EHAB earnings analysis
What we found in EHAB's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Enhabit, Inc. reported a net service revenue of $264.8 million in Q1 2026, reflecting a 1.9% increase from $259.9 million in Q1 2025. The company achieved a net income attributable to Enhabit, Inc. of $19.2 million, up 7.9% year-over-year. Despite revenue growth, the company faced margin pressures with operating income improving significantly by 84.3% year-over-year, but still indicates ongoing operational challenges, reflected in the fluctuations in EPS across quarters.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth
- Net service revenue increased 1.9% to $264.8 million compared to $259.9 million in Q1 2025.
- Increased Net Income
- Net income attributable to Enhabit rose 7.9% to $19.2 million from $17.8 million a year ago.
- Improved Operating Income
- Operating income surged 84.3% to $29.3 million from $15.9 million in Q1 2025.
- Decreased General Expenses
- General and administrative expenses fell by 10.0% to $96.7 million, down from $107.5 million a year ago.
- Strong Free Cash Flow
- Achieved free cash flow of $35.2 million, significantly higher than $17.9 million in Q1 2025.
- Segment Growth in Hospice
- The Hospice segment grew by 6.2%, driving up net service revenue to $63 million from $59.3 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Regulatory Risks
- Changes in Medicare reimbursement rates continue to affect revenue; Medicare revenue fell 6.8% in the Home Health segment.
- Litigation Concerns
- Ongoing litigation risks remain regarding the merger which could impact operations.
- High Operating Costs
- Increased cost of services in the Hospice segment by 8.6% puts pressure on margins despite revenue growth.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $19.2
- Gross margin
- 49.2%
- Operating margin
- 11.1%
- Segment
- Home Health: $201.8M
- Segment
- Hospice: $63M
What they said about what is next.
Management anticipates EPS to be between $0.10 and $0.25 for the upcoming quarters.
The filing reads about the same as the one before it.
What came before.
- 10-K · April 30, 2026
- Enhabit, Inc. displays a strategic focus on clear operational goals and integration following its separation from Encompass Health Corporation. Financial performance over the last three years shows modest revenue growth…
- 10-K · March 5, 2026
- Enhabit reported FY2025 revenue of $1,060.0M (up 2.4% YoY) with a near‑break even GAAP result (net loss attributable to Enhabit, Inc. of $(4.6)M, or $(0.09) per share). Management delivered positive operating income of…
- 10-Q · August 7, 2025
- Enhabit reported Q2 net service revenue of $266.1 million, up 2.1% versus $260.6 million a year ago, driven by a 19.4% increase in Hospice revenue. Consolidated operating income improved to $16.7 million (up 49.1% YoY)…
- 10-K · March 6, 2025
- Enhabit positions itself as a leading U.S. home health and hospice provider with a footprint of 255 home health and 115 hospice locations across 34 states (as of December 31, 2024). For fiscal 2024 Net service revenue…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing EHAB makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever