Addus HomeCare Corporation reported a significant increase in financial performance for the first quarter of 2026, with net service revenues reaching $363.6 million, a 7.7% increase from $337.7 million in the same period of 2025. The growth was primarily driven by an $8.8 million increase in the personal care segment, which accounted for $281.1 million of total revenues, and a $4.3 million rise in the hospice segment, totaling $65.8 million. However, the home health segment experienced a decline, with revenues falling to $16.7 million, down from $18.0 million in the previous year. The company's net income also rose to $25.1 million, an 18.1% increase compared to $21.2 million in the prior year.
In terms of operational metrics, Addus HomeCare's average billable hours increased by 5.2% to 10.7 million hours, while the average billable census slightly decreased by 0.4% to 50,283 clients. The company maintained a strong gross profit margin of 31.9%, consistent with the previous year. General and administrative expenses rose to $77.8 million, reflecting increased costs associated with recent acquisitions, including the Gold Horses and Helping Hands acquisitions. Despite these rising costs, the company managed to improve its operating income to $34.1 million, an 11.7% increase from the prior year.
Strategically, Addus HomeCare has been active in expanding its market presence through acquisitions. The company completed several acquisitions in 2025, including those in Florida and Michigan, and recently announced the acquisition of HomeCourt Home Care in Indiana for approximately $12.5 million. This acquisition is expected to enhance the company's personal care services in the region. Additionally, Addus is in the process of divesting its New York operations, which it has deemed no longer aligned with its growth strategy.
The company reported a decrease in accounts receivable, which fell to $144.8 million from $151.7 million at the end of 2025, attributed to improved collection processes and a reduction in days sales outstanding. As of March 31, 2026, Addus had cash reserves of $103.1 million and a total of $94.3 million in outstanding revolving loans under its credit facility, reflecting a decrease in interest expense due to lower average borrowings. The company remains in compliance with its financial covenants and anticipates continued growth driven by strategic acquisitions and operational efficiencies.
Looking ahead, Addus HomeCare is optimistic about its growth trajectory, bolstered by favorable reimbursement rate increases in key states and ongoing efforts to enhance its workforce through initiatives supported by the American Rescue Plan Act. However, the company acknowledges potential risks associated with macroeconomic conditions, including inflation and labor market challenges, which could impact its operations and financial performance in the future.
About Addus HomeCare Corp
Addus HomeCare Corporation provides in-home personal care, hospice, and home health services primarily to elderly, chronically ill, and disabled individuals, focusing on those eligible for Medicare and Medicaid. Operating across multiple U.S. states, it partners with government agencies, managed care organizations, and private payors to deliver cost-effective, coordinated care that supports consumer independence, improves health outcomes, and reduces institutionalization through a technology-enabled, outcomes-driven model.
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