Aveanna Healthcare Holdings — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter revenue was $695.5 million, an 11.8% increase year-over-year compared to $621.9 million in Q3 2025.
• Nine-month revenue was $2,013.9 million, a 13.7% increase year-over-year compared to $1,770.7 million in the first nine months of 2025.
• Third quarter net income was $45.5 million (6.5% of revenue) compared to $14.1 million (2.3% of revenue) in the prior year period; net income per diluted share was $0.20 versus $0.06.
• Nine-month net income was $127.4 million (6.3% of revenue) compared to $46.3 million (2.6% of revenue) in the prior year period; net income per diluted share was $0.57 versus $0.22.
• Third quarter Adjusted EBITDA was $100.1 million (14.4% of revenue), a 25.0% increase year-over-year from $80.1 million (12.9% of revenue).
• Nine-month Adjusted EBITDA was $279.9 million (13.9% of revenue), an 18.7% increase year-over-year from $235.9 million (13.3% of revenue).
• Third quarter gross margin was $226.8 million (32.6% of revenue) compared to $202.8 million (32.6% of revenue) in the prior year period.
• Nine-month gross margin was $650.7 million (32.3% of revenue) compared to $597.2 million (33.7% of revenue) in the prior year period.
• Net cash provided by operating activities for the nine-month period was $157.5 million, compared to $76.1 million in the prior year period.
• Free cash flow for the nine-month period was $141.2 million.
• Total indebtedness as of October 3, 2026, was $1,521.3 million, consisting of $1,315.1 million in 2026 Term Loans and $206.3 million in Securitization Facility debt.
• The company held $197.8 million in cash and had $68.7 million of incremental borrowing capacity under its securitization facility; the revolver was undrawn with approximately $225.6 million of borrowing capacity.

Guidance and Future Outlook:

• Full Year 2026 revenue guidance was increased to greater than $2.695 billion, updated from greater than $2.68 billion.
• Full Year 2026 Adjusted EBITDA guidance was increased to greater than $374 million, updated from greater than $365 million.
• The company will not provide guidance on net income due to volatility in inputs such as future fair value adjustments associated with interest rate caps.

Business Segments and Product Lines:

• PDS Segment: Q3 revenue increased $59.8 million (11.6%) to $574.2 million; nine-month revenue increased $203.4 million (13.9%) to $1,663.8 million.
• HHH Segment: Q3 revenue increased $9.7 million (15.6%) to $72.1 million; nine-month revenue increased $28.5 million (15.9%) to $207.8 million.
• MS Segment: Q3 revenue increased $4.1 million (9.1%) to $49.2 million; nine-month revenue increased $11.4 million (8.7%) to $142.4 million.
• PDS segment hours increased 10.2% in Q3 and 11.4% year-to-date.
• HHH segment home health total admissions increased 19.6% in Q3 and 13.4% year-to-date; episodic admissions increased 24.0% in Q3 and 19.7% year-to-date.
• MS segment unique patients served increased 7.7% in Q3 and 5.5% year-to-date.

Market and Competitive Landscape:

• The company operates as a leading, diversified home care platform focused on medically complex, high-cost patient populations across 39 states.
• Management cited strong organic growth across all three business segments as a key driver of performance.
• The company highlighted the continued success of its Preferred Payor and Government Affairs strategies.

Risks and Challenges:

• Forward-looking statements note risks including intense competition, ability to maintain patient referral sources, and reliance on third-party payers (Medicare, Medicaid, private insurance).
• Specific risks include changes to Medicaid under the "One Big Beautiful Bill Act," downward pressure on reimbursement from Medicare Advantage plans, and potential delays in collections during business integration or system transitions.
• Risks also include healthcare reform regulations, case-mix changes, employee shortages, cybersecurity threats, and substantial indebtedness increasing vulnerability to adverse economic conditions.
• The company faces risks related to legal proceedings and liability claims, including a grand jury subpoena related to nurse wages and hiring activities.

Management Commentary and Tone:

• CEO Jeff Shaner stated results highlight "continued momentum" in the Aveanna Strategic Plan and the ability to deliver sustained year-over-year growth.
• CFO Matt Buckhalter emphasized "solid performance across all three divisions," "profitable growth," "strong cash flow generation," and "disciplined deleveraging."
• Management expressed confidence in the outlook, citing performance through the first three quarters as the reason for raising full-year guidance.

Other Key Points:

• The company has incurred substantial acquisition-related and integration costs, which are excluded from Adjusted EBITDA to provide a normalized view of core operations.
• Interest rate exposure is hedged with $520.0 million in interest rate caps at 4.00% SOFR and $880.0 million in caps at 2.96% SOFR.
• Corporate expenses decreased 31.0% in Q3 ($35.9 million vs. $52.0 million) and 16.0% year-to-date ($104.1 million vs. $124.0 million).
• A conference call to discuss results was scheduled for November 12, 2026, at 10:00 a.m. Eastern Time.