Enhabit, Inc. reported a net service revenue of $1.06 billion for the fiscal year ending December 31, 2025, reflecting a 2.4% increase from $1.03 billion in 2024. The company's profitability, however, showed a net loss of $4.6 million, a significant improvement from a loss of $156.2 million in the previous year. This turnaround was attributed to a reduction in impairment charges related to goodwill, which fell from $161.7 million in 2024 to $44.7 million in 2025. The Home Health segment generated $813.8 million, accounting for 76.8% of total revenue, while the Hospice segment contributed $246.2 million, marking a 17.2% increase from the prior year.
The company experienced a decline in its Home Health segment revenue, which decreased by 1.3% compared to 2024, primarily due to a drop in Medicare revenue as a percentage of total revenue. Conversely, the Hospice segment's growth was driven by an increase in average daily census and improved unit revenue per patient day. The average daily census for Home Health was 41,786, while the Hospice segment reported an average of 3,985 patients. Enhabit operated 249 home health and 117 hospice locations across 34 states as of year-end 2025.
Strategically, Enhabit has focused on expanding its footprint and enhancing operational efficiencies. The company has opened 54 de novo locations since 2015 and has invested over $798 million in acquisitions. In 2026, Enhabit plans to invest between $25 million and $50 million in strategic acquisitions following the lifting of restrictions in its credit agreement. The company also aims to increase its Payer Innovation contracts, which accounted for 57% of non-Medicare revenue as of December 31, 2025.
Looking ahead, Enhabit is navigating a competitive landscape marked by the increasing prevalence of Medicare Advantage plans, which now represent 23.9% of its revenue. The company anticipates that the aging U.S. population will continue to drive demand for home health and hospice services. However, it faces challenges related to rising labor costs and regulatory pressures, particularly concerning reimbursement rates from Medicare and other payers. The company is also in the process of completing a merger with Kinderhook Industries, valued at approximately $1.1 billion, which is expected to close in the second quarter of 2026, subject to regulatory approvals and stockholder consent.
About Enhabit, Inc.
Enhabit, Inc. is a leading provider of home health and hospice services in the U.S., focusing on delivering high-quality, cost-effective care in patients' homes. Its core segments include Medicare-certified home health and hospice, serving primarily older adults with chronic or terminal conditions. The company leverages technology, clinical expertise, and a disciplined operating model to improve outcomes, reduce costs, and foster industry partnerships.
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