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].