Addus HomeCare Hospice Organic Growth Accelerates

The Tip Desk · August 4, 2026 · 3 min read

Hospice organic revenue rose 11.1% in the second quarter as personal care organic growth eased to 6.8%.

Addus HomeCare Corporation (ADUS), a provider of home care services, reported net service revenues of $377.4 million for the second quarter of 2026, an 8.0% increase from a year earlier. That year-over-year rate was slightly above the 7.7% pace recorded in the first quarter. Adjusted EBITDA rose 11.9% to $49.2 million. Net income was $27.6 million, or $1.49 a share. Adjusted net income per diluted share increased 16.1% to $1.73.

Chairman and Chief Executive Officer Dirk Allison said revenues grew on solid organic growth and disciplined execution, and that a focus on cost management, operational efficiency and leverage reduction translated into the 11.9% improvement in adjusted EBITDA and a 25.2% increase in net income. Gross profit margin compressed to 32.2% from 32.6% a year earlier. Operating income was $38.9 million.

Personal care remained the bulk of the business, accounting for 78.4% of revenue. Organic revenue in that segment rose 6.8%, after 7.4% growth in the first quarter. The improvement reflected higher volumes as well as two months of operations from HomeCourt Home Care, acquired May 1, 2026. Same-store average billable census was 49,955. Total census including acquisitions was 51,097. Billable hours were 11.15 million, and revenue per billable hour was $26.55. Allison said the company continued to benefit from rate increases in two key states, including a 9.9% increase in Texas late last year and a 3.9% increase in Illinois in January.

Hospice was the inflection. Organic revenue growth accelerated to 11.1% from 10.0% in the first quarter. The segment accounted for 17.0% of revenue. Average daily census rose 6.5% year over year, and revenue per patient day was $190.66. Allison said the growth was driven by year-over-year improvements in average daily census and revenue per patient day.

Home health represented 4.6% of revenue. Organic revenue declined 2.8%, a narrower drop than the 6.0% decline in the first quarter. New admissions rose 9.8% and total volume rose 5.4%. Allison said the company was pleased to see more favorable admission and volume trends and continued to believe home health provides complementary capabilities to personal care and hospice.

Cash provided by operating activities was $40.0 million in the second quarter. As of June 30, 2026, cash was $99.6 million and bank debt was $64.3 million, with $577.8 million available under a $650.0 million revolving credit facility. Allison said low leverage allows the company to invest strategically and pursue targeted acquisitions, and that it remains disciplined in evaluating clinical and non-clinical opportunities to enhance market density and geographic reach.

The company currently provides home care services to approximately 62,500 patients and consumers through 264 locations across 24 states. Allison said the company looks forward to continued addition of size and scale via organic growth and acquisition opportunities that can increase density and geographic coverage, and said it has the financial flexibility to actively pursue that strategy.