Ardent Health Reports First Quarter 2025 Financial Results Highlighting Revenue Growth and Strong Earnings Momentum
Ardent Health Partners, Inc. (NYSE: ARDT), a premier healthcare provider serving rapidly expanding mid-sized urban markets across the United States, today announced its financial and operational results for the first quarter ended March 31, 2025. The report underscores continued top-line growth, a notable increase in earnings, and a stable liquidity position as the company advances its mission of delivering high-quality, accessible healthcare services.
Overview of First Quarter Financial Performance
Ardent Health’s financial performance in the first quarter reflects steady momentum across its core service lines, with both inpatient and outpatient volumes contributing to revenue growth. Total revenue for the three-month period reached $1.497 billion, representing a 4.0% increase compared to the first quarter of 2024. This growth was primarily driven by a 2.7% year-over-year increase in adjusted admissions, complemented by a 1.2% rise in net patient service revenue per adjusted admission.
Importantly, these results were achieved despite the absence of any contribution from the New Mexico state directed payment program, which is currently pending approval by the Centers for Medicare & Medicaid Services (CMS). If approved, this program is expected to enhance Ardent Health’s reimbursement levels in future quarters and provide incremental financial benefit, particularly within its New Mexico operations.
Strategic Service Transition and Adjusted Metrics
The company also highlighted the strategic decision made in May 2024 to transition specific oncology and infusion services to an affiliated academic health system partner. This transition aligns with Ardent Health’s long-term strategy to optimize resource allocation and enhance specialty care through strategic partnerships. While this decision resulted in a reduction in revenue of over $10 million for the first quarter of 2025 relative to the same period last year, it had no material impact on Adjusted EBITDA, reflecting the limited cost burden associated with the transitioned services.
On an adjusted basis—excluding the impact of this transition—Ardent Health’s revenue growth would have been approximately 4.7%, and net patient service revenue per adjusted admission would have increased 1.9%, indicating a stronger underlying performance across its portfolio of facilities.
Earnings Growth and Margin Performance
Net income attributable to Ardent Health for the first quarter of 2025 totaled $41 million, or $0.29 per diluted share, marking a significant improvement compared to $27 million, or $0.21 per diluted share, reported in the first quarter of 2024. This year-over-year earnings growth of over 50% reflects enhanced operational efficiency, prudent expense management, and sustained volume recovery across key markets.
Adjusted EBITDA—a key measure of profitability and cash flow generation—rose to $98 million, a 2.5% increase from the prior-year quarter. While the growth rate was modest, it reflects the impact of service line optimization and demonstrates the company’s ability to maintain strong margins even amid changing revenue mix dynamics.
Operational Strength in Core Markets
Ardent Health continues to benefit from its strategic presence in mid-sized urban markets that are experiencing robust population and economic growth. The company operates a diverse network of acute care hospitals, outpatient facilities, physician practices, and specialized service centers across regions such as Texas, Oklahoma, New Mexico, New Jersey, and Idaho. This geographic diversification provides stability and resilience, as well as growth opportunities driven by expanding patient populations and rising demand for community-based care.
Inpatient admissions and outpatient encounters saw continued stabilization and recovery trends, supported by greater consumer confidence, improved staffing levels, and operational efficiencies gained through digital transformation initiatives and clinical integration efforts.
Balance Sheet, Liquidity, and Capital Structure
As of March 31, 2025, Ardent Health reported a strong liquidity position and a well-managed capital structure. The company ended the quarter with $495 million in total cash and cash equivalents. Total debt stood at $1.1 billion, resulting in a net leverage ratio of 1.4x, as calculated under the terms of the company’s credit agreements. Including lease obligations, the company’s lease-adjusted net leverage ratio was 3.0x, reflecting disciplined financial stewardship and balance sheet flexibility.
In addition to its cash reserves, the company reported total available liquidity of $790 million at quarter-end, which includes availability under its revolving credit facility. This liquidity position provides ample capacity to support ongoing operations, potential capital investments, and future growth initiatives.
Cash Flow and Capital Allocation
During the first quarter of 2025, net cash used in operating activities totaled $25 million, compared to $15 million in the same period in 2024. The increased usage of cash was attributed to temporary working capital shifts, including timing of accounts receivable collections and higher seasonal expense patterns in the early part of the year. The company anticipates a rebound in operating cash flow generation in subsequent quarters as revenue cycles normalize and reimbursement timing improves.
Ardent Health remains committed to disciplined capital allocation, with a continued focus on reinvesting in its facilities, advancing technology-enabled care, and pursuing value-enhancing partnerships. The company is evaluating selective expansion opportunities that align with its community-based care delivery model and support its vision of improving health outcomes in underserved or rapidly growing regions.
Outlook and Strategic Positioning
Looking ahead, Ardent Health is well-positioned to drive sustainable growth throughout 2025 and beyond. The company continues to invest in clinical excellence, digital health infrastructure, and operational agility. Management expressed confidence in the long-term demand for Ardent’s integrated care model, particularly in regions where population growth and shifting demographics are creating greater need for accessible, high-quality healthcare.
Pending regulatory approvals, such as the CMS decision on the New Mexico state directed payment program, could provide additional revenue upside in future quarters. Furthermore, ongoing recruitment and retention efforts aimed at strengthening the clinical workforce are expected to enhance throughput and reduce reliance on contract labor—improving both margins and continuity of care.
Leadership Commentary
“Our first-quarter results reflect strong execution against our strategic priorities, disciplined cost control, and an unwavering focus on delivering exceptional patient care,” said Marty Bonick, President and CEO of Ardent Health. “Despite some headwinds, including the delayed approval of the New Mexico payment program, we achieved meaningful revenue growth and earnings expansion, demonstrating the strength and resilience of our business model.”
Bonick added, “As we continue to grow and evolve, we are committed to deepening our partnerships, investing in innovation, and driving value for our patients, employees, and shareholders. We remain focused on being a provider of choice in the communities we serve, and we’re excited about the opportunities that lie ahead in 2025.”
Ardent Health Partners, Inc. is a leading provider of healthcare services with a mission to improve health outcomes in growing mid-sized urban communities across the United States. Headquartered in Nashville, Tennessee, Ardent operates a diverse portfolio of hospitals, outpatient centers, and physician clinics, with a focus on delivering compassionate, high-quality, and accessible care.
