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Addus Homecare (ADUS)
NASDAQ:ADUS
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Addus Homecare (ADUS) AI Stock Analysis

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ADUS

Addus Homecare

(NASDAQ:ADUS)

Rating:80Outperform
Price Target:
$131.00
▲(13.74% Upside)
Addus Homecare's strong financial performance and positive earnings call are the most significant factors driving the score. The company's strategic acquisitions and leadership changes further bolster its growth outlook. While the valuation is moderate, technical indicators suggest positive momentum, supporting a favorable overall stock score.
Positive Factors
Earnings
ADUS posted approximately 1% revenue and 2% EBITDA beat versus consensus.
Financial Performance
Gross margin of 32.6% came in ahead of approximately 32.2% consensus.
Revenue Growth
Rate increases in Illinois and Texas for calendar 2026 are expected to collectively add $35 million of incremental revenue.
Negative Factors
Medicare Rate Update
In Hospice, ADUS characterized the +2.6% final Medicare rate update as disappointing given that it does not fully reflect increasing cost of care.
Regulation
The Department of Labor's proposed rule could provide a tailwind for home care agencies by reinstating exemptions from federal minimum wage and overtime requirements.

Addus Homecare (ADUS) vs. SPDR S&P 500 ETF (SPY)

Addus Homecare Business Overview & Revenue Model

Company DescriptionAddus Homecare (ADUS) is a leading provider of home care services in the United States, specializing in delivering personal care, home health care, and hospice services to individuals in need. The company operates in the home care sector, focusing on improving the quality of life for seniors and individuals with disabilities through a range of tailored care solutions. Addus Homecare's core services include assistance with daily living activities, skilled nursing care, and specialized therapy, offering a comprehensive approach to home-based healthcare.
How the Company Makes MoneyAddus Homecare generates revenue primarily through the provision of home care services, which are reimbursed by various payers, including Medicare, Medicaid, and private insurance companies. The company's revenue model is predominantly fee-for-service, where they bill for the hours of care provided to clients. Key revenue streams include personal care services, skilled nursing services, and therapy services. Additionally, partnerships with healthcare providers and payers enhance their service offerings and patient access, contributing to the overall growth and stability of their earnings. As the demand for home care services continues to rise due to an aging population and a shift towards home-based care, Addus Homecare's revenue potential is bolstered by these market trends.

Addus Homecare Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue and earnings growth, successful debt reduction, and strategic acquisitions, primarily driven by the Personal Care and Hospice segments. However, challenges were noted in the Home Health segment and concerns over the CMS proposed payment rule impacting future service availability were expressed. Overall, the company showed positive momentum with some areas needing attention.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Total revenue for the second quarter of 2025 was $349.4 million, an increase of 21.8% compared to the second quarter of 2024.
Increased Earnings Per Share
Adjusted earnings per share increased by 10.4% to $1.49 from $1.35 in the second quarter of 2024.
Adjusted EBITDA Growth
Adjusted EBITDA was $43.9 million, up 24.5% compared to the second quarter of 2024.
Debt Reduction
The company reduced bank debt by $30 million, leaving a balance of $173 million at quarter end.
Acquisition of Helping Hands Home Care
Addus HomeCare closed on its acquisition of Helping Hands Home Care, expanding its market coverage in Pennsylvania.
Personal Care Segment Performance
Personal Care segment showed a same-store revenue growth of 7.4% compared to the second quarter of 2024.
Hospice Segment Growth
Hospice same-store revenue increased by 10% compared to the same quarter of 2024.
Reimbursement Rate Increases
Illinois and Texas finalized budgets with reimbursement rate increases for personal care services, expected to add significant annualized revenue.
Negative Updates
Home Health Segment Challenges
Home health same-store revenue decreased by 6% compared to the same quarter of 2024.
CMS Proposed Payment Rule Concerns
The proposed rule projects a 6.4% reduction in Medicare payments to home health agencies, which could impact service availability.
Labor Challenges in Clinical Hiring
Continued challenges in clinical hiring, particularly in certain geographic areas.
Disappointment with Hospice Rate Increase
The 2.6% increase for hospice providers does not fully reflect the rising cost of care.
Company Guidance
During the Addus HomeCare second quarter 2025 earnings call, the company reported a 21.8% increase in total revenue, reaching $349.4 million, compared to $286.9 million in the same quarter of 2024. This growth was accompanied by a rise in adjusted earnings per share to $1.49, a 10.4% increase from the previous year's $1.35. Adjusted EBITDA also saw a significant boost, climbing 24.5% to $43.9 million. The company highlighted strong cash flows, ending the quarter with approximately $91 million in cash on hand and reducing bank debt by $30 million to $173 million. Key operational metrics included 105 hires per business day in the Personal Care segment and a 7.4% same-store revenue growth in the Personal Care segment. Addus also discussed anticipated revenue increases due to reimbursement rate hikes in Illinois and Texas, projecting an additional $17.5 million and $17.7 million in annualized revenue, respectively. The company remains focused on strategic acquisitions, recently closing the acquisition of Helping Hands Home Care, enhancing its presence in Western Pennsylvania. Despite challenges in clinical hiring, Addus expressed confidence in its home-based care services and its potential for continued growth.

Addus Homecare Financial Statement Overview

Summary
Addus Homecare demonstrates strong financial performance with consistent revenue growth, stable profitability margins, and a solid balance sheet. The company effectively manages its cash flows, supporting future growth and debt repayment.
Income Statement
85
Very Positive
Addus Homecare demonstrates strong revenue growth with a consistent increase over the past years. The Gross Profit Margin and Net Profit Margin are stable, reflecting efficient operations and profitability. EBIT and EBITDA margins also show a healthy margin, indicating effective cost management. Overall, the income statement reflects robust financial health.
Balance Sheet
78
Positive
The company's balance sheet is solid with a moderate Debt-to-Equity Ratio, indicating a balanced approach to leveraging. Return on Equity is commendable, showing the company's ability to generate profits from shareholders' equity. The Equity Ratio is strong, suggesting a stable financial structure with low risk of over-leverage.
Cash Flow
82
Very Positive
Operating cash flows are strong and consistently cover net income, demonstrating efficient cash management. Free Cash Flow has shown a positive trend, indicating the company's ability to generate cash after accounting for capital expenditures. This positions the company well for future investments or debt repayment.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.21B1.15B1.06B951.12M864.50M764.77M
Gross Profit394.52M375.02M339.88M299.74M269.85M226.24M
EBITDA127.53M120.61M106.56M83.14M80.70M57.18M
Net Income79.00M73.60M62.52M46.02M45.13M33.13M
Balance Sheet
Total Assets1.41B1.41B1.02B937.99M947.59M892.58M
Cash, Cash Equivalents and Short-Term Investments96.95M98.91M64.79M79.96M168.90M145.08M
Total Debt250.80M273.13M175.18M178.05M263.55M239.67M
Total Liabilities412.20M442.14M317.73M304.45M373.24M373.91M
Stockholders Equity995.38M970.49M706.69M633.54M574.34M518.68M
Cash Flow
Free Cash Flow90.12M110.38M102.79M96.81M34.84M102.58M
Operating Cash Flow96.70M116.43M112.25M105.11M39.49M109.41M
Investing Cash Flow-354.24M-354.61M-119.24M-106.59M-42.02M-214.24M
Financing Cash Flow277.77M272.30M-8.18M-87.45M26.34M138.19M

Addus Homecare Technical Analysis

Technical Analysis Sentiment
Positive
Last Price115.17
Price Trends
50DMA
112.10
Positive
100DMA
110.06
Positive
200DMA
112.66
Positive
Market Momentum
MACD
1.28
Negative
RSI
53.72
Neutral
STOCH
42.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADUS, the sentiment is Positive. The current price of 115.17 is above the 20-day moving average (MA) of 114.11, above the 50-day MA of 112.10, and above the 200-day MA of 112.66, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 53.72 is Neutral, neither overbought nor oversold. The STOCH value of 42.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADUS.

Addus Homecare Risk Analysis

Addus Homecare disclosed 31 risk factors in its most recent earnings report. Addus Homecare reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Addus Homecare Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$2.12B25.408.54%14.29%7.85%
73
Outperform
7.26%4.92%-7.34%
72
Outperform
$1.60B61.913.50%51.97%-64.10%
71
Outperform
$829.83M30.7011.44%30.58%24.86%
69
Neutral
$1.76B16.9210.65%2.18%25.19%13.44%
51
Neutral
$7.85B-0.21-41.41%2.22%22.81%-2.01%
40
Underperform
$530.46M-60.64%10.12%-29.12%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ADUS
Addus Homecare
115.17
-14.84
-11.41%
AMED
Amedisys
100.99
3.47
3.56%
NHC
National Healthcare
113.48
-14.44
-11.29%
ASTH
Astrana Health
31.96
-15.44
-32.57%
PNTG
Pennant Group
24.01
-8.48
-26.10%
AGL
Agilon Health
1.28
-2.57
-66.75%

Addus Homecare Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Addus Homecare Appoints New President and COO
Positive
Aug 7, 2025

On August 4, 2025, Addus HealthCare, a subsidiary of Addus HomeCare Corporation, announced the appointment of Heather Dixon as President and Chief Operating Officer, effective September 15, 2025. Dixon, who brings extensive experience in healthcare leadership, succeeds W. Bradley Bickham, who will transition to an advisory role until his retirement in March 2026. Dixon’s appointment is expected to bolster Addus’s operational excellence and support its growth strategy. Her previous roles include CFO positions at Acadia Healthcare and Everside Health, and she has served as an independent director for Addus since March 2023.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Addus HomeCare Reports Strong Q2 2025 Financial Results
Positive
Aug 4, 2025

On August 4, 2025, Addus HomeCare Corporation announced its financial results for the second quarter of 2025, reporting a 21.8% increase in net service revenues to $349.4 million and a net income of $22.1 million. The company completed the acquisition of Helping Hands Home Care, expanding its operations in Pennsylvania. This acquisition aligns with Addus’s strategy to offer comprehensive home-based care services and is expected to enhance its market presence and capabilities. The company’s financial performance reflects strong organic growth, supported by increased demand for home-based care services and strategic acquisitions.

Executive/Board ChangesShareholder Meetings
Addus Homecare Stockholders Approve Key Proposals at Meeting
Neutral
Jun 23, 2025

At the 2025 annual meeting held on June 18, Addus HomeCare Corporation’s stockholders voted on several key issues. They elected three directors for terms expiring in 2028, ratified PricewaterhouseCoopers LLP as the independent auditor for 2025, and approved executive compensation policies. The board also decided to hold an annual advisory vote on executive compensation, reflecting stockholder preferences.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025