Addus HomeCare Reports Strong Q1 2026 Results and Expands into Indiana Market
Addus HomeCare Corporation, a leading provider of home-based care services, reported solid financial and operational performance for the first quarter ended March 31, 2026, alongside announcing a strategic expansion into the state of Indiana. The company continues to demonstrate steady growth across its service lines, supported by increasing demand for in-home care and a disciplined acquisition strategy.
Strong Financial Performance in Q1 2026
For the first quarter of 2026, Addus generated net service revenues of $363.6 million, reflecting a 7.7% increase compared to $337.7 million during the same period in 2025. This growth highlights the company’s ability to expand its client base and benefit from favorable reimbursement rate adjustments in key states.
Net income for the quarter rose to $25.1 million, up from $21.2 million a year earlier. On a per-share basis, diluted earnings increased to $1.36 compared to $1.16 in the prior-year period. Adjusted net income reached $30.0 million, representing a notable improvement over $26.0 million in the first quarter of 2025. Adjusted net income per diluted share also grew 14.1% year-over-year to $1.62, compared with $1.42 previously.
Adjusted EBITDA, a key measure of operational performance, increased 9.7% to $44.5 million, up from $40.6 million in the same quarter last year. The company also reported strong cash flow from operations totaling $52.4 million, reflecting efficient financial management and stable business operations.
Operational Highlights and Business Segment Performance
Addus’ personal care segment remained the primary driver of growth, accounting for 77.3% of total revenues. This segment experienced a 6.5% organic revenue increase year-over-year, fueled by higher service volumes and rate increases in major markets. Notably, reimbursement rates rose by 9.9% in Texas effective September 2025 and by 3.9% in Illinois starting January 2026, contributing positively to revenue growth.
The hospice care segment, which contributed 18.1% of total revenues, also delivered strong results. The business achieved 7.7% organic revenue growth compared to the prior year, supported by an increase in average daily patient census and consistent demand for end-of-life care services.
Meanwhile, the home health segment represented 4.6% of total revenue. Although smaller in scale, this segment plays a critical role in enhancing Addus’ integrated care model by providing clinical support and coordination across personal care and hospice services. The company continues to view home health as a complementary offering that strengthens its overall care continuum.
Entry into Indiana Market Through Strategic Acquisition
As part of its ongoing expansion strategy, Addus announced the acquisition of the personal care operations of HomeCourt Home Care, based in Fort Wayne, Indiana. Completed on May 1, 2026, the acquisition marks Addus’ entry into a new geographic market.
HomeCourt currently serves approximately 240 clients and generates annualized revenues of around $9.7 million. In addition to this transaction, Addus has signed a definitive agreement to acquire another personal care operation in Indiana of similar size, with the deal expected to close later in 2026.
This dual acquisition strategy underscores the company’s focus on building market density and expanding its footprint in attractive regions. Management expects the HomeCourt acquisition to be immediately accretive to earnings, contributing positively to financial performance in the near term.
Growth Strategy and Market Positioning
Addus continues to emphasize acquisitions as a core component of its growth strategy. By targeting both clinical and non-clinical service providers, the company aims to enhance its geographic coverage while creating operational efficiencies through increased scale.
The expansion into Indiana aligns with Addus’ broader objective of entering new markets with strong demand for home-based care services. At the same time, the company is focused on strengthening its presence in existing markets to improve service delivery and cost efficiency.
Management highlighted that the company’s hiring trends remained stable throughout the first quarter, despite minor disruptions caused by winter weather. This stability reflects the organization’s ability to maintain a reliable workforce—an essential factor in delivering consistent, high-quality care.
Strong Balance Sheet and Liquidity Position
Addus ended the first quarter of 2026 with a solid financial position. The company reported cash reserves of $103.1 million and total bank debt of $94.3 million. Additionally, it maintained significant borrowing capacity under its revolving credit facility, with $547.8 million available out of a total $650.0 million.
This strong liquidity position provides the company with the flexibility to pursue additional acquisitions, invest in operational improvements, and navigate potential market uncertainties. Management emphasized its commitment to maintaining a conservative leverage profile while continuing to allocate capital strategically.
Outlook for 2026
Looking ahead, Addus remains optimistic about its growth prospects for the remainder of 2026. The company expects to benefit from continued organic growth driven by increasing demand for home-based care services, favorable reimbursement trends, and the integration of newly acquired operations.
Management also anticipates additional acquisition opportunities throughout the year, supported by a strong development pipeline and a proven track record of successful deal execution. By expanding its service offerings and geographic reach, Addus aims to strengthen its position as a leading provider in the home care industry.
The company’s integrated care model—spanning personal care, hospice, and home health services—positions it well to meet evolving patient needs while delivering cost-effective solutions to healthcare systems and government programs.
Commitment to Quality Care
At the core of Addus’ success is its commitment to delivering high-quality care in the home setting. The company continues to rely on its dedicated team of caregivers, who play a vital role in supporting patients and families.
By focusing on patient-centered care and maintaining strong relationships with state partners, Addus is well-positioned to capitalize on long-term trends favoring home-based healthcare solutions.
Use of Non-GAAP Measures
The company also provided non-GAAP financial metrics, including adjusted net income, adjusted EBITDA, and adjusted earnings per share, to offer additional insight into its operational performance. These measures exclude certain non-recurring expenses such as acquisition costs and stock-based compensation, allowing for more consistent comparisons across reporting periods.
Management believes these metrics are useful for investors and stakeholders in evaluating the company’s underlying business performance and growth trajectory.
Addus HomeCare’s first quarter 2026 results reflect a strong start to the year, characterized by steady revenue growth, improved profitability, and strategic expansion into new markets. With a solid balance sheet, consistent cash flow generation, and a clear growth strategy, the company is well-positioned to build on its momentum.
As demand for home-based care continues to rise, Addus remains focused on expanding its capabilities, enhancing service delivery, and creating long-term value for patients, partners, and shareholders alike.
About Addus HomeCare
Addus HomeCare is a provider of home care services that primarily include personal care services that assist with activities of daily living, as well as hospice and home health services. Addus HomeCare’s consumers are primarily persons who, without these services, are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. Addus HomeCare’s payor clients include federal, state, and local governmental agencies, managed care organizations, commercial insurers, and private individuals. Addus HomeCare currently provides home care services to approximately 62,750 patients and consumers through 263 locations across 24 states.
