Enhabit 2025 Q2 Earnings Strong Performance as Net Income Surges 1325%

Enhabit (EHAB) reported strong fiscal 2025 Q2 earnings on August 7, 2025, beating expectations and raising full-year guidance. The company returned to profitability with a significant 1325% year-over-year increase in net income and delivered sequential and year-over-year growth in revenue and Adjusted EBITDA.

Revenue
Enhabit reported total revenue of $266.10 million in Q2 2025, a 2.1% increase from $260.60 million in Q2 2024. Home health net service revenue reached $205.90 million, contributing the bulk of the revenue, while hospice net service revenue grew to $60.20 million, reflecting strong demand in both segments. Together, these services accounted for the company’s total net service revenue of $266.10 million.

Earnings/Net Income
Enhabit returned to profitability in Q2 2025 with a net income of $5.70 million, a 1325% increase from $400,000 in the same period the previous year. The company also reported an EPS of $0.10, reversing from a $0.00 per share loss in Q2 2024. This marked a strong turnaround and reflected five years of consistent profitability for the company.

Price Action
EHAB’s stock edged up 0.45% on the latest trading day and 1.35% for the week, although it declined 7.51% month-to-date.

Post Earnings Price Action Review
A strategy of buying EHAB following the earnings beat and holding for 30 days yielded a -3.91% return, underperforming the 53.04% benchmark. The approach showed a maximum drawdown of 0.00%, a Sharpe ratio of -0.08, and a volatility of 20.09%. The underperformance suggests mixed market sentiment post-earnings.

CEO Commentary
Barb Jacobsmeyer, President and CEO, highlighted strong execution on 2025 strategic priorities, noting sequential and year-over-year growth in revenue and Adjusted EBITDA. Home health benefited from payer contract initiatives, and hospice delivered six consecutive quarters of growth. The company reduced $10 million in bank debt during Q2 and $45 million in total since Q1 2025, reinforcing its balance sheet strength.

Guidance
Enhabit raised its full-year 2025 guidance, citing continued momentum in home health and hospice segments. The company expects sustained admissions growth, operational efficiencies, and ongoing balance sheet improvements, including debt reduction and liquidity preservation.

Additional News
On August 8, 2025, Enhabit released its Q2 2025 earnings call transcript, which highlighted the earnings beat and strategic execution. The transcript is available after enabling JavaScript and cookies on the platform. While no earnings metrics were included in the additional content, it provided insights into the company’s performance and outlook from senior leadership.