Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-34504 ADDUS HOMECARE CORPORATION Delaware 20-5340172 (State or other jurisdiction of incorporation or organization) (I.R. ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $337.7 million, a 20.3% increase from $280.7 million in Q1 2024 [6] - Adjusted earnings per share rose to $1.42, up 17.4% from $1.21 in Q1 2024 [6] - Adjusted EBITDA increased to $40.6 million, a 25.1% rise from $32.4 million in Q1 2024 [6] - Gross margin percentage improved to 31.9% from 31.4% in Q1 2024 [21] - Adjusted EBITDA margin was 12%, compared to 11.6% in Q1 2024 [22] Business Line Data and Key Metrics Changes - Personal Care segment revenues were $258.3 million, accounting for 76.5% of total revenue, with a same-store revenue growth of 7.4% [20] - Hospice segment revenues were $61.4 million, representing 18.2% of total revenue, with same-store revenue growth of 9.9% [20] - Home Health segment revenues were $18 million, making up 5.3% of total revenue, with a same-store revenue growth of 1.3% [20] Market Data and Key Metrics Changes - Personal Care hiring reached 79 hires per day, an increase from the previous year [7] - Average daily census for hospice increased to 3,515, up 4.6% from 3,359 in Q1 2024 [11] - Same-store hours for Personal Care increased by 2% compared to Q1 2024 [10] Company Strategy and Development Direction - The company aims for a minimum annual revenue growth of 10%, focusing on acquisitions that complement organic growth [13] - The strategy includes expanding personal care services in Texas and evaluating smaller acquisition opportunities [14] - The company is committed to maintaining a conservative approach to valuation and due diligence in acquisitions [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued demand for home-based care services, which are seen as cost-effective and safe [15] - The company anticipates stable gross margins and consistent cash flow conversion for the full year 2025 [22][24] - Management noted that the clinical hiring environment remains challenging but is improving overall [8][66] Other Important Information - The company utilized approximately $2.5 million in ARPA funding during Q1 2025, with $8.8 million remaining [25] - As of March 31, 2025, the company had cash on hand of approximately $97 million and reduced bank debt by $20 million [6][25] Q&A Session Summary Question: Commentary on hospice cap limitations - Management indicated that cap limitations have not been material, emphasizing a balanced referral mix [28][30] Question: Growth expectations for personal care services - Management acknowledged weather-related impacts in January but expects growth in hours to remain in the 2% to 2.5% range [38] Question: Hospice revenue growth expectations - Management anticipates hospice revenue growth in the 5% to 7% range, likely at the higher end [40] Question: Margin expansion expectations - Management expects 40 to 50 basis points of margin expansion from Q1 to Q2, consistent with historical patterns [46] Question: Impact of ACA expansion rollback - Management stated that potential changes to ACA expansion would likely have no direct impact on the company [50][52] Question: Same-store revenue growth components - Management attributed strong same-store revenue growth to improved scheduling and caregiver assignment practices [56] Question: Industry-wide workforce retention improvements - Management noted improvements in workforce retention across the industry, particularly in personal care [66] Question: Updates on Gentiva's performance - Management reported that Gentiva's bottom line performance has exceeded expectations, while top-line growth has been slightly lighter [76] Question: State budget and rate increase outlook - Management expressed confidence in state budgets and is closely monitoring potential rate increases, particularly in Texas [79]

Core Insights - Addus HomeCare (ADUS) reported revenue of $337.71 million for the quarter ended March 2025, reflecting a year-over-year increase of 20.3% [1] - The earnings per share (EPS) for the quarter was $1.42, up from $1.21 in the same quarter last year, with an EPS surprise of +6.77% compared to the consensus estimate of $1.33 [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $340.01 million, resulting in a revenue surprise of -0.68% [1] Revenue Breakdown - Personal care revenue was $258.29 million, which is a 24.2% increase year-over-year, but below the average estimate of $261.89 million [4] - Home Health revenue reached $17.99 million, exceeding the average estimate of $17.66 million, with a year-over-year growth of 6.6% [4] - Hospice revenue amounted to $61.44 million, surpassing the average estimate of $59.79 million, and showing a year-over-year increase of 10% [4] Stock Performance - Over the past month, Addus HomeCare shares have returned +4.7%, outperforming the Zacks S&P 500 composite, which saw a +0.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Addus HomeCare (ADUS) reported quarterly earnings of $1.42 per share, exceeding the Zacks Consensus Estimate of $1.33 per share, and up from $1.21 per share a year ago [1][2] - The company posted revenues of $337.71 million for the quarter, which was below the Zacks Consensus Estimate by 0.68%, but an increase from $280.75 million year-over-year [3] - Addus HomeCare has surpassed consensus EPS estimates three times in the last four quarters, while revenue estimates have also been exceeded three times [2][3] Earnings Performance - The earnings surprise for the recent quarter was 6.77%, while the previous quarter's earnings matched expectations with no surprise [2] - The stock has underperformed the market, losing approximately 16.2% year-to-date compared to the S&P 500's decline of 3.3% [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.49, with expected revenues of $348.17 million, and for the current fiscal year, the EPS estimate is $6.03 on revenues of $1.4 billion [8] - The estimate revisions trend for Addus HomeCare is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [7] Industry Context - The Medical - Outpatient and Home Healthcare industry, to which Addus HomeCare belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Financial Performance - Net service revenues for Q1 2025 were $337.7 million, a 20.3% increase from $280.7 million in Q1 2024[4] - Net income for Q1 2025 was $21.2 million, or $1.16 per diluted share, compared to $15.8 million, or $0.97 per diluted share in Q1 2024[4] - Adjusted EBITDA increased 25.1% to $40.6 million in Q1 2025 from $32.4 million in Q1 2024[4] - Total revenue for the three months ended March 31, 2025, was $337.7 million, a 20.3% increase from $280.7 million in the same period of 2024[22] - Adjusted EBITDA for the three months ended March 31, 2025, was $40.6 million, up from $32.4 million, marking a 25.2% increase[27] - Adjusted net income increased to $26.0 million, compared to $19.8 million in the same period last year, a growth of 31.4%[27] Segment Performance - The personal care segment, accounting for 76.5% of total revenue, saw a 7.4% organic revenue increase year-over-year[5] - Personal Care segment revenue increased to $258.3 million from $208.0 million, representing a 24.2% growth year-over-year[22] - The hospice care segment, which made up 18.2% of total revenue, experienced a 9.9% organic revenue growth compared to the previous year[6] - Hospice segment revenue rose to $61.4 million, up 9.3% from $55.9 million in the prior year[22] - Organic revenue growth for the Personal Care segment was 7.4%, down from 9.3% in the previous year[24] Operational Metrics - Cash flow from operations for Q1 2025 was $18.9 million, including $2.5 million in ARPA funds utilization[8] - Average billable census total increased to 50,478, compared to 37,715 in the previous year, reflecting a significant growth due to acquisitions[24] - Revenue per billable hour decreased to $25.32 from $27.35, indicating a 7.4% decline[24] - Medicare accounted for 69.9% of Home Health revenues, slightly up from 69.1% in the previous year[24] Assets and Liquidity - Cash and liquidity as of March 31, 2025, included $97.0 million in cash and $203.0 million in bank debt, with $632.9 million available under the revolving credit facility[8] - Total assets increased to $1.407 billion as of March 31, 2025, compared to $1.014 billion in the previous year[20] Strategic Initiatives - The company aims to pursue additional acquisition opportunities in 2025 to expand its market coverage and service offerings[9] - Addus HomeCare currently serves approximately 62,000 consumers across 260 locations in 23 states[15] - The company served 23 states and expanded locations to 199, up from 153 in the prior year[24]

Addus HomeCare (ADUS) shares soared 4.9% in the last trading session to close at $101. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.7% gain over the past four weeks.The upside can be attributed to relief-rally across global markets following the announcement of a 90-day pause on tariff hike by the United States.This provider of home-based personal care, nursing and rehabilitative therapy services is expected to post quarterl ...

Addus HomeCare (ADUS) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a cha ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental ...

Group 1 - Investors in Addus HomeCare Corporation (ADUS) should monitor the stock due to significant activity in the options market, particularly the Apr 17, 2025 $60.00 Put which has high implied volatility [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Addus HomeCare's stock price, potentially due to an upcoming event [2] - Addus HomeCare currently holds a Zacks Rank 2 (Buy) in the Medical - Outpatient and Home Healthcare industry, which is in the top 21% of the Zacks Industry Rank [3] Group 2 - Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while one analyst has lowered the estimate, resulting in a decrease in the Zacks Consensus Estimate from $1.35 to $1.34 per share [3] - The high implied volatility may indicate a trading opportunity, as options traders often seek to sell premium on options with high implied volatility, hoping the stock does not move as much as expected by expiration [4]

Financial Performance - For the year ended December 31, 2024, total net service revenue increased to $1,154,599,000 from $1,058,651,000 in 2023, representing a growth of approximately 9.1%[22] - Net income for 2024 was $73,598,000, compared to $62,516,000 in 2023, marking a year-over-year increase of approximately 17.5%[22] - Adjusted EBITDA for 2024 was $140,290,000, up 15.9% from $121,020,000 in 2023[214] - Total assets increased to $1,412,634,000 in 2024, up from $1,024,426,000 in 2023, reflecting a growth of 37.9%[214] Revenue Sources - For the year ended December 31, 2024, approximately 61.8% of net service revenues were derived from state and local governmental agencies, primarily through Medicaid state programs, and 22.2% from Medicare[136] - The personal care segment generated $856,581,000 in revenue for 2024, up from $794,718,000 in 2023, reflecting an increase of about 7.8%[22] - Managed care revenues accounted for 34.8% of total revenue in 2024, compared to 36.0% in 2022[212] - The company derived approximately 21.0% and 20.9% of its revenue from the Illinois Department on Aging programs for the years ended December 31, 2024 and 2023, respectively[125] Workforce and Employee Engagement - As of December 31, 2024, the total workforce consists of 49,703 employees, including 5,548 full-time caregivers and 43,517 part-time caregivers[69] - Approximately 34.8% of total employees, or 17,283 individuals, are represented by labor unions, with strong relationships maintained through collective bargaining agreements[71] - The annual employee engagement survey indicated an 80% satisfaction rating for work-life balance among employees[70] - Addus has implemented various employee development programs, including Ignite and Emerge, aimed at leadership development and skill enhancement[74] Growth Strategy and Market Position - The company plans to continue driving organic growth through enhanced sales and marketing capabilities, technology investments, and recruiting efforts[31] - The company is strategically expanding its service offerings to include hospice and home health, increasing its value to managed care partners[32] - The company is well-positioned to capitalize on industry consolidation trends, leveraging its reputation and strong payor relationships[25] - The company expects to derive a significant portion of its revenues from Texas going forward as a result of the Gentiva Acquisition[124] Regulatory Environment - The personal care services industry is subject to increasing regulation, which may impact operational requirements and market entry for new providers[26] - The company is subject to extensive federal and state regulations, which may impact service offerings and operational costs[85] - The federal government and many states are implementing strategies to reduce Medicaid expenditures, impacting reimbursement rates and coverage[58] - The company is required to offer a minimum level of health coverage for 95% of full-time employees in 2024 or face annual penalties[165] Challenges and Risks - Economic conditions in the U.S. have led to increased competition for caregivers and skilled healthcare staff, impacting the company's ability to attract and retain employees[117] - Labor costs represent the most significant component of the company's total expenditures, and increases in labor costs could significantly harm its business[129] - The company faces a highly competitive environment with various service providers, which may limit its ability to attract referrals and increase market share[151] - The company may face challenges in pursuing acquisitions or expanding into new regions without obtaining additional capital or lender consent[115] Technology and Cybersecurity - The company utilizes the Qlik Business Intelligence platform for operational performance analysis, integrating personal care and hospice segments to measure performance against budget[83] - Cybersecurity threats are increasing, with the company regularly targeted by attempted attacks, which could lead to data breaches and operational disruptions[185] - The company has invested in security measures and protocols to protect sensitive information, but risks remain due to third-party service providers[184] - The company relies on external service providers for critical information systems, increasing vulnerability to operational disruptions[176] Future Outlook - The company plans for significant growth through service expansion in existing markets and potential entry into new markets, which may require additional qualified personnel and resources[111] - The demand for home care services is expected to grow due to the aging U.S. population and a preference for home-based care over institutional settings[24] - The transition to managed care plans for Medicaid enrollees may increase competition for contracts and could negatively affect revenue growth rates and cash flow[149] - The company anticipates an increase in legal challenges to healthcare regulations following recent U.S. Supreme Court decisions[165]