Healthcare Services Group (HCSG) Investor presentation summary

Business overview and market position

• Leading provider of environmental, dining, and nutrition services to healthcare facilities, servicing over 2,800 facilities with approximately 36,000 employees across 48 states.

• Holds over 80% share in both environmental and dietary services among outsourced providers, with less than 15% and 8% of the addressable market currently outsourced, respectively.

• Recurring revenues and a strong balance sheet support a market-leading client retention rate above 90%.

Industry trends and growth drivers

• U.S. population aged 85+ is projected to grow 168% from 2022 to 2050, driving demand for long-term care services.

• By 2030, over 170 million Americans will have at least one chronic condition, and 70% of today’s 65-year-olds are expected to require long-term care.

• Expansive geographic footprint and untapped organic growth levers position the business for continued expansion.

Financial performance and outlook

• 2025 revenue reached $1.84B, with environmental services contributing $825M and dietary services $1.01B.

• Adjusted EBITDA for Q1 2026 was $38.9M, up from $29.2M in Q1 2025; operating cash flow for Q1 2026 was $32.1M.

• 2026 outlook projects mid-single digit revenue growth, EBITDA margins of 5.5%, and operating cash flow expected to mirror net income.