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Item 1. Financial Statements

2025-11-04 compared with 2025-08-05 · 330 added, 186 removed, 894 unchanged (37% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

As of June 30, 2025 and December 31, 2024

As of September 30, 2025 and December 31, 2024

(Amounts and Shares in Thousands, Except Per Share Data)

June 30, 2025

September 30, 2025

December 31, 2024

46 unchanged sentences

Common stock—$ .001 par value;

40,000 authorized and 18,407 and 18,148 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively

40,000 authorized and 18,483 and 18,148 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

Additional paid-in capital

10 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

For the Three and Six Months Ended June 30, 2025 and 2024

For the Three and Nine Months Ended September 30, 2025 and 2024

(Amounts and Shares in Thousands, Except Per Share Data)

For the Three Months Ended

For the Six Months Ended

For the Nine Months Ended

September 30,

Net service revenues

$ 362,301 $ 289,787 $ 1,049,452 $ 857,455

Cost of service revenues

245,586 197,583 711,183 583,916

116,715 92,204 338,269 273,539

General and administrative expenses

79,370 62,805 229,667 187,444

Depreciation and amortization

4,408 3,446 12,264 10,316

Total operating expenses

83,778 66,251 241,931 197,760

Operating income

32,937 25,953 96,338 75,779

Interest income

( 760 ) ( 1,908 ) ( 1,845 ) ( 2,805 )

Interest expense

3,343 573 10,886 5,445

Total interest expense, net

2,583 ( 1,335 ) 9,041 2,640

Income before income taxes

30,354 27,288 87,297 73,139

Income tax expense

7,506 7,125 21,169 19,067

$ 22,848 $ 20,163 $ 66,128 $ 54,072

Net income per common share

Basic income per share

$ 1.26 $ 1.13 $ 3.67 $ 3.24

Diluted income per share

$ 1.24 $ 1.10 $ 3.60 $ 3.17

Weighted average number of common shares and potential common shares outstanding:

18,072 17,868 18,031 16,707

18,390 18,255 18,365 17,065

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the Three and Six Months Ended June 30, 2025

For the Three and Nine Months Ended September 30, 2025

(Amounts and Shares in Thousands)

For the Three Months Ended June 30, 2025

For the Three Months Ended September 30, 2025

Stockholders'

Balance at April 1, 2025

Balance at July 1, 2025

18,407 $ 18 $ 602,126 $ 419,710 $ 1,021,854

Issuance of shares of common stock under restricted stock award agreements

Forfeiture of shares of common stock under restricted stock award agreements

( 2 ) — — — —

Stock-based compensation

— — 4,287 — 4,287

Shares issued for exercise of stock options

Balance at June 30, 2025

For the Six Months Ended June 30, 2025

50 — 985 — 985

— — — 22,848 22,848

Balance at September 30, 2025

18,483 $ 18 $ 607,398 $ 442,558 $ 1,049,974

For the Nine Months Ended September 30, 2025

Stockholders'

4 unchanged sentences

Shares issued for exercise of stock options

Balance at June 30, 2025

Balance at September 30, 2025

ADDUS HOMECARE CORPORATION

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the Three and Six Months Ended June 30, 2024

For the Three and Nine Months Ended September 30, 2024

(Amounts and Shares in Thousands)

For the Three Months Ended June 30, 2024

For the Three Months Ended September 30, 2024

Stockholders'

Balance at April 1, 2024

Balance at July 1, 2024

Issuance of shares of common stock under restricted stock award agreements

3 unchanged sentences

Shares issued in Public offering, net of offering costs

Balance at June 30, 2024

For the Six Months Ended June 30, 2024

Balance at September 30, 2024

For the Nine Months Ended September 30, 2024

Stockholders'

5 unchanged sentences

Shares issued in Public offering, net of offering costs

Balance at June 30, 2024

Balance at September 30, 2024

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended June 30, 2025 and 2024

For the Nine Months Ended September 30, 2025 and 2024

(Amounts in Thousands)

For the Six Months Ended

For the Nine Months Ended

September 30,

Cash flows from operating activities:

$ 66,128 $ 54,072

Adjustments to reconcile net income to net cash provided by (used in) operating activities, net of acquisitions:

Depreciation and amortization

12,264 10,316

Deferred income taxes

6 unchanged sentences

Accounts receivable

( 8,513 ) 17,868

Prepaid expenses and other current assets

Government stimulus advances

( 5,455 ) 7,890

Accounts payable

( 12,204 ) 1,003

Accrued payroll

Accrued expenses and other long-term liabilities

4,672 ( 2,698 )

Net cash provided by operating activities

92,744 106,016

Cash flows from investing activities:

Acquisitions of businesses, net of cash acquired

( 24,181 ) ( 400 )

Purchases of property and equipment

( 5,056 ) ( 4,353 )

Proceeds received from disposal of assets

2 unchanged sentences

Net cash used in investing activities

( 22,444 ) ( 124 )

Cash flows from financing activities:

Payments on revolver — credit facility

( 80,000 ) ( 126,353 )

Proceeds from borrowings on revolver — credit facility

Payments for debt issuance costs under the credit facility

( 105 ) ( 39 )

Proceeds from Public offering

1 unchanged sentence

Net cash (used in) provided by financing activities

( 67,293 ) 52,169

Net change in cash

3,007 158,061

Cash, at beginning of period

98,911 64,791

Cash, at end of period

$ 101,918 $ 222,852

Supplemental disclosures of cash flow information:

Cash paid for interest

$ 10,071 $ 4,801

Cash paid for income taxes

26 unchanged sentences

The following table sets forth the computation of basic and diluted common shares:

For the Three Months Ended June 30,

For the Six Months Ended June 30,

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(Amounts in thousands)

6 unchanged sentences

Restricted stock awards

108 109 117 104

Adjusted weighted average shares for diluted per share calculation

16 unchanged sentences

The Company is currently assessing the impact and timing of adopting the updated provisions.

In July 2025, the FASB issued ASU 2025 - 05, Measurement of Credit Losses for Accounts Receivable and Contract Assets , which replaces the incurred-loss model with a forward-looking current expected credit loss model that requires recognition of lifetime expected credit losses on financial assets measured at amortized cost and certain off-balance-sheet credit exposures (including trade accounts receivable and contract assets), using historical experience, current conditions, and reasonable and supportable forecasts.

ASU 2025 - 05 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted.

The disclosure updates should be applied prospectively.

The Company is currently assessing the impact and timing of adopting the updated provisions.

Effective May 20, 2024, the Company entered into a definitive asset purchase agreement to sell all of the Company’s New York operations for a purchase price of up to $ 23.0 million in cash, subject to certain adjustments, including adjustments for future operating requirements (the “New York Asset Sale”).

5 unchanged sentences

In connection with this transaction, the Company ceased operations in New York.

During the six months ended June 30, 2025 , the Company recorded deferred payments of $ 3.8 million with the remaining $ 2.3 million due from the purchaser reflected within prepaid expenses and other current assets on the condensed consolidated balance sheets as of June 30, 2025 .

During the nine months ended September 30, 2025 , the Company recorded deferred payments of $ 3.8 million with the remaining $ 2.3 million due from the purchaser reflected within prepaid expenses and other current assets on the condensed consolidated balance sheets as of September 30, 2025 .

No amount was recorded related to the CDPAP business contingent consideration.

1 unchanged sentence

Goodwill and intangible assets of $ 2.9 million and $ 4.2 million, respectively, were derecognized in connection with the divestiture.

The carrying amounts of the assets and liabilities associated with the New York personal care operations included in our Consolidated Balance Sheets as of June 30, 2025 were as follows (amounts in thousands):

June 30, 2025

The carrying amounts of the assets and liabilities associated with the New York personal care operations included in our Consolidated Balance Sheets as of September 30, 2025 were as follows (amounts in thousands):

September 30, 2025

Current assets

16 unchanged sentences

Amounts reported on the Company’s Unaudited Condensed Consolidated Balance Sheets for operating leases were as follows:

June 30, 2025

September 30, 2025

December 31, 2024

1 unchanged sentence

Operating lease assets, net

$ 44,879 $ 47,348

Short-term operating lease liabilities

13,031 12,800

Long-term operating lease liabilities

38,814 41,883

Total operating lease liabilities

$ 51,845 $ 54,683

Components of lease costs were reported in general and administrative expenses in the Company’s Unaudited Condensed Consolidated Statements of Income as follows:

For the Three Months Ended June 30,

For the Six Months Ended June 30,

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(Amounts in Thousands)

1 unchanged sentence

Operating lease costs

$ 3,623 $ 3,393 $ 10,931 $ 10,062

Short-term lease costs

292 167 847 547

Total lease costs

3,915 3,560 11,778 10,609

sublease income

— ( 596 ) ( 226 ) ( 1,685 )

Total lease costs, net

$ 3,915 $ 2,964 $ 11,552 $ 8,924

Lease Term and Discount Rate

Weighted average remaining lease terms and discount rates were as follows:

June 30, 2025

September 30, 2025

December 31, 2024

2 unchanged sentences

Weighted average discount rate

6.37 % 6.20 %

Maturity of Lease Liabilities

Remaining operating lease payments as of June 30, 2025 were as follows:

Remaining operating lease payments as of September 30, 2025 were as follows:

Operating Leases

(Amounts in Thousands)

Due in the 12-month period ended June 30,

Due in the 12-month period ended September 30,

Total future minimum rental commitments

2 unchanged sentences

Supplemental Cash Flows Information

For the Six Months Ended June 30,

For the Nine Months Ended September 30,

(Amounts in Thousands)

1 unchanged sentence

Operating cash flows from operating leases

$ 12,505 $ 10,925

Right-of-use assets obtained in exchange for lease obligations:

Operating leases

$ 7,156 $ 7,683

The Company’s acquisitions have been accounted for in accordance with ASC Topic 805, Business Combinations , and the resulting goodwill and other intangible assets were accounted for under ASC Topic 350, Goodwill and Other Intangible Assets .

Under business combination accounting, the assets and liabilities are generally recognized at their fair values and the difference between the consideration transferred, excluding transaction costs, and the fair values of the assets and liabilities is recognized as goodwill.

The results of each business acquisition are included on the Unaudited Condensed Consolidated Statements of Income from the date of acquisition.

Management’s assessment of qualitative factors affecting goodwill for each acquisition includes estimates of market share at the date of purchase, ability to grow in the market, synergy with existing Company operations and the payor profile in the markets.

Helping Hands

On August 1, 2025, the Company completed the acquisition of Helping Hands Home Care Service, Inc., a Pennsylvania corporation (the “Helping Hands Acquisition”), for approximately $ 21.4 million.

The purchase was funded through the Company’s revolving credit facility and available cash.

With the Helping Hands Acquisition, the Company expanded its services within its personal care segment and entered the hospice and home health markets in Pennsylvania.

The related acquisition and integration costs were $ 0.3 million and $ 0.1 million for the three months ended September 30, 2025, and $ 0.9 million and $ 0.1 million for the nine months ended September 30, 2025, respectively.

These costs were included in general and administrative expenses on the Unaudited Condensed Consolidated Statements of Income and were expensed as incurred.

Total (Amounts in Thousands)

Identifiable intangible assets

Accounts receivable

Property and equipment

Operating lease assets, net

Other current assets

Accounts payable

Accrued payroll

Operating lease liabilities, total

Total purchase price

Identifiable intangible assets acquired included $ 1.2 million of definite-lived state licenses.

The preliminary estimated fair value of identifiable intangible assets was determined with the assistance of a valuation specialist, using Level 3 inputs as defined under ASC Topic 820.

The fair value analysis and related valuations reflect the conclusions of management.

All estimates, key assumptions, and forecasts were either provided by or reviewed by the Company.

The goodwill and intangible assets acquired are deductible for tax purposes.

The Helping Hands Acquisition accounted for $ 3.1 million of net service revenues and $ 0.4 million of operating income for each of the three and nine months ended September 30, 2025, respectively.

The following table contains unaudited pro forma condensed consolidated income statement information of the Company for the three and nine months ended September 30, 2025 as if the Helping Hands Acquisition closed on January 1, 2024.

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(Amounts in Thousands)

(Amounts in thousands)

Net service revenues

$ 364,001 $ 293,804 $ 1,060,396 $ 868,481

Operating income

32,153 26,486 97,372 76,915

22,327 20,555 67,120 54,908

Net income per common share

Basic income per share

$ 1.24 $ 1.15 $ 3.72 $ 3.29

Diluted income per share

$ 1.21 $ 1.13 $ 3.65 $ 3.22

Goodwill and Intangible Assets

8 unchanged sentences

26 ( 4,096 ) ( 342 ) ( 4,412 )

Goodwill as of June 30, 2025

Goodwill as of September 30, 2025

$ 432,866 $ 460,837 $ 94,850 $ 988,553

3 unchanged sentences

With the Great Lakes Acquisition, the Company expanded its personal care segment in Michigan and recognized goodwill in its personal care segment of $ 2.6 million.

During the three and six months ended June 30, 2025, the Company recorded $2.5 million and $ 4.1 million, respectively, related to measurement period adjustments to previously recorded goodwill including $2.9 million of proceeds received in connection with the Gentiva Acquisition.

In connection with the Helping Hands Acquisition, the Company recognized goodwill in its personal care segm ent of $ 19.1 million during the ni ne months ended September 30, 2025.

During the three and nine months ended September 30, 2025 , the Company recorded $ 0.3 million and $ 4.4 million, respectively, related to measurement period adjustments to previously recorded goodwill including $ 2.9 million of proceeds received in connection with the Gentiva Acquisition.

The Company’s identifiable intangible assets consist of customer and referral relationships, trade names and trademarks, non-competition agreements, and state licenses.

2 unchanged sentences

The carrying amount and accumulated amortization of each identifiable intangible asset category consisted of the following:

June 30, 2025

September 30, 2025

December 31, 2024

18 unchanged sentences

$ 173,454 $ ( 69,053 ) $ 104,401 $ 172,304 $ ( 62,661 ) $ 109,643

Amortization expense related to the intangible assets was $ 2.0 million and $ 4.0 million for the three and six months ended June 30, 2025 , respectively, and $ 1.8 million and $ 3.6 million for the three and six months ended June 30, 2024 , respectively.

The weighted average remaining useful lives of identifiable intangible assets as of June 30, 2025 was 9.45 years.

In connection with the Helping Hands Acquisition, the Company recognized state licenses of $ 1.2 million in its personal care segment during the nine months ended September 30, 2025.

Amortization expense related to the intangible assets was $ 2.4 million and $ 6.4 million for the three and nine months ended September 30, 2025 , respectively, and $ 1.8 million and $ 5.4 million for the three and nine months ended September 30, 2024 , respectively.

The weighted average remaining useful lives of identifiable intangible assets as of September 30, 2025 was 9.28 years.

Details of Certain Balance Sheet Accounts

Prepaid expenses and other current assets consisted of the following:

June 30, 2025

September 30, 2025

December 31, 2024

1 unchanged sentence

Income tax receivable

$ 2,255 $ 11,568

Prepaid payroll

3 unchanged sentences

Total prepaid expenses and other current assets

Included $ 2.3 million and $ 6.1 million related to the New York Asset Sale deferred payments as of June 30, 2025 and December 31, 2024 , respectively.

$ 24,693 $ 38,591

Included $ 2.3 million and $ 6.1 million related to the New York Asset Sale deferred payments as of September 30, 2025 and December 31, 2024 , respectively.

Accrued expenses consisted of the following:

June 30, 2025

September 30, 2025

December 31, 2024

1 unchanged sentence

Accrued health benefits

$ 6,602 $ 6,637

Accrued professional fees

Accrued payroll and other taxes

14,508 12,438

Total accrued expenses

$ 32,942 $ 28,959

ARPA Spending Plans

5 unchanged sentences

Funds may be subject to recoupment if not expended or if they are expended on non-approved uses.

During the three and six months ended June 30, 2025 , the Company did not receive additional state funding provided by the ARPA.

Of the total state funding received by the Company pursuant to the ARPA through June 30, 2025 , the Company utilized $ 0.8 million and $ 3.3 million during the three and six months ended June 30, 2025 , respectively, primarily for caregivers and adding support to recruiting and retention efforts, included as a reduction of cost of service revenues in the Company’s Unaudited Condensed Consolidated Statements of Income.

As of June 30, 2025 , the deferred portion of ARPA funding of $ 7.9 million is included within Government stimulus advances on the Company’s Unaudited Condensed Consolidated Balance Sheets.

During the three and nine months ended September 30, 2025 , the Company did not receive additional state funding provided by the ARPA.

Of the total state funding received by the Company pursuant to the ARPA through September 30, 2025 , the Company utilized $ 2.2 million and $ 5.5 million during the three and nine months ended September 30, 2025 , respectively, primarily for caregivers and adding support to recruiting and retention efforts, included as a reduction of cost of service revenues in the Company’s Unaudited Condensed Consolidated Statements of Income.

As of September 30, 2025 , the deferred portion of ARPA funding of $ 5.8 million is included within Government stimulus advances on the Company’s Unaudited Condensed Consolidated Balance Sheets.

Long-Term Debt

Long-term debt consisted of the following:

June 30, 2025

September 30, 2025

December 31, 2024

22 unchanged sentences

The Credit Agreement also contains restrictions on guarantees, indebtedness, liens, investments, and loans, subject to customary carve outs, a restriction on dividends (provided that Addus HealthCare may make distributions to the Company in an amount that does not exceed $ 10.0 million in any year absent of an event of default, plus limited exceptions for tax and administrative distributions), a restriction on the ability to consummate acquisitions (without the consent of the lenders) under its credit facility subject to compliance with the Total Net Leverage Ratio (as defined in the Credit Agreement) thresholds, restrictions on mergers, dispositions of assets, and affiliate transactions, and restrictions on fundamental changes and lines of business.

During the six months ended June 30, 2025 , the Company did not draw on its credit facility and repaid $ 50.0 million under its revolving credit facility.

As of June 30, 2025 , the Company had a total of $ 173.0 million of revolving loans, with an interest rate of 6.07 %, outstanding on its credit facility.

During the nine months ended September 30, 2025 , the Company (i) drew approximately $11.3 million under its credit facility to fund, in part, the Helping Hands Acquisition, and (ii) repaid $ 80.0 million under the revolving credit facility.

As of September 30, 2025 , the Company had a total of $ 154.3 million of revolving loans, with an interest rate of 5.92 %, outstanding on its credit facility.

After giving effect to the amount drawn on its credit facility, approximately $ 7.9 million of outstanding letters of credit and borrowing limits based on an advance multiple of adjusted EBITDA (as defined in the Credit Agreement), the Company had $ 650.0 million of capacity and $ 487.7 million available for borrowing under its credit facility.

As of December 31, 2024 , the Company had a total of $ 223.0 million of revolving loans, with an interest rate of 6.34 %, outstanding on its credit facility.

As of June 30, 2025 , the Company was in compliance with all financial covenants under the Credit Agreement.

The effective income tax rates were 26.4 % and 26.3 % for the three months ended June 30, 2025 and 2024 , respectively.

The effective income tax rates were 24.0 % and 26.0 % for the six months ended June 30, 2025 and 2024 , respectively.

For the three months ended June 30, 2025 , the difference between our federal statutory and effective income tax rates was principally due to the inclusion of state taxes, non-deductible compensation and an excess tax expense, partially offset by the use of federal employment tax credits.

For both the three months ended June 30, 2025 and 2024 , the effective tax rates were inclusive of an excess tax expense and tax benefit of 0.1 %, respectively.

As of September 30, 2025 , the Company was in compliance with all financial covenants under the Credit Agreement.

The effective income tax rates were 24.7 % and 26.1 % for the three months ended September 30, 2025 and 2024 , respectively.

The effective income tax rates were 24.3 % and 26.1 % for the nine months ended September 30, 2025 and 2024 , respectively.

For the three months ended September 30, 2025 , the difference between our federal statutory and effective income tax rates was principally due to the inclusion of state taxes, non-deductible compensation, partially offset by the use of federal employment tax credits and an excess tax benefit.

For both the three months ended September 30, 2025 and 2024 , the effective tax rates were inclusive of an excess tax benefit of 3.6 % and 0.5 % , respectively.

The excess tax expense and tax benefit are discrete items, related to the vesting of equity shares, which requires the Company to recognize the expense or benefit fully in the period.

18 unchanged sentences

The tables below set forth information about the Company’s reportable segments, along with the items necessary to reconcile the segment information to the totals reported in the accompanying Unaudited Condensed Consolidated Financial Statements.

For the Three Months Ended June 30, 2025

For the Three Months Ended September 30, 2025

(Amounts in Thousands)

18 unchanged sentences

Other segment items include other costs for direct service personnel, office expense, licenses and taxes, communication, medical director fees, travel, and bad debt expense.

For the Three Months Ended June 30, 2024

For the Three Months Ended September 30, 2024

(Amounts in Thousands)

18 unchanged sentences

Other segment items include other costs for direct service personnel, office expense, licenses and taxes, communication, medical director fees, travel, and bad debt expense.

For the Six Months Ended June 30, 2025

For the Nine Months Ended September 30, 2025

(Amounts in Thousands)

18 unchanged sentences

Other segment items include other costs for direct service personnel, office expense, licenses and taxes, communication, medical director fees, travel, and bad debt expense

For the Six Months Ended June 30, 2024

For the Nine Months Ended September 30, 2024

(Amounts in Thousands)

21 unchanged sentences

Personal Care Segment

For the Three Months Ended June 30,

For the Six Months Ended June 30,

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

3 unchanged sentences

State, local and other governmental programs

$ 139,383 50.5 % $ 116,702 54.2 % $ 410,781 51.1 % $ 337,458 53.0 %

Managed care organizations

127,293 46.2 93,321 43.3 366,210 45.6 281,732 44.3

7,064 2.5 3,599 1.7 21,331 2.7 11,194 1.8

Commercial insurance

1,860 0.7 1,415 0.7 4,356 0.5 4,368 0.7

170 0.1 396 0.1 560 0.1 1,501 0.2

Total personal care segment net service revenues

$ 275,770 100.0 % $ 215,433 100.0 % $ 803,238 100.0 % $ 636,253 100.0 %

Hospice Segment

For the Three Months Ended June 30,

For the Six Months Ended June 30,

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

2 unchanged sentences

(in Thousands)

$ 64,148 93.1 % $ 52,413 91.5 % $ 178,784 92.9 % $ 154,187 91.1 %

Commercial insurance

2,140 3.1 2,892 5.0 6,518 3.4 8,870 5.2

Managed care organizations

2,216 3.2 1,821 3.2 6,245 3.2 5,518 3.3

387 0.6 183 0.3 993 0.5 627 0.4

Total hospice segment net service revenues

$ 68,891 100.0 % $ 57,309 100.0 % $ 192,540 100.0 % $ 169,202 100.0 %

Home Health Segment

For the Three Months Ended June 30,

For the Six Months Ended June 30,

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

2 unchanged sentences

(in Thousands)

$ 11,617 65.9 % $ 12,036 70.6 % $ 36,711 68.4 % $ 36,216 69.6 %

Managed care organizations

4,492 25.5 4,215 24.7 12,564 23.4 13,291 25.6

State, local and other governmental programs (excluding Medicare)

993 5.6 ( 17 ) — 2,878 5.3 — —

538 3.0 811 4.7 1,521 2.9 2,493 4.8

Total home health segment net service revenues

$ 17,640 100.0 % $ 17,045 100.0 % $ 53,674 100.0 % $ 52,000 100.0 %

The Company derives a significant amount of its revenue from its operations in Illinois, New Mexico, Ohio, Tennessee, and Texas.

The percentages of segment revenue for each of these significant states and New York for the three and six months ended June 30, 2025 and 2024 , respectively, were as follows:

The percentages of segment revenue for each of these significant states and New York for the three and nine months ended September 30, 2025 and 2024 , respectively, were as follows:

Personal Care Segment

For the Three Months Ended June 30,

For the Six Months Ended June 30,

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

2 unchanged sentences

(in Thousands)

$ 115,989 42.1 % $ 111,916 51.9 % $ 342,629 42.7 % $ 330,265 51.9 %

30,029 10.9 28,962 13.4 87,320 10.9 86,573 13.6

( 318 ) — 21,406 9.9 ( 104 ) — 68,239 10.7

53,449 19.4 — — 155,773 19.4 — —

All other states

76,621 27.6 53,149 24.8 217,620 27.0 151,176 23.8

Total personal care segment net service revenues

$ 275,770 100.0 % $ 215,433 100.0 % $ 803,238 100.0 % $ 636,253 100.0 %

As a result of changes and uncertainty in New York regarding the CDPAP, the Company determined that its New York personal care operations no longer fit its growth strategy and is divesting these operations.

1 unchanged sentence

Hospice Segment

For the Three Months Ended June 30,

For the Six Months Ended June 30,

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

2 unchanged sentences

(in Thousands)

$ 26,913 39.1 % $ 21,531 37.6 % $ 73,304 38.1 % $ 62,400 36.9 %

15,532 22.5 13,289 23.2 44,516 23.1 38,544 22.8

8,769 12.7 6,951 12.1 24,865 12.9 21,361 12.6

All other states

17,677 25.7 15,538 27.1 49,855 25.9 46,897 27.7

Total hospice segment net service revenues

$ 68,891 100.0 % $ 57,309 100.0 % $ 192,540 100.0 % $ 169,202 100.0 %

Home Health Segment

For the Three Months Ended June 30,

For the Six Months Ended June 30,

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

2 unchanged sentences

(in Thousands)

$ 8,644 49.0 % $ 8,090 47.4 % $ 25,937 48.3 % $ 24,166 46.5 %

6,852 38.8 6,542 38.4 21,672 40.4 19,437 37.4

1,759 10.0 2,413 14.2 5,680 10.6 8,397 16.1

All other states

385 2.2 — — 385 0.7 — —

Total home health segment net service revenues

$ 17,640 100.0 % $ 17,045 100.0 % $ 53,674 100.0 % $ 52,000 100.0 %

A substantial portion of the Company’s revenue and accounts receivable are derived from services performed for federal, state, and local governmental agencies.

The personal care segment derives a significant amount of its net service revenues in Illinois, which represented 33.0 % and 38.6 % of our net service revenues for the three months ended June 30, 2025 and 2024 , respectively, and accounted for 33.0 % and 38.5 % of our net service revenues for the six months ended June 30, 2025 and 2024 , respectively.

The Illinois Department on Aging, the largest payor program for the Company’s Illinois personal care operations, accounted for 18.6 % and 21.1 % of the Company’s net service revenues for the three months ended June 30, 2025 and 2024 , respectively, and accounted for 18.6 % and 20.9 % of the Company’s net service revenues for the six months ended June 30, 2025 and 2024 , respectively.

The related receivables due from the Illinois Department on Aging represented 19.0 % and 21.7 % of the Company’s net accounts receivable at June 30, 2025 and December 31, 2024 , respectively.

The personal care segment derives a significant amount of its net service revenues in Illinois, which represented 32.0 % and 38.6 % of our net service revenues for the three months ended September 30, 2025 and 2024 , respectively, and accounted for 32.6 % and 38.5 % of our net service revenues for the nine months ended September 30, 2025 and 2024 , respectively.

The Illinois Department on Aging, the largest payor program for the Company’s Illinois personal care operations, accounted for 18.1 % and 21.4 % of the Company’s net service revenues for the three months ended September 30, 2025 and 2024 , respectively, and accounted for 18.4 % and 21.1 % of the Company’s net service revenues for the nine months ended September 30, 2025 and 2024 , respectively.

The related receivables due from the Illinois Department on Aging represented 16.6 % and 21.7 % of the Company’s net accounts receivable at September 30, 2025 and December 31, 2024 , respectively.

Subsequent Events

On August 1, 2025, the Company completed the acquisition of Helping Hands Home Care Service, Inc., a Pennsylvania corporation (“Helping Hands”), for approximately $ 21.3 million.

The purchase was funded through the Company’s revolving credit facility and available cash.

With the purchase of Helping Hands, the Company expanded its services within its personal care segment and entered the hospice and home health markets in Pennsylvania.

On October 1, 2025 , the Company completed the acquisition of the assets of Gold Horses, LLC for approximately $ 7.4 million (the “Gold Horses Acquisition”).

The purchase was funded through the Company’s available cash.

The Gold Horses Acquisition expanded the Company ’ s services within its personal care segment in Texas.

The initial accounting is not yet complete, and therefore the related business combination disclosures have not been presented as the Company is currently in the process of valuing the assets acquired and liabilities assumed in the transaction.

On July 4, 2025, H.R.

1, commonly known as the “One Big Beautiful Bill Act” (the “OBBBA”), was enacted into law.

The OBBBA includes several provisions, including the permanent extension of several business tax benefits originally introduced under the 2017 Tax Cuts and Jobs Act.

The Company is currently evaluating the impact of the legislation on its condensed consolidated financial statements.

MANAGEMENT ’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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These risks and uncertainties include, but are not limited to:

the impact of macroeconomic conditions, including significant global inflation and interest rates, legislative and political developments, including any hold on or cancellation of congressionally authorized spending or interruptions in the distribution of government funds, trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, and the potential adverse effects of current conditions;

the impact of macroeconomic conditions, including significant global inflation and interest rates, legislative and political developments, including federal government shutdowns, any lapse in appropriations and any hold on or cancellation of congressionally authorized spending or interruptions in the distribution of government funds, trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, and the potential adverse effects of current conditions;

business disruptions due to inclement weather, natural disasters, acts of terrorism, military conflicts, pandemics, civil insurrection or social unrest;

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Our consumers are predominantly “dual eligible,” meaning they are eligible to receive both Medicare and Medicaid benefits.

Managed care organizations accounted for 35.6% and 34.2% of our net service revenues during the three months ended June 30, 2025 and 2024, respectively, and 35.6% and 34.2% of our net service revenues during the six months ended June 30, 2025 and 2024, respectively.

Managed care organizations accounted for 37.0% and 34.3% of our net service revenues during the three months ended September 30, 2025 and 2024, respectively, and 36.7% and 35.1% of our net service revenues during the nine months ended September 30, 2025 and 2024, respectively.

A summary of certain consolidated financial results is provided in the table below.

For the Three Months Ended June 30,

For the Six Months Ended June 30,

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

Net service revenues by segment:

3 unchanged sentences

Total net service revenue

As of June 30, 2025, we provided our services in 23 states through 260 offices.

We served approximately 78,000 and 70,000 discrete individuals, respectively, during the six months ended June 30, 2025 and 2024.

As of September 30, 2025, we provided our services in 23 states through 265 offices.

We served approximately 96,000 and 80,000 discrete individuals, respectively, during the nine months ended September 30, 2025 and 2024.

Our personal care segment also includes staffing services, with clients including assisted living facilities, nursing homes, and hospice facilities.

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With the Great Lakes Acquisition, the Company expanded its personal care segment in Michigan and recognized goodwill in its personal care segment of $2.6 million.

On August 1, 2025, the Company completed the Helping Hands Acquisition, for approximately $21.4 million, with funding through the Company’s revolving credit facility and available cash.

With the purchase of Helping Hands, the Company expanded its services within its personal care segment and entered the hospice and home health markets in Pennsylvania and recognized goodwill in its personal care segment of $19.0 million.

New York Asset Sale

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Personal Care Segment

For the Three Months Ended June 30,

For the Six Months Ended June 30,

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

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Hospice Segment

For the Three Months Ended June 30,

For the Six Months Ended June 30,

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

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Home Health Segment

For the Three Months Ended June 30,

For the Six Months Ended June 30,

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

5 unchanged sentences

Total home health segment net service revenues

All other states

Total home health segment net service revenues

The personal care segment derives a significant amount of its net service revenues in Illinois, which represented 33.0% and 38.6% of our net service revenues for the three months ended June 30, 2025 and 2024, respectively, and accounted for 33.0% and 38.5% of our net service revenues for the six months ended June 30, 2025 and 2024, respectively.

A significant amount of our net service revenues are derived from one payor, the Illinois Department on Aging, the largest payor program for our Illinois personal care operations, which accounted for 18.6% and 21.1% of our net service revenues for the three months ended June 30, 2025 and 2024, respectively, and accounted for 18.6% and 20.9% of our net service revenues for the six months ended June 30, 2025 and 2024, respectively.

The personal care segment derives a significant amount of its net service revenues in Illinois, which represented 32.0% and 38.6% of our net service revenues for the three months ended September 30, 2025 and 2024, respectively, and accounted for 32.6% and 38.5% of our net service revenues for the nine months ended September 30, 2025 and 2024, respectively.

A significant amount of our net service revenues are derived from one payor, the Illinois Department on Aging, the largest payor program for our Illinois personal care operations, which accounted for 18.1% and 21.4% of our net service revenues for the three months ended September 30, 2025 and 2024, respectively, and accounted for 18.4% and 21.1% of our net service revenues for the nine months ended September 30, 2025 and 2024, respectively.

Changes in Illinois Reimbursement

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CMS approved an amendment to Illinois’ Persons Who are Elderly waiver program that included this rate increase, effective January 1, 2025.

The Illinois fiscal year 2026 budget includes an increase in hourly rates for in-home care services to $30.80, to take effect January 1, 2026, subject to standard federal approval.

The Illinois fiscal year 2026 budget includes an increase in hourly rates for in-home care services to $30.80, to take effect January 1, 2026, subject to federal approval.

This rate sustains a minimum wage of $18.75 per hour for direct service workers.

3 unchanged sentences

Changes in Texas Reimbursement

The Texas fiscal year 2026 budget includes an increase in hourly rates to $17.13 for in-home care services effective September 1, 2025, subject to standard federal approval.

The Texas fiscal year 2026 budget includes an increase in hourly rates to $17.13 for in-home care services effective September 1, 2025.

Impact of Changes in Medicare and Medicaid Reimbursement

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In addition, recent actions by the presidential administration have resulted in holds on or cancellations of congressionally authorized spending as well as interruptions in the distribution of governmental funds.

Home care and other healthcare providers may be significantly impacted by changes to the Medicaid program, including changes resulting from legislation and administrative actions at the federal and state levels.

Federal actions may impact funding for, or the structure of, the Medicaid program, including through changes to Medicaid waiver programs, and may shape provider reimbursement rates, eligibility and coverage policies, and other aspects of state Medicaid programs.

For example, the OBBBA includes policy changes that are expected to eventually result in significant cuts to federal healthcare spending, including significant changes to the Medicaid program, if fully implemented as enacted.

The OBBBA limits eligibility for Medicaid through work requirements for some populations, reduces federal Medicaid funding and expands cost-sharing obligations for certain enrollees.

Among other changes, the law makes significant changes to Medicaid financing mechanisms, including restrictions on provider tax arrangements that are intended to reduce the federal matching funds received by state Medicaid programs.

In addition, the OBBBA, if implemented as enacted, would require eligibility redeterminations at least every six months for individuals covered under Medicaid expansion, with state compliance required by December 31, 2026.

The law also would eventually prohibit states from establishing new provider taxes or increasing rates of existing provider taxes while also limiting the structure of such taxes.

Future Medicaid reform initiatives at the federal and state levels may result in further reductions to Medicaid expenditures and involve additional administrative changes.

Changes resulting from legislation and administrative actions at the federal and state levels, may impact home care and other healthcare providers.

Federal and state actions may impact funding for, or the structure of, the Medicaid program, including through changes to Medicaid waiver programs, and may shape provider reimbursement rates, eligibility and coverage policies, and other aspects of state Medicaid programs.

For example, the budget reconciliation legislation enacted on July 4, 2025, commonly known as the “One Big Beautiful Bill Act” (“OBBBA”), includes policy changes that are expected to reduce federal healthcare spending, including through changes to the Medicaid program, if the law is implemented as enacted.

The OBBBA requires changes to Medicaid financing mechanisms such as provider taxes and state-directed payment arrangements.

These changes may prohibit states from establishing new provider taxes or increasing rates of existing provider taxes, and may limit the structure and applicability of such taxes, with greater restrictions in states that have expanded Medicaid.

Some of these changes, which will be phased in over time, are intended to reduce the federal matching funds received by state Medicaid programs.

In addition, the OBBBA limits Medicaid eligibility and increases administrative and financial obligations for states and enrollees, although most of these reforms are focused on adults in the Medicaid expansion population.

Future Medicaid reform initiatives at the federal and state levels may further reduce Medicaid expenditures and involve additional administrative changes.

Reduced funding for Medicaid or other changes to Medicaid programs, including Medicaid waiver programs, could put pressure on state budgets and result in reductions to Medicaid payments, scope of coverage and enrollment.

Such reductions could, in turn, affect our reimbursements for services rendered.

We expect the impact of the OBBBA on the home care business will be less significant than the impact on other healthcare businesses.

We expect the impact of the OBBBA on home care businesses, including our business, will be less significant than the impact on other healthcare businesses.

The federal deficit and other federal and state budgetary pressures affect government healthcare program expenditures, and we anticipate that these effects will continue.

For example, the OBBBA is expected to decrease federal healthcare spending, particularly with respect to Medicaid, and is generally expected to have a significant impact on state budgets, which may result in state-level changes such as reductions to the scope of covered services or tax increases.

For example, the OBBBA is expected to decrease federal healthcare spending, particularly with respect to Medicaid, and is generally expected to increase pressures on state budgets, particularly in Medicaid expansion states.

The impact on state budgets may result in state-level changes such as reductions to the scope of covered services or tax increases.

In addition, the OBBBA increases the federal budget deficit in a manner that triggers a statutorily mandated sequestration under the Pay-As-You-Go Act of 2010.

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It is possible that future deficit reduction legislation will impose additional spending reductions.

The federal government entered a partial shutdown effective October 1, 2025.

Although Medicare and Medicaid reimbursement generally remains available through a shutdown and we are not currently experiencing delays in payment, we may be exposed to indirect effects related to government agencies operating at reduced capacity and lack of congressional action on significant issues.

Components of our Statements of Income

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We incur state and local taxes in states in which we operate.

The effective income tax rates were 26.4% and 26.3% for the three months ended June 30, 2025 and 2024, respectively.

The effective income tax rates were 24.0% and 26.0% for the six months ended June 30, 2025 and 2024, respectively, compared to our federal statutory rate of 21%.

The effective income tax rates were 24.7% and 26.1% for the three months ended September 30, 2025 and 2024, respectively.

The effective income tax rates were 24.3% and 26.1% for the nine months ended September 30, 2025 and 2024, respectively, compared to our federal statutory rate of 21%.

The difference between our federal statutory and effective income tax rates was principally due to the inclusion of state taxes, non-deductible compensation, excess tax expense or benefit and the use of federal employment tax credits.

Results of Operations — Consolidated

Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024

The following table sets forth our unaudited condensed consolidated results of operations.

For the Three Months Ended June 30,

For the Three Months Ended September 30,

(Amounts in Thousands, Except Percentages)

10 unchanged sentences

Income tax expense

Net service revenues increased by 21.8% to $349.4 million for the three months ended June 30, 2025 compared to $286.9 million for the three months ended June 30, 2024.

Revenue increased by $56.4 million in our personal care segment, by $6.2 million in our hospice segment and remained constant at approximately $18.1 million in our home health segment during the three months ended June 30, 2025 , compared to the same period in 2024 .

The increase in our personal care segment was primarily due to the completion of the Gentiva Acquisition on December 2, 2024.

Net service revenues increased by 25.0% to $362.3 million for the three months ended September 30, 2025 compared to $289.8 million for the three months ended September 30, 2024 .

Revenue increased by $60.3 million in our personal care segment, by $11.6 million in our hospice segment and by $0.6 million in our home health segment during the three months ended September 30, 2025 , compared to the same period in 2024 .

The increase in our personal care segment was primarily due to the completion of the Gentiva Acquisition on December 2, 2024 and the Helping Hands Acquisition on August 1, 2025.

The increase in our hospice segment revenue was due to organic growth.

Gross profit, expressed as a percentage of net service revenues, increased to 32.6% fo r the three months ended June 30, 2025, compared to 32.5% for the same period in 2024 due to growth in our higher margin hospice segment and the New York Asset Sale.

General and administrative expenses increased to $77.1 million for the three months ended June 30, 2025, as compared to $63.6 million for the three months ended June 30, 2024.

The increase in general and administrative expenses was primarily due to the Gentiva Acquisition that resulted in an increase in administrative employee wage, bonus, tax, and benefit costs of $9.0 million.

General and administrative expenses, expressed as a percentage of net service revenues, decreased to 22.1% for the three months ended June 30, 2025, from 22.2% for the three months ended June 30, 2024.

Interest expense increased to $3.5 million for the three months ended June 30, 2025 from $2.1 million for the three months ended June 30, 2024.

The increase in interest expense was primarily due to higher average outstanding borrowings held under our credit facility for the three months ended June 30, 2025,compared to the three months ended June 30, 2024.

Gross profit, expressed as a percentage of net service revenues, increased to 32.2% for the three months ended September 30, 2025 , compared to 31.8% for the same period in 2024 due to growth in our higher margin hospice segment and the New York Asset Sale.

General and administrative expenses increased to $79.4 million for the three months ended September 30, 2025 , as compared to $62.8 million for the three months ended September 30, 2024 .

The increase in general and administrative expenses was primarily due to a non-recurring $1.5 million recruitment expense as well as the Gentiva and Helping Hands Acquisitions that resulted in an increase in administrative employee wage, bonus, tax, and benefit costs of $10.3 million.

General and administrative expenses, expressed as a percentage of net service revenues, marginally increased to 21.9% for the three months ended September 30, 2025 , from 21.7% for the three months ended September 30, 2024 .

Interest expense increased to $3.3 million for the three months ended September 30, 2025 from $0.6 million for the three months ended September 30, 2024 .

The increase in interest expense was primarily due to higher average outstanding borrowings held under our credit facility for the three months ended September 30, 2025 ,compared to the three months ended September 30, 2024 .

All of our income is from domestic sources.

We incur state and local taxes in states in which we operate.

The effective income tax rate was 26.4% and 26.3% for the three months ended June 30, 2025 and 2024, respectively.

Our higher effective income tax rate for the three months ended June 30, 2025, was principally due to a higher excess tax expense with a higher benefit from the use of federal employment tax credits.

For the three months ended June 30, 2025 and 2024, the excess tax expense and federal employment tax credits were 2.6% and 2.8%, respectively.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

The effective income tax rate was 24.7% and 26.1% for the three months ended September 30, 2025 and 2024 , respectively.

Our lower effective income tax rate for the three months ended September 30, 2025 , was principally due to a higher excess tax benefit with a higher benefit from the use of federal employment tax credits.

For the three months ended September 30, 2025 and 2024 , the excess tax benefit and federal employment tax credits were 6.5% and 3.1%, respectively.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

The following table sets forth our unaudited condensed consolidated results of operations.

For the Six Months Ended June 30,

For the Nine Months Ended September 30,

(Amounts in Thousands, Except Percentages)

10 unchanged sentences

Income tax expense

Net service revenues increased by 21.0% to $687.2 million for the six months ended June 30, 2025 compared to $567.7 million for the six months ended June 30, 2024.

Revenue increased by $106.6 million in our personal care segment, by $11.8 million in our hospice segment and by $1.1 million in our home health segment during the six months ended June 30, 2025, compared to the same period in 2024.

Net service revenues increased by 22.4% to $1,049.5 million for the nine months ended September 30, 2025 compared to $857.5 million for the nine months ended September 30, 2024 .

Revenue increased by $167.0 million in our personal care segment, by $23.3 million in our hospice segment and by $1.7 million in our home health segment during the nine months ended September 30, 2025 , compared to the same period in 2024 .

The increase in our personal care and home health segments was primarily due to the completion of the Gentiva Acquisition on December 2, 2024.

The increase in our hospice segment revenue was due to organic growth.

Gross profit, expressed as a percentage of net service revenues, increased to 32.2% for the six months ended June 30, 2025, compared to 31.9% for the same period in 2024 due to growth in hospice segment and the New York Asset Sale.

General and administrative expenses increased to $150.3 million for the six months ended June 30, 2025, as compared to $124.6 million for the six months ended June 30, 2024.

G eneral and administrative expenses, expressed as a percentage of net service revenues, decreased to 21.9% for the six months ended June 30, 2025, from 22.0% for the six months ended June 30, 2024.

Interest expense increased to $7.5 million for the six months ended June 30, 2025 from $4.9 million for the six months ended June 30, 2024.

The increase in interest expense was primarily due to higher average outstanding borrowings held under our credit facility for the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

Gross profit, expressed as a percentage of net service revenues, increased to 32.2% for the nine months ended September 30, 2025 , compared to 31.9% for the same period in 2024 due to growth in our higher margin hospice segment and the New York Asset Sale.

General and administrative expenses increased to $229.7 million for the nine months ended September 30, 2025 , compared to $187.4 million for the nine months ended September 30, 2024 .

The increase in general and administrative expenses was primarily due to a $1.5 million non-recurring recruitment expense as well as the Gentiva and Helping Hands Acquisitions that resulted in an increase in administrative employee wage, bonus, tax, and benefit costs of $29.8 million.

General and administrative expenses, expressed as a percentage of net service revenues, was consistent at 21.9% for both the nine months ended September 30, 2025 and the nine months ended September 30, 2024 .

Interest expense increased to $10.9 million for the nine months ended September 30, 2025 from $5.4 million for the nine months ended September 30, 2024 .

The increase in interest expense was primarily due to higher average outstanding borrowings held under our credit facility for the nine months ended September 30, 2025 , compared to the nine months ended September 30, 2024 .

All of our income is from domestic sources.

We incur state and local taxes in states in which we operate.

The effective income tax rate was 24.0% and 26.0% for the six months ended June 30, 2025 and 2024, respectively.

Our lower effective income tax rate for the six months ended June 30, 2025, was principally due to a higher excess tax benefit with a higher benefit from the use of federal employment tax credits.

For the six months ended June 30, 2025 and 2024, the excess tax benefit and federal employment tax credits were 4.8% and 3.1%, respectively.

The effective income tax rate was 24.3% and 26.1% for the nine months ended September 30, 2025 and 2024 , respectively.

Our lower effective income tax rate for the nine months ended September 30, 2025 , was principally due to a higher excess tax benefit with a lower benefit from the use of federal employment tax credits.

For the nine months ended September 30, 2025 and 2024 , the excess tax benefit and federal employment tax credits were 5.4% and 3.1%, respectively.

Results of Operations – Segments

1 unchanged sentence

Personal Care Segment

For the Three Months Ended June 30,

For the Six Months Ended June 30,

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(Amounts in Thousands, Except Percentages)

14 unchanged sentences

Average billable census is the number of unique clients receiving a billable service during the year and is the total census divided by months in operation during the period.

Average billable census did not include New York operations for the three and nine months ended September 30, 2025, and included 1,133 and 1,285 for the three and nine months ended September 30, 2024, respectively (See Note 3 to the Notes to Unaudited Condensed Consolidated Financial Statements, Divesture).

Billable hours is the total number of hours served to clients during the period.

12 unchanged sentences

These measures may not be comparable to similarly titled performance indicators used by other companies.

The personal care segment derives a significant amount of its net service revenues from operations in Illinois, which represented 33.0% and 38.6% of our net service revenues for the three months ended June 30, 2025 and 2024, respectively, and accounted for 33.0% and 38.5% of our net service revenues for the six months ended June 30, 2025 and 2024, respectively.

One payor, the Illinois Department on Aging, accounted for 18.6% and 21.1% of net service revenues for the three months ended June 30, 2025 and 2024, respectively, and accounted for 18.6% and 20.9% of net service revenues for the six months ended June 30, 2025 and 2024, respectively.

Net service revenues from state, local, and other governmental programs accounted for 51.4% and 53.1% of net service revenues for the three months ended June 30, 2025 and 2024, respectively.

Managed care organizations accounted for 45.3% and 44.2% of net service revenues for the three months ended June 30, 2025 and 2024, respectively, with commercial insurance, private pay, and other payors accounting for the remainder of net service revenues.

Net service revenues from state, local, and other governmental programs accounted for 51.4% and 52.5% of net service revenues for the six months ended June 30, 2025 and 2024, respectively.

Managed care organizations accounted for 45.3% and 44.8% of net service revenues for the six months ended June 30, 2025 and 2024, respectively, with commercial insurance, private pay, and other payors accounting for the remainder of net service revenues.

Net service revenues increased by 26.5% for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Net service revenues included a 7.2% decrease in revenues per billable hour for the three months ended June 30, 2025, due to lower reimbursement rates attributable to the Gentiva Acquisition, as well as the New York Asset Sale, compared to the three months ended June 30, 2024.

Gross profit, expressed as a percentage of net service revenues, increased to 27.9% for the six months ended June 30, 2025 from 27.5% for the six months ended June 30, 2024.

This increase was due to decreases in direct payroll and benefits expenses as a percentage of revenue for the six months ended June 30, 2025 primarily related to the New York Asset Sale.

The personal care segment derives a significant amount of its net service revenues from operations in Illinois, which represented 32.0% and 38.6% of our net service revenues for the three months ended September 30, 2025 and 2024, respectively, and accounted for 32.6% and 38.5% of our net service revenues for the nine months ended September 30, 2025 and 2024, respectively.

One payor, the Illinois Department on Aging, accounted for 18.1% and 21.4% of net service revenues for the three months ended September 30, 2025 and 2024, respectively, and accounted for 18.4% and 21.1% of net service revenues for the nine months ended September 30, 2025 and 2024, respectively.

Net service revenues from state, local, and other governmental programs accounted for 50.5% and 54.2% of net service revenues for the three months ended September 30, 2025 and 2024, respectively.

Managed care organizations accounted for 46.2% and 43.3% of net service revenues for the three months ended September 30, 2025 and 2024, respectively, with commercial insurance, private pay, and other payors accounting for the remainder of net service revenues.

Net service revenues from state, local, and other governmental programs accounted for 51.1% and 53.0% of net service revenues for the nine months ended September 30, 2025 and 2024, respectively.

Managed care organizations accounted for 45.6% and 44.3% of net service revenues for the nine months ended September 30, 2025 and 2024, respectively, with commercial insurance, private pay, and other payors accounting for the remainder of net service revenues.

Net service revenues increased by 28.0% for the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

Net service revenues included a 8.2% decrease in revenues per billable hour for the three months ended September 30, 2025, due to lower reimbursement rates attributable to the Gentiva and Helping Hands Acquisitions, as well as the New York Asset Sale, compared to the three months ended September 30, 2024.

Gross profit, expressed as a percentage of net service revenues, increased to 27.7% for the nine months ended September 30, 2025 from 27.5% for the nine months ended September 30, 2024.

This increase was due to decreases in direct payroll and benefits expenses as a percentage of revenue for the nine months ended September 30, 2025 primarily related to the New York Asset Sale.

The personal care segment’s general and administrative expenses primarily consist of administrative employee wages, taxes, and benefit costs, rent, information technology, and office expenses.

General and administrative expenses, expressed as a percentage of net service revenues, was 9.1% and 7.7% for the six months ended June 30, 2025 and 2024, respectively.

General and administrative expenses, expressed as a percentage of net service revenues, was 9.0% and 7.8% for the nine months ended September 30, 2025 and 2024, respectively.

Hospice Segment

For the Three Months Ended June 30,

For the Six Months Ended June 30,

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(Amounts in Thousands, Except Percentages)

34 unchanged sentences

Our hospice segment principally provides routine home care.

Net service revenues from Medicare accounted for 93.0% and 91.2% for the three months ended June 30, 2025 and 2024, respectively, and 92.7% and 91.0% for the six months ended June 30, 2025 and 2024, respectively.

Net service revenues from managed care organizations accounted for 3.2% and 3.4% for the three months ended June 30, 2025 and 2024, respectively, and for 3.3% for both the six months ended June 30, 2025 and 2024.

Net service revenues increased by $6.2 million and $11.8 million for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, primarily attributed to organic growth in average daily census.

Gross profit, expressed as a percentage of net service revenues, was 47.9% and 46.9% for the three months ended June 30, 2025 and 2024, respectively, and 47.7% and 47.5% for the six months ended June 30, 2025 and 2024, respectively.

For the three and six months ended June 30, 2025, the increase was mainly attributed to organic growth.

Net service revenues from Medicare accounted for 93.1% and 91.5% for the three months ended September 30, 2025 and 2024, respectively, and 92.9% and 91.1% for the nine months ended September 30, 2025 and 2024, respectively.

Net service revenues from managed care organizations accounted for 3.2% for both the three months ended September 30, 2025 and 2024, and 3.2% and 3.3% for the nine months ended September 30, 2025 and 2024, respectively.

Net service revenues increased by $11.6 million and $23.3 million for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024, primarily attributed to organic growth in average daily census.

Gross profit, expressed as a percentage of net service revenues, was 49.4% and 46.8% for the three months ended September 30, 2025 and 2024, respectively, and 48.3% and 47.3% for the nine months ended September 30, 2025 and 2024, respectively.

For the three and nine months ended September 30, 2025, the increase was mainly attributed to organic growth.

The hospice segment’s general and administrative expenses primarily consist of administrative employee wage, tax, and benefit costs, rent, information technology, and office expenses.

General and administrative expenses, expressed as a percentage of net service revenues, was 24.1% and 24.0% for the three months ended June 30, 2025 and 2024, respectively, and 23.9% and 24.0% for the six months ended June 30, 2025 and 2024, respectively.

General and administrative expenses, expressed as a percentage of net service revenues, was 22.1% and 24.6% for the three months ended September 30, 2025 and 2024, respectively, and 23.2% and 24.2% for the nine months ended September 30, 2025 and 2024, respectively.

Home Health Segment

For the Three Months Ended June 30,

For the Six Months Ended June 30,

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(Amounts in Thousands, Except Percentages)

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The home health segment generates net service revenues by providing home health services on a short-term, intermittent or episodic basis to individuals, generally to treat an illness or injury.

Net service revenues from Medicare accounted for 69.4% and 69.3%, managed care organizations accounted for 23.6% and 25.9%, and state, local, and other governmental programs accounted for 4.4% and 0.2% for the three months ended June 30, 2025 and 2024, respectively.

Net service revenues from Medicare accounted for 69.7% and 69.2%, managed care organizations accounted for 22.4% and 26.0%, and state, local, and other governmental programs accounted for 5.2% and 0.2% for the six months ended June 30, 2025 and 2024, respectively.

Net service revenues from Medicare accounted for 65.9% and 70.6%, managed care organizations accounted for 25.5% and 24.7%, and state, local, and other governmental programs accounted for 5.6% and 0.0% for the three months ended September 30, 2025 and 2024, respectively.

Net service revenues from Medicare accounted for 68.4% and 69.6%, managed care organizations accounted for 23.4% and 25.6%, and state, local, and other governmental programs accounted for 5.3% and 0.0% for the nine months ended September 30, 2025 and 2024, respectively.

Home health services provided to Medicare beneficiaries are paid under the Medicare Home Health Prospective Payment System, which uses national, standardized 30-day period payment rates for periods of care.

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An outlier adjustment may be paid for periods of care in which costs exceed a specific threshold amount.

Net service revenues remained constant for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, and increased by $1.1 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to the Gentiva Acquisition.

Gross profit, expressed as a percentage of net service revenues, was 45.9% and 37.6% for the three months ended June 30, 2025 and 2024, respectively, and 42.9% and 36.1% for the six months ended June 30, 2025 and 2024, respectively.

For the three and six months ended June 30, 2025, the increase was mainly attributed to a decrease in direct care wages, taxes and benefit costs as a percentage of net service revenues, compared to the three and six months ended June 30, 2024 .

Net service revenues remained constant for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, and increased by $1.7 million for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to the Gentiva Acquisition.

Gross profit, expressed as a percentage of net service revenues, was 39.8% and 36.4% for the three months ended September 30, 2025 and 2024, respectively, and 41.9% and 36.2% for the nine months ended September 30, 2025 and 2024, respectively.

For the three and nine months ended September 30, 2025, the increase was mainly attributed to a decrease in direct care wages, taxes and benefit costs as a percentage of net service revenues, compared to the three and nine months ended September 30, 2024 .

The home health segment’s general and administrative expenses primarily consist of administrative employee wage, tax and benefit costs, rent, information technology, and office expenses.

General and administrative expenses, expressed as a percentage of net service revenues, was 21.6% and 25.3% for the three months ended June 30, 2025 and 2024, respectively, and 22.4% and 26.1% for the six months ended June 30, 2025 and 2024, respectively.

General and administrative expenses for the three and six months ended June 30, 2025 decreased compared to the corresponding period in 2024, primarily due to more efficient operations for administrative employees for the three and six months ended June 30, 2025.

General and administrative expenses, expressed as a percentage of net service revenues, was 25.4% and 25.5% for the three months ended September 30, 2025 and 2024, respectively, and 23.4% and 25.9% for the nine months ended September 30, 2025 and 2024, respectively.

Liquidity and Capital Resources

Our primary sources of liquidity are cash on hand and cash from operations and borrowings under our credit facility.

At June 30, 2025 and December 31, 2024, we had cash balances of $91.2 million and $98.9 million, respectively.

At June 30, 2025, we had a $650.0 million revolving credit facility and a $150.0 million incremental loan facility, which may be for term loans or an increase to the revolving loan commitments.

At September 30, 2025 and December 31, 2024, we had cash balances of $101.9 million and $98.9 million, respectively.

At September 30, 2025, we had a $650.0 million revolving credit facility and a $150.0 million incremental loan facility, which may be for term loans or an increase to the revolving loan commitments.

The maturity of this credit facility was extended to July 30, 2028.

During the six months ended June 30, 2025, we used $3.4 million in cash to fund the Jacksonville Acquisition and the Great Lakes Acquisition and repaid $50.0 million under our revolving credit facility.

As of June 30, 2025, we had a total of $173.0 million in revolving loans, with an interest rate of 6.07% outstanding on our credit facility and after giving effect to the amount drawn on our credit facility, approximately $8.0 million of outstanding letters of credit and borrowing limits based on an advance multiple of adjusted EBITDA (as defined in the Credit Agreement), we had $635.6 million of capacity and $454.6 million available for borrowing under our credit facility.

During the nine months ended September 30, 2025, we used $3.4 million in cash to fund the Jacksonville Acquisition and the Great Lakes Acquisition, drew $11.3 million on the revolver portion of our credit facility to fund, in part, the purchase price paid in connection with the Helping Hands Acquisition, and repaid $80.0 million under our revolving credit facility.

As of September 30, 2025, we had a total of $154.3 million in revolving loans, with an interest rate of 5.92% outstanding on our credit facility and after giving effect to the amount drawn on our credit facility, approximately $7.9 million of outstanding letters of credit and borrowing limits based on an advance multiple of adjusted EBITDA (as defined in the Credit Agreement), we had $650.0 million of capacity and $487.7 million available for borrowing under our credit facility.

At December 31, 2024, we had a total of $223.0 million revolving credit loans, with an interest rate of 6.34%, outstanding on our credit facility.

Our credit facility requires us to maintain a total net leverage ratio not exceeding 3.75:1.00.

At June 30, 2025, we were in compliance with our financial covenants under the Credit Agreement.

At September 30, 2025, we were in compliance with our financial covenants under the Credit Agreement.

Although we believe our liquidity position remains strong, we can provide no assurance that we will remain in compliance with the covenants in our Credit Agreement, and in the future, it may prove necessary to seek an amendment with the bank lending group under our credit facility.

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Funds may be subject to recoupment if not expended or if they are expended on non-approved uses.

During the three and six months ended June 30, 2025, the Company did not receive additional state funding provided by the ARPA.

Of the total state funding received by the Company pursuant to the ARPA through June 30, 2025, the Company utilized $0.8 million and $3.3 million during the three and six months ended June 30, 2025, respectively, primarily for caregivers and adding support to recruiting and retention efforts, included as a reduction of cost of service revenues in the Company’s Unaudited Condensed Consolidated Statements of Income.

As of June 30, 2025, the deferred portion of ARPA funding of $7.9 million is included within Government stimulus advances on the Company’s Unaudited Condensed Consolidated Balance Sheets.

During the three and nine months ended September 30, 2025, the Company did not receive additional state funding provided by the ARPA.

Of the total state funding received by the Company pursuant to the ARPA through September 30, 2025, the Company utilized $2.2 million and $5.5 million during the three and nine months ended September 30, 2025, respectively, primarily for caregivers and adding support to recruiting and retention efforts, included as a reduction of cost of service revenues in the Company’s Unaudited Condensed Consolidated Statements of Income.

As of September 30, 2025, the deferred portion of ARPA funding of $5.8 million is included within Government stimulus advances on the Company’s Unaudited Condensed Consolidated Balance Sheets.

The following table summarizes changes in our cash flows:

For the Six Months Ended June 30,

For the Nine Months Ended September 30,

(Amounts in Thousands)

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Net cash (used in) provided by financing activities

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Cash flows from operating activities represent the inflow of cash from our payors and the outflow of cash for payroll and payroll taxes, operating expenses, interest, and taxes.

Net cash provided by operating activities was $41.5 million for the six months ended June 30, 2025, compared to net cash provided by operating activities of $57.5 million for the same period in 2024.

The decrease in cash provided by operations was primarily due to the timing of receipts on accounts receivable and the timing of government stimulus funds.

The changes in accounts receivable were primarily related to the growth in revenue and a decrease in days sales outstanding (“DSO”) during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.

The related receivables due from the Illinois Department on Aging represented 18.6% and 21.7% of the Company’s net accounts receivable at June 30, 2025 and June 30, 2024, respectively.

Net cash used in investing activities for the six months ended June 30, 2025, primarily consisted of $3.4 million of net cash used for the Jacksonville Acquisition and the Great Lakes Acquisition, $3.1 million of cash used for property and equipment purchases, primarily related to our ongoing investments in technology infrastructure fixed assets, offset by $3.8 million in proceeds received relating to the New York Asset Sale and $2.9 million in proceeds received relating to the Gentiva Acquisition.

Net cash used in investing activities for the six months ended June 30, 2024 primarily consisted of $0.4 million of net cash used for the Upstate acquisition and $2.4 million of cash used for property and equipment purchases, offset by $4.6 million in proceeds received relating to the New York Asset Sale.

Net cash used in financing activities for the six months ended June 30, 2025, primarily consisted of a $50.0 million payment on our revolving credit facility, offset by cash received from the exercise of stock options of $0.5 million.

Net cash used in financing activities for the six months ended June 30, 2024 primarily consisted of $126.4 million payment on our revolving credit facility, offset by $175.6 million in net proceeds received from the Public Offering.

Net cash provided by operating activities was $92.7 million for the nine months ended September 30, 2025, compared to net cash provided by operating activities of $106.0 million for the same period in 2024.

The decrease in cash provided by operations was primarily due to the timing of receipts on accounts receivable and the timing of receipt and utilization of government stimulus funds.

The changes in accounts receivable were primarily related to the growth in revenue and a decrease in days sales outstanding (“DSO”) during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 .

The related receivables due from the Illinois Department on Aging represented 16.6% and 21.7% of the Company’s net accounts receivable at September 30, 2025 and September 30, 2024 , respectively.

Net cash used in investing activities for the nine months ended September 30, 2025, primarily consisted of $24.2 million of net cash used for the Helping Hands Acquisition, the Jacksonville Acquisition and the Great Lakes Acquisition, $5.1 million of cash used for property and equipment purchases, primarily related to our ongoing investments in technology infrastructure fixed assets, offset by $3.8 million in proceeds received relating to the New York Asset Sale and $2.9 million in proceeds received relating to the Gentiva Acquisition.

Net cash used in investing activities for the nine months ended September 30, 2024 primarily consisted of $0.4 million of net cash used for the Upstate acquisition and $4.4 million of cash used for property and equipment purchases, offset by $4.6 million in proceeds received relating to the New York Asset Sale.

Net cash used in financing activities for the nine months ended September 30, 2025, primarily consisted of an $80.0 million payment on our revolving credit facility, offset by borrowings of $11.3 million on the revolver portion of our credit facility to fund, in part, the Helping Hands Acquisition and cash received from the exercise of stock options of $1.5 million.

Net cash provided by financing activities for the nine months ended September 30, 2024 primarily consisted of $126.4 million payment on our revolving credit facility, offset by $175.6 million in net proceeds received from the Public Offering, and also included cash received from the exercise of stock options of $3.0 million.

Outstanding Accounts Receivable

Gross accounts receivable as of June 30, 2025 and December 31, 2024 were approximately $143.1 million and $126.4 million, respectively.

Outstanding accounts receivable, net of allowance for credit losses, increased by $17.2 million as of June 30, 2025 as compared to December 31, 2024.

Accounts receivable for the Illinois Department on Aging increased approximately $6.3 million during the six months ended June 30, 2025.

Gross accounts receivable as of September 30, 2025 and December 31, 2024 were approximately $136.9 million and $126.4 million, respectively.

Outstanding accounts receivable, net of allowance for credit losses, increased by $11.2 million as of September 30, 2025 as compared to December 31, 2024.

Accounts receivable for the Illinois Department on Aging decreased approximately $3.6 million during the nine months ended September 30, 2025.

Our collection procedures include review of account aging and direct contact with our payors.

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We calculate our DSO by taking the trade accounts receivable outstanding, net of allowance for credit losses for doubtful accounts, divided by the net service revenues for the last quarter, multiplied by the number of days in that quarter.

Our DSOs were 38 days and 39 days at June 30, 2025 and December 31, 2024, respectively.

The DSOs for our largest payor, the Illinois Department on Aging, were 3 9 days and 40 days at June 30, 2025 and December 31, 2024, respectively.

Our DSOs were 35 days and 39 days at September 30, 2025 and December 31, 2024, respectively.

The DSOs for our largest payor, the Illinois Department on Aging, were 33 days and 40 days at September 30, 2025 and December 31, 2024, respectively.

Off-Balance Sheet Arrangements

As of June 30, 2025, we did not have any off-balance sheet guarantees or arrangements with unconsolidated entities.

As of September 30, 2025, we did not have any off-balance sheet guarantees or arrangements with unconsolidated entities.

Critical Accounting Policies and Estimates

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements