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Ardent Health 2025 Net Income Drops to $230.1 Million

Ardent Health reported 2025 net income of $230.1 million, down from $299.7 million in 2024, as higher equity-based compensation and lower cybersecurity-related recoveries offset a year of solid operating results.

Adjusted EBITDA fell to $447.3 million from $498.5 million a year earlier, a decline of $51.2 million. The biggest swing came from cybersecurity incident recoveries, net, which improved to a $22.7 million benefit in 2025 from a $21.5 million benefit in 2024, but that was not enough to counter a sharp increase in equity-based compensation expense, which more than doubled to $39.3 million from $18.0 million.

Interest expense eased to $55.2 million from $65.6 million, while income tax expense declined to $56.2 million from $63.4 million. Depreciation and amortization rose to $155.7 million from $146.3 million. Loss on extinguishment and modification of debt increased to $7.3 million from $3.4 million.

Restructuring, exit and acquisition-related costs were little changed at $13.3 million, compared with $12.8 million in 2024. Epic implementation costs climbed to $4.8 million from $3.2 million, and certain legal matters and related costs fell to $0.9 million from $2.0 million.

For the fourth quarter, net income was $74.3 million. Adjusted EBITDAR was $175.7 million for the quarter and $611.6 million for the full year. Rent expense payable to REITs totaled $41.8 million in the quarter and $164.3 million for 2025.

Compared with 2024, full-year Adjusted EBITDAR rose from the prior-year level implied by the company’s figures, while quarterly rent expense remained a major component of the measure at nearly $42 million. As a result of these announcements, the company's shares have moved 1.39% on the market, and are now trading at a price of $10.91. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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