Addus HomeCare (ADUS) 2026 Jefferies Healthcare Services and Technology Conference summary

Major acquisition and integration plans

• Announced acquisition of a large personal care division, concentrated in Texas, Illinois, California, and Arizona, for $275 million, expected to close in Q1 2027 pending regulatory approval.

• Integration will mirror a previous Gentiva transaction, with a favorable timeframe and experienced team; system conversions and operational synergies are anticipated.

• Revenue run rate for the acquired assets is $280 million, with gross margins expected in the upper 20% range and EBITDA synergies to be realized over 12–18 months.

• EMR conversion to Homecare Homebase is scheduled for late 2027 or early 2028, with current systems maintained until then.

• Positive feedback from payers on the acquisition, with opportunities for value-based contracts and network consolidation.

Operational performance and technology initiatives

• Same-store performance accelerated in Q2, driven by improved fill rates (84–85%) and targeted growth of 2–2.5% in hours year-over-year.

• Rate increases in Illinois, Texas, and New Mexico have supported growth, with expectations to remain at the high end of the 3–5% target range.

• Caregiver app in Illinois enables real-time scheduling adjustments, boosting utilization and fill rates; rollout to other states is ongoing.

• Labor environment is stable and competitive due to state rate support and flexible scheduling.

Home health and M&A strategy

• Home health admissions grew 9.8% in Q2, attributed to leadership changes and process standardization; focus remains on profitable growth.

• Appetite for home health acquisitions remains, with personal care as the primary M&A focus; more large opportunities expected in the next 12–18 months.

• Ideal acquisition targets are at scale in new markets, with strong compliance and clinical processes; IT system compatibility is not a barrier.