Addus Reports $35M in New Annualized Revenue from Reimbursement Rate Hikes, Advances Acquisition Strategy.

Addus HomeCare Corporation reported Q2 2025 total revenue of $349.4 million, a 21.8% increase YoY. The company achieved over $35 million in new annualized revenue from reimbursement rate hikes in Illinois and Texas. Management emphasized their acquisition strategy and strong operational performance, with adjusted earnings per share at $1.49 and adjusted EBITDA at $43.9 million.

Addus HomeCare Corporation (ADUS) reported its second quarter 2025 financial results on August 4, 2025, with total revenue of $349.4 million, a 21.8% increase year-over-year (YoY). The company's adjusted earnings per share (EPS) reached $1.49, surpassing analyst expectations by $0.02, and climbing 10.4% from the prior year in adjusted net income per diluted share. The quarter was marked by robust organic growth and recent acquisitions, despite some challenges in the Home Health segment.

The Personal Care and Hospice segments reported organic revenue growth of 7.4% and 9.9%, respectively, in Q1 2025, while the Home Health segment saw a slight YoY decline. Personal Care, which accounts for 77% of total revenue, grew 26.5% YoY, driven by increased service hours and higher rates in key states such as Illinois, where a 5.5% state-mandated rate increase took effect in January 2025. Hospice services, which accounted for 17.8% of revenue, delivered 10.0% organic growth, reflecting operational adjustments and a higher patient census.

The quarter also featured progress in technology adoption, with the company continuing to roll out a proprietary caregiver scheduling app in Illinois and expanding it to other states. Recent acquisitions, such as the integration of Gentiva Personal Care and the completed purchase of Helping Hands Home Care in Pennsylvania, have expanded the company’s market coverage and service density. As of June 30, 2025, Addus HomeCare had 260 locations in 23 states, serving approximately 62,000 patients.

Management expects to benefit from upcoming reimbursement rate increases in Illinois and Texas, projected to add $17.5 million and $17.7 million in annualized revenue, respectively, with margins in the low 20% range. These increases are expected to be effective January 1, 2026 (Illinois) and September 1, 2025 (Texas), pending federal approval. The company is also continuing to identify additional acquisition opportunities and new personal care markets to enter at scale.

Addus HomeCare's strong financial performance and strategic moves position it well for continued growth, despite potential challenges in reimbursement rates and regulatory developments. The company's focus on operational efficiency, patient growth, and technology adoption is likely to support its long-term success.

[1] https://www.nasdaq.com/articles/addus-homecare-adus-q2-revenue-22
[2] https://seekingalpha.com/news/4478742-addus-outlines-over-35m-in-new-annualized-revenue-from-illinois-and-texas-reimbursement-rate