Pediatrix Medical Group tops Q2 expectations, raises 2025 outlook

FORT LAUDERDALE - On Tuesday, Pediatrix Medical Group, Inc. (NYSE:MD) reported second-quarter adjusted earnings per share of $0.53, exceeding analyst estimates of $0.42, while revenue reached $468.84 million compared to the consensus forecast of $464.37 million.

The healthcare provider’s strong performance was driven by a 6.4% increase in same-unit revenue, with neonatal intensive care unit (NICU) days rising 6.0% compared to the same period last year. The company’s total revenue of $468.8 million was down from $504.3 million in the prior-year period, primarily due to practice dispositions, but this was partially offset by the same-unit growth.

"Our second quarter operating results exceeded our forecast and reflect continuing strong neonatology patient volumes, stable payor mix, and careful operations management," said Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group.

Following the strong quarterly results, Pediatrix raised its full-year 2025 Adjusted EBITDA outlook from a previous range of $220 million to $240 million to a new range of $245 million to $255 million. The company reported Adjusted EBITDA of $73.2 million for the second quarter, up from $57.9 million in the prior-year period.

Same-unit revenue from net reimbursement-related factors increased by 3.5% compared to the prior-year period, reflecting higher patient acuity in hospital-based practices, improved collection activity, and increased administrative fees from hospital partners. Patient volume contributed an additional 2.9% to same-unit revenue growth.

The company ended the quarter with $224.7 million in cash and cash equivalents and generated $138.1 million in cash from continuing operations, compared to $109.3 million during the second quarter of 2024.

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