Adjusted EBITDA margin improved by 280 basis points to 21.3%.
Free cash flow for the quarter was $743 million, with $2.6 billion cash on hand and no borrowings on the credit facility.
Hospital segment adjusted EBITDA grew 25% to $623 million with same-store hospital admissions up 1.6% and revenue per adjusted admission up 5.2%.
Leverage ratio was 2.45x EBITDA as of June 30, 2025, reflecting strong operational and financial discipline.
Tenet Healthcare reported second quarter 2025 net operating revenues of $5.3 billion and consolidated adjusted EBITDA of $1.121 billion, a 19% increase over 2024.
The company repurchased 7.2 million shares for $1.1 billion in the first half of 2025, with a board authorization to increase the share repurchase program by $1.5 billion.
USPI segment adjusted EBITDA grew 11% to $498 million with a 7.7% increase in same-facility revenues and 12.6% growth in total joint replacements.
Clinical Diagnostics sales were $389 million, flat reported and down 0.7% currency-neutral, impacted by lower diabetes testing reimbursement in China.
Core Life Science Group revenue excluding process chromatography decreased 1.7% reported and 2.7% currency-neutral due to softness in biotech and academic research markets.
Gross margin declined to 53% reported and 53.7% non-GAAP from 55.6% and 56.4% respectively in Q2 2024, due to higher material costs and lower instrument demand.
Life Sciences Group sales were $263 million, up 4.9% reported and 3.8% currency-neutral, driven by process chromatography and food safety products.
Net cash from operations was $117 million, free cash flow was $71 million, up from $98 million and $55 million respectively in Q2 2024.
Net sales for Q2 2025 were approximately $652 million, a 2.1% increase on a reported basis versus $638 million in Q2 2024, and a 1% increase on a currency-neutral basis.
Non-GAAP net income was $71 million or $2.61 per diluted share.
Operating income was $77 million (11.8% of sales) versus $101 million (15.9%) in Q2 2024; non-GAAP operating margin was 13.6% versus 16.7%.
Process chromatography experienced strong double-digit growth, with about 20% of Q2 sales pulled forward by customers.
R&D expenses were $61 million (9.3% of sales), slightly higher than prior year due to project-related spending.
Reported net income was $318 million or $11.67 per diluted share, boosted by a $250 million gain from Sartorius AG equity value changes.
SG&A expenses increased to $208 million (31.9% of sales) from $195 million (30.5%), driven by higher variable compensation.
Share repurchases totaled $139 million in Q2, with $337 million remaining under the current authorization.
Adjusted EBITDA for VITAS, excluding Medicare Cap, was $66.8 million, flat with prior year, with margin at 16.2%, down 163 basis points due to admitting more short-stay patients.
Admissions at VITAS totaled 17,545, a 1.2% increase from Q2 2024, or 4.9% excluding transfers from the 2024 Covenant Health acquisition.
Average daily census at VITAS increased 6.1% to 22,318. Hospital-directed admissions increased 9.1%, while home-based, nursing home, and assisted living admissions declined.
Average length of stay increased to 137.1 days from 100.6 days in Q2 2024, reflecting effects of community access initiative patients.
Average revenue per patient per day was $207.3, 350 basis points above prior year.
Roto-Rooter adjusted EBITDA was $48.6 million, down 18.7% from prior year, with margin at 21.8%, a 517 basis point decline due to labor inefficiencies, higher commissions, casualty and workers' comp costs, and increased paid search marketing costs.
Roto-Rooter revenue increased 0.6% in Q2 2025, with branch residential revenue up 0.9% and commercial revenue up 4.4%. Independent contractor revenue declined 4.4%.
VITAS net revenue was $396.2 million in Q2 2025, up 5.8% from prior year, driven by a 6.1% increase in days of care and a 4.2% Medicare reimbursement rate increase.
Cytokinetics ended Q2 2025 with approximately $1.04 billion in cash, cash equivalents, and investments, slightly down from $1.09 billion in Q1 2025.
G&A expenses rose to $65.7 million from $50.8 million year-over-year, primarily due to commercial readiness investments and personnel costs.
Net loss narrowed to $134.4 million or $1.12 per share in Q2 2025 compared to $143.3 million or $1.31 per share in Q2 2024.
R&D expenses increased to $112.6 million in Q2 2025 from $79.6 million in Q2 2024, driven by clinical trial advancement and higher personnel and medical affairs costs.
The company exercised its option on the Tranche 4 loan from Royalty Pharma, receiving $75 million, with an option to draw $100 million on Tranche 5 before November 25, 2025.
Dafinchi