Acadia Healthcare 2025 Q3 Earnings Revenue Rises 4.4% Amid 46% Drop in Net Income

, outpacing expectations, but net income and EPS declined sharply. The company revised its full-year EBITDA guidance downward by 5%, citing rising bad debt and legal costs. Analysts remain cautiously neutral, with Cantor Fitzgerald maintaining a $25 price target.

Revenue

Commercial revenue reached $211.88 million, contributing significantly to the overall increase. , while self-pay and other segments accounted for $17.81 million and $12.17 million. The Medicaid segment remained the largest revenue driver, reflecting the company’s focus on government-funded care.

Earnings/Net Income

Acadia Healthcare’s EPS fell 45.9% to $0.40, . The earnings contraction underscores margin pressures despite revenue growth, driven by higher operating costs and volume challenges.

Price Action

. Post-earnings sentiment remains mixed, with investors weighing weak guidance against resilient revenue performance.

Post-Earnings Price Action Review

The market’s reaction to Acadia’s Q3 results was polarized. , . , . Analysts remain divided, with Cantor Fitzgerald’s neutral stance contrasting against bearish sentiment from Zacks, which downgraded the stock to a Sell rating.

CEO Commentary

CEO acknowledged the Q3 revenue beat but emphasized challenges in operating margins and volume recovery. “We remain committed to disciplined growth and operational efficiency,” he stated, highlighting efforts to streamline the portfolio and reduce capital expenditures. The leadership team is prioritizing high-acuity markets and enhancing clinical outcomes to stabilize margins.

Guidance

, a 1.1% reduction from prior estimates. , , , below analyst estimates. Management cited ongoing pressures on reimbursement rates and volume recovery as key constraints.

Additional News

, signaling operational headwinds. Cantor Fitzgerald maintained a Neutral rating with a $25 price target, citing stable fundamentals despite near-term challenges. The company announced strategic initiatives to cut capital expenditures and streamline its portfolio, focusing on high-performing markets to improve free cash flow and operational efficiency.