Core Insights - Addus HomeCare reported strong fourth-quarter results for 2025, with total revenue reaching $373.1 million, a 25.6% increase from $297.1 million in the prior year [4]. - The company experienced organic growth in personal care and hospice services, alongside contributions from recent acquisitions [5]. Financial Performance - Same-store revenue in hospice increased by 16% year over year, with average daily census rising to 3,885 from 3,472 [1]. - For the full year 2025, revenue was approximately $1.4 billion, up 23.2% from about $1.1 billion in 2024 [3]. - Adjusted EPS rose to $1.77 from $1.38, and adjusted EBITDA increased to $50.3 million from $37.8 million, with an adjusted EBITDA margin of 13.6% compared to 12.9% a year earlier [4]. Operational Highlights - Personal care same-store revenue grew 6.3% year over year, with same-store hours increasing by 2.4% [2]. - Home health same-store revenue declined by 7.54% year over year, but management noted benefits from coordination in overlapping markets [6]. Reimbursement and Policy Outlook - Personal care organic performance was supported by stable hiring and state rate support, including a 9.9% rate increase in Texas effective September 1, 2025 [7]. - A 3.1% increase in the 2026 Medicare hospice reimbursement rate became effective October 1, 2025 [8]. Labor Trends and Compliance - The company reported favorable hiring trends, with 101 hires per business day during the fourth quarter, increasing to 107 in early January [10]. - Addus has built a strong compliance program over the past decade, which may create opportunities as scrutiny on fraud, waste, and abuse increases [11]. Technology Initiatives - The company is rolling out Addus Connect, which has shown consistent service performance in Illinois, and is expanding into New Mexico and Texas [12]. - An internal AI committee has been formed to explore opportunities in revenue cycle automation and scheduling logistics [13]. Cash Flow and Balance Sheet - Cash flow from operations for the fourth quarter was $18.8 million, with total bank debt reduced to $124.3 million [14]. - Days sales outstanding (DSO) ended the quarter at 38.2 days, up from 35 days in the third quarter, primarily due to timing in Illinois [16]. Acquisition Strategy - The company completed three acquisitions in 2025 and is monitoring potential larger personal care assets that may come to market in mid-2026 [17].

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $373.1 million, a 25.6% increase from $297.1 million in Q4 2024 [5] - Adjusted earnings per share for Q4 2025 was $1.77, up 28.3% from $1.38 in Q4 2024 [6] - Adjusted EBITDA for Q4 2025 was $50.3 million, a 33.3% increase from $37.8 million in Q4 2024 [8] - Total revenue for 2025 was approximately $1.4 billion, a 23.2% increase from approximately $1.1 billion in 2024 [7] - Adjusted EBITDA for 2025 was $180 million, up 28.3% from $140.3 million in 2024 [8] Business Line Data and Key Metrics Changes - Personal care revenues for Q4 2025 were $284.1 million, accounting for 76.5% of total revenue [22] - Hospice care revenues were $70 million, or 18.9% of total revenue [23] - Home health revenues were $17.1 million, or 4.6% of total revenue [23] - Same-store revenue growth for personal care was 6.3% compared to Q4 2024 [11] - Hospice same-store revenue increased by 16% compared to Q4 2024 [12] Market Data and Key Metrics Changes - Texas implemented a 9.9% rate increase for personal care services effective September 1, 2025 [18] - Illinois approved a 3.9% rate increase effective January 1, 2026, expected to add approximately $17.5 million in annualized revenue [18] - Same-store hours for personal care increased by 2.4% compared to Q4 2024 [12] Company Strategy and Development Direction - The company aims to create geographic density and scale while focusing on the full continuum of home care [8] - The strategy includes pursuing acquisitions that complement organic growth and align with the company's goals [30] - The company is optimistic about the repeal of the 80/20 provision of the Medicaid Access Rule, which could positively impact the industry [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the value proposition of home-based care, which is seen as a cost-effective alternative to facility-based care [9] - Positive hiring trends were noted, with 101 hires per business day in Q4 2025, increasing to 107 in early January 2026 [10] - Management acknowledged potential challenges in home health services but is focused on driving growth through strategic hires and operational improvements [97] Other Important Information - The company ended Q4 2025 with cash on hand of approximately $81.6 million and bank debt of $124.3 million, resulting in a net leverage of under 1x adjusted EBITDA [8] - The company received approximately $7.2 million in phase three ARPA funding from New Mexico during Q4 2025 [29] Q&A Session Summary Question: Rate backdrop in states like New Mexico and Tennessee - Management indicated a potential 4% to 5% rate increase in New Mexico is awaiting the governor's signature, which could benefit the company in the latter half of the year [35] Question: Margin flow-through from New Mexico rate increase - Management noted that while there isn't a mandatory pass-through rule in New Mexico, some portion of the rate increase will likely be passed through to caregivers [41] Question: Labor market conditions for caregivers - Management reported stable hiring trends and good progress in recruitment, with no significant difficulties noted [45] Question: Acquisition pipeline and opportunities - Management is optimistic about more acquisition opportunities in 2026, focusing on deals that create density in existing markets [49] Question: Impact of the final health rule on home health care - Management expressed cautious optimism about the final rule, indicating it could provide clarity and opportunities for acquisitions in the home health space [53] Question: Same-store billable census dynamics - Management explained that while same-store billable census was down slightly, they expect positive growth in the second half of 2026 [59] Question: Technology and AI opportunities - Management acknowledged the importance of compliance and technology but did not provide specific details on future technology initiatives [99]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $373.1 million, a 25.6% increase from $297.1 million in Q4 2024 [5] - Adjusted earnings per share for Q4 2025 was $1.77, up 28.3% from $1.38 in Q4 2024 [6] - Adjusted EBITDA for Q4 2025 was $50.3 million, a 33.3% increase from $37.8 million in Q4 2024 [8] - Total revenue for 2025 was approximately $1.4 billion, a 23.2% increase from approximately $1.1 billion in 2024 [7] - Adjusted EBITDA for 2025 was $180 million, compared to $140.3 million in 2024, marking a 28.3% increase [8] Business Line Data and Key Metrics Changes - Personal Care Services revenue was $284.1 million, accounting for 76.5% of total revenue in Q4 2025 [22] - Hospice care revenue was $70 million, representing 18.9% of total revenue [23] - Home Health revenue was $17.1 million, making up 4.6% of total revenue [23] - Same-store revenue growth for Personal Care was 6.3% compared to Q4 2024 [11] - Hospice same-store revenue increased by 16% compared to Q4 2024 [12] Market Data and Key Metrics Changes - Texas and Illinois have recently increased rates for Personal Care Services, with Texas seeing a 9.9% increase effective September 1, 2025, and Illinois a 3.9% increase effective January 1, 2026 [9][18] - The average daily census for Hospice increased to 3,885 in Q4 2025, up from 3,472 in the same period last year, an increase of 11.9% [13] Company Strategy and Development Direction - The company aims to create geographic density and scale while focusing on the full continuum of Home Care [8] - The strategy includes pursuing acquisitions that complement organic growth and align with the company's goals [31] - The company is optimistic about the potential repeal of the 80/20 provision of the Medicaid Access Rule, which could positively impact the industry [10][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the value proposition of Personal Care Services and the company's ability to be a cost-effective partner for states and managed Medicaid payers [9] - The company anticipates continued growth opportunities in home-based care due to heightened awareness of its value [16] - Management noted stable hiring trends and a positive outlook for the labor market, with 101 hires per business day in Q4 2025 [10][43] Other Important Information - Cash flow from operations for Q4 2025 was $18.8 million, with cash on hand of approximately $81.6 million [8][30] - The company ended Q4 2025 with bank debt of $124.3 million, resulting in a net leverage of under 1x adjusted EBITDA [8] Q&A Session Summary Question: Rate backdrop in states like New Mexico and Tennessee - Management indicated a potential 4% to 5% rate increase in New Mexico is awaiting the governor's signature, which could benefit the company in the latter half of the year [34][35] Question: Margin flow-through from New Mexico - Management noted that while there isn't a mandatory pass-through rule in New Mexico, some portion of the rate increase will likely be passed through to caregivers [41] Question: Hiring trends and caregiver retention - Management reported stable hiring trends and good progress in hiring, with no significant difficulties noted [44] Question: Acquisition pipeline and opportunities - Management is optimistic about more acquisition opportunities in 2026, focusing on deals that create density in existing markets [47][48] Question: Impact of fraud and abuse focus on business growth - Management views the focus on fraud and abuse as an opportunity for growth, as smaller players may struggle to comply with regulations [61] Question: Update on Addus Connect app and its impact - Management reported positive momentum in service percentage due to the app, with ongoing rollout in New Mexico and Texas [64][65] Question: Home Health and Hospice bridging program - Management highlighted ongoing focus on the bridging program, with positive results expected as they continue to drive growth in key markets [88][92]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $373.1 million, a 25.6% increase from $297.1 million in Q4 2024 [4] - Adjusted earnings per share (EPS) for Q4 2025 was $1.77, up 28.3% from $1.38 in Q4 2024 [5] - Adjusted EBITDA for Q4 2025 was $50.3 million, a 33.3% increase from $37.8 million in Q4 2024 [5][24] - For the full year 2025, total revenue was approximately $1.4 billion, a 23.2% increase from approximately $1.1 billion in 2024 [5] - Adjusted EBITDA for 2025 was $180 million, compared to $140.3 million in 2024, marking a 28.3% increase [6] Business Line Data and Key Metrics Changes - Personal care segment revenue was $284.1 million, accounting for 76.5% of total revenue in Q4 2025 [21] - Hospice care revenue was $70 million, representing 18.9% of total revenue, with a 16% year-over-year organic revenue growth [18] - Home health services accounted for $17.1 million, or 4.6% of total revenue, with a 7.54% decrease in same-store revenue compared to Q4 2024 [12][21] Market Data and Key Metrics Changes - Same-store revenue growth for personal care was 6.3% compared to Q4 2024 [9] - Average daily census for hospice increased to 3,885, up 11.9% from 3,472 in Q4 2024 [11] - Hiring trends showed 101 hires per business day in Q4 2025, increasing to 107 in early January 2026 [8] Company Strategy and Development Direction - The company aims to create geographic density and scale while focusing on the full continuum of home care [6][20] - Recent acquisitions include Gentiva, Great Lakes Home Care, Helping Hands Home Care Services, and Del Cielo Home Care, enhancing market coverage [18][20] - The company plans to pursue additional acquisitions that align with its strategy and enhance organic growth [20][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the value proposition for personal care services recognized by states, despite potential Medicaid changes [7] - The company anticipates continued growth opportunities in home-based care due to heightened awareness of its value [13] - Management noted that while there are uncertainties regarding future rate increases, they remain focused on compliance and operational improvements [12][60] Other Important Information - Cash flow from operations for Q4 2025 was $18.8 million, with cash on hand of approximately $81.6 million [6][28] - The company ended Q4 2025 with bank debt of $124.3 million, maintaining a net leverage of under 1x adjusted EBITDA [6] - The company received approximately $7.2 million in phase three ARPA funding from New Mexico, with additional funds expected [27] Q&A Session Summary Question: Rate backdrop in states like New Mexico and Tennessee - Management indicated a potential 4% to 5% rate increase in New Mexico is awaiting the governor's signature, which could benefit the company in the latter half of the year [32][34] Question: Margin flow-through from New Mexico rate increase - Management noted that while there isn't a mandatory pass-through rule in New Mexico, some portion of the rate increase will likely be passed to caregivers [40] Question: Hiring trends and caregiver retention - Management reported stable hiring trends with no significant difficulties in recruitment, although some urban areas face challenges [42] Question: Acquisition pipeline and opportunities - Management expressed optimism about more acquisition opportunities becoming available, particularly larger personal care assets expected mid-year [46][47] Question: Impact of technology and AI on operations - Management is exploring AI implementation in back-office processes and scheduling logistics to enhance efficiency [100]