Acadia Healthcare Updates 2025 Guidance to $675M-$700M EBITDA Amid Accelerated Bed Expansion and Medicaid Dynamics.

Acadia Healthcare reported Q2 2025 earnings with total revenue of $869.2 million, up 9.2% YoY, and adjusted EBITDA of $201.8 million, a 7.5% increase. CEO Christopher Howal Hunter highlighted solid top-line growth, driven by accelerated bed expansion and Medicaid dynamics. The company updated its 2025 guidance to $675M-$700M EBITDA.

Acadia Healthcare (NASDAQ: ACHC) reported its Q2 2025 earnings, showcasing strong revenue growth and an increase in adjusted EBITDA. The company's total revenue reached $869.2 million, a 9.2% year-on-year (YoY) increase, and its adjusted EBITDA stood at $201.8 million, marking a 7.5% YoY rise. CEO Christopher Howal Hunter highlighted the company's solid top-line growth, driven by accelerated bed expansion and evolving Medicaid dynamics.

Acadia Healthcare's revenue exceeded Wall Street's estimates by 3.2%, with adjusted EPS of $0.83, beating analysts' consensus estimates by 17.4%. The company's revenue guidance for the full year was lowered to $3.33 billion, a 0.7% decrease from its previous estimate, and the full-year adjusted EPS guidance was revised to $2.55, a 3.8% decrease. Despite these changes, the company's EBITDA guidance for the full year was maintained at $687.5 million at the midpoint, in line with analyst expectations.

The company's operating margin decreased by 7.8 percentage points over the last five years, indicating a rise in expenses. However, its two-year trajectory shows a decline in its operating margin by 5.9 percentage points, suggesting that the company is facing challenges in managing its cost base. The company's EPS grew at a 6.9% compounded annual growth rate over the last five years, but this growth was not accompanied by an improvement in its operating margin.

Acadia Healthcare's Q2 2025 results were mixed, with revenue and adjusted EPS outperforming Wall Street's estimates, but sales volume and full-year guidance falling short. The stock traded down 3.6% to $21 immediately following the results. Despite the challenges, the company's commitment to quality and technology investments, along with its expansion into new markets, could present opportunities for investors.

References:
[1] https://finance.yahoo.com/news/acadia-healthcare-nasdaq-achc-q2-220143025.html
[2] https://seekingalpha.com/news/4480286-acadia-healthcare-updates-2025-guidance-to-675m-700m-ebitda-amid-accelerated-bed-expansion