BRENTWOOD, Tenn.--(BUSINESS WIRE)--August 04, 2026--
Ardent Health, Inc. $(ARDT)$ ("Ardent Health" or the "Company"), a leading provider of healthcare in growing mid-sized urban communities across the U.S., today announced results for the quarter ended June 30, 2026.
Second Quarter 2026 Operating and Financial Summary
All comparisons are versus the same prior year period. See the footnotes to the Operating Statistics table of this press release for definitions of the metrics below and a full list of key operating metrics.
Total Revenue Net Income Attributable to Ardent Health
$1.62 billion $17 million
---------------------------------- -----------------------------------------
Adjusted EBITDA(1) Adjusted EBITDAR(1)
$115 million $157 million
---------------------------------- -----------------------------------------
Admissions Adjusted Admissions
Decrease of 1.0% Y/Y 2.5% growth Y/Y
---------------------------------- -----------------------------------------
Operating Cash Flow Reaffirming Full-Year 2026 Guidance
$197 million, increase of 67% Y/Y Total Revenue: $6,400 - $6,700 million
Adjusted EBITDA(1) : $485 - $535 million
---------------------------------- -----------------------------------------
(1) Adjusted EBITDA and Adjusted EBITDAR are financial measures that have
not been prepared in a manner that complies with U.S. generally accepted
accounting principles ("GAAP"). See "Supplemental Non-GAAP Financial
Information" and reconciliations of non-GAAP measures to their most
comparable GAAP financial measures contained later in this press
release.
Second Quarter 2026 Commentary "As I transition to the CEO role, I'm looking
forward to building on the momentum of key initiatives launched during my COO
tenure as well as Ardent's strong foundation in attractive, growing markets,"
said Dave Caspers, President and Chief Executive Officer of Ardent Health. "I
see clear opportunities to further improve performance and unlock the full
potential of the platform. Our growth strategy remains unchanged, but
sharpening operational execution is my highest priority. We are focused on the
levers we can control -- staffing, contracting, capital allocation,
standardization and accountability -- while continuing to deliver high-quality
care to the patients and communities we serve." "Second quarter operating and
financial performance was impacted by lower surgeries and admissions, but
volumes improved after our intra-quarter update in early June, and we moved
quickly to address the earnings pressure," Caspers continued. "Those actions
included an improved payor contract in a key market and incremental benefit
from our IMPACT program, which we now expect to generate at least $70 million
of savings in 2026, compared with $55 million previously. Additionally, we
reported strong second quarter operating cash flow of $197 million." "Our
actions give us confidence to reaffirm our 2026 Adjusted EBITDA guidance of
$485 million to $535 million, even as we factor in a lower volume outlook,"
Caspers said. "We remain focused on disciplined execution, consistent
performance and creating long-term value for shareholders."
------------------------------------------------------------------------------
Financial Performance Summary
Second quarter 2026 year-over-year growth rates were negatively impacted by the Company recording two quarters of financial benefit from the New Mexico state directed payment program in the prior year quarter as a result of delayed renewal of the program in 2025.
For the second quarter of 2026:
-- Total revenue declined 1.4% year-over-year to $1,622 million driven
primarily by a 3.9% decrease in net patient service revenue per adjusted
admission. This decrease was largely attributable to recording two
quarters of the New Mexico state directed payment program benefit in the
prior year quarter.
-- Net income attributable to Ardent Health was $17 million, or $0.12 per
diluted share, compared to net income attributable to Ardent Health of
$73 million, or $0.52 per diluted share, for the second quarter of 2025.
-- Adjusted EBITDA decreased 32.3% year-over-year to $115 million.
Operating Performance Summary
The following table provides a summary of certain key operating metrics for the second quarter of 2026 compared to the same prior year period. See the footnotes to the Operating Statistics table of this press release for definitions of the metrics below and a full list of key operating metrics.
Three Months Ended June 30,
---------------------------------------
(Unaudited) 2026 2025 % Change
------------- ------------ ----------
Adjusted admissions 89,326 87,167 2.5%
Admissions 41,104 41,535 (1.0%)
Inpatient surgeries 9,106 9,840 (7.5%)
Outpatient surgeries 22,649 22,860 (0.9%)
Total surgeries 31,755 32,700 (2.9%)
Emergency room visits 156,896 156,622 0.2%
Net patient service revenue per
adjusted admission $ 17,864 $ 18,581 (3.9%)
-- Admissions for the second quarter of 2026 decreased 1.0%
year-over-year.
-- Surgeries for the second quarter of 2026 decreased 2.9% year-over-year.
The decrease in total surgeries reflected declines in outpatient and
inpatient surgery volume of 0.9% and 7.5%, respectively.
Balance Sheet, Cash Flow & Liquidity Update
As of June 30, 2026, the Company had total cash and cash equivalents of $724 million and total debt of $1.1 billion. The Company's net leverage ratio was 0.8x and its lease-adjusted net leverage ratio(1) was 2.6x as of June 30, 2026. At the end of the second quarter, the Company's available liquidity was $992 million.
During the second quarter of 2026, net cash provided by operating activities was $197 million, or an increase of 67% compared to $117 million provided by operating activities in the same prior year period.
During the second quarter of 2026, the Company repurchased 1.4 million shares of its common stock for $13 million. The Company had $34 million remaining under its repurchase authorization as of June 30, 2026.
____________________
(1) Lease-adjusted net leverage ratio is defined as the Company's net debt,
plus 8x trailing twelve-month real estate investment trust ("REIT") rent
expense, divided by trailing twelve-month Adjusted EBITDAR as of June
30, 2026.
2026 Financial Guidance
The Company is reaffirming its full-year 2026 revenue and adjusted EBITDA financial guidance. All guidance is current as of the time provided and is subject to change.
Full Year 2026 Guidance
(Unaudited; dollars in
millions, except per share
amount) Previous Guidance Revised Guidance
--------------------- --------------------
Total revenue $6,400 -- $6,700 $6,400 -- $6,700
Net income attributable to
Ardent Health, Inc. $129 -- $183 $110 -- $163
Adjusted EBITDA $485 -- $535 $485 -- $535
Rent expense payable to REITs $168 -- $168 $168 -- $168
Diluted earnings per share $0.90 -- $1.27 $0.78 -- $1.15
Adjusted admissions growth 1.5% -- 2.5% 1.5% -- 2.5%
Capital expenditures $225 -- $265 $225 -- $265
The Company's guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks, including those set forth below under the heading "Forward-Looking Statements." The Company does not forecast the impact of items such as, but not limited to, losses (gains) on sales of facilities, losses on retirement of debt, legal claim costs (benefits) and impairments of long-lived assets. The Company does not believe that it can forecast these items with sufficient accuracy because of the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the Company's control or cannot be reasonably predicted.
Second Quarter 2026 Results Conference Call
The Company will host a conference call to discuss its second quarter financial results on August 5, 2026, at 10:00 a.m. Eastern Time. A webcast of the conference call will be available in the Investor Relations section of the Company's corporate website at https://ir.ardenthealth.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software.
To participate in the live teleconference: United States Live: 1-888-596-4144 International Live: 1-646-968-2525 Access Code: 4437657 To listen to a replay of the teleconference, which will be available through August 19, 2026: United States Replay: 1-800-770-2030 International Replay: 1-647-362-9199 Access Code: 4437657
About Ardent Health
Ardent Health (NYSE: ARDT) is a leading provider of healthcare in growing mid-sized urban communities across the U.S. The Company delivers care through its subsidiaries, which include 30 acute care hospitals and more than 280 sites of care with over 1,800 employed and affiliated providers across six states. Anchored by a shared operating model and a commitment to investing in innovative services and technologies that improve quality, access and experience, Ardent is focused on delivering strong clinical outcomes and improving the health of the patients and communities it serves.
Supplemental Non-GAAP Financial Information
We have included certain non-GAAP financial measures in this press release, including Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted EBITDAR. We define these terms as follows:
-- Adjusted EBITDA and Adjusted EBITDA Margin. Adjusted EBITDA is defined
as net income plus (i) provision for income taxes, (ii) interest expense
and (iii) depreciation and amortization expense (or EBITDA), as adjusted
to deduct noncontrolling interest earnings, and excludes the effects of
other non-operating losses; recoveries from the cybersecurity incident in
November 2023 (the "Cybersecurity Incident"), net of incremental
information technology and litigation costs; certain legal matters and
related costs; other expenses, including development, restructuring and
enterprise system conversion costs; equity-based compensation expense;
and loss (income) from disposed operations. Adjusted EBITDA margin is
defined as Adjusted EBITDA divided by total revenue. Adjusted EBITDA
and Adjusted EBITDA margin are non-GAAP performance measures used by our
management and external users of our financial statements, such as
investors, analysts, lenders, rating agencies and other interested
parties, to evaluate companies in our industry. Adjusted EBITDA and
Adjusted EBITDA margin are performance measures that are not prepared in
accordance with GAAP and are presented in this press release because our
management considers them important analytical indicators commonly used
within the healthcare industry to evaluate financial performance and
allocate resources. Further, our management believes that Adjusted EBITDA
and Adjusted EBITDA margin are useful financial metrics to assess our
operating performance from period to period by excluding certain material
non-cash items and unusual or non-recurring items that we do not expect
to continue in the future and certain other adjustments we believe are
not reflective of our ongoing operations and our performance. Because
not all companies use identical calculations, our presentation of
Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to other
similarly titled measures of other companies. While we believe these are
useful supplemental performance measures for investors and other users of
our financial information, you should not consider Adjusted EBITDA and
Adjusted EBITDA margin in isolation or as a substitute for net income or
any other items calculated in accordance with GAAP. Adjusted EBITDA and
Adjusted EBITDA margin have inherent material limitations as performance
measures, because they add back certain expenses to net income, resulting
in those expenses not being taken into account in the performance
measures. We have borrowed money, so interest expense is a necessary
element of our costs. Because we have material capital and intangible
assets, depreciation and amortization expense are necessary elements of
our costs. Likewise, the payment of taxes is a necessary element of our
operations. Because Adjusted EBITDA and Adjusted EBITDA margin exclude
these and other items, they have material limitations as measures of our
performance.
-- Adjusted EBITDAR. Adjusted EBITDAR is defined as Adjusted EBITDA
further adjusted to add back rent expense payable to real estate
investment trusts ("REITs"), which consists of rent expense pursuant to
the master lease agreement (the "Ventas Master Lease") with Ventas, Inc.
("Ventas"), lease agreements with Ventas for 18 medical office buildings
and a lease arrangement with Medical Properties Trust, Inc. ("MPT") for
the Hackensack Meridian Mountainside Medical Center. Adjusted EBITDAR
is a commonly used non-GAAP valuation measure used by our management,
research analysts, investors and other interested parties to evaluate and
compare the enterprise value of different companies in our industry.
Adjusted EBITDAR excludes: (1) certain material noncash items and unusual
or non-recurring items that we do not expect to continue in the future;
(2) certain other adjustments that do not impact our enterprise value;
and (3) rent expense payable to REITs. We operate 30 acute care hospitals,
12 of which we lease from two REITs, Ventas and MPT, pursuant to
long-term lease agreements. Additionally, we lease 18 medical office
buildings from Ventas pursuant to lease agreements with initial terms of
12 years and eight options to renew for additional five-year terms. Our
management views the long-term lease agreements with Ventas and MPT, as
more like financing arrangements than true operating leases, with the
rent payable to such REITs being similar to interest expense. As a result,
our capital structure is different than many of our competitors,
especially those whose real estate portfolio is predominately owned and
not leased. Excluding the rent payable to such REITs allows investors to
compare our enterprise value to those of other healthcare companies
without regard to differences in capital structures, leasing arrangements
and geographic markets, which can vary significantly among companies. Our
management also uses Adjusted EBITDAR as one measure in determining the
value of prospective acquisitions or divestitures. Finally, financial
covenants in certain of our lease agreements, including the Ventas Master
Lease, use Adjusted EBITDAR as a measure of compliance. Adjusted EBITDAR
does not reflect our cash requirements for leasing commitments. As such,
our presentation of Adjusted EBITDAR should not be construed as a
performance or liquidity measure. Because not all companies use
identical calculations, our presentation of Adjusted EBITDAR may not be
comparable to other similarly titled measures of other companies. While
we believe this is a useful supplemental valuation measure for investors
and other users of our financial information, you should not consider
Adjusted EBITDAR in isolation or as a substitute for net income or any
other items calculated in accordance with GAAP. Adjusted EBITDAR has
inherent material limitations as a valuation measure, because it adds
back certain expenses to net income, resulting in those expenses not
being taken into account in the valuation measure. The payment of rent is
a necessary element of our valuation. Because Adjusted EBITDAR excludes
this and other items, it has material limitations as a measure of our
valuation.
Forward-Looking Statements
This press release may contain "forward-looking statements," as that term is defined in the U.S. federal securities laws. These forward-looking statements include, but are not limited to, statements other than statements of historical facts, including, among others, statements relating to our future financial performance, our business prospects and strategy, anticipated financial position, liquidity and capital needs, the industry in which we operate and other similar matters. Words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "could," "would," "will," "may," "can," "continue," "potential," "should" and the negative of these terms or other comparable terminology often identify forward-looking statements. When reviewing this press release, you should keep in mind the substantive risk and uncertainties that could impact our business. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties could cause actual results to differ materially from those projected in forward-looking statements contained in this press release or implied by past results and trends. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. Factors, risks, and uncertainties that could cause actual outcomes and results to be materially different from those contemplated include, among others: (1) general economic and business conditions, both nationally and in the regions in which we operate, including the impact of challenging macroeconomic conditions and inflationary pressures, current geopolitical instability, and impacts from the imposition of, or changes in, tariffs, as well as the potential impact on us of uncertain political, financial, credit and capital conditions; (2) possible reductions or other changes in Medicare, Medicaid and other state programs, including Medicaid supplemental payment programs, Medicaid waiver programs or state directed payments, that could have an adverse effect on our revenues and business; (3) reduction in the reimbursement rates paid by commercial payors, increased reimbursement denials or payment delays by commercial payors, our inability to retain and negotiate favorable contracts with private third party payors, or an increasing volume of uninsured or underinsured patients; (4) effects of changes in
healthcare policy or legislation, including the One Big Beautiful Bill Act (the "OBBBA") and any other reforms that have or may be undertaken by the current presidential administration, and legal and regulatory restrictions on our hospitals that have physician owners; (5) the ability to achieve operating and financial targets, develop and execute mitigation plans to offset to the extent possible impacts from the OBBBA, the expiration of temporary enhanced subsidies for individuals eligible to purchase insurance coverage through health insurance marketplaces and imposition of tariffs, attain expected levels of patient volumes and revenues, and control the costs of providing services; (6) security threats, catastrophic events and other disruptions affecting our, our service providers' or our joint venture ("JV") partners' information technology and related systems, which have adversely affected, and could in the future adversely affect, our relationships with patients and business partners and subject us to legal claims and liabilities, reputational harm and business disruption and adversely affect our financial condition; (7) the highly competitive nature of the healthcare industry and continued industry trends towards clinical transparency and value-based purchasing may impact our competitive position; (8) inability to recruit and retain quality physicians and increased labor costs resulting from increased competition for staffing or a continued or increased shortage of experienced nurses, as well as the loss of key personnel, including key members of our management team; (9) changes to physician utilization practices and treatment methodologies and other factors outside our control that impact demand for medical services and may reduce our revenues and ability to grow profitability; (10) continued industry trends toward value-based purchasing, third party payor consolidation and care coordination among healthcare providers; (11) inability to successfully complete acquisitions or strategic JVs or inability to realize all of the anticipated benefits; (12) liabilities because of professional liability and other claims brought against our hospitals, physician practices, outpatient facilities or other business operations; (13) exposure to certain risks and uncertainties by the JVs through which we conduct a significant portion of our operations, including anticipated synergies of past acquisitions and the risk that transactions may not receive necessary government clearances; (14) failure to obtain drugs and medical supplies at favorable prices or sufficient volumes; (15) operational, legal and financial risks associated with outsourcing functions to third parties; (16) our facilities are heavily concentrated in Texas and Oklahoma, which makes us sensitive to regulatory, economic and competitive conditions and changes in those states; (17) negative impact of severe weather, climate change, and other factors beyond our control, which could restrict patient access to care or cause one or more facilities to close temporarily or permanently; (18) risks related to the Master Lease with Ventas ("Ventas Master Lease") and its restrictions and limitations on our business; (19) the impact of our significant indebtedness and the ability to refinance such indebtedness on acceptable terms; (20) our failure to comply with complex laws and regulations applicable to the healthcare industry or to adjust our operations in response to changing laws and regulations; (21) the impact of governmental claims or governmental investigations, payor audits and litigation brought against our hospitals, physician practices, outpatient facilities or other business operations; (22) actual or perceived failures to comply with applicable data protection, privacy and security laws, regulations, standards and other requirements; (23) the impact of a deterioration of public health conditions associated with a future pandemic, epidemic or outbreak of infectious disease; (24) actual or perceived failures to comply with applicable data protection, privacy and security laws, regulations, standards and other requirements could adversely affect our business, results of operations and financial condition; (25) inability to or delay in building, acquiring, selling, renovating or expanding our healthcare facilities; (26) failure to comply with federal and state laws relating to Medicare and Medicaid enrollment, permit, licensing and accreditation requirements; (27) the results of our efforts to use technology, including artificial intelligence ("AI") and machine learning, to drive efficiencies, better outcomes and an enhanced patient experience; (28) our status as a controlled company; (29) conflicts of interest between our controlling stockholder and other holders of our common stock; and (30) other risk factors described in our filings with the Securities and Exchange Commission.
Many of the important factors that will determine these results are beyond our ability to control or predict. You are cautioned not to put undue reliance on any forward-looking statements, which speak only as of the date of this press release. Except as otherwise required by law, we do not assume any obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events. All references to "Company," "Ardent Health," "Ardent," "we," "our" and "us" as used throughout this release refer to Ardent Health, Inc. and its affiliates, unless stated otherwise or indicated by context.
Ardent Health, Inc.
Condensed Consolidated Income Statements
(Unaudited; dollars in thousands, except per share amounts)
Three Months Ended June 30,
------------------------------------------------
2026 2025
----------------------- -----------------------
Amount % Amount %
------------ --------- ------------ ---------
Total revenue $ 1,622,245 100.0% $ 1,645,280 100.0%
Expenses:
Salaries and
benefits 676,186 41.7% 671,697 40.8%
Professional
fees 327,843 20.2% 297,012 18.1%
Supplies 279,621 17.2% 270,639 16.4%
Rents and
leases 27,957 1.7% 27,825 1.7%
Rents and
leases,
related
party 38,686 2.4% 37,819 2.3%
Other
operating
expenses 174,838 10.8% 163,698 10.0%
Interest
expense 12,569 0.8% 14,729 0.9%
Depreciation
and
amortization 41,342 2.5% 39,309 2.4%
Other
non-operating
losses -- 0.0% 560 0.0%
----------- ----- ----------- -----
Total operating
expenses 1,579,042 97.3% 1,523,288 92.6%
Income before income
taxes 43,203 2.7% 121,992 7.4%
Income tax expense 8,514 0.6% 26,291 1.6%
----------- ----- ----------- -----
Net income 34,689 2.1% 95,701 5.8%
Net income
attributable to
noncontrolling
interests 17,790 1.1% 22,751 1.4%
----------- ----- ----------- -----
Net income
attributable to
Ardent Health,
Inc. $ 16,899 1.0% $ 72,950 4.4%
=========== ===== =========== =====
Net income per
share:
Basic $ 0.12 $ 0.52
Diluted $ 0.12 $ 0.52
Weighted-average
common shares
outstanding:
Basic 141,688,279 140,374,892
Diluted 143,052,519 141,517,661
Ardent Health, Inc.
Condensed Consolidated Income Statements
(Unaudited; dollars in thousands, except per share amounts)
Six Months Ended June 30,
--------------------------------------------------
2026 2025
------------------------ ------------------------
Amount % Amount %
------------- --------- ------------- ---------
Total revenue $ 3,224,115 100.0% $ 3,142,514 100.0%
Expenses:
Salaries and
benefits 1,337,617 41.5% 1,329,349 42.3%
Professional
fees 644,913 20.0% 577,869 18.4%
Supplies 548,174 17.0% 529,494 16.8%
Rents and
leases 55,038 1.7% 55,586 1.8%
Rents and
leases,
related
party 77,372 2.4% 75,869 2.4%
Other
operating
expenses 339,989 10.5% 294,465 9.5%
Interest
expense 24,780 0.8% 28,905 0.9%
Depreciation
and
amortization 84,328 2.6% 75,510 2.4%
Other
non-operating
gains (5,890) (0.2)% (20,723) (0.7)%
----------- ----- ----------- -----
Total operating
expenses 3,106,321 96.3% 2,946,324 93.8%
Income before income
taxes 117,794 3.7% 196,190 6.2%
Income tax expense 24,617 0.8% 41,524 1.3%
----------- ----- ----------- -----
Net income 93,177 2.9% 154,666 4.9%
Net income
attributable to
noncontrolling
interests 36,428 1.1% 40,333 1.3%
----------- ----- ----------- -----
Net income
attributable to
Ardent Health,
Inc. $ 56,749 1.8% $ 114,333 3.6%
=========== ===== =========== =====
Net income per
share:
Basic $ 0.40 $ 0.82
Diluted $ 0.40 $ 0.81
Weighted-average
common shares
outstanding:
Basic 141,478,312 140,219,452
Diluted 142,414,946 141,111,732
Ardent Health, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited; in thousands)
Six Months Ended June 30,
---------------------------------
2026 2025
------------------ -------------
Cash flows from operating activities:
Net income $ 93,177 $ 154,666
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 84,328 75,510
Other non-operating (gains)
losses (1,886) 777
Amortization of deferred
financing costs and debt
discounts 1,622 2,474
Deferred income taxes 3,068 (2,733)
Equity-based compensation 16,881 20,509
Income from non-consolidated
affiliates (8,079) (2,956)
Changes in operating assets and
liabilities, net of effect of
acquisitions and divestitures:
Accounts receivable (9,838) (14,251)
Inventories 2,571 (3,118)
Prepaid expenses and other
current assets 32,009 (51,449)
Accounts payable and other
accrued expenses and
liabilities (60,400) (50,590)
Accrued salaries and benefits (16,940) (36,136)
---------- ---------
Net cash provided by operating
activities 136,513 92,703
Cash flows from investing activities:
Purchases of property and equipment (66,766) (69,105)
Other (316) (264)
---------- ---------
Net cash used in investing activities (67,082) (69,369)
Cash flows from financing activities:
Proceeds from insurance financing
arrangements 17,033 10,959
Payments of principal on insurance
financing arrangements (8,192) (6,529)
Payments of principal on long-term
debt (6,937) (2,896)
Distributions to noncontrolling
interests (44,143) (39,525)
Repurchase of common stock (13,031) --
Other 714 (1,499)
---------- ---------
Net cash used in financing activities (54,556) (39,490)
---------- ---------
Net increase (decrease) in cash and
cash equivalents 14,875 (16,156)
Cash and cash equivalents at beginning
of period 709,601 556,785
---------- ---------
Cash and cash equivalents at end of
period $ 724,476 $ 540,629
Supplemental Cash Flow Information:
Non-cash purchases of property and
equipment $ 677 $ 13,272
Ardent Health, Inc.
Condensed Consolidated Balance Sheets
(Unaudited; dollars in thousands, except per share amounts)
June 30, December 31,
2026(1) 2025 (1)
----------- ----------------
Assets
Current assets:
Cash and cash equivalents $ 724,476 $ 709,601
Accounts receivable 695,950 686,102
Inventories 116,022 118,593
Prepaid expenses 147,895 112,646
Other current assets 370,533 431,882
--------- ---------
Total current assets 2,054,876 2,058,824
Property and equipment, net 920,044 935,769
Operating lease right of use assets 300,509 292,651
Operating lease right of use assets,
related party 908,233 915,599
Goodwill 879,262 879,451
Other intangible assets 87,678 89,335
Deferred income taxes 5,821 6,888
Other assets 123,655 111,691
--------- ---------
Total assets $5,280,078 $ 5,290,208
========= =========
Liabilities and Equity
Current liabilities:
Current installments of long-term
debt $ 28,572 $ 23,444
Accounts payable 429,769 457,936
Accrued salaries and benefits 279,244 296,260
Other accrued expenses and
liabilities 238,738 268,904
--------- ---------
Total current liabilities 976,323 1,046,544
Long-term debt, less current
installments 1,073,210 1,075,782
Long-term operating lease liability 268,054 260,600
Long-term operating lease liability,
related party 896,492 904,632
Self-insured liabilities 242,771 241,050
Other long-term liabilities 81,824 76,636
--------- ---------
Total liabilities 3,538,674 3,605,244
Redeemable noncontrolling interests (4,658) (1,250)
Equity:
Preferred stock, par value $0.01
per share; 50,000,000 shares
authorized; no shares issued and
outstanding -- --
Common stock, par value $0.01 per
share; 750,000,000 shares
authorized; 141,910,898 and
142,864,171 shares issued and
outstanding as of June 30, 2026
and December 31, 2025,
respectively 1,419 1,429
Additional paid-in capital 791,411 788,472
Accumulated other comprehensive
loss (638) (3,610)
Retained earnings 558,356 501,607
--------- ---------
Equity attributable to Ardent Health,
Inc. 1,350,548 1,287,898
Noncontrolling interests 395,514 398,316
--------- ---------
Total equity 1,746,062 1,686,214
--------- ---------
Total liabilities and equity $5,280,078 $ 5,290,208
========= =========
(1) As of June 30, 2026 and December 31, 2025, the unaudited condensed
consolidated balance sheets included total liabilities of consolidated
variable interest entities of $331.2 million and $335.1 million,
respectively. Refer to Note 2 of the Company's unaudited condensed
consolidated financial statements included in its Quarterly Report on
Form 10-Q for the six months ended June 30, 2026 for further
discussion.
Ardent Health, Inc.
Operating Statistics
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
---------------------------------------- ----------------------------------------
% %
2026 Change 2025 2026 Change 2025
-------------- -------- -------------- -------------- -------- --------------
Total revenue
(in thousands) $1,622,245 (1.4)% $1,645,280 $3,224,115 2.6% $3,142,514
Hospitals
operated (at
period end)
(1) 30 0.0% 30 30 0.0% 30
Licensed beds
(at period end)
(2) 4,281 0.0% 4,281 4,281 0.0% 4,281
Utilization of
licensed beds
(3) 49% (2.0)% 50% 50% 0.0% 50%
Admissions (4) 41,104 (1.0)% 41,535 82,036 (1.1)% 82,924
Adjusted
admissions (5) 89,326 2.5% 87,167 175,570 2.3% 171,703
Inpatient
surgeries (6) 9,106 (7.5)% 9,840 18,362 (3.8)% 19,090
Outpatient
surgeries (7) 22,649 (0.9)% 22,860 44,735 0.4% 44,572
Total surgeries 31,755 (2.9)% 32,700 63,097 (0.9)% 63,662
Emergency room
visits (8) 156,896 0.2% 156,622 313,064 (1.5)% 317,871
Patient days (9) 189,223 (2.8)% 194,738 386,352 (1.2)% 390,952
Total encounters
(10) 1,581,207 6.0% 1,491,905 3,145,321 6.9% 2,942,534
Average length
of stay (11) 4.60 (1.7)% 4.68 4.71 0.0% 4.71
Net patient
service revenue
per adjusted
admission (12) $ 17,864 (3.9)% $ 18,581 $ 18,111 0.6% $ 18,001
(1) Hospitals operated (at period end). This metric represents the total
number of hospitals operated by us at the end of the applicable period,
irrespective of whether the hospital real estate is (i) owned by us,
(ii) leased by us or (iii) held through a controlling interest in a JV.
This metric includes the managed clinical operations of the hospital at
UT Health North Campus in Tyler, Texas ("UT Health North Campus Tyler"),
a hospital owned by The University of Texas Health Science Center at
Tyler ("UTHSCT"), an affiliate of The University of Texas System. Since
we only manage the clinical operations of UT Health North Campus Tyler,
the financial results of such entity are not consolidated under Ardent
Health, Inc.
(2) Licensed beds (at period end). This metric represents the total number
of beds for which the appropriate state agency licenses a facility,
regardless of whether the beds are actually available for patient use.
(3) Utilization of licensed beds. This metric represents a measure of the
actual utilization of our inpatient facilities, computed by (i) dividing
patient days by the number of days in each period, and (ii) further
dividing that number by average licensed beds, which is calculated by
dividing total licensed beds (at period end) by the number of days in
the period, multiplied by the number of days in the period the licensed
beds were in existence.
(4) Admissions. This metric represents the number of patients admitted for
inpatient treatment during the applicable period.
(5) Adjusted admissions. This metric is used by management as a general
measure of combined inpatient and outpatient volume. Adjusted admissions
provides management with a key performance indicator that considers both
inpatient and outpatient volumes by applying an inpatient volume measure
(admissions) to a ratio of gross inpatient and outpatient revenue to
gross inpatient revenue. Gross inpatient and outpatient revenue reflect
gross inpatient and outpatient charges prior to estimated contractual
adjustments, uninsured discounts, implicit price concessions, and other
discounts. The calculation of adjusted admissions is summarized as
follows:
Adjusted Admissions = Admissions x (Gross Inpatient Revenue + Gross
Outpatient Revenue)
-----------------------------------
Gross Inpatient Revenue
(6) Inpatient surgeries. This metric represents the number of surgeries
performed on patients who have been admitted to our hospitals. Pain
management, c-sections, and certain diagnostic procedures are excluded
from inpatient surgeries.
(7) Outpatient surgeries. This metric represents the number of surgeries
performed on patients who have not been admitted to our hospitals. Pain
management, c-sections, and certain diagnostic procedures are excluded
from outpatient surgeries.
(8) Emergency room visits. This metric represents the total number of
patients provided with emergency room treatment during the applicable
period.
(9) Patient days. This metric represents the total number of days of care
provided to patients admitted to our hospitals during the applicable
period.
(10) Total encounters. This metric represents the total number of events
where healthcare services are rendered resulting in a billable event
during the applicable period. This includes both hospital and
ambulatory patient interactions.
(11) Average length of stay. This metric represents the average number of
days admitted patients stay in our hospitals.
(12) Net patient service revenue per adjusted admission. This metric
represents net patient service revenue divided by adjusted admissions
for the applicable period. Net patient service revenue reflects gross
inpatient and outpatient charges less estimated contractual
adjustments, uninsured discounts, implicit price concessions, and other
discounts.
Ardent Health, Inc.
Supplemental Non-GAAP Disclosures
(Unaudited; in thousands)
Three Months Ended June 30, Six Months Ended June 30,
------------------------------ ------------------------------
2026 2025 2026 2025
-------------- -------------- -------------- --------------
Net income $ 34,689 $ 95,701 $ 93,177 $ 154,666
Adjusted EBITDA
Addbacks:
------------------
Income tax
expense 8,514 26,291 24,617 41,524
Interest
expense 12,569 14,729 24,780 28,905
Depreciation
and
amortization 41,342 39,309 84,328 75,510
Noncontrolling
interest
earnings (17,790) (22,751) (36,428) (40,333)
Other
non-operating
losses (1) -- 560 -- 777
Cybersecurity
Incident
recoveries,
net (2) -- -- -- (19,705)
Certain legal
matters and
related costs 462 -- 2,464 --
Other expenses,
including
development,
restructuring
and enterprise
system
conversion
costs (3) 27,207 4,781 34,995 6,188
Equity-based
compensation 7,952 11,246 16,881 20,509
Loss (income)
from disposed
operations 6 7 (5,877) 33
--------- --------- --------- ---------
Adjusted EBITDA $ 114,951 $ 169,873 $ 238,937 $ 268,074
Total revenue $1,622,245 $1,645,280 $3,224,115 $3,142,514
--------- --------- --------- ---------
Adjusted EBITDA
margin 7.1% 10.3% 7.4% 8.5%
(1) Other non-operating losses include losses realized on certain
non-recurring events or events that are non-operational in nature.
(2) Cybersecurity Incident recoveries, net represent insurance recovery
proceeds associated with the Cybersecurity Incident, net of incremental
information technology and litigation costs.
(3) Other expenses, including development, restructuring and enterprise
system conversion costs consist of (i) enterprise restructuring costs,
including severance costs related to workforce reductions for
restructuring and CEO transition, (ii) penalties and costs incurred for
terminating pre-existing contracts at acquired facilities, (iii)
third-party professional fees and expenses, salaries and benefits, and
other internal expenses incurred in connection with potential and
completed acquisitions, and (iv) various costs incurred in connection
with our enterprise resource planning system conversion. These costs
included (i) salaries and benefits of $17.2 million and $3.2 million for
the three months ended June 30, 2026 and 2025, respectively, and $21.5
million and $3.2 million for the six months ended June 30, 2026 and
2025, respectively, (ii) professional fees of $9.8 million and $0.8
million for the three months ended June 30, 2026 and 2025, respectively,
and $13.1 million and $2.0 million for the six months ended June 30,
2026 and 2025, respectively, and (iii) other expenses of $0.2 million
and $0.8 million for the three months ended June 30, 2026 and 2025,
respectively, and $0.4 million and $1.0 million for the six months ended
June 30, 2026 and 2025, respectively. The increase in salaries and
benefits for the three and six months ended June 30, 2026, compared to
the respective prior year periods, was primarily driven by non-recurring
severance costs as a result of workforce reductions in connection with
enterprise restructuring activity and transition of the CEO during the
current period. The increase in professional fees for the three and six
months ended June 30, 2026, compared to the respective prior year
periods, was primarily attributable to incremental third-party costs
incurred in connection with enterprise restructuring activity and
enterprise resource planning system conversion during the current
period.
Ardent Health, Inc.
Supplemental Non-GAAP Disclosures
(Unaudited; in thousands)
Three Months Ended Six Months Ended
June 30, 2026 June 30, 2026
---------------------- --------------------
Net income $ 34,689 $ 93,177
Adjusted EBITDAR Addbacks:
------------------------------
Income tax expense 8,514 24,617
Interest expense 12,569 24,780
Depreciation and
amortization 41,342 84,328
Noncontrolling interest
earnings (17,790) (36,428)
Certain legal matters and
related costs 462 2,464
Other expenses, including
development, restructuring
and enterprise system
conversion costs (1) 27,207 34,995
Equity-based compensation 7,952 16,881
Loss (income) from disposed
operations 6 (5,877)
Rent expense payable to
REITs (2) 41,579 83,135
-------------- -------------
Adjusted EBITDAR $ 156,530 $ 322,072
============== =============
(1) Other expenses, including development, restructuring and enterprise
system conversion costs consist of (i) enterprise restructuring costs,
including severance costs related to workforce reductions for
restructuring and CEO transition, (ii) penalties and costs incurred for
terminating pre-existing contracts at acquired facilities, (iii)
third-party professional fees and expenses, salaries and benefits, and
other internal expenses incurred in connection with potential and
completed acquisitions, and (iv) various costs incurred in connection
with our enterprise resource planning system conversion. For the three
and six months ended June 30, 2026 these costs included (i) salaries and
benefits of $17.2 million and $21.5 million, respectively, (ii)
professional fees of $9.8 million and $13.1 million, respectively, and
(iii) other expenses of $0.2 million and $0.4 million, respectively.
(2) Rent expense payable to REITs for the three and six months ended June
30, 2026 consists of rent expense of $38.7 million and $77.4 million,
respectively, related to the Ventas Master Lease and other lease
agreements with Ventas for medical office buildings and rent expense of
$2.8 million and $5.7 million, respectively, related to a lease
arrangement with MPT for the lease of Hackensack Meridian Mountainside
Medical Center.
Ardent Health, Inc.
Supplemental Non-GAAP Disclosures
(Unaudited; in millions)
Guidance for the Full Year Ending
December 31, 2026
--------------------------------------------------
Previous Guidance Revised Guidance
----------------------- -------------------------
Low High Low High
------------- -------- ------------ -----------
Net income $ 221 $ 280 $ 202 $ 260
Adjusted EBITDA
Addbacks:
------------------
Income tax
expense 58 73 53 69
Interest
expense 56 53 56 53
Depreciation
and
amortization 175 170 175 170
Noncontrolling
interest
earnings (92) (97) (92) (97)
Cybersecurity
Incident
recoveries
(1) (7) (7) (7) (7)
Other expenses,
including
development,
restructuring
and enterprise
system
conversion
costs (2) 28 21 56 49
Equity-based
compensation 46 42 42 38
--- --- --- --- ---- ----
Adjusted EBITDA $ 485 $ 535 $ 485 $ 535
=== === === === ==== ====
(1) Cybersecurity Incident recoveries represent insurance recovery proceeds
associated with the Cybersecurity Incident.
(2) Other expenses, including development, restructuring and enterprise
system conversion costs consist of (i) enterprise restructuring costs,
including severance costs related to workforce reductions for
restructuring and CEO transition, (ii) penalties and costs incurred for
terminating pre-existing contracts at acquired facilities, (iii)
third-party professional fees and expenses, salaries and benefits, and
other internal expenses incurred in connection with potential and
completed acquisitions, and (iv) various costs incurred in connection
with our enterprise resource planning system conversion.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260804307760/en/
CONTACT: Investor Contact:
Dave Styblo, CFA
Investor.Relations@ardenthealth.com
(615) 296-3016
Media Contact:
Rebecca Kirkham
rebecca.kirkham@ardenthealth.com
(615) 296-3000