Acadia Healthcare (NASDAQ: ACHC) closed its fiscal second quarter of 2026 with reported revenue of $865.8 million - effectively flat against the $869.2 million posted a year earlier - and Adjusted EBITDA (the company's preferred non-GAAP measure, which strips out one-time items like restructuring charges and legal settlements) of $149.2 million, down 26.1% from $201.8 million in the second quarter of 2025. The quarter's load-bearing number is the $28.6 million unfavorable adjustment to professional and general liability (PLGL) reserves tied to prior-year claims, which alone explains most of the EBITDA shortfall against the prior-year quarter, and the $13.8 million of legal settlement expense booked for the Sandoval matter that, alongside elevated transaction costs, pushed GAAP net income attributable to Acadia down 64% to $10.9 million, or $0.12 per diluted share. The underlying operating story is a same-facility revenue line that was flat in the print but grew 3.2% after normalizing for the timing of supplemental payment program revenue, with patient days up 0.8%, admissions up 6.4% and revenue per patient day down 0.8% on mix and rate. The equity is being priced at roughly $2.87 billion of market cap on 93.1 million shares at $30.83 - a multiple of 8.4x the midpoint of 2026 Adjusted EBITDA guidance ($602.5 million) and 6.8x our estimate of last-twelve-months Adjusted EBITDA of $744 million - and the load-bearing question for the next six months is whether PLGL reserve volatility stabilizes and whether the 322 beds added in the first half plus 240 beds added in Q2 convert into the high-acuity admissions growth that the construction program is funded to deliver.