Enhabit, Inc. reported its financial results for the first quarter of 2025, revealing a net service revenue of $259.9 million, a slight decrease of 1.0% from $262.4 million in the same period of 2024. The company's operating income increased to $15.9 million, up 23.3% from $12.9 million year-over-year. Net income attributable to Enhabit, Inc. surged to $17.8 million, compared to just $0.2 million in the prior year, reflecting a significant increase of 8,800%. The earnings per share for the quarter were $0.35, a notable rise from $0.01 in the previous year.
The decline in revenue was primarily driven by a 5.9% decrease in the Home Health segment, attributed to a lower average daily census and reduced unit revenue per patient day. In contrast, the Hospice segment experienced a 20.5% increase in revenue, benefiting from a 12.3% growth in average daily census and improved Medicare reimbursement rates. The overall cost of service, excluding depreciation and amortization, decreased by 3.0%, indicating improved operational efficiencies.
Enhabit has made strategic adjustments, including the closure of underperforming branches, with four Home Health and three Hospice locations closed or consolidated as of March 31, 2025. The company plans to close four additional branches by mid-2025. These decisions are part of a broader strategy to enhance operational efficiency and focus on profitable locations. The company also reported a gain of $19.3 million from the sale of its investment in TVG Holdings, which contributed to its other income for the quarter.
As of March 31, 2025, Enhabit operated 251 home health agencies and 113 hospice locations across 34 states. The company reported a total cash and cash equivalents balance of $39.5 million, up from $28.4 million at the end of 2024. The company’s Total Net Leverage Ratio improved, falling below the 4.50 times requirement, which is expected to provide operational flexibility and better pricing under its credit agreement. Looking ahead, Enhabit anticipates continued growth in its Hospice segment, supported by favorable Medicare reimbursement changes and an ongoing focus on operational efficiencies.
About Enhabit, Inc.
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