Addus HomeCare (ADUS) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 revenue reached $373.1 million, up 25.6% year-over-year, with full-year revenue at $1.42 billion, a 23.2% increase from 2024.

• Adjusted EPS for Q4 was $1.77, up 28.3% year-over-year; full-year adjusted EPS was $6.23, up 18.4%.

• Adjusted EBITDA for Q4 was $50.3 million, up 33.3% year-over-year; full-year adjusted EBITDA was $180 million, up 28.3%.

• Personal Care segment drove growth, accounting for 76.6% of Q4 revenues, with 6.3% organic revenue growth.

• Three acquisitions completed in 2025, including Del Cielo Home Care Services, expanding market reach.

Financial highlights

• Q4 gross margin was 33.1%, down from 34.2% in Q4 2024, mainly due to a higher mix of Personal Care Services.

• G&A expense was 20.7% of revenue, down from 24% in Q4 2024; adjusted G&A was 19.1%, down from 20.5%.

• Net cash flow from operations was $18.8 million for Q4 and $111.5 million for 2025.

• Cash on hand at year-end was $81.6 million; bank debt was $124.3 million, with $517.7 million available under the credit facility.

• Operating income for Q4 2025 was $42.3 million, up from $26.9 million in Q4 2024.

Outlook and guidance

• Q1 2026 expected to benefit from Illinois rate increase, offset by two fewer business days and seasonal winter storm impacts.

• Gross margin % expected to decline sequentially by about 120 basis points in Q1 2026 due to annual merit increases and payroll tax resets.

• Management expects continued growth through organic expansion and acquisitions in 2026.

• Recent state rate increases in Texas (9.9%) and Illinois (3.9%) are expected to positively impact future revenues.

• Continued focus on disciplined capital allocation and ongoing debt reduction while pursuing strategic acquisitions.