Addus Homecare (A41) Q3 2026 Earnings Report

The call was broadly positive, supported by 7% revenue growth, 17.3% adjusted EPS growth, 13.5% adjusted EBITDA growth, strong cash generation, lower leverage, improving home health performance, hospice growth, and the planned AccentCare acquisition. The main challenges were a 0.4% personal care census decline, personal care hours growth below target, higher DSOs, pending regulatory approvals, and expected 2027 margin and personal care growth moderation. Highlights significantly outweighed the lowlights.

Management expects fourth-quarter census growth to be flat to slightly positive, a gross-margin benefit of approximately 50 to 60 basis points, full-year adjusted EBITDA margin percentage to be in the 13% range, and the full-year tax rate to remain toward the upper 20% range; the AccentCare transaction is anticipated to close in the first quarter of 2027, with an expected benefit to hospice of just under 2% from the fiscal 2027 reimbursement update. For 2027, management is targeting low percentage PCS same store growth in census, 2%-2.5% same store hours growth range, and a fill rate into the upper 80% range, with PCS same-store growth likely in the 3%-5% range, hospice growth in the upper single-digit range, and home health momentum continuing; it expects the AccentCare integration to produce ratable synergies over 12-plus months and its EBITDA margin to move from a high single-digit percentage EBITDA range to a low double-digit range.