Addus Homecare's Q1 2025 Earnings Call: Contradictions in Revenue Growth, Medicaid Impact, and Workforce Challenges

Hospice revenue growth expectations, growth expectations for personal care services, impact of MedicaidFMAP on revenue, impact of hospice cap constraints, and turnover metrics and hiring trends are the key contradictions discussed in Addus Homecare's latest 2025Q1 earnings call.



Revenue and Earnings Growth:
- Addus HomeCare reported total revenue of $337.7 million for Q1 2025, representing an increase of 20.3% compared to Q1 2024.
- This growth was driven by a 25.1% increase in adjusted EBITDA and a 17.4% rise in adjusted earnings per share.

Personal Care Services Performance:
- The Personal Care Services segment showed a 7.4% same-store revenue growth, with a 2% increase in same-store hours compared to the previous year.
- The growth was supported by strong hiring trends and favorable rate support in key markets like Illinois.

Hospice Segment Improvement:
- Hospice same-store revenue increased by 9.9% year-over-year, with a 4.6% rise in average daily census.
- The improvement was attributed to a hospice reimbursement update and better overall labor conditions in the clinical labor environment.

Acquisition and Strategic Expansion:
- The Gentiva personal care acquisition, the largest in Addus's history, added approximately $280 million in annualized revenues.
- This acquisition is part of Addus's strategy to expand market coverage and density, particularly in Texas, to support future growth.