| Metric | Value ($ M) | Q2 FY25 | Q3 FY24 |
|---|---|---|---|
| Revenue | 464.34 | 1.3% | 8.4% |
| Total Income | 464.34 | 1.3% | 8.4% |
| Expenditure | 407.03 | 18.7% | 0.6% |
| PBT | 57.31 | 236.8% | 204.7% |
| Net Profit | 42.95 | 232.7% | 206.1% |
| OPM | — | ||
| NPM | 9.25% | 16.31pp | 5.97pp |
| EPS | 0.59 | 234.1% | 210.5% |
HCSG Reports Q3 2025 Revenue of $464.3 Million, Up 8.5% Y-o-Y
04 May 2026 · 4 May, 8:56 am
Summary
Healthcare Services Group, Inc. reported strong third quarter results with revenue of $464.3 million, an 8.5% increase over the prior year. Net income was $43.0 million, and diluted EPS was $0.59, including benefits from the Employee Retention Credit. Cash flow from operations was reported at $71.3 million. The company also repurchased $27.3 million of its common stock during the quarter.
Key Highlights
- 1
Healthcare Services Group reported revenue of $464.3 million, an 8.5% increase over the prior year.
- 2
Net income for the quarter was $43.0 million, with diluted EPS of $0.59, including a $0.361 benefit primarily related to the Employee Retention Credit (ERC).
- 3
Cash flow from operations reached $71.3 million, or $87.1 million excluding the change in payroll accrual, which includes a $31.8 million benefit related to the ERC.
- 4
The company repurchased $27.3 million of its common stock under the previously announced $50.0 million, 12-month share repurchase plan.
- 5
Segment revenues for Environmental and Dietary Services were reported at $211.8 million and $252.5 million, respectively.
- 6
Segment margins for Environmental and Dietary Services were reported at 10.7% and 5.1%, respectively.
Management Comments
Ted Wahl
“We delivered strong third quarter results - marked by year-over-year and sequential increases in revenue, earnings, and cash flow - and we have carried that positive momentum into the fourth quarter. New client wins and high retention rates drove our topline growth, and our field-based teams' operational excellence led to quality service outcomes and consistent margins. Cash collection trends remain positive and our balance sheet is strong. We are confident that continuing to execute on our strategic priorities, supported by our robust business fundamentals, will enable us to drive growth, while delivering sustainable, profitable results.”
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