PACS combines industry-leading occupancy and rapid post-acute growth with meaningful upside, but unresolved federal billing inquiries make regulatory resolution the defining catalyst and risk.
Overview
PACS Group is a large, decentralized U.S. post-acute-care operator with 387 facilities across 21 states and more than 33,400 patients served daily. It delivers skilled nursing, rehabilitation, assisted living, and related services, with revenue primarily from patient and resident services and more than 70% of patient-service revenue funded by Medicare and Medicaid. Local facility autonomy, supported by centralized systems, has helped generate 90.4% Q2 2026 occupancy versus an approximately 79.5% industry average, while 83.6% of facilities hold CMS 4- or 5-star ratings. Q2 revenue grew 9.1% to $1.43B; net income rose 49.8% to $76.37M, and Adjusted EBITDA increased 24.6% to $166.8M. Management raised FY26 revenue guidance to $5.75B–$5.85B and Adjusted EBITDA guidance to $640M–$660M. **The operating platform and acquisition-led growth are strong, but unresolved DOJ and SEC inquiries are the key valuation overhang.** At $44.50, shares traded at 19.07x forward non-GAAP P/E and 1.95x EV/Sales. Near-term catalysts are Eduro and Omega integration, delivery against raised guidance, potential repurchases, and developments in the federal inquiries.