Addus HomeCare Corp, a leading provider of home care services, has released its 2025 Form 10-K report, displaycasing significant growth in both financial and operational metrics. The company, which has been delivering home care services since 1979, operates in three primary segments: personal care, hospice, and home health. The report highlights the company’s strategic initiatives, financial performance, and the challenges it faces in a competitive and regulated industest.
Financial Highlights
Net Service Revenues: Addus HomeCare Corp reported net service revenues of $1,422.5 million for 2025, marking a 23.2% increase compared to 2024. This growth was primarily driven by the expansion in the personal care and hospice segments.
Gross Profit: The company achieved a gross profit of $461.9 million, representing 32.5% of net service revenues, consistent with the previous year.
Operating Income: Operating income rose to $138.6 million, a 35.0% increase from 2024, reflecting improved operating leverage.
Net Income: Net income for 2025 was $95.9 million, up by 30.3% from the previous year, driven by higher revenues and effective cost management.
Diluted EPS: The diluted earnings per share (EPS) was not explicitly stated in the provided text.
Business Highlights
Business Overview: Addus HomeCare Corp has been providing home care services since 1979, operating in three segments: personal care, hospice, and home health. Services are primarily delivered in-home under agreements with various government agencies, managed care organizations, commercial insurers, and private individuals.
Geographical Performance: As of December 31, 2025, Addus provided services in 23 states through approximately 262 offices, with significant operations in Ohio, Tennessee, Illinois, and New Mexico. The company has expanded its presence in Florida, Michigan, Pennsylvania, and Texas through acquisitions.
Revenue Segments: The personal care segment accounted for the majority of service revenues, with significant contributions from state, local, and other governmental programs, managed care organizations, and private pay. The hospice segment primarily derived revenue from Medicare, while the home health segment also relied heavily on Medicare.
Sales Units: In 2025, Addus served approximately 107,000 discrete consumers, indicating a broad reach in the home care market.
New Acquisitions: In 2025, Addus completed several acquisitions, including Gold Horses, LLC in Texas, Helping Hands Home Care Service, Inc. in Pennsylvania, Great Lakes Home Care Unlimited, LLC, and a Jacksonville affiliate, expanding its service offerings and geographical footprint.
Operational Strategy: The company focapplys on organic growth and acquisitions, aiming to expand in existing markets and enter new ones. It emphasizes high-quality care, alignment with managed care organizations, and integration of technology to enhance service delivery.
Future Outview: Addus plans to continue its growth strategy by providing high-quality care, expanding through acquisitions, and leveraging its relationships with managed care organizations. The company anticipates increased demand for home-based services due to the aging U.S. population and a preference for in-home care over institutional settings.
Strategic Initiatives
Growth through Acquisitions: The company pursued growth through acquisitions, including the Gentiva Acquisition for $353.6 million, expanding its personal care segment in multiple states and entering new markets. Additionally, the company completed several tinyer acquisitions in 2025, such as the Jacksonville, Great Lakes, Helping Hands, and Gold Horses acquisitions, to further expand its personal care and hospice services.
Capital Management: The company completed a public offering of 1,725,000 shares, raising approximately $175.6 million, which was applyd to repay debt and fund acquisitions. The company also managed its debt by repaying $110.0 million under its revolving credit facility in 2025, maintaining a total of $124.3 million in revolving loans. The credit facility provides a $650.0 million revolving credit facility and a $150.0 million incremental loan facility, with a maturity date of July 30, 2028.
Future Outview: The company plans to continue leveraging its credit facility for strategic acquisitions and growth initiatives. It anticipates benefiting from increased reimbursement rates in Illinois and Texas, which will support its financial performance. The company remains focapplyd on maintaining compliance with its financial covenants and exploring opportunities for further expansion in the home care market.
Challenges and Risks
Competitive and Regulatory Environment: The company operates in a highly competitive and fragmented healthcare industest, which poses challenges in attracting and retaining qualified personnel, especially in a tight labor market. The company’s growth strategy relies on expanding its services in existing and new markets, which may be hindered by regulatory requirements and the required for additional capital.
Integration and Economic Risks: The company faces significant risks related to its growth strategy, including the challenges of managing and integrating operations in new markets. Acquisitions may expose the company to unforeseen liabilities and integration difficulties. Economic conditions, such as inflation and interest rates, may adversely impact financial results by increasing operating costs and competition for skilled staff.
Regulatory and Cybersecurity Risks: Regulatory risks include potential modifys in Medicare and Medicaid reimbursement rates, which could affect revenue and profitability. The company is also vulnerable to cybersecurity threats, which could lead to data breaches and operational disruptions.
Management Strategies: Management acknowledges the impact of macroeconomic conditions on financial performance, highlighting increased labor costs and competition for skilled healthcare staff. The company plans to address these challenges by enhancing its sales and marketing capabilities and investing in technology to drive efficiencies. Management also emphasizes the importance of maintaining high-quality care to support organic growth and strengthen relationships with payors.
Market Risks: The company is exposed to market risks, including fluctuations in interest rates that could increase financing costs. Additionally, modifys in federal and state healthcare policies could impact reimbursement rates and the overall demand for services. The company is actively monitoring these risks and exploring strategies to mitigate their potential impact on financial performance.
SEC Filing: Addus HomeCare Corp [ ADUS ] – 10-K – Feb. 24, 2026
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