Adjusted EBITDA was $380 million compared to $387 million in the prior year, including approximately $75 million from state-directed payment programs.
Cash flows from operations were $87 million for Q2 and $208 million year-to-date, with free cash flow marginally positive in Q2.
Cash flows included $74 million outflows for taxes on gain on sale, paid from divestiture proceeds and excluded from annual guidance.
Contract labor expense decreased by about $5 million year-over-year to $40 million.
EBITDA margin slightly declined to 12.1% from 12.3% in the prior year.
Inpatient admissions increased 0.3% year-over-year, while adjusted admissions declined 0.7%. Surgeries declined 2.5% and ER visits declined 1.9%.
In Q2 2025, same-store net revenue increased 6.5% year-over-year, driven primarily by rate growth and Medicaid state-directed payment programs in New Mexico and Tennessee.
Labor costs increased approximately 4% year-over-year in average hourly wage rate, consistent with expectations.
Medical specialist fees were flat year-over-year at $152 million, representing 4.9% of net revenues.
Supplies expense was down year-over-year and flat as a percentage of net revenue when adjusting for new state-directed payment programs.
Approximately 94.2 million shares of common stock were outstanding as of July 29, 2025, with 111.9 million fully diluted shares.
Crinetics Pharmaceuticals reported $1 million in revenue for Q2 2025 from licensing and supply agreements with its Japanese partner SKK.
Net cash used was $77.8 million during the quarter, with a cash balance of $1.2 billion at quarter-end.
Research and development expenses increased to $80.3 million in Q2 from $76.2 million in Q1, reflecting investments in multiple clinical programs.
Selling, general and administrative expenses rose to $49.8 million from $35.5 million, driven by commercial capability building and launch preparations.
Dafinchi