Pediatrix Medical Group, Inc.

Hello and thank you for standing by. At this time, I would like to welcome everyone to the Q3 2026 Pediatrics 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 would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press the star one again. Thank you. I would now like to turn the conference over to David Haddock, General Counsel. You may begin.

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 historical 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 in 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, David, and good morning, everyone. Also with me today is Kasandra Rossi, our Chief Financial Officer. We are pleased to report a strong quarter with adjusted EBITDA of $85 million. Same unit revenue was positive with equal contributions from volume and pricing, even with pricing reflecting the lapping of the tailwinds we experienced from strong collection activity over the past several quarters. Our overall results for the quarter exceeded our expectations in spite of increasing costs and virtually all areas of providing great healthcare. We are narrowing the range of our full year 2026 outlook to $290 to $300 million in adjusted EBITDA. In the quarter, we repurchased just over 3 million shares of our stock, bringing our total buyback since August of 2025 to 10 million shares and our shares outstanding to 78 million, down from 87 million at the end of the second quarter of 2025. The average price of the 10 million share buyback is $23. For several quarters, I've been asked why our numbers have not been adjusted because of the effect of the lapse of the ACA subsidies. Well, as our results continue to show, we have still seen no clear negative effect to date. Turning from the quarter to what gives us increased confidence in our future are several highlights I'll share. Our annual meeting of all of our practice medical directors two weeks ago had basically one agenda item, care quality. It may seem anomalous for a public company to hold such a meeting and not discuss scheduling, expenses, etc. However, we believe our core is about care and quality, and that's what our 300 directors came to discuss. It was, of course, led by our clinical leadership team, and my contribution was to be proud to be among our extraordinary clinicians. I've recently reported that we take advantage of our strong financial condition to support internal growth and to be in a position to find larger potential value-add outside opportunities. We continue to work on expanding our telehealth services as well as select opportunities in the OB hospitals field. On the latter, announced coding changes are scheduled to take effect in 2027, and we will see then how this area changes in response. Of course, it is not a material part of our business at this point, and we'll plan to report to you as we all learn more. We also know, of course, that the No Surprises Act IDR rules are being reviewed, and we have read about alleged abuses of the process. Pediatrics submit claims that we believe are right down the middle of the spirit and letter of the process rules, and we do not have an outsider determine in their view what is a proper claim. We determine that ourselves. We do not expect the process to be a headwind for us since it is designed to balance fairly the interests of payers and acute care providers who follow the rules. I'll close by returning to quality. Dr. Medel founded Pediatrics with a clear charge, take care of the patient. That is what our patients and our hospital partners expect of us. Whenever we can find ways to improve, we do. and we do this only because we have, by far, the nation's largest team of world-class clinicians in our sector of women's and children's health. I'll now turn to Kasandra.