The Pennant Group, Inc.

day and thank you for standing by. Welcome to the Pennant Group second quarter 2025 earnings call. At this time all participants are in a listen-only mode. After the speaker's presentation there will be a question and answer session. To ask a question during the session you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Kirk Cheney, Executive Vice President. Please go ahead.

Thank you, Didi. Welcome, everyone, and thank you for joining us today. Here with me today, I have Brent Garasoli, our CEO, John Gochner, our President and COO, and Lynette Waldom, our CFO. Before we begin, I have a few housekeeping matters. We filed our earnings press release in 10-Q yesterday. This announcement is available on the investor relations section of our website at www.pennantgroup.com. A replay of this call will also be available on our website until 5 p.m. Mountain Time on August 6, 2026. We want to remind anyone who may be listening to a replay of this call that all statements are made as of today, August 7, 2025, and these statements will not be updated after today's call. Also, any forward-looking statements made today are based on management's current expectations about our business and the environment in which we operate. These statements are subject to risks and uncertainties that could cause our actual results to materially differ from those expressed or implied on today's call. Listeners should not place undue reliance on forward-looking statements and are encouraged to review our SEC filings for a more complete discussion of factors that could impact our results. Except as required by federal securities laws, we do not publicly update or revise any forward-looking statements where changes arise from new information, future events, or for any other reasons. In addition, the Pennant Group Incorporated is a holding company with no direct operating assets, employees, or revenues. Certain of our independent subsidiaries, collectively referred to as the service center, provide administrative services to the other operating subsidiaries through contractual relationships. The words Pennant, Company, We, Our, and Us refer to the Pennant Group Incorporated and its consolidated subsidiaries. Our operating subsidiaries and the service center are operated by separate independent companies that have their own management, employees, and assets. References herein to the consolidated company and its assets and activities, as well as the use of the terms we, us, our, and similar terms, do not imply that the tenant group incorporated has direct operating assets, employees, or revenues, or that any other subsidiaries are operated by the tenant group. Also, we supplement our GAAP reporting with non-GAAP metrics. When viewed together with our GAAP results, we believe that these measures can provide a more complete understanding of our business, but they should not be relied upon to the exclusion of GAAP reports. A Gap to Non-Gap Reconciliation is available in yesterday's press release and is available in our 10Q. And with that, I'll turn the call over to Brent Garasoli, our CEO.

Brent? Thanks, Kirk, and welcome, everyone, to our second quarter 2025 earnings call. Building on a robust first quarter, we are pleased to report continued strong results and momentum across each of our service lines. Our positive performance reflects the consistent effort we've applied to every aspect of our business, through our five key focus areas, leadership development, clinical excellence, employee engagement, margin, and growth. We have been talking about these initiatives on our earnings calls for many quarters, and these focus areas continue to be the catalyst for relentless improvement. In Q2, we generated revenue of $219.5 million, an increase of $50.8 million, or 30.1%. and adjusted EBITDA of 16.4 million, an increase of 3.2 million, or 24.5% each over the prior year quarter. We are operators. We have succeeded and continued to perform in all kinds of environments through inflation, reimbursement cuts, a global pandemic, regulatory changes, multiple presidential administrations, market disruptions, emerging payer trends, and more. Through it all, we have grown and thrived and created more and more opportunities for local teams to build amazing operations that benefit their communities, residents, and patients. At this moment, CMS's misguided and counterproductive 2026 proposed home health rule has generated negative investor sentiment about home health. We agree that the proposed rule is seriously flawed, and we are engaged in an urgent effort to improve the final rule. But we would also urge you to dig beneath that narrative and examine the strength of our home health operations and the diversity of our business. Despite years of flat or modestly negative rate updates, our home health business has continued to grow organically and by acquisition. Our hospice service line continues to achieve record-breaking success. Our senior living operations are now in a much stronger position and have positive momentum. Pennant continues its steady upward trajectory. Our announced purchase of divested assets from Amedisys and UnitedHealth Group demonstrates the abiding potential we continue to see in home health. Home health services are a vital component of America's healthcare strategy. Their importance will only increase as more seniors age into these services, and governmental leaders look for solutions to reduce the nation's overall healthcare spend. Patients want to receive care in the home, Lawmakers want to reduce deficits and improve health outcomes. Home health is a solution for both issues. Regarding our acquisition connected to the Medicis United Health divestiture, we understand that just moments ago an order was filed on the court's docket in the District of Maryland outlining United's settlement with the Department of Justice in the antitrust matter. As you will see in the order, we are purchasing a large portfolio of agencies from United and Amedisys, primarily in Tennessee, with additional locations in Alabama and Georgia. We view it as a very compelling transaction that will take us into attractive markets and create a center of strength in the Southeast. We are well prepared to execute on this expansion as we have continued to deepen our leadership bench through our CEO in training and clinical leadership training programs, built momentum across our business lines, and have a healthy balance sheet with ample capacity. John will provide more specific details on the acquisition in a moment. As announced in yesterday's press release, we are raising annual guidance based on the momentum in the business, the operations we have added or expanded, and the significant upside in our existing operations. We anticipate full-year revenue in the range of $852.8 million to $887.6 million and adjusted earnings per share in the range of $1.09 to $1.15. The midpoint of $1.12 represents a 5-cent increase over our original 2025 guidance and a 19.1% increase over our 2024 adjusted earnings per share. With today's announcement of the UnitedHealth-Amedisys settlement, we anticipate updating guidance once again as we gain additional clarity regarding closing conditions and timing. With solid performance across the portfolio, exciting growth opportunities, and a healthy balance sheet, we are excited for the remainder of 2025 and beyond. With that, I'll turn the call over to John to provide more detail on our second quarter operational results.