On Feb. 23, Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services, announced its financial results for the fourth quarter and year ended Dec. 31, 2025.
Fourth Quarter 2025 Highlights:
- Net Service Revenues Increase 25.6% to $373.1 Million
- Net Income of $29.8 Million, or $1.61 per Diluted Share
- Adjusted Net Income per Diluted Share Increases 28.3% year-over-year to $1.77
- Adjusted EBITDA Increases 33.3% year-over-year to $50.3 Million
- Cash Flow from Operations of $18.8 Million
Overview
Net service revenues were $373.1 million for the fourth quarter of 2025, a 25.6% increase compared with $297.1 million for the fourth quarter of 2024. Net income was $29.8 million for the fourth quarter of 2025 compared with $19.5 million for the fourth quarter of 2024, while net income per diluted share was $1.61 compared with $1.07 for the same period a year ago. Adjusted EBITDA increased 33.3% to $50.3 million for the fourth quarter of 2025 from $37.8 million for the fourth quarter of 2024. Adjusted net income was $32.6 million for the fourth quarter of 2025 compared with $25.2 million for the prior-year period, while adjusted net income per diluted share was $1.77 compared with $1.38 for the fourth quarter of 2024. Adjusted net income per diluted share for the fourth quarter of 2025 excludes the impact of accounts receivable settlements related to divested New York operations of $(0.07), acquisition expenses of $0.05 and stock-based compensation expense of $0.18. (See the end of press release for a reconciliation of all non-GAAP and GAAP financial measures.)
For the full year 2025, net service revenues increased 23.2% to $1.42 billion from $1.15 billion for the prior-year period. Net income was $95.9 million for 2025 compared with $73.6 million for 2024, and net income per diluted share was $5.22 compared with $4.23 per diluted share. Adjusted EBITDA increased 28.3% to $180.0 million for 2025 from $140.3 million for 2024. Adjusted net income was $114.7 million for 2025 compared with $91.4 million for 2024, while adjusted net income per diluted share was $6.23 compared with $5.26 for the prior-year period.
Commenting on the results, Dirk Allison, Chairman and Chief Executive Officer, said, “Our fourth quarter results marked a strong finish to a successful year of growth and progress for Addus. Net service revenues increased 25.6% and adjusted EBITDA was up 33.3% over the fourth quarter of 2024. For the full year, we achieved a new annual record of $1.4 billion in net service revenues, an increase of 23.2% compared with 2024. Continued strong demand has supported this impressive growth as an increasing number of consumers and payers benefit from the value and cost efficiency offered by our home-based care services. With solid execution, our team has done an outstanding job meeting this demand with the ability to leverage our scale and proven operating model across the care continuum. We have also benefitted from continued favorable and stable hiring trends, which support our business, especially in our personal care segment. We are fortunate to have a team of capable and dedicated caregivers who provide outstanding care as we respond to the needs of a growing number of patients and families across the markets we serve.
“We are pleased with the funding support from many of the states where we operate, including a recent 9.9% rate increase in Texas that was effective September 1, 2025. With the addition of Gentiva’s personal care operations in December 2024, and more recently Del Cielo, Texas is now our second largest personal care market, so this increase will have a significant positive impact on our business going forward. In addition, the State of Illinois, our largest personal care market, announced an increase of 3.9% beginning January 1, 2026.
“We are pleased with the positive trends in our hospice care business, which accounted for 18.8% of our revenue in the fourth quarter. The operational improvements we have made over the past year resulted in a solid 16.0% organic revenue growth supported by year-over-year increases in admissions, average daily census, and revenue per patient day. Our home health services accounted for 4.6% of fourth quarter revenue. While this represents our smallest business segment, we continue to believe our home health operations provide an important clinical partner to our personal care and hospice care segments, allowing us to further our goal of providing all three levels of care in select markets,” said Allison.
Cash and Liquidity
As of December 31, 2025, the Company had cash of $81.6 million and bank debt of $124.3 million, with capacity and availability under its revolving credit facility of $650.0 million and $517.7 million, respectively. Net cash provided by operating activities was $18.8 million for the fourth quarter of 2025 and $111.5 million for 2025.
Allison added, “We have continued to use our strong cash flow from operations in 2025 to pay down debt, allowing us greater flexibility in our capital allocation strategy. Acquisitions remain an integral part of our overall growth strategy, and Addus has achieved a solid record of deriving value from our acquired operations, including three acquisitions completed in 2025. Going forward, our development team will continue to assess both clinical and non-clinical operations to increase the density and geographic coverage in strategic markets. We also see important synergies in offering multiple elements of the care continuum as we build scale and extend our market reach. We are optimistic that we will see additional acquisition opportunities in 2026. While our priority is to deploy our capital for acquisitions, we also continue to invest in our business, adding technologies that support our operations and enhance the work of our caregivers.
Looking Ahead
“We are extremely proud of the important work Addus is doing to address a vital need for quality, compassionate care for more patients and families in their preferred home setting. We believe we offer a strong value proposition that meets the growing demand for home-based care. Our favorable results for 2025 affirm our strategic priorities, and we will continue to extend our market reach through both organic growth and acquisitions in the year ahead. We recognize the success of our operations and continued growth reflect the hard work and dedication of the caregivers who are the face of Addus, and we are grateful for the outstanding care and support they provide every day. Working together, we look forward to the opportunities ahead for Addus in 2026,” said Allison.
Read more in the full news release.
