SEC Review Strips $97.7 Million From Ardent Health's 2025 Non-GAAP Results
Regulatory Oversight
Company Background
Ardent Health (NYSE: ARDT) operates 30 acute care hospitals across six states, serving mid-sized urban markets primarily in Texas and Oklahoma. The company raised roughly $208 million in its 2024 IPO and reported full-year 2025 revenue of $6.32 billion. Adjusted EBITDA — not a GAAP measure — has been the centerpiece of its investor communications since going public.
The company has been navigating a difficult 2026. CEO Martin Bonick departed on June 2, 2026, replaced by former COO Dave Caspers. Second-quarter 2026 Adjusted EBITDA fell 32.3% year-over-year to $115 million, driven by lower surgery volumes and a comparison period that included an unusually large New Mexico state directed payment benefit. Management reaffirmed its full-year 2026 Adjusted EBITDA guidance of $485–$535 million at the August 4, 2026 earnings release.
What Was Disclosed
Following discussions with the staff of the SEC's Division of Corporation Finance, Ardent removed $97.7 million in aggregate adjustments from its 2025 Adjusted EBITDA and Adjusted EBITDAR presentations contained in its 2025 Annual Report on Form 10-K. The two items eliminated were: a $43.3 million add-back related to a change in accounting estimate for the collectability of accounts receivable, and a $54.5 million add-back for a New Mexico professional liability accrual — both recorded in the third quarter of 2025 and both previously excluded from Adjusted EBITDA on the grounds that management considered them non-recurring. As a result, 2025 Adjusted EBITDA falls from $545.0 million to $447.3 million, and 2025 Adjusted EBITDAR falls from $709.3 million to $611.6 million.