Addus HomeCare (ADUS) investor relations material

Executive summary

• Net service revenues rose 7.7% year-over-year to $363.6 million for Q1 2026, driven by growth in personal care and hospice segments, partially offset by a decline in home health revenues.

• Adjusted EPS rose 14.1% to $1.62, and adjusted EBITDA increased 9.7% to $44.5 million compared to Q1 2025.

• Net income increased 18.1% to $25.1 million, with diluted EPS of $1.36.

• Cash flow from operations was $52.4 million, with cash on hand of $103 million and reduced bank debt to $94.3 million.

• Closed acquisition of HomeCourt Home Care in Indiana and signed a definitive agreement for another Indiana acquisition.

Financial highlights

• Personal care segment revenue grew 8.8% to $281.1 million, representing 77.3% of total revenue, with 5.2% growth in billable hours and 3.3% higher revenue per hour.

• Hospice revenue was $65.8 million (18.1% of revenue), with same-store growth of 7.7% and ADC up 8.2%.

• Home health revenue was $16.7 million (4.6% of revenue), with improved operating income despite a year-over-year revenue decline.

• Gross margin was 31.9%, stable year-over-year; adjusted EBITDA margin was 12.2%.

• Operating income grew 11.7% to $34.1 million.

Outlook and guidance

• Expect gross margin and adjusted EBITDA margin to remain stable and above 12% for the full year.

• Anticipate continued growth in personal care and hospice, with same-store personal care hours per business day targeted at 2–2.5%.

• Home health expected to return to growth in the second half of 2026, supported by new leadership and sales initiatives.

• Management expects continued organic growth and value from acquisitions in 2026, with optimism for further expansion and synergies across care segments.

• Ongoing inflationary pressures and labor market tightness may impact future margins and growth.