Pennant Group, Inc.

We have disclosed under the heading “Risk Factors” in the 2025 Annual Report risk factors that materially affect our business, financial condition or results of operations, and disclosed more recent events relevant to our business under Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations. You should carefully consider the risk factors set forth in the 2025 Annual Report and the other information set forth under Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, in this Quarterly Report. You should be aware that these risk factors and other information may not describe every risk facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Since the filing of our 2025 Annual Report on February 26, 2026, the following addition has been made to the risk factors previously disclosed.

The Increasing Use of Artificial Intelligence Creates or Increases Regulatory and Business Risks That May Have a Material Impact on Our Results. The use of artificial intelligence (“AI”) in technology is rapidly expanding. AI is embedded in or utilized by systems in ways that may or may not be apparent. The inherent complexity of AI models may make it difficult to understand how decisions are made. Inaccurate outputs due to biased training data, flawed algorithms, or other causes could lead to inappropriate recommendations or decisions. Utilizing AI may create new business associate relationships and heightened risks of data breaches or unauthorized use of protected health information. Laws and regulations relating to AI are changing rapidly at the state and federal level, which may increase compliance costs or render current technologies non-compliant.