FRISCO, Texas—Addus HomeCare Corporation, a provider of homecare services, announced its financial results for the first quarter ended March 31, 2025. Due to the growth in its personal care business and its acquisition of Gentiva's business in December, Addus reported a 20% growth in revenue and 25% higher earnings over the first quarter of last year.
First Quarter 2025 Highlights:
- Net service revenues grow 20.3% to $337.7 million
- Net income of $21.2 million, or $1.16 per diluted share
- Adjusted net income per diluted share increases 17.4% year-over-year to $1.42
- Adjusted EBITDA increases 25.1% year-over-year to $40.6 million
- Cash flow from operations of $18.9 million
Overview
Net service revenues were $337.7 million for the first quarter of 2025, a 20.3% increase compared with $280.7 million for the first quarter of 2024. Net income was $21.2 million for the first quarter of 2025 compared with $15.8 million for the first quarter of 2024, while net income per diluted share was $1.16 compared with $0.97 for the same period a year ago. Adjusted EBITDA increased 25.1% to $40.6 million for the first quarter of 2025 from $32.4 million for the first quarter of 2024.
Adjusted net income was $26.0 million for the first quarter of 2025 compared with $19.8 million for the prior-year period, while adjusted net income per diluted share was $1.42 compared with $1.21 for the first quarter of 2024. Adjusted net income per diluted share for the first quarter of 2025 excludes acquisition expenses of $0.13 and stock-based compensation expense of $0.13.
“Addus had a strong start to 2025, delivering a solid financial and operating performance as we continue to see solid demand for our home-based care services across the continuum," said Dirk Allison, chairman and CEO. "Revenue for the first quarter of 2025 was up 20.3% and adjusted EBITDA increased 25.1% over the same period last year. These results reflect solid organic growth and include the first full quarter of the personal care operations of Gentiva, which we acquired on December 2, 2024.
“Our personal care segment, which accounted for 76.5% of our business, was the key driver of our growth with a 7.4% organic revenue increase over the first quarter last year," Allison continued. "We benefited from higher volumes as well as additional rate support, including a 5.5% increase effective Jan. 1, 2025, for Illinois, our largest personal care market. The addition of the Gentiva personal care operations, our largest acquisition to date, gave us two new states and added coverage in five states where we already had operations. Our team has worked hard to implement a smooth integration, and we are excited about the additional opportunities to expand our personal care presence.
“We were pleased to see continued steady improvement in our hospice care segment, which accounted for 18.2% of our business, with solid organic revenue growth of 9.9% over the first quarter last year. Our average daily census, patient days and revenue per patient day were all higher compared with the same period last year. With the recent changes in our operations and sales leadership, we are confident we have a capable team in place to drive further improvement in our hospice business. Our home health services accounted for 5.3% of total revenue for the first quarter. While this is our smallest business segment, we continue to see home health as providing important complementary capabilities to our personal care and hospice care segments, allowing us to provide patients with the full care continuum.
Cash & Liquidity
As of March 31, 2025, the company had cash of $97.0 million and bank debt of $203.0 million, with capacity and availability under its revolving credit facility of $632.9 million and $421.9 million, respectively. Net cash provided by operating activities was $18.9 million for the first quarter of 2025, inclusive of a net $2.5 million in ARPA funds utilization.
“For the first quarter of 2025, we continued to generate consistent cash flow from operations and maintain a strong balance sheet," Allison said. "Our conservative leverage position allows us the flexibility to continue to invest in our business and to evaluate and pursue additional acquisition opportunities. We remain focused on finding strategic markets that meet our objective to leverage our existing personal care presence and add clinical care services, so we can provide all three levels of care. We see important synergies in offering the full care continuum as we build scale and expand our market coverage, and we are optimistic that we will see additional acquisition opportunities in 2025."
Allison said the company is optimistic about more acquisitions in 2025 and is focused on adding clinical care to its existing personal care operations.
“We believe the favorable trends in our business will continue to enhance our ability to achieve solid organic growth and provide quality services from our recently acquired operations," Allison said. "As we extend our reach to more patients and families across our markets, we are mindful of our important role as a leading provider of quality care in the preferred home setting."