Ardent Health Partners reported a solid start to 2025, signaling resilience in a mixed operating environment. Q1 2025 revenue rose 4% year over year to approximately $1.50 billion, led by a sizable volume expansion with admissions up 7.6% and inpatient surgeries up 3.4%. Adjusted admissions increased 2.7%, aligning with management's 2025 guidance. Net patient service revenue per adjusted admission rose 1.2%, while excluding the infusion/oncology transfer (roughly $10 million of revenue that was breakeven to EBITDA) would have yielded higher growth on both revenue and NPR per AA. Management attributes volume strength to durable market demand and operational improvements, including transfer-center optimization and stronger ambulatory footings following the NextCare urgent care acquisition (18 clinics acquired on January 1, 2025).
The quarter delivered adjusted EBITDA of $98 million, up 2.5% year over year, with supply costs as a percent of revenue down 60 basis points versus prior year. Management projects 100–200 basis points of margin expansion over the next 3–4 years through scale, supply-chain optimization, and other cost-reduction initiatives. The company reaffirmed its 2025 financial outlook and remains focused on expanding ambulatory access and pursuing M&A opportunities with a disciplined balance sheet, aided by approximately $500 million of cash and a leverage target near 3x. Management signaled willingness to partner with academic and non-profit institutions, and noted the New Mexico DPP program remains a potential upside pending CMS approval.
On the liquidity front, Ardent reported solid liquidity, a focus on deleveraging through earnings progression, and a favorable credit outcome with a recent credit-rating upgrade to B+ from B. However, cash flow from operations was negative in Q1 (operating cash flow of roughly -$25 million) due to normal seasonality and working-capital dynamics, including working-capital movements related to payor denials and year-end accrual timing. Investors should monitor working-capital dynamics, payer-denial trends, tariff exposure, and the progress of high-priority growth initiatives (NextCare integration, outpatient expansion, inter-market M&A opportunities) over the balance of 2025 to evaluate earnings sustainability and the pace of net leverage reduction.