Second Quarter 2026
Filed Aug 13, 2026AVEANNA HEALTHCARE HOLDINGS ANNOUNCES SECOND QUARTER FINANCIAL RESULTS AND REVISED 2026 GUIDANCE
Second-quarter revenue increased 13.7%, net income increased to $40.3 million from $27.0 million, and the company increased full-year revenue and Adjusted EBITDA guidance. Gross margin, Field contribution margin, operating-income margin, and Adjusted EBITDA margin declined from the prior-year period.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $670,483 | – | 13.7 % |
| Cost of revenue, excluding depreciation and amortizationGAAP | $451,958 | – | 19.3 % |
| Gross marginGAAP | $218,525 | – | 3.7 % |
| Gross margin percentageGAAP | 32.6 % | – | -3.2 % |
| Branch and regional administrative expensesGAAP | $97,079 | – | 7.8 % |
| Field contributionnon-GAAP | $121,446 | – | 0.6 % |
| Field contribution marginnon-GAAP | 18.1 % | – | -2.4 % |
| Corporate expensesGAAP | $34,083 | – | -1.3 % |
| Corporate expenses as a percentage of revenueGAAP | 5.1 % | – | – |
| Depreciation and amortizationGAAP | $2,849 | – | – |
| Acquisition-related costsGAAP | $4,390 | – | – |
| Other operating expenseGAAP | $144 | – | – |
| Operating incomeGAAP | $79,980 | – | -0.1 % |
| Operating income as a percentage of revenueGAAP | 11.9 % | – | – |
| Interest incomeGAAP | $1,259 | – | – |
| Interest expenseGAAP | $(27,776 ) | – | – |
| Other income (expense)GAAP | $3,010 | – | – |
| Income before income taxesGAAP | $56,473 | – | – |
| Income tax expenseGAAP | $(16,180 ) | – | – |
| Net incomeGAAP | $40,293 | – | – |
| Net income as a percentage of revenueGAAP | 6.0% | – | – |
| Net income per share, basicGAAP | $ 0.19 | – | – |
| Net income per share, dilutedGAAP | $ 0.18 | – | – |
| Adjusted net incomenon-GAAP | $ 49,552 | – | – |
| Adjusted net income per diluted sharenon-GAAP | $ 0.22 | – | – |
| EBITDAnon-GAAP | $ 85,839 | – | – |
| Adjusted EBITDAnon-GAAP | $ 95,435 | – | 8.0% |
| Adjusted EBITDA as a percentage of revenuenon-GAAP | 14.2% | – | – |
| Revenue, six-month periodGAAP | $ 1,318,398 | – | 14.8 % |
| Gross margin, six-month periodGAAP | $ 423,953 | – | 7.5 % |
| Gross margin percentage, six-month periodGAAP | 32.2 % | – | -2.1 % |
| Operating income, six-month periodGAAP | $ 149,306 | – | 13.3 % |
| Operating income as a percentage of revenue, six-month periodGAAP | 11.3 % | – | – |
| Net income, six-month periodGAAP | $ 81,946 | – | – |
| Net income per share, diluted, six-month periodGAAP | $ 0.37 | – | – |
| Adjusted net income per diluted share, six-month periodnon-GAAP | $ 0.40 | – | – |
| Adjusted EBITDA, six-month periodnon-GAAP | $ 179,786 | – | 15.4% |
| Adjusted EBITDA as a percentage of revenue, six-month periodnon-GAAP | 13.6% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| PDSRevenue increased $67.9 million; hours increased 12.3 % and revenue rate increased 1.7 %. | $ 553,929 | – | 14.0 % |
| HHHHome health total admissions increased 7.1 %, home health episodic admissions increased 16.4 %, and home health total episodes increased 18.5 %. | $ 69,023 | – | 14.8 % |
| MSUnique patients served increased 4.4 % and revenue rate increased 5.0 %. | $ 47,531 | – | 9.4 % |
Full fiscal year 2026 (year ending January 2, 2027) outlook
- Revenuegreater than $2.68 billion
- NoteAdjusted EBITDA of greater than $365 million
- NoteThe company is not providing guidance on net income at this time due to the volatility of certain required inputs that are not available without unreasonable efforts, including future fair value adjustments associated with its interest rate caps.
What drove it
- The revenue increase was attributable to a $67.9 million increase in PDS segment revenue, an $8.9 million increase in HHH segment revenue, and a $4.1 million increase in MS segment revenue compared to the second quarter of 2025.
- PDS hours increased 12.3 %, while the PDS revenue rate increased 1.7 %.
- HHH home health episodic mix was 81.0 %, compared with 74.5 %.
- MS revenue rate increased 5.0 % and spread rate increased 4.0 %.
- Corporate expenses decreased $ (446 ) and were 5.1 % of revenue, compared with 5.9 % of revenue.
Concerns
- Cost of revenue, excluding depreciation and amortization, increased 19.3 %, faster than revenue growth of 13.7 %.
- Gross margin percentage declined to 32.6 % from 35.8 %, and Field contribution margin declined to 18.1 % from 20.5 %.
- PDS gross margin percentage declined to 28.9 % from 32.5 %, as PDS cost of revenue rate increased 7.8 % while PDS revenue rate increased 1.7 %.
- Operating income decreased -0.1 % to $79,980 despite revenue growth.
- Total indebtedness was $1,483.4 million as of July 4, 2026.
What to watch
- Execution against full fiscal year 2026 revenue guidance of greater than $2.68 billion and Adjusted EBITDA guidance of greater than $365 million.
- Whether PDS revenue rate, cost of revenue rate, and spread rate trends change from $44.62, $31.74, and $12.88, respectively.
- Whether gross margin percentage and Field contribution margin stabilize after the reported declines.
- HHH admission, episode, episodic-mix, and revenue-per-completed-episode trends.
- Cash generation, investing cash use, debt levels, and interest-rate-derivative effects.
Balance sheet and cash flow
- Cash of $97.2 million as of July 4, 2026.
- Incremental borrowing capacity of $110.0 million under the securitization facility as of July 4, 2026.
- The revolver was undrawn, with approximately $225.5 million of borrowing capacity and approximately $24.5 million of outstanding letters of credit.
- Total indebtedness of $1,483.4 million as of July 4, 2026.
- 2026 Term Loans: $ 1,318,375 at S + 3.00%.
- Securitization Facility: $ 165,000 at S + 2.50%.
- Net cash provided by operating activities was $ 85,277 for the six-month period ended July 4, 2026, compared with $ 42,937 for the six-month period ended June 28, 2025.
- Free cash flow was $ 75,425 for the six-month period ended July 4, 2026.
- Net cash used in investing activities was $ (179,924 ) for the six-month period ended July 4, 2026, compared with $ (18,330 ) for the six-month period ended June 28, 2025.
- Net cash used in financing activities was $ (1,417 ) for the six-month period ended July 4, 2026, compared with $ (8,157 ) for the six-month period ended June 28, 2025.
- $520.0 million notional amount of interest rate caps cap exposure to SOFR at 4.00%.
- $880.0 million notional amount of interest rate caps cap exposure to SOFR at 2.96%.
Analysis
Aveanna reported second-quarter revenue of $670.5 million, up 13.7% from the prior-year period. Growth was broad across all three reported segments, led by PDS, which contributed a $67.9 million revenue increase. PDS hours increased 12.3%, HHH total admissions increased 7.1%, and MS unique patients served increased 4.4%, indicating that reported growth included both volume and rate measures across the businesses.
The mix of growth and costs pressured margins. Cost of revenue, excluding depreciation and amortization, increased 19.3%, compared with 13.7% revenue growth. Gross margin increased $7.7 million but gross margin percentage declined to 32.6% from 35.8%. PDS was the principal margin pressure point: its revenue rate increased 1.7% while its cost of revenue rate increased 7.8%, and its spread rate declined 11.1%. HHH and MS also reported lower gross margin percentages.
Operating income was $79,980, essentially unchanged from $80,034 in the prior-year period, while operating-income margin declined to 11.9% from 13.6%. Corporate expenses declined $446 and decreased to 5.1% of revenue from 5.9%, but this did not offset the gross-margin and field-contribution pressure. Net income rose to $40,293 from $27,025, with interest expense declining to $(27,776 ) from $(36,003 ). Adjusted EBITDA increased 8.0% to $95,435, although its margin declined to 14.2% from 15.0%.
Liquidity disclosures show cash of $97.2 million, an undrawn revolver with approximately $225.5 million of borrowing capacity, and $1,483.4 million of total indebtedness as of July 4, 2026. The company reported $85,277 of operating cash flow and $75,425 of free cash flow for the six-month period. Net cash used in investing activities was $ (179,924 ), compared with $ (18,330 ) in the prior-year six-month period.
Management increased full-year 2026 revenue guidance to greater than $2.68 billion from between $2.63 and $2.65 billion and increased Adjusted EBITDA guidance to greater than $365 million from between $338 and $342 million. The guidance increase follows first-half revenue growth of 14.8% and Adjusted EBITDA growth of 15.4%. The central operating issue for the remainder of the year is whether revenue and volume growth can be sustained while addressing the reported compression in gross margin, Field contribution margin, operating-income margin, and Adjusted EBITDA margin.
Management, verbatim
Our second quarter results demonstrate the momentum across Aveanna and our ability to consistently deliver sustained year-over-year growth.
Jeff Shaner, Chief Executive Officer
Given our performance in the first half of the year and confidence in our outlook, we are pleased to raise our 2026 revenue and Adjusted EBITDA guidance.
Jeff Shaner, Chief Executive Officer
Our increased 2026 guidance, including revenue of greater than $2.68 billion and Adjusted EBITDA of greater than $365 million, underscores the strength of our business model and the opportunities ahead as we continue to execute on our strategic initiatives.
Matt Buckhalter, Chief Financial Officer
Not in the filing
stated, not guessed- Previous quarterly outlook document was not provided; therefore, no actual-versus-prior-guidance comparisons are included.
- Prior-quarter figures and quarter-over-quarter changes for reported metrics were not provided.
- Quarterly operating cash flow and free cash flow were not provided.
- Capital returns, including share repurchases and dividends, were not reported.
- Gross margin, operating-expense, and tax-rate guidance were not provided.
- Full-year 2026 net-income guidance was not provided.
- Segment operating income was not provided.
AlphaAI analysis generated 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 cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.