Enhabit (EHAB) Q4 2025 earnings summary

Executive summary

• Q4 2025 net service revenue reached $270.4M, up 4.7% year-over-year, with Adjusted EBITDA of $28.0M, an 11.6% increase year-over-year.

• Achieved consolidated net service revenue of $1,060.0M for 2025, up 2.4% year-over-year, with Adjusted EBITDA rising 8.4% to $108.5M.

• Net loss attributable to the company was $38.7M in Q4, including a $47.7M impairment to goodwill and intangible assets; diluted loss per share was $0.76, adjusted diluted EPS was $0.14.

• Announced a definitive agreement to be acquired by Kinderhook Industries for $13.80 per share, valuing the company at approximately $1.1B.

• Reduced bank debt by $125M year-over-year, ending with a 3.7x leverage ratio.

Financial highlights

• Home Health Q4 net service revenue grew 3.2% year-over-year to $206.8M; Hospice revenue rose 10.0% to $63.6M.

• Q4 Adjusted EBITDA margin was 10.4%, up from 9.7% in Q4 2024; gross margin was 48.7% of revenue.

• Adjusted free cash flow for 2025 was $71.2M, up from $53.5M in 2024.

• Annualized cash interest expense reduced by $22M since Q4 2023.

• Impairment charges included $44.7M for goodwill and $3.0M for intangible assets in Q4 2025.

Outlook and guidance

• 2026 priorities include increasing patient census, optimizing cost per patient day, opening 3-6 new home health and 9-12 hospice locations, and targeting $25-50M in strategic M&A.

• Financial guidance is suspended due to the pending merger with Kinderhook Industries.

• Continued focus on deleveraging, payer mix optimization, and quality outcomes.