Addus HomeCare Corp Q2 FY26 Results

We are extremely pleased with the strong financial and operational performance delivered in the second quarter of 2026. Revenues grew by 8.0%, driven by solid organic growth and disciplined execution across our service lines. Our focus on cost management, operational efficiency, and leverage reduction translated into an 11.9% improvement in adjusted EBITDA and a 25.2% increase in net income over the second quarter last year. These results reflect the continued demand for high-quality cost-effective home care services and our ability to drive profitable growth. Our personal care business experienced continued momentum with a 6.8% organic revenue increase over the second quarter last year and accounted for 78.4% of revenues. This improvement reflects higher volumes, as well as two months of operations from HomeCourt Home Care, which we acquired on May 1, 2026. We also continue to benefit from rate increases implemented in two key states, including a 9.9% increase in Texas late last year and a 3.9% increase in Illinois in January, with our strong value proposition as a cost-effective provider continuing to be recognized by our state partners. Our hospice care business contributed strong growth with organic revenue up 11.1% over the same period last year and accounted for 17.0% of our revenue for the second quarter. This consistent growth was driven by year-over-year improvements in average daily census and revenue per patient day. Our home health business represented 4.6% of revenue for the second quarter, and we are pleased to see more favorable admission and volume trends. We continue to believe home health provides important complementary capabilities to our personal care and hospice segments, allowing us to continue offering all three levels of care and ensuring more patients in select markets receive the benefit of the full continuum of care. Our strong performance in the first half of 2026 positions us well moving forward. We generated meaningful operating cash flow and maintained a very strong balance sheet. Our low leverage allows us to invest strategically and continue to pursue targeted acquisitions. We remain disciplined in evaluating both clinical and non-clinical opportunities to enhance market density and geographic reach. By delivering a full continuum of care as we scale, we anticipate acting on meaningful synergies and uncovering further growth opportunities throughout the remainder of 2026. We are pleased with the trends in our business through the first half of 2026, as we continue to extend our market reach and meet the growing demand for our home-based care services. We are proud of the important work we are doing, with a proven and scalable operating model that supports a vital need for quality, compassionate care for more patients and families in the preferred home setting. We look forward to the continued addition of size and scale via organic growth and pursuit of acquisition opportunities that can increase density and geographic coverage while strengthening relationships in key markets. Importantly, we have the financial flexibility to actively pursue this growth strategy. We have a dedicated team of caregivers who support our mission and continue to provide outstanding care across our markets. Together, we remain focused on delivering value to both the communities we serve and our shareholders, and we look forward to the opportunities ahead for Addus in the second half of 2026.