The earnings call highlighted strong revenue and cash flow performance, positive industry trends, and a strategic focus on growth and cash optimization. However, there were challenges with cost management and cash flow variability linked to new business expansions.

Company Guidance

During Healthcare Services Group, Inc.'s fourth quarter 2024 earnings call, the company reported several key metrics and provided guidance for 2025. The company reported Q4 revenue of $437.8 million, with net income and diluted EPS at $11.9 million and $0.16 respectively. Cash flow from operations was $36.2 million, with $27.0 million excluding payroll accrual changes. Looking forward, Healthcare Services Group expects mid-single digit revenue growth for 2025, estimating Q1 revenue between $440 million and $450 million. They aim to manage cost of services around 86% and SG&A expenses between 8.5% and 9.5%. The company also anticipates actual cash flow from operations in 2025, excluding payroll accrual changes, to range from $45 million to $60 million. The call highlighted optimism driven by demographic trends, industry growth, and strategic priorities, including organic growth, cost management, and cash flow optimization.

Strong Revenue and Cash Flow

Revenue for Q4 2024 was reported at $437.8 million, with a net income of $11.9 million and a cash flow from operations of $36.2 million. Excluding changes in payroll accrual, cash flow from operations was $27.0 million.

Positive Industry Trends

The industry is benefiting from a demographic tailwind, with rising occupancy rates, increased workforce availability, and stable reimbursement environments, including a 4.2% increase in Medicare rates.

2025 Growth and Strategic Priorities

The company projects mid-single digit revenue growth for 2025, with an estimated Q1 revenue range of $440 million to $450 million. Strategic priorities include driving growth, managing costs, and optimizing cash flow.

Liquidity and Capital Allocation

The company ended 2024 with $135.8 million in cash and marketable securities and a $500 million credit facility. Capital allocation priorities include organic growth, inorganic growth opportunities, and share repurchases.

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Healthcare Services (HCSG) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

HCSG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Apr 23, 2025	2025 (Q1)	0.18 / -	0.22	―	―	―
Feb 12, 2025	2024 (Q4)	0.20 / 0.16	0.2	-20.00% (-0.04)	―
Oct 23, 2024	2024 (Q3)	0.21 / 0.19	0.17	11.76% (+0.02)	―
Jul 24, 2024	2024 (Q2)	0.20 / -0.02	0.12	-116.67% (-0.14)	―
Apr 24, 2024	2024 (Q1)	0.19 / 0.22	0.17	29.41% (+0.05)	―
Feb 14, 2024	2023 (Q4)	0.16 / 0.20	0.22	-9.09% (-0.02)	―
Oct 25, 2023	2023 (Q3)	0.17 / 0.17	0	―	―
Jul 26, 2023	2023 (Q2)	0.17 / 0.12	0.09	33.33% (+0.03)	―
Apr 26, 2023	2023 (Q1)	0.13 / 0.17	0.15	13.33% (+0.02)	―
Feb 15, 2023	2022 (Q4)	0.11 / 0.22	0.03	633.33% (+0.19)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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HCSG Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 12, 2025	$10.90	$10.71	-1.74%
Oct 23, 2024	$10.29	$10.58	+2.82%
Jul 24, 2024	$11.87	$11.08	-6.66%
Apr 24, 2024	$11.95	$11.22	-6.11%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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