Addus HomeCare Corp., a provider of home care services, announced its financial results for the third quarter and nine months ended Sept. 30, 2025.
Third Quarter 2025 Highlights:
- Net Service Revenues Grow 25.0% to $362.3 Million.
- Net Income of $22.8 Million, or $1.24 per Diluted Share.
- Adjusted Net Income per Diluted Share Increases 20.0% year-over-year to $1.56.
- Adjusted EBITDA Increases 31.6% year-over-year to $45.1 Million.
- Cash Flow from Operations of $51.3 Million.
- Completed Del Cielo acquisition on Oct. 1, 2025.
Overview
Net service revenues were $362.3 million for the third quarter of 2025, a 25.0% increase compared with $289.8 million for the third quarter of 2024. Net income was $22.8 million for the third quarter of 2025 compared with $20.2 million for the third quarter of 2024, while net income per diluted share was $1.24 compared with $1.10 for the same period a year ago. Adjusted EBITDA increased 31.6% to $45.1 million for the third quarter of 2025 from $34.3 million for the third quarter of 2024. Adjusted net income was $28.7 million for the third quarter of 2025 compared with $23.8 million for the prior-year period, while adjusted net income per diluted share was $1.56 compared with $1.30 for the third quarter of 2024. Adjusted net income per diluted share for the third quarter of 2025 excludes acquisition expenses of $0.08, stock-based compensation expense of $0.18 and restructuring and other non-recurring costs of $0.06.
For the first nine months of 2025, net service revenues increased 22.4% to $1.0 billion from $857.5 million for the prior-year period. Net income was $66.1 million for the first nine months of 2025 compared with $54.1 million for the same period in 2024, and net income per diluted share was $3.60 compared with $3.17 per diluted share. Adjusted EBITDA increased 27.1% to $129.6 million for the first nine months of 2025 from $102.0 million for the first nine months of 2024. Adjusted net income was $82.1 million for the first nine months of 2025 compared with $65.9 million for the first nine months of 2024, while adjusted net income per diluted share was $4.48 compared with $3.86 for the prior-year period.
Commenting on the results, Dirk Allison, chairman and chief executive officer, said, “Our third quarter results reflect the continued strong momentum that we have experienced in our business throughout 2025, with net service revenues up 25.0% and adjusted EBITDA up 31.6% over the third quarter of 2024. During the quarter, we saw continued stable hiring trends, which supported our business, especially in our personal care segment. We continue to see favorable demand trends as consumers and payers continue to recognize the value and cost benefits of home-based healthcare services. Addus is well positioned to meet this growing demand with our expanding market coverage, along with our ability to provide the full continuum of care in certain markets. We are proud of our expanding team of capable and dedicated caregivers who provide outstanding care to a growing number of patients and families across the markets we serve.
“Our personal care business was the key driver of our growth and accounted for 76.1% of our revenues for the third quarter. These results include the addition of recent acquisitions, including the Gentiva personal care operations on December 2, 2024, and Helping Hands Home Care Service, Inc. on August 1, 2025. The 6.6% organic revenue growth in our personal care business was supported by strong volumes as well as higher rates in certain key markets compared with the same period last year. We are very pleased with the favorable 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. Following the acquisition of the Gentiva operations, Texas is our second largest personal care market, so this increase will have a significant positive impact on our business going forward.
“Our hospice care business, which accounted for 19.0% of our revenue in the third quarter, has continued to improve throughout 2025, with solid 19.0% organic revenue growth driven by year-over-year increases in admissions, average daily census, patient days and revenue per patient day. We are realizing the benefits of operational changes and new sales leadership, and we look forward to opportunities for continued growth in our hospice care service line. While home health represents our smallest business segment, accounting for 4.9% of third quarter revenue, it is an integral part of our strategy to offer three levels of home-based care and meet the evolving needs of the patients we serve,” said Allison.
Acquisitions Support Continued Growth
The company also announced that it acquired the personal care operations of Del Cielo Home Care Services (“Del Cielo”) on October 1, 2025, for a purchase price of $7.4 million. Located in Alice, Texas, Del Cielo serves approximately 700 clients in the Coastal Bend region of the state, including Corpus Christi and Victoria, and has annualized revenues of approximately $12.5 million.
Allison added, “We are delighted to welcome the employees of Del Cielo to the Addus family. This acquisition will further expand our personal care coverage in Texas, adding to the markets we are already serving with the Gentiva acquisition and supporting our strategy to create greater density in the states where we operate. With a focus on personalized care and a commitment to improving patient lives, Del Cielo shares our mission to be a trusted provider in the communities we serve. Importantly, we expect this transaction will be accretive to our financial results, and we look forward to a successful integration of Del Cielo’s personal care business into our Texas operations.”
Cash and Liquidity
As of Sept. 30, 2025, the company had cash of $101.9 million and bank debt of $154.3 million, with capacity and availability under its revolving credit facility of $650.0 million and $487.7 million, respectively. Net cash provided by operating activities was $51.3 million for the third quarter of 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. As we expand our market reach and pursue additional acquisition opportunities, we have a strong financial position and sufficient capital to support our growth initiatives. We have established a solid track record in identifying and completing strategic acquisitions that add value to our operations and complement our organic growth. In addition to acquisitions, we also look for ways to deploy capital back into our business and drive greater efficiency in our operations, including investments in technology that support the work of our caregivers.
Looking Ahead
“We are pleased with the favorable trends in our business so far in 2025 and encouraged by our continued momentum. Our strategy of leveraging strong organic growth with the support of recent acquisitions has yielded favorable results and set the stage for sustained success. As we continue to expand our market coverage, the lower costs and overall benefits of home-based care put Addus in a favorable position with state Medicaid programs and our managed care partners. We have a strong competitive advantage with a proven and scalable operating model and the ability to offer the full continuum of home-based care in select markets. We are excited about the opportunities ahead for Addus as we work together to deliver greater value to our shareholders and the patients and communities we serve,” concluded Allison.
