Acadia Healthcare 2025 Q3 Earnings Beats Revenue Estimates, EPS Falls 45.9%

Acadia Healthcare (ACHC) reported fiscal 2025 Q3 earnings on November 5, 2025. The company exceeded revenue expectations but faced a sharp decline in EPS and net income. It also revised its full-year guidance downward due to operational challenges.

Revenue

Acadia Healthcare’s total revenue for Q3 2025 rose 4.4% year-over-year to $851.57 million. Medicaid contributed the largest share at $484.17 million, followed by Commercial ($211.88 million) and Medicare ($125.54 million). Self-Pay and Other segments added $17.81 million and $12.17 million, respectively, rounding out the revenue mix.

Earnings/Net Income

The company’s EPS plummeted 45.9% to $0.40 in Q3 2025, compared to $0.74 in Q3 2024. Net income also fell by 46.3% to $38.32 million from $71.37 million. The earnings decline reflected lower operating margins and increased startup losses from new facilities.

Price Action

Following the earnings release, Acadia Healthcare’s stock edged up 0.98% during the latest trading day. However, it tumbled 10.13% during the most recent full trading week and plummeted 21.84% month-to-date.

Post-Earnings Price Action Review

The stock’s post-earnings performance underscores investor concerns over revised guidance and operational headwinds. While the quarterly revenue beat provided short-term optimism, the significant EPS drop and full-year outlook cuts led to a sharp selloff. The market’s reaction highlights skepticism about Acadia’s ability to offset volume pressures and startup costs in the near term.

CEO Commentary

CEO Chris Hunter emphasized resilience in Q3, stating, “We delivered solid revenue performance despite a challenging operating environment.” He acknowledged the need to address volume and rate pressures but expressed confidence in patient demand and ongoing portfolio optimization efforts.

Guidance

Acadia Healthcare revised its full-year 2025 guidance downward. Revenue is now projected at $3.28–$3.30 billion (midpoint $3.29 billion), adjusted EBITDA at $650–$660 million (midpoint $655 million), and adjusted EPS at $2.35–$2.45 (midpoint $2.40). These updates reflect lower-than-expected volumes, increased startup losses, and higher liability expenses.

Additional News

Key non-earnings updates include COO Dr. Nasser Khan’s resignation effective November 3 and the appointment of Todd Young as CFO on October 27. The company also announced a $300 million reduction in 2026 capital expenditures to optimize its portfolio. Additionally, same-facility admissions grew 3.3% in Q3, driven by targeted referral initiatives.

Acadia Healthcare’s strategic moves, including portfolio optimization and cost-cutting measures, aim to stabilize operations amid ongoing challenges. Investors will closely monitor progress in addressing startup losses and improving operating margins.