Enhabit 2025 Q3 Earnings Profitability Turns 110.6% Positive from Loss

Enhabit (EHAB) reported Q3 2025 results exceeding expectations, with a significant turnaround in profitability and revised guidance. , reflecting operational improvements and debt reduction.

Revenue

Enhabit’s total revenue rose 3.9% to $263.60 million in Q3 2025, driven by robust performance across key segments. , with Medicare revenue at $113.40 million and Non-Medicare at $85.20 million. The Non-Medicare segment saw notable growth, while Hospice revenue totaled $63.10 million, reflecting a 72.0% increase in Adjusted EBITDA. Private Duty, , remained part of the diversified revenue mix.

Earnings/Net Income

, reversing a $2.20 loss in Q3 2024—a 110.6% positive swing. , a dramatic improvement from a $109.50 million loss. This turnaround underscores Enhabit’s sustained profitability over five consecutive years, demonstrating strong operational execution.

Post-Earnings Price Action Review

. Month-to-date, , reflecting mixed investor sentiment. While short-term volatility persists, the earnings-driven optimism suggests potential for stabilization. The stock’s performance against the S&P 500 remains subdued, with a 4.4% YTD gain compared to the index’s 15.1%. Analysts note that future price movements will hinge on management’s ability to sustain cost efficiencies and debt reduction.

CEO Commentary

CEO highlighted progress in strategic priorities, including a 3.6% growth in home health admissions and a 12.6% increase in hospice ADC. , . Strengthened balance sheet metrics and improved cost per patient day across segments were key drivers of the earnings turnaround.

Guidance

, reflecting stronger-than-expected hospice performance. . The updates exclude unpredictable items like litigation costs, emphasizing operational clarity.

Additional News

Enhabit announced a conference call to discuss Q3 results, aligning with its investor engagement strategy. Analyst ratings remain split, , . The company also disclosed plans to open two new hospice locations, signaling expansion in high-growth segments.

Enhabit’s debt reduction strategy and operational efficiency improvements position it to capitalize on sector trends. With a Zacks Rank #3 (Hold) and mixed estimate revisions, the stock’s near-term trajectory will depend on execution against revised guidance. Investors should monitor hospice growth momentum and balance sheet strength as key indicators of future performance.