Addus Homecare 2025 Q2 Earnings Strong Performance as Net Income Surges 22%

Addus Homecare reported its fiscal 2025 Q2 earnings on August 6, 2025, with results that exceeded expectations. The company delivered double-digit revenue and earnings growth, with net income up 22% and EPS rising 8.9%. Management provided in-line guidance and emphasized strategic debt reduction and acquisition opportunities, reinforcing its long-term growth trajectory.

Revenue
The company’s total revenue surged 21.8% year-over-year to $349.44 million, driven by robust performance across its core segments. Personal care services remained the dominant contributor, generating $269.18 million, while hospice revenue added $62.21 million. Home health services brought in $18.05 million, rounding out the company’s diversified revenue base.

Earnings/Net Income
Earnings per share increased by 8.9% to $1.22, with net income rising 22.0% to $22.05 million, demonstrating continued profitability. The consistent earnings performance underscores Addus Homecare’s ability to manage costs and deliver shareholder value.

Price Action
ADUS shares gained 5.77% on the latest trading day and rose 8.05% over the past full trading week, reflecting positive investor sentiment.

Post-Earnings Price Action Review
The post-earnings trading strategy of buying ADUS following a beat and holding for 30 days yielded a 23.82% return, though this significantly lagged behind the benchmark’s 84.41% performance. The strategy registered an excess return of -60.59%, highlighting its underperformance. Despite a Sharpe ratio of 0.13, the high volatility of 34.62% and a maximum drawdown of 0.00% underscore the stock’s sensitivity to market swings.

CEO Commentary
R. Dirk Allison, CEO & Chairman, highlighted a 21.8% revenue increase to $349.4 million and 24.5% adjusted EBITDA growth to $43.9 million. He noted strong personal care hiring, progress on debt reduction, and optimism around upcoming Medicaid reimbursement increases in key states. Allison criticized proposed Medicare home health rate cuts and emphasized the strategic importance of home-based care in reducing overall healthcare costs.

Guidance
Management reaffirmed its expectation of 12% to 13% full-year 2025 EBITDA margins, with margin expansion anticipated in Q4 due to hospice rate increases and payroll tax reductions. The company remains focused on strategic acquisitions and disciplined debt management.

Additional News
On August 2, 2025, a news item titled *“ADUS News Today | Why did Addus HomeCare stock go…”* appeared. While the content was incomplete and access was restricted due to JavaScript requirements, the date suggests it could be related to pre-earnings speculation or investor sentiment analysis. No significant M&A activity or C-level changes were reported within the provided content. The article did not include any dividend or buyback announcements.