Amedisys Exceeds Q2 Revenue Expectations with Strong Financial Profile

Amedisys Inc. (AMED) reported Q2 revenue of $621.9 million, exceeding expectations. The company's Home Health segment drives revenue growth, with a trailing twelve-month revenue of $2.37 billion and a one-year growth rate of 4.1%. Amedisys maintains competitive profitability metrics but has shown some warning signs, including recent insider selling activity and asset growth outpacing revenue growth. The company's valuation is fair, with a P/E ratio of 35.99 and a P/S ratio of 1.35.

Amedisys Inc. (AMED), a leading provider of home health, hospice, and high acuity post-acute care services, reported its Q2 2025 financial results, showcasing a robust revenue performance despite challenges posed by a pending merger with UnitedHealth Group. The company's Q2 revenue of $621.9 million exceeded analyst expectations by $9.91 million, reflecting a 5.2% year-over-year (YOY) increase [1].

The company's Non-GAAP earnings per share (EPS) of $1.54 also surpassed estimates by 13.2%, while adjusted EBITDA climbed 10.4% to $80.8 million. However, GAAP net income declined to $28.1 million due to $26.3 million in merger-related expenses, down 13% from Q2 2024 [1]. This divergence between GAAP and Non-GAAP figures underscores the ongoing financial impact of one-time or unusual items.

Amedisys' Home Health segment continues to drive revenue growth, with a trailing twelve-month (TTM) revenue of $2.37 billion and a one-year growth rate of 4.1%. The company's operational efficiency has improved, as evidenced by a 10.3% increase in adjusted EBITDA and a reduction in the "days revenue outstanding" metric to 40.9 days [1]. Patient collections have also shown notable improvement, with cash from operations (GAAP) increasing to $67.2 million compared to $52.3 million in Q2 2024 [1].

However, the company faces several challenges. The pending UnitedHealth Group merger introduces regulatory and completion risks, and there is no formal outlook for revenue, earnings, or other performance measures in the coming periods. Additionally, the company's valuation appears fair, with a P/E ratio of 35.99 and a P/S ratio of 1.35 [1]. Recent insider selling activity and asset growth outpacing revenue growth also warrant attention.

Investors should closely monitor regulatory policy changes, particularly Medicare and Medicaid reimbursement rates, and the progress of the UnitedHealth Group merger process. Labor costs and talent retention remain a risk for Amedisys.

References:

[1] The Globe and Mail. (July 29, 2025). Amedisys (AMED) Q2 Revenue Tops $5 Billion. Retrieved from https://www.theglobeandmail.com/investing/markets/stocks/UNH-N/pressreleases/33764030/amedisys-amed-q2-revenue-tops-5/