Pediatrix Medical Group reported its third‑quarter 2025 financial results, posting diluted earnings per share of $0.84 and net revenue of $492.9 million. The company’s adjusted earnings per share rose to $0.67, and adjusted EBITDA reached $87.3 million, both figures surpassing consensus estimates of $0.46 and $484.05 million, respectively.
Year‑over‑year, revenue fell 3.6 % to $492.9 million from $511.2 million in Q3 2024, while net income surged 271 % to $71.7 million from $19.4 million. Diluted EPS increased 261 % to $0.84 from $0.23, and adjusted EPS rose 52 % to $0.67 from $0.44. Operating margin improved to 13.8 % from 6.6 % in the same period last year.
Quarter‑over‑quarter, revenue grew 5.0 % to $492.9 million from $468.8 million in Q2 2025. Net income more than doubled to $71.7 million from $39.3 million, and diluted EPS climbed 82 % to $0.84 from $0.46. Adjusted EPS increased 26 % to $0.67 from $0.53.
The company attributed revenue decline to practice dispositions, while same‑unit revenue grew 8.0 % driven by stronger collections, higher patient acuity—particularly in neonatology—greater administrative fees from hospital partners, and a favorable payer mix. Profitability gains were credited to improved collections, higher acuity, a favorable payer mix, operational consistency, and reduced restructuring expenses, along with a $20.9 million net gain on divested business investments.
Pediatrix raised its full‑year 2025 adjusted EBITDA outlook to $270 million–$290 million, an increase from prior guidance. The firm also announced a $250 million share repurchase program and continues to focus on optimizing collections, payor mix, and exploring practice acquisitions.
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