Business Wire·Oct 22, 2025, 7:00 AM ET

HCSG Reports Third Quarter Results

Healthcare Services Group, Inc. reported third-quarter revenue of $464.3 million, an 8.5% increase over the prior year.
Net income was $43.0 million with diluted EPS of $0.59, including a $0.36 benefit primarily related to the Employee Retention Credit (ERC).
Cash flow from operations was $71.3 million, rising to $87.1 million when excluding the change in payroll accrual; both figures included a $31.8 million ERC benefit.
Segment revenues were $211.8 million for Environmental Services & $252.5 million for Dietary Services.
Cost of services was $367.9 million (79.2%), which included a $31.5 million benefit related to the ERC partially offset by a $2.7 million Genesis charge.
SG&A expenses were $50.5 million, or $46.8 million after adjusting for a $3.7 million increase in deferred compensation.
The company expects to manage SG&A costs in the 9.5% to 10.5% range in the near term.
Share repurchases totaled $27.3 million in the quarter, reducing the balance under the $50.0 million plan to $3.1 million shares remaining.
The company reported $207.5 million in cash & marketable securities & has a $500.0 million credit facility available.
The conference call to discuss results is scheduled for October 22, 2025, at 8:30 a.m. Eastern Time.
The company will present at the UBS Global Healthcare Conference on November 11, 2025, & the Evercore Healthcare Conference on December 3, 2025.