Amedisys (AMED -0.14%), a leading provider of home health, hospice, and high acuity post-acute care services, reported quarterly earnings for the period ending June 30, 2025, on July 29, 2025. The most significant news is that the company outperformed market expectations on both revenue and adjusted profitability, even as merger-related costs weighed on GAAP results. GAAP revenue reached $621.9 million, ahead of the $611.99 million GAAP consensus, and Non-GAAP EPS was $1.54, well over the $1.36 analyst forecast (non-GAAP). While core operations showed strength, reported GAAP net income dropped to $28.1 million from $32.3 million a year ago, with the decrease driven by $26.3 million in expenses linked to the pending UnitedHealth Group merger. Overall, the quarter demonstrated continued momentum in Amedisys’s operational performance, but this was tempered by non-operational items and transition uncertainty.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.54 | $1.36 | $1.32 | 16.7% |
| Revenue (GAAP) | $621.9 million | $611.99 million | $591.2 million | 5.2% |
| Adjusted EBITDA | $80.8 million | $73.2 million | 10.4% | |
| Net Income (GAAP) | $28.1 million | $32.3 million | (13.0%) | |
| EPS (GAAP) | $0.84 | $0.98 | (14.3%) |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Key Success Factors
Amedisys operates a national network of 519 care centers, serving nearly half a million patients each year across 38 states and Washington, D.C. Its primary business lines include home health services, which provide skilled nursing and therapy in patients' homes; hospice care for end-of-life support; and high acuity care, which delivers hospital-level treatment at home through partnerships.
To remain competitive, the company focuses on regulatory compliance, high-quality clinical care, and strategic partnerships. About 70-74% of revenue has come from Medicare over the last three years, making reimbursement policy a pivotal factor. Amedisys also prioritizes clinical excellence, as reflected in its average home health quality rating of 4.18 out of 5 stars, as reported by CMS for the January 2025 Final Release. Expansion into high acuity care, often via joint ventures, and careful workforce management are ongoing priorities as it navigates both growth and operational risks.
Quarterly Highlights and Notable Developments
GAAP revenue surpassed analyst estimates by $9.91 million. GAAP revenue grew 5.2% for the three months ended June 30, 2025, compared to the same period in 2024. Adjusted EBITDA climbed 10.3% for the three months ended June 30, 2025, compared to the same period in 2024, signaling improved operating efficiency. Non-GAAP net income attributable to Amedisys rose to $51.4 million, up from $43.5 million in Q2 2024. The company delivered Non-GAAP EPS of $1.54, well ahead of expectations.
Despite this operational progress, merger-related expenses had a substantial effect. GAAP net income fell to $28.1 million, down 13% from Q2 2024. The company incurred $26.3 million in costs linked to its proposed merger with UnitedHealth Group, up from $11.9 million in Q2 2024. This divergence between adjusted and GAAP figures highlights the ongoing financial impact of one-time or unusual items that do not reflect routine operations.
Patient collections showed notable improvement. The “days revenue outstanding” metric, which tracks how quickly the company collects payments after providing services, dropped to 40.9 days from 52.1 days in Q2 2024. Cash from operations (GAAP) increased to $67.2 million compared to $52.3 million in Q2 2024, while ending cash and equivalents stood at $337.3 million as of June 30, 2025 (GAAP), higher than at year-end 2024.
No new updates were provided on segment performance by area (home health, hospice, or high acuity care service lines). While recent filings referenced high patient satisfaction and clinical quality in home health and hospice, the latest results did not offer further breakdown by product family or center. Impairment expense (GAAP) was $0.9 million, and the company recognized a $48.1 million gain related to its equity method investments in the first half of 2025.
Financial Outlook and What to Watch
Company leadership did not provide forward financial guidance for the upcoming quarter or fiscal 2025. Management also opted not to hold an earnings call, citing the pending UnitedHealth Group merger, and flagged significant regulatory and completion risks associated with the transaction. As a result, there is no formal outlook for revenue, earnings, or other performance measures in the coming periods.
Investors should monitor developments around regulatory policy, particularly changes in Medicare and Medicaid reimbursement rates, as these will have a direct impact on margins and cash flows. The pace and outcome of the UnitedHealth Group merger process will be pivotal for future growth prospects and cost structure. Labor costs and talent retention remain a risk.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
