Revenue Growth
Total revenue of $363.6M for Q1 2026, up 7.7% vs. $337.7M in Q1 2025.
Addus Homecare
· ADUS
May 4th, 2026
Summary
- Earnings Call Date:
- 2026-05-04
- Change Since:
- -3.26%
- Next Earnings Date:
- 2026-08-03
Earnings Call Sentiment
PositiveThe call presented a broadly positive operational and financial picture: solid top-line growth (+7.7% revenue), meaningful EPS and adjusted EBITDA improvements, strong operating cash flow ($52.4M) and a strengthened balance sheet with reduced bank debt and sizable revolver availability. Personal Care and Hospice were key growth drivers (Personal Care same-store +6.5%; Hospice ADC +8.2%). Management also highlighted progress on productivity (caregiver app), hiring, and targeted M&A (entry into Indiana). Challenges noted include a weather-driven $1.5M revenue hit, elevated DSOs (timing-driven), a YoY decline in home health revenue, and a reversion in hospice revenue-per-day dynamics. Overall, positives (multiple strong metrics, cash flow and M&A runway, operating improvements) outweigh the contained challenges and one-time items.
Company Guidance
Management guided that full‑year 2026 adjusted EBITDA margin should remain above 12% and the company expects an effective tax rate in the mid‑20% range (Q1 rate was 22.7%); gross margin was 31.9% in Q1 and is expected to remain relatively stable while adjusted G&A ran 19.6% of revenue (G&A 21.4%). Q1 results that frame the outlook included revenue of $363.6M (+7.7% YoY), adjusted EBITDA $44.5M (+9.7%), adjusted EPS $1.62 (+14.1%), operating cash flow $52.4M, cash on hand $103.1M, revolver capacity $650M (availability $547.8M), and total bank debt $94.3M (down $30M QoQ, with $10M revolver paydown in Q2 to date). Segment metrics noted: Personal Care $281.1M (77.3% of rev, +8.8% overall, same‑store +6.5%, same‑store hours +2.2% with a 2.0–2.5% hours target), Hospice $65.8M (18.1%, same‑store +7.7%, ADC 3,804, median LOS 23 days), Home Health $16.7M (4.6%).
Adjusted EPS Improvement
Adjusted earnings per diluted share of $1.62 in Q1 2026, up 14.1% vs. $1.42 in Q1 2025.
Adjusted EBITDA and Margin Expansion
Adjusted EBITDA of $44.5M, up 9.7% vs. $40.6M in Q1 2025; adjusted EBITDA margin of 12.2% vs. 12.0% in Q1 2025, and company expects full-year margin above 12%.
Strong Operating Cash Flow and Balance Sheet
Net cash flow from operations of $52.4M in Q1 2026 vs. $18.9M a year ago; cash on hand $103.1M as of March 31, 2026; reduced total bank debt to $94.3M (down ~$30M vs. Q4 2025); revolving credit facility capacity $650M with $547.8M availability.
Personal Care Segment Performance
Personal Care revenues $281.1M (77.3% of revenue), up 8.8% overall and up 6.5% same-store vs. Q1 2025; same-store personal care hours increased 2.2% year-over-year; hires improved to 108 per day in Q1 (vs. 103/day in Q4 2025).
Hospice Growth and Census Strength
Hospice revenues $65.8M (18.1% of revenue) with same-store revenue growth of 7.7% vs. Q1 2025; average daily census (ADC) increased to 3,804 from 3,515 (+8.2% YoY); median length of stay 23 days (vs. 19 days in Q1 2025).
Operational Leverage and Cost Discipline
Gross margin stable at 31.9% YoY; G&A improved to 21.4% of revenue (adjusted G&A 19.6% vs. 19.9% a year ago), reflecting leverage from revenue growth and disciplined spending.
Technology and Productivity Initiatives
Caregiver app rolled out in Illinois, portions of New Mexico and Texas with early adoption (over 10% in Texas within days); expected benefits include improved service percentage, caregiver engagement and ability to pick up hours, supporting higher billable hours and utilization.
M&A Progress and Market Expansion
Closed acquisition of HomeCourt Home Care (Fort Wayne, IN) serving ~240 clients with ~$9.7M annual revenue; signed definitive agreement for an additional Indiana personal care acquisition; management sees larger acquisition opportunities and has capacity to pursue them given the strong balance sheet.
Operator
Good morning, and welcome to the Addus HomeCare's First Quarter 2026 Earnings Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Drew Anderson. Please go ahead.
Darby Anderson
Thank you. Good morning, and welcome to the Addus HomeCare Corporation First Quarter 2026 Earnings Conference Call. Today's call is being recorded. To the extent any non-GAAP financial measure is discussed in today's call, you will find a reconciliation of that measure to the most directly comparable financial measure calculated according to GAAP by going to the company's website and reviewing yesterday's news release. This conference call may also contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements, among others, regarding Addus' expected quarterly and annual financial performance for 2026 or beyond. For this purpose, any statements made during this call that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, discussions of forecasts, estimates, targets, plans, beliefs, expectations and the like are intended to identify forward-looking statements. You are hereby cautioned that these statements may be affected by important factors, among others, set forth in Addus' filings with the Securities and Exchange Commission and in its first quarter 2026 news release.
Consequently, actual operations and results may differ materially from the results discussed in the forward-looking statements. The company undert...
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