Pediatrix Medical delivered adjusted EPS of $0.50 for Q4, a 4.9% shortfall against consensus, as net revenues declined 1.7% year over year to $493.8 million but exceeded forecasts by 0.5%. Profit margins were pressured by higher variable practice incentive compensation and weaker same-unit revenues, partly offset by favorable payor mix, improved patient acuity, enhanced collection activity and lower operating expenses.

The company closed December with $375.2 million in cash and cash equivalents, up from $229.9 million a year earlier, with no outstanding borrowings on its revolving credit facility. Total assets rose to $2.25 billion, total debt fell to $597.3 million, shareholders’ equity increased to $865.9 million, and operating cash flow for the quarter was $11.5 million versus $134.8 million the prior year.

Management is forecasting adjusted EBITDA of $280–300 million for fiscal 2026, net income of $155.1–169.7 million, interest expense of $34 million, income tax expense of $57.4–62.8 million, depreciation and amortization of $24.3 million and transformational and restructuring costs of $9.2 million.