third quarter 2026
Filed Nov 3, 2026Net service revenues increased 7.0% to $387.7 Million; adjusted EBITDA increased 13.5% to $51.2 Million; adjusted net income per diluted share increased 17.3% year-over-year to $1.83.
Third-quarter revenue, GAAP net income, adjusted EBITDA and adjusted diluted EPS all increased year over year, while operating cash flow was $40.9 million and the company announced the pending acquisition of AccentCare's personal care division.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net service revenuesGAAP | $387.7M | – | 7.0% |
| Q3 2026 adjusted net service revenuesnon-GAAP | $387.7M | – | – |
| Q3 2026 cost of service revenuesGAAP | 263.3M | – | – |
| Q3 2026 gross profitGAAP | 124.4M | – | – |
| Q3 2026 gross profit marginGAAP | 32.1% | – | – |
| Q3 2026 general and administrative expensesGAAP | 80.44M | – | – |
| Q3 2026 depreciation and amortizationGAAP | 4.14M | – | – |
| Q3 2026 total operating expensesGAAP | 84.58M | – | – |
| Q3 2026 operating incomeGAAP | 39.82M | – | – |
| Q3 2026 total interest expense, netGAAP | 678K | – | – |
| Q3 2026 income before income taxesGAAP | 39.14M | – | – |
| Q3 2026 income tax expenseGAAP | 10.55M | – | – |
| Q3 2026 net incomeGAAP | $28.59M | – | – |
| Q3 2026 net income per diluted shareGAAP | $ 1.54 | – | – |
| Q3 2026 weighted average diluted shares outstandingGAAP | 18.57M | – | – |
| Q3 2026 adjusted EBITDAnon-GAAP | $51.25M | – | 13.5% |
| Q3 2026 adjusted net incomenon-GAAP | $33.93M | – | – |
| Q3 2026 adjusted net income per diluted sharenon-GAAP | $ 1.83 | – | 17.3% |
| Q3 2026 net cash provided by operating activitiesGAAP | $40.91M | – | – |
| Q3 2026 net cash used in investing activitiesGAAP | −2.00M | – | – |
| Q3 2026 net cash used in financing activitiesGAAP | −40.01M | – | – |
| Q3 2026 net change in cashGAAP | −1.09M | – | – |
| Q3 2026 cash at end of periodGAAP | $98.48M | – | – |
| Nine months 2026 net service revenuesGAAP | $1.13B | – | 7.6% |
| Nine months 2026 gross profitGAAP | 361.8M | – | – |
| Nine months 2026 gross profit marginGAAP | 32.1% | – | – |
| Nine months 2026 operating incomeGAAP | 112.8M | – | – |
| Nine months 2026 net incomeGAAP | $81.27M | – | – |
| Nine months 2026 net income per diluted shareGAAP | $ 4.39 | – | – |
| Nine months 2026 adjusted EBITDAnon-GAAP | $144.9M | – | 11.8% |
| Nine months 2026 adjusted net incomenon-GAAP | $95.99M | – | – |
| Nine months 2026 adjusted net income per diluted sharenon-GAAP | $ 5.19 | – | – |
| Nine months 2026 net cash provided by operating activitiesGAAP | $133.3M | – | – |
| September 30, 2026 cashGAAP | $98.5M | – | – |
| September 30, 2026 bank debtGAAP | $24.3M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Personal Care, Q3 2026Personal care accounted for 77.6% of third quarter revenues. Organic revenue growth was 6.9%; management cited organic volume expansion, the first full quarter of HomeCourt Home Care acquisition contribution, and favorable rate adjustments in Illinois, Texas, and New Mexico. | $301.0M | – | 6.9% |
| Hospice, Q3 2026Hospice represented 17.8% of third quarter revenue. Organic average daily census growth was 4.3%, and adjusted hospice organic revenue growth exclusive of implicit price concessions was 8.8%. | $69.02M | – | 4.1% |
| Home Health, Q3 2026Home health accounted for 4.6% of revenue. New admissions were 5,043 versus 4,577 and total volume was 7,827 versus 7,204; organic revenue growth was 2.5%. | $17.70M | – | 2.5% |
| Personal Care, nine months 2026Average billable census total was 50,864 versus 50,708, billable hours were 33,164 (in thousands) versus 31,615 (in thousands), and revenues per billable hour were $ 26.47 versus $ 25.40. | $878.1M | – | 6.7% |
| Hospice, nine months 2026Average daily census was 3,947 versus 3,720, patient days were 1,074,450 versus 1,012,045, and organic average daily census growth was 6.5%. | $199.1M | – | 7.5% |
| Home Health, nine months 2026New admissions were 14,753 versus 13,853 and total volume was 22,845 versus 22,295; visits were 259,648 versus 279,924. | $51.61M | – | (2.3)% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
What drove it
- Personal care organic revenue growth was 6.9% in the third quarter and 6.7% for the nine months.
- Third-quarter personal care billable hours were 11,286 (in thousands) versus 10,855 (in thousands), and revenues per billable hour were $ 26.67 versus $ 25.40.
- Hospice average daily census was 4,037 versus 3,889 in the third quarter; organic average daily census growth was 4.3%.
- Home health organic new-admission growth was 13.8% and organic volume growth was 11.5% in the third quarter.
- On September 14, 2026, the company announced a definitive agreement to acquire AccentCare's personal care division outside New York for an anticipated purchase price of approximately $275.0 million, subject to customary purchase price adjustments.
- The AccentCare transaction is expected to add roughly $280 million in annualized revenue and represents a nearly 19% expansion of the total revenue base, according to the company.
Concerns
- Q3 gross profit margin was 32.1%, compared with 32.2% in the prior-year quarter.
- Q3 net cash provided by operating activities was $ 40,914 (amounts in thousands), compared with $ 51,266 (amounts in thousands) in the prior-year quarter.
- Hospice revenue per patient day was $ 190.36, compared with $ 191.66 in the prior-year quarter.
- The AccentCare transaction remains subject to regulatory approvals and customary closing conditions.
- The release states that financial information is preliminary and subject to change and finalization.
What to watch
- Closing, funding and integration of the pending AccentCare personal care division acquisition.
- Personal care organic growth, including volume expansion and favorable rate adjustments in Illinois, Texas, and New Mexico.
- Hospice average daily census growth and revenue growth excluding implicit price concessions.
- Home health admissions, volume and the continuation of year-over-year organic revenue growth.
- Operating cash flow and revolving credit facility availability as the company pursues the AccentCare acquisition.
Balance sheet and cash flow
- Cash was $98.5 million and bank debt was $24.3 million as of September 30, 2026.
- Capacity and availability under the revolving credit facility were $650.0 million and $617.8 million, respectively.
- Long-term debt, less current portion, net of debt issuance costs was 21,921 (amounts in thousands) at September 30, 2026, compared with 150,640 (amounts in thousands) at September 30, 2025.
- Net cash provided by operating activities was $40.9 million for the third quarter of 2026 and $133,290 (amounts in thousands) for the nine months ended September 30, 2026.
- Net cash used in financing activities was (40,005) (amounts in thousands) for the third quarter of 2026 and (99,235) (amounts in thousands) for the nine months ended September 30, 2026.
Analysis
Addus reported a strong third quarter, with GAAP net service revenues of $387.7 million, up 7.0% from $362.3 million. GAAP operating income was $39.8 million versus $32.9 million, net income was $28.6 million versus $22.8 million, and diluted EPS was $1.54 versus $1.24. Adjusted EBITDA increased 13.5% to $51.2 million, while adjusted diluted EPS increased 17.3% to $1.83. Gross profit margin was 32.1%, compared with 32.2% in the prior-year quarter.
Personal care remained the primary growth engine, generating $301.0 million of third-quarter revenue and accounting for 77.6% of quarterly revenue. The segment delivered 6.9% organic revenue growth, supported by organic volume expansion, HomeCourt Home Care's first full quarter of contribution, and favorable rate adjustments in Illinois, Texas, and New Mexico. Hospice generated $69.0 million of revenue, with 4.3% organic growth in average daily census and 8.8% adjusted organic revenue growth excluding implicit price concessions. Home health generated $17.7 million, with 2.5% organic revenue growth, 13.8% organic new-admission growth and 11.5% organic volume growth.
Cash generation remained positive but was lower than the prior-year quarter. Operating cash flow was $40.9 million, compared with $51.3 million. At September 30, the company reported $98.5 million of cash, $24.3 million of bank debt and $617.8 million of revolver availability. Nine-month operating cash flow was $133.3 million, compared with $92.7 million in the prior-year period. No share repurchases or dividends were reported in the release.
The principal strategic development was the pending acquisition of AccentCare's personal care division outside New York for approximately $275.0 million, subject to customary purchase price adjustments. Management said the transaction would add roughly $280 million in annualized revenue and represent a nearly 19% expansion of the revenue base. The release provided no financial guidance. Key execution issues are regulatory approvals, closing conditions, funding and integration of the transaction, alongside preservation of personal care growth, hospice census momentum and operating cash flow.
Management, verbatim
Our third quarter results reflect another strong quarter of profitable growth and operational execution across our service lines. Top-line revenue grew 7.0%, while disciplined cost controls and operating leverage drove meaningful adjusted EBITDA and net income expansion. The demand for high-quality, cost-effective care in the home setting remains strong, and our team continues to execute well on our growth initiatives.
Dirk Allison, Chairman and Chief Executive Officer
Personal care services continued to drive our growth, accounting for 77.6% of our third quarter revenues and delivering a 6.9% organic revenue increase over the third quarter of last year.
Dirk Allison, Chairman and Chief Executive Officer
Our business generated $40.9 million in operating cash flow during the third quarter, further bolstering our strong balance sheet. With low leverage and substantial availability under our revolving credit facility, we maintain significant liquidity and financial capacity to fund strategic growth investments, which includes the pending AccentCare personal care division acquisition.
Dirk Allison, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Prior-period guidance was not provided.
- Free cash flow was not provided.
- Share repurchases were not provided.
- Dividends were not provided.
- Quarterly revenue, gross margin, operating expense, tax rate and other formal guidance were not provided.
- Quarter-over-quarter comparisons for reported earnings and segment metrics were not provided.
- A GAAP effective tax rate was not provided.
- Segment operating income or segment margin was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.