Pediatrix Medical Group, Inc.

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 Pediatrics and Medical Group, Inc. Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star one again. Thank you. I'd now like to turn the call over to Ashley Schneider. Please go ahead.

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 pediatrics' 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 pediatrics 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.pediatrics.com. With that, I will turn the call over to Mark Ordan, Chief Executive Officer of Pediatrics Medical Group.

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 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, put it, access when you need it and hands-on when required. Only pediatrics has a multi-state 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 tele-hybrid medicine and in OBH to help us expand both areas effectively. Last on gross, 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.