Addus HomeCare — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net service revenues increased 7.0% year-over-year to $387.7 million for the third quarter of 2026, compared to $362.3 million in the third quarter of 2025.
• Net income for the third quarter of 2026 was $28.6 million, up from $22.8 million in the prior-year period; net income per diluted share was $1.54 versus $1.24.
• Adjusted net income for the third quarter of 2026 was $33.9 million, an increase from $28.7 million in the prior year; adjusted net income per diluted share rose 17.3% to $1.83 from $1.56.
• Adjusted EBITDA increased 13.5% year-over-year to $51.2 million for the third quarter of 2026, compared to $45.1 million in the third quarter of 2025.
• Cash flow from operations for the third quarter of 2026 was $40.9 million.
• For the first nine months of 2026, net service revenues increased 7.6% to $1.129 billion from $1.049 billion in the prior year.
• Net income for the first nine months of 2026 was $81.3 million, compared to $66.1 million in the prior year; net income per diluted share was $4.39 versus $3.60.
• Adjusted EBITDA for the first nine months of 2026 increased 11.8% to $144.9 million from $129.6 million in the prior year.
• Adjusted net income for the first nine months of 2026 was $96.0 million, compared to $82.1 million in the prior year; adjusted net income per diluted share was $5.19 versus $4.48.
• Gross profit margin was 32.1% for the third quarter of 2026, compared to 32.2% in the prior year.
• As of September 30, 2026, the company held $98.5 million in cash and had $24.3 million in bank debt.
• The company had $650.0 million in capacity and $617.8 million available under its revolving credit facility as of September 30, 2026.
• Total liabilities were $270.4 million as of September 30, 2026, down from $373.0 million in the prior year.
• Total stockholders' equity was $1.18 billion as of September 30, 2026, up from $1.05 billion in the prior year.

Guidance and Future Outlook:

• Management expressed confidence in the company's scalable platform, strong cash flow generation, and expanding market reach positioning it well for long-term value creation.
• The company anticipates closing and integrating the AccentCare personal care operations to grow its network of caregivers.
• Management indicated a focus on disciplined identification of complementary opportunities to build market density and enhance operational scale.
• The company aims to continue profitable growth and enhance shareholder value through the end of 2026.

Business Segments and Product Lines:

• Personal care services accounted for 77.6% of third quarter revenues and delivered a 6.9% organic revenue increase year-over-year.
• Growth in personal care was supported by organic volume expansion, the first full quarter of contribution from the HomeCourt Home Care acquisition, and favorable rate adjustments in Illinois, Texas, and New Mexico.
• The hospice segment represented 17.8% of third quarter revenue, with a 4.3% organic increase in average daily census year-over-year.
• Excluding an implicit price concession benefit received in the prior year, hospice organic revenue increased 8.8%.
• Home health accounted for 4.6% of revenue, showing encouraging admission and volume trends and a return to year-over-year organic revenue growth.
• Home health organic revenue growth was 2.5% for the third quarter of 2026, compared to a 2.8% decline in the prior year.
• Home health new admissions increased 13.8% organically in the third quarter of 2026.
• The company serves approximately 62,500 patients through 263 locations across 24 states.

Market and Competitive Landscape:

• Demand for high-quality, cost-effective care in the home setting remains strong.
• Offering personal care, hospice, and home health services provides a strategic advantage for clinically collaborating with managed care plans and value-based partners.
• Personal care revenue payor mix for the third quarter of 2026 was 50.2% state/local/other governmental programs, 47.3% managed care organizations, 2.1% private duty, and 0.4% commercial.
• Hospice revenue payor mix for the third quarter of 2026 was 94.3% Medicare, 2.5% commercial, 2.7% managed care organizations, and 0.5% other.
• Home health revenue payor mix for the third quarter of 2026 was 63.3% Medicare, 25.0% managed care organizations, 8.0% state/local/other governmental programs, 3.2% commercial, and 0.5% other.

Risks and Challenges:

• Forward-looking statements involve risks including discretionary determinations by government officials, consummation and integration of acquisitions, transition to managed care providers, and ability to execute growth strategy.
• Risks include unexpected increases in SG&A and other expenses, expected benefits and unexpected costs of acquisitions, and failure of business to perform as expected.
• Potential risks involve changes in reimbursement, government regulations, relationships with referral sources, increased competition, and changes in interpretation of government regulations.
• Uncertainty regarding outcomes of discussions with managed care organizations, changes in tax rates, adverse weather, higher than anticipated costs, and lower than anticipated cost savings are noted.
• Risks include estimation inaccuracies in future revenues, margins, earnings, and growth, as well as security breaches, cyber-attacks, and loss of data.

Management Commentary and Tone:

• Dirk Allison, Chairman and CEO, described the results as another strong quarter of profitable growth and operational execution.
• Allison noted that disciplined cost controls and operating leverage drove meaningful adjusted EBITDA and net income expansion.
• Management highlighted the strategic advantage of offering all three levels of care to better serve patients and strengthen collaboration with partners.
• The tone was confident, citing a strong financial foundation and excitement about the business trajectory.

Other Key Points:

• On September 14, 2026, the company announced a definitive agreement to acquire the personal care division of AccentCare for approximately $275.0 million.
• The AccentCare acquisition relates only to operations outside of New York and is expected to add roughly $280 million in annualized revenue, representing a nearly 19% expansion of the total revenue base.
• The transaction is expected to substantially expand capabilities in Texas, Illinois, California, and Arizona.
• Closing of the AccentCare transaction is subject to regulatory approvals and customary closing conditions.
• A conference call was scheduled for November 4, 2026, at 9:00 a.m. Eastern Time with Dirk Allison and Brian Poff.
• Adjusted net income per diluted share for the third quarter of 2026 excludes acquisition expenses of $0.16, stock-based compensation expense of $0.12, and restructure and other non-recurring costs of $0.01.