PACS

PACS Group is a rapid-growth post-acute care roll-up: it operated 321 skilled-nursing/assisted-living facilities across 17 states with operational capacity for 35,379 patients as of December 31, 2025. The growth record is striking -- revenue compounded from $2.40B (2022) to $5.29B in FY2025 (+29.4%), operating income jumped 151.6% to $310M and net income rebounded 243.5% to $192M (EPS $1.22, +221.1%). Returns are high at 20.2% ROE, the cash conversion is real ($404M operating cash flow, +10.0%), and debt is modest -- $245M long-term debt and $4.46M current portion against $197M of cash -- with the business funded largely through long-term triple-net leases (averaging 13 years). The acquire-and-improve model is showing results: mature facilities carry a 4.4 QM Star rating and 95% occupancy.

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