The earnings call highlighted strong revenue growth and client retention, increased cash flow projections, and a positive industry outlook. However, the Genesis HealthCare restructuring significantly impacted financial results, leading to high costs and negative margins in certain segments. Despite these challenges, the company's strategic initiatives and share repurchase plan demonstrate confidence in future growth.

Company Guidance -

Q3 2025

During the second quarter of 2025, Healthcare Services Group, Inc. reported strong performance despite challenges, particularly the Genesis HealthCare restructuring. The company achieved a 7.6% year-over-year increase in revenue, reaching $458.5 million, with Environmental and Dietary Services contributing $205.8 million and $252.7 million, respectively. Despite a $61.2 million non-cash charge related to Genesis, the company raised its 2025 cash flow from operations forecast from $60 million-$75 million to $70 million-$85 million. The strategic priorities include driving growth, managing costs, and optimizing cash flow, with plans to repurchase $50 million of common stock, highlighting confidence in future growth potential. Occupancy rates remain steady, and industry fundamentals are strong, supported by legislative measures like the One Big Beautiful Bill Act. The company aims to maintain a 90%+ client retention rate, continue cross-selling opportunities, and leverage its strong balance sheet to support growth through organic and inorganic initiatives.

Revenue Growth and Client Retention

Second quarter growth exceeded expectations, marking the fifth consecutive sequential revenue increase and the highest rate of growth since Q1 2018. Revenue was $458.5 million, a 7.6% increase over the prior year, driven by new client wins and high retention. The company carried this positive momentum into the back half of the year.

Increased Cash Flow Projections

The company is raising its 2025 cash flow from operations forecast, excluding the change in payroll accrual, from $60 million to $75 million to $70 million to $85 million.

Share Repurchase Plan

Healthcare Services Group announced plans to repurchase $50 million of common stock over the next 12 months, indicating confidence in the company's long-term growth potential.

Improved Industry Fundamentals

The industry is benefiting from a demographic tailwind, with steady occupancy, increasing workforce availability, and a stable reimbursement environment. The One Big Beautiful Bill Act is expected to promote further strength and stability in the industry.

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

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HCSG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 22, 2025	2025 (Q3)	0.20 / -	0.19	―	―	―
Jul 23, 2025	2025 (Q2)	0.20 / 0.21	-0.02	1150.00% (+0.23)	―
Apr 23, 2025	2025 (Q1)	0.19 / 0.23	0.22	4.55% (+0.01)	―
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)	―

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

HCSG Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 23, 2025	$13.05	$14.63	+12.11%
Apr 23, 2025	$9.41	$12.19	+29.54%
Feb 12, 2025	$10.90	$10.71	-1.74%
Oct 23, 2024	$10.29	$10.58	+2.82%

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.