Addus HomeCare (ADUS) Q2 2026 earnings summary

Executive summary

• Net service revenues rose 8.0% year-over-year to $377.4 million in Q2 2026, with net income up 25.2% to $27.6 million, adjusted EPS up 16.1% to $1.73, and adjusted EBITDA up 11.9% to $49.2 million.

• Growth was driven by organic expansion in personal care and hospice segments, supported by acquisitions and state reimbursement rate increases, while home health revenues declined.

• Strong cash flow from operations at $40 million enabled a reduction in bank debt to $64.3 million and supported ongoing acquisition activity, including the entry into Indiana via HomeCourt Home Care.

• Positive hiring trends continued in personal care, with hiring rates supporting organic growth targets and fill rates improving, especially in Texas due to the caregiver app rollout.

• The company completed the HomeCourt Home Care acquisition in May 2026, expanding personal care services to Indiana.

Financial highlights

• Q2 2026 gross profit was $121.6 million (32.2% margin), up from $113.9 million (32.6%) in Q2 2025; adjusted EBITDA margin reached 13%.

• Operating income for Q2 2026 was $38.9 million (10.3% margin), up 18.4% year-over-year.

• Personal care segment accounted for 78.4% of revenue, with 6.8% organic revenue growth and a 2.2% increase in same-store hours per business day.

• Hospice operations delivered 11.1% organic revenue growth, representing 17% of revenue, with average daily census up 6.5% year-over-year.

• Home health revenue decreased 2.8% to 4.6% year-over-year but showed sequential improvement in revenue, operating income, and admissions.

Outlook and guidance

• Full-year adjusted EBITDA margin expected to remain between 12% and 13%, with Q4 typically being the strongest quarter due to hospice rate increases and payroll tax relief.

• Management anticipates continued growth through organic expansion and targeted acquisitions, leveraging a scalable operating model.

• Expects to maintain or slightly improve fill rates, aiming for upper 80% range on a consolidated basis.

• CMS regulatory changes and the ARPA funding extension through September 2026 may impact future results.

• Management highlights ongoing inflationary pressures, labor market tightness, and potential Medicaid funding changes as key uncertainties.