Addus HomeCare (ADUS -1.49%), a leading provider of home-based personal care, hospice, and home health services, reported its second quarter 2025 financial results on August 4, 2025. The company posted revenue (GAAP) and earnings per share (non-GAAP) figures that exceeded Wall Street estimates in Q2 2025, supported by solid organic growth and recent acquisitions. Revenue (GAAP) was $349.4 million in Q2 2025, beating the consensus GAAP revenue estimate of $346.5 million and growing 21.8% from the prior year. Non-GAAP earnings per share reached $1.49, outpacing the $1.47 consensus (Non-GAAP EPS) and climbing 10.4% year-over-year. The quarter reflected strong performance in the Personal Care and Hospice divisions, but also highlighted ongoing challenges in the Home Health segment. Overall, it was a quarter marked by reliable operational execution and expanding market reach despite some headwinds.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.49 | $1.47 | $1.35 | 10.4% |
| Revenue (GAAP) | $349.4 million | $346.5 million | $286.9 million | 21.8% |
| Adjusted EBITDA | $43.9 million | $35.3 million | 24.4% | |
| Net Income | $22.1 million | $18.1 million | 22.1% | |
| Cash Flow from Operations | $22.5 million | $18.8 million | 19.7% |
Source: Analyst estimates for the quarter provided by FactSet.
About Addus HomeCare and Key Business Drivers
Addus HomeCare delivers home-based health services in 23 states, focusing on personal care, hospice care, and home health. Personal care services involve non-medical assistance like bathing, dressing, and meal preparation, especially for seniors and chronically ill individuals. Hospice care offers specialized support for patients facing terminal illness, focusing on comfort and quality of life through in-home nursing and counseling. Home health combines skilled nursing and rehabilitation services provided in patients' homes.
The company’s business strategy centers on growing organically—by increasing service volumes and rates—as well as expanding through acquisitions. Recent efforts have targeted efficient integration of newly acquired businesses, improved caregiver hiring and retention, and investment in scheduling and care management technology. The company’s success relies on maintaining good relationships with government payors, operational efficiency, and patient growth within its largest business, Personal Care.
Quarter in Review: Growth, Segment Performance, and Strategic Moves
During the quarter, Addus HomeCare’s GAAP revenues increased sharply, up 21.8% year-over-year. This growth was driven by both steady demand and contributions from acquired companies, most notably Gentiva Personal Care Services. Personal Care, accounting for 77% of total revenue, grew 26.5% year-over-year. Organic growth in Personal Care came in at 7.4%, primarily due to increased service hours and higher rates in key states such as Illinois, where a 5.5% state-mandated rate increase took effect January 1, 2025. While the average number of clients served (billable census) dipped from 37,993 in Q2 2024 to 36,049, higher hours per client and improved caregiving efficiency kept revenue moving up.
Hospice services—the company’s end-of-life care offering—accounted for 17.8% of revenue, Hospice revenue delivered 10.0% organic growth over the second quarter of 2024. The segment showed a 10.0% organic growth rate, reflecting operational adjustments and a higher patient census. The average daily hospice census rose 7.0% to 3,720 patients, with revenue per patient day was $184.92, a 3.0% increase over Q2 2024. Growth in patient admissions and total patient days signaled that strategic changes implemented over the past year are having an impact.
The Home Health segment, which provides skilled nursing and therapy, remained a small portion of overall revenue, at 5.2% (GAAP). Home Health revenue was $18,048,000 compared to $18,075,000 in Q2 2024, a slight year-over-year decline, with organic revenues down 6.0% and new admissions dropping 7.6%. Management continues to view Home Health as a complementary business rather than a growth engine, and is seeking targeted acquisition opportunities to supplement its presence in existing markets.
The quarter also featured progress in technology adoption. The company continued to roll out a proprietary caregiver scheduling app in Illinois and is expanding it to other states. This app improves communication, allows staff to adjust schedules directly, and helps capture more authorized hours, which in turn boosts efficiency. Recent acquisitions, such as the integration of Gentiva Personal Care and the completed purchase of Helping Hands Home Care in Pennsylvania, have expanded the company’s market coverage and service density. As of June 30, 2025, Addus HomeCare had 260 locations in 23 states, serving approximately 62,000 patients.
Outlook and Forward-Looking Considerations
However, commentary pointed to ongoing expectations of “robust demand” for home-based care, steady focus on operational efficiency, and continued pursuit of accretive acquisitions. Organic revenue growth in Personal Care was 7.4%, above the company’s long-term 3–5% range. For Hospice, this was helped by momentum in census and strategic changes made last year.
The company is paying close attention to government reimbursement rates and regulatory developments, as most of its revenue comes from Medicaid and Medicare programs. While current rate support in major markets like Illinois and New Mexico remains positive, potential changes to federal or state funding could impact margins. Management noted minimal direct exposure to policy changes such as Medicaid expansion rollbacks, given its core patient base of elderly and dual-eligible recipients. Cash flow from operations and a conservative balance sheet support ongoing acquisition and technology investments.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
