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

Healthcare Services Group Reports Second Quarter Results

HCSG

Healthcare Services Group reported second quarter 2026 revenue of $470.8 million.
Net income for the quarter was $22.7 million with diluted EPS of $0.32.
Cash flow from operations totaled $21.9 million, or $27.9 million excluding the $6.0 million decrease in payroll accrual.
The company repurchased $20.9 million of shares, leaving $8.3 million remaining under its $75.0 million plan announced in February 2026.
Segment revenues included $213.2 million for Environmental & Dietary Services with a 13.3% margin, and $257.6 million for Dietary Services with a 7.5% margin.
Cost of services was $396.0 million (84.1%), while the company targets managing this cost in the 86% range.
SG&A expenses were $52.6 million, or $45.7 million after adjusting for a $6.9 million increase in deferred compensation.
Other income was $8.8 million, or $1.9 million after the deferred compensation adjustment.
The company reaffirmed its 2026 mid-single-digit growth outlook.
As of June 30, 2026, the company held $200.9 million in cash & marketable securities alongside an unutilized $300.0 million credit facility.
The effective tax rate for the quarter was 26.8%, with an expected 2026 rate of approximately 25.0%.
CEO Ted Wahl highlighted strong business model execution and substantial growth opportunities in the second half of 2026.
The company will host a conference call on July 22, 2026, at 8:30 a.m. ET to discuss results.
Upcoming events include the RBC Nashville Bus Tour on August 12, Baird's Global Healthcare Conference on September 15, and an Oppenheimer roadshow on September 22 & 23.
Consolidated balance sheet assets reached $820.9 million as of June 30, 2026.
Adjusted EBITDA for the quarter was $35.6 million, representing 7.6% of revenue.
Forward-looking statements in the release are subject to risks including inflation, labor costs, regulatory changes, & customer credit issues.