Enhabit (EHAB) Q3 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q3 2025, with net service revenue up 3.9% year-over-year to $263.6 million and Adjusted EBITDA up 10.2% to $27.0 million.

• Net income attributable to shareholders was $11.1 million, compared to a net loss of $110.2 million in Q3 2024, reflecting improved operating results and absence of prior year goodwill impairment.

• Home health admissions rose 3.6% year-over-year, with census up 3.7%; hospice average daily census increased 12.6% year-over-year.

• Hospice segment delivered record revenues and profitability, with revenue up 20% and Adjusted EBITDA up 72% year-over-year.

• Continued deleveraging with a 3.9x leverage ratio at Q3 2025, marking the seventh straight quarter of debt prepayments.

Financial highlights

• Consolidated net service revenue reached $263.6 million, up $10 million or 3.9% year-over-year.

• Adjusted EBITDA was $27.0 million, up $2.5 million or 10.2% year-over-year, with margin expanding to 10.2%.

• Hospice revenue grew 20% year-over-year to $63.1 million; Adjusted EBITDA rose 72% to $17.2 million, with margin at 27.3%.

• Home health revenue was $200.5 million, nearly flat year-over-year, impacted by payer renegotiation and branch closures.

• Net income for Q3 2025 was $11.1 million, compared to a net loss of $110.2 million in Q3 2024.

Outlook and guidance

• Full-year 2025 revenue guidance updated to $1.058–$1.063 billion; Adjusted EBITDA guidance raised to $106–$109 million.

• Full-year Adjusted EPS guidance increased to $0.50–$0.56.

• Full-year adjusted free cash flow guidance increased to $53–$61 million.

• CMS finalized a 2.6% net increase in hospice payments effective October 1, 2025; home health faces a proposed 6.4% decrease for 2026.

• Strategies in place to mitigate potential 2026 CMS Home Health Rule headwinds; more details to come with 2025 full-year results.