Sep 8, 2026 earnings call — Scaling PACE operations and AI investments
Company guided fiscal 2027 revenue of approximately $1.05 billion to $1.085 billion and adjusted EBITDA of approximately $105 million to $115 million.
Revenue $0.3B (est $0.2B) · EPS $0.06 (est $0.07) · Next-quarter revenue outlook $1.1B–$1.1B
Key quotes
"We're beginning to more actively evaluate de novo markets, M&A opportunities, joint ventures and other partnership models that could expand our reach over time."
"We're approaching AI pragmatically and with discipline, with appropriate human oversight and accountability built into how these tools are developed, tested and used."
"We expect fiscal 2027 to be a year focused on preserving and expanding upon the progress we've made while navigating a more challenging rate environment and making disciplined margin management a key priority."
Analyst Q&A 3
PMPM drivers and growth priorities
Q (Benjamin Rossi · JPMorgan): The analyst asked which variables drive your PMPM assumptions, including county rates, risk adjustments and the V28 phase-in. He also asked how you prioritize filling existing centers versus adding new centers and the status of your M&A pipeline.
A: They use Medicare county rates adjusted for the V28 phase-in (this year 10% V28, 90% the old model; next year 50-50, phasing in January) and expect a boost from dementia coding given participant prevalence. State rates in California and Colorado are not finalized, so they used working assumptions; overall they expect a manageable but less robust rate environment for 2027. For growth, the priority is adding capacity in existing centers, a high bar for de novos, and disciplined M&A interest where the right opportunities exist.
"One of the things that we've spoken about before is what happens with dementia coding, which obviously is treated favorably under V28." — Benjamin Adams (CFO)
Margin drivers and policy opportunities
Q (Matthew Gillmor · KeyBanc): He asked what the disciplined approach to margin management means and what drives the margin upside in 2027. He also asked what policy changes could reduce barriers and what adjacent populations might benefit from PACE.
A: They view roughly 10% plus as the long-term sustainable margin and are driving toward it by finding efficiencies in third-party care, reducing internal cost of care, applying data analytics in centers, and continuing G&A improvements. On policy, the main barriers are making it easier to enroll in PACE, to market it, and to expand into new markets. They see interest in serving Medicare-only adults with functional impairment upstream of PACE and early conversations are testing whether an earlier center-based model could change outcomes and lower costs.
"Most of the barriers center around making it easier to enroll in PACE as well as making it easier to expand and enter new markets." — Patrick Blair (CEO)
Census timing and insourcing benefits
Q (Christine Rains · William Blair): She asked about the expected cadence of census and revenues in the 2027 guidance. She also asked for numbers on benefits from bringing functions like pharmacy in-house and whether other services will be insourced.
A: Census has become relatively predictable with steady quarter-to-quarter increases: typically a strong Q1, pretty good Q2, some softness in Q3 due to open enrollment competition, and a return to normalized growth in Q4. They do not break out specific dollar benefits from insourcing, but bringing DME, palliative care, behavioral health and an in-house pharmacy has improved margins, given operational control and recaptured margin. They now expect to focus on growth and also see AI as a pragmatic tool to improve care, address variation, and create capacity (e.g., an AI pharmacy pilot for polypharmacy and tools for scheduling and transportation).
"We don't break out specific dollars associated with those initiatives." — Benjamin Adams (CFO)