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Pennant is like a regional operator that combines the senior living facilities of **Brookdale Senior Living** with the home health and hospice services of **Amedisys**.

Think of Pennant as offering a comprehensive range of senior care, from residential communities (similar to **Brookdale Senior Living**) to in-home medical and hospice support (akin to **LHC Group**).

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• Home Health Services: Provides clinical services such as nursing, therapy, and medical social work for patients in their homes.
• Hospice Services: Offers clinical care, education, and counseling for terminally ill patients and their families, addressing physical, spiritual, and psychosocial needs.
• Senior Living Services: Delivers residential accommodations, activities, meals, housekeeping, and daily living assistance for independent or support-requiring seniors.

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The Pennant Group, Inc. (PNTG) primarily sells its healthcare and senior living services directly to individuals.

Its customer base can be categorized as follows:

1. Home Health Patients: Individuals who require various clinical services at home, including nursing, speech, occupational and physical therapy, medical social work, and home health aide services.
2. Hospice Patients and their Families: Terminally ill patients and their families seeking clinical care, education, and counseling services to address their physical, spiritual, and psychosocial needs.
3. Seniors in Senior Living Communities: Seniors who are independent or require some level of support with daily living, utilizing residential accommodations, activities, meals, housekeeping, and assistance with activities of daily living.

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Brent J. Guerisoli, Chief Executive Officer and Chairman of the Board

Brent J. Guerisoli was appointed Chief Executive Officer of The Pennant Group, Inc. effective August 1, 2022, and became Chairman of the Board on January 1, 2025. He previously served as President of the Company from January 2021 until his appointment as CEO. Prior to that, he was President of Cornerstone Healthcare, Pennant's home health and hospice segment, where he led transformational growth, strong financial performance, and enhanced clinical excellence. Mr. Guerisoli joined the company in 2012 and has made significant contributions to the financial, clinical, and cultural achievements of Cornerstone, playing a key role in leadership recruiting and training. Throughout his tenure, he has developed numerous leaders and directed the organization's growth efforts across several states. Before joining Pennant, Mr. Guerisoli completed an executive training program and served as a business manager at AT&T.

Lynette Walbom, Chief Financial Officer

Lynette Walbom was appointed Chief Financial Officer of The Pennant Group, Inc. on May 22, 2023. Prior to joining Pennant, Ms. Walbom served as Vice President of Financial Reporting and Tax for Raising Cane's Restaurants, LLC, a national restaurant chain that more than doubled in size during her time there. At Raising Cane's, her responsibilities included financial reporting, acquisitions, tax, accounting systems, and equity management. Before her role at Raising Cane's, Ms. Walbom was the Chief Financial Officer of a family office with investments across several industries, including financial services, computer services, real estate development, and franchising. She began her 23-year career in accounting as a public company auditor at Deloitte. She was introduced to Pennant by a board member with whom she had worked for approximately 13 years in his family office.

John J. Gochnour, President and Chief Operating Officer

John J. Gochnour was appointed Chief Operating Officer of Pennant upon its formation in 2019 and subsequently became President of Pennant on August 1, 2022. Before the formation of Pennant, Mr. Gochnour served as Executive Vice President and General Counsel of Cornerstone starting in January 2013. In his current role, he oversees the operational execution across the company's two primary segments and is responsible for supporting field operations and the ongoing development of service center resources.

Kirk S. Cheney, Executive Vice President, General Counsel and Corporate Secretary

Kirk S. Cheney serves as the Company's Executive Vice President, General Counsel, and Corporate Secretary. In this capacity, Mr. Cheney is responsible for overseeing acquisitions, government relations, and the legal, regulatory, and risk management functions for the company. He also leads Pennant's Service Center.

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1. Regulatory and Reimbursement Changes: Pennant's operations are highly susceptible to changes in government regulations and reimbursement policies, especially those related to Medicare, which constitutes a significant portion of the company's revenue. Adverse adjustments to Medicare reimbursement rates or policies could directly impact the company's financial stability and profitability. For example, a recent proposal by the Centers for Medicare and Medicaid Services (CMS) to raise Medicare Advantage payments by less than anticipated caused a sector-wide downturn, affecting PNTG's shares.

2. Staffing Shortages and Rising Labor Costs: Both the home health/hospice and senior living industries are labor-intensive, making them vulnerable to staffing challenges, labor shortages, and increasing wage costs. The company's ability to attract and retain qualified clinical and caregiving staff is crucial for operational efficiency and service quality. High employee turnover, competition for skilled workers, and the potential for increased costs associated with wages and benefits could strain profitability and hinder consistent service delivery.

3. Integration Risks from Acquisitions and High Debt Levels: Pennant's growth strategy often involves acquisitions, which introduce integration risks. The process of integrating newly acquired locations can lead to operational disruptions, such as "initial noise" and "choppiness in early results," requiring additional support and potentially impacting financial forecasts. Furthermore, funding these acquisitions can lead to increased indebtedness. Pennant's significant debt levels, which exceed its cash on hand, combined with a high net-debt-to-EBITDA ratio, indicate overleveraging, making incremental borrowing more expensive and increasing financial risk, particularly if profitability declines or market conditions worsen.

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Home Health Services: The U.S. home healthcare market size was estimated at USD 162.35 billion in 2024 and is expected to reach USD 381.40 billion by 2033.

Hospice Services: The U.S. hospice market size was estimated at USD 29.92 billion in 2024 and is projected to grow to USD 39.09 billion by 2030.

Senior Living Services: The U.S. senior living market size was exhibited at USD 923.75 billion in 2023 and is projected to reach approximately USD 1,391.23 billion by 2033.

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• Strategic Acquisitions and Integration: Pennant has recently completed significant acquisitions, including Signature Healthcare at Home and over 50 locations from UnitedHealth and Amedisys, which are anticipated to be meaningful contributors to revenue in 2026 and beyond. The company is intensely focused on integrating these newly acquired assets and optimizing their performance, which is a key part of its growth strategy.
• Organic Growth in Home Health and Hospice Services: The home health and hospice segment consistently serves as a primary engine for revenue growth. This growth is fueled by increased home health admissions and a rising hospice average daily census, alongside strong same-store Medicare admissions and an increase in Medicare revenue per episode.
• Enhanced Senior Living Occupancy and Pricing: The senior living segment is expected to contribute to revenue growth through improved occupancy rates and strategic price increases. Pennant has reported an increase in both all-store and same-store occupancy, coupled with a rise in average monthly revenue per occupied room.
• Focus on Operational Excellence and Clinical Quality: Pennant's commitment to operational excellence and high clinical quality is a fundamental driver of growth. By delivering strong clinical outcomes, such as higher CMS star ratings, the company aims to be the preferred provider in its communities, attracting more patients and payors, and thereby supporting organic revenue expansion.

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Share Issuance

• The number of shares issued and outstanding has generally increased over the past few years. As of December 31, 2025, there were 34,878,000 shares issued and outstanding, compared to 34,626,000 shares at December 31, 2024.
• At December 31, 2024, there were 34,670,000 shares issued and outstanding, which was an increase from 34,373,000 shares issued and outstanding at December 31, 2023.
• As of February 28, 2022, 28,529,556 shares of common stock were outstanding.

Outbound Investments

• The company made significant acquisitions, including assets from UnitedHealth Group and Amedisys, reflecting a strategy of growth through acquiring additional operations in existing and new markets.
• Investing cash outflows in 2025 significantly exceeded operating cash inflows, driven by acquisition-related growth.

Capital Expenditures

• Capital expenditures for the fourth quarter of 2025 were $3.5 million, an increase of 4.0% year-over-year.
• For the full year 2025, capital expenditures absorbed a large share of operating cash flow, totaling $12.0 million.
• Pennant Group invested $3.6 million in capital expenditures in Q4 2025, funding long-term assets and infrastructure.