Aveanna Healthcare (AVAH) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $662.5 million, up 27.4% year-over-year; full-year revenue was $2,433.2 million, up 20.2% year-over-year.

• Q4 net income was $178.8 million, up from $29.2 million prior year; full-year net income was $225.0 million, reversing a net loss of $10.9 million in 2024.

• Adjusted EBITDA for Q4 was $85.0 million, up 54% year-over-year; full-year Adjusted EBITDA was $320.9 million, up 74.8% year-over-year.

• Growth driven by improved rates, higher volumes, and cost-saving initiatives, with all three operating divisions contributing.

• Announced acquisition of Family First Homecare, expected to close in Q2 2026, further densifying presence in Florida.

Financial highlights

• Q4 consolidated gross margin was $213.3 million (32.2%); full-year gross margin was $810.5 million (33.3%).

• Private Duty Services Q4 revenue: $541 million (+28.1%), with 12.4 million hours of care (+17.9%).

• Home Health & Hospice Q4 revenue: $69.3 million (+27.3%), with 10,400 admissions and 14,000 episodes (+25%).

• Medical Solutions Q4 revenue: $52.5 million (+21.3%), serving 92,000 unique patients; gross margin at 50% due to reserve release.

• Free cash flow for the year was $131.0 million.

Outlook and guidance

• 2026 revenue guidance: $2.54–$2.56 billion; Adjusted EBITDA: $318–$322 million, excluding Family First acquisition.

• Organic revenue growth expected in the 5–7% range; EBITDA growth in high single digits.

• Preferred payer agreements in PDS targeted to reach 38 by end of 2026; home health preferred payer agreements to exceed 50.

• Medical Solutions expected to return to double-digit growth by late 2026; gross margins to normalize at 43–45%.

• Pending Family First Homecare acquisition not included in 2026 guidance.