Pennant Group, Inc.

Previous wording

•federal and state changes to, or delays receiving, reimbursement and other aspects of Medicaid and Medicare, including proposed Medicare reimbursement reductions in the Calendar Year 2026 Home Health Prospective Payment System Proposed Rule and changes to Medicaid funding within the One Big Beautiful Bill Act;

Current wording

•federal and state changes to, or delays receiving, reimbursement and other aspects of Medicaid and Medicare, including proposed Medicare reimbursement reductions in the Calendar Year 2026 Home Health Prospective Payment System Rate Update Final Rule and changes to Medicaid funding within the One Big Beautiful Bill Act;

Previous wording

•changes in, and compliance with, the laws and regulations affecting the U.S. healthcare industry;

Current wording

•changes in, and compliance with, the laws and regulations affecting the U.S. healthcare industry, and changes based on the outcomes of the 2026 midterm elections and state level elections that may affect how these laws are enacted and enforced in the future;

Previous wording

•proposed changes to payment models and reimbursement amounts within the Medicare and Medicaid fee schedules for future calendar years;

Current wording

•proposed changes to payment models and reimbursement amounts within the Medicare and Medicaid fee schedules for future calendar years, including potentially minimal increases in Medicare Advantage rates and payments in the future;

Previous wording

We are a leading provider of high-quality healthcare services to patients and residents of all ages, including the growing senior population, in the United States. We strive to be the provider of choice in the communities we serve through our innovative operating model. We operate in multiple lines of businesses including home health, hospice and senior living services across Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin and Wyoming. We also provide home health and hospice operational support through a management service agreement in Connecticut. As of September 30, 2025, our home health and hospice business provided home health, hospice and home care services from 141 agencies operating across these 13 states, and our senior living business operated 61 senior living communities throughout seven states.

Current wording

We are a leading provider of high-quality healthcare services to patients and residents of all ages, including the growing senior population, in the United States. We strive to be the provider of choice in the communities we serve through our innovative operating model. We operate in multiple lines of businesses including home health, hospice and senior living services across Alabama, Arizona, California, Colorado, Georgia, Idaho, Montana, Nevada, Oklahoma, Oregon, Tennessee, Texas, Utah, Washington, Wisconsin and Wyoming. We also provide home health and hospice operational support through a management service agreement in Connecticut. As of March 31, 2026, our home health and hospice business provided home health, hospice and home care services from 174 agencies operating across these 16 states, and our senior living business operated 63 senior living communities throughout seven states.

Previous wording

We have experienced improvement in senior living revenue per occupied unit and occupancy during the nine months ended September 30, 2025, compared to the same period in 2024. Though we have seen improvements in revenue per occupied unit and occupancy year over year, the highly competitive environment for senior living residents and inflationary factors will continue to impact the rate at which our revenue per occupied unit changes in our senior living communities.

Current wording

We experienced improvement in senior living revenue per occupied unit and occupancy during the three months ended March 31, 2026, compared to the same period in 2025. Despite year-over-year gains in revenue per occupied unit and occupancy, competition and inflation will continue to influence revenue growth in our senior living communities.

Previous wording

On August 1, 2025, CMS issued the 2026 Hospice Wage Index and Payment Rate Update final rule (the “Hospice Payment Final Rule”) with changes effective October 1, 2025. The Hospice Payment Final Rule’s payment update percentage is 2.6%, which is an estimated increase of $750 million in payments from fiscal year 2025 in the aggregate across all hospice providers. The payment update percentage is based on a 3.3% market basket percentage increase, which is reduced by a 0.7% productivity adjustment. The Hospice Payment Final Rule clarifies that the physician member of a hospice’s interdisciplinary group may recommend admission to hospice care, which aligns certification regulations with the hospice conditions of participation. In addition, the Hospice Payment Final Rule updates the statutory aggregate cap that limits the overall payments per patient that may be made to a hospice annually. The hospice cap amount for the 2026 fiscal year is $35,361.44, increased by 2.6% from the 2025 fiscal year cap of $34,465.34.

Current wording

On April 2, 2026, CMS issued the Calendar Year (“CY”) 2027 Hospice Wage Index and Payment Rate Update proposed rule (“Hospice Payment Proposed Rule”). The 2027 Hospice Payment Proposed Rule includes several changes that, if finalized, could materially impact reimbursement of hospice providers. The Hospice Payment Proposed Rule’s net payment update percentage is 2.4%, which is an estimated increase of $785 million in payments from fiscal year 2026 in the aggregate across all hospice providers. The payment update percentage is based on a 3.2% market basket percentage increase, reduced by a 0.8% productivity adjustment. In addition, the Hospice Payment Proposed Rule proposes to update the statutory aggregate cap of the total overall payments per patient that may be made to a hospice annually to $36,210.11 for fiscal year 2027, which is an increase of 2.4% from the 2026 fiscal year cap of $35,361.44.

Previous wording

•Occupancy. The ratio of actual number of days our units are occupied during any measurement period to the number of days units are available for occupancy during such measurement period.

Current wording

•Occupancy. The ratio of actual number of days our units are occupied during any measurement period to the number of units available for occupancy during such measurement period.

Previous wording

Home Health. We derive the majority of our home health revenue from Medicare and managed care. The Medicare payment is adjusted for differences between estimated and actual payment amounts, an inability to obtain appropriate billing documentation or authorizations acceptable to the payor and other reasons unrelated to credit risk. Net service revenue is recognized in accordance with PDGM methodology. Under PDGM, Medicare provides agencies with payments for each 30-day period of care provided to beneficiaries. If a beneficiary is still eligible for care after the end of the first 30-day payment period, a second 30-day payment period can begin. There are no limits to the number of periods of care a beneficiary who remains eligible for the home health benefit can receive. While payment for each 30-day period of care is adjusted to reflect the beneficiary’s health condition and needs, a special outlier provision exists to ensure appropriate payment for those beneficiaries that have the most expensive care needs. The PDGM payment under the Medicare program is also adjusted for certain variables including, but not limited to: (a) a LUPA if the number of visits is below an established threshold that varies based on the diagnosis of a beneficiary; (b) a partial payment if the patient transferred to another provider or the Company received a patient from another provider before completing the period of care; (c) adjustment to the admission source of claim if it is determined that the patient had a qualifying stay in a post-acute care setting within 14 days prior to the start of a 30-day payment period; (d) the timing of the 30-day payment period provided to a patient in relation to the admission date, regardless of whether the same home health provider provided care for the entire series of episodes; (e) changes to the acuity of the patient during the previous 30-day period of care; (f) changes in the base payments established by the Medicare program; (g) adjustments to the base payments for case mix and geographic wages; and (h) recoveries of overpayments. These variables are subject to periodic adjustments set by CMS regulations. For further detail regarding PDGM see the Government Regulation section of our 2024 Annual Report.

Current wording

Home Health. We derive the majority of our home health revenue from Medicare and managed care. The Medicare payment is adjusted for differences between estimated and actual payment amounts, an inability to obtain appropriate billing documentation or authorizations acceptable to the payor, and other reasons unrelated to credit risk. Net service revenue is recognized in accordance with PDGM methodology. Under PDGM, Medicare provides agencies with payments for each 30-day period of care provided to beneficiaries. If a beneficiary is still eligible for care after the end of the first 30-day payment period, a second 30-day payment period can begin. There are no limits to the number of periods of care a beneficiary who remains eligible for the home health benefit can receive. While payment for each 30-day period of care is adjusted to reflect the beneficiary’s health condition and needs, a special outlier provision exists to ensure appropriate payment for those beneficiaries that have the most expensive care needs. The PDGM payment under the Medicare program is also adjusted for certain variables including, but not limited to: (a) a low utilization payment adjustment if the number of visits is below an established threshold that varies based on the diagnosis of a beneficiary; (b) a partial payment if the patient transferred to another provider or the Company received a patient from another provider before completing the period of care; (c) adjustment to the admission source of claim if it is determined that the patient had a qualifying stay in a post-acute care setting within 14 days prior to the start of a 30-day payment period; (d) the timing of the 30-day payment period provided to a patient in relation to the admission date, regardless of whether the same home health provider provided care for the entire series of episodes; (e) changes to the acuity of the patient during the previous 30-day period of care; (f) changes in the base payments established by the Medicare program; (g) adjustments to the base payments for case mix and geographic wages; and (h) recoveries of overpayments. These variables are subject to periodic adjustments set by CMS regulations. For further detail regarding PDGM see the Government Regulation section of our 2025 Annual Report.

Previous wording

Rent—Cost of Services. Rent—cost of services consists solely of base minimum rent amounts payable under lease agreements to our landlords. Our subsidiaries lease and operate but do not own the underlying real estate at our operations, and these amounts do not include taxes, insurance, impounds, capital reserves or other charges payable under the applicable lease agreements.

Current wording

Rent—Cost of Services. Rent—cost of services consists solely of base minimum rent amounts payable under lease agreements to our landlords. Our subsidiaries lease and operate but do not own the underlying real estate at our operations, and these amounts do not include taxes, insurance, impounds, capital reserves, or other charges payable under the applicable lease agreements, which are included in cost of services and general and administrative expense.

Previous wording

Depreciation and Amortization. Property and equipment are recorded at their historical cost. Depreciation is computed using the straight-line method over the estimated useful lives of the depreciable assets (ranging from one to forty years). Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the remaining lease term.

Current wording

Depreciation and Amortization. Property and equipment are initially recorded at their historical cost. Depreciation is computed using the straight-line method over the estimated useful lives of the depreciable assets (ranging from one to forty years). Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the remaining lease term.

Previous wording

Our discussion and analysis of our financial condition and results of operations are based on Interim Financial Statements, which have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of the Interim Financial Statements and related disclosures requires us to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis we review our judgments and estimates, including but not limited to those related to self-insurance reserves, revenue, intangible assets, and goodwill. We base our estimates and judgments upon our historical experience, knowledge of current conditions and our belief of what could occur in the future considering available information, including assumptions that we believe to be reasonable under the circumstances. By their nature, these estimates and judgments are subject to an inherent degree of uncertainty, and actual results could differ materially from the amounts reported. While we believe that our estimates, assumptions, and judgments are reasonable, they are based on information available when the estimate was made. Refer to Note 2, Basis of Presentation and Summary of Significant Accounting Policies, within the 2024 Annual Report for further information on our critical accounting estimates and policies, which are as follows:

Current wording

Our discussion and analysis of our financial condition and results of operations are based on Interim Financial Statements, which have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of the Interim Financial Statements and related disclosures requires us to make judgments, estimates, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. On an ongoing basis we review our judgments and estimates, including but not limited to those related to self-insurance reserves, revenue, intangible assets, and goodwill. We base our estimates and judgments upon our historical experience, knowledge of current conditions and our belief of what could occur in the future considering available information, including assumptions that we believe to be reasonable under the circumstances. By their nature, these estimates and judgments are subject to an inherent degree of uncertainty, and actual results could differ materially from the amounts reported. While we believe that our estimates, assumptions, and judgments are reasonable, they are based on information available when the estimate was made. Refer to Note 2, Basis of Presentation and Summary of Significant Accounting Policies, within the 2025 Annual Report for further information on our critical accounting estimates and policies, which are as follows:

Previous wording

•Self-insurance reserves - The Company is self-insured for general and professional liability, workers’ compensation, automobile, and its employee health plans while maintaining stop-loss coverage with third-party insurers to limit its total liability exposure. The valuation methods and assumptions used in estimating costs up to retention amounts to settle open claims of insureds and an estimate of the cost of insured claims up to retention amounts that have been incurred but not reported;

Current wording

•Self-insurance reserves - The Company is self-insured for general and professional liability, workers’ compensation, automobile, and its employee health plans while maintaining stop-loss coverage with third-party insurers to limit its total liability exposure. The Company accrues amounts equal to the actuarial estimated costs to settle open claims of insureds, as well as an estimate of the costs of insured claims that have been incurred but not reported. We develop information about the size of the ultimate claims based on historical experience, current industry information, and actuarial analysis;

Previous wording

The following table presents our consolidated GAAP Financial measures for the three and nine months ended September 30, 2025 and 2024:

Current wording

The following table presents our consolidated GAAP Financial measures for the three months ended March 31, 2026 and 2025:

Previous wording

We typically use Non-GAAP Financial Measures to compare the operating performance of each operation from period to period. We find that Non-GAAP Financial Measures are useful for this purpose because they do not include such costs as interest expense, income taxes, depreciation and amortization expense, which may vary from period-to-period depending upon various factors, including the method used to finance operations, the date of acquisition of a community or business, and the tax law of the state in which a business unit operates.

Current wording

We typically use Non-GAAP Financial Measures to compare the operating performance of each operation from period to period. We find that Non-GAAP Financial Measures are useful for this purpose because they do not include such costs as interest expense, income taxes, and depreciation and amortization expense, which may vary from period-to-period depending upon various factors, including the method used to finance operations, the date of acquisition of a community or business, and the tax law of the state in which a business unit operates.

Previous wording

We calculate Consolidated Adjusted EBITDA by adjusting Consolidated EBITDA to exclude the effects of non-core business items, which for the reported periods includes, to the extent applicable:

Current wording

We calculate Consolidated Adjusted EBITDA by adjusting Consolidated EBITDA to exclude the effects of non-core business items, which for the reported periods include, to the extent applicable:

Previous wording

•unusual, non-recurring, or redundant charges.

Current wording

•other unusual, non-recurring, or redundant charges.

Previous wording

Our total revenue increased $48.4 million, or 26.8%, during the three months ended September 30, 2025. We experienced growth of $37.9 million from increased operational performance in our Home Health and Hospice segment from increased admissions and census, in part driven by newly acquired agencies when compared to the three months ended September 30, 2024. The growth in our Senior Living segment resulted in an increase in revenue of $10.5 million driven by acquired senior living communities and an improved average rate per occupied room and improved occupancy.

Current wording

Our total revenue increased $75.5 million, or 36.0%, during the three months ended March 31, 2026. We experienced growth of $69.2 million from increased operational performance in our Home Health and Hospice segment from increased admissions and census, primarily driven by newly acquired agencies when compared to the three months ended March 31, 2025. The growth in our Senior Living segment resulted in an increase in revenue of $6.3 million driven by acquired senior living communities and an improved average rate per occupied room and improved occupancy.

Previous wording

Home health and hospice revenue increased $37.9 million, or 27.9%, for the three months ended September 30, 2025 compared to the prior year quarter. Revenue grew due to an increase in certain key performance indicators, including an increase of 36.2% in total home health admissions, an increase in total hospice admissions of 16.6%, and an increase in average daily hospice census of 17.4% during the three months ended September 30, 2025 compared to the prior year quarter. Growth was also driven by the addition of nineteen home health and hospice operations between September 30, 2024 and September 30, 2025. Agencies acquired during calendar year 2024 and year-to-date September 30, 2025 drove an increase in revenue of $25.3 million, representing an 18.7% increase compared to the prior year quarter.

Current wording

Home health and hospice revenue increased $69.2 million, or 43.3%, for the three months ended March 31, 2026 compared to the prior year quarter. Revenue grew due to an increase in certain key performance indicators, including an increase of 62.7% in total home health admissions, an increase in total hospice admissions of 27.0%, and an increase in average daily hospice census of 37.0% during the three months ended March 31, 2026 compared to the prior year quarter. Growth was also driven by the addition of thirty-seven home health and hospice operations between March 31, 2025 and March 31, 2026. Agencies acquired during calendar year 2025 and year-to-date March 31, 2026 drove an increase in revenue of $53.3 million, representing a 33.3% increase compared to the prior year quarter.

Previous wording

Senior living revenue increased $10.5 million, or 23.2%, for the three months ended September 30, 2025 compared to the prior year quarter. Revenue grew due to a 7.4% increase in average monthly revenue per occupied unit and an increase of 180 basis points in occupancy between September 30, 2024 and September 30, 2025. Growth was also driven by the addition of seven senior living communities between September 30, 2024 and September 30, 2025. Communities acquired during calendar year 2024 and year-to-date September 30, 2025 drove an increase in revenue of $6.6 million, representing a 14.7% increase compared to the prior year quarter.

Current wording

Senior living revenue increased $6.3 million, or 12.6%, for the three months ended March 31, 2026 compared to the prior year quarter. Revenue grew due to a 3.8% increase in average monthly revenue per occupied unit and an increase of 10 basis points in occupancy between March 31, 2025 and March 31, 2026. Growth was also driven by the addition of three senior living communities between March 31, 2025 and March 31, 2026. Communities acquired during calendar year 2025 and year-to-date March 31, 2026 drove an increase in revenue of $2.7 million, representing a 5.4% increase compared to the prior year quarter.

Previous wording

Total consolidated cost of services increased $41.0 million, or 28.4%, for the three months ended September 30, 2025 when compared to the three months ended September 30, 2024. Cost of services as a percentage of revenue increased by 100 basis points from 80.0% to 81.0% for the three months ended September 30, 2025 when compared to the three months ended September 30, 2024.

Current wording

Total consolidated cost of services increased $63.9 million, or 37.9%, for the three months ended March 31, 2026 when compared to the three months ended March 31, 2025. Cost of services as a percentage of revenue increased by 110 basis points from 80.4% to 81.5% for the three months ended March 31, 2026 when compared to the three months ended March 31, 2025.

Previous wording

Cost of services related to our Home Health and Hospice Services segment increased $32.3 million, or 28.7%, primarily due to increased volume of services provided. Cost of services as a percentage of revenue for the three months ended September 30, 2025 increased 50 basis points when compared to the three months ended September 30, 2024.

Current wording

Cost of services related to our Home Health and Hospice Services segment increased $59.3 million, or 44.6%, for the three months ended March 31, 2026 when compared to the three months ended March 31, 2025, primarily due to increased volume of services provided and transition costs related to acquisitions. Cost of services as a percentage of revenue for the three months ended March 31, 2026 increased 80 basis points when compared to the three months ended March 31, 2025.

Previous wording

Cost of services related to our Senior Living Services segment increased $8.6 million, or 27.1%, primarily due to increased wages and benefits and acquisition activity. As a percentage of revenue, costs of service increased by 220 basis points for the three months ended September 30, 2025 when compared to the three months ended September 30, 2024 primarily due to decreases in state relief funding.

Current wording

Cost of services related to our Senior Living Services segment increased $4.7 million, or 13.0%, for the three months ended March 31, 2026 when compared to the three months ended March 31, 2025, primarily due to increased wages and benefits and acquisition activity. As a percentage of revenue, costs of service increased by 20 basis points for the three months ended March 31, 2026 when compared to the three months ended March 31, 2025 primarily due to decreases in state relief funding.

Previous wording

Rent—Cost of Services. Rent expense increased 10.6% from $10.9 million to $12.1 million in the three months ended September 30, 2025 when compared to the three months ended September 30, 2024, primarily as a result of the new leases related to the acquired home health and hospice operations and senior living communities. Rent as a percentage of total revenue decreased 70 basis points from 6.0% for the three months ended September 30, 2024, compared to 5.3% for the three months ended September 30, 2025.

Current wording

Rent—Cost of Services. Rent expense increased 11.8% from $11.7 million to $13.1 million in the three months ended March 31, 2026 when compared to the three months ended March 31, 2025, primarily as a result of the new leases related to the acquired home health and hospice operations and senior living communities. Rent as a percentage of total revenue decreased 100 basis points from 5.6% for the three months ended March 31, 2025, compared to 4.6% for the three months ended March 31, 2026.

Previous wording

General and Administrative Expense. Our general and administrative expense increased $15.4 million, or 42.4%, from $36.3 million to $51.7 million for the nine months ended September 30, 2025 when compared to the nine months ended September 30, 2024. The increase in general and administrative expense was due to an increase in payroll and related benefits and an increase in professional services related to acquisition activities for the nine months ended September 30, 2025 when compared to the nine months ended September 30, 2024.

Current wording

General and Administrative Expense. Our general and administrative expense increased $4.8 million, or 32.7%, from $14.8 million to $19.7 million for the three months ended March 31, 2026 when compared to the three months ended March 31, 2025. General and administrative expense as a percentage of revenue decreased 20 basis points from 7.1% to 6.9% during the period. The primary driver of the increase in general and administrative expense was due to an increase in payroll and related benefits and an increase in professional services related to acquisition activities for the three months ended March 31, 2026 when compared to the three months ended March 31, 2025.

Previous wording

Depreciation and Amortization. Depreciation and amortization expense increased $0.6 million, or 38.2%, from $1.5 million to $2.1 million for the three months ended September 30, 2025 when compared to the three months ended September 30, 2024. The increase in depreciation and amortization was due to the increase in overall property and equipment, net balances driven in part by acquisition activity.

Current wording

Depreciation and Amortization. Depreciation and amortization expense increased $0.7 million, or 38.3%, from $1.9 million to $2.6 million for the three months ended March 31, 2026 when compared to the three months ended March 31, 2025. The increase in depreciation and amortization was due to the increase in overall property and equipment, net balances driven in part by acquisition activity.

Previous wording

Provision for Income Taxes. We recorded income tax expense of $2.5 million and $1.4 million, or 26.8% and 16.9% of earnings before income taxes, for the three months ended September 30, 2025 and 2024, respectively. The increase in the effective tax rate is primarily due to having more compensation subject to IRC Section 162(m) and less excess tax benefits on equity compensation.

Current wording

Provision for Income Taxes. We recorded income tax expense of $3.8 million and $2.9 million, or 26.9% and 25.1% of earnings before income taxes, for the three months ended March 31, 2026 and 2025, respectively. The increase in the effective tax rate is primarily attributable to higher state income taxes driven by changes in the geographic mix of earnings, net of the related federal tax benefit.

Previous wording

On November 3, 2025, the Company entered into the First Amendment to the Amended Credit Agreement (“Amendment”), which establishes an incremental term loan with an aggregate principal amount of $100,000. The incremental term loan constitutes a term loan under, and is subject to the terms and provisions of, the Amended Credit Agreement, including bearing interest at the same interest rate, and having the same maturity date. The Company used the proceeds of the incremental term loan to refinance a portion of the outstanding revolving loans under the Amended Credit Agreement and to pay fees and expenses incurred in connection with the Amendment. The lender group remains unchanged.

Current wording

On November 3, 2025, Pennant entered into the First Amendment to Amended and Restated Credit Agreement (the “First Amendment”), which provides for an incremental term loan with an aggregate principal amount of $100.0 million (the “Incremental Term Loans”). The Incremental Term Loans constitute term loans under, and are subject to the terms and provisions of, the Amended Credit Agreement, including bearing interest at the same interest rate, and having the same maturity date, as the Amended Revolving Credit Facility. The Company used the proceeds of the Incremental Term Loans to refinance a portion of the outstanding revolving loans under the Amended Revolving Credit Facility and to pay fees and expenses incurred in connection with the First Amendment.

Previous wording

As of September 30, 2025, we had $2.3 million of cash and $219.8 million of available borrowing capacity on our Amended Revolving Credit Facility.

Current wording

As of March 31, 2026, we had $4.9 million of cash and $174.6 million of available borrowing capacity on our Amended Revolving Credit Facility.

Previous wording

Our net cash flow from operating activities for the nine months ended September 30, 2025 increased by $8.6 million when compared to the nine months ended September 30, 2024. The primary driver of this difference was an increase in net income of $5.6 million, an increase of $1.2 million in non-cash expenses, and an increase in cash flows from the change in operating assets and liabilities of $1.8 million, net.

Current wording

Our net cash used in operating activities for the three months ended March 31, 2026 decreased by $17.8 million when compared to the three months ended March 31, 2025. The primary driver of this difference was an increase in net income of $1.8 million, an increase of $2.0 million in non-cash expenses, and an increase in cash flows from the change in operating assets and liabilities of $14.1 million, net.

Previous wording

Our net cash used in investing activities for the nine months ended September 30, 2025 increased by $8.7 million compared to the nine months ended September 30, 2024, primarily driven by an increase in business acquisitions.

Current wording

Our net cash used in investing activities for the three months ended March 31, 2026 decreased by $44.9 million compared to the three months ended March 31, 2025, primarily driven by a decrease in business acquisitions.

Previous wording

Our net cash provided by financing activities decreased by approximately $20.3 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease was primarily due to a net decrease in the balance on our line of credit during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Current wording

Our net cash used in financing activities decreased by approximately $55.8 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was primarily due to a net decrease in the balance on our line of credit during the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The three months ended March 31, 2025 included a large draw on our Amended Revolving Credit Facility related to acquisition activity.