PACS Group Inc. (PACS) had quite the evening Wednesday, with shares skyrocketing 45.48% in after-hours trading to $24.48. The catalyst? A combination of strong third-quarter results and the completion of financial restatements that have been hanging over the company like a dark cloud.

The stock had already closed Wednesday's regular session at $16.83, up 16.63%, suggesting investors were anticipating good news.

Revenue Growth Accelerates

The Utah-based post-acute healthcare company posted third-quarter revenue of $1.34 billion, representing a solid 31% increase from the same period last year. Net income came in at $52.3 million, while adjusted EBITDA reached $131.5 million. Those are the kind of numbers that get investors excited, especially when combined with regulatory clarity.

Clearing the Books

Here's where things get interesting. PACS completed a restatement of its financial statements for the three months ended March 31, 2024, and the three- and six-month periods ended June 30, 2024. The restatement reduced revenue by $14.9 million for the first quarter of 2024 and $46.1 million for the second quarter.

More importantly, the company has now filed its 2024 Form 10-K and quarterly reports through the third quarter of 2025, bringing it current with SEC filing requirements. That's a big deal when you've been behind on paperwork.

Investigation Wrapped Up

PACS Group's independent Audit Committee, with support from outside counsel and forensic accountants, has completed its investigation into allegations raised in a short-seller report. CEO Jason Murray said in Wednesday's announcement, "With the restatement and Audit Committee investigation now complete, we are moving forward with a strong financial foundation."

Translation: The company believes it's put the controversy behind it and can focus on running the business.

Impressive Operating Metrics

Beyond the financial cleanup, PACS shared some compelling operational data. The company reported that 192 facilities, or 68.6% of its skilled nursing portfolio, earned 4- or 5-star Centers for Medicare & Medicaid Services Quality Measure ratings. That's a strong quality indicator in the healthcare space.

Occupancy at mature facilities stood at 94.8%, compared with an industry average of 79%, with a skilled mix of 33%. Cash and cash equivalents totaled $355.7 million as of September 30, providing a comfortable cushion.

Looking Ahead

PACS projected full-year revenue between $5.25 billion and $5.35 billion, with adjusted EBITDA in the $480 million to $490 million range. The company continues to operate 320 healthcare facilities across 17 states.

Stock Trajectory

While PACS shares have declined 1.58% over the past year, the stock has climbed 30.16% year-to-date and an impressive 58.03% over the last six months. The stock has traded in a 52-week range of $7.50 to $17.70 and carries a market capitalization of $2.61 billion.

The recent price action suggests investors are breathing a sigh of relief now that the financial house is in order and the company can focus on executing its growth strategy.