Addus HomeCare (NASDAQ:ADUS) Reports Q4 CY2025 In Line With Expectations

Home healthcare provider Addus HomeCare (NASDAQ:ADUS)

in Q4 CY2025, with sales up 25.6% year on year to $373.1 million. Its non-GAAP profit of $1.77 per share was 2.6% above analysts’ consensus estimates.

Is now the time to buy Addus HomeCare?

Commenting on the results, Dirk Allison, Chairman and Chief Executive Officer, said, “Our fourth quarter results marked a strong finish to a successful year of growth and progress for Addus. Net service revenues increased 25.6% and adjusted EBITDA was up 33.3% over the fourth quarter of 2024. For the full year, we achieved a new annual record of $1.4 billion in net service revenues, an increase of 23.2% compared with 2024. Continued strong demand has supported this impressive growth as an increasing number of consumers and payers benefit from the value and cost efficiency offered by our home-based care services. With solid execution, our team has done an outstanding job meeting this demand with the ability to leverage our scale and proven operating model across the care continuum. We have also benefitted from continued favorable and stable hiring trends, which support our business, especially in our personal care segment. We are fortunate to have a team of capable and dedicated caregivers who provide outstanding care as we respond to the needs of a growing number of patients and families across the markets we serve.

Company Overview

Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ:ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Addus HomeCare grew its sales at a solid 13.2% compounded annual growth rate. Its growth beat the average healthcare company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Addus HomeCare’s annualized revenue growth of 15.9% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

We can better understand the company’s revenue dynamics by analyzing its number of average billable patients, which reached 50,971 in the latest quarter. Over the last two years, Addus HomeCare’s average billable patients averaged 26.8% year-on-year growth. Because this number is better than its revenue growth, we can see the company’s average selling price decreased.

This quarter, Addus HomeCare’s year-on-year revenue growth of 25.6% was excellent, and its $373.1 million of revenue was in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 7.1% over the next 12 months, a deceleration versus the last two years. Still, this projection is above average for the sector and implies the market is baking in some success for its newer products and services.

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Operating Margin

Addus HomeCare was profitable over the last five years but held back by its large cost base. Its average operating margin of 8.6% was weak for a healthcare business.

On the plus side, Addus HomeCare’s operating margin rose by 2.1 percentage points over the last five years, as its sales growth gave it operating leverage. The company’s two-year trajectory shows its performance was mostly driven by its recent improvements.

This quarter, Addus HomeCare generated an operating margin profit margin of 11.3%, up 2.3 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Addus HomeCare’s astounding 15.2% annual EPS growth over the last five years aligns with its revenue performance. This tells us its incremental sales were profitable.

In Q4, Addus HomeCare reported adjusted EPS of $1.77, up from $1.38 in the same quarter last year. This print beat analysts’ estimates by 2.6%. Over the next 12 months, Wall Street expects Addus HomeCare’s full-year EPS of $6.24 to grow 10%.

Key Takeaways from Addus HomeCare’s Q4 Results

It was good to see Addus HomeCare beat analysts’ EPS expectations this quarter. Zooming out, we think this was a decent quarter. The stock remained flat at $117.69 immediately after reporting.

So should you invest in Addus HomeCare right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings.