Addus Homecare (ADUS)
NASDAQ:ADUS
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Addus Homecare
(NASDAQ:ADUS)
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Rating:75Outperform
Price Target:
$105.00
▲(13.18% Upside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by strong fundamentals (consistent revenue growth, improving margins, and very low leverage). Earnings-call commentary reinforces a positive outlook with supportive rate increases and balance-sheet flexibility, though near-term margin pressure and working-capital variability are notable risks. Technicals are the main offset, with the stock trading below major moving averages and only mixed momentum signals; valuation appears moderate based on the provided P/E.
Positive Factors
Consistent Revenue Growth
Addus has delivered multi-year topline growth driven by organic personal-care momentum and acquisitions. Durable revenue expansion increases scale, strengthens payor relationships, and supports investment in recruiting and tech, sustaining growth potential over the next 2–6 months.
Negative Factors
Home Health Decline
The home health business is underperforming and is the smallest segment, eroding diversification and exposing Addus to concentrated personal-care risk. Management expects recovery only by H2 2026, meaning near-term revenue mix and margin benefits could be constrained.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Revenue Growth
Addus has delivered multi-year topline growth driven by organic personal-care momentum and acquisitions. Durable revenue expansion increases scale, strengthens payor relationships, and supports investment in recruiting and tech, sustaining growth potential over the next 2–6 months.
Read all positive factors
Addus Homecare (ADUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.73B
Dividend YieldN/A
Average Volume (3M)226.99K
Price to Earnings (P/E)20.7
Beta (1Y)0.41
Revenue Growth18.77%
EPS Growth6.88%
CountryUS
Employees6,165
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.77
Shares Outstanding18,643,616
10 Day Avg. Volume197,146
30 Day Avg. Volume226,988
Financial Highlights & Ratios
PEG Ratio1.04
Price to Book (P/B)1.83
Price to Sales (P/S)1.39
P/FCF Ratio19.09
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue1.31
Enterprise Value/Gross Profit4.02
Enterprise Value/Ebitda11.89
Forecast
1Y Price Target
$131.14Price Target Upside41.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)6.89
Revenue Forecast (FY)$1.52B
Addus Homecare Business Overview & Revenue Model
Company Description
Addus HomeCare Corporation, together with its subsidiaries, provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States. It operates...
How the Company Makes Money
Addus makes money by delivering home-based care services and receiving reimbursement primarily from government healthcare programs and, to a lesser extent, other payors. Its key revenue streams include: (1) Personal Care: the company’s largest lin...
Addus Homecare Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive operational and financial picture driven by strong top-line growth (Q4 revenue +25.6% YoY; FY revenue +23.2% YoY), meaningful adjusted EBITDA and EPS expansion, successful acquisitions that expanded scale, favorable state rate actions, improved cash flow and deleveraging, and progress on hiring and technology rollouts. Headwinds include a decline in home health revenue, modest census softness, gross margin pressure driven by mix and near-term wage/tax resets, timing-related DSO volatility (notably in Illinois), and ongoing reimbursement/policy uncertainties. Management has clear remediation plans (leadership hires, targeted acquisitions, caregiver app and technology rollouts) and balance sheet flexibility to pursue growth, so positives substantially outweigh the disclosed challenges.Positive Updates
Strong Quarterly and Full-Year Revenue Growth
Q4 2025 total revenue of $373.1M, up 25.6% YoY; FY2025 revenue approximately $1.4B, up 23.2% YoY.
Negative Updates
Home Health Revenue Decline
Home Health same-store revenue decreased 7.4% YoY in Q4 2025 and remains the smallest segment (4.6% of Q4 revenue at $17.1M); company is investing in leadership and sales to restore growth but expects return to growth likely in second half of 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly and Full-Year Revenue Growth
Q4 2025 total revenue of $373.1M, up 25.6% YoY; FY2025 revenue approximately $1.4B, up 23.2% YoY.
Read all positive updates
Company Guidance
Addus said Q1 2026 should benefit from the Illinois 3.9% personal-care rate increase (about $17.5M of annualized revenue) but will be partially offset by two fewer business days in personal care and seasonal winter‑storm disruption; management expects roughly a 120‑basis‑point sequential decline in gross margin in Q1 from annual merit increases and payroll tax resets and a 2026 tax rate in the mid‑20% range. The company reiterated a disciplined capital allocation approach — cash $81.6M, total bank debt $124.3M, revolver capacity $650M with $517.7M available, net leverage under 1x adjusted EBITDA — while pursuing selective 2026 acquisitions and ongoing debt reduction (revolver balance down $98.7M in 2025). For context around guidance management cited recent results: Q4 revenue $373.1M ($371.2M excl. NY AR), Q4 adjusted EBITDA $50.3M (13.6% margin), FY2025 revenue ≈ $1.4B (+23.2%), FY2025 adjusted EBITDA $180M, Q4 cash from operations $18.8M and FY cash from operations $111.5M, noting operational trends (Personal Care same‑store revenue +6.3%, same‑store hours +2.4%; Hospice same‑store revenue +16%, ADC 3,885, median LOS 25 days) that inform their 2026 outlook.Addus Homecare Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
79
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.42B | 1.15B | 1.06B | 951.12M | 864.50M |
| Gross Profit | 461.87M | 375.02M | 339.88M | 299.74M | 269.85M |
| EBITDA | 153.44M | 120.61M | 106.56M | 83.14M | 80.70M |
| Net Income | 95.91M | 73.60M | 62.52M | 46.02M | 45.13M |
Balance Sheet | |||||
| Total Assets | 1.44B | 1.41B | 1.02B | 937.99M | 947.59M |
| Cash, Cash Equivalents and Short-Term Investments | 81.62M | 98.91M | 64.79M | 79.96M | 168.90M |
| Total Debt | 208.62M | 273.13M | 175.18M | 178.05M | 263.55M |
| Total Liabilities | 352.00M | 442.14M | 317.73M | 304.45M | 373.24M |
| Stockholders Equity | 1.09B | 970.49M | 706.69M | 633.54M | 574.34M |
Cash Flow | |||||
| Free Cash Flow | 103.79M | 110.38M | 102.79M | 96.81M | 34.84M |
| Operating Cash Flow | 111.51M | 116.43M | 112.25M | 105.11M | 39.49M |
| Investing Cash Flow | -32.50M | -354.61M | -119.24M | -106.59M | -42.02M |
| Financing Cash Flow | -96.30M | 272.30M | -8.18M | -87.45M | 26.34M |
Addus Homecare Technical Analysis
Negative
92.77
Price Trends
103.38
Negative
107.78
Negative
110.73
Negative
Market Momentum
-3.34
Positive
30.39
Neutral
19.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADUS, the sentiment is Negative. The current price of 92.77 is below the 20-day moving average (MA) of 97.56, below the 50-day MA of 103.38, and below the 200-day MA of 110.73, indicating a bearish trend. The MACD of -3.34 indicates Positive momentum. The RSI at 30.39 is Neutral, neither overbought nor oversold. The STOCH value of 19.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADUS.
Addus Homecare Risk Analysis
Addus Homecare disclosed 32 risk factors in its most recent earnings report. Addus Homecare reported the most risks in the "Ability to Sell" 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.75B | 17.67 | 11.57% | 1.80% | 23.74% | -18.99% | |
75 Outperform | $1.73B | 20.66 | 9.24% | ― | 18.77% | 6.88% | |
72 Outperform | $1.10B | 28.23 | 9.31% | ― | 29.89% | 10.33% | |
62 Neutral | $2.03B | 12.54 | 5.57% | 1.69% | -22.96% | -59.35% | |
62 Neutral | $1.16B | 78.68 | 3.12% | 2.25% | 17.50% | 154.28% | |
53 Neutral | $1.44B | 7.31 | 953.09% | ― | 15.48% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ADUS
Addus Homecare
92.77
-9.00
-8.84%
NHC
National Healthcare
176.81
87.92
98.92%
SEM
Select Medical
16.37
0.25
1.52%
USPH
US Physical Therapy
77.01
9.83
14.63%
PNTG
Pennant Group
31.67
6.61
26.38%
AVAH
Aveanna Healthcare Holdings
6.61
1.81
37.71%
Addus Homecare Corporate Events
Business Operations and StrategyFinancial Disclosures
Addus HomeCare Reports Strong Q4 and Full-Year Results
Positive
Feb 23, 2026
Addus HomeCare reported strong financial results on February 23, 2026, for the fourth quarter and full year ended December 31, 2025, driven mainly by its personal care segment and supported by hospice and home health. Fourth-quarter net service re...
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.