EarningsQ2 2026 Earnings Report
DE:A41 Q2 2026 EPS Results
Actual EPS€1.54
Consensus EPS€1.52
Beat/MissBeat by +€0.03
One Year Ago EPS€1.33
DE:A41 Q2 2026 Revenue Results
Actual Revenue€336.85M
Expected Revenue€335.80M
Beat/MissBeat by +€1.05M
YoY Revenue Growth+8.01%
Earnings Announcement Details
QuarterQ2 2026
Date08/03/2026
TimeAfter Close
Conference CallMonday, August 3, 2026
DE:A41 Upcoming Earnings
Addus Homecare's next earnings date is estimated for November 2, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:A41 Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly positive, characterized by strong revenue, earnings, EBITDA, cash flow and debt-reduction performance; growth in Personal Care and hospice; improving home health trends; successful early performance from the Indiana acquisition; and an expanding acquisition pipeline. The main challenges were the Medicare Cap accrual, the year-over-year home health revenue decline, muted Texas census growth, slower New Mexico app adoption, the proposed home health temporary adjustment, a higher tax rate and the likelihood that cash flow benefits will moderate. Highlights significantly outweighed lowlights.Company Guidance
Strong Second-Quarter Financial Performance
Total revenue was $377.4 million, up 8% from $349.4 million in the second quarter of 2025. Adjusted earnings per share increased 16.1% to $1.73 from $1.49, and adjusted EBITDA rose 11.9% to $49.2 million from $43.9 million.
Robust Cash Flow and Debt Reduction
Cash flow from operations was $40 million compared with $22.5 million in the prior-year quarter. Cash was $99.6 million as of June 30, 2026, while total bank debt declined by $30 million from the first quarter to $64.3 million. The company also paid down $10 million on its revolver in the third quarter to date.
Strong Balance Sheet and Acquisition Capacity
The company reported $650 million of capacity and $577.8 million of availability under its revolving credit facility. Management said its low leverage profile and disciplined balance sheet provide flexibility to pursue targeted clinical and nonclinical acquisitions.
Indiana Personal Care Expansion
Addus closed the acquisition of HomeCourt Home Care in Fort Wayne, Indiana, on May 1, marking its entry into Indiana. The acquisition includes two months of second-quarter operations and has gotten off to a very good start, with volume slightly exceeding expectations. Addus also has a definitive agreement to acquire certain operating assets of a similarly sized provider in the Indianapolis area, subject to customary closing conditions, including regulatory review and approval.
Personal Care Organic Revenue Growth
Personal Care revenue was $296 million, representing 78.4% of total revenue, with same-store revenue growth of 6.8% year over year. Same-store hours increased 2.2%, within the company's target range of 2% to 2.5%.
Improving Personal Care Hiring and Fill Rates
Personal Care hiring averaged 104 hires per business day in the second quarter, approximately matching the second quarter of 2025. The consolidated fill rate increased to between 84% and 85%, up from the lower 80% range. Texas improved to the mid, sliding toward the upper 80% range, while Illinois had more than 90% of caregivers using the app.
Caregiver App and Retention Progress
Management said the caregiver app rollout in Texas gained traction faster than expected and contributed to improved fill rates. New Mexico has shown some progress, although its rollout has been slower because of the state's EVV app. Management also said turnover is down slightly.
Personal Care Census Momentum in Illinois and New Mexico
Same-store Personal Care census increased 1.2% sequentially, with growth in the majority of markets. Illinois began adding year-over-year average daily census after several challenging quarters, and management said Illinois and New Mexico were showing nice momentum quarter to date.
Positive Hospice Growth
Hospice revenue was $64.2 million, representing 17% of second-quarter revenue, and same-store revenue increased 11.1% year over year. Same-store average daily census rose 6.5% to 3,964 from 3,720, and July average daily census exceeded 4,000. Median length of stay increased to 24 days from 23 days in the fourth quarter of 2025 and 22 days in the second quarter of 2025.
Home Health Trends Improved
Although home health same-store revenue decreased 2.8% year over year, this improved from the 6.6% decrease in the first quarter of 2026. The company also reported sequential improvement in revenue, operating income and admissions, while same-store new admissions increased 9.8% during the quarter.
Home Health Leadership and Bridge Program Progress
New home health leadership has begun making changes that management said were reflected in improved growth. The bridge program is showing progress in Tennessee, has been successful in New Mexico and is being expanded into Illinois. The personal care business is being converted to Homecare Homebase, with completion scheduled by the end of the first quarter of 2027, which management said will make an integrated Personal Care-to-home health-to-hospice bridge program easier to operate.
Margin Expansion and Cost Discipline
Adjusted EBITDA margin increased to 13% from 12.6% in the second quarter of 2025. G&A expense declined to 20.8% of revenue from 22.1%, while adjusted G&A expense decreased to 19.2% from 20%. Gross margin was 32.2%, down from 32.6% year over year but up 30 basis points sequentially. Management expects full-year adjusted EBITDA margin to remain between 12% and 13%, toward the higher end of that range.
Favorable State-Level Rate Support
Personal Care benefited from a 9.9% reimbursement rate enhancement in Texas enacted late last year and a 3.9% increase in Illinois effective January 1, 2026. Oregon and Michigan also provided rate increases in their latest budget cycles, while states that had finalized budgets generally maintained Addus' rates.
Positive CMS Home Health Payment Proposal
CMS proposed increasing 2027 home health payments by 2.4%, or $420 million, reflecting a 2.1% statutory payment update and a 0.3% increase related to the proposed fixed dollar loss ratio update. The proposed net payment rate increase was 2.1%, compared with a 1.3% rate decrease last year.
Hospice Rate Increase for Fiscal 2027
CMS published a final fiscal 2027 hospice rate increase of 2.3%, effective October 1, 2026, compared with the proposed 2.4% increase.
Optimism Regarding Medicaid 80/20 Provision
Management said it continues to believe the 80/20 provision of the CMS Medicaid access rule could be eliminated by year-end. The company is working with CMS and described potential elimination as an encouraging development for the industry and the company, while noting that implementation is still several years away and currently has no impact on business or financial performance.
Potential Acquisition Pipeline and Strategic Scale
Management reported an increasing number of Personal Care opportunities and more potential activity in skilled home health following the proposed 2027 payment rule. The company said it remains open to small or large transactions, including scaled assets, while emphasizing due diligence and disciplined capital allocation.
Managed Care Relationships Strengthened
Management said Addus has become a more important provider to large managed care organizations, particularly following the Gentiva acquisition. Its breadth across states and geographic coverage has strengthened payer relationships and supports opportunities to enter new states where managed care partners want Addus to operate.
Expected Gentiva EMR Synergies
Addus is converting its legacy business to Homecare Homebase, with the process expected to extend into early 2027. Management expects the Gentiva business to transition from its current EMR into Homecare Homebase during 2027 and has indicated approximately $1 million of potential synergy from eliminating duplicate EMR costs.
Limited Impact From Medicaid Payment Withholding Activity
Management said it has not seen significant issues in its markets related to federal Medicaid payment withholding tied to fraud and abuse audits. California exposure is primarily VA or private pay, and Addus does not operate in Minnesota.
DE:A41 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed