Addus HomeCare (ADUS) Q1 2026 earnings summary

Executive summary

• Net service revenues rose 7.7% year-over-year to $363.6 million for Q1 2026, driven by growth in personal care and hospice segments, partially offset by a decline in home health revenues.

• Net income increased 18.1% to $25.1 million, with adjusted EPS up 14.1% to $1.62 and adjusted EBITDA up 9.7% to $44.5 million.

• Cash flow from operations was $52.4 million, with cash on hand of $103.1 million and reduced bank debt to $94.3 million.

• Closed acquisition of HomeCourt Home Care in Indiana and signed a definitive agreement for another Indiana acquisition, both expected to be immediately accretive.

• Growth supported by positive hiring trends, operational improvements, and favorable reimbursement rate changes in key states.

Financial highlights

• Personal care segment revenue grew 8.8% to $281.1 million (77.3% of total revenue), with 6.5% organic growth and higher revenue per billable hour.

• Hospice revenue was $65.8 million (18.1% of revenue), with 7.7% organic growth and improved average daily census.

• Home health revenue was $16.7 million (4.6% of revenue), with improved operating income despite a year-over-year revenue decline.

• Gross margin remained stable at 31.9% year-over-year; adjusted EBITDA margin was 12.2%.

• Adjusted net income per diluted share was $1.62, excluding $0.06 in acquisition expenses and $0.20 in non-cash stock-based compensation.

Outlook and guidance

• Expect gross margin and adjusted EBITDA margin to remain stable and above 12% for the full year.

• Anticipate continued growth in personal care and hospice, with same-store personal care hours per business day targeted at 2–2.5%.

• Home health expected to return to growth in the second half of 2026, supported by new leadership and sales initiatives.

• Management expects continued organic growth and value from acquisitions in 2026, with optimism for further expansion and synergies across care segments.

• Targeting at least 10% annual revenue growth, benefiting from demographic trends and managed care expansion.