacks Consensus Estimate by 50%. The bottom line increased 52.2% year over year. THC’s net operating revenues advanced 6.8% year over year to $5.63 billion. The quarterly results were driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions. Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. ELV’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses. Pediatrix Medical reported second-quarter 2026 adjusted earnings per share of 63 cents, which beat the Zacks Consensus Estimate by 10.5%. The bottom line increased 18.9% year over year. Net revenues increased 4.1% year over year to $487.8 million. MD’s strong performance was driven by improved cash collection activity and a favorable payor mix, along with contributions from recent acquisitions. However, these gains were partly offset by lower patient volumes and higher operating costs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Encompass Health Corporation (EHC) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Pediatrix Medical Group, Inc. (MD) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Pediatrix Medical Group, Inc. MD reported second-quarter 2026 adjusted earnings per share (EPS) of 63 cents, which beat the Zacks Consensus Estimate by 10.5%. The bottom line increased 18.9% year over year. Net revenues increased 4.1% year over year to $487.8 million. The top line surpassed the Zacks Consensus Estimate by 2.2%. The strong performance was driven by improved cash collection activity and a favorable payor mix, along with contributions from recent acquisitions. However, these gains were partly offset by lower patient volumes and higher operating costs. Pediatrix Medical Group, Inc. price-consensus-eps-surprise-chart | Pediatrix Medical Group, Inc. Quote Same-unit revenues increased 1.9% year over year, which beat our growth estimate of 0.4%. Same-unit revenues from patient service volumes declined 2.1% year over year. Same-unit revenues from net reimbursement-related factors grew 4% year over year. This growth was supported by higher cash collections, increased patient acuity and a slightly better payor mix. This metric exceeded our model estimate of 2.6%. Total operating expenses were $430.9 million, up 5.4% year over year. The figure was higher than our estimate of $415.8 million. The year-over-year increase was primarily due to higher practice salaries and benefits costs, and general and administrative expenses. Practice salaries and benefits totaled $336.1 million, up 3.9% year over year, mainly due to higher same-unit clinical salaries and malpractice expenses. Interest expense decreased 10.5% year over year to $8.2 million. The figure was below our estimate of $8.7 million due to lower interest rates and borrowings. Adjusted EBITDA rose 4.4% year over year to $76.4 million, driven by favorable contributions from recent acquisitions. Pediatrix Medical exited the second quarter of 2026 with cash and cash equivalents of $288.9 million, down from $375.2 million as of Dec. 31, 2025. There were no outstanding borrowings on its revolving credit facility at the end of the quarter. Total assets of $2.1 billion decreased from $2.2 billion at the end of 2025. Total debt, including finance leases, net was $584.2 million, which fell from $597.3 million at the end of 2025. Total shareholders’ equity of $881 million improved from $865.9 million at the end of 2025. MD generated net cash from operations of $126.3 million in the second quarter of 2026 compared with $138.1 million in the prior-year comparable period. During the first half of 2026, the company repurchased 2.8 million shares for $61.7 million. As of June 30, 2026, $104.5 million was available under the buyback program. Management has reaffirmed its guidance for adjusted EBITDA at $280-$300 million for 2026. Net income is now estimated to be between $147.6 million and $162.1 million for 2026. Interest expenses are currently forecasted to be $33.1 million. Income tax expenses are expected to be in the range of $54.5-$60 million. Depreciation and amortization expenses are now estimated to be $24.4 million. Transformational and restructuring-related expenses are anticipated to be $20.4 million. MD currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Here are some stocks from the broader Medical space that have also reported their quarterly results: Tenet Healthcare Corporation THC, Elevance Health, Inc. ELV and UnitedHealth Group Incorporated UNH. Here's how they have performed: Tenet Healthcare reported second-quarter 2026 adjusted earnings per share of $6.12, which surpassed the Zacks Consensus Estimate by 50%. The bottom line increased 52.2% year over year. THC’s net operating revenues advanced 6.8% year over year to $5.63 billion. The quarterly results were driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions. Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. ELV’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses. UnitedHealth Group reported second-quarter 2026 adjusted earnings per share of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Revenues rose 0.4% year over year to $112 billion. UNH’s strong quarterly results were aided by growth in commercial fee-based membership and the strength in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weaker performance at Optum Health and Optum Rx, along with declining risk-based membership, partially offset these gains. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pediatrix Medical Group, Inc. (MD) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Pediatrix Medical Group, Inc.? Here are five stocks we like better. Pediatrix reported Q2 adjusted EBITDA of $76 million and reaffirmed its full-year outlook of $280 million to $300 million. Revenue rose 4%, supported by acquisitions, stronger revenue-cycle collections, favorable payer mix and higher patient acuity despite lower service volumes. Patient-service volumes declined 2%, including a 3% drop in NICU days, while management expects full-year volumes to be flat to slightly down. Operating cash flow fell to $126 million, but leverage remained low at just over one times projected EBITDA. Pediatrix repurchased nearly 2 million shares during the quarter and plans to continue buybacks while evaluating acquisitions, partnerships and joint ventures in women’s and children’s healthcare. The company also plans to expand tele-hybrid care beyond maternal-fetal medicine into additional pediatric specialties. MarketBeat Week in Review – 06/29 - 07/03 Pediatrix Medical Group (NYSE:MD) reported second-quarter 2026 adjusted EBITDA of $76 million and reaffirmed its full-year adjusted EBITDA outlook of $280 million to $300 million, as stronger revenue-cycle-management collections, payer mix and patient acuity offset lower patient-service volumes. Chief Executive Officer Mark Ordan said quarterly results were in line with the company’s expectations. Same-unit revenue benefited from collections performance and continued increases in acuity, particularly in neonatology, while neonatal intensive care unit days declined 3%. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control MDA Space Targets US Defense Market With $620M Acquisition “While we did see modestly lower volumes, primarily in neonatology,” Ordan said, “our overall results for the quarter were in line with our expectations.” Chief Financial Officer Kasandra Rossi said consolidated revenue increased 4% from the prior-year period. Growth was driven by non-same-unit activity, primarily recent acquisitions, as well as 2% same-unit revenue growth. → 3 Drone Stocks That Should Soar After the Summer Slump Medtronic Bottoms, Healthy Rebound Ahead Same-unit pricing rose 4%, supported primarily by revenue-cycle-management, or RCM, cash collections. Favorable payer mix and increased patient acuity were also contributors. Rossi said those three factors accounted for about 95% of the quarter’s pricing improvement, with RCM collections the largest contributor and payer mix a close second. Payer mix improved by 135 basis points from the second quarter of 2025 and by 120 basis points from the first quarter of 2026. Ordan said the company has not experienced the insurance-coverage pressure reported by some other healthcare companies, though he said Pediatrix does not consider itself immune to potential future changes. → Why Rare Earth Processing Could Be the Real 2027 Opportunity He said the company believes pregnancy may support insurance retention because coverage has greater relative value for expectant patients. “There has been absolutely no sign of a change to date at Pediatrix,” Ordan said. Same-unit patient-service volumes declined 2%, driven by hospital-based services and primarily neonatology. Management characterized the comparison with the prior-year quarter as difficult and said it expects full-year volumes to be flat to slightly down. Ordan added that the quarterly volume change was generally consistent with historical seasonal patterns. Practice-level salaries, wages and benefits expenses increased year over year, reflecting higher salary and malpractice expense. Rossi said salary increases have remained within a relatively tight range and that the company expects salary growth of roughly 3% to 3.5%, compared with historical mid-single-digit increases. General and administrative expense increased year over year, primarily due to executive transition-related compensation costs. Rossi said the company expects 2026 G&A expense to be in the $230 million to $240 million range, likely toward the higher end, and described much of the transition-related increase as “one-time-ish.” She said the second quarter in particular included an increase in those costs. The company reported other non-operating expense of $2.9 million, down from $4.9 million a year earlier, reflecting lower interest expense from modestly lower rates and borrowings, as well as higher interest income from larger cash balances. Pediatrix generated $126 million in operating cash flow during the second quarter, compared with $138 million in the prior-year quarter. Rossi attributed the decline to changes in cash flow from accounts payable and accrued expenses and accounts receivable. At June 30, the company had $289 million in cash and $584 million in total debt. Net debt was just over $295 million, and leverage stood at just above one times the midpoint of the company’s 2026 adjusted EBITDA outlook, according to management. Accounts receivable days sales outstanding were 42.5 days, largely unchanged from the end of the first quarter and year-end 2025, but down by nearly four days from a year earlier because of improved collections at existing units. During the quarter, Pediatrix repurchased just under 2 million shares. Since August 2025, the company has bought back 7 million shares, reducing shares outstanding to 81 million from 87 million at the end of the second quarter of 2025. Ordan said the company intends to continue repurchasing shares unless it identifies opportunities that make stronger operating and financial sense. He said Pediatrix is actively evaluating growth opportunities in women’s and children’s healthcare, including potential joint ventures and partnerships with outside capital investors for larger opportunities. Management said all prior dispositions are now complete. Ordan said the company sees acquisition opportunities at what it views as fair pricing and is seeking transactions that fit strategically within women’s and children’s medicine. Ordan also highlighted Pediatrix’s plans to expand tele-hybrid services, combining telemedicine with in-person clinical care. The company has more than 170 maternal-fetal medicine physicians and provides services across more than 360 NICUs in 32 states, according to Ordan. He said the company believes telemedicine is most effective when it is linked to physical patient visits, particularly in areas with limited access to specialty care. Pediatrix sees potential applications beyond maternal-fetal medicine, including retinopathy, neurology, infectious disease and neonatology. For the second half of 2026, Rossi said adjusted EBITDA is expected to be relatively evenly distributed between the third and fourth quarters. While the company expects the benefit from RCM collection improvements to begin dissipating in the second half, management said it expects patient acuity to remain a positive contributor to pricing. Pediatrix Medical Group, Inc (NYSE:MD) is a national physician-led medical group specializing in high-acuity newborn, maternal-fetal and pediatric subspecialty care. Headquartered in Sunrise, Florida, the company delivers clinical services through hospital-based physician staffing, advanced practitioner support and telemedicine programs. Its core specialties include neonatology, maternal-fetal medicine, pediatric cardiology, pediatric critical care, pediatric emergency medicine and anesthesiology. Founded in 1979 and formerly known as MEDNAX, the company rebranded as Pediatrix Medical Group in 2022 to align its corporate identity with its primary clinical offerings. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Pediatrix Medical Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Pediatrix Medical Group (MD) came out with quarterly earnings of $0.63 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +10.53%. A quarter ago, it was expected that this physician group would post earnings of $0.37 per share when it actually produced earnings of $0.44, delivering a surprise of +18.92%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Pediatrix Medical Group, which belongs to the Zacks Medical Services industry, posted revenues of $487.78 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.19%. This compares to year-ago revenues of $468.84 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Pediatrix Medical Group shares have added about 22.7% since the beginning of the year versus the S&P 500's gain of 11%. While Pediatrix Medical Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Pediatrix Medical Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.62 on $486.91 million in revenues for the coming quarter and $2.23 on $1.94 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. IceCure Medical Ltd. (ICCM), another stock in the same industry, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.95 per share in its upcoming report, which represents a year-over-year change of +47.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. IceCure Medical Ltd.'s revenues are expected to be $2.53 million, up 386.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pediatrix Medical Group, Inc. (MD) : Free Stock Analysis Report IceCure Medical Ltd. (ICCM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

FORT LAUDERDALE, Fla., August 04, 2026--(BUSINESS WIRE)--Pediatrix Medical Group, Inc. (NYSE: MD), a leading provider of physician services, today reported earnings of $0.49 per share for the three months ended June 30, 2026. On a non-GAAP basis, Pediatrix reported Adjusted EPS of $0.63. For the 2026 second quarter, Pediatrix reported the following results: Net revenue of $488 million; Net income of $40 million; and Adjusted EBITDA of $76 million. "Our strong results this quarter were in line with our expectations and reflect continued favorable trends in the performance of recent acquisitions and same-unit reimbursement metrics," said Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group. "With a coveted, strong balance sheet, we believe we have exceptional financial flexibility to fund organic growth initiatives while remaining well-positioned to pursue potential high-value strategic opportunities." Operating Results– Three Months Ended June 30, 2026 Pediatrix’s net revenue for the three months ended June 30, 2026 was $487.8 million, compared to $468.8 million for the prior-year period. This increase of $19.0 million, or 4.0%, reflects growth in non-same unit activity of 2.1 percent, driven by recent acquisitions, partially offset by practice dispositions, and growth in same-unit revenue of 1.9 percent. Same-unit revenue from net reimbursement-related factors increased by 4.0 percent for the 2026 second quarter as compared to the prior-year period. This increase primarily reflects improved cash collections, a favorable shift in payor mix and higher patient acuity, primarily in neonatology. The percentage of services reimbursed by commercial and other non-government payors increased by 135 basis points compared to the prior-year period. Same-unit revenue attributable to patient volume decreased by 2.1 percent for the 2026 second 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 and six months ended June 30, 2026. (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 2026 second quarter, practice salaries and benefits expense was $336.1 million, compared to $323.5 million for the prior-year period. This increase primarily reflects increases in same-unit clinical salaries and malpractice expense. For the 2026 second quarter, general and administrative expenses were $61.3 million, as compared to $55.7 million for the prior-year period. This increase primarily reflects an increase in compensation expense related to executive transition related costs, as well as an increase in cash collection expense, partially offset by a decrease in information technology-related expenses. For the 2026 second quarter, transformational and restructuring related expenses were $8.5 million, compared to $3.8 million for the prior-year period. The expenses in 2026 were primarily related to revenue cycle management transition activities, and the expenses in 2025 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 $76.4 million for the 2026 second quarter, compared to $73.2 million for the prior-year period. The increase in Adjusted EBITDA was primarily due to net favorable impacts from recent acquisitions, partially offset by a decrease in same-unit results due to higher expenses as compared to revenue growth. Depreciation and amortization expense was $5.8 million for the second quarter of 2026, compared to $5.3 million for the same period in 2025. The increase was primarily related to capital expenditures and amortization of intangible assets from recent acquisitions. Interest expense was $8.2 million for the second quarter of 2026, compared to $9.1 million for the second quarter of 2025, reflecting a reduction in interest expense from modestly lower interest rates and borrowings. Investment and other income was $4.5 million for the second quarter of 2026, compared to $3.7 million for the prior-year period. Pediatrix generated net income of $39.8 million, or $0.49 per diluted share, for the 2026 second quarter, based on a weighted average shares outstanding of 81.4 million. This compares with net income of $39.3 million, or $0.46 per diluted share, for the 2025 second quarter, based on a weighted average shares outstanding of 85.5 million. The decrease in weighted average shares outstanding is primarily due to the impact of shares repurchased under the Company’s repurchase program, partially offset by issuances of restricted stock. For the second quarter of 2026, Pediatrix reported Adjusted EPS of $0.63, compared to $0.53 for the second quarter of 2025. 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 impacts from discrete tax events. Operating Results – Six Months Ended June 30, 2026 For the six months ended June 30, 2026, Pediatrix generated revenue of $964.0 million, compared to $927.2 million for the prior-year period. Pediatrix generated net income of $69.4 million, or $0.85 per share, for the six months ended June 30, 2026, based on a weighted average 82.0 million shares outstanding, which compares to net income of $60.0 million, or $0.70 per share, for the six months ended June 30, 2025, based on a weighted average 85.5 million shares outstanding. Adjusted EBITDA for the six months ended June 30, 2026 was $134.6 million, compared to $122.4 million for the prior year. For the six months ended June 30, 2026, Pediatrix reported Adjusted EPS of $1.07, compared to $0.87 for the same period of 2025. Financial Position and Cash Flow – Continuing Operations Pediatrix had cash and cash equivalents of $288.9 million at June 30, 2026, compared to $375.2 million at December 31, 2025, and net accounts receivable at June 30, 2026 were $227.6 million. For the second quarter of 2026, Pediatrix generated cash from continuing operations of $126.3 million, compared to $138.1 million during the second quarter of 2025. Additionally, during the second quarter of 2026, the Company used $42.7 million to fund share repurchases and $1.4 million to fund capital expenditures. At June 30, 2026, Pediatrix had total debt outstanding of $584 million, consisting of its $400 million in 5.375% Senior Notes due 2030 and $184 million in borrowings under its Term A Loan. At June 30, 2026, the Company had no outstanding borrowings under its $450 million revolving line of credit. 2026 Outlook Pediatrix reaffirms its full year 2026 outlook for Adjusted EBITDA, as defined above, and anticipates Adjusted EBITDA will be in a range of $280 million to $300 million. Non-GAAP Measures A reconciliation of Adjusted EBITDA and Adjusted EPS to the most directly comparable GAAP measures for the three and six months ended June 30, 2026 and 2025 is provided in the financial tables of this press release. A reconciliation of projected full year 2026 Adjusted EBITDA to the most directly comparable GAAP financial measures is also 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/about/investors. 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 4,300 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, its full year 2026 guidance, future impacts of legal, regulatory, political and macroeconomic developments 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 as the Company’s current reports on Form 8-K, filed with the Securities and Exchange Commission, and include the following: 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 effects of economic conditions on the Company’s business; including a slowdown of economic growth, economic downturns, inflationary pressures, elevated unemployment levels and sluggish or uneven economic recovery; the effects of the Medicare Access and CHIP Reauthorization Act of 2015, the Affordable Care Act, the One Big Beautiful Bill Act and potential additional healthcare reform; the Company’s relationships with government-sponsored or funded healthcare programs and with managed care organizations and commercial health insurance payors and any shifts in the Company’s payor mix; the impact of state budgetary constraints and uncertainty over the future of Medicaid; the impact of surprise billing legislation; the Company’s transition to a hybrid revenue cycle management model; the timing and contribution of future acquisitions or organic growth initiatives; the Company’s ability to comply with the terms of debt financing arrangements and the Company’s ability to replace, refinance or extend its current debt financing arrangements; and the effects of the Company’s transformation initiatives, including our renewed focus, and growth strategy for, the Company’s hospital-based and maternal-fetal service lines. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804235421/en/ Contacts Kasandra H. RossiExecutive Vice President, Chief Financial Officer & [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a significant rise in patient acuity and strong Revenue Cycle Management (RCM) collections, which successfully mitigated a 3% decline in NICU days. Management is pivoting toward a 'telehybrid' model, integrating the nation's largest maternal-fetal medicine footprint with new teleservices to address care deserts. The company maintains that telemedicine is most effective when linked to physical patient visits, utilizing its 170 MFMs and 360 NICUs as a competitive moat. Payer mix improved by 135 basis points year-over-year, which management attributes to the high relative value of insurance for pregnant patients compared to other healthcare sectors. Operational focus remains on expanding the Obstetric Hospitalist (OBH) footprint by leveraging existing relationships with over 400 hospital partners. Salary growth has stabilized within a tight band of 3% to 3.5%, reflecting improved labor cost controls compared to historical mid-single-digit increases. Reaffirmed full-year 2026 adjusted EBITDA guidance of $280 million to $300 million, with results expected to be fairly ratable across the third and fourth quarters. Management anticipates full-year patient volumes will remain flat to slightly down, consistent with historical seasonal patterns. The tailwind from RCM cash collections is expected to begin dissipating in the second half of 2026 as the company laps prior-year improvements. Strategic growth will prioritize 'smart opportunities' in women's and children's medicine, potentially involving outside joint ventures and capital partners. Share repurchases will continue to be the primary use of excess cash unless specific operating or financial opportunities offer superior returns. G&A expenses were impacted by one-time executive transition-related costs, though total G&A for 2026 is expected to land at the high end of the $230 million to $240 million range. The company has significantly reduced its share count from 87 million to 81 million since August 2025 through aggressive buybacks. Net debt leverage remains low at approximately 1x, providing significant debt capacity for future M&A or capital allocation. Management noted that all previously planned practice dispositions are now complete, shifting focus entirely to organic and inorganic growth. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management has not seen the negative payer mix shifts experienced by peers, suggesting pregnant patients are more likely to prioritize retaining health insurance. While not claiming total immunity, they noted there has been 'absolutely no sign of a change to date' in their specific patient demographics. RCM collections were the primary driver of pricing growth, followed by payer mix and then patient acuity. These three factors accounted for approximately 95% of the pricing improvement in the quarter. Management indicated a strong appetite from capital partners to provide additional financing for larger-scale opportunities in the women's and children's space. The current market environment is viewed as favorable for finding opportunities with 'fair' pricing that align with their core clinical strengths.