10-Q · May 5, 2026
Addus HomeCare Corporation reported solid Q1 2026 results with revenue of $363.6 million and EPS of $1.62, marking an 18.1% and 4.128% increase from the prior year respectively. While operating income rose 11.7%, the…
Earnings analysis · 10-Q
ADUS earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Addus delivered an 8.0% year-over-year increase in Q2 revenue to $377.417 million and expanded operating margin to 10.3% from 9.4%, with diluted EPS of $1.73. Personal care was the principal growth engine, while hospice…
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Addus delivered an 8.0% year-over-year increase in Q2 revenue to $377.417 million and expanded operating margin to 10.3% from 9.4%, with diluted EPS of $1.73. Personal care was the principal growth engine, while hospice margin compression and a 4.8% home-health revenue decline temper the result. Liquidity improved materially, with cash at $99.6 million and revolver debt reduced to $64.3 million, but the filing provided no quantitative outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.73
What stood out
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Revenue and EPS accelerated
Q2 net service revenue rose 8.0% year over year to $377.417 million from $349.443 million, and increased 3.7% sequentially from $364 million in Q1 2026. Diluted EPS was $1.73, up from $1.36 in Q1 2026 and $1.20 in Q2 2025.
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Operating leverage lifted margins
Operating income increased 18.4% to $38.942 million, expanding operating margin 90 basis points year over year to 10.3% from 9.4%. Gross margin was 32.2%, down 40 basis points year over year but up 30 basis points sequentially from 31.9%.
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Personal care drove growth
Personal care revenue grew 10.0% to $295.995 million and segment operating income rose 16.9% to $60.380 million. Billable hours increased 5.6% and revenue per billable hour increased 4.2% to $26.55.
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Cash conversion and collections improved
Operating cash flow for the first six months increased to $92.376 million from $41.478 million a year earlier. The improvement reflected accounts-receivable collection timing and payroll/accounts-payable timing; DSO improved to 36 days from 38 days at year-end.
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Liquidity strengthened and debt declined
Cash increased to $99.6 million at June 30 from $81.6 million at December 31, while revolving borrowings fell to $64.3 million from $124.3 million after $60.0 million of repayments. Available revolver capacity was $577.8 million.
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Acquisition funded with low capex intensity
The May 1 HomeCourt acquisition cost approximately $12.2 million and expanded personal care into Indiana. First-half capital expenditures were only $3.1 million, or about 0.4% of $741.028 million in first-half revenue.
What to watch
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Home health volumes and profit declined
Home health revenue declined 4.8% to $17.175 million, with visits down 6.5% to 88,516; segment operating income fell 25.0% to $3.287 million. Management attributed the revenue decline primarily to lower patient visits.
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Hospice wage pressure compressed margin
Hospice revenue grew 3.3% to $64.247 million, but its gross margin fell to 44.0% from 47.9% and operating income declined 18.3% to $12.105 million, primarily due to higher direct wages, taxes, and benefits as a share of revenue.
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Illinois reimbursement concentration persists
The filing states there were no material changes to previously disclosed risk factors, but reimbursement concentration remains substantial: Illinois represented 32.1% of total revenue and the Illinois Department on Aging represented 17.7%. Illinois' current waiver expires September 30, 2026 unless CMS approves renewal.
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Medicare policy and enrollment constraints
Medicare represented 93.4% of hospice revenue, while CMS estimates 2026 Medicare payments to home health agencies will decrease 1.3%. CMS also imposed a six-month nationwide moratorium in May 2026 on new Medicare enrollments for hospices and home health agencies.
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Labor costs may outpace reimbursement
Management cites a tight labor market and inflationary pressure; in Illinois, the direct-service-worker minimum wage is $18.75 per hour, while the Chicago minimum wage increased to $17.05 on July 1, 2026. The company cautioned that reimbursement increases beyond fiscal 2026 may not offset future wage increases.
Management's outlook
The 10-Q contains no quantitative revenue or EPS outlook. Management discussed reimbursement, labor, Medicaid, and regulatory conditions but did not update numeric guidance.
Earlier filings 4
10-K · February 24, 2026
Addus reported 2025 net service revenue of $1,422,530,000 versus $1,154,599,000 in 2024 (a $267,931,000 / +23.2% increase) and net income of $95,910,000 in 2025 versus $73,598,000 in 2024. Growth was driven by the…
10-Q · May 7, 2024
Addus reported revenue of $280.7M for the quarter ended March 31, 2024, up $29.1M (+11.6%) versus the prior-year quarter, with gross profit rising to $88.2M and operating income to $23.6M. Diluted EPS increased to $0.97…
10-Q · August 1, 2023
Addus reported quarterly net service revenue of $259,980,000 (up $23,040,000 or 9.7% vs. $236,940,000 a year ago) and operating income increased to $21,539,000 (from $16,894,000). Diluted EPS rose to $0.91 from $0.70 a…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.