Core Viewpoint - Aveanna Healthcare Holdings Inc. (AVAH) is showing potential for a bullish breakout due to a recent technical indicator known as a "golden cross" [1][2]. Technical Analysis - AVAH's 50-day simple moving average has crossed above its 200-day simple moving average, indicating a bullish signal [1]. - A golden cross typically follows a downtrend, leading to a positive trend reversal and subsequent upward momentum [2]. Performance Metrics - AVAH has experienced a significant rally of 88.6% over the past four weeks, suggesting strong market interest [3]. - The company currently holds a 1 (Strong Buy) rating on the Zacks Rank, indicating favorable market conditions for potential gains [3]. Earnings Outlook - The earnings outlook for AVAH is positive, with no downward revisions in earnings estimates over the past two months, alongside four upward revisions [3]. - The Zacks Consensus Estimate for earnings has also increased, reinforcing the bullish sentiment around the stock [3][5]. Investment Consideration - Given the combination of positive earnings revisions and the technical breakout signal, AVAH is positioned for potential further gains in the near future [5].

Company Performance - Aveanna Healthcare (AVAH) has seen a significant stock increase of 88.6% over the past month, reaching a new 52-week high of $7.69 [1] - Year-to-date, Aveanna's stock has gained 63.5%, outperforming the Zacks Medical sector, which declined by 1.4%, and the Zacks Medical - Outpatient and Home Healthcare industry, which returned 9% [1] Earnings and Revenue - Aveanna has consistently exceeded earnings expectations, reporting an EPS of $0.18 against a consensus estimate of $0.04 in its last earnings report on August 7, 2025, and beating revenue estimates by 9.93% [2] - For the current fiscal year, Aveanna is projected to achieve earnings of $0.41 per share on revenues of $2.31 billion, reflecting a 600% increase in EPS and a 14.24% increase in revenues [3] - The next fiscal year forecasts earnings of $0.48 per share on revenues of $2.43 billion, indicating year-over-year changes of 15.48% and 5.07%, respectively [3] Valuation Metrics - Aveanna's current valuation metrics show a Price-to-Earnings (P/E) ratio of 18X for the current fiscal year, below the peer industry average of 20.3X, while its trailing cash flow basis P/E is 45.6X compared to the peer group's average of 17.9X [6] - The stock has a Value Score of B, with Growth and Momentum Scores both rated A, resulting in a combined VGM Score of A [6] Zacks Rank - Aveanna holds a Zacks Rank of 1 (Strong Buy), driven by rising earnings estimates, making it a favorable choice for investors [7] - The recommendation is to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, which Aveanna meets [7] Industry Comparison - The Medical - Outpatient and Home Healthcare industry is performing well, ranking in the top 18% of all industries, providing favorable conditions for both Aveanna and its peer, Encompass Health Corporation (EHC) [10] - EHC has a Zacks Rank of 2 (Buy) and has also shown strong earnings performance, beating consensus estimates by 16.67% [9]

Core Viewpoint - Aveanna Healthcare (AVAH) is experiencing significant improvements in earnings estimates, which may lead to continued stock price momentum [1][2] Estimate Revisions - The trend in estimate revisions reflects growing analyst optimism regarding Aveanna's earnings prospects, which is expected to positively impact its stock price [2] - For the current quarter, Aveanna is projected to earn $0.06 per share, marking a 200.0% increase from the previous year [6] - Over the last 30 days, the Zacks Consensus Estimate for Aveanna has surged by 850%, with three estimates moving higher and no negative revisions [6] - For the full year, the earnings estimate is $0.35 per share, representing a 483.3% increase from the prior year [7] - The consensus estimate for the current year has increased by 195.35% during this period [8] Zacks Rank - Aveanna has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, indicating strong potential for stock performance [9] - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks generating an average annual return of +25% since 2008 [3] Stock Performance - Aveanna's stock has gained 80.9% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [10]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify stocks with momentum by focusing on key metrics [2] Group 2: Aveanna Healthcare (AVAH) Analysis - Aveanna Healthcare currently holds a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [3][4] - Over the past week, AVAH shares increased by 15.31%, significantly outperforming the Zacks Medical - Outpatient and Home Healthcare industry, which rose by 1.01% [6] - In a longer timeframe, AVAH shares have risen by 33.4% over the past quarter and 42.27% over the past year, while the S&P 500 only increased by 7.87% and 15.7%, respectively [7] Group 3: Trading Volume and Earnings Outlook - The average 20-day trading volume for AVAH is 1,672,211 shares, indicating a bullish sign with rising stock prices [8] - Over the past two months, three earnings estimates for AVAH have increased, raising the consensus estimate from $0.22 to $0.35 [10] - The positive earnings revisions suggest a promising outlook for AVAH, reinforcing its status as a 1 (Strong Buy) stock with a Momentum Score of A [12]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum if their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Aveanna Healthcare (AVAH) Analysis - Aveanna Healthcare (AVAH) has shown significant price movement, with a 74.7% increase over the past four weeks, indicating strong investor interest [4] - Over the past 12 weeks, AVAH's stock has gained 32.3%, demonstrating its ability to maintain momentum over a longer period [5] - AVAH has a beta of 1.95, suggesting it moves 95% more than the market, indicating fast-paced momentum [5] - The stock has a Momentum Score of B, suggesting it is an opportune time for investment to capitalize on its momentum [6] - AVAH has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - The stock is currently trading at a Price-to-Sales ratio of 0.68, indicating it is undervalued, as investors pay only 68 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides AVAH, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Company Overview - Aveanna Healthcare Holdings Inc. is headquartered in Atlanta, Georgia and operates in 38 states, providing a wide range of pediatric and adult healthcare services [2] - Services include nursing, rehabilitation, occupational nursing in schools, therapy services, day treatment centers for medically fragile and chronically ill patients, home health and hospice services, and delivery of enteral nutrition [2] - The company also offers case management services to coordinate care among insurers, physicians, hospitals, and other healthcare providers, as well as respite healthcare services for temporary caregiver relief [2] Upcoming Events - The management team of Aveanna will attend the Deutsche Bank Healthcare Summit in New York on September 10, 2025, and will host one-on-one investor meetings on that day [1]

Company Performance - Akero Therapeutics, Inc. (AKRO) has shown a year-to-date performance increase of approximately 73.5%, significantly outperforming the average loss of 7.5% in the Medical sector [4] - The Zacks Consensus Estimate for AKRO's full-year earnings has increased by 1.4% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3] Industry Comparison - Akero Therapeutics, Inc. is part of the Medical - Biomedical and Genetics industry, which consists of 489 companies and currently ranks 141 in the Zacks Industry Rank. This industry has experienced a slight decline of about 0.9% year-to-date, further highlighting AKRO's superior performance [6] - In contrast, Aveanna Healthcare (AVAH), another outperforming stock in the Medical sector, belongs to the Medical - Outpatient and Home Healthcare industry, which has seen a year-to-date increase of 3.8% and ranks 40 [7]

Core Viewpoint - Aveanna Healthcare (AVAH) has experienced significant stock performance, with a 37.4% increase over the past month and a new 52-week high of $6.2, outperforming the Zacks Medical sector and the Zacks Medical - Outpatient and Home Healthcare industry [1][2]. Performance Metrics - Aveanna has consistently exceeded earnings expectations, reporting an EPS of $0.18 against a consensus estimate of $0.04 in its last earnings report, and beating revenue estimates by 9.93% [2]. - Year-to-date, Aveanna's stock has risen by 27.1%, contrasting with a decline of 8.1% in the Zacks Medical sector [1]. Valuation Metrics - The stock currently trades at 26.4 times the current fiscal year EPS estimates, which is above the peer industry average of 19.6 times [5]. - On a trailing cash flow basis, Aveanna trades at 35.4 times, compared to the peer group's average of 15.8 times, indicating a premium valuation [5]. Style Scores - Aveanna holds a Value Score of B, a Growth Score of B, and a Momentum Score of F, resulting in a combined VGM Score of B [5]. - The Zacks Rank for Aveanna is 1 (Strong Buy), driven by rising earnings estimates, suggesting potential for further gains [6].

Financial Data and Key Metrics Changes - Revenue for Q2 was approximately $590 million, representing a 16.8% increase over the prior year period [5][22] - Adjusted EBITDA for Q2 was $88.3 million, reflecting a 93.6% increase compared to the prior year, primarily due to improved rate environment and cost savings initiatives [5][22] - Consolidated gross margin was $210.8 million or 35.8% [22] Business Line Data and Key Metrics Changes - Private Duty Services revenue was approximately $486 million, a 19.2% increase, driven by a volume increase of 6.9% [23] - Home Health and Hospice revenue for the quarter was approximately $60.1 million, a 10% increase, with 74.5% of admissions being episodic [26] - Medical Solutions revenue was $43.4 million, a 2.2% increase, with gross margins at approximately 45.6% [28] Market Data and Key Metrics Changes - Preferred payer agreements accounted for approximately 55% of total private duty services MCO volumes [11] - The episodic payer mix was 74.5%, with total episodic volume growth of 6.9% compared to the prior year [12] Company Strategy and Development Direction - The company is focusing on enhancing partnerships with government partners and preferred payers to create additional capacity and growth [19] - The strategic plan includes modernizing the Medical Solutions business and managing capital structure while producing positive free cash flow [19] - The company aims to increase the number of private duty service preferred payer agreements from 22 to 30 by the end of 2025 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for home and community-based care, indicating that the industry does not have a demand problem [6] - The company anticipates 2025 revenue to exceed $2.3 billion and adjusted EBITDA to exceed $270 million, reflecting a strong outlook despite regulatory challenges [20][34] - Management highlighted the importance of aligning caregiver capacity with preferred payers to improve clinical and financial outcomes [29] Other Important Information - The company has achieved 10 rate enhancements year to date in the private duty services segment [10] - The integration of the Thrive Skilled Pediatrics acquisition is on target and expected to be accretive to 2025 results [15] Q&A Session Summary Question: Can you walk us through the $53 million increase in guidance for EBITDA? - Management indicated that the increase is based on strong rate outlook and improved volume in the PDS business, with good visibility into 2025 [38][40] Question: Are you seeing an increase in the number of caregivers due to wage rate increases? - Management confirmed that there has been a continued uplift in caregiver hiring, with 11 million hours recorded in Q2 for the PDS segment [53][55] Question: How do you characterize HCBS positioning amid broader budgetary headwinds? - Management noted that while rate enhancements have been more muted, the value of home care is recognized by state governors, and they continue to advocate for necessary rate increases [72][74] Question: What is the potential impact of proposed cuts to home health on episodic rates? - Management expressed disappointment in the proposed cuts, emphasizing that such policies are harmful to seniors and rural healthcare, while affirming that Aviana is well-positioned regardless of the outcome [78][82] Question: How much demand remains for getting patients out of hospitals? - Management indicated that there is still significant demand, with many preferred payers seeking more coverage and services from Aviana [88][90]

Financial Performance Overview [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Aveanna Healthcare achieved significant Q2 2025 growth, with revenue increasing **16.8%** to **$589.6 million** and Adjusted EBITDA rising **93.6%** to **$88.4 million** Q2 2025 Financial Performance vs. Q2 2024 | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $589.6 | $505.0 | +$84.6 | +16.8% | | **Gross Margin** | $210.8 | $158.3 | +$52.5 | +33.2% | | **Net Income** | $27.0 | $13.9 | +$13.1 | +94.3% | | **Adjusted EBITDA** | $88.4 | $45.6 | +$42.7 | +93.6% | | **Net Income per Diluted Share** | $0.13 | $0.07 | +$0.06 | +85.7% | | **Adjusted Net Income per Diluted Share** | $0.18 | $0.01 | +$0.17 | +1700% | - The overall revenue increase was driven by growth across all segments: a **$78.2 million** increase in Private Duty Services (PDS), a **$5.5 million** increase in Home Health and Hospice (HHH), and a **$1.0 million** increase in Medical Solutions (MS)[4](index=4&type=chunk) [Six-Month 2025 Financial Highlights](index=3&type=section&id=Six-Month%202025%20Financial%20Highlights) For H1 2025, revenue grew **15.4%** to **$1,148.8 million**, with Adjusted EBITDA rising **93.4%** to **$155.7 million**, reflecting sustained positive momentum Six-Month 2025 Financial Performance vs. Six-Month 2024 | Metric | H1 2025 (in millions) | H1 2024 (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $1,148.8 | $995.6 | +$153.2 | +15.4% | | **Gross Margin** | $394.4 | $304.1 | +$90.2 | +29.7% | | **Net Income** | $32.2 | $2.7 | +$29.5 | +1088% | | **Adjusted EBITDA** | $155.7 | $80.5 | +$75.2 | +93.4% | | **Net Income per Diluted Share** | $0.16 | $0.01 | +$0.15 | +1500% | | **Adjusted Net Income per Diluted Share** | $0.28 | $(0.02) | +$0.30 | N/A | - Revenue growth for the six-month period was primarily driven by a **$143.2 million** increase in the PDS segment, complemented by increases of **$7.6 million** in HHH and **$2.4 million** in MS[10](index=10&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributed strong Q2 results to Strategic Transformation and operational excellence, with the Thrive acquisition expanding markets and leading to raised full-year guidance - CEO Jeff Shaner stated that the second quarter results reflect continued positive momentum in all three operating divisions as the company navigates the third year of its Strategic Transformation[3](index=3&type=chunk) - The acquisition of Thrive Skilled Pediatric Care is cited as an illustration of the company's commitment to investing in current markets and expanding into new ones to facilitate core service growth[3](index=3&type=chunk) - CFO Matt Buckhalter credited the improved results to the team's relentless focus on operational excellence, disciplined execution, and delivering strong clinical outcomes[15](index=15&type=chunk) Full Year 2025 Guidance [Revised Outlook](index=3&type=section&id=Revised%20Outlook) Reflecting strong performance and positive business momentum, Aveanna has raised its full-year 2025 guidance, now expecting revenue greater than **$2.3 billion** and Adjusted EBITDA exceeding **$270 million** Updated Full Year 2025 Guidance | Metric | New Guidance (FY 2025) | Previous Guidance (FY 2025) | | :--- | :--- | :--- | | **Revenue** | > $2.3 billion | > $2.15 billion | | **Adjusted EBITDA** | > $270 million | > $207 million | - The company is not providing guidance on net income due to the volatility of certain required inputs, such as future fair value adjustments for interest rate swaps and caps[16](index=16&type=chunk) Financial Condition [Liquidity and Capital Resources](index=3&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 28, 2025, Aveanna maintained a solid liquidity position with **$100.7 million** in cash and significant borrowing capacity, with total bank debt at approximately **$1.47 billion** and interest rate exposure substantially hedged Liquidity Position as of June 28, 2025 | Item | Amount (in millions) | | :--- | :--- | | Cash | $100.7 | | Securitization Facility Capacity | $106.3 | | Revolver Capacity | ~$147.0 | Total Indebtedness as of June 28, 2025 | Instrument | Amount (in millions) | | :--- | :--- | | 2021 Extended Term Loan | $886.0 | | Second Lien Term Loan | $415.0 | | Securitization Facility | $168.8 | | **Total Indebtedness** | **$1,469.7** | - The company's interest rate exposure is managed with **$520.0 million** in interest rate swaps and **$880.0 million** in interest rate caps[18](index=18&type=chunk) [Cash Flow Summary](index=3&type=section&id=Cash%20Flow%20Summary) For the first six months of 2025, the company generated **$42.9 million** in net cash from operating activities, a significant improvement from the **$10.2 million** used in the same period last year, with free cash flow positive at **$36.9 million** Cash Flow for the Six-Month Period Ended June 28, 2025 | Cash Flow Item | H1 2025 (in thousands) | H1 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $42,937 | $(10,163) | | Net cash used in investing activities | $(18,330) | $(2,577) | | Net cash (used in) provided by financing activities | $(8,157) | $16,459 | - Free cash flow for the first six months of 2025 was **$36.9 million**[18](index=18&type=chunk)[50](index=50&type=chunk) Detailed Financial Results and Reconciliations [Consolidated Results of Operations](index=10&type=section&id=Consolidated%20Results%20of%20Operations) The consolidated income statement for Q2 and H1 2025 shows strong top-line revenue growth, improved gross margins, and a significant increase in operating and net income, with Q2 2025 operating income more than doubling to **$80.0 million** Consolidated Income Statement Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $589,553 | $504,958 | $1,148,777 | $995,611 | | **Operating Income** | $80,034 | $37,126 | $131,835 | $59,992 | | **Income before taxes** | $44,138 | $3,979 | $54,286 | $5,469 | | **Net Income** | $27,025 | $13,906 | $32,218 | $2,734 | [Segment Performance](index=12&type=section&id=Segment%20Performance) All three business segments contributed to growth, with Private Duty Services (PDS) driving a **19.2%** revenue increase in Q2, Home Health & Hospice (HHH) growing **10.0%**, and Medical Solutions (MS) seeing a **2.2%** revenue increase [Private Duty Services (PDS) Segment](index=12&type=section&id=Private%20Duty%20Services%20(PDS)%20Segment) The PDS segment delivered strong Q2 2025 results, with revenue increasing **19.2%** to **$486.0 million**, driven by a **6.9%** increase in hours and a **12.3%** increase in revenue rate, expanding gross margin percentage to **32.5%** PDS Segment Performance - Q2 2025 vs Q2 2024 | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Revenue | $486.0 | $407.9 | +19.2% | | Gross Margin | $157.9 | $110.9 | +42.5% | | Gross Margin % | 32.5% | 27.2% | +5.3 pts | | Hours (thousands) | 11,053 | 10,336 | +6.9% | [Home Health & Hospice (HHH) Segment](index=12&type=section&id=Home%20Health%20%26%20Hospice%20(HHH)%20Segment) The HHH segment reported a **10.0%** increase in Q2 2025 revenue to **$60.1 million**, supported by a **4.3%** rise in total admissions and a **6.9%** increase in total episodes, with gross margin improving to **55.0%** HHH Segment Performance - Q2 2025 vs Q2 2024 | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Revenue | $60.1 | $54.6 | +10.0% | | Gross Margin | $33.1 | $29.4 | +12.5% | | Gross Margin % | 55.0% | 53.8% | +1.2 pts | | Home health total admissions (thousands) | 9.8 | 9.4 | +4.3% | [Medical Solutions (MS) Segment](index=12&type=section&id=Medical%20Solutions%20(MS)%20Segment) The MS segment's revenue grew by **2.2%** to **$43.4 million** in Q2 2025, achieving a **10.0%** increase in gross margin despite a **3.2%** decrease in unique patients served, with the margin percentage expanding to **45.6%** MS Segment Performance - Q2 2025 vs Q2 2024 | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Revenue | $43.4 | $42.5 | +2.2% | | Gross Margin | $19.8 | $18.0 | +10.0% | | Gross Margin % | 45.6% | 42.4% | +3.2 pts | | Unique patients served (thousands) | 91 | 94 | -3.2% | [Non-GAAP Financial Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) The company utilizes several non-GAAP measures, including EBITDA, Adjusted EBITDA, Field Contribution, Adjusted Net Income, and Free Cash Flow, to evaluate financial performance, with detailed reconciliations provided to bridge these figures to comparable GAAP measures - The company uses non-GAAP measures like EBITDA, Adjusted EBITDA, Field contribution, Adjusted net income, and Free cash flow to supplement its GAAP results and highlight trends in core operating performance[17](index=17&type=chunk)[21](index=21&type=chunk)[25](index=25&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA](index=14&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) For Q2 2025, Net Income of **$27.0 million** was reconciled to an Adjusted EBITDA of **$88.4 million**, while for the six-month period, Net Income of **$32.2 million** was reconciled to an Adjusted EBITDA of **$155.7 million**, with adjustments primarily including interest, taxes, depreciation, non-cash share-based compensation, and acquisition-related costs Net Income to Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $27,025 | $13,906 | $32,218 | $2,734 | | Interest expense, net | $35,874 | $39,518 | $72,077 | $79,063 | | Income tax expense (benefit) | $17,113 | $(9,927) | $22,068 | $2,735 | | Depreciation and amortization | $2,617 | $2,833 | $5,211 | $5,745 | | **EBITDA** | $82,629 | $46,330 | $131,574 | $90,277 | | Total Adjustments | $5,745 | $(683) | $24,153 | $(9,747) | | **Adjusted EBITDA** | **$88,374** | **$45,647** | **$155,727** | **$80,530** | [Reconciliation of Net Income to Adjusted Net Income (Loss)](index=15&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income%20(Loss)) Adjusted Net Income for Q2 2025 was **$37.4 million**, or **$0.18** per diluted share, compared to **$2.5 million**, or **$0.01** per share, in the prior year, with H1 Adjusted Net Income at **$58.8 million**, or **$0.28** per share, a significant improvement from an adjusted net loss of **$3.2 million**, or **$(0.02)** per share, in H1 2024 Net Income to Adjusted Net Income Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $27,025 | $13,906 | $32,218 | $2,734 | | Total Adjustments (pre-tax) | $22,858 | $(10,610) | $46,221 | $(7,012) | | Income tax expense on adjusted income | $(12,471) | $(824) | $(19,610) | $1,070 | | **Adjusted Net Income (Loss)** | **$37,412** | **$2,472** | **$58,829** | **$(3,208)** | [Reconciliation of Gross Margin to Field Contribution](index=14&type=section&id=Reconciliation%20of%20Gross%20Margin%20to%20Field%20Contribution) Field Contribution, a non-GAAP measure, increased by **71.7%** to **$120.7 million** in Q2 2025, with the Field Contribution Margin expanding significantly to **20.5%** from **13.9%** in the prior-year quarter Gross Margin to Field Contribution Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Gross Margin** | $210,800 | $158,267 | $394,358 | $304,121 | | Branch and regional admin expenses | $(90,069) | $(87,972) | $(181,456) | $(175,886) | | **Field Contribution** | **$120,731** | **$70,295** | **$212,902** | **$128,235** | | **Field Contribution Margin** | 20.5% | 13.9% | 18.5% | 12.9% | [Reconciliation of Operating Cash Flow to Free Cash Flow](index=17&type=section&id=Reconciliation%20of%20Operating%20Cash%20Flow%20to%20Free%20Cash%20Flow) For the six-month period ended June 28, 2025, net cash provided by operations of **$42.9 million** was reconciled to a Free Cash Flow of **$36.9 million** after accounting for capital expenditures and principal payments on debt Operating Cash Flow to Free Cash Flow (H1 2025, in thousands) | Item | Amount | | :--- | :--- | | Net cash provided by operations | $42,937 | | Purchases of property and equipment, and software | $(3,477) | | Principal payments of term loans | $(4,600) | | Principal payments of notes payable and financing lease obligations | $(4,086) | | Settlements with swap counterparties | $6,144 | | **Free cash flow** | **$36,918** | Other Information [Conference Call Information](index=7&type=section&id=Conference%20Call%20Information) Aveanna will host a conference call on Thursday, August 7, 2025, at 10:00 a.m. Eastern Time to discuss the second quarter financial results, with details provided for accessing the live call, webcast, and replay - A conference call to discuss Q2 results is scheduled for August 7, 2025, at 10:00 a.m. Eastern Time[31](index=31&type=chunk) [About Aveanna Healthcare](index=9&type=section&id=About%20Aveanna%20Healthcare) Headquartered in Atlanta, Georgia, Aveanna Healthcare operates in 38 states, providing a wide range of pediatric and adult healthcare services focused on high-quality, lower-cost alternatives to prolonged hospitalization - Aveanna Healthcare is a diversified home care platform with locations in 38 states, offering a broad range of pediatric and adult healthcare services[35](index=35&type=chunk)