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• Same Unit Revenue Growth: Over 6% increase.

• NICU Days: Increased by 2%.

• Adjusted EBITDA: Just over $49 million.

• Full Year 2025 Adjusted EBITDA Outlook: Raised to $220 million to $240 million.

• Consolidated Revenue: Decreased by just over 7%.

• Non-Same-Unit Activity Decline: About $63 million.

• Same Unit Pricing Increase: Over 4.6%.

• Depreciation and Amortization Expense: Declined to $5.3 million from $10.3 million.

• Other Expense: $4 million, down from $8.1 million.

• Operating Cash Used: $116 million in the first quarter.

• Cash at Quarter End: $99 million.

• Net Debt: $512 million.

• Net Leverage: Just over 2.2 times.

• Accounts Receivable DSO: Just under 48 days, down over four days year over year.

• Warning! GuruFocus has detected 4 Warning Signs with MD.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Pediatrix Medical Group Inc (NYSE:MD) exceeded expectations with a same unit revenue growth of over 6% in the first quarter.

• Adjusted EBITDA was significantly above expectations at just over $49 million, leading to an increased full-year 2025 adjusted EBITDA outlook.

• The company successfully implemented cost management initiatives, resulting in decelerated expense trends for the fourth consecutive quarter.

• Pediatrix Medical Group Inc (NYSE:MD) reported strong cash collections and improved accounts receivable days outstanding, enhancing cash flow.

• The company is actively engaged in strengthening relationships with hospital and health system partners, leading to new contracts and potential growth opportunities.

Negative Points

• Consolidated revenue decreased by over 7% due to non-same-unit activity, primarily from portfolio restructuring impacts.

• Operating cash flow was negative in the first quarter, with $116 million used, primarily due to incentive compensation and benefits payouts.

• There is ongoing uncertainty in the healthcare sector and the broader economy, leading to a conservative stance on future guidance.

• The company faces challenging comparisons for the remainder of 2025, which may impact future performance metrics.

• Despite improvements, the accounts receivable days outstanding remain elevated, indicating potential challenges in collections.

Q & A Highlights

Q: Can you provide updated thoughts on guidance given the first quarter's performance? A: Mark Ordan, CEO: We initially provided conservative guidance due to prevailing uncertainties. The first quarter exceeded expectations, prompting us to raise our guidance. However, we remain cautious due to ongoing uncertainties in healthcare and the economy.