UNIVERSAL HEALTH SERVICES, INC. ANNOUNCES FINANCIAL RESULTS FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025, INCREASES 2025 FULL YEAR OPERATING RESULTS FORECAST AND ANNOUNCES $1.5 BILLION INCREASE TO STOCK REPURCHASE PROGRAM AUTHORIZATION

Consolidated Results of Operations, As Reported and As Adjusted – Three-month periods ended September 30, 2025 and 2024:

KING OF PRUSSIA, Pa., Oct. 27, 2025 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $373.0 million, or $5.86 per diluted share, during the third quarter of 2025, as compared to $258.7 million, or $3.80 per diluted share, during the third quarter of 2024. Net revenues increased by 13.4% to $4.495 billion during the third quarter of 2025, as compared to $3.963 billion during the third quarter of 2024.

As reflected on the Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our adjusted net income attributable to UHS during the third quarter of 2025 was $362.3 million, or $5.69 per diluted share, as compared to $252.5 million, or $3.71 per diluted share, during the third quarter of 2024.

Included in our reported and adjusted net income attributable to UHS during the third quarter of 2025 were the following items which were not included in our 2025 operating results forecast, as previously disclosed on July 28, 2025: (i) $90 million of pre-tax reimbursements (net of related provider taxes), covering the period of October 1, 2024 through September 30, 2025, in connection with a recently approved Medicaid state directed payment program in Washington, D.C., and; (ii) a $35 million pre-tax charge incurred to increase our reserves for self-insured professional and general liabilities resulting from unfavorable claims' trends.

As reflected on the Supplemental Schedule, included in our reported results during the third quarter of 2025 were: (i) an unrealized after-tax gain of $10.0 million, or $.16 per diluted share ($13.1 million pre-tax), resulting from an increase in the market value of certain equity securities (included in "Other (income) expense, net"), and; (ii) a favorable net after-tax impact of $0.6 million, or $.01 per diluted share, resulting from the net tax benefit recorded in connection with "ASU 2016-09", Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, net of the impact of executive compensation limitations pursuant to IRC section 162(m).

As reflected on the Supplemental Schedule, included in our reported results during the third quarter of 2024 were: (i) an unrealized after-tax gain of $2.3 million, or $.03 per diluted share ($3.0 million pre-tax), resulting from an increase in the market value of certain equity securities, and; (ii) a favorable after-tax impact of $3.9 million, or $.06 per diluted share, resulting from the tax benefit recorded in connection ASU 2016-09.

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization ("EBITDA net of NCI", NCI is net income attributable to noncontrolling interests), was $684.2 million during the third quarter of 2025, as compared to $528.6 million during the third quarter of 2024. Our adjusted earnings before interest, taxes, depreciation & amortization ("Adjusted EBITDA net of NCI"), which excludes the impact of other (income) expense, net, was $670.6 million during the third quarter of 2025, as compared to $526.5 million during the third quarter of 2024.

Consolidated Results of Operations, As Reported and As Adjusted – Nine-month periods ended September 30, 2025 and 2024:

Reported net income attributable to UHS was $1.043 billion, or $16.07 per diluted share, during the first nine months of 2025, as compared to $809.7 million, or $11.88 per diluted share, during the comparable period of 2024. Net revenues increased by 9.9% to $12.879 billion during the first nine months of 2025, as compared to $11.714 billion during the comparable period of 2024.

As reflected on the Supplemental Schedule, our adjusted net income attributable to UHS during the first nine months of 2025 was $1.030 billion, or $15.87 per diluted share, as compared to $798.2 million, or $11.71 per diluted share, during the comparable period of 2024.

As reflected on the Supplemental Schedule, included in our reported results during the first nine months of 2025 were: (i) an unrealized after-tax gain of $11.3 million, or $.17 per diluted share ($14.7 million pre-tax), resulting from an increase in the market value of certain equity securities, and; (ii) a favorable net after-tax impact of $1.9 million, or $.03 per diluted share, resulting from the net tax benefit recorded in connection with ASU 2016-09.

As reflected on the Supplemental Schedule, included in our reported results during the first nine months of 2024 were: (i) an unrealized after-tax loss of $4.0 million, or $.06 per diluted share ($5.3 million pre-tax), resulting from a decrease in the market value of certain equity securities, and; (ii) a favorable after-tax impact of $15.5 million, or $.23 per diluted share, resulting from the tax benefit recorded in connection with ASU 2016-09.

As calculated on the attached Supplemental Schedule, our EBITDA net of NCI, was $1.939 billion during the first nine months of 2025, as compared to $1.628 billion during the comparable period of 2024. Our Adjusted EBITDA net of NCI, was $1.912 billion during the first nine months of 2025, as compared to $1.631 billion during the comparable period of 2024.

Acute Care Services – Three and nine-month periods ended September 30, 2025 and 2024:

During the third quarter of 2025, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased by 2.0% while adjusted patient days increased by 0.4%, as compared to the third quarter of 2024. At these facilities, during the third quarter of 2025, net revenue per adjusted admission increased by 9.8% while net revenue per adjusted patient day increased by 11.5%, as compared to the third quarter of 2024. Net revenues generated from our acute care services, on a same facility basis, increased by 12.8% during the third quarter of 2025, as compared to the third quarter of 2024.

During the nine-month period ended September 30, 2025, at our acute care hospitals on a same facility basis, adjusted admissions increased by 2.1% while adjusted patient days increased by 0.6%, as compared to the comparable period of 2024. At these facilities, during the first nine months of 2025, net revenue per adjusted admission increased by 5.4% while net revenue per adjusted patient day increased by 7.0%, as compared to the comparable period of 2024. Net revenues generated from our acute care services, on a same facility basis, increased by 9.1% during the first nine months of 2025, as compared to the comparable period of 2024.

Behavioral Health Care Services – Three and nine-month periods ended September 30, 2025 and 2024:

During the third quarter of 2025, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 0.5% while adjusted patient days increased by 1.3%, as compared to the third quarter of 2024. At these facilities, during the third quarter of 2025, net revenue per adjusted admission increased by 8.8% and net revenue per adjusted patient day increased by 7.9%, as compared to the third quarter of 2024. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 9.3% during the third quarter of 2025, as compared to the third quarter of 2024.

During the first nine months of 2025, at our behavioral health care facilities on a same facility basis, adjusted admissions decreased by 0.2% while adjusted patient days increased by 0.7%, as compared to the comparable period of 2024. At these facilities, during the first nine months of 2025, net revenue per adjusted admission increased by 8.2% and net revenue per adjusted patient day increased by 7.2%, as compared to the comparable period of 2024. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 7.9% during the first nine months of 2025, as compared to the comparable period of 2024.

Net Cash Provided by Operating Activities and Liquidity:

Net Cash Provided by Operating Activities:

During the nine-month period ended September 30, 2025, our net cash provided by operating activities was $1.290 billion as compared to $1.409 billion during the first nine months of 2024. The $119 million net decrease in our net cash provided by operating activities consisted of: (i) a favorable change of $257 million resulting from an increase in net income plus/minus depreciation and amortization expense, stock-based compensation expense and gains/losses on sales of assets and businesses, offset by; (ii) an unfavorable change of $306 million in accounts receivable (which includes the above-mentioned $90 million of net reimbursements recorded during the third quarter of 2025, which we expect will be received during the fourth quarter of 2025, in connection with a recently approved Medicaid state directed payment program in Washington, D.C.); (iii) an unfavorable change of $41 million in payments made in settlement of self-insurance claims, net of commercial insurance reimbursements, and; (iv) an unfavorable change of $28 million in accrued and deferred income taxes.

Liquidity:

As of September 30, 2025, we had $965 million of aggregate available borrowing capacity pursuant to our $1.3 billion revolving credit facility, net of outstanding borrowings and letters of credit.

Increased Authorization to Stock Repurchase Program:

On October 27, 2025, our Board of Directors authorized a $1.5 billion increase to our stock repurchase program. Pursuant to this program, which including today's increased authorization has a current aggregate available repurchase authorization of $1.759 billion, shares of our Class B Common Stock may be repurchased, from time to time as conditions allow, on the open market or in negotiated private transactions.

Pursuant to this program, during the third quarter of 2025, we have repurchased 1.315 million shares at an aggregate cost of approximately $234.3 million (average price of approximately $178 per share). During the first nine months of 2025, we have repurchased 3.190 million shares at an aggregate cost of approximately $565.8 million (average price of approximately $177 per share).

Revised 2025 Operating Results Forecast:

Based upon the operating trends and financial results experienced during the first nine months of 2025, as well as the recent approval of a new Medicaid supplemental payment program in Washington, D.C., as indicated on the Revised Forecast table below, we are increasing our operating results forecast range for consolidated net revenues, adjusted earnings before interest, taxes, depreciation & amortization, and the impacts of other income/expense and net income attributable to noncontrolling interests ("Adjusted EBITDA, net of NCI"), and adjusted net income attributable to UHS per diluted share ("Adjusted EPS-diluted") for the year ended December 31, 2025.

The tables below include our revised full year 2025 operating results forecast, as well as our previously revised 2025 operating results forecast which was disclosed on July 28, 2025.

Revised Forecast

Previous Forecast

For the Year Ended

December 31, 2025

Low

High

Low

High

Net revenues

$17.306 billion

$17.445 billion

$17.096 billion

$17.312 billion

Adjusted EBITDA, net of NCI

$2.569 billion

$2.619 billion

$2.458 billion

$2.543 billion

Adjusted EPS – diluted

$21.50 per share

$22.10 per share

$20.00 per share

$21.00 per share

Because we do not believe we can forecast certain items with sufficient accuracy, our 2025 revised forecasted range of Adjusted EBITDA, net of NCI, net income attributable to UHS, and Adjusted EPS-diluted, exclude the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as changes in the market value of shares of certain equity securities, the impact of ASU 2016-09, and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, other amounts that may be reflected in the current or prior year financial statements that relate to prior periods, and the impact of share repurchases that differ from our forecasted assumptions. It is also subject to certain conditions including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures. Adjusted EBITDA net of NCI, is a non-GAAP financial measure and should not be considered a measure of financial performance under GAAP. We believe Adjusted EBITDA net of NCI is helpful to our investors as a measure of our operating performance. Please see the Supplemental Non-GAAP Disclosures - 2025 Revised Operating Results Forecast schedule as included herein for additional information and a reconciliation of our 2025 revised forecasted range of adjusted net income attributable to UHS to our 2025 revised forecasted range of Adjusted EBITDA net of NCI.

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on October 28, 2025. A live webcast of the call will be available on our website at www.uhs.com. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. A replay of the call will be available for one full year following the live call.

General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:

One of the nation's largest and most respected providers of hospital and healthcare services, Universal Health Services, Inc. (the "Company") has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, our annual revenues during 2024 were $15.8 billion. UHS ranked #271 on the Fortune 500; and #355 on Forbes' list of America's Largest Public Companies. In 2025, UHS was again recognized as one of the World's Most Admired Companies by Fortune.

Our operating philosophy is as effective today as it was upon the Company's founding in 1979, enabling us to provide compassionate care to our patients and their loved ones. Our strategy includes building or acquiring high quality hospitals in rapidly growing markets, investing in the people and equipment needed to allow each facility to thrive, and becoming the leading healthcare provider in each community we serve.

Headquartered in King of Prussia, PA, UHS has approximately 99,300 employees and, through its subsidiaries, operates 29 inpatient acute care hospitals, 345 inpatient behavioral health facilities, 156 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 39 states, Washington, D.C., the United Kingdom and Puerto Rico. We have changed the method of our outpatient behavioral health care facility counts during the third quarter of 2025 and substantially all of the increase from prior periods relates to that change in convention.

A wholly-owned subsidiary of UHS acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT). For additional information visit www.uhs.com.

This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarter ended June 30, 2025 and in Item 1A-Risk Factors, and Item 7-Forward-Looking Statements and Risk Factors, in our Form 10-K for the year ended December 31, 2024), may cause the results to differ materially from those anticipated in the forward-looking statements. These statements are subject to risks and uncertainties and therefore actual results may differ materially. Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Many of the factors that could affect our future results are beyond our control or ability to predict, including, but not limited to:

We believe that adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share, EBITDA net of NCI and Adjusted EBITDA net of NCI, which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect of material items impacting our net income attributable to UHS, such as, changes in the market value of shares of certain equity securities, the impact of ASU 2016-09, net of the impact of executive compensation limitations pursuant to IRC section 162(m), and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income attributable to UHS, as determined in accordance with GAAP, and as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-Q for the quarter ended June 30, 2025 and our Report on Form 10-K for the year ended December 31, 2024. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.

Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

Three months

Nine months

ended September 30,

2025

2024

2025

2024

Net revenues

$4,495,245

$3,963,027

$12,878,781

$11,714,213

Operating charges:

Salaries, wages and benefits

2,071,898

1,912,308

6,037,953

5,611,304

Other operating expenses

1,294,721

1,090,197

3,563,039

3,165,483

Supplies expense

414,583

390,250

1,236,249

1,181,886

Depreciation and amortization

155,060

149,567

455,409

438,050

Lease and rental expense

37,295

36,540

109,348

108,165

3,973,557

3,578,862

11,401,998

10,504,888

Income from operations

521,688

384,165

1,476,783

1,209,325

Interest expense, net

38,431

44,660

113,851

146,385

Other (income) expense, net

(13,629)

(2,028)

(27,767)

3,315

Income before income taxes

496,886

341,533

1,390,699

1,059,625

Provision for income taxes

117,781

75,623

327,354

233,563

Net income

379,105

265,910

1,063,345

826,062

Less: Net income (loss) attributable to

noncontrolling interests ("NCI")

6,148

7,196

20,490

16,362

Net income attributable to UHS

$372,957

$258,714

$1,042,855

$809,700

Basic earnings per share attributable to UHS (a)

$5.92

$3.89

$16.27

$12.11

Diluted earnings per share attributable to UHS (a)

$5.86

$3.80

$16.07

$11.88

Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

Three months

Nine months

(a) Earnings per share calculation:

ended September 30,

2025

2024

2025

2024

Basic and diluted:

Net income attributable to UHS

$372,957

$258,714

$1,042,855

$809,700

Less: Net income attributable to unvested restricted share grants

(50)

Net income attributable to UHS - basic and diluted

$372,957

$258,714

$1,042,855

$809,650

Weighted average number of common shares - basic

62,974

66,537

64,100

66,873

Basic earnings per share attributable to UHS:

$5.92

$3.89

$16.27

$12.11

Weighted average number of common shares

62,974

66,537

64,100

66,873

Add: Other share equivalents

689

1,571

797

1,297

Weighted average number of common shares and equiv. - diluted

63,663

68,108

64,897

68,170

Diluted earnings per share attributable to UHS:

$5.86

$3.80

$16.07

$11.88

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")

For the Three Months ended September 30, 2025 and 2024

(in thousands, except per share amounts)

(unaudited)

Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization

("EBITDA/Adjusted EBITDA net of NCI")

Three months ended

% Net

Three months ended

% Net

September 30, 2025

revenues

September 30, 2024

revenues

Net income attributable to UHS

$372,957

$258,714

Depreciation and amortization

155,060

149,567

Interest expense, net

38,431

44,660

Provision for income taxes

117,781

75,623

EBITDA net of NCI

$684,229

15.2 %

$528,564

13.3 %

Other (income) expense, net

(13,629)

(2,028)

Adjusted EBITDA net of NCI

$670,600

14.9 %

$526,536

13.3 %

Net revenues

$4,495,245

$3,963,027

Calculation of Adjusted Net Income Attributable to UHS

Three months ended

September 30, 2025

September 30, 2024

Per

Amount

Diluted Share

Amount

Diluted Share

Net income attributable to UHS

$372,957

$5.86

$258,714

$3.80

Plus/minus after-tax adjustments:

Unrealized (gain) loss on equity securities

(10,043)

(0.16)

(2,275)

(0.03)

Impact of ASU 2016-09, net

(623)

(0.01)

(3,928)

(0.06)

Subtotal adjustments

(10,666)

(0.17)

(6,203)

(0.09)

Adjusted net income attributable to UHS

$362,291

$5.69

$252,511

$3.71

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")

For the Nine Months ended September 30, 2025 and 2024

(in thousands, except per share amounts)

(unaudited)

Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization

("EBITDA/Adjusted EBITDA net of NCI")

Nine months ended

% Net

Nine months ended

% Net

September 30, 2025

revenues

September 30, 2024

revenues

Net income attributable to UHS

$1,042,855

$809,700

Depreciation and amortization

455,409

438,050

Interest expense, net

113,851

146,385

Provision for income taxes

327,354

233,563

EBITDA net of NCI

$1,939,469

15.1 %

$1,627,698

13.9 %

Other (income) expense, net

(27,767)

3,315

Adjusted EBITDA net of NCI

$1,911,702

14.8 %

$1,631,013

13.9 %

Net revenues

$12,878,781

$11,714,213

Calculation of Adjusted Net Income Attributable to UHS

Nine months ended

September 30, 2025

September 30, 2024

Per

Amount

Diluted Share

Amount

Diluted Share

Net income attributable to UHS

$1,042,855

$16.07

$809,700

$11.88

Plus/minus after-tax adjustments:

Unrealized (gain) loss on equity securities

(11,292)

(0.17)

4,038

0.06

Impact of ASU 2016-09, net

(1,880)

(0.03)

(15,540)

(0.23)

Subtotal adjustments

(13,172)

(0.20)

(11,502)

(0.17)

Adjusted net income attributable to UHS

$1,029,683

$15.87

$798,198

$11.71

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

September 30,

December 31,

2025

2024

Assets

Current assets:

Cash and cash equivalents

112,895

125,983

Accounts receivable, net

2,585,335

2,177,751

Supplies

226,655

220,940

Other current assets

333,077

291,614

Total current assets

3,257,962

2,816,288

Property and equipment

13,449,399

12,643,283

Less: accumulated depreciation

(6,476,366)

(6,071,058)

6,973,033

6,572,225

Other assets:

Goodwill

3,989,370

3,932,879

Deferred income taxes

145,319

118,449

Right of use assets-operating leases

382,430

418,719

Deferred charges

9,363

9,404

Other

586,447

601,785

Total Assets

15,343,924

14,469,749

Liabilities and Stockholders' Equity

Current liabilities:

Current maturities of long-term debt

740,186

40,059

Accounts payable and other liabilities

2,332,418

2,081,479

Operating lease liabilities

73,334

74,649

Federal and state taxes

13,252

14,219

Total current liabilities

3,159,190

2,210,406

Other noncurrent liabilities

589,854

655,806

Operating lease liabilities noncurrent

346,467

376,239

Long-term debt

3,950,934

4,464,482

Redeemable noncontrolling interest

66,982

13,293

UHS common stockholders' equity

7,169,693

6,666,207

Noncontrolling interest

60,804

83,316

Total equity

7,230,497

6,749,523

Total Liabilities and Stockholders' Equity

15,343,924

14,469,749

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Nine months

ended September 30,

2025

2024

Cash Flows from Operating Activities:

Net income

$1,063,345

$826,062

Adjustments to reconcile net income to net

cash provided by operating activities:

Depreciation & amortization

455,409

438,050

Loss (gain) on sales of assets and businesses

2,833

(5,124)

Costs related to extinguishment of debt

3,158

Stock-based compensation expense

70,586

72,727

Changes in assets & liabilities, net of effects from

acquisitions and dispositions:

Accounts receivable

(294,210)

11,703

Accrued interest

7,052

(1,762)

Accrued and deferred income taxes

(39,287)

(10,949)

Other working capital accounts

20,415

1,329

Other assets and deferred charges

(29,629)

(5,621)

Other, net

19,114

25,732

Accrued insurance expense, net of commercial premiums paid

177,054

175,104

Payments made in settlement of self-insurance claims, net of commercial insurance reimbursements

(162,978)

(121,745)

Net cash provided by operating activities

1,289,704

1,408,664

Cash Flows from Investing Activities:

Property and equipment additions

(733,932)

(697,865)

Proceeds received from sales of assets and businesses

2,980

30,219

Acquisition of businesses and property

(47,772)

Outflows from foreign exchange contracts that hedge our net U.K. investment

(49,351)

(35,667)

Costs incurred for purchase and development of enterprise resource planning application

(18,676)

Decrease in capital reserves of commercial insurance subsidiary

100

197

Net cash used in investing activities

(846,651)

(703,116)

Cash Flows from Financing Activities:

Repayments of long-term debt

(27,791)

(2,471,515)

Additional borrowings

208,986

2,210,248

Financing costs

(382)

(9,992)

Repurchase of common shares

(615,941)

(420,588)

Dividends paid

(38,902)

(40,302)

Issuance of common stock

12,119

10,864

Profit distributions to noncontrolling interests

(10,409)

(5,791)

Purchase (sale) of ownership interests by (from) minority members

18,728

8,959

Net cash used in financing activities

(453,592)

(718,117)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

2,390

2,696

Decrease in cash, cash equivalents and restricted cash

(8,149)

(9,873)

Cash, cash equivalents and restricted cash, beginning of period

224,752

214,470

Cash, cash equivalents and restricted cash, end of period

$216,603

$204,597

Supplemental Disclosures of Cash Flow Information:

Interest paid

$103,050

$144,378

Income taxes paid, net of refunds

$355,968

$236,975

Noncash purchases of property and equipment

$146,650

$87,333

Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)

% Change

3 Months ended

9 Months ended

Same Facility:

9/30/2025

Acute Care Hospitals (1)

Revenues

12.8 %

9.1 %

Adjusted Admissions

2.0 %

2.1 %

Adjusted Patient Days

0.4 %

0.6 %

Revenue Per Adjusted Admission

9.8 %

5.4 %

Revenue Per Adjusted Patient Day

11.5 %

7.0 %

Behavioral Health Hospitals (1)

Revenues

9.3 %

7.9 %

Adjusted Admissions

0.5 %

-0.2 %

Adjusted Patient Days

1.3 %

0.7 %

Revenue Per Adjusted Admission

8.8 %

8.2 %

Revenue Per Adjusted Patient Day

7.9 %

7.2 %

UHS Consolidated

Third Quarter Ended

Nine Months Ended

9/30/2025

9/30/2024

9/30/2025

9/30/2024

Revenues

$4,495,245

$3,963,027

$12,878,781

$11,714,213

EBITDA net of NCI

$684,229

$528,564

$1,939,469

$1,627,698

EBITDA Margin net of NCI

15.2 %

13.3 %

15.1 %

13.9 %

Adjusted EBITDA net of NCI

$670,600

$526,536

$1,911,702

$1,631,013

Adjusted EBITDA Margin net of NCI

14.9 %

13.3 %

14.8 %

13.9 %

Cash Flow From Operations

$380,678

$332,977

$1,289,704

$1,408,664

Capital Expenditures

$228,892

$247,932

$733,932

$697,865

Days Sales Outstanding

Debt

$4,691,120

$4,656,411

UHS' Shareholders Equity

$7,169,693

$6,605,696

Debt / Total Capitalization

39.6 %

41.3 %

Debt / EBITDA net of NCI (2)

1.83

2.21

Debt / Adjusted EBITDA net of NCI (2)

1.86

2.21

Debt / Cash From Operations (2)

2.41

2.50

(1) Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of May 1, 2024 to conform with current year presentation.

(2) Latest 4 quarters.

Universal Health Services, Inc.

Acute Care Hospital Services

For the Three and Nine months ended

September 30, 2025 and 2024

(in thousands)

(unaudited)

Same Facility Basis - Acute Care Hospital Services

Three months ended

Nine months ended

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

Amount

% of Net

Revenues

Amount

% of Net

Revenues

Amount

% of Net

Revenues

Amount

% of Net

Revenues

Net revenues

$2,433,065

100.0 %

$2,156,034

100.0 %

$6,949,443

100.0 %

$6,369,268

100.0 %

Operating charges:

Salaries, wages and benefits

939,607

38.6 %

898,260

41.7 %

2,739,668

39.4 %

2,617,905

41.1 %

Other operating expenses

695,141

28.6 %

600,217

27.8 %

1,971,712

28.4 %

1,757,780

27.6 %

Supplies expense

344,742

14.2 %

333,063

15.4 %

1,040,287

15.0 %

1,012,094

15.9 %

Depreciation and amortization

90,012

3.7 %

93,977

4.4 %

267,286

3.8 %

278,597

4.4 %

Lease and rental expense

25,284

1.0 %

24,205

1.1 %

74,456

1.1 %

72,352

1.1 %

Subtotal-operating expenses

2,094,786

86.1 %

1,949,722

90.4 %

6,093,409

87.7 %

5,738,728

90.1 %

Income from operations

338,279

13.9 %

206,312

9.6 %

856,034

12.3 %

630,540

9.9 %

Interest expense, net

319

0.0 %

1,077

0.0 %

968

0.0 %

3,363

0.1 %

Other (income) expense, net

(678)

(0.0) %

(590)

(0.0) %

(10,261)

(0.1) %

(1,107)

(0.0) %

Income before income taxes

$338,638

13.9 %

$205,825

9.5 %

$865,327

12.5 %

$628,284

9.9 %

All Acute Care Hospital Services

Three months ended

Nine months ended

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

Amount

% of Net

Revenues

Amount

% of Net

Revenues

Amount

% of Net

Revenues

Amount

% of Net

Revenues

Net revenues

$2,630,065

100.0 %

$2,253,819

100.0 %

$7,380,328

100.0 %

$6,617,586

100.0 %

Operating charges:

Salaries, wages and benefits

973,680

37.0 %

899,375

39.9 %

2,821,509

38.2 %

2,620,069

39.6 %

Other operating expenses

878,746

33.4 %

700,558

31.1 %

2,351,206

31.9 %

2,011,301

30.4 %

Supplies expense

354,697

13.5 %

333,036

14.8 %

1,064,075

14.4 %

1,011,917

15.3 %

Depreciation and amortization

97,389

3.7 %

94,747

4.2 %

288,406

3.9 %

279,420

4.2 %

Lease and rental expense

25,543

1.0 %

24,492

1.1 %

75,121

1.0 %

72,641

1.1 %

Subtotal-operating expenses

2,330,055

88.6 %

2,052,208

91.1 %

6,600,317

89.4 %

5,995,348

90.6 %

Income from operations

300,010

11.4 %

201,611

8.9 %

780,011

10.6 %

622,238

9.4 %

Interest expense, net

528

0.0 %

1,077

0.0 %

1,177

0.0 %

3,363

0.1 %

Other (income) expense, net

(623)

(0.0) %

(527)

(0.0) %

(9,806)

(0.1) %

(354)

(0.0) %

Income before income taxes

$300,105

11.4 %

$201,061

8.9 %

$788,640

10.7 %

$619,229

9.4 %

We believe that providing our results on a "Same Facility" basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Acute Care Hospital Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2024 and our Form 10-Q for the quarter ended June 30, 2025.

Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of May 1, 2024 to conform with current year presentation.

The All Acute Care Hospital Services table summarizes the results of operations for all our acute care operations during the periods presented. These amounts include: (i) our acute care results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months.

Universal Health Services, Inc.

Behavioral Health Care Services

For the Three and Nine months ended

September 30, 2025 and 2024

(in thousands)

(unaudited)

Same Facility Basis - Behavioral Health Care Services

Three months ended

Nine months ended

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

Amount

% of Net

Revenues

Amount

% of Net

Revenues

Amount

% of Net

Revenues

Amount

% of Net

Revenues

Net revenues

$1,813,502

100.0 %

$1,659,264

100.0 %

$5,346,883

100.0 %

$4,953,381

100.0 %

Operating charges:

Salaries, wages and benefits

990,740

54.6 %

910,044

54.8 %

2,890,753

54.1 %

2,669,555

53.9 %

Other operating expenses

347,370

19.2 %

316,234

19.1 %

999,325

18.7 %

937,738

18.9 %

Supplies expense

59,400

3.3 %

57,345

3.5 %

172,962

3.2 %

170,831

3.4 %

Depreciation and amortization

54,493

3.0 %

51,855

3.1 %

158,824

3.0 %

149,635

3.0 %

Lease and rental expense

11,494

0.6 %

11,526

0.7 %

33,316

0.6 %

34,383

0.7 %

Subtotal-operating expenses

1,463,497

80.7 %

1,347,004

81.2 %

4,255,180

79.6 %

3,962,142

80.0 %

Income from operations

350,005

19.3 %

312,260

18.8 %

1,091,703

20.4 %

991,239

20.0 %

Interest expense, net

1,246

0.1 %

1,041

0.1 %

3,425

0.1 %

3,076

0.1 %

Other (income) expense, net

(236)

(0.0) %

(794)

(0.0) %

(1,898)

(0.0) %

(2,341)

(0.0) %

Income before income taxes

$348,995

19.2 %

$312,013

18.8 %

$1,090,176

20.4 %

$990,504

20.0 %

All Behavioral Health Care Services

Three months ended

Nine months ended

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

Amount

% of Net

Revenues

Amount

% of Net

Revenues

Amount

% of Net

Revenues

Amount

% of Net

Revenues

Net revenues

$1,860,259

100.0 %

$1,706,612

100.0 %

$5,487,984

100.0 %

$5,088,711

100.0 %

Operating charges:

Salaries, wages and benefits

995,570

53.5 %

914,477

53.6 %

2,900,892

52.9 %

2,682,167

52.7 %

Other operating expenses

390,783

21.0 %

353,089

20.7 %

1,138,209

20.7 %

1,051,937

20.7 %

Supplies expense

59,696

3.2 %

57,566

3.4 %

173,544

3.2 %

171,574

3.4 %

Depreciation and amortization

55,294

3.0 %

52,227

3.1 %

159,961

2.9 %

150,577

3.0 %

Lease and rental expense

11,652

0.6 %

11,954

0.7 %

33,985

0.6 %

35,232

0.7 %

Subtotal-operating expenses

1,512,995

81.3 %

1,389,313

81.4 %

4,406,591

80.3 %

4,091,487

80.4 %

Income from operations

347,264

18.7 %

317,299

18.6 %

1,081,393

19.7 %

997,224

19.6 %

Interest expense, net

1,265

0.1 %

1,041

0.1 %

3,444

0.1 %

3,076

0.1 %

Other (income) expense, net

733

0.0 %

(861)

(0.1) %

(929)

(0.0) %

(2,408)

(0.0) %

Income before income taxes

$345,266

18.6 %

$317,119

18.6 %

$1,078,878

19.7 %

$996,556

19.6 %

We believe that providing our results on a "Same Facility" basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Behavioral Health Care Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2024 and our Form 10-Q for the quarter ended June 30, 2025.

The All Behavioral Health Care Services table summarizes the results of operations for all our behavioral health care facilities during the periods presented. These amounts include: (i) our behavioral health results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months.

Universal Health Services, Inc.

Selected Hospital Statistics

For the Three Months ended

September 30, 2025 and 2024

(unaudited)

AS REPORTED:

ACUTE

BEHAVIORAL HEALTH

9/30/25

9/30/24

% change

9/30/25

9/30/24

% change

Hospitals owned and leased

7.4 %

345

334

3.3 %

Average licensed beds

7,161

6,797

5.4 %

24,398

24,306

0.4 %

Average available beds

6,989

6,625

5.5 %

24,298

24,206

0.4 %

Patient days

412,353

401,479

2.7 %

1,639,882

1,622,411

1.1 %

Average daily census

4,482.1

4,363.9

2.7 %

17,824.8

17,634.9

1.1 %

Occupancy-licensed beds

62.6 %

64.2 %

-2.5 %

73.1 %

72.6 %

0.7 %

Occupancy-available beds

64.1 %

65.9 %

-2.6 %

73.4 %

72.9 %

0.7 %

Admissions

86,984

83,149

4.6 %

120,655

120,003

0.5 %

Length of stay

4.7

4.8

-2.1 %

13.6

13.5

0.7 %

Inpatient revenue

$13,935,095

$12,293,443

13.4 %

$3,063,186

$2,819,421

8.6 %

Outpatient revenue

9,827,354

8,573,731

14.6 %

282,966

267,721

5.7 %

Total patient revenue

23,762,449

20,867,174

13.9 %

3,346,152

3,087,142

8.4 %

Other revenue

315,779

266,833

18.3 %

99,370

84,759

17.2 %

Gross revenue

24,078,228

21,134,007

13.9 %

3,445,522

3,171,901

8.6 %

Total deductions

21,448,163

18,880,188

13.6 %

1,585,263

1,465,289

8.2 %

Net revenue

$2,630,065

$2,253,819

16.7 %

$1,860,259

$1,706,612

9.0 %

SAME FACILITY:

ACUTE

BEHAVIORAL HEALTH

9/30/25

9/30/24

% change

9/30/25

9/30/24

% change

Hospitals owned and leased

0.0 %

334

0.0 %

Average licensed beds

6,869

6,797

1.1 %

24,069

23,965

0.4 %

Average available beds

6,697

6,625

1.1 %

23,969

23,865

0.4 %

Patient days

401,148

401,479

-0.1 %

1,623,202

1,603,808

1.2 %

Average daily census

4,360.3

4,363.9

-0.1 %

17,643.5

17,432.7

1.2 %

Occupancy-licensed beds

63.5 %

64.2 %

-1.1 %

73.3 %

72.7 %

0.8 %

Occupancy-available beds

65.1 %

65.9 %

-1.2 %

73.6 %

73.0 %

0.8 %

Admissions

84,368

83,149

1.5 %

119,608

118,638

0.8 %

Length of stay

4.8

0.0 %

13.6

13.5

0.7 %

Universal Health Services, Inc.

Selected Hospital Statistics

For the Nine Months ended

September 30, 2025 and 2024

(unaudited)

AS REPORTED:

ACUTE

BEHAVIORAL HEALTH

9/30/25

9/30/24

% change

9/30/25

9/30/24

% change

Hospitals owned and leased

7.4 %

345

334

3.3 %

Average licensed beds

7,043

6,735

4.6 %

24,308

24,335

-0.1 %

Average available beds

6,871

6,563

4.7 %

24,208

24,235

-0.1 %

Patient days

1,243,297

1,212,669

2.5 %

4,860,246

4,845,060

0.3 %

Average daily census

4,554.2

4,425.8

2.9 %

17,803.1

17,682.7

0.7 %

Occupancy-licensed beds

64.7 %

65.7 %

-1.6 %

73.2 %

72.7 %

0.8 %

Occupancy-available beds

66.3 %

67.4 %

-1.7 %

73.5 %

73.0 %

0.8 %

Admissions

260,459

249,474

4.4 %

357,417

358,845

-0.4 %

Length of stay

4.8

4.9

-2.0 %

13.6

13.5

0.7 %

Inpatient revenue

$42,116,443

$37,549,121

12.2 %

$8,925,118

$8,348,744

6.9 %

Outpatient revenue

28,793,015

25,554,222

12.7 %

852,690

832,489

2.4 %

Total patient revenue

70,909,458

63,103,343

12.4 %

9,777,808

9,181,233

6.5 %

Other revenue

881,904

747,440

18.0 %

281,299

247,166

13.8 %

Gross revenue

71,791,362

63,850,783

12.4 %

10,059,107

9,428,399

6.7 %

Total deductions

64,411,034

57,233,197

12.5 %

4,571,123

4,339,688

5.3 %

Net revenue

$7,380,328

$6,617,586

11.5 %

$5,487,984

$5,088,711

7.8 %

SAME FACILITY:

ACUTE

BEHAVIORAL HEALTH

9/30/25

9/30/24

% change

9/30/25

9/30/24

% change

Hospitals owned and leased

0.0 %

334

0.0 %

Average licensed beds

6,798

6,735

0.9 %

24,099

23,913

0.8 %

Average available beds

6,626

6,563

1.0 %

23,999

23,813

0.8 %

Patient days

1,216,788

1,212,669

0.3 %

4,822,845

4,778,313

0.9 %

Average daily census

4,457.1

4,425.8

0.7 %

17,666.1

17,439.1

1.3 %

Occupancy-licensed beds

65.6 %

65.7 %

-0.2 %

73.3 %

72.9 %

0.5 %

Occupancy-available beds

67.3 %

67.4 %

-0.3 %

73.6 %

73.2 %

0.5 %

Admissions

254,141

249,474

1.9 %

354,853

354,469

0.1 %

Length of stay

4.8

4.9

-2.0 %

13.6

13.5

0.7 %

Universal Health Services, Inc.

Supplemental Non-GAAP Disclosures

2025 Revised Operating Results Forecast

(in thousands, except per share amounts)

Revised Forecast For The Year Ending December 31, 2025

% Net

Low

revenues

High

revenues

Net revenues

$17,306,000

$17,445,000

Adjusted net income attributable to UHS (a)

$1,382,259

$1,420,335

Depreciation and amortization

617,346

Interest expense

151,883

Other (income) expense, net

(16,389)

Provision for income taxes

434,352

446,316

Adjusted EBITDA net of NCI (b)

$2,569,451

14.8 %

$2,619,491

15.0 %

Adjusted net income attributable to UHS, per diluted share (a)

$21.50

$22.10

Shares used in computing diluted earnings per share

64,282

(a) Adjusted net income attributable to UHS/per diluted share exclude the following items because we do not believe we can forecast these items with sufficient accuracy. Such items include: the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as pre-tax unrealized gains/losses resulting from changes in the market value of shares of certain equity securities, the impact of ASU 2016-09, and other potential material items including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, other amounts that may be reflected in the current or prior year financial statements that relate to prior periods, and the impact of share repurchases that differ from our forecasted assumptions. Adjusted net income attributable to UHS/per diluted share is also subject to certain conditions including those as set forth in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.

(b) Adjusted EBITDA net of NCI is a non-GAAP financial measure and should not be considered a measure of financial performance under GAAP. We believe Adjusted EBITDA net of NCI is helpful to our investors as a measure of operating performance.

SOURCE Universal Health Services, Inc.