Business Wire·Apr 22, 2026, 7:00 AM ET

Healthcare Services Group Reports First Quarter Results

HCSG

Healthcare Services Group, Inc. reported Q1 2026 revenue of $462.8 million, a 3.4% increase over the prior year.
Net income & diluted EPS were $26.1 million & $0.37, respectively.
Cash flow from operations was $43.7 million; adjusted cash flow from operations excluding payroll accrual changes was $23.4 million.
The company repurchased $24.0 million of common stock in the first quarter.
Environmental Services segment revenue was $208.3 million with a 12.1% margin.
Dietary Services segment revenue was $254.5 million with a 9.0% margin.
Cost of services was $386.9 million (83.6% of revenue), while the company aims to manage this in the 86% range.
SG&A expenses were $42.0 million; adjusted SG&A excluding deferred compensation decreases was $43.6 million (9.4% of revenue).
The effective tax rate for the quarter was 24.6%, with a 2026 full-year expectation of approximately 25.0%.
The company reiterated its 2026 mid-single-digit revenue growth outlook.
As of March 31, 2026, cash & marketable securities totaled $214.6 million, with an unutilized $300.0 million credit facility.
A Second Amendment to the Credit Agreement dated April 7, 2026, enhanced pricing & covenant flexibility for the $300 million facility.
$24.0 million was repurchased under a February 2026 plan to buy back $75.0 million of stock by January 2027, leaving $9.2 million in remaining authorization.
A conference call to discuss results is scheduled for April 22, 2026, at 8:30 a.m. Eastern Time.
Upcoming events include roadshows in London, Stockholm, & Zurich in May, along with conferences in New York in May & June.