Addus HomeCare's Q2 2025: Unpacking Key Contradictions in Growth Expectations and Labor Trends

Hospice growth expectations, reimbursement environment and rate increases, caregiver application and labor trends, impact of immigration policy on home care workforce, and hospice census growth expectations are the key contradictions discussed in Addus HomeCare Corporation's latest 2025Q2 earnings call.



Revenue and Earnings Growth:
- Addus HomeCare reported total revenue of $349.4 million for Q2 2025, an increase of 21.8% compared to the same quarter in 2024.
- This growth resulted in adjusted earnings per share of $1.49, an increase of 10.4% over the previous year.
- The growth was driven by strong organic performance and the inclusion of revenue from the Gentiva acquisition.

Personal Care Services Performance:
- The Personal Care Services segment experienced a 7.4% organic revenue growth over the same period last year.
- This growth was supported by strong hiring trends and favorable rate support in key markets like Illinois and Texas.
- The segment's growth is attributed to consistent hiring success and state-approved rate increases.

Hospice Segment Improvement:
- The hospice segment saw a 10% increase in same-store revenue compared to the same quarter of 2024, with a mean length of stay of 28 days.
- The improvement was driven by operational enhancements and increased admissions, despite a slight decrease in the length of stay.

Financial Performance and Margin Expansion:
- Adjusted EBITDA increased by 24.5% to $43.9 million, with an adjusted EBITDA margin of 12.6%.
- The margin expansion was supported by consistent cash flows, cost management, and the impact of recent rate increases in Illinois and Texas.