Tenet Reports Strong Third Quarter 2025 Results; Raises 2025 Financial Outlook

DALLAS--( BUSINESS WIRE)--Tenet Healthcare Corporation (Tenet) (NYSE: THC) today announced its results for the quarter ended September 30, 2025.

"Our high acuity service line focus and operational discipline enabled us to deliver strong same store revenue growth and attractive operational performance and free cash flow in the third quarter," said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet. "We are well positioned for continued growth as we execute on our strategy in each of our markets."

Tenet’s results for third quarter 2025 versus third quarter 2024 are as follows:

Three Months Ended

September 30,

Nine Months Ended

September 30,

($ in millions, except per share results)

2025

2024

2025

2024

Net operating revenues

$5,289

$5,126

$15,783

$15,602

Net income available to Tenet common shareholders

$342

$472

$1,036

$2,882

Net income available to Tenet common shareholders per diluted share

$3.86

$4.89

$11.28

$29.27

Adjusted EBITDA 1

$1,099

$978

$3,383

$2,947

Adjusted diluted earnings per share 1

$3.70

$2.93

$12.10

$8.47

Balance Sheet and Cash Flows

Ambulatory Care (Ambulatory) Segment

Tenet’s Ambulatory business segment is comprised of the operations of United Surgical Partners International (USPI). As of September 30, 2025, USPI had interests in 530 ambulatory surgery centers (398 consolidated) and 26 surgical hospitals (eight consolidated) in 37 states.

Three Months Ended

September 30,

Nine Months Ended

September 30,

Ambulatory segment results ($ in millions)

2025

2024

2025

2024

Revenues

Net operating revenues

$1,275

$1,139

$3,739

$3,275

Same-facility system-wide net patient service revenues 2

$2,109

$1,947

$6,109

$5,682

Changes versus the Prior-Year Period

Same-facility system-wide net patient service revenues

8.3 %

8.7 %

7.5 %

Same-facility system-wide net patient service revenue per case

6.1 %

7.6 %

7.7 %

7.0 %

Same-facility system-wide surgical cases 2

2.1 %

1.0 %

(0.2) %

0.4 %

Same-facility system-wide surgical cases on same-business day basis 2

2.1 %

(0.6) %

0.4 %

(0.1) %

Adjusted EBITDA, Margins and NCI

Adjusted EBITDA

$492

$439

$1,446

$1,280

Adjusted EBITDA margin

38.6%

38.5%

38.7%

39.1%

Adjusted EBITDA less NCI

$292

$265

$874

$779

Hospital Operations and Services (Hospital) Segment

Tenet’s Hospital business segment is primarily comprised of acute care and specialty hospitals, imaging centers, ancillary outpatient facilities, micro-hospitals and physician practices. It also provides comprehensive end-to-end and focused point services, including hospital and physician revenue cycle management, patient communications and engagement support and value-based care solutions.

Three Months Ended

September 30,

Nine Months Ended

September 30,

Hospital segment results ($ in millions)

2025

2024

2025

2024

Revenues

Net operating revenues

$4,014

$3,987

$12,044

$12,327

Same-hospital net patient service revenues 3

$3,422

$3,184

$10,296

$9,688

Same-Hospital Volume Changes versus the Prior-Year Period

Admissions

1.5%

5.2%

2.5%

4.9%

Adjusted admissions 4

1.4%

2.7%

1.6%

2.3%

Outpatient visits (including outpatient ER visits)

(1.5)%

0.5%

(1.4)%

0.1%

Emergency Room visits (inpatient and outpatient)

(2.0)%

(0.2)%

(1.8)%

1.8%

Hospital surgeries

0.7%

0.6%

(0.8)%

—%

Adjusted EBITDA

$607

$539

$1,937

$1,667

Adjusted EBITDA margin

15.1%

13.5%

16.1%

13.5%

2025 Outlook 1

Tenet’s Outlook for full year 2025 (consolidated and by segment) follows.

CONSOLIDATED ($ in millions, except per share amounts)

FY 2025 Outlook

Net operating revenues

$21,150 to $21,350

Net income available to Tenet common stockholders

$1,334 to $1,399

Adjusted EBITDA

$4,470 to $4,570

Adjusted EBITDA margin

21.1% to 21.4%

Diluted income per common share

$14.66 to $15.37

Adjusted net income

$1,450 to $1,480

Adjusted diluted earnings per share

$15.93 to $16.26

Equity in earnings of unconsolidated affiliates

$255 to $265

Depreciation and amortization

$820 to $850

Interest expense

$815 to $825

Income tax expense 5

$510 to $535

Net income available to NCI

$940 to $990

Weighted average diluted common shares

~91 million

Net cash provided by operating activities

$3,150 to $3,500

Adjusted net cash provided by operating activities

$3,300 to $3,600

Capital expenditures

$875 to $975

Free cash flow

$2,275 to $2,525

Adjusted free cash flow

$2,425 to $2,625

NCI cash distributions

$780 to $830

Ambulatory Segment ($ in millions)

FY 2025 Outlook

Net operating revenues

$5,100 to $5,150

Adjusted EBITDA

$2,000 to $2,040

NCI

$790 to $820

Adjusted EBITDA less NCI

$1,210 to $1,220

Changes versus prior year 6:

Same-facility system-wide revenue

Up 5.5% to 7.5%

Hospital Segment ($ in millions)

FY 2025 Outlook

Net operating revenues

$16,050 to $16,200

Adjusted EBITDA

$2,470 to $2,530

NCI

$150 to $170

Changes versus prior year 6:

Inpatient admissions

Up 2.0% to 3.0%

Adjusted admissions

Up 1.5% to 2.5%

Management’s Webcast Discussion of Results

Tenet management will discuss the Company’s third quarter 2025 results in a webcast scheduled for 10:30 a.m. Eastern Time (9:30 a.m. Central Time) on October 28, 2025. Investors can access the webcast through the Company’s website at www.tenethealth.com/investors.

The slide presentation associated with the webcast referenced above, a copy of this earnings press release, and a related supplemental financial disclosures document will be available on the Company’s Investor Relations website on October 28, 2025.

Cautionary Statement

This release contains “forward-looking statements” - that is, statements that relate to future, not past, events. In this context, forward-looking statements often address the Company’s expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “assume,” “believe,” “budget,” “estimate,” “forecast,” “intend,” “plan,” “predict,” “project,” “seek,” “see,” “target,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could cause the Company’s actual results to be materially different than those expressed in the Company’s forward-looking statements include, but are not limited to the factors disclosed under “Forward-Looking Statements” and “Risk Factors” in our Form 10-K for the year ended December 31, 2024 and other filings with the Securities and Exchange Commission.

Footnotes

About Tenet Healthcare

Tenet Healthcare Corporation (NYSE: THC) is a diversified healthcare services company headquartered in Dallas. Our care delivery network includes United Surgical Partners International, the largest ambulatory platform in the country, which operates ambulatory surgery centers and surgical hospitals. We also operate a national portfolio of acute care and specialty hospitals, other outpatient facilities, a network of leading employed physicians and a global business center in Manila, Philippines. Our Conifer Health Solutions subsidiary provides revenue cycle management and value-based care services to hospitals, health systems, physician practices, employers and other clients. Across the Tenet enterprise, we are united by our mission to deliver quality, compassionate care in the communities we serve. For more information, please visit www.tenethealth.com.

Non-GAAP Financial Measures

The Company believes the non-GAAP measures described below are useful to investors and analysts because they present additional information on the Company’s financial performance. Investors, analysts, Company management and the Company’s Board of Directors utilize these non-GAAP measures, in addition to GAAP measures, to track the Company’s financial and operating performance and compare the Company’s performance to its peer companies, which use similar non-GAAP financial measures in their presentations and earnings releases. The Human Resources Committee of the Company’s Board of Directors also uses certain of these measures to evaluate management’s performance for the purpose of determining incentive compensation. Additional information regarding the purpose and utility of specific non-GAAP measures used in this release is set forth below.

The Company believes that Adjusted EBITDA is a useful measure, in part, because certain investors and analysts use both historical and projected Adjusted EBITDA, in addition to other GAAP and non-GAAP measures, as factors in determining the estimated fair value of shares of the Company’s common stock. Company management also regularly reviews the Adjusted EBITDA performance for each operating segment. The Company does not use Adjusted EBITDA to measure liquidity, but instead to measure operating performance.

The Company uses, and believes investors use, Free Cash Flow and Adjusted Free Cash Flow as supplemental non-GAAP measures to analyze cash flows generated from the Company’s operations. The Company believes these measures are useful to investors in evaluating its ability to fund distributions paid to noncontrolling interests or for acquisitions, purchasing equity interests in joint ventures or repaying debt.

These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Because these measures exclude many items that are included in the Company’s financial statements, they do not provide a complete measure of the Company’s operating performance. For example, the Company’s definitions of Free Cash Flow and Adjusted Free Cash Flow do not include other important uses of cash including (1) cash used to purchase businesses or joint venture interests, or (2) any items that are classified as Cash Flows from Financing Activities on the Company’s Consolidated Statement of Cash Flows, including items such as (i) cash used to repay borrowings, or (ii) distributions paid to noncontrolling interests. Accordingly, investors are encouraged to use GAAP measures when evaluating the Company’s financial performance.

See corresponding reconciliations of the non-GAAP financial measures referred to above to the most comparable GAAP financial measures in Tables #1 - 6 below.

Tenet Healthcare Corporation

Financial Statements and Reconciliations

Third Quarter Earnings Release

Table of Contents

Description

Page

Consolidated Statements of Operations

Consolidated Balance Sheets

Consolidated Statements of Cash Flows

Segment Reporting

Table #1 – Reconciliations of Net Income to Adjusted Net Income

Table #2 – Reconciliations of Net Income to Adjusted EBITDA

Table #3 – Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow and Adjusted Free Cash Flow

Table #4 – Reconciliations of Outlook Net Income to Outlook Adjusted Net Income

Table #5 – Reconciliations of Outlook Net Income to Outlook Adjusted EBITDA

Table #6 – Reconciliations of Outlook Net Cash Provided by Operating Activities to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow

TENET HEALTHCARE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in millions, except per share amounts)

Three Months Ended September 30,

2025

2024

Change

Net operating revenues

5,289

100.0

5,126

100.0

3.2

Equity in earnings of unconsolidated affiliates

1.2

3.2

Operating expenses:

Salaries, wages and benefits

2,204

41.7

2,218

43.3

(0.6

Supplies

931

17.6

881

17.2

5.7

Other operating expenses, net

1,119

21.2

1,111

21.6

0.7

Depreciation and amortization

218

4.1

209

4.1

Impairment and restructuring charges, and acquisition-related costs

0.4

Litigation and investigation (benefit) costs

(11

)

(0.2

0.2

Net gains on sales, consolidation and deconsolidation of facilities

(20

)

(0.4

(348

)

(6.8

Operating income

889

16.8

1,089

21.2

Interest expense

(206

)

(202

)

Other non-operating income, net

Income before income taxes

712

922

Income tax expense

(133

)

(241

)

Net income

579

681

Less: Net income available to noncontrolling interests

237

209

Net income available to Tenet Healthcare Corporation common shareholders

342

472

Earnings per share available to Tenet Healthcare Corporation common shareholders:

Basic

3.89

4.93

Diluted

3.86

4.89

Weighted average shares and dilutive securities outstanding (in thousands):

Basic

87,951

95,665

Diluted

88,610

96,652

TENET HEALTHCARE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in millions, except per share amounts)

Nine Months Ended September 30,

2025

2024

Change

Net operating revenues

15,783

100.0

15,602

100.0

1.2

Equity in earnings of unconsolidated affiliates

181

1.1

182

1.2

(0.5

Operating expenses:

Salaries, wages and benefits

6,483

41.1

6,707

43.0

(3.3

Supplies

2,770

17.6

2,717

17.4

2.0

Other operating expenses, net

3,328

21.0

3,413

21.9

(2.5

Depreciation and amortization

632

4.0

625

4.0

Impairment and restructuring charges, and acquisition-related costs

0.4

0.5

Litigation and investigation costs

0.2

0.1

Net gains on sales, consolidation and deconsolidation of facilities

)

—

(2,906

)

(18.6

Operating income

2,655

16.8

5,135

32.9

Interest expense

(616

)

(623

)

Other non-operating income, net

Loss from early extinguishment of debt

—

)

Income before income taxes

2,119

4,593

Income tax expense

(396

)

(1,101

)

Net income

1,723

3,492

Less: Net income available to noncontrolling interests

687

610

Net income available to Tenet Healthcare Corporation common shareholders

1,036

2,882

Earnings per share available to Tenet Healthcare Corporation common shareholders:

Basic

11.37

29.56

Diluted

11.28

29.27

Weighted average shares and dilutive securities outstanding (in thousands):

Basic

91,109

97,505

Diluted

91,805

98,518

TENET HEALTHCARE CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in millions)

September 30,

December 31,

2025

2024

ASSETS

Current assets:

Cash and cash equivalents

2,975

3,019

Accounts receivable

2,518

2,536

Inventories of supplies, at cost

346

Assets held for sale

Other current assets

1,889

1,760

Total current assets

7,810

7,682

Investments and other assets

2,939

3,037

Deferred income taxes

Property and equipment, at cost, less accumulated depreciation and amortization

6,091

6,049

Goodwill

11,158

10,691

Other intangible assets, at cost, less accumulated amortization

1,348

1,397

Total assets

29,418

28,936

LIABILITIES AND EQUITY

Current liabilities:

Current portion of long-term debt

Accounts payable

1,356

1,294

Accrued compensation and benefits

857

899

Professional and general liability reserves

287

238

Accrued interest payable

248

149

Liabilities held for sale

Income tax payable

Other current liabilities

1,687

1,607

Total current liabilities

4,560

4,310

Long-term debt, net of current portion

13,102

13,081

Professional and general liability reserves

891

900

Defined benefit plan obligations

296

298

Deferred income taxes

269

227

Other long-term liabilities

1,600

1,573

Total liabilities

20,718

20,389

Commitments and contingencies

Redeemable noncontrolling interests in equity of consolidated subsidiaries

2,917

2,727

Equity:

Shareholders’ equity:

Common stock

Additional paid-in capital

4,872

4,873

Accumulated other comprehensive loss

(174

)

(180

)

Retained earnings

4,044

3,008

Common stock in treasury, at cost

(4,736

)

(3,538

)

Total shareholders’ equity

4,014

4,171

Noncontrolling interests

1,769

1,649

Total equity

5,783

5,820

Total liabilities and equity

29,418

28,936

TENET HEALTHCARE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in millions)

Nine Months Ended

September 30,

2025

2024

Net income

1,723

3,492

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

632

625

Deferred income tax expense (benefit)

(29

)

Stock-based compensation expense

Impairment and restructuring charges, and acquisition-related costs

Litigation and investigation costs

Net gains on sales, consolidation and deconsolidation of facilities

)

(2,906

)

Loss from early extinguishment of debt

—

Equity in earnings of unconsolidated affiliates, net of distributions received

(13

)

Amortization of debt discount and debt issuance costs

Net gains from the sale of investments and long-lived assets

)

Other items, net

)

Changes in cash from operating assets and liabilities:

Accounts receivable

183

Inventories and other current assets

(58

)

Income taxes

821

Accounts payable, accrued expenses and other current liabilities

237

123

Other long-term liabilities

Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements

(84

)

(119

)

Net cash provided by operating activities

2,809

2,378

Cash flows from investing activities:

Purchases of property and equipment

(646

)

(601

)

Purchases of businesses or joint venture interests, net of cash acquired

(266

)

(524

)

Proceeds from sales of facilities and other assets

4,965

Proceeds from sales of marketable securities and long-term investments

Purchases of marketable securities and long-term investments

(69

)

(46

)

Other items, net

(18

)

Net cash provided by (used in) investing activities

(886

)

3,801

Cash flows from financing activities:

Repayments of borrowings

(90

)

(2,212

)

Proceeds from borrowings

Repurchases of common stock

(1,188

)

(672

)

Distributions paid to noncontrolling interests

(585

)

(496

)

Proceeds from the sale of noncontrolling interests

Purchases of noncontrolling interests

(88

)

(127

)

Advances from managed care payers

—

342

Repayments of advances from managed care payers

(33

)

(160

)

Taxes paid related to net share settlement, net of proceeds from shares issued under

stock-based compensation plans

(47

)

(14

)

Other items, net

)

Net cash used in financing activities

(1,967

)

(3,313

)

Net increase (decrease) in cash and cash equivalents

(44

)

2,866

Cash and cash equivalents at beginning of period

3,019

1,228

Cash and cash equivalents at end of period

2,975

4,094

Supplemental disclosures:

Interest paid, net of capitalized interest

(499

)

(555

)

Income tax payments, net

(329

)

(308

)

TENET HEALTHCARE CORPORATION

SEGMENT REPORTING

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

(Dollars in millions)

2025

2024

2025

2024

Net operating revenues:

Ambulatory Care

1,275

1,139

3,739

3,275

Hospital Operations and Services

4,014

3,987

12,044

12,327

Total

5,289

5,126

15,783

15,602

Equity in earnings of unconsolidated affiliates:

Ambulatory Care

176

175

Hospital Operations and Services

Total

181

182

Adjusted EBITDA:

Ambulatory Care

492

439

1,446

1,280

Hospital Operations and Services

607

539

1,937

1,667

Total

1,099

978

3,383

2,947

Adjusted EBITDA margins:

Ambulatory Care

38.6

38.5

38.7

39.1

Hospital Operations and Services

15.1

13.5

16.1

13.5

Total

20.8

19.1

21.4

18.9

Capital expenditures:

Ambulatory Care

Hospital Operations and Services

242

188

556

536

Total

280

216

646

601

TENET HEALTHCARE CORPORATION

Additional Supplemental Non-GAAP disclosures

Table #1 – Reconciliations of Net Income Available to Tenet Healthcare Corporation Common Shareholders to Adjusted Net Income Available to Common Shareholders

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

(Dollars in millions, except per share amounts)

2025

2024

2025

2024

Net income available to Tenet Healthcare Corporation common shareholders

342

472

1,036

2,882

Less:

Impairment and restructuring charges, and acquisition-related costs

(23

)

(19

)

(66

)

(75

)

Litigation and investigation benefit (costs)

)

(34

)

(18

)

Net gains on sales, consolidation and deconsolidation of facilities

348

2,906

Loss from early extinguishment of debt

—

)

Tax and noncontrolling interests impact of above items

(130

)

(755

)

Adjusted net income available to common shareholders

328

282

1,111

832

Diluted earnings per share

3.86

4.89

11.28

29.27

Less:

Impairment and restructuring charges, and acquisition-related costs

(0.26

)

(0.20

)

(0.72

)

(0.76

)

Litigation and investigation benefit (costs)

0.12

(0.09

)

(0.37

)

(0.19

)

Net gains on sales, consolidation and deconsolidation of facilities

0.23

3.60

0.04

29.50

Loss from early extinguishment of debt

—

(0.08

)

Tax and noncontrolling interests impact of above items

0.07

(1.35

)

0.23

(7.67

)

Adjusted diluted earnings per share

3.70

2.93

12.10

8.47

Weighted average basic shares outstanding (in thousands)

87,951

95,665

91,109

97,505

Weighted average dilutive shares outstanding (in thousands)

88,610

96,652

91,805

98,518

TENET HEALTHCARE CORPORATION

Additional Supplemental Non-GAAP disclosures

Table #2 – Reconciliations of Net Income Available to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

(Dollars in millions)

2025

2024

2025

2024

Net income available to Tenet Healthcare Corporation common shareholders

342

472

1,036

2,882

Less:

Net income available to noncontrolling interests

(237

)

(209

)

(687

)

(610

)

Net income

579

681

1,723

3,492

Income tax expense

(133

)

(241

)

(396

)

(1,101

)

Loss from early extinguishment of debt

—

)

Other non-operating income, net

Interest expense

(206

)

(202

)

(616

)

(623

)

Operating income

889

1,089

2,655

5,135

Litigation and investigation benefit (costs)

)

(34

)

(18

)

Net gains on sales, consolidation and deconsolidation of facilities

348

2,906

Impairment and restructuring charges, and acquisition-related costs

(23

)

(19

)

(66

)

(75

)

Depreciation and amortization

(218

)

(209

)

(632

)

(625

)

Adjusted EBITDA

1,099

978

3,383

2,947

Net operating revenues

5,289

5,126

15,783

15,602

Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues

6.5

9.2

6.6

18.5

Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin)

20.8

19.1

21.4

18.9

TENET HEALTHCARE CORPORATION

Additional Supplemental Non-GAAP disclosures

Table #3 – Reconciliations of Net Cash Provided by Operating Activities to

Free Cash Flow and Adjusted Free Cash Flow

(Unaudited)

2025

(Dollars in millions)

YTD

Net cash provided by operating activities

1,058

2,809

Purchases of property and equipment

(280

)

(646

)

Free cash flow

778

2,163

Net cash used in investing activities

(385

)

(886

)

Net cash used in financing activities

(323

)

(1,967

)

Net cash provided by operating activities

1,058

2,809

Less:

Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements

)

(84

)

Adjusted net cash provided by operating activities

1,061

2,893

Purchases of property and equipment

(280

)

(646

)

Adjusted free cash flow

781

2,247

2024

(Dollars in millions)

YTD

Net cash provided by operating activities

1,045

2,378

Purchases of property and equipment

(216

)

(601

)

Free cash flow

829

1,777

Net cash provided by investing activities

667

3,801

Net cash used in financing activities

(498

)

(3,313

)

Net cash provided by operating activities

1,045

2,378

Less:

Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements

(55

)

(119

)

Adjusted net cash provided by operating activities

1,100

2,497

Purchases of property and equipment

(216

)

(601

)

Adjusted free cash flow

884

1,896

TENET HEALTHCARE CORPORATION

Additional Supplemental Non-GAAP disclosures

Table #4 – Reconciliations of Outlook Net Income Available to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted Net Income Available to Common Shareholders

(Unaudited)

FY 2025

(Dollars in millions, except per share amounts)

Low

High

Net income available to Tenet Healthcare Corporation common shareholders

1,334

1,399

Less:

Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements (1)

(150

)

(100

)

Net gains on sales, consolidation and deconsolidation of facilities (2)

Tax and noncontrolling interests impact of above items

Adjusted net income available to common shareholders

1,450

1,480

Diluted earnings per share

14.66

15.37

Less:

Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements

(1.65

)

(1.10

)

Net gains on sales, consolidation and deconsolidation of facilities

0.05

Tax and noncontrolling interests impact of above items

0.33

0.16

Adjusted diluted earnings per share

15.93

16.26

Weighted average basic shares outstanding (in thousands)

90,000

Weighted average dilutive shares outstanding (in thousands)

91,000

The figures shown represent the Company's estimate for restructuring charges plus the actual year-to-date results for impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements. The Company does not generally forecast impairment charges, acquisition-related costs, and litigation costs and settlements because it does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook.

The Company does not generally forecast net gains (losses) on sales, consolidation and deconsolidation of facilities because the Company does not believe that it can forecast these items with sufficient accuracy since it is indeterminable at the time the Company provides its financial Outlook. The figures shown relate to transactions that have already occurred in 2025.

TENET HEALTHCARE CORPORATION

Additional Supplemental Non-GAAP disclosures

Table #5 – Reconciliations of Outlook Net Income Available to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted EBITDA

(Unaudited)

FY 2025

(Dollars in millions)

Low

High

Net income available to Tenet Healthcare Corporation common shareholders

1,334

1,399

Less:

Net income available to noncontrolling interests

(940

)

(990

)

Income tax expense

(510

)

(535

)

Interest expense

(825

)

(815

)

Other non-operating income, net

105

115

Net gains on sales, consolidation and deconsolidation of facilities (2)

Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements (1)

(150

)

(100

)

Depreciation and amortization

(820

)

(850

)

Adjusted EBITDA

4,470

4,570

Net income available to Tenet Healthcare Corporation common shareholders

1,334

1,399

Net operating revenues

21,150

21,350

Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues

6.3

6.6

Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin)

21.1

21.4

(1)

TENET HEALTHCARE CORPORATION

Additional Supplemental Non-GAAP disclosures

Table #6 – Reconciliations of Outlook Net Cash Provided by Operating Activities

to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow

(Unaudited)

FY 2025

(Dollars in millions)

Low

High

Net cash provided by operating activities

3,150

3,500

Purchases of property and equipment

(875

)

(975

)

Free cash flow

2,275

2,525

Net cash provided by operating activities

3,150

3,500

Less:

Payments for restructuring charges, acquisition-related costs and litigation costs and settlements (1)

(150

)

(100

)

Adjusted net cash provided by operating activities

3,300

3,600

Purchases of property and equipment

(875

)

(975

)

Adjusted free cash flow (2)

2,425

2,625

The figures shown represent the Company's estimate for restructuring payments plus the actual year-to-date payments for restructuring charges, acquisition-related costs, and litigation costs or settlements. The Company does not generally forecast payments for acquisition-related costs, and litigation costs and settlements because it does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook.

The Company’s definition of Adjusted Free Cash Flow does not include other important uses of cash including (1) cash used to purchase businesses or joint venture interests, or (2) any items that are classified as Cash Flows From Financing Activities on the Company’s Consolidated Statement of Cash Flows, including items such as (i) cash used to repay borrowings, and (ii) distributions paid to noncontrolling interests.