Open the filing on EDGARADDUS HOMECARE ANNOUNCES FIRST QUARTER
2026 FINANCIAL RESULTS
Acquires Personal Care Operations in State of Indiana with Plans for Further Expansion
Frisco, Texas (May 4, 2026) - Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services, today announced its financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Highlights:
- Net Service Revenues Increase 7.7% to $363.6 Million
- Net Income of $25.1 Million, or $1.36 per Diluted Share
- Adjusted Net Income per Diluted Share Increases 14.1% year-over-year to $1.62
- Adjusted EBITDA Increases 9.7% year-over-year to $44.5 Million
- Cash Flow from Operations increased to $52.4 Million
- Announced Acquisition in State of Indiana and Agreement for Additional Indiana Acquisition
Overview
Net service revenues were $363.6 million for the first quarter of 2026, a 7.7% increase compared with $337.7 million for the first quarter of 2025. Net income was $25.1 million for the first quarter of 2026 compared with $21.2 million for the first quarter of 2025, while net income per diluted share was $1.36 compared with $1.16 for the same period a year ago. Adjusted EBITDA increased 9.7% to $44.5 million for the first quarter of 2026 from $40.6 million for the first quarter of 2025. Adjusted net income was $30.0 million for the first quarter of 2026 compared with $26.0 million for the prior-year period, while adjusted net income per diluted share was $1.62 compared with $1.42 for the first quarter of 2025. Adjusted net income per diluted share for the first quarter of 2026 excludes acquisition expenses of $0.06 and stock-based compensation expense of $0.20. (See the end of press release for a reconciliation of all non-GAAP and GAAP financial measures.)
Commenting on the results, Dirk Allison, Chairman and Chief Executive Officer, said, “Addus had a solid start to 2026, delivering an improved year-over-year financial and operating performance with revenue up 7.7% and adjusted EBITDA up 9.7% over the first quarter last year. These results reflect continued demand for our home-based care services across the continuum. Addus is well positioned to meet this demand as we continue to expand our market reach and add density in the states where we operate. Our hiring trends have been stable and consistent in the first quarter despite some brief winter weather interruptions in January. We are proud of the dedicated caregivers who represent Addus and continue to provide outstanding care and support to the patients and families who rely on us for quality care in their preferred home setting.
“Our personal care business, which accounted for 77.3% of our revenues, was the primary driver of our growth with a 6.5% organic revenue increase over the first quarter last year. We benefitted from higher volumes as well as additional rate support from two key states, including a 9.9% increase in Texas that was effective September 1, 2025, and a 3.9% increase from the State of Illinois that was effective beginning January 1, 2026. We are pleased that our strong value proposition as a cost-effective provider is being recognized by the states where we serve clients.
“Our hospice care business has performed well and accounted for 18.1% of our revenue for the first quarter. We have seen consistent trends in our hospice segment, resulting in 7.7% organic revenue growth over the first quarter of last year and year-over-year improvement in average daily census. Our home health business represented 4.6% of revenue for the first quarter. We believe home health provides important complementary capabilities and clinical collaboration for our personal care and hospice care segments as we see more patients in select markets receive the benefit of the full continuum of care,” said Allison.
Indiana Acquisition Supports Market Expansion
The Company also announced it acquired the personal care operations of HomeCourt Home Care (“HomeCourt”) on May 1, 2026. Based in Fort Wayne, Indiana, HomeCourt serves approximately 240 clients and has annualized revenues of approximately $9.7 million. The Company also entered into a definitive agreement to acquire additional Indiana operations of a similar size to further expand geographic reach in the state, which is expected to close later this year.
Allison added, “We are excited to announce this acquisition, which marks our entry into Indiana, a new market for Addus and our plans to further grow in the state. Acquisitions remain an integral part of our growth strategy, and we are pleased to welcome HomeCourt Home Care to our personal care operations. This transaction and our planned additional transaction are aligned with our strategy of expanding our personal care footprint in select markets and creating density in markets where we operate. We expect the HomeCourt transaction to be immediately accretive to our financial results. We look forward to further expanding our coverage and capabilities in Indiana.”
Cash and Liquidity
As of March 31, 2026, the Company had cash of $103.1 million and bank debt of $94.3 million, with capacity and availability under its revolving credit facility of $650.0 million and $547.8 million, respectively. Net cash provided by operating activities was $52.4 million for the first quarter of 2026.
Allison added, “For the first quarter of 2026, we continued to generate consistent cash flow from operations and maintain a strong balance sheet. Our conservative leverage position allows us flexibility to make strategic investments in our business and to evaluate and pursue additional acquisition opportunities like those announced today. We have a strong development team with a proven track record, and we will continue our disciplined approach focused on both non-clinical and clinical acquisition opportunities where we can increase both density and geographic coverage. We see important synergies in offering the full care continuum as we build scale and expand our market coverage, and we are optimistic that we will see additional acquisition opportunities in 2026.
Looking Ahead
“We are pleased with the favorable trends in our business and believe we have significant opportunities in 2026 for continued organic growth and for deriving additional value from acquired operations. Addus plays an important role in our nation’s health care delivery system as a leading provider of quality, cost-effective care in the preferred home setting. We have a dedicated team of caregivers who work tirelessly every day to provide outstanding care across our markets. We look forward to the opportunities ahead for Addus in 2026 to deliver value to the clients we serve and our shareholders,” added Allison.
Non-GAAP Financial Measures
The information provided in this release includes adjusted net income, adjusted EBITDA, adjusted net income per diluted share and adjusted net service revenue, which are non-GAAP financial measures. The Company defines adjusted net income as net income before acquisition expense, stock-based compensation expense, restructuring and other non-recurring costs, and the gain or loss on the sale of assets. The Company defines adjusted EBITDA as earnings before net interest expense, taxes, depreciation, amortization, acquisition expense, stock-based compensation expense, restructuring and other non-recurring costs, and the gain or loss on the sale of assets. The Company defines adjusted net income per diluted share as net income per share, adjusted for acquisition expense, stock-based compensation expense, restructuring and other non-recurring costs, and gain or loss on the sale of assets. The Company defines adjusted net service revenues as revenue adjusted for the closure of certain sites. The Company has provided, in the financial statement tables included in this press release, a reconciliation of adjusted net income to net income, a reconciliation of adjusted EBITDA to net income, a reconciliation of adjusted diluted net income per share to net income per share, and a reconciliation of adjusted net service revenues to net service revenues, in each case, the most directly comparable GAAP measure. Management believes that adjusted net income, adjusted EBITDA, adjusted diluted net income per share, and adjusted net service revenues are useful to investors, management and others in evaluating the Company’s operating performance, to provide investors with insight and consistency in the Company’s financial reporting and to present a basis for comparison of the Company’s business operations among periods, and to facilitate comparison with the results of the Company’s peers.
Conference Call
Addus HomeCare will host a conference call on Tuesday, May 5, 2026, at 9:00 a.m. Eastern Time. Joining the call from the Company will be Dirk Allison, Chairman and CEO, Brian Poff, Executive Vice President and CFO, and Heather Dixon, President and COO. To access the live call, dial (833) 629-0620 (international dial-in number is (412) 317-1805) and ask to join the Addus HomeCare earnings call. A telephonic replay of the conference call will be available through midnight on May 12, 2026, by dialing (855) 669-9658 (international dial-in number is (412) 317-0088) and entering pass code 7882999.
A live broadcast of Addus HomeCare’s conference call will be available under the Investor Relations section of the Company’s website: www.addus.com. An online replay will also be available on the Company’s website for one month, beginning approximately two hours following the conclusion of the live broadcast.
Forward-Looking Statements
Forward-looking statements notice
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by words such as “preliminary,” “continue,” “expect,” and similar expressions. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. Forward-looking statements involve a number of risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements, including discretionary determinations by government officials, the consummation and integration of acquisitions, transition to managed care providers, our ability to successfully execute our growth strategy, unexpected increases in SG&A and other expenses, expected benefits and unexpected costs of acquisitions and dispositions, management plans related to dispositions, the possibility that expected benefits may not materialize as expected, the failure of the business to perform as expected, changes in reimbursement, changes in government regulations, changes in Addus HomeCare’s relationships with referral sources, increased competition for Addus HomeCare’s services, changes in the interpretation of government regulations, the uncertainty regarding the outcome of discussions with managed care organizations, changes in tax rates, the impact of adverse weather, higher than anticipated costs, lower than anticipated cost savings, estimation inaccuracies in future revenues, margins, earnings and growth, whether any anticipated receipt of payments will materialize, any security breaches, cyber-attacks, loss of data or cybersecurity threats or incidents, and other risks set forth in the Risk Factors section in Addus HomeCare’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 24, 2026, which is available at www.sec.gov. The financial information described herein and the periods to which they relate are preliminary estimates that are subject to change and finalization. There is no assurance that the final amounts and adjustments will not differ materially from the amounts described above, or that additional adjustments will not be identified, the impact of which may be material. Addus HomeCare undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, these forward-looking statements necessarily depend upon assumptions, estimates and dates that may be incorrect or imprecise and involve known and unknown risks, uncertainties, and other factors. Accordingly, any forward-looking statements included in this press release do not purport to be predictions of future events or circumstances and may not be realized. (Unaudited tables and notes follow).
About Addus HomeCare
Addus HomeCare is a provider of home care services that primarily include personal care services that assist with activities of daily living, as well as hospice and home health services. Addus HomeCare’s consumers are primarily persons who, without these services, are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. Addus HomeCare’s payor clients include federal, state, and local governmental agencies, managed care organizations, commercial insurers, and private individuals. Addus HomeCare currently provides home care services to approximately 62,750 patients and consumers through 263 locations across 24 states. For more information, please visit www.addus.com.
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(amounts and shares in thousands, except per share data)
(Unaudited)
| Income Statement Information: | For the Three Months Ended March 31, |
| 2026 | 2025 |
| Net service revenues | $363,611 | $337,708 |
| Cost of service revenues | 247,738 | 230,031 |
| Gross profit | 115,873 | 107,677 |
| 31.9% | 31.9% |
| General and administrative expenses | 77,771 | 73,220 |
| Depreciation and amortization | 4,030 | 3,943 |
| Total operating expenses | 81,801 | 77,163 |
| Operating income from continuing operations | 34,072 | 30,514 |
| Total interest expense, net | 1,641 | 3,516 |
| Income before income taxes | 32,431 | 26,998 |
| Income tax expense | 7,362 | 5,770 |
| Net income | $25,069 | $21,228 |
| Net income per diluted share: | $1.36 | $1.16 |
| Weighted average number of common shares outstanding: | | |
| Diluted | 18,486 | 18,311 |
| Cash Flow Information: | For the Three Months Ended March 31, |
| 2026 | 2025 |
| Net cash provided by operating activities | $52,365 | $18,949 |
| Net cash used in investing activities | (1,692) | (1,378) |
| Net cash used in financing activities | (29,225) | (19,528) |
| Net change in cash | 21,448 | (1,957) |
| Cash at the beginning of the period | 81,617 | 98,911 |
| Cash at the end of the period | $103,065 | $96,954 |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
| March 31, |
|---|
| 2026 | 2025 |
|---|
| Assets | | |
| Current assets | | |
| Cash | $103,065 | $96,954 |
| Accounts receivable, net | 144,823 | 134,607 |
| Prepaid expenses and other current assets | 24,988 | 26,267 |
| Total current assets | 272,876 | 257,828 |
| Property and equipment, net | 24,657 | 24,701 |
| Other assets | | |
| Goodwill | 996,680 | 972,347 |
| Intangible assets, net | 100,488 | 107,644 |
| Operating lease assets | 40,999 | 45,064 |
| Total other assets | 1,138,167 | 1,125,055 |
| Total assets | $1,435,700 | $1,407,584 |
| Liabilities and stockholders' equity | | |
| Current liabilities | | |
| Accounts payable | $14,040 | $27,969 |
| Accrued payroll | 63,926 | 54,858 |
| Accrued expenses | 30,348 | 29,748 |
| Operating lease liabilities, current portion | 13,139 | 12,649 |
| Government stimulus advance | 14,637 | 8,702 |
| Accrued workers compensation | 13,385 | 14,010 |
| Total current liabilities | 149,475 | 147,936 |
| Long-term debt, less current portion, net of debt issuance costs | 91,274 | 198,740 |
| Long-term operating lease liabilities, less current portion | 34,331 | 39,414 |
| Deferred tax liabilities, net | 44,205 | 25,986 |
| Other long-term liabilities | 255 | 125 |
| Total long-term liabilities | 170,065 | 264,265 |
| Total liabilities | 319,540 | 412,201 |
| Total stockholders' equity | 1,116,160 | 995,383 |
| Total liabilities and stockholders' equity | $1,435,700 | $1,407,584 |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Net Service Revenue by Segment
(Amounts in thousands)
(Unaudited)
| For the Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| Net Service Revenues by Segment | | |
| Personal Care | $281,094 | $258,286 |
| Hospice | 65,785 | 61,437 |
| Home Health | 16,732 | 17,985 |
| Total Revenue | $363,611 | $337,708 |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Key Statistical and Financial Data (Unaudited)
| For the Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| Personal Care | | |
| States served at period end | 23 | 23 |
| Locations served at period end | 200 | 199 |
| Average billable census - same store (1) | 49,287 | 50,340 |
| Average billable census - acquistions | 996 | 81 |
| Average billable census - closed (2) | - | 57 |
| Average billable census total | 50,283 | 50,478 |
| Billable hours (in thousands) | 10,733 | 10,201 |
| Average billable hours per census per month | 71.1 | 67.4 |
| Billable hours per business day | 167,699 | 159,395 |
| Revenues per billable hour | $26.16 | $25.32 |
| Organic growth | | |
| - Revenue | 6.5% | 7.4% |
| Hospice | | |
| Locations served at period end | 40 | 38 |
| Admissions | 3,417 | 3,474 |
| Average daily census (3) | 3,804 | 3,515 |
| Average discharge length of stay | 110.6 | 97.4 |
| Patient days | 342,359 | 316,319 |
| Revenue per patient day | $191.42 | $194.23 |
| Organic growth | | |
| - Revenue | 7.7% | 9.9% |
| - Average daily census | 8.1% | 4.6% |
| Home Health | | |
| Locations served at period end | 22 | 23 |
| New Admissions | 4,694 | 4,708 |
| Recertifications | 2,523 | 2,982 |
| Total Volume | 7,217 | 7,690 |
| Visits | 80,892 | 94,593 |
| Organic growth | | |
| - Revenue | (6.6)% | 1.3% |
| - New Admissions | (0.3)% | (3.7)% |
| - Volume | (6.2)% | (4.6)% |
| Percentage of Revenues by Payor: | | |
| Personal Care | | |
| State, local and other governmental programs | 49.7% | 51.5% |
| Managed care organizations | 47.6 | 45.3 |
| Private duty | 2.2 | 2.7 |
| Commercial | 0.4 | 0.4 |
| Other | 0.1% | 0.1% |
| Hospice | | |
| Medicare | 94.4% | 92.4% |
| Commercial | 2.8 | 3.9 |
| Managed care organizations | 2.3 | 3.3 |
| Other | 0.5% | 0.4% |
| Home Health | | |
| Medicare | 61.1% | 69.9% |
| Managed care organizations | 23.7 | 21.2 |
| State, local and other governmental programs | 12.2 | 6.0 |
| Commercial | 2.5 | 2.5 |
| Other | 0.5% | 0.4% |
(1) The average billable census in acquisitions of 14,449 for the three months ended March 31, 2025, was reclassified to average billable census - same stores for comparability purposes.
(2) The average billable census for closed stores of 57 for the three months ended March 31, 2025 was reclassified to average billable census - closed stores for comparability purposes.
(3) Exited sites would have reduced ADC for the three months ended March 31, 2026 and March 31, 2025 by 2 and 6, respectively.
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Amounts in thousands, except per share data)
(Unaudited) (1)
| For the Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| Reconciliation of Adjusted EBITDA to Net Income: (1) | | |
| Net income | $25,069 | $21,228 |
| Interest expense, net | 1,641 | 3,516 |
| Gain on the sale of assets | (16) | (7) |
| Income tax expense | 7,362 | 5,770 |
| Depreciation and amortization | 4,030 | 3,943 |
| Acquisition expenses | 1,324 | 2,952 |
| Stock-based compensation expense | 5,000 | 3,170 |
| Restructure and other non-recurring costs | 104 | - |
| Adjusted EBITDA | $44,514 | $40,572 |
| Reconciliation of Adjusted Net Income to Net Income: (2) | | |
| Net income | $25,069 | $21,228 |
| Gain on the sale of assets | (16) | (7) |
| Acquisition expenses | 1,324 | 2,952 |
| Stock-based compensation expense | 5,000 | 3,170 |
| Restructure and other non-recurring costs | 104 | - |
| Tax effect | (1,456) | (1,306) |
| Adjusted Net Income | 30,025 | 26,037 |
| Reconciliation of Diluted Earnings per Share to Adjusted Diluted Earnings per Share: (3) |
| Diluted earnings per share | $1.36 | $1.16 |
| Acquisition expenses, per diluted share | 0.06 | 0.13 |
| Stock-based compensation expense per diluted share | 0.20 | 0.13 |
| Adjusted net income per diluted share | $1.62 | $1.42 |
| Reconciliation of Net Service Revenues to Adjusted Net Service Revenues: (4) |
| Net service revenues | $363,611 | $337,708 |
| Revenue associated with the closure of certain sites | (109) | (1,066) |
| Adjusted net service revenues | $363,502 | $336,642 |
Footnotes:
(1) We define Adjusted EBITDA as earnings before net interest expense, other non-operating income, taxes, depreciation, amortization, acquisition expense, stock-based compensation expense, restructure and other non-recurring costs and gain or loss on the sale of assets. Adjusted EBITDA is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in the United States (GAAP). It should not be considered in isolation or as a substitute for net income, operating income or any other measure of financial performance calculated in accordance with GAAP. Additionally, our calculation of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. We believe that Adjusted EBITDA is useful to investors, management and others in evaluating the Company's operating performance, to provide investors with insight and consistency in the Company's financial reporting and to present a basis for comparison of the Company's business among periods, and to facilitate comparison with results of the Company's peers. Additionally, we believe that Adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate the financial performance of other public companies. The financial results presented in accordance with U.S GAAP and a reconciliation of this non-GAAP measure included within our Annual Report on Form 10-K should be carefully evaluated.
(2) We define Adjusted Net Income as net income before acquisition expenses, stock-based compensation expense, restructure and other non-recurring costs, and gain on the sale of assets. Adjusted Net Income is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in the United States (GAAP). It should not be considered in isolation or as a substitute for net income, operating income or any other measure of financial performance calculated in accordance with GAAP.
(3) We define Adjusted diluted earnings per share as earnings per share, adjusted for acquisition expenses, stock-based compensation expense and restructure and other non-recurring costs, and gain on the sale of assets. Adjusted diluted earnings per share is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in the United States (GAAP). It should not be considered in isolation or as a substitute for net income, operating income or any other measure of financial performance calculated in accordance with GAAP.
(4) We define Adjusted net service revenues as revenue adjusted for the closure of certain sites. Adjusted net service revenues is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in the United States (GAAP). It should not be considered in isolation or as a substitute for net income, operating income or any other measure of financial performance calculated in accordance with GAAP.
Contacts
Brian W. Poff · Executive Vice President, Chief Financial Officer · Addus HomeCare Corporation · (469) 535-8200 · investorrelations@addus.com
Dru Anderson · FINN Partners · (615) 324-7346 · dru.anderson@finnpartners.com