Consolidated Results of Operations, As Reported and As Adjusted – Three-month periods ended September 30, 2025 and 2024:
Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $373.0 million, or $5.86 per diluted share, during the third quarter of 2025, as compared to $258.7 million, or $3.80 per diluted share, during the third quarter of 2024. Net revenues increased by 13.4% to $4.495 billion during the third quarter of 2025, as compared to $3.963 billion during the third quarter of 2024.
As reflected on the Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”), our adjusted net income attributable to UHS during the third quarter of 2025 was $362.3 million, or $5.69 per diluted share, as compared to $252.5 million, or $3.71 per diluted share, during the third quarter of 2024.
Included in our reported and adjusted net income attributable to UHS during the third quarter of 2025 were the following items which werenot included in our 2025 operating results forecast, as previously disclosed on July 28, 2025: (i) $90 million of pre-tax reimbursements (net of related provider taxes), covering the period of October 1, 2024 through September 30, 2025, in connection with a recently approved Medicaid state directed payment program in Washington, D.C., and; (ii) a $35 million pre-tax charge incurred to increase our reserves for self-insured professional and general liabilities resulting from unfavorable claims' trends.
As reflected on the Supplemental Schedule, included in our reported results during the third quarter of 2025 were: (i) an unrealized after-tax gain of $10.0 million, or $.16 per diluted share ($13.1 million pre-tax), resulting from an increase in the market value of certain equity securities (included in “Other (income) expense, net”), and; (ii) a favorable net after-tax impact of $0.6 million, or $.01 per diluted share, resulting from the net tax benefit recorded in connection with “ASU 2016-09”, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, net of the impact of executive compensation limitations pursuant to IRC section 162(m).
As reflected on the Supplemental Schedule, included in our reported results during the third quarter of 2024 were: (i) an unrealized after-tax gain of $2.3 million, or $.03 per diluted share ($3.0 million pre-tax), resulting from an increase in the market value of certain equity securities, and; (ii) a favorable after-tax impact of $3.9 million, or $.06 per diluted share, resulting from the tax benefit recorded in connection ASU 2016-09.
As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization (“EBITDA net of NCI”, NCI is net income attributable to noncontrolling interests), was $684.2 million during the third quarter of 2025, as compared to $528.6 million during the third quarter of 2024. Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impact of other (income) expense, net, was $670.6 million during the third quarter of 2025, as compared to $526.5 million during the third quarter of 2024.
Consolidated Results of Operations, As Reported and As Adjusted – Nine-month periods ended September 30, 2025 and 2024:
Reported net income attributable to UHS was $1.043 billion, or $16.07 per diluted share, during the first nine months of 2025, as compared to $809.7 million, or $11.88 per diluted share, during the comparable period of 2024. Net revenues increased by 9.9% to $12.879 billion during the first nine months of 2025, as compared to $11.714 billion during the comparable period of 2024.
As reflected on the Supplemental Schedule, our adjusted net income attributable to UHS during the first nine months of 2025 was $1.030 billion, or $15.87 per diluted share, as compared to $798.2 million, or $11.71 per diluted share, during the comparable period of 2024.
As reflected on the Supplemental Schedule, included in our reported results during the first nine months of 2025 were: (i) an unrealized after-tax gain of $11.3 million, or $.17 per diluted share ($14.7 million pre-tax), resulting from an increase in the market value of certain equity securities, and; (ii) a favorable net after-tax impact of $1.9 million, or $.03 per diluted share, resulting from the net tax benefit recorded in connection with ASU 2016-09.
As reflected on the Supplemental Schedule, included in our reported results during the first nine months of 2024 were: (i) an unrealized after-tax loss of $4.0 million, or $.06 per diluted share ($5.3 million pre-tax), resulting from a decrease in the market value of certain equity securities, and; (ii) a favorable after-tax impact of $15.5 million, or $.23 per diluted share, resulting from the tax benefit recorded in connection with ASU 2016-09.
As calculated on the attached Supplemental Schedule, our EBITDA net of NCI, was $1.939 billion during the first nine months of 2025, as compared to $1.628 billion during the comparable period of 2024. Our Adjusted EBITDA net of NCI, was $1.912 billion during the first nine months of 2025, as compared to $1.631 billion during the comparable period of 2024.
Acute Care Services – Three and nine-month periods ended September 30, 2025 and 2024:
During the third quarter of 2025, at our acute care hospitals owned during both periods (“same facility basis”), adjusted admissions (adjusted for outpatient activity) increased by 2.0% while adjusted patient days increased by 0.4%, as compared to the third quarter of 2024. At these facilities, during the third quarter of 2025, net revenue per adjusted admission increased by 9.8% while net revenue per adjusted patient day increased by 11.5%, as compared to the third quarter of 2024. Net revenues generated from our acute care services, on a same facility basis, increased by 12.8% during the third quarter of 2025, as compared to the third quarter of 2024.
During the nine-month period ended September 30, 2025, at our acute care hospitals on a same facility basis, adjusted admissions increased by 2.1% while adjusted patient days increased by 0.6%, as compared to the comparable period of 2024. At these facilities, during the first nine months of 2025, net revenue per adjusted admission increased by 5.4% while net revenue per adjusted patient day increased by 7.0%, as compared to the comparable period of 2024. Net revenues generated from our acute care services, on a same facility basis, increased by 9.1% during the first nine months of 2025, as compared to the comparable period of 2024.
Behavioral Health Care Services – Three and nine-month periods ended September 30, 2025 and 2024:
During the third quarter of 2025, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 0.5% while adjusted patient days increased by 1.3%, as compared to the third quarter of 2024. At these facilities, during the third quarter of 2025, net revenue per adjusted admission increased by 8.8% and net revenue per adjusted patient day increased by 7.9%, as compared to the third quarter of 2024. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 9.3% during the third quarter of 2025, as compared to the third quarter of 2024.
During the first nine months of 2025, at our behavioral health care facilities on a same facility basis, adjusted admissions decreased by 0.2% while adjusted patient days increased by 0.7%, as compared to the comparable period of 2024. At these facilities, during the first nine months of 2025, net revenue per adjusted admission increased by 8.2% and net revenue per adjusted patient day increased by 7.2%, as compared to the comparable period of 2024. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 7.9% during the first nine months of 2025, as compared to the comparable period of 2024.
Net Cash Provided by Operating Activities and Liquidity:
Net Cash Provided by Operating Activities:
During the nine-month period ended September 30, 2025, our net cash provided by operating activities was $1.290 billion as compared to $1.409 billion during the first nine months of 2024. The $119 million net decrease in our net cash provided by operating activities consisted of: (i) a favorable change of $257 million resulting from an increase in net income plus/minus depreciation and amortization expense, stock-based compensation expense and gains/losses on sales of assets and businesses, offset by; (ii) an unfavorable change of $306 million in accounts receivable (which includes the above-mentioned $90 million of net reimbursements recorded during the third quarter of 2025, which we expect will be received during the fourth quarter of 2025, in connection with a recently approved Medicaid state directed payment program in Washington, D.C.); (iii) an unfavorable change of $41 million in payments made in settlement of self-insurance claims, net of commercial insurance reimbursements, and; (iv) an unfavorable change of $28 million in accrued and deferred income taxes.
Liquidity:
As of September 30, 2025, we had $965 million of aggregate available borrowing capacity pursuant to our $1.3 billion revolving credit facility, net of outstanding borrowings and letters of credit.
Increased Authorization to Stock Repurchase Program:
On October 27, 2025, our Board of Directors authorized a $1.5 billion increase to our stock repurchase program. Pursuant to this program, which including today's increased authorization has a current aggregate available repurchase authorization of $1.759 billion, shares of our Class B Common Stock may be repurchased, from time to time as conditions allow, on the open market or in negotiated private transactions.
Pursuant to this program, during the third quarter of 2025, we have repurchased 1.315 million shares at an aggregate cost of approximately $234.3 million (average price of approximately $178 per share). During the first nine months of 2025, we have repurchased 3.190 million shares at an aggregate cost of approximately $565.8 million (average price of approximately $177 per share).
Revised 2025 Operating Results Forecast:
Based upon the operating trends and financial results experienced during the first nine months of 2025, as well as the recent approval of a new Medicaid supplemental payment program in Washington, D.C., as indicated on the Revised Forecast table below, we are increasing our operating results forecast range for consolidated net revenues, adjusted earnings before interest, taxes, depreciation & amortization, and the impacts of other income/expense and net income attributable to noncontrolling interests (“Adjusted EBITDA, net of NCI”), and adjusted net income attributable to UHS per diluted share (“Adjusted EPS-diluted”) for the year ended December 31, 2025.
The tables below include our revised full year 2025 operating results forecast, as well as our previously revised 2025 operating results forecast which was disclosed on July 28, 2025.
Revised Forecast Previous Forecast For the Year Ended For the Year Ended December 31, 2025 December 31, 2025 Low High Low HighNet revenues $17.306 billion $17.445 billion $17.096 billion $17.312 billionAdjusted EBITDA, net of NCI $2.569 billion $2.619 billion $2.458 billion $2.543 billionAdjusted EPS – diluted $21.50 per share $22.10 per share $20.00 per share $21.00 per share
— The midpoint of our revised 2025 forecasted net revenues represents an increase of 1.0% over the midpoint our previous range of 2025 forecasted net revenues.
— The midpoint of our revised 2025 forecasted Adjusted EBITDA, net of NCI, represents an increase of 3.9% over the midpoint of our previous range of 2025 forecasted Adjusted EBITDA, net of NCI.
— The midpoint of our revised 2025 forecasted Adjusted EPS-diluted represents an increase of 6.4% over the midpoint of our previous range of 2025 forecasted Adjusted EPS-diluted.
Because we do not believe we can forecast certain items with sufficient accuracy, our 2025 revised forecasted range of Adjusted EBITDA, net of NCI, net income attributable to UHS, and Adjusted EPS-diluted, exclude the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as changes in the market value of shares of certain equity securities, the impact of ASU 2016-09, and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, other amounts that may be reflected in the current or prior year financial statements that relate to prior periods, and the impact of share repurchases that differ from our forecasted assumptions. It is also subject to certain conditions including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.Adjusted EBITDA net of NCI, is a non-GAAP financial measure and should not be considered a measure of financial performance under GAAP. We believe Adjusted EBITDA net of NCI is helpful to our investors as a measure of our operating performance. Please see the Supplemental Non-GAAP Disclosures – 2025 Revised Operating Results Forecast schedule as included herein for additional information and a reconciliation of our 2025 revised forecasted range of adjusted net income attributable to UHS to our 2025 revised forecasted range of Adjusted EBITDA net of NCI.
Conference call information:
We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on October 28, 2025. A live webcast of the call will be available on our website atwww.uhs.com. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. A replay of the call will be available for one full year following the live call.
General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:
One of the nation's largest and most respected providers of hospital and healthcare services, Universal Health Services, Inc. (the “Company”) has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, our annual revenues during 2024 were $15.8 billion. UHS ranked #271 on the Fortune 500; and #355 on Forbes' list of America's Largest Public Companies. In 2025, UHS was again recognized as one of the World's Most Admired Companies by Fortune.
Our operating philosophy is as effective today as it was upon the Company's founding in 1979, enabling us to provide compassionate care to our patients and their loved ones. Our strategy includes building or acquiring high quality hospitals in rapidly growing markets, investing in the people and equipment needed to allow each facility to thrive, and becoming the leading healthcare provider in each community we serve.
Headquartered in King of Prussia, PA, UHS has approximately 99,300 employees and, through its subsidiaries, operates 29 inpatient acute care hospitals, 345 inpatient behavioral health facilities, 156 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 39 states, Washington, D.C., the United Kingdom and Puerto Rico. We have changed the method of our outpatient behavioral health care facility counts during the third quarter of 2025 and substantially all of the increase from prior periods relates to that change in convention.
A wholly-owned subsidiary of UHS acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE:UHT). For additional information visit www.uhs.com.
This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarter ended June 30, 2025 and in Item 1A-Risk Factors, and Item 7-Forward-Looking Statements and Risk Factors, in our Form 10-K for the year ended December 31, 2024), may cause the results to differ materially from those anticipated in the forward-looking statements. These statements are subject to risks and uncertainties and therefore actual results may differ materially. Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Many of the factors that could affect our future results are beyond our control or ability to predict, including, but not limited to:
— A significant portion of our revenues are derived from federal and state government programs including the Medicare and Medicaid programs. Payments from these programs are subject to statutory and regulatory changes, administrative rulings, interpretations and determinations, requirements for utilization review, and federal and state funding restrictions. Changes to these programs could materially affect program payments which could materially impact our results of operations. In addition, we receive substantial reimbursement from multiple states in connection with various supplemental Medicaid payment programs. Failure to renew these programs beyond their scheduled termination dates, failure of the public hospitals to provide the necessary Inter-Governmental Transfers for the states' share of the Medicaid disproportionate share hospital programs, and the failure of our hospitals that currently receive supplemental Medicaid revenues to qualify for future funds under these programs could cause our actual results of operations for the year ended December 31, 2025 to differ materially from our 2025 revised operating results forecast.
— Legislation adopted on July 4, 2025, attaches work and community service requirements to eligibility for Medicaid benefits that will have the effect of limiting Medicaid enrollment and expenditures. That legislation also places limits on provider fees used to increase federal Medicaid funding to states and eliminates certain exchange premium tax credits beyond 2025. As these provisions become effective over the next several years, they may be expected to reduce our revenues and likely increase the level of uncompensated care provided by our facilities.
— Potential unfavorable effects that the shutdown of the federal government, and/or the impact of any related negotiated agreements to end the shutdown, may have on our future results of operations and financial condition.
— The increase in interest rates during the past few years has increased our interest expense significantly thereby reducing our free cash flow. As such, although interest rates have moderated more recently, the effects of increased borrowing rates have adversely impacted our results of operations, financial condition and cash flows. We cannot predict future changes to interest rates, however, significant increases in our borrowing rates could have a material unfavorable impact on our future results of operations and our ability to access the capital markets on favorable terms.
— Changes in laws or policies governing the terms of foreign trade, and in particular, increased trade restrictions, tariffs or taxes on imports from where our products or materials are made (either directly or through our suppliers) could have an impact on our competitive position, business operations and financial results.
— The outcome of known and unknown litigation, liabilities and other claims asserted against us and/or our subsidiaries, including, but not limited to, the matters related to Cumberland Hospital for Children and Adolescents, located in New Kent, Virginia, as previously disclosed in various filings including, most recently, our Form 10-Q for the quarterly period ended June 30, 2025, and the verdict in Washoe County, Nevada, against certain subsidiaries of ours, as previously disclosed on Form 8-K as filed on September 29, 2025. Although we can make no assurances regarding the ultimate outcome of these matters, or what damages will ultimately be awarded, the final resolution of these matters could have a material adverse effect on the Company.
We believe that adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share, EBITDA net of NCI and Adjusted EBITDA net of NCI, which are non-GAAP financial measures (“GAAP” is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect of material items impacting our net income attributable to UHS, such as, changes in the market value of shares of certain equity securities, the impact of ASU 2016-09, net of the impact of executive compensation limitations pursuant to IRC section 162(m), and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income attributable to UHS, as determined in accordance with GAAP, and as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-Q for the quarter ended June 30, 2025 and our Report on Form 10-K for the year ended December 31, 2024. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.
Universal Health Services, Inc.Consolidated Statements of Income(in thousands, except per share amounts)(unaudited) Three months Nine months ended September 30, ended September 30, 2025 2024 2025 2024Net revenues $4,495,245 $3,963,027 $12,878,781 $11,714,213Operating charges:Salaries, wages and benefits 2,071,898 1,912,308 6,037,953 5,611,304Other operating expenses 1,294,721 1,090,197 3,563,039 3,165,483Supplies expense 414,583 390,250 1,236,249 1,181,886Depreciation and amortization 155,060 149,567 455,409 438,050Lease and rental expense 37,295 36,540 109,348 108,165 3,973,557 3,578,862 11,401,998 10,504,888Income from operations 521,688 384,165 1,476,783 1,209,325Interest expense, net 38,431 44,660 113,851 146,385Other (income) expense, net (13,629) (2,028) (27,767) 3,315Income before income taxes 496,886 341,533 1,390,699 1,059,625Provision for income taxes 117,781 75,623 327,354 233,563Net income 379,105 265,910 1,063,345 826,062Less: Net income (loss) attributable tononcontrolling interests (“NCI”) 6,148 7,196 20,490 16,362Net income attributable to UHS $372,957 $258,714 $1,042,855 $809,700Basic earnings per share attributable to UHS (a) $5.92 $3.89 $16.27 $12.11Diluted earnings per share attributable to UHS (a) $5.86 $3.80 $16.07 $11.88
Universal Health Services, Inc.Footnotes to Consolidated Statements of Income(in thousands, except per share amounts)(unaudited) Three months Nine months(a) Earnings per share calculation: ended September 30, ended September 30, 2025 2024 2025 2024Basic and diluted:Net income attributable to UHS $372,957 $258,714 $1,042,855 $809,700Less: Net income attributable to unvested restricted share grants 0 0 0 (50)Net income attributable to UHS – basic and diluted $372,957 $258,714 $1,042,855 $809,650Weighted average number of common shares – basic 62,974 66,537 64,100 66,873Basic earnings per share attributable to UHS: $5.92 $3.89 $16.27 $12.11Weighted average number of common shares 62,974 66,537 64,100 66,873Add: Other share equivalents 689 1,571 797 1,297Weighted average number of common shares and equiv. – diluted 63,663 68,108 64,897 68,170Diluted earnings per share attributable to UHS: $5.86 $3.80 $16.07 $11.88
Universal Health Services, Inc.Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”)For the Three Months ended September 30, 2025 and 2024(in thousands, except per share amounts)(unaudited)Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization(“EBITDA/Adjusted EBITDA net of NCI”) Three months ended % Net Three months ended % Net September 30, 2025 revenues September 30, 2024 revenuesNet income attributable to UHS $372,957 $258,714Depreciation and amortization 155,060 149,567Interest expense, net 38,431 44,660Provision for income taxes 117,781 75,623EBITDA net of NCI $684,229 15.2% $528,564 13.3%Other (income) expense, net (13,629) (2,028)Adjusted EBITDA net of NCI $670,600 14.9% $526,536 13.3%Net revenues $4,495,245 $3,963,027Calculation of Adjusted Net Income Attributable to UHS Three months ended Three months ended September 30, 2025 September 30, 2024 Per Per Amount Diluted Share Amount Diluted ShareNet income attributable to UHS $372,957 $5.86 $258,714 $3.80Plus/minus after-tax adjustments:Unrealized (gain) loss on equity securities (10,043) (0.16) (2,275) (0.03)Impact of ASU 2016-09, net (623) (0.01) (3,928) (0.06)Subtotal adjustments (10,666) (0.17) (6,203) (0.09)Adjusted net income attributable to UHS $362,291 $5.69 $252,511 $3.71
Universal Health Services, Inc.Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”)For the Nine Months ended September 30, 2025 and 2024(in thousands, except per share amounts)(unaudited)Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization(“EBITDA/Adjusted EBITDA net of NCI”) Nine months ended % Net Nine months ended % Net September 30, 2025 revenues September 30, 2024 revenuesNet income attributable to UHS $1,042,855 $809,700Depreciation and amortization 455,409 438,050Interest expense, net 113,851 146,385Provision for income taxes 327,354 233,563EBITDA net of NCI $1,939,469 15.1% $1,627,698 13.9%Other (income) expense, net (27,767) 3,315Adjusted EBITDA net of NCI $1,911,702 14.8% $1,631,013 13.9%Net revenues $12,878,781 $11,714,213Calculation of Adjusted Net Income Attributable to UHS Nine months ended Nine months ended September 30, 2025 September 30, 2024 Per Per Amount Diluted Share Amount Diluted ShareNet income attributable to UHS $1,042,855 $16.07 $809,700 $11.88Plus/minus after-tax adjustments:Unrealized (gain) loss on equity securities (11,292) (0.17) 4,038 0.06Impact of ASU 2016-09, net (1,880) (0.03) (15,540) (0.23)Subtotal adjustments (13,172) (0.20) (11,502) (0.17)Adjusted net income attributable to UHS $1,029,683 $15.87 $798,198 $11.71
Universal Health Services, Inc.Condensed Consolidated Balance Sheets(in thousands)(unaudited) September 30, December 31, 2025 2024AssetsCurrent assets:Cash and cash equivalents $ 112,895 $ 125,983Accounts receivable, net 2,585,335 2,177,751Supplies 226,655 220,940Other current assets 333,077 291,614Total current assets 3,257,962 2,816,288Property and equipment 13,449,399 12,643,283Less: accumulated depreciation (6,476,366) (6,071,058) 6,973,033 6,572,225Other assets:Goodwill 3,989,370 3,932,879Deferred income taxes 145,319 118,449Right of use assets-operating leases 382,430 418,719Deferred charges 9,363 9,404Other 586,447 601,785Total Assets $ 15,343,924 $ 14,469,749Liabilities and Stockholders' EquityCurrent liabilities:Current maturities of long-term debt $ 740,186 $ 40,059Accounts payable and other liabilities 2,332,418 2,081,479Operating lease liabilities 73,334 74,649Federal and state taxes 13,252 14,219Total current liabilities 3,159,190 2,210,406Other noncurrent liabilities 589,854 655,806Operating lease liabilities noncurrent 346,467 376,239Long-term debt 3,950,934 4,464,482Redeemable noncontrolling interest 66,982 13,293UHS common stockholders' equity 7,169,693 6,666,207Noncontrolling interest 60,804 83,316Total equity 7,230,497 6,749,523Total Liabilities and Stockholders' Equity $ 15,343,924 $ 14,469,749
Universal Health Services, Inc.Consolidated Statements of Cash Flows(in thousands)(unaudited) Nine months ended September 30, 2025 2024Cash Flows from Operating Activities:Net income $1,063,345 $826,062Adjustments to reconcile net income to netcash provided by operating activities:Depreciation & amortization 455,409 438,050Loss (gain) on sales of assets and businesses 2,833 (5,124)Costs related to extinguishment of debt 0 3,158Stock-based compensation expense 70,586 72,727Changes in assets & liabilities, net of effects fromacquisitions and dispositions:Accounts receivable (294,210) 11,703Accrued interest 7,052 (1,762)Accrued and deferred income taxes (39,287) (10,949)Other working capital accounts 20,415 1,329Other assets and deferred charges (29,629) (5,621)Other, net 19,114 25,732Accrued insurance expense, net of commercial premiums paid 177,054 175,104Payments made in settlement of self-insurance claims, net of commercial insurance reimbursements (162,978) (121,745)Net cash provided by operating activities 1,289,704 1,408,664Cash Flows from Investing Activities:Property and equipment additions (733,932) (697,865)Proceeds received from sales of assets and businesses 2,980 30,219Acquisition of businesses and property (47,772) 0Outflows from foreign exchange contracts that hedge our net U.K. investment (49,351) (35,667)Costs incurred for purchase and development of enterprise resource planning application (18,676) 0Decrease in capital reserves of commercial insurance subsidiary 100 197Net cash used in investing activities (846,651) (703,116)Cash Flows from Financing Activities:Repayments of long-term debt (27,791) (2,471,515)Additional borrowings 208,986 2,210,248Financing costs (382) (9,992)Repurchase of common shares (615,941) (420,588)Dividends paid (38,902) (40,302)Issuance of common stock 12,119 10,864Profit distributions to noncontrolling interests (10,409) (5,791)Purchase (sale) of ownership interests by (from) minority members 18,728 8,959Net cash used in financing activities (453,592) (718,117)Effect of exchange rate changes on cash, cash equivalents and restricted cash 2,390 2,696Decrease in cash, cash equivalents and restricted cash (8,149) (9,873)Cash, cash equivalents and restricted cash, beginning of period 224,752 214,470Cash, cash equivalents and restricted cash, end of period $216,603 $204,597Supplemental Disclosures of Cash Flow Information:Interest paid $103,050 $144,378Income taxes paid, net of refunds $355,968 $236,975Noncash purchases of property and equipment $146,650 $87,333
Universal Health Services, Inc.Supplemental Statistical Information(unaudited) % Change % Change 3 Months ended 9 Months endedSame Facility: 9/30/2025 9/30/2025Acute Care Hospitals (1)Revenues 12.8% 9.1%Adjusted Admissions 2.0% 2.1%Adjusted Patient Days 0.4% 0.6%Revenue Per Adjusted Admission 9.8% 5.4%Revenue Per Adjusted Patient Day 11.5% 7.0%Behavioral Health Hospitals (1)Revenues 9.3% 7.9%Adjusted Admissions 0.5% -0.2%Adjusted Patient Days 1.3% 0.7%Revenue Per Adjusted Admission 8.8% 8.2%Revenue Per Adjusted Patient Day 7.9% 7.2%UHS Consolidated Third Quarter Ended Nine Months Ended 9/30/2025 9/30/2024 9/30/2025 9/30/2024Revenues $4,495,245 $3,963,027 $12,878,781 $11,714,213EBITDA net of NCI $684,229 $528,564 $1,939,469 $1,627,698EBITDA Margin net of NCI 15.2% 13.3% 15.1% 13.9%Adjusted EBITDA net of NCI $670,600 $526,536 $1,911,702 $1,631,013Adjusted EBITDA Margin net of NCI 14.9% 13.3% 14.8% 13.9%Cash Flow From Operations $380,678 $332,977 $1,289,704 $1,408,664Capital Expenditures $228,892 $247,932 $733,932 $697,865Days Sales Outstanding 55 52Debt $4,691,120 $4,656,411UHS' Shareholders Equity $7,169,693 $6,605,696Debt / Total Capitalization 39.6% 41.3%Debt / EBITDA net of NCI (2) 1.83 2.21Debt / Adjusted EBITDA net of NCI (2) 1.86 2.21Debt / Cash From Operations (2) 2.41 2.50
(1) Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of May 1, 2024 to conform with current year presentation.(2) Latest 4 quarters.
Universal Health Services, Inc.Acute Care Hospital ServicesFor the Three and Nine months endedSeptember 30, 2025 and 2024(in thousands)(unaudited)Same Facility Basis – Acute Care Hospital Services Three months ended Three months ended Nine months ended Nine months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Amount % of Net Amount % of Net Amount % of Net Amount % of Net Revenues Revenues Revenues RevenuesNet revenues $2,433,065 100.0% $2,156,034 100.0% $6,949,443 100.0% $6,369,268 100.0%Operating charges:Salaries,wagesandbenefits 939,607 38.6% 898,260 41.7% 2,739,668 39.4% 2,617,905 41.1%Otheroperatingexpenses 695,141 28.6% 600,217 27.8% 1,971,712 28.4% 1,757,780 27.6%Supplies expense 344,742 14.2% 333,063 15.4% 1,040,287 15.0% 1,012,094 15.9%Depreciationandamortization 90,012 3.7% 93,977 4.4% 267,286 3.8% 278,597 4.4%Lease and rental expense 25,284 1.0% 24,205 1.1% 74,456 1.1% 72,352 1.1%Subtotal-operating expenses 2,094,786 86.1% 1,949,722 90.4% 6,093,409 87.7% 5,738,728 90.1%Income from operations 338,279 13.9% 206,312 9.6% 856,034 12.3% 630,540 9.9%Interest expense, net 319 0.0% 1,077 0.0% 968 0.0% 3,363 0.1%Other(income)expense,net (678) (0.0)% (590) (0.0)% (10,261) (0.1)% (1,107) (0.0)%Income before income taxes $338,638 13.9% $205,825 9.5% $865,327 12.5% $628,284 9.9%All Acute Care Hospital Services Three months ended Three months ended Nine months ended Nine months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Amount % of Net Amount % of Net Amount % of Net Amount % of Net Revenues Revenues Revenues RevenuesNet revenues $2,630,065 100.0% $2,253,819 100.0% $7,380,328 100.0% $6,617,586 100.0%Operating charges:Salaries,wagesandbenefits 973,680 37.0% 899,375 39.9% 2,821,509 38.2% 2,620,069 39.6%Otheroperatingexpenses 878,746 33.4% 700,558 31.1% 2,351,206 31.9% 2,011,301 30.4%Supplies expense 354,697 13.5% 333,036 14.8% 1,064,075 14.4% 1,011,917 15.3%Depreciationandamortization 97,389 3.7% 94,747 4.2% 288,406 3.9% 279,420 4.2%Lease and rental expense 25,543 1.0% 24,492 1.1% 75,121 1.0% 72,641 1.1%Subtotal-operating expenses 2,330,055 88.6% 2,052,208 91.1% 6,600,317 89.4% 5,995,348 90.6%Income from operations 300,010 11.4% 201,611 8.9% 780,011 10.6% 622,238 9.4%Interest expense, net 528 0.0% 1,077 0.0% 1,177 0.0% 3,363 0.1%Other(income)expense,net (623) (0.0)% (527) (0.0)% (9,806) (0.1)% (354) (0.0)%Income before income taxes $300,105 11.4% $201,061 8.9% $788,640 10.7% $619,229 9.4%
We believe that providing our results on a “Same Facility” basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Acute Care Hospital Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2024 and our Form 10-Q for the quarter ended June 30, 2025.Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of May 1, 2024 to conform with current year presentation.The All Acute Care Hospital Services table summarizes the results of operations for all our acute care operations during the periods presented. These amounts include: (i)our acute care results on a same facility basis, as indicated above; (ii)the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii)certain other amounts including the results of facilities acquired or opened during the last twelve months.
Universal Health Services, Inc.Behavioral Health Care ServicesFor the Three and Nine months endedSeptember 30, 2025 and 2024(in thousands)(unaudited)Same Facility Basis – Behavioral Health Care Services Three months ended Three months ended Nine months ended Nine months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Amount % of Net Amount % of Net Amount % of Net Amount % of Net Revenues Revenues Revenues RevenuesNet revenues $1,813,502 100.0% $1,659,264 100.0% $5,346,883 100.0% $4,953,381 100.0%Operating charges:Salaries,wagesandbenefits 990,740 54.6% 910,044 54.8% 2,890,753 54.1% 2,669,555 53.9%Otheroperatingexpenses 347,370 19.2% 316,234 19.1% 999,325 18.7% 937,738 18.9%Supplies expense 59,400 3.3% 57,345 3.5% 172,962 3.2% 170,831 3.4%Depreciationandamortization 54,493 3.0% 51,855 3.1% 158,824 3.0% 149,635 3.0%Lease and rental expense 11,494 0.6% 11,526 0.7% 33,316 0.6% 34,383 0.7%Subtotal-operating expenses 1,463,497 80.7% 1,347,004 81.2% 4,255,180 79.6% 3,962,142 80.0%Income from operations 350,005 19.3% 312,260 18.8% 1,091,703 20.4% 991,239 20.0%Interest expense, net 1,246 0.1% 1,041 0.1% 3,425 0.1% 3,076 0.1%Other(income)expense,net (236) (0.0)% (794) (0.0)% (1,898) (0.0)% (2,341) (0.0)%Income before income taxes $348,995 19.2% $312,013 18.8% $1,090,176 20.4% $990,504 20.0%All Behavioral Health Care Services Three months ended Three months ended Nine months ended Nine months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Amount % of Net Amount % of Net Amount % of Net Amount % of Net Revenues Revenues Revenues RevenuesNet revenues $1,860,259 100.0% $1,706,612 100.0% $5,487,984 100.0% $5,088,711 100.0%Operating charges:Salaries,wagesandbenefits 995,570 53.5% 914,477 53.6% 2,900,892 52.9% 2,682,167 52.7%Otheroperatingexpenses 390,783 21.0% 353,089 20.7% 1,138,209 20.7% 1,051,937 20.7%Supplies expense 59,696 3.2% 57,566 3.4% 173,544 3.2% 171,574 3.4%Depreciationandamortization 55,294 3.0% 52,227 3.1% 159,961 2.9% 150,577 3.0%Lease and rental expense 11,652 0.6% 11,954 0.7% 33,985 0.6% 35,232 0.7%Subtotal-operating expenses 1,512,995 81.3% 1,389,313 81.4% 4,406,591 80.3% 4,091,487 80.4%Income from operations 347,264 18.7% 317,299 18.6% 1,081,393 19.7% 997,224 19.6%Interest expense, net 1,265 0.1% 1,041 0.1% 3,444 0.1% 3,076 0.1%Other(income)expense,net 733 0.0% (861) (0.1)% (929) (0.0)% (2,408) (0.0)%Income before income taxes $345,266 18.6% $317,119 18.6% $1,078,878 19.7% $996,556 19.6%
We believe that providing our results on a “Same Facility” basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Behavioral Health Care Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2024 and our Form 10-Q for the quarter ended June 30, 2025.Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of May 1, 2024 to conform with current year presentation.The All Behavioral Health Care Services table summarizes the results of operations for all our behavioral health care facilities during the periods presented. These amounts include: (i)our behavioral health results on a same facility basis, as indicated above; (ii)the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii)certain other amounts including the results of facilities acquired or opened during the last twelve months.
Universal Health Services, Inc.Selected Hospital StatisticsFor the Three Months endedSeptember 30, 2025 and 2024(unaudited)AS REPORTED: ACUTE BEHAVIORAL HEALTH 9/30/25 9/30/24 % change 9/30/25 9/30/24 % changeHospitals owned and leased 29 27 7.4% 345 334 3.3%Average licensed beds 7,161 6,797 5.4% 24,398 24,306 0.4%Average available beds 6,989 6,625 5.5% 24,298 24,206 0.4%Patient days 412,353 401,479 2.7% 1,639,882 1,622,411 1.1%Average daily census 4,482.1 4,363.9 2.7% 17,824.8 17,634.9 1.1%Occupancy-licensed beds 62.6% 64.2% -2.5% 73.1% 72.6% 0.7%Occupancy-available beds 64.1% 65.9% -2.6% 73.4% 72.9% 0.7%Admissions 86,984 83,149 4.6% 120,655 120,003 0.5%Length of stay 4.7 4.8 -2.1% 13.6 13.5 0.7%Inpatient revenue $13,935,095 $12,293,443 13.4% $3,063,186 $2,819,421 8.6%Outpatient revenue 9,827,354 8,573,731 14.6% 282,966 267,721 5.7%Total patient revenue 23,762,449 20,867,174 13.9% 3,346,152 3,087,142 8.4%Other revenue 315,779 266,833 18.3% 99,370 84,759 17.2%Gross revenue 24,078,228 21,134,007 13.9% 3,445,522 3,171,901 8.6%Total deductions 21,448,163 18,880,188 13.6% 1,585,263 1,465,289 8.2%Net revenue $2,630,065 $2,253,819 16.7% $1,860,259 $1,706,612 9.0%SAME FACILITY: ACUTE BEHAVIORAL HEALTH 9/30/25 9/30/24 % change 9/30/25 9/30/24 % changeHospitals owned and leased 27 27 0.0% 334 334 0.0%Average licensed beds 6,869 6,797 1.1% 24,069 23,965 0.4%Average available beds 6,697 6,625 1.1% 23,969 23,865 0.4%Patient days 401,148 401,479 -0.1% 1,623,202 1,603,808 1.2%Average daily census 4,360.3 4,363.9 -0.1% 17,643.5 17,432.7 1.2%Occupancy-licensed beds 63.5% 64.2% -1.1% 73.3% 72.7% 0.8%Occupancy-available beds 65.1% 65.9% -1.2% 73.6% 73.0% 0.8%Admissions 84,368 83,149 1.5% 119,608 118,638 0.8%Length of stay 4.8 4.8 0.0% 13.6 13.5 0.7%
Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of May 1, 2024 to conform with current year presentation.
Universal Health Services, Inc.Selected Hospital StatisticsFor the Nine Months endedSeptember 30, 2025 and 2024(unaudited)AS REPORTED: ACUTE BEHAVIORAL HEALTH 9/30/25 9/30/24 % change 9/30/25 9/30/24 % changeHospitals owned and leased 29 27 7.4% 345 334 3.3%Average licensed beds 7,043 6,735 4.6% 24,308 24,335 -0.1%Average available beds 6,871 6,563 4.7% 24,208 24,235 -0.1%Patient days 1,243,297 1,212,669 2.5% 4,860,246 4,845,060 0.3%Average daily census 4,554.2 4,425.8 2.9% 17,803.1 17,682.7 0.7%Occupancy-licensed beds 64.7% 65.7% -1.6% 73.2% 72.7% 0.8%Occupancy-available beds 66.3% 67.4% -1.7% 73.5% 73.0% 0.8%Admissions 260,459 249,474 4.4% 357,417 358,845 -0.4%Length of stay 4.8 4.9 -2.0% 13.6 13.5 0.7%Inpatient revenue $42,116,443 $37,549,121 12.2% $8,925,118 $8,348,744 6.9%Outpatient revenue 28,793,015 25,554,222 12.7% 852,690 832,489 2.4%Total patient revenue 70,909,458 63,103,343 12.4% 9,777,808 9,181,233 6.5%Other revenue 881,904 747,440 18.0% 281,299 247,166 13.8%Gross revenue 71,791,362 63,850,783 12.4% 10,059,107 9,428,399 6.7%Total deductions 64,411,034 57,233,197 12.5% 4,571,123 4,339,688 5.3%Net revenue $7,380,328 $6,617,586 11.5% $5,487,984 $5,088,711 7.8%SAME FACILITY: ACUTE BEHAVIORAL HEALTH 9/30/25 9/30/24 % change 9/30/25 9/30/24 % changeHospitals owned and leased 27 27 0.0% 334 334 0.0%Average licensed beds 6,798 6,735 0.9% 24,099 23,913 0.8%Average available beds 6,626 6,563 1.0% 23,999 23,813 0.8%Patient days 1,216,788 1,212,669 0.3% 4,822,845 4,778,313 0.9%Average daily census 4,457.1 4,425.8 0.7% 17,666.1 17,439.1 1.3%Occupancy-licensed beds 65.6% 65.7% -0.2% 73.3% 72.9% 0.5%Occupancy-available beds 67.3% 67.4% -0.3% 73.6% 73.2% 0.5%Admissions 254,141 249,474 1.9% 354,853 354,469 0.1%Length of stay 4.8 4.9 -2.0% 13.6 13.5 0.7%
Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of May 1, 2024 to conform with current year presentation.
Universal Health Services, Inc.Supplemental Non-GAAP Disclosures2025 Revised Operating Results Forecast(in thousands, except per share amounts) Revised Forecast For The Year Ending December 31, 2025 % Net % Net Low revenues High revenuesNet revenues $17,306,000 $17,445,000Adjusted net income attributable to UHS (a) $1,382,259 $1,420,335Depreciation and amortization 617,346 617,346Interest expense 151,883 151,883Other (income) expense, net (16,389) (16,389)Provision for income taxes 434,352 446,316Adjusted EBITDA net of NCI (b) $2,569,451 14.8% $2,619,491 15.0%Adjusted net income attributable to UHS, per diluted share (a) $21.50 $22.10Shares used in computing diluted earnings per share 64,282 64,282
(a) Adjusted net income attributable to UHS/per diluted share exclude the following items because we do not believe we can forecast these items with sufficient accuracy. Such items include: the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as pre-tax unrealized gains/losses resulting from changes in the market value of shares of certain equity securities, the impact of ASU 2016-09, and other potential material items including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, other amounts that may be reflected in the current or prior year financial statements that relate to prior periods, and the impact of share repurchases that differ from our forecasted assumptions. Adjusted net income attributable to UHS/per diluted share is also subject to certain conditions including those as set forth in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.(b) Adjusted EBITDA net of NCI is a non-GAAP financial measure and should not be considered a measure of financial performance under GAAP. We believe Adjusted EBITDA net of NCI is helpful to our investors as a measure of operating performance.
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