You should read the following discussion and analysis of our financial condition and results of operations with our unaudited condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q. Cautionary Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statements that address future results or occurrences. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “would,” “should,” “could” or the negative thereof. Generally, the words “anticipate,” “believe,” “continue,” “expect,” “intend,” “estimate,” “project,” “plan” and similar expressions identify forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance are forward-looking statements. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors, many of which are outside of our control, which could cause our actual results, performance or achievements to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: •the impact of internal or governmental investigations, regulatory actions, whistleblower lawsuits and other legal proceedings; •our dependence on key management personnel, key executive and local facility management personnel, the failure to attract and retain such personnel, including our Chief Executive Officer and Chief Financial Officer, and the impact of any disruptions from the recent transition of various executives; •the impact of competition for staffing, labor shortages and higher turnover rates on our labor costs and profitability; •the impact of inflationary pressure and interest rate volatility; •compliance with laws and government regulations; •our indebtedness, our ability to meet our debt obligations, and our ability to incur substantially more debt; •the impact of payments received from the government and third-party payors on our revenue and results of operations; •the impact of volatility in the global capital and credit markets, as well as significant developments in macroeconomic and political conditions that are out of our control, including any effects that ongoing global conflicts, tariffs, or trade disputes may have on financial markets and macroeconomic conditions; •the impact of general economic and employment conditions on our business and future results of operations, including increased construction and other costs due to inflation, the imposition of tariffs or trade disputes; •the impact from changes in expectations resulting from actuarial and other reviews of our liability reserves and other aspects of our business; •difficulties in successfully integrating the operations of acquired facilities or realizing the potential benefits and synergies of our acquisitions and joint ventures; •our ability to recruit and retain quality psychiatrists and other physicians, nurses, counselors and other medical support personnel; •the occurrence of patient incidents, which could result in negative media coverage, adversely affect the price of our securities and result in incremental regulatory burdens and governmental investigations; •the impact of class action and other claims brought against us or our facilities including claims for damages for personal injuries, medical malpractice, overpayments, breach of contract, securities law violations, tort and employee related claims; •the outcome of pending litigation; •the impact of carrying a large self-insured retention, the possibilities of being responsible for significant amounts not covered by insurance, premium increases and insurance not being available on acceptable terms because of our claims experience; •the impact of the enactment, amendment or expiration of statutes and regulations affecting the healthcare industry, and potential reductions to Medicare and Medicaid payment rates, changes in reimbursement practices or funding levels, or modification of Medicaid supplemental payment programs; 21 •the impact of the restructuring, consolidation, and elimination of federal agencies that regulate the healthcare industry, which could result in changes to federal agency reviews and enforcement activities, priorities, and guidance, and has the potential to cause delays in obtaining necessary or desired reviews and approvals for our facilities; •our acquisition, joint venture and wholly-owned de novo strategies, which expose us to a variety of operational and financial risks, as well as legal and regulatory risks; •the impact of state efforts to regulate the construction or expansion of healthcare facilities on our ability to operate and expand our operations; •our ability to implement our business strategies; •the potential impact of activist stockholder actions or tactics; •the impact of disruptions on our inpatient and outpatient volumes caused by pandemics, epidemics or outbreaks of infectious diseases; •our restrictive covenants, which may restrict our business and financing activities; •the impact of adverse weather conditions and climate change, including the effects of hurricanes, wildfires and other natural disasters, and any resulting outmigration; •we have experienced, and may in the future experience, cybersecurity incidents that could have an adverse impact on our operations, could result in the unauthorized access or acquisition of data we maintain, and/or could result in disclosures and/or investigations under the laws and regulations regarding information privacy; •the impact on our business if our information systems fail or our databases are destroyed or damaged; •our ability to access capital on acceptable terms; •our future cash flow and earnings; •the impact of our highly competitive industry on patient volumes; •our ability to cultivate and maintain relationships with referral sources; •the impact of the trend for insurance companies and managed care organizations to enter into sole source contracts on our ability to obtain patients; •the impact of value-based purchasing programs on our revenue; •our potential inability to extend leases at expiration; •the impact of controls designed to reduce inpatient services on our revenue; •the impact of different interpretations of accounting principles on our results of operations or financial condition; •the impact of environmental, health and safety laws and regulations, especially in locations where we have concentrated operations; •the impact of laws and regulations relating to privacy and security of patient health information and standards for electronic transactions; •the impact of a change in the mix of our earnings, adverse changes in our effective tax rate and adverse developments in tax laws generally; •changes in interpretations, assumptions and expectations regarding tax legislation and policy, including provisions that may be issued by federal and state taxing authorities; •failure to maintain effective internal control over financial reporting; •the impact of fluctuations in our operating results, quarter to quarter earnings and other factors on the price of our securities; •the impact of various executive orders affecting the broader healthcare industry; and •those risks and uncertainties described from time to time in our filings with the SEC. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. These risks and uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking 22 statements. These forward-looking statements are made only as of the date of this Quarterly Report on Form 10-Q. We do not undertake and specifically decline any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments. Overview Our business strategy is to become the indispensable behavioral healthcare provider for the high-acuity and complex needs patient population. We are committed to providing the communities we serve with quality, cost-effective behavioral healthcare services, while growing our business, increasing profitability and creating long-term value for our stockholders. This strategy includes five growth pathways: expansions of existing facilities, joint venture partnerships, de novo facilities, acquisitions and expansion across our continuum of care. At June 30, 2026, we operated 279 behavioral healthcare facilities with approximately 12,600 beds in 40 states and Puerto Rico. During the six months ended June 30, 2026, we added 322 beds, consisting of 42 beds added to existing facilities and 280 beds added through the opening of one wholly-owned facility and three joint venture facilities. The three joint venture facilities opened during the six months ended June 30, 2026, were through partnerships with Tufts Medicine, Orlando Heath, and Methodist Jennie Edmundson. During the six months ended June 30, 2026, we opened two CTCs. We are the leading publicly traded pure-play provider of behavioral healthcare services in the U.S. Management believes that we are positioned as a leading platform in a highly fragmented industry under the direction of an experienced management team that has significant industry expertise. Management expects to take advantage of several strategies that are more accessible as a result of our increased size and geographic scale, including continuing a national marketing strategy to attract new patients and referral sources, increasing our volume of out-of-state referrals, providing a broader range of services to new and existing patients and clients and selectively pursuing opportunities to expand our facility and bed count through acquisitions, wholly-owned de novo facilities, joint ventures and bed additions in existing facilities. Recent Legislative Developments On July 4, 2025, Congress passed the One Big Beautiful Bill Act (the “OBBBA”), its budget reconciliation act for fiscal year 2025. The OBBBA includes provisions that may impact our financial performance and may substantially modify certain state and federal statutes and regulations to which our operations are subject. The OBBBA provisions that may impact us have varying effective dates. We are unable to predict whether or how future legislation, rulemaking, or judicial action will impact implementation of the OBBBA. Of particular relevance to us, the OBBBA reduces the federal government’s overall Medicaid expenditures and tightens Medicaid eligibility requirements. The law limits eligibility for Medicaid by imposing work or community engagement requirements for adults under 65 years old in Medicaid expansion states, including states with waiver-based expansions, subject to limited exceptions, and requires eligibility redeterminations at least every six months for the Medicaid expansion state population. The potential for mid-year loss of coverage increases financial uncertainty and may disrupt ongoing treatment services, complicate eligibility and coverage verification, prior authorization processes, and exposure to uncompensated care or bad debt on patient accounts. State compliance is required by December 31, 2026. We do not expect a material impact on our operations as these requirements begin to be phased in during 2026, primarily due to exemptions for the populations we serve, including individuals with chronic substance use disorders and those with serious and complex medical conditions. In addition, the OBBBA includes significant changes to Medicaid funding mechanisms by restricting federal matching funds received by state Medicaid programs. The law prohibits states from establishing new provider assessments or taxes, or increasing the rates of existing provider assessments, for state fiscal years beginning after October 1, 2026, while also limiting the structure and application of such assessments. Pursuant to the OBBBA, the U.S. Department of Health and Human Services revised regulations governing state directed payment program arrangements to cap total payment rates paid by Medicaid managed care organizations for certain services at Medicare payment rates instead of average commercial rates and imposed lower caps in Medicaid expansion states, which impacts Medicaid payment rates for services rendered in our hospital facilities. The revised regulations apply to state directed payment programs established on or after July 4, 2025 unless the program meets certain grandfathering criteria. The OBBBA provides that payments under grandfathered programs will be reduced beginning January 1, 2028. Because our facilities rely in part on reimbursement from federal health care programs, including Medicaid, for the reimbursement of services rendered, these changes may have a negative impact on our financial performance. Ongoing budgetary uncertainties and continued efforts to reduce the federal deficit may result in further payment reductions to both Medicaid and Medicare programs. In addition to changes made to federal healthcare programs, the OBBBA contains policy changes that have decreased the number of individuals who obtain health insurance from Affordable Care Act (“ACA”) marketplace exchanges. For example, the OBBBA effectively ends automatic renewals of coverage by requiring pre-enrollment verification of eligibility. In addition to ending automatic renewals of ACA plans, the OBBBA eliminates federal enhanced subsidies of ACA marketplace exchange-based plans, which has resulted in significant cost increases for ACA plans. 23 Results of Operations The following table illustrates our consolidated results of operations for the respective periods shown (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Amount % Amount % Amount % Amount % Revenue $ 865,839 100.0 % $ 869,232 100.0 % $ 1,694,641 100.0 % $ 1,639,737 100.0 % Salaries, wages and benefits 474,095 54.8 % 452,417 52.0 % 941,135 55.6 % 897,688 54.7 % Professional fees 55,760 6.4 % 49,961 5.7 % 108,957 6.4 % 95,668 5.8 % Supplies 30,197 3.5 % 28,532 3.3 % 59,688 3.5 % 56,874 3.5 % Rents and leases 11,844 1.4 % 12,610 1.5 % 23,577 1.4 % 24,266 1.5 % Other operating expenses 155,747 18.0 % 134,414 15.5 % 286,826 16.9 % 248,416 15.1 % Depreciation and amortization 50,427 5.8 % 48,995 5.6 % 102,853 6.1 % 96,027 5.9 % Interest expense, net 38,178 4.4 % 35,138 4.0 % 76,508 4.5 % 64,320 3.9 % Debt extinguishment costs — 0.0 % — 0.0 % — 0.0 % 1,269 0.1 % Legal settlements expense — 0.0 % — 0.0 % 13,751 0.8 % 3,504 0.2 % Loss on impairment 7,364 0.9 % 1,452 0.2 % 7,364 0.4 % 1,452 0.1 % Gain on sale of property, net (2,359 ) -0.3 % (8,715 ) -1.0 % (3,581 ) -0.2 % (8,715 ) -0.5 % Transaction, legal and other costs 22,579 2.6 % 64,425 7.4 % 44,592 2.6 % 95,497 5.8 % Total expenses 843,832 97.5 % 819,229 94.2 % 1,661,670 98.0 % 1,576,266 96.1 % Income before income taxes 22,007 2.5 % 50,003 5.8 % 32,971 2.0 % 63,471 3.9 % Provision for income taxes 9,747 1.1 % 12,067 1.4 % 16,247 1.0 % 16,471 1.0 % Net income 12,260 1.4 % 37,936 4.4 % 16,724 1.0 % 47,000 2.9 % Net income attributable to noncontrolling interests (1,332 ) -0.2 % (7,809 ) -0.9 % (1,691 ) -0.1 % (8,499 ) -0.5 % Net income attributable to Acadia Healthcare Company, Inc. $ 10,928 1.3 % $ 30,127 3.5 % $ 15,033 0.9 % $ 38,501 2.3 % We believe that we are well positioned to help meet the growing demand for behavioral healthcare services and recorded revenue growth of 3.3% for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Similar to many other healthcare providers and other industries across the country, we have been navigating a tight labor market. While we experienced higher wage inflation compared to historical averages in recent years, we continue to see stability in our labor costs and our proactive focus helps us manage through this environment. We remain focused on ensuring that we have the level of staff to meet the demand in our markets across 40 states and Puerto Rico. 24 The following table sets forth percent changes in same facility operating data for the three and six months ended June 30, 2026 compared to the same periods in 2025: Three Months Ended Six Months Ended Same Facility Results (a) Revenue growth -0.1% 3.4% Patient days growth 0.8% 1.2% Admissions growth 6.4% 6.5% Average length of stay change (b) -5.3% -5.0% Revenue per patient day growth -0.8% 2.2% (a)Results for the periods presented include facilities we have operated more than one year and exclude certain closed services. (b)Average length of stay is defined as patient days divided by admissions. Same facility results include operating results only for facilities and services operated in both the current and prior year. These metrics exclude the operating results associated with facilities under operation for less than one year and facilities acquired during the current or prior year, as well as facilities divested or removed from service, and also exclude general and administrative costs related to our corporate functions. Such costs related to our corporate functions include, amongst others, costs for accounting and finance, information systems, human resources, legal and operational and executive leadership. General and administrative costs directly related to the facilities are included in same facility results. Such costs directly related to our facilities include, amongst others, labor at the facility level, insurance, including property, professional, legal and general liability insurance, hospital supplies, including medication, utilities and food service, and general maintenance costs for the facility. We determine which general and administrative costs to exclude and include in same facility results by ensuring those costs directly associated with facility operations are captured at the facility level for reporting. We believe that providing results on a same facility basis is helpful to our investors as a measure of our financial and operating performance because it neutralizes the impact of corporate-level items that do not arise out of our core operations at our facilities and because it neutralizes the impact of new facilities that are in early stages of operation and facilities that we no longer operate, each of which may distort investors’ understanding of our underlying performance at our existing and continuing facilities. Further, we believe that providing same facility information is helpful to our investors as a measure of the financial and operating performance of our existing and continuing facilities on a comparable basis, and same facility results metrics provide investors with information useful in understanding underlying organic growth in such facilities. For these reasons, we believe that same facility results are particularly useful during periods of significant expansion or contraction. Same facility results reflect adjustments that are intended to provide the specific presentation described above and that may be irregular in timing from period to period related to newly opened or acquired facilities or facilities that we no longer operate, and may omit certain results that investors may view as important. Same facility results may therefore not be indicative of the overall performance of our business, and should not be considered as an alternative for net income or any other performance measures derived in accordance with GAAP. Three months ended June 30, 2026 compared to the three months ended June 30, 2025 Revenue. Revenue decreased $3.4 million, or 0.4%, to $865.8 million for the three months ended June 30, 2026 from $869.2 million for the three months ended June 30, 2025. The three months ended June 30, 2026, included $22.3 million of revenue from one state government program based on timing of program approval, all of which related to services rendered in prior periods. The three months ended June 30, 2025, included $65.6 million of revenue from one state government program based on timing of program approval, $48.7 million of which related to services rendered in prior periods. Same facility revenue decreased $0.4 million, or 0.1%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, resulting from same facility decline in revenue per day of 0.8%, partially offset by same facility growth in patient days of 0.8% and same facility growth in admissions of 6.4%. Consistent with same facility revenue growth in 2025, the growth in same facility patient days for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 resulted from the addition of beds to our existing facilities and ongoing demand for our services. Salaries, wages and benefits. Salaries, wages and benefits (“SWB”) expense was $474.1 million for the three months ended June 30, 2026 compared to $452.4 million for the three months ended June 30, 2025, an increase of $21.7 million. SWB expense included $11.0 million and $10.5 million of equity-based compensation expense for the three months ended June 30, 2026 and 2025, respectively. Excluding equity-based compensation expense, SWB expense was $463.1 million, or 53.5% of revenue, for the three months ended June 30, 2026, compared to $441.9 million, or 50.8% of revenue, for the three months ended June 30, 2025. Same 25 facility SWB expense was $421.2 million for the three months ended June 30, 2026, or 49.2% of revenue, compared to $403.4 million for the three months ended June 30, 2025, or 47.1% of revenue. Professional fees. Professional fees were $55.8 million for the three months ended June 30, 2026, or 6.4% of revenue, compared to $50.0 million for the three months ended June 30, 2025, or 5.7% of revenue. Same facility professional fees were $48.2 million for the three months ended June 30, 2026, or 5.6% of revenue, compared to $43.8 million for the three months ended June 30, 2025, or 5.1% of revenue. Supplies. Supplies expense was $30.2 million for the three months ended June 30, 2026, or 3.5% of revenue, compared to $28.5 million for the three months ended June 30, 2025, or 3.3% of revenue. Same facility supplies expense was $29.5 million for the three months ended June 30, 2026, or 3.4% of revenue, compared to $27.9 million for the three months ended June 30, 2025, or 3.3% of revenue. Rents and leases. Rents and leases were $11.8 million for the three months ended June 30, 2026, or 1.4% of revenue, compared to $12.6 million for the three months ended June 30, 2025, or 1.5% of revenue. Same facility rents and leases were $10.2 million for the three months ended June 30, 2026, or 1.2% of revenue, compared to $11.2 million for the three months ended June 30, 2025, or 1.3% of revenue. Other operating expenses. Other operating expenses consisted primarily of purchased services, utilities, insurance, provider taxes, travel and repairs and maintenance expenses. Other operating expenses were $155.7 million for the three months ended June 30, 2026, or 18.0% of revenue, compared to $134.4 million for the three months ended June 30, 2025, or 15.5% of revenue. Same facility other operating expenses were $146.3 million for the three months ended June 30, 2026, or 17.1% of revenue, compared to $124.9 million for the three months ended June 30, 2025, or 14.6% of revenue. Other operating expenses for three months ended June 30, 2026 includes an unfavorable adjustment of $28.6 million to our estimated liability for self-insured professional and general liability claims relating to the settlement or expected settlement of certain prior year claims. Depreciation and amortization. Depreciation and amortization expense was $50.4 million for the three months ended June 30, 2026, or 5.8% of revenue, compared to $49.0 million for the three months ended June 30, 2025, or 5.6% of revenue. Interest expense. Interest expense was $38.2 million for the three months ended June 30, 2026 compared to $35.1 million for the three months ended June 30, 2025. The increase in interest expense was primarily the result of increased borrowings. Loss on impairment. During the three months ended June 30, 2026, we recorded non-cash property impairment charges totaling $7.4 million. During the three months ended June 30, 2025, we recorded non-cash property impairment charges totaling $1.5 million. Gain on sale of property, net. During the three months ended June 30, 2026, we recorded a $2.4 million gain on property sale related to the sale of several closed properties. During the three months ended June 30, 2025, we recorded an $8.7 million gain on property sale related to the sale of a facility. Transaction, legal and other costs. Transaction, legal and other costs were $22.6 million for the three months ended June 30, 2026, compared to $64.4 million for the three months ended June 30, 2025. Transaction, legal and other costs represent legal, accounting, government investigation, termination, restructuring, management transition, acquisition and other similar costs incurred in the respective period, as summarized below (in thousands). Three Months Ended June 30, 2026 2025 Legal, accounting and other acquisition-related costs $ 9,324 $ 825 Government investigations 7,471 53,526 Termination and restructuring costs 5,784 10,074 Total $ 22,579 $ 64,425 Legal, accounting and other acquisition-related costs include costs incurred for the development of new facilities ($0.2 million and $0.4 million for the three months ended June 30, 2026 and 2025, respectively); and legal and settlement costs incurred related to certain litigation not included in government investigations ($9.1 million and $0.4 million for the three months ended June 30, 2026 and 2025, respectively). Government investigations include legal fees and settlement costs related to certain litigation, including the matters referenced in Note 8 – Commitments and Contingencies in the accompanying notes to our condensed consolidated financial statements. Termination and restructuring costs include costs, net of gains, incurred related to workforce reductions, contract amendments, and the closure and disposition of certain facilities, including related lease terminations. Provision for income taxes. For the three months ended June 30, 2026, the provision for income taxes was $9.7 million, reflecting an effective tax rate of 44.3%, compared to $12.1 million, reflecting an effective tax rate of 24.1%, for the three months ended June 30, 2025. The increase in the effective tax rate for the three months ended June 30, 2026 compared to the 26 three months ended June 30, 2025 was primarily attributable to an increase in nondeductible legal settlements and an increase in valuation allowances against certain state deferred tax assets in the current year. As we continue to monitor the implications of potential tax legislation in each of our jurisdictions, we may adjust our estimates and record additional amounts for tax assets and liabilities. Any adjustments to our tax assets and liabilities could materially impact our provision for income taxes and our effective tax rate in the periods in which they are made. Six months ended June 30, 2026 compared to the six months ended June 30, 2025 Revenue. Revenue increased $54.9 million, or 3.3%, to $1,694.6 million for the six months ended June 30, 2026 from $1,639.7 million for the six months ended June 30, 2025. The six months ended June 30, 2026, included $34.0 million of revenue from two state government programs based on timing of program approval, all of which related to services rendered in prior periods. The six months ended June 30, 2025, included $65.6 million of revenue from one state government program based on timing of program approval, $34.4 million of which related to services rendered in prior periods. Same facility revenue increased $54.6 million, or 3.4%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, resulting from same facility growth in revenue per day of 2.2%, same facility growth in patient days of 1.2%, and same facility growth in admissions of 6.5%. Consistent with same facility revenue growth in 2025, the growth in same facility patient days for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 resulted from the addition of beds to our existing facilities and ongoing demand for our services. Salaries, wages and benefits. SWB expense was $941.1 million for the six months ended June 30, 2026 compared to $897.7 million for the six months ended June 30, 2025, an increase of $43.4 million. SWB expense included $18.9 million and $19.2 million of equity-based compensation expense for the six months ended June 30, 2026 and 2025. Excluding equity-based compensation expense, SWB expense was $922.2 million, or 54.4% of revenue, for the six months ended June 30, 2026, compared to $878.5 million, or 53.6% of revenue, for the six months ended June 30, 2025. Same facility SWB expense was $832.1 million for the six months ended June 30, 2026, or 49.8% of revenue, compared to $799.9 million for the six months ended June 30, 2025, or 49.5% of revenue. Professional fees. Professional fees were $109.0 million for the six months ended June 30, 2026, or 6.4% of revenue, compared to $95.7 million for the six months ended June 30, 2025, or 5.8% of revenue. Same facility professional fees were $93.1 million for the six months ended June 30, 2026, or 5.6% of revenue, compared to $84.1 million for the six months ended June 30, 2025, or 5.2% of revenue. Supplies. Supplies expense was $59.7 million for the six months ended June 30, 2026, or 3.5% of revenue, compared to $56.9 million for the six months ended June 30, 2025, or 3.5% of revenue. Same facility supplies expense was $58.0 million for the six months ended June 30, 2026, or 3.5% of revenue, compared to $55.6 million for the six months ended June 30, 2025, or 3.4% of revenue. Rents and leases. Rents and leases were $23.6 million for the six months ended June 30, 2026, or 1.4% of revenue, compared to $24.3 million for the six months ended June 30, 2025, or 1.5% of revenue. Same facility rents and leases were $20.2 million for the six months ended June 30, 2026, or 1.2% of revenue, compared to $21.5 million for the six months ended June 30, 2025, or 1.3% of revenue. Other operating expenses. Other operating expenses consisted primarily of purchased services, utilities, insurance, provider taxes, travel and repairs and maintenance expenses. Other operating expenses were $286.8 million for the six months ended June 30, 2026, or 16.9% of revenue, compared to $248.4 million for the six months ended June 30, 2025, or 15.1% of revenue. Same facility other operating expenses were $265.9 million for the six months ended June 30, 2026, or 15.9% of revenue, compared to $230.1 million for the six months ended June 30, 2025, or 14.2% of revenue. Other operating expenses for six months ended June 30, 2026 includes an unfavorable adjustment of $28.6 million to our estimated liability for self-insured professional and general liability claims relating to the settlement or expected settlement of certain prior year claims. Depreciation and amortization. Depreciation and amortization expense was $102.9 million for the six months ended June 30, 2026, or 6.1% of revenue, compared to $96.0 million for the six months ended June 30, 2025, or 5.9% of revenue. Interest expense. Interest expense was $76.5 million for the six months ended June 30, 2026 compared to $64.3 million for the six months ended June 30, 2025. The increase in interest expense was primarily the result of increased borrowings. Debt extinguishment costs. Debt extinguishment costs were $1.3 million for the six months ended June 30, 2025 related to the refinancing of the Prior Credit Facility. Legal settlements expense. Legal settlements expense was $13.8 million for the six months ended June 30, 2026 related to costs associated with the Sandoval Litigation. Legal settlements expense was $3.5 million for the six months ended June 30, 2025 related to costs associated with the Desert Hills Litigation. 27 Loss on impairment. During the six months ended June 30, 2026, we recorded non-cash property impairment charges totaling $7.4 million. During the six months ended June 30, 2025, we recorded non-cash property impairment charges of $1.5 million. Gain on sale of property, net. During the six months ended June 30, 2026, we recorded a $3.6 million gain on property sale related to the sale of several closed properties. During the six months ended June 30, 2025, we recorded an $8.7 million gain on property sale related to the sale of a facility. Transaction, legal and other costs. Transaction, legal and other costs were $44.6 million for the six months ended June 30, 2026, compared to $95.5 million for the six months ended June 30, 2025. Transaction, legal and other costs represent legal, accounting, government investigation, termination, restructuring, management transition, acquisition and other similar costs incurred in the respective period, as summarized below (in thousands). Six Months Ended June 30, 2026 2025 Government investigations $ 19,893 $ 84,538 Termination and restructuring costs 10,746 12,239 Legal, accounting and other acquisition-related costs 10,040 (1,280 ) Management transition costs 3,913 — Total $ 44,592 $ 95,497 Government investigations include legal fees and settlement costs related to certain litigation, including the matters referenced in Note 8 – Commitments and Contingencies in the accompanying notes to our condensed consolidated financial statements. Termination and restructuring costs include costs, net of gains, incurred related to workforce reductions, contract amendments, and the closure and disposition of certain facilities, including related lease terminations. Legal, accounting and other acquisition-related costs include costs incurred for the development of new facilities ($0.3 million and $1.3 million for six months ended June 30, 2026 and 2025, respectively); and legal and settlement costs incurred related to certain litigation not included in government investigations ($9.7 million and $(2.6) million for the six months ended June 30, 2026 and 2025, respectively). Management transition costs during the six months ended June 30, 2026, consist primarily of severance benefits incurred with the departure of the Company’s former Chief Executive Officer, Christopher H. Hunter. Provision for income taxes. For the six months ended June 30, 2026, the provision for income taxes was $16.2 million, reflecting an effective tax rate of 49.3%, compared to $16.5 million, reflecting an effective tax rate of 26.0%, for the six months ended June 30, 2025. The increase in the effective tax rate for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily attributable to an increase in nondeductible legal settlements and an increase in valuation allowances against certain state deferred tax assets in the current year. As we continue to monitor the implications of potential tax legislation in each of our jurisdictions, we may adjust our estimates and record additional amounts for tax assets and liabilities. Any adjustments to our tax assets and liabilities could materially impact our provision for income taxes and our effective tax rate in the periods in which they are made. Revenue Our revenue is primarily derived from services rendered to patients for inpatient psychiatric and substance abuse care, outpatient psychiatric care and adolescent residential treatment. We receive payments from the following sources for services rendered in our facilities: (i) state governments under their respective Medicaid and other programs; (ii) commercial insurers; (iii) the federal government under the Medicare program administered by CMS and other programs; and (iv) individual patients and clients. We determine the transaction price based on established billing rates reduced by contractual adjustments provided to third-party payors, discounts provided to uninsured patients and implicit price concessions. Contractual adjustments and discounts are based on contractual agreements, discount policies and historical experience. Implicit price concessions are based on historical collection experience. 28 The table below presents revenue by payor type and as a percentage of revenue (dollars in thousands) and includes an immaterial revision of amounts for the three months ended June 30, 2025, and the six months ended June 30, 2026 and 2025, to correct the classification of certain revenue among payors. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Amount % Amount % Amount % Amount % Commercial $ 185,797 21.5 % $ 204,135 23.5 % $ 366,653 21.6 % $ 393,810 24.0 % Medicare 122,286 14.1 % 118,904 13.7 % 237,981 14.0 % 233,445 14.2 % Medicaid 540,225 62.4 % 521,382 60.0 % 1,048,650 61.9 % 955,695 58.3 % Self-Pay 9,507 1.1 % 13,174 1.5 % 24,754 1.5 % 31,131 1.9 % Other 8,024 0.9 % 11,637 1.3 % 16,603 1.0 % 25,656 1.6 % Revenue $ 865,839 100.0 % $ 869,232 100.0 % $ 1,694,641 100.0 % $ 1,639,737 100.0 % The following tables present a summary of our aging of accounts receivable at June 30, 2026 and December 31, 2025: June 30, 2026 Current 30-90 90-150 >150 Total Commercial 14.0 % 4.0 % 2.7 % 9.5 % 30.2 % Medicare 8.3 % 1.6 % 0.7 % 2.0 % 12.6 % Medicaid 30.7 % 5.8 % 4.2 % 8.1 % 48.8 % Self-Pay 1.2 % 1.8 % 1.8 % 3.5 % 8.3 % Other 0.0 % 0.0 % 0.0 % 0.1 % 0.1 % Total 54.2 % 13.2 % 9.4 % 23.2 % 100.0 % December 31, 2025 Current 30-90 90-150 >150 Total Commercial 14.7 % 4.8 % 3.1 % 8.2 % 30.8 % Medicare 8.6 % 1.9 % 1.0 % 1.5 % 13.0 % Medicaid 31.1 % 6.9 % 4.3 % 6.9 % 49.2 % Self-Pay 1.3 % 1.5 % 1.5 % 2.7 % 7.0 % Total 55.7 % 15.1 % 9.9 % 19.3 % 100.0 % Liquidity and Capital Resources Cash provided by operating activities for the six months ended June 30, 2026 was $223.6 million compared to $145.0 million for the six months ended June 30, 2025. The increase in operating cash flows for the six months ended June 30, 2026 was primarily related to collection of the insurance proceeds for the 2019 Securities Litigation, an increase in funds received from certain state supplemental payment programs and favorable changes in working capital and other liabilities. Days sales outstanding were 49 days at both June 30, 2026 and December 31, 2025. Cash used in investing activities for the six months ended June 30, 2026 was $92.9 million compared to $334.0 million for the six months ended June 30, 2025. Cash used in investing activities for the six months ended June 30, 2026 primarily consisted of $115.1 million of cash paid for capital expenditures and $4.3 million of other, offset by $26.5 million of proceeds from the sale of property and equipment. Cash paid for capital expenditures for the six months ended June 30, 2026 was $115.1 million, consisting of routine or maintenance capital expenditures of $34.9 million and expansion capital expenditures of $80.2 million. We define expansion capital expenditures as those that increase the capacity of our facilities or otherwise enhance revenue. Routine or maintenance capital expenditures, including information technology capital expenditures, were approximately 2% of revenue for the six months ended June 30, 2026. Cash used in investing activities for the six months ended June 30, 2025 primarily consisted of $342.4 million of cash paid for capital expenditures, $8.2 million of cash paid for acquisitions and $0.1 million of other, offset by $16.6 million of proceeds from sales of property and equipment. Cash paid for capital expenditures for the six months ended June 30, 2025 was $342.4 million, consisting of routine or maintenance capital expenditures of $51.2 million and expansion capital expenditures of $291.2 million. Cash used in financing activities for the six months ended June 30, 2026 was $92.7 million compared to cash provided by financing activities of $244.2 million for the six months ended June 30, 2025. Cash used in financing activities for the six months ended June 30, 2026 consisted of principal payments on revolving credit facility of $160.0 million, principal payments on long-term 29 debt of $12.2 million, repurchase of shares for payroll tax withholding, net of proceeds from stock option exercises, of $3.8 million, distributions to noncontrolling partners in joint ventures of $2.6 million and $0.1 million of other, offset by borrowings on revolving credit facility of $85.0 million and contributions from noncontrolling partners in joint ventures of $1.0 million. Cash provided by financing activities for the six months ended June 30, 2025 consisted of borrowings on long-term debt of $1,200.0 million and borrowings on revolving credit facility of $830.0 million, offset by principal payments on revolving credit facility of $1,035.0 million, repayment of long-term debt of $670.9 million, repurchase of common stock of $50.0 million, payment of debt issuance costs of $18.6 million, principal payments on long-term debt of $4.1 million, repurchase of shares for payroll tax withholding, net of proceeds from stock option exercises, of $3.7 million, distributions to noncontrolling partners in joint ventures of $2.0 million, cash paid for contingent consideration of $1.5 million and $0.1 million of other. We had total available cash and cash equivalents of $171.3 million and $133.2 million at June 30, 2026 and December 31, 2025, respectively, of which approximately $12.4 million and $8.0 million was held by our foreign subsidiaries, respectively. Our strategic plan does not require the repatriation of foreign cash in order to fund our operations in the U.S. Credit Facility On the Credit Facility Closing Date, we entered into the Credit Agreement, which provides for the $1.0 billion Revolving Facility (including a $50.0 million sublimit for the issuance of letters of credit and a $50.0 million swingline subfacility) and the $650.0 million Term Loan Facility, each maturing on February 28, 2030. On the Credit Facility Closing Date, the full $650.0 million amount of the Term Loan Facility was funded, and $550.0 million was funded under the Revolving Facility, which amounts were used, among other things, to refinance the outstanding obligations under the Prior Credit Facility. Borrowings under the Credit Agreement bear interest at a floating rate equal to, at our option, either (i) a SOFR-based rate plus a margin ranging from 1.375% to 2.250% or (ii) a base rate plus a margin ranging from 0.375% to 1.250%, in each case, depending on our Consolidated Total Net Leverage Ratio. In addition, an unused fee that varies according to our Consolidated Total Net Leverage Ratio ranging from 0.200% to 0.350% is payable quarterly in arrears based on the average daily undrawn portion of the commitments in respect of the Revolving Facility. The Term Loan Facility requires quarterly principal repayments of $8.1 million through March 31, 2028, $12.2 million from June 30, 2028 to March 31, 2029 and $16.3 million from June 30, 2029 to December 31, 2029, with the remaining outstanding principal balance of the Term Loan Facility due on the maturity date of February 28, 2030. We have the ability to increase the amount of the Credit Facility, which may take the form of increases to the Revolving Facility or the Term Loan Facility or the issuance of one or more Incremental Facilities, upon obtaining additional commitments from new or existing lenders and the satisfaction of certain customary conditions precedent for such Incremental Facilities. Such Incremental Facilities may not exceed the sum of (i) the greater of $710.0 million and an amount equal to 100% of our LTM Consolidated EBITDA at the time of determination and (ii) additional amounts that would not cause our Consolidated Senior Secured Net Leverage Ratio to exceed 4.0 to 1.0. Subject to certain exceptions, substantially all of our existing and subsequently acquired or organized direct and indirect wholly-owned U.S. subsidiaries are required to guarantee the repayment of our obligations under the Credit Agreement. The obligations of us and such guarantor subsidiaries are secured by a pledge of substantially all of our and such guarantor subsidiaries’ assets (excluding all real property and certain other customarily excluded assets). The Credit Agreement contains customary representations and warranties and affirmative and negative covenants, including limitations on the ability of us and our subsidiaries to: (i) incur debt; (ii) permit additional liens; (iii) make investments and acquisitions; (iv) merge or consolidate with others; (v) dispose of assets; (vi) pay dividends and distributions; (vii) pay junior indebtedness; and (viii) enter into affiliate transactions, in each case, subject to customary exceptions. In addition, the Credit Agreement contains financial covenants requiring us to maintain, on a consolidated basis as of the last day of each quarterly period, a Consolidated Total Net Leverage Ratio of not more than 5.0 to 1.0 (which may be increased in connection with a material acquisition to 5.5 to 1.0 for a four quarter period up to three times during the term of the Credit Agreement) and a Consolidated Interest Coverage Ratio of at least 3.0 to 1.0. The Credit Agreement also includes events of default customary for facilities of this type and upon the occurrence of such events of default, among other things, all outstanding loans under the Credit Agreement may be accelerated, lenders commitments terminated, and/or lenders may exercise collateral remedies. At June 30, 2026, our Consolidated Total Net Leverage Ratio was 4.1x, and we were in compliance with all financial covenants. Consolidated Total Net Leverage Ratio is being reported as calculated under the Credit Agreement and not pursuant to GAAP. Investors should refer to the agreements governing the Credit Agreement attached as exhibits to our periodic reports for further information related to the calculation thereof and should not consider Consolidated Total Net Leverage Ratio as an alternative for any measures derived in accordance with GAAP. For risks related to our indebtedness and compliance with these covenants, see “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. 30 During the six months ended June 30, 2026, we borrowed $85.0 million on the Revolving Facility and repaid $160.0 million of the balance outstanding. At June 30, 2026, we had $669.8 million of availability under the Revolving Facility and had standby letters of credit outstanding of $1.2 million related to security for multiple development projects. Prior Credit Facility On March 17, 2021, we entered into the Prior Credit Facility, which provided for the Prior Revolving Facility and the Prior Term Loan Facility, each of which was scheduled to mature on March 17, 2026. During the six months ended June 30, 2025, we borrowed $115.0 million on the Prior Revolving Facility and repaid $485.0 million of the balance outstanding prior to February 28, 2025, when the Prior Credit Facility was refinanced in connection with entering into the Credit Facility. On February 28, 2025, we refinanced the Prior Credit Facility by using the proceeds of the Credit Facility to repay the outstanding balances of the Prior Term Loan Facility and the Prior Revolving Facility, which totaled $670.9 million and $485.0 million, respectively. In connection therewith, we recorded a loss on extinguishment of $1.3 million, which is included in debt extinguishment costs in the condensed consolidated statements of income. Senior Notes 5.500% Senior Notes due 2028 On June 24, 2020, we issued $450.0 million of 5.500% Senior Notes. The 5.500% Senior Notes mature on July 1, 2028 and bear interest at a rate of 5.500% per annum, payable semi-annually in arrears on January 1 and July 1 of each year. 5.000% Senior Notes due 2029 On October 14, 2020, we issued $475.0 million of 5.000% Senior Notes. The 5.000% Senior Notes mature on April 15, 2029 and bear interest at a rate of 5.000% per annum, payable semi-annually in arrears on April 15 and October 15 of each year. 7.375% Senior Notes due 2033 On March 10, 2025, we issued $550.0 million of 7.375% Senior Notes. The 7.375% Senior Notes mature on March 15, 2033 and bear interest at a rate of 7.375% per annum, payable semi-annually in arrears on March 15 and September 15 of each year. The net proceeds from the issuance and sale of the 7.375% Senior Notes, together with cash on hand, were used to pay down $550.0 million of outstanding borrowings under the Revolving Facility. The indentures governing the Senior Notes contain covenants that, among other things, limit our ability and the ability of our restricted subsidiaries to: (i) pay dividends, redeem stock or make other distributions or investments; (ii) incur additional debt or issue certain preferred stock; (iii) transfer or sell assets; (iv) engage in certain transactions with affiliates; (v) create restrictions on dividends or other payments by the restricted subsidiaries; (vi) merge, consolidate or sell substantially all of our assets; and (vii) create liens on assets. The Senior Notes issued by us are guaranteed by each of our subsidiaries that guarantee our obligations under the Credit Agreement. The guarantees are full and unconditional and joint and several. We may redeem the Senior Notes at our option, in whole or part, at the dates and amounts set forth in the applicable indentures. Supplemental Guarantor Financial Information We conduct all of our business through our subsidiaries. The Senior Notes are jointly and severally guaranteed on an unsecured senior basis by all of our subsidiaries that guarantee our obligations under the Credit Facility. The summarized financial information presented below is consistent with our condensed consolidated financial statements, except transactions between combining entities have been eliminated. Financial information for our combined non-guarantor entities has been excluded pursuant to SEC Regulation S-X Rule 13-01. Presented below is condensed financial information for our combined wholly-owned subsidiary guarantors at June 30, 2026 and December 31, 2025, and for the six months ended June 30, 2026. The information presented below as of December 31, 2025 has been revised to correct an immaterial error included in the Supplemental Guarantor Financial Information in Part I, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. 31 Summarized balance sheet information (in thousands): June 30, 2026 December 31, 2025 Current assets $ 624,556 $ 585,902 Property and equipment, net 1,937,185 1,994,863 Goodwill 1,157,060 1,157,060 Total noncurrent assets 3,457,441 3,502,915 Current liabilities 531,661 498,156 Long-term debt 2,382,069 2,471,529 Total noncurrent liabilities 2,631,749 2,716,259 Redeemable noncontrolling interests — — Total equity 918,586 874,402 Summarized operating results information (in thousands): Six Months Ended June 30, 2026 Revenue $ 1,353,949 Income before income taxes 5,193 Net income (4,259 ) Net income attributable to Acadia Healthcare Company, Inc. (4,259 ) Contractual Obligations The following table presents a summary of contractual obligations at June 30, 2026 (in thousands): Payments Due by Period Less Than 1 Year 1-3 Years 3-5 Years More Than 5 Years Total Long-term debt (a) $ 175,636 $ 1,263,540 $ 945,109 $ 620,985 $ 3,005,270 Operating lease liabilities (b) 29,914 52,435 38,548 85,806 206,703 Finance lease liabilities 1,089 2,178 2,360 17,829 23,456 Total obligations and commitments $ 206,639 $ 1,318,153 $ 986,017 $ 724,620 $ 3,235,429 (a)Amounts include required principal and interest payments. The projected interest payments reflect the interest rates in place on our variable-rate debt at June 30, 2026. (b)Amounts exclude variable components of lease payments. Critical Accounting Policies There have been no material changes in our critical accounting policies at June 30, 2026 from those described in our Annual Report on Form 10-K for the year ended December 31, 2025.