Amedisys (AMED) Q2 2025 earnings summary

Executive summary

• Net service revenue grew 5% year-over-year to $621.9M in Q2 2025, with adjusted EBITDA up 10% to $80.8M and adjusted EPS rising to $1.54.

• Net income for Q2 2025 was $28.1M, including $26.3M in merger-related expenses; six-month net income was $89.1M, including $43M in merger costs and a $48.1M gain on equity investment.

• Home Health and Hospice segments saw revenue and volume growth, with Home Health revenue at $396.2M and Hospice at $215.0M.

• The company is in the process of merging with UnitedHealth Group, facing DOJ litigation and regulatory hurdles, with trial set for October 2025.

• High Acuity Care admissions rose 29%, but the segment continued to generate operating losses.

Financial highlights

• Adjusted EBITDA margin improved to 13.0% from 12.4% year-over-year; gross margin slightly declined to 44.3%.

• Q2 2025 net income per diluted share was $0.84, down from $0.98 year-over-year; adjusted net income per diluted share was $1.54, up from $1.32.

• Operating cash flow was $67.2M, reflecting strong receivables collection.

• Free cash flow increased to $56.7M, and net leverage remained low at 0.1x.

• Days sales outstanding improved to 40.9, down from 52.1 a year ago.

Outlook and guidance

• CMS finalized a 2.9% hospice payment increase for FY 2025 and proposed a 2.4% increase for FY 2026.

• CMS finalized a 0.5% home health payment increase for CY 2025 but proposed a 6.4% decrease for CY 2026.

• Management expects continued operating losses in high acuity care but anticipates improvement as the segment scales.

• Forward-looking statements highlight risks related to the pending merger, regulatory approvals, and transaction costs.