Addus HomeCare Corp 10-K

ITEM 9A. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of December 31, 2025. Management ’ s Annual Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an assessment of the effectiveness of our internal control over financial reporting based on the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based on our assessment under the framework in Internal Control — Integrated Framework, our management concluded that our internal control over financial reporting was effective as of December 31, 2025. 63 Table of Contents Under SEC Staff guidance, companies are permitted to exclude acquisitions from their first assessment of internal control over financial reporting which covers the period in which such acquisition was completed. We excluded Helping Hands Home Care Service, Inc., a Pennsylvania corporation (“Helping Hands”) and Gold Horses, LLC, a Texas limited liability company (“Gold Horses”) from our assessment of internal control over financial reporting as of December 31, 2025 because they were acquired in purchase business combinations on August 1, 2025 and October 1, 2025, respectively. • Helping Hands represented 0.5% of our revenues, 0.5% of our operating income and 0.2% of our assets as of and for the year ended December 31, 2025. • Gold Horses represented 0.2% of our revenues, 0.4% of our operating income and 0.0% of our assets as of and for the year ended December 31, 2025. The effectiveness of our internal control over financial reporting as of December 31, 2025, has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in its report which appears within Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Changes in Internal Control Over Financial Reporting There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the fiscal quarter ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. ITEM 9B. OTHER INFORMATION During the quarter ended December 31, 2025 , each of the following directors and Section 16 officers adopted a Rule 10b5 - 1 Trading Arrangement (as defined in Item 408 (a) of Regulation S-K) to sell common shares: Shares Vesting and Subject to Other Shares Being Sold Name Title Adoption Date Expiration Date ( 1 ) Sell-To-Cover ( 2 ) (Subject to Certain Conditions) Heather Dixon President and Chief Operating Officer November 6, 2025 September 15, 2026 10,629 n/a ( 1 ) Each plan will expire on the date represented in the table or upon the earlier completion of all transactions contemplated by the arrangement. ( 2 ) This column indicates the total number of shares vesting in connection with equity awards, not the number of shares to be sold. The actual number of shares to be sold will be a smaller number based on whatever is required to satisfy payment of applicable withholding taxes under sell-to-cover arrangements. ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS Not applicable. 64 Table of Contents PART III Certain information required by Part III is omitted from this Annual Report on Form 10-K as we intend to file our definitive Proxy Statement for the 2026 Annual Meeting of Stockholders pursuant to Regulation 14A of the Exchange Act not later than 120 days after the end of the fiscal year covered by this Annual Report, and certain information included in the Proxy Statement is incorporated herein by reference. ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE The information required by this item is incorporated by reference to the 2026 Proxy Statement to be filed with the SEC not later than 120 days after the end of the fiscal year ended December 31, 2025 . We have adopted a Code of Business Conduct and Ethics (“Code of Conduct”) that is applicable to all of our employees, officers and members of our Board of Directors, and our subsidiaries. The Code of Conduct addresses, among other things, legal compliance, conflicts of interest, corporate opportunities, protection and proper use of Company assets, confidential and proprietary information, integrity of records, compliance with accounting principles and relations with government agencies. A copy of the current version of our Code of Conduct is available in the Investors—Corporate Governance section of our internet website located at www.addus.com. A copy of the Code of Conduct is also available in print, free of charge, to any stockholder who requests it by writing to Addus HomeCare Corporation, 6303 Cowboys Way, Suite 600, Frisco, TX 75034. We intend to post amendments to or waivers from, if any, our Code of Conduct at this location on our website, in each case to the extent such amendment or waiver would otherwise require the filing of a Current Report on Form 8 -K pursuant to Item 5.05 thereof. ITEM 11. EXECUTIVE COMPENSATION The information required by this item is incorporated by reference to the 2026 Proxy Statement to be filed with the SEC not later than 120 days after the end of the fiscal year ended December 31, 2025 . ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS The information required by this item is incorporated by reference to the 2026 Proxy Statement to be filed with the SEC not later than 120 days after the end of the fiscal year ended December 31, 2025. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE The information required by this item is incorporated by reference to the 2026 Proxy Statement to be filed with the SEC not later than 120 days after the end of the fiscal year ended December 31, 2025. ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES The information required by this item is incorporated by reference to the 2026 Proxy Statement to be filed with the SEC not later than 120 days after the end of the fiscal year ended December 31, 2025. 65 Table of Contents PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES (a) (1), (2) The Financial Statements listed on the index on page F-1 following are included herein. All schedules are omitted, either because they are not applicable or because the required information is shown in the financial statements or the notes thereto. (b) Exhibits EXHIBIT INDEX Incorporated by Reference Exhibit Number Description of Document Form File No. Date Filing Exhibit Number 3.1 Amended and Restated Certificate of Incorporation of Addus HomeCare Corporation dated as of October 27, 2009. 10-Q 001-34504 11/20/2009 3.1 3.2 Amended and Restated Bylaws of Addus HomeCare Corporation, as amended by the First Amendment to Amended and Restated Bylaws. 10-Q 001-34504 05/9/2013 3.2 4.1 Form of Common Stock Certificate. S-1 333-160634 10/2/2009 4.1 4.2 Description of Securities of Addus HomeCare Corporation Registered under Section 12 of the Exchange Act. 10-K 001-34504 8/10/2020 4.2 10.1* Addus Holding Corporation 2006 Stock Incentive Plan. S-1 333-160634 7/17/2009 10.12 10.2* Director Form of Non-Qualified Stock Option Certificate under the 2006 Stock Incentive Plan. S-1 333-160634 7/17/2009 10.13 10.3* Executive Form of Non-Qualified Stock Option Certificate under the 2006 Stock Incentive Plan. S-1 333-160634 7/17/2009 10.14 10. 4 2009 Form of Indemnification Agreement. S-1 333-160634 7/17/2009 10.16 10.5* Form of Addus HomeCare Corporation 2009 Stock Incentive Plan. S-1 333-160634 9/21/2009 10.20 10.6* Form of Nonqualified Stock Option Award Agreement pursuant to the 2009 Stock Incentive Plan. S-1 333-160634 9/21/2009 10.20(a) 10.7* Form of Restricted Stock Award Agreement pursuant to the 2009 Stock Incentive Plan. S-1 333-160634 9/21/2009 10.20(b) 10.8 Securities Purchase Agreement, dated as of April 24, 2015, by and among Addus HealthCare, Inc., Margaret Coffey, Carol Kolar, South Shore Home Health Service, Inc. and Acaring Home Care, LLC. 10-Q 001-34504 5/8/2015 10.1 66 Table of Contents 10.9 Credit Agreement, dated as of May 8, 2017, by and among Addus Healthcare, Inc., as the Borrower, the other parties from time to time a party thereto, and Capital One, National Association, as a Lender and Swing Lender and as Agent for all Lenders, Suntrust Bank, as Documentation Agent, Bank of the West, Compass Bank, Fifth Third Bank and JPMorgan Chase Bank, N.A., as Co-Syndication Agents, the other financial institutions party thereto, as Lenders, Capital One, National Association, Bank of the West, Compass Bank, Fifth Third Bank and JPMorgan Chase Bank, N.A. and Suntrust Robinson Humphrey as Joint Lead Arrangers and Capital One, National Association, as Sole Bookrunner. 10-Q 001-34504 5/9/2017 10.3 10.10* Addus HomeCare Corporation’ s 2017 Omnibus Incentive Plan, effective as of April 27, 2017. 8-K 001-34504 6/16/2017 10.1 10.11* Form of Nonqualified Stock Option Award Agreement pursuant to the 2017 Omnibus Incentive Plan. 10-K 001-34504 3/14/2018 10.28 10.12* Form of Restricted Stock Award Agreement pursuant to the 2017 Omnibus Incentive Plan. 10-K 001-34504 3/14/2018 10.29 10.13 Stock Purchase Agreement, dated February 27, 2018, by and among Addus Healthcare, Inc., Michael J. Merrell and Mary E. Merrell, individually, Michael J. Merrell and Mary E. Merrell, as Trustees of the Merrell Revocable Trust UTA dated June 3, 2012, and Michael J. Merrell and Mary E. Merrell, as Trustees of the Ambercare Corporation Employee Stock Ownership Plan Trust. 8-K 001-34504 3/5/2018 10.1 10.14 Amended and Restated Credit Agreement by and among Addus HealthCare, Inc., as borrower, the Company, the other Credit Parties party thereto, the Lenders and L/C Issuers party thereto, and Capital One, National Association, as administrative agent. 10-Q 001-34504 8/11/2018 10.2 10.15* Second Amended and Restated Employment and Non-Competition Agreement, dated November 5, 2018, by and between Addus HealthCare, Inc. and R. Dirk Allison. 10-Q 001-34504 8/11/2018 10.3 10.16* Second Amended and Restated Employment and Non-Competition Agreement, dated November 5, 2018, by and between Addus HealthCare, Inc. and Brian Poff. 10-Q 001-34504 8/11/2018 10.4 10.17* Second Amended and Restated Employment and Non-Competition Agreement, dated November 5, 2018, by and between Addus HealthCare, Inc. and Darby Anderson. 10-Q 001-34504 8/11/2018 10.6 10.18* Second Amended and Restated Employment and Non-Competition Agreement, dated November 5, 2018, by and between Addus HealthCare, Inc. and W. Bradley Bickham. 10-Q 001-34504 8/11/2018 10.7 10.19 Amended and Restated Credit Agreement, dated as of October 31, 2018, by and among Addus HealthCare, Inc., as borrower, the Company, the other Credit Parties party thereto, the Lenders and L/C Issuers party thereto, and Capital One, National Association, as administrative agent. 10-Q 001-34504 11/8/2018 10.2 10.20* Employment and Non-Competition Agreement, effective April 29, 2019, by and between Addus HealthCare, Inc. and Sean Gaffney. 8-K 001-34504 4/8/2019 99.2 67 Table of Contents 10.21* Employment and Non-Competition Agreement, effective November 7, 2019, by and between Addus HealthCare, Inc. and David Tucker. 10-K 001-34504 8/10/2020 10.40 10.22* Employment and Non-Competition Agreement, effective November 7, 2019, by and between Addus HealthCare, Inc. and Mike Wattenbarger. 10-K 001-34504 8/10/2020 10.41 10.23 Equity Purchase Agreement, dated August 25, 2019, by and among Addus Healthcare, Inc., Hospice Partners of America, LLC, New Capital Partners II – HS, Inc., Senior Care Services, LLC, Eastside Partners II, L.P., and New Capital Partners II, LLC. S-3ASR 333-233600 9/3/2019 2.1 10.24 First Amendment to Amended and Restated Credit Agreement, dated as of September 12, 2019, by and among Addus HealthCare, Inc., as the Borrower, Addus HomeCare Corporation, other Credit Parties party thereto, Capital One, National Association, as administrative agent and as a Lender, and the other Lenders party thereto. 10-Q 001-34504 9/13/2019 10.1 10.25 Unit Purchase Agreement, dated November 10, 2020, by and among Addus Healthcare, Inc., Queen City Hospice, LLC, Miracle City Hospice, LLC, and QCH Holdings LLC. 10-K 001-34504 3/1/2021 10.45 10.26 Amendment to Unit Purchase Agreement, dated December 3, 2020, by and among Addus Healthcare, Inc., Queen City Hospice, LLC, Miracle City Hospice, LLC, and QCH Holdings LLC. 10-K 001-34504 3/1/2021 10.46 10.27* Employment and Non-Competition Agreement, effective June 14, 2021, by and between Addus HealthCare, Inc. and Roberton James Stevenson. 10-Q 001-34504 8/4/2021 10.2 10.28** Second Amendment to Amended and Restated Credit Agreement, dated as of July 30, 2021, by and among Addus HealthCare, Inc., as the Borrower, Addus HomeCare Corporation, the other Credit Parties party thereto, Capital One, National Association, as administrative agent and as a Lender, and the other Lenders party thereto. 8-K 001-34504 8/4/2021 10.1 10.29* 2022 Form of Indemnification Agreement. 10-K 001-34504 2/25/2022 10.50 10.30* Amended and Restated Employment and Non-Competition Agreement, effective March 1, 2022, by and between Addus HealthCare, Inc. and Monica Raines . 10-Q 001-34504 5/23/2022 10.1 10.31* Employment and Non-Competition Agreement, effective April 20, 2022, by and between Addus HealthCare, Inc. and Cliff Blessing. 10-Q 001-34504 8/2/2022 10.1 10.32 Third Amendment to Amended and Restated Credit Agreement, dated as of April 26, 2023, by and among Addus HealthCare, Inc., as the Borrower, Addus HomeCare Corporation, the other Credit Parties party thereto, Capital One, National Association, as administrative agent and as a Lender, and the other Lenders party thereto. 10-Q 001-34504 5/2/2023 10.1 10.33* Addus HomeCare Corporation Amended and Restated 2017 Omnibus Incentive Plan. 10-Q 001-34504 8/1/2023 10.1 68 Table of Contents 10.34** Membership Interests Purchase Agreement, dated June 28, 2023, by and among Addus HealthCare, Inc., HHH Newco Holdings, LLC, American Health Companies, LLC, American Home Care, LLC, Homecare, LLC, Tennessee Valley Home Care, LLC, and Tri-County Home Health and Hospice, LLC. 10-Q 001-34504 8/1/2023 10.1 10.35 Stock and Asset Purchase Agreement, dated June 8, 2024, by and between Addus HealthCare, Inc. and Curo Health Services, LLC. 8-K/A 001-34504 6/26/2024 10.1 10.36** Fourth Amendment to Amended and Restated Credit Agreement, dated as of October 22, 2024, by and among Addus HealthCare, Inc., as the Borrower, Addus HomeCare Corporation, the other Credit Parties party thereto, Capital One, National Association, as administrative agent and as a Lender, and the other Lenders party thereto. 8-K 001-34504 10/22/2024 10.1 10.37* Retention and Transition Agreement, dated March 10, 2025, by and between Addus Healthcare, Inc. and Heather Dixon. 8-K 001-34504 3/11/2025 10.1 10.38* Third Amended and Restated Employment and Non-Competition Agreement, dated March 10, 2025, by and between Addus Healthcare, Inc. and Heather Dixon. 8-K 001-34504 3/11/2025 10.2 10.39* Employment and Non-Competition Agreement, dated August 4, 2025, by and between Addus Healthcare, Inc. and Heather Dixon. 8-K 001-34504 8/7/2025 10.1 10.40* Amended and Restated Retention and Transition Agreement, dated August 4, 2025, by and between Addus Healthcare, Inc. and W. Bradley Bickham. 8-K 001-34504 8/7/2025 10.2 21.1 Subsidiaries of Addus HomeCare Corporation. 23.1 Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm. 31.1 Certification of Chief Executive Officer Pursuant to Rule 13-14(a) of the Securities Exchange Act of 1934 as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 31.2 Certification of Chief Financial Officer Pursuant to Rule 13-14(a) of the Securities Exchange Act of 1934 as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 32.1 Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 32.2 Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 69 Table of Contents 101.INS Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). 101.SCH Inline XBRL Taxonomy Extension Schema Document. 101.CAL Inline XBRL Taxonomy Calculation Linkbase Document. 101.LAB Inline XBRL Taxonomy Label Linkbase Document. 101.PRE Inline XBRL Presentation Linkbase Document. 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101). * Management compensatory plan or arrangement ** Schedules and exhibits have been omitted pursuant to Item 601 of Regulation S-K. The Company hereby undertakes to furnish supplementally a copy of any of the omitted schedules and exhibits upon request by the Securities and Exchange Commission. ITEM 16. FORM 10-K SUMMARY None. 70 Table of Contents SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Addus HomeCare Corporation By: /s/ R. DIRK ALLISON R. Dirk Allison, Chief Executive Officer and Chairman of the Board Date: February 24, 2026 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated: Signature Title Date /s/ R. DIRK ALLISON Chief Executive Officer and Chairman of the Board (Principal Executive Officer) February 24, 2026 R. Dirk Allison /s/ BRIAN POFF Chief Financial Officer (Principal Financial and Accounting Officer) February 24, 2026 Brian Poff /s/ MICHAEL EARLEY Director February 24, 2026 Michael Earley /s/ MARK L. FIRST Director February 24, 2026 Mark L. First /s/ DARIN J. GORDON Director February 24, 2026 Darin J. Gordon /s/ VERONICA HILL-MILBOURNE Director February 24, 2026 Veronica Hill-Milbourne /s/ ESTEBAN LÓPEZ, M.D. Director February 24, 2026 Esteban L ó pez, M.D. /s/ JEAN RUSH Director February 24, 2026 Jean Rush /s/ SUSAN T. WEAVER, M.D., FACP Director February 24, 2026 Susan T. Weaver, M.D., FACP 71 Table of Contents INDEX TO CONSOLIDATED FINANCIAL INFORMATION Page Report of Independent Registered Public Accounting Firm F-2 Consolidated Balance Sheets F-4 Consolidated Statements of Income F-5 Consolidated Statements of Stockholders ’ Equity F-6 Consolidated Statements of Cash Flows F-7 Notes to Consolidated Financial Statements F-8 All schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions or are inapplicable and therefore have been omitted. F-1 Table of Contents Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of Addus HomeCare Corporation Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Addus HomeCare Corporation and its subsidiaries (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of income, of stockholders’ equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Basis for Opinions The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control Over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. As described in Management’s Annual Report on Internal Control Over Financial Reporting, management has excluded Helping Hands Home Care Service, Inc., a Pennsylvania corporation (“Helping Hands”) and Gold Horses, LLC, a Texas limited liability company (“Gold Horses”) from its assessment of internal control over financial reporting as of December 31, 2025 because they were acquired by the Company in purchase business combinations during 2025. We have also excluded Helping Hands and Gold Horses from our audit of internal control over financial reporting. Helping Hands and Gold Horses are wholly-owned subsidiaries whose total revenues, total operating income, and total assets excluded from management’s assessment and our audit of internal control over financial reporting represent approximately 0.5% and 0.2% of total revenues, respectively, approximately 0.5% and 0.4% of total operating income, respectively and approximately 0.2% and 0.0% of total assets, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2025. F-2 Table of Contents Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Valuation of Accounts Receivable, Net of Allowances for Implicit Price Concessions As described in Note 1 to the consolidated financial statements, net service revenue is recognized at the amount that reflects the consideration the Company expects to receive in exchange for providing services directly to consumers. Amounts collected may be less than amounts billed due to implicit price concessions, resulting from client eligibility issues, insufficient or incomplete documentation, services at levels other than authorized, pricing differences and other reasons unrelated to credit risk. Management estimates the value of accounts receivable, net of allowances for implicit price concessions, based upon historical experience and other factors, including an aging of accounts receivable, evaluation of expected adjustments, past adjustments and collection experience in relation to amounts billed, current contract and reimbursement terms, shifts in payors and other relevant information. The evaluation of these historical and other factors involves complex, subjective judgments. Accounts receivable, net of allowances for implicit price concessions (before the allowance for credit losses) were $155.0 million as of December 31, 2025. The principal considerations for our determination that performing procedures relating to the valuation of accounts receivable, net of allowances for implicit price concessions is a critical audit matter are (i) the significant judgment by management when developing the estimate of accounts receivable, net of allowances for implicit price concessions and (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to the estimate. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s estimate of accounts receivable, net of implicit price concessions, including controls over the allowance for implicit price concessions. These procedures also included, among others (i) testing management’s process for developing the estimate of accounts receivable, net of allowances for implicit price concessions; (ii) evaluating the relevance and use of historical experience data as an input into management’s estimate; (iii) testing the completeness and accuracy of underlying historical collection data used as an input into management’s estimate; (iv) testing, on a sample basis, the accuracy of revenue transactions and cash collections from the billing and collection data used as an input into the estimate; (v) evaluating the historical accuracy of management’s estimate of the amount expected to be collected by performing a retrospective comparison of actual cash collections to the related accounts receivable; and (vi) performing a comparison of the remaining uncollected accounts receivable balance as of a date subsequent to year end, to expected future cash collections based on the Company’s historical collection patterns. /s/ PricewaterhouseCoopers LLP Dallas, Texas February 24, 2026 We have served as the Company’s auditor since 2019. F-3 Table of Contents ADDUS HOMECARE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of December 31, 2025 and 2024 (amounts and shares in thousands, except per share data) 2025 2024 Assets Current assets Cash $ 81,617 $ 98,911 Accounts receivable, net of allowances for credit losses 151,695 122,880 Prepaid expenses and other current assets 36,179 38,591 Total current assets 269,491 260,382 Property and equipment, net of accumulated depreciation and amortization 24,998 24,703 Other assets Goodwill 996,696 970,558 Intangibles, net of accumulated amortization 102,410 109,643 Operating lease assets, net 43,713 47,348 Total other assets 1,142,819 1,127,549 Total assets $ 1,437,308 $ 1,412,634 Liabilities and stockholders’ equity Current liabilities Accounts payable $ 16,832 $ 27,176 Accrued payroll 65,941 62,053 Accrued expenses 28,191 28,959 Operating lease liabilities, current portion 13,144 12,800 Government stimulus advances 11,699 11,239 Accrued workers’ compensation insurance 13,680 13,644 Total current liabilities 149,487 155,871 Long-term liabilities Long-term debt, net of debt issuance costs 120,959 218,443 Long-term operating lease liabilities 37,259 41,883 Deferred income tax 44,065 25,820 Other long-term liabilities 235 125 Total long-term liabilities 202,518 286,271 Total liabilities $ 352,005 $ 442,142 Stockholders’ equity Common stock—$ .001 par value; 40,000 authorized and 18,518 and 18,148 shares issued and outstanding as of December 31, 2025 and 2024, respectively $ 18 $ 18 Additional paid-in capital 612,945 594,044 Retained earnings 472,340 376,430 Total stockholders’ equity 1,085,303 970,492 Total liabilities and stockholders’ equity $ 1,437,308 $ 1,412,634 See accompanying Notes to Consolidated Financial Statements F-4 Table of Contents ADDUS HOMECARE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME For the years ended December 31, 2025, 2024 and 2023 (amounts and shares in thousands, except per share data) For the Years Ended December 31, 2025 2024 2023 Net service revenues $ 1,422,530 $ 1,154,599 $ 1,058,651 Cost of service revenues 960,656 779,578 718,775 Gross profit 461,874 375,021 339,876 General and administrative expenses 306,847 258,800 234,794 Depreciation and amortization 16,412 13,530 14,126 Total operating expenses 323,259 272,330 248,920 Operating income 138,615 102,691 90,956 Interest income ( 2,442 ) ( 4,394 ) ( 1,476 ) Interest expense 13,612 7,732 11,106 Total interest expense, net 11,170 3,338 9,630 Income before income taxes 127,445 99,353 81,326 Income tax expense 31,535 25,755 18,810 Net income $ 95,910 $ 73,598 $ 62,516 Net income per common share Basic net income per share $ 5.31 $ 4.33 $ 3.91 Diluted net income per share $ 5.22 $ 4.23 $ 3.83 Weighted average number of common shares and potential common shares outstanding: Basic 18,053 17,006 15,996 Diluted 18,391 17,380 16,311 See accompanying Notes to Consolidated Financial Statements F-5 Table of Contents ADDUS HOMECARE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS ’ EQUITY For the years ended December 31, 2025, 2024 and 2023 (amounts and shares in thousands) Common Stock Additional Paid in Capital Retained Earnings Total Stockholders’ Equity Shares Amount Balance at January 1, 2023 16,128 $ 16 $ 393,208 $ 240,316 $ 633,540 Issuance of shares of common stock under restricted stock award agreements 86 — — — — Stock-based compensation — — 10,319 — 10,319 Shares issued for exercise of stock options 13 — 319 — 319 Net income — — — 62,516 62,516 Balance at December 31, 2023 16,227 $ 16 $ 403,846 $ 302,832 $ 706,694 Issuance of shares of common stock under restricted stock award agreements 151 — — — — Forfeiture of shares of common stock under restricted stock award agreements ( 5 ) — — — — Stock-based compensation — — 11,165 — 11,165 Shares issued for exercise of stock options 50 — 3,435 — 3,435 Shares issued in public offering, net of offering costs 1,725 2 175,598 — 175,600 Net income — — — 73,598 73,598 Balance at December 31, 2024 18,148 $ 18 $ 594,044 $ 376,430 $ 970,492 Issuance of shares of common stock under restricted stock award agreements 265 — — — — Forfeiture of shares of common stock under restricted stock award agreements ( 5 ) — — — — Stock-based compensation — — 16,424 — 16,424 Shares issued for exercise of stock options 110 — 2,477 — 2,477 Net income — — — 95,910 95,910 Balance at December 31, 2025 18,518 $ 18 $ 612,945 $ 472,340 $ 1,085,303 See accompanying Notes to Consolidated Financial Statements F-6 Table of Contents ADDUS HOMECARE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2025, 2024 and 2023 (amounts in thousands) For the Years Ended December 31, 2025 2024 2023 Cash flows from operating activities: Net income $ 95,910 $ 73,598 $ 62,516 Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions: Depreciation and amortization 16,412 13,530 14,126 Deferred income taxes 17,867 13,192 2,819 Stock-based compensation 16,424 11,165 10,319 Amortization of debt issuance costs under the credit facility 1,294 1,050 860 Provision for credit losses 1,563 1,121 731 Gain on disposal of assets ( 2 ) ( 13 ) — Impairment of operating lease assets — 4,968 13 (Gain) loss on termination of operating leases 21 42 ( 23 ) Gain on divestiture of business — ( 3,725 ) — Changes in operating assets and liabilities, net of acquisitions: Accounts receivable ( 26,650 ) 22,137 15,666 Prepaid expenses and other current assets ( 1,753 ) ( 19,065 ) ( 3,113 ) Government stimulus advances 460 5,474 ( 7,577 ) Accounts payable ( 12,656 ) ( 1,909 ) 2,025 Accrued payroll 3,250 ( 146 ) 9,176 Accrued expenses and other liabilities ( 633 ) ( 4,985 ) 4,709 Net cash provided by operating activities 111,507 116,434 112,247 Cash flows from investing activities: Acquisition of businesses, net of cash acquired ( 31,581 ) ( 353,946 ) ( 109,797 ) Purchases of property and equipment ( 7,719 ) ( 6,050 ) ( 9,454 ) Proceeds received from disposal of assets 15 29 15 Proceeds received from previous acquisition 2,937 — — Proceeds received from divestiture of business 3,848 5,357 — Net cash used in investing activities ( 32,500 ) ( 354,610 ) ( 119,236 ) Cash flows from financing activities: Proceeds from borrowings on revolver — credit facility 11,335 233,000 110,000 Payments on revolver loan — credit facility ( 110,000 ) ( 136,353 ) ( 118,500 ) Proceeds from public offering — 175,600 — Payments for debt issuance costs under the credit facility ( 113 ) ( 3,386 ) — Cash received from exercise of stock options 2,477 3,435 319 Net cash (used in) provided by financing activities ( 96,301 ) 272,296 ( 8,181 ) Net change in cash ( 17,294 ) 34,120 ( 15,170 ) Cash, at beginning of period 98,911 64,791 79,961 Cash, at end of period $ 81,617 $ 98,911 $ 64,791 Supplemental disclosures of cash flow information: Cash paid for interest $ 12,461 $ 6,520 $ 10,254 Cash paid for income taxes 12,620 26,251 14,985 Supplemental disclosures of non-cash investing and financing activities Leasehold improvements acquired through tenant allowances 363 130 — Licensing fees included in Fixed assets — — 4,000 See accompanying Notes to Consolidated Financial Statements F-7 Table of Contents ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements 1. Significant Accounting Policies Basis of Presentation and Description of Business The Consolidated Financial Statements include the accounts of Addus HomeCare Corporation (“Holdings”) and its subsidiaries (together with Holdings, the “Company,” “we,” “us,” or “our”). The Company operates as a multi-state provider of three distinct but related business segments providing in-home services. In its personal care services segment, the Company provides non-medical assistance with activities of daily living, primarily to persons who are at increased risk of hospitalization or institutionalization, such as the elderly, chronically ill or disabled. In its hospice segment, the Company provides physical, emotional and spiritual care for people who are terminally ill as well as related services for their families. In its home health segment, the Company provides services that are primarily medical in nature to individuals who may require assistance during an illness or after hospitalization and include skilled nursing and physical, occupational and speech therapy. The Company’s payor clients include federal, state and local governmental agencies, managed care organizations, commercial insurers and private individuals. Principles of Consolidation All intercompany balances and transactions have been eliminated in consolidation. Reclassification of Prior Balances Certain reclassifications have been made to prior period amounts to conform to the current-year presentation including the reporting of Texas as a separate line item in personal care, commercial insurance as a separate line item in hospice, and state, local and other governmental programs (excluding Medicare) as a separate line item in home health. These reclassifications have no effect on the reported net income for the years ended December 31, 2025, 2024 and 2023. Revenue Recognition Net service revenue is recognized at the amount that reflects the consideration the Company expects to receive in exchange for providing services directly to consumers. Receipts are from federal, state and local governmental agencies, managed care organizations, commercial insurers and private consumers for services rendered. The Company assesses the consumers’ ability to pay at the time of their admission based on the Company’s verification of the customer’s insurance coverage under the Medicare, Medicaid, and other commercial or managed care insurance programs. Laws and regulations governing the governmental programs in which the Company participates are complex and subject to interpretation. Net service revenues related to uninsured accounts, or self-pay, is recorded net of implicit price concessions estimated based on historical collection experience to reduce revenue to the estimated amount the Company expects to collect. Amounts collected from all sources may be less than amounts billed due to implicit price concessions, resulting from client eligibility issues, insufficient or incomplete documentation, services at levels other than authorized, pricing differences and other reasons unrelated to credit risk. The Company monitors our net service revenues and collections from these sources and records any necessary adjustment to net service revenues based upon management’s assessment of historical write offs and expected net collections, business and economic conditions, trends in federal, state and private employer healthcare coverage and other collection indicators. The initial estimate of net service revenues is determined by reducing the standard charge by any contractual adjustments, discounts and implicit price concessions. Subsequent changes to the estimate of net service revenues are generally recorded in the period of the change. Subsequent changes that are determined to be the result of an adverse change in the patient’s ability to pay are recorded as bad debt expense. F- 8 Table of Contents Personal Care The majority of the Company’s net service revenues are generated from providing personal care services directly to consumers under contracts with state, local and other governmental agencies, managed care organizations, commercial insurers and private consumers. Generally, these contracts, which are negotiated based on current contracting practices as appropriate for the payor, establish the terms of a customer relationship and set the broad range of terms for services to be performed at a stated rate. However, the contracts do not give rise to rights and obligations until an order is placed with the Company. When an order is placed, it creates the performance obligation to provide a defined quantity of service hours, or authorized hours, per consumer. The Company satisfies its performance obligations over time, given that consumers simultaneously receive and consume the benefits provided by the Company as the services are performed. As the Company has a right to consideration from customers commensurate with the value provided to customers from the performance completed over a given invoice period, the Company has elected to use the practical expedient for measuring progress toward satisfaction of performance obligations and recognizes patient service revenue in the amount to which the Company has a right to invoice. Hospice Revenue The Company generates net service revenues from providing hospice services to consumers who are terminally ill as well as related services for their families. Net service revenues are recognized as services are provided and costs for delivery of such services are incurred. The estimated payment rates are daily rates for each of the levels of care the Company delivers. Hospice companies are subject to two specific payment limit caps under the Medicare program each federal fiscal year, the inpatient cap and the aggregate cap. The inpatient cap limits the number of inpatient care days provided to no more than 20% of the total days of hospice care provided to Medicare patients for the year. If a hospice exceeds the number of allowable inpatient care days, the hospice must refund any amounts received for inpatient care that exceed the total of: (i) the product of the total reimbursement paid to the hospice for inpatient care multiplied by the ratio of the maximum number of allowable inpatient days to the actual number of inpatient care days furnished by the hospice to Medicare patients; and (ii) the product of the number of actual inpatient days in excess of the limitation multiplied by the routine home care rate. The aggregate cap, which is calculated each federal fiscal year, limits the amount of Medicare reimbursement a hospice may receive, based on the number of Medicare patients served. If a hospice’s Medicare payments exceed its aggregate cap, it must repay Medicare for the excess amount. In federal fiscal year 2026, the aggregate cap is $ 35,361.44 . For both the years ended December 31, 2025 and 2024 , the Company recorded a liability of $ 1.7 million, related to the Medicare aggregate cap limit. Home Health Revenue The Company also generates net service revenues from providing home healthcare services directly to consumers mainly under contracts with Medicare and managed care organizations. Generally, these contracts, which are negotiated based on current contracting practices as appropriate for the payor, establish the terms of a relationship and set the broad range of terms for services to be performed on an episodic basis at a stated rate. Home health Medicare services are paid under the Medicare Home Health Prospective Payment System (“HHPPS”), which is based on 30 -day periods of care as a unit of service. The HHPPS permits multiple, continuous periods per patient. Medicare payment rates for periods under HHPPS are determined through use of a case-mix classification system, the Patient-Driven Groupings Model (“PDGM”), which assigns patients to resource groups based on a patient’s clinical characteristics. The Company elects to use the same 30 -day periods that Medicare recognizes as standard but accelerates revenue upon discharge to align with a patient’s episode length if less than the expected 30 days, which depicts the transfer of services and related benefits received by the patient over the term of the contract necessary to satisfy the obligations. The Company recognizes revenue based on the number of days elapsed during a period of care within the reporting period. The Company satisfies its performance obligations as consumers receive and consume the benefits provided by the Company as the services are performed. As the Company has a right to consideration from Medicare commensurate with the services provided to customers from the performance completed over a given episodic period, the Company has elected to use the practical expedient for measuring progress toward satisfaction of performance obligations. Under this method recognizing revenue ratably over the episode based on beginning and ending dates is a reasonable proxy for the transfer of benefit of the service. F- 9 Table of Contents Accounts Receivable and Allowances Accounts receivable is reduced to the amount expected to be collected in future periods for services rendered to customers prior to the balance sheet date. Management estimates the value of accounts receivable, net of allowances for implicit price concessions, based upon historical experience and other factors, including an aging of accounts receivable, evaluation of expected adjustments, past adjustments and collection experience in relation to amounts billed, current contract and reimbursement terms, shifts in payors and other relevant information. Collection of net service revenues the Company expects to receive is normally a function of providing complete and correct billing information to the payors within the various filing deadlines. The evaluation of these historical and other factors involves complex, subjective judgments impacting the determination of the implicit price concession assumption. In addition, the Company compares its cash collections to recorded net service revenues and evaluates its historical allowance, including implicit price concessions, based upon the ultimate resolution of the accounts receivable balance. Subsequent adjustments to accounts receivable determined to be the result of an adverse change in the payor’s ability to pay are recognized as provision for credit losses. The majority of what historically was classified as provision for credit losses under operating expenses is now treated as an implicit price concession factored into the determination of net service revenues discussed above. Our collection procedures include review of account aging and direct contact with our payors. We have historically not used collection agencies. An uncollectible amount is written off to the allowance account after reasonable collection efforts have been exhausted. As of December 31, 2025 and 2024 , the allowance for credit losses balance was $ 3.3 million and $ 3.5 million, respectively, which is included in accounts receivable, net of allowances for credit losses on the Company’s Consolidated Balance Sheets. Activity in the allowance for credit losses is as follows (in thousands): Allowance for credit losses Balance at beginning of period Additions/ charges Deductions (1) Balance at end of period Year ended December 31, 2025 Allowance for credit losses $ 3,532 1,563 1,792 $ 3,303 Year ended December 31, 2024 Allowance for credit losses $ 2,310 1,121 ( 101 ) $ 3,532 Year ended December 31, 2023 Allowance for credit losses $ 1,634 731 55 $ 2,310 ( 1 ) Write-offs, net of recoveries Property and Equipment Property and equipment are recorded at cost and depreciated over the estimated useful lives of the related assets by use of the straight-line method. Maintenance and repairs are charged to expense as incurred. The estimated useful lives of the property and equipment are as follows: In Years Computer equipment 3 - 5 Furniture and equipment 5 - 7 Transportation equipment 5 Computer software 3 - 10 Leasehold improvements Lesser of useful life or lease term F- 10 Table of Contents Leases The Company recognizes a lease liability and a right-of-use (“ROU”) asset for all leases, including operating leases, with a term greater than twelve months on the balance sheet. We have historically entered into operating leases for local branches, our corporate headquarters and certain equipment. The Company’s current leases have expiration dates through 2036. Certain of our arrangements have free rent periods and/or escalating rent payment provisions. We recognize rent expense on a straight-line basis over the lease term. Certain of the Company’s leases include termination options and renewal options for periods ranging from one to five years. Renewal options generally are not considered in determining the lease term, and payments associated with the option years are excluded from lease payments unless we are reasonably certain to exercise the renewal option. The operating lease liabilities are calculated using the present value of lease payments. If available, we use the rate implicit in the lease to discount lease payments to present value; however, most of our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. Operating lease assets are valued based on the initial operating lease liabilities plus any prepaid rent, reduced by tenant improvement allowances. Operating lease assets are tested for impairment in the same manner as our long-lived assets. For the year ended December 31, 2025 , the Company did not record material impairment charges on operating lease assets. For the years ended December 31, 2024 and 2023 , the Company recorded $ 5.0 million and $ 13,000 respectively, in impairment charges on operating lease assets, included within general administrative expenses. Goodwill and Intangible Assets Under business combination accounting, 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 Company’s significant identifiable intangible assets consist of customer and referral relationships, trade names and trademarks and state licenses. The Company uses various valuation techniques to determine initial fair value of its intangible assets, including relief-from-royalty, income approach, discounted cash flow analysis, and multi-period excess earnings, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Under these valuation approaches, we are required to make estimates and assumptions about future market growth and trends, forecasted revenue and costs, expected periods over which the assets will be utilized, appropriate discount rates and other variables. The Company estimates the fair values of the trade names using the relief-from-royalty method, which requires assumptions such as the long-term growth rates of future revenues, the relief from royalty rate for such revenue, the tax rate and the discount rate. The Company estimates the fair value of existing indefinite-lived state licenses based on a blended approach of the replacement cost method and cost savings method, which involves estimating the total process costs and opportunity costs to obtain a license, by estimating future earnings before interest and taxes and applying an estimated discount rate, tax rate and time to obtain the license. The Company estimates the fair value of existing finite-lived state licenses based on a method of analyzing the definite revenue streams with the license and without the license, which involves estimating revenues and expenses, estimated time to build up to a current revenue base, which is market specific, and the non-licensed revenue allocation, revenue growth rates, discount rate and tax amortization benefits. The Company estimates the fair value of customer and referral relationships based on a multi-period excess earnings method, which involves identifying revenue streams associated with the assets, estimating the attrition rates based upon historical financial data, expenses and cash flows associated with the assets, contributory asset charges, rates of return for specific assets, growth rates, discount rate and tax amortization benefits. The Company estimates the fair value of non-competition agreements based on a method of analyzing the factors to compete and factors not to compete, which involves estimating historical financial data, forecasted financial statements, growth rates, tax amortization benefit, discount rate, review of factors to compete and factors not to compete as well as an assessment of the probability of successful enforcement for each non-competition agreement. F- 11 Table of Contents As of December 31, 2025 and 2024 , goodwill was $ 996.7 million and $ 970.6 million, respectively, included on the Company’s Consolidated Balance Sheets. The Company’s carrying value of goodwill is the excess of the purchase price over the fair value of the net assets acquired from various acquisitions. In accordance with Accounting Standards Codification (“ASC”) Topic 350, Goodwill and Other Intangible Assets , goodwill and intangible assets with indefinite useful lives are not amortized. The Company tests goodwill for impairment at the reporting unit level on an annual basis, as of October 1, or whenever potential impairment triggers occur, such as a significant change in business climate or regulatory changes that would indicate that an impairment may have occurred. The Company may elect to use a qualitative test to determine whether impairment has occurred, focused on various factors including macroeconomic conditions, market trends, specific reporting unit financial performance and other entity specific events, to determine if it is more likely than not that the fair value of a reporting unit exceeds its carrying value, including goodwill. The Company may also bypass the qualitative assessment and perform a quantitative test. The quantitative goodwill impairment test involves comparing the fair value of a reporting unit with its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, then goodwill is not impaired. If the fair value of a reporting unit is less than its carrying value, then goodwill is impaired to the extent of the difference. For the year ended December 31, 2025 , the Company elected to perform a qualitative analysis to evaluate whether it was more likely than not that the fair value of its reporting units exceeded their carrying values. Based on the results of the qualitative analysis, the Company concluded that threshold was met, and no further quantitative goodwill impairment testing was required. For the years ended December 31, 2024 and 2023, the Company performed the quantitative analysis to evaluate whether an impairment occurred. Since quoted market prices for our reporting units are not available, the Company relies on widely accepted valuation techniques to determine fair value, including discounted cash flow and market multiple approaches, which capture both the future income potential of the reporting unit and the market behaviors and actions of market participants in the industry that includes the reporting unit. These types of models require us to make assumptions and estimates regarding future cash flows, industry-specific economic factors and the profitability of future business strategies. The discounted cash flow model uses a projection of estimated operating results and cash flows that are discounted using a weighted average cost of capital. The market multiple model estimates fair value based on market multiples of earnings before interest, taxes and depreciation and amortization. Under the discounted cash flow model, the projection uses management’s best estimates of economic and market conditions over the projected period for each reporting unit using significant assumptions such as revenue growth rates, operating margins and the weighted-average cost of capital. Based on the totality of the information available, the Company concluded that it was more likely than not that the estimated fair values of our reporting units were greater than their carrying values. Consequently, the Company concluded that there were no impairments for the years ended December 31, 2025 , 2024 or 2023 . The Company bases its fair value estimates on assumptions management believes to be reasonable but which are unpredictable and inherently uncertain. Actual future results may differ from those estimates. As of December 31, 2025 and 2024 , intangibles, net of accumulated amortization, was $ 102.4 million and $ 109.6 million, respectively, included on the Company’s Consolidated Balance Sheets. The Company’s identifiable intangible assets consist of customer and referral relationships, trade names, trademarks, state licenses and non-competition agreements. Definite-lived intangible assets are amortized using straight-line and accelerated methods based upon the estimated useful lives of the respective assets, which range from one to twenty years, and assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Customer and referral relationships are amortized systematically over the periods of expected economic benefit, which range from three to fifteen years. The Company would recognize an impairment loss when the estimated future non-discounted cash flows associated with the intangible asset are less than the carrying value. An impairment charge would then be recorded for the excess of the carrying value over the fair value. The Company estimates the fair value of these intangible assets using the income approach. In accordance with ASC Topic 350, Goodwill and Other Intangible Assets , intangible assets with indefinite useful lives are not amortized. We test intangible assets with indefinite useful lives for impairment at the reporting unit level on an annual basis, as of October 1, or whenever potential impairment triggers occur, such as a significant change in business climate or regulatory changes that would indicate that an impairment may have occurred. No impairment charge was recorded for the years ended December 31, 2025 , 2024 or 2023 . Amortization of intangible assets is reported in the statement of income caption, “Depreciation and amortization” and not included in the income statement caption cost of service revenues. Debt Issuance Costs The Company amortizes debt issuance costs on a straight-line method over the term of the related debt. This method approximates the effective interest method. The Company has classified the debt issuance costs as a direct deduction from the carrying amount of the related liability. F- 12 Table of Contents Workers ’ Compensation Program The Company’s workers’ compensation insurance program has a $ 0.4 million deductible component. The Company recognizes its obligations associated with this program in the period the claim is incurred. The cost of both the claims reported and claims incurred but not reported, up to the deductible, have been accrued based on historical claims experience, industry statistics and an actuarial analysis. The future claims payments related to the workers’ compensation program are secured by letters of credit. These letters of credit totaled $ 7.9 million at December 31, 2025 and $ 8.0 million at December 31, 2024. The Company monitors its claims quarterly and adjusts its reserves as necessary in the current period. These costs are recorded primarily as cost of services on the Consolidated Statements of Income. As of December 31, 2025 and 2024 , the Company recorded $ 13.7 million and $ 13.6 million, respectively, in accrued workers’ compensation insurance on the Company’s Consolidated Balance Sheets. As of December 31, 2025 and 2024 , the Company recorded $ 0.5 million and $ 0.8 million, respectively, in workers’ compensation insurance receivables. The workers’ compensation insurance receivable is included in prepaid expenses and other current assets on the Company’s Consolidated Balance Sheets. Interest Expense Interest expense is reported in the Consolidated Statements of Income when incurred and consists of interest and unused credit line fees on the credit facility. Income Tax Expense The Company accounts for income taxes under the provisions of ASC Topic 740, Income Taxes. The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in its financial statements or tax returns. Deferred taxes, resulting from differences between the financial and tax basis of the Company’s assets and liabilities, are also adjusted for changes in tax rates and tax laws when changes are enacted. ASC Topic 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. ASC Topic 740 also prescribes a recognition threshold and measurement process for recording in the financial statements uncertain tax positions taken or expected to be taken in a tax return. In addition, ASC Topic 740 provides guidance on derecognition, classification, accounting in interim periods and disclosure requirements for uncertain tax positions. The Company recognizes interest and penalties accrued related to uncertain tax positions in interest expense and penalties within operating expenses on the Consolidated Statements of Income. Uncertain tax positions are immaterial for all periods presented. Stock-based Compensation The Company currently has one stock incentive plan, the Amended and Restated 2017 Omnibus Incentive Plan (the “A&R 2017 Plan”), under which new grants of stock-based employee compensation are made. The Company accounts for stock-based compensation in accordance with ASC Topic 718, Stock Compensation . Compensation expense is recognized on a straight-line basis under the A&R 2017 Plan over the vesting period of the equity awards based on the grant date fair value of the options and restricted stock awards. The Company utilizes the Black-Scholes Option Pricing Model to value the Company’s options. Forfeitures are recognized when they occur. Stock-based compensation expense was $ 16.4 million, $ 11.2 million and $ 10.3 million for the years ended December 31, 2025, 2024 and 2023 , respectively, included within general and administrative expenses on the Consolidated Statements of Income. Diluted Net Income Per Common Share Diluted net income per common share, calculated on the treasury stock method, is based on the weighted average number of shares outstanding during the period. The Company’s outstanding securities that may potentially dilute the common stock are stock options and restricted stock awards. Included in the Company’s calculation of diluted earnings per share for the year ended December 31, 2025 were approximately 296,000 stock options outstanding, of which approximately 208,000 were dilutive. In addition, there were approximately 381,000 restricted stock awards outstanding, of which approximately 131,000 were dilutive for the year ended December 31, 2025 . Included in the Company’s calculation of diluted earnings per share for the year ended December 31, 2024 were approximately 406,000 stock options outstanding, of which approximately 259,000 were dilutive. In addition, there were approximately 244,000 restricted stock awards outstanding, of which approximately 115,000 were dilutive for the year ended December 31, 2024 . F- 13 Table of Contents Included in the Company’s calculation of diluted earnings per share for the year ended December 31, 2023 were approximately 455,000 stock options outstanding, of which approximately 234,000 were dilutive. In addition, there were approximately 201,000 restricted stock awards outstanding, of which approximately 82,000 were dilutive for the year ended December 31, 2023 . Use of Estimates The financial statements are prepared by management in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) and include estimated amounts and certain disclosures based on assumptions about future events. The Company’s critical accounting estimates include the following areas: revenue recognition, goodwill and intangibles and business combinations and when required, the quantitative assessment of goodwill. Actual results could differ from those estimates. Fair Value Measurements The Company’s financial instruments consist of cash, accounts receivable, payables and debt. The carrying amounts reported on the Company’s Consolidated Balance Sheets for cash, accounts receivable, accounts payable and accrued expenses approximate fair value because of the short-term nature of these instruments. The carrying value of the Company’s long-term debt with variable interest rates approximates fair value based on instruments with similar terms using level 2 inputs as defined under ASC Topic 820, Fair Value Measurement . The Company applies fair value techniques on a non-recurring basis associated with valuing potential impairment losses related to goodwill, if required, and indefinite-lived intangible assets and also when determining the fair value of contingent consideration, if applicable. To determine the fair value in these situations, the Company uses Level 3 inputs, under ASC Topic 820 and defined as unobservable inputs in which little or no market data exists; therefore requiring an entity to develop its own assumptions, such as discounted cash flows, or if available, what a market participant would pay on the measurement date. The Company uses various valuation techniques to determine fair value of its intangible assets, including relief-from-royalty, income approach, discounted cash flow analysis, and multi-period excess earnings, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Under these valuation approaches, we are required to make estimates and assumptions about future market growth and trends, forecasted revenue and costs, expected periods over which the assets will be utilized, appropriate discount rates and other variables. Going Concern In connection with the preparation of the financial statements for the years ended December 31, 2025 and 2024 , the Company conducted an evaluation as to whether there were conditions and events, considered in the aggregate, which raised substantial doubt as to the entity’s ability to continue as a going concern within one year after the date of the issuance, of the financial statements. Based on the evaluation, we believe that cash flows from operations will be sufficient to meet our ongoing liquidity requirements for at least twelve months from the date of issuance. Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023 - 09, Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. ASU 2023 - 09 is effective for fiscal years beginning after December 15, 2024. The Company adopted ASU 2023 - 09 during the year ended December 31, 2025. Adoption of the standard did not have a material impact on the Company’s consolidated financial statements and expanded income tax disclosures. Recently Issued Accounting Pronouncements In November 2024, the FASB issued ASU 2024 - 03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220 - 40 ): Disaggregation of Income Statement Expenses. The new guidance is intended to provide investors more detailed disclosures around specific types of expenses. The new disclosures require certain details for expenses presented on the face of the Consolidated Statements of Operations as well as selling expenses to be presented in the notes to the financial statements. ASU 2024 - 03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The disclosure updates are required to be applied prospectively with the option for retrospective application. The Company is currently evaluating the impact of adopting the updated provisions. F- 14 Table of Contents 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 evaluating the impact of the updated provisions. In September 2025, the FASB issued ASU 2025 - 06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350 - 40 ): Targeted Improvements to the Accounting for Internal-Use Software. The new guidance intends to modernize the guidance related to internal-use software costs to reflect current software development methods. It requires entities to begin capitalizing software costs when management authorizes and commits to funding the software project, and it is probable the project will be completed and the software will be used for its intended purpose. ASU 2025 - 06 is effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years, and may be adopted using a prospective, retrospective, or modified transition approach. Early adoption is permitted. The Company is currently evaluating the impact on its consolidated financial statements. In December 2025, the FASB issued ASU 2025 - 10, Government Grants (Topic 832 ): Accounting for Government Grants Received by Business Entities, which provides guidance on the recognition, measurement, and presentation of government grants. ASU 2025 - 10 is effective for fiscal years beginning after December 15, 2028, and interim periods within those fiscal years, and permits modified prospective, modified retrospective, or full retrospective adoption, with early adoption permitted. The Company has evaluated the guidance and does not expect adoption to have a material impact on its consolidated financial statements or related disclosures. In December 2025, the FASB issued ASU 2025 - 11, Interim Reporting (Topic 270 ): Narrow-Scope Improvements, which clarifies certain interim reporting guidance. ASU 2025 - 11 is effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years. The Company has evaluated the guidance and does not expect adoption to have a material impact on its consolidated financial statements. 2. Leases Amounts reported on the Company’s Consolidated Balance Sheets for operating leases were as follows: December 31, 2025 2024 (Amounts in Thousands) Operating lease assets, net $ 43,713 $ 47,348 Short-term operating lease liabilities 13,144 12,800 Long-term operating lease liabilities 37,259 41,883 Total operating lease liabilities $ 50,403 $ 54,683 Lease Costs Components of lease costs were reported in general and administrative expenses in the Company’s Consolidated Statements of Income as follows: For the Years Ended December 31, (Amounts in Thousands) 2025 2024 2023 Operating lease costs $ 14,658 $ 13,386 $ 13,026 Short-term lease costs 1,118 735 1,147 Total lease costs 15,776 14,121 14,173 Less: sublease income ( 226 ) ( 2,267 ) ( 2,770 ) Total lease costs, net $ 15,550 $ 11,854 $ 11,403 F- 15 Table of Contents Lease Term and Discount Rate Weighted average remaining lease terms and discount rates were as follows: December 31, 2025 2024 2023 Operating leases: Weighted average remaining lease term 5.05 5.48 6.26 Weighted average discount rate 6.37 % 6.20 % 5.47 % Maturity of Lease Liabilities Remaining operating lease payments as of December 31, 2025 were as follows: Operating Leases (Amounts in Thousands) Due in 12-month period ended December 31, 2026 $ 15,784 2027 12,565 2028 8,920 2029 6,822 2030 5,642 Thereafter 9,779 Total future minimum rental commitments 59,512 Less: Imputed interest ( 9,109 ) Total lease liabilities $ 50,403 Supplemental Cash Flow Information For the Years Ended December 31, (Amounts in Thousands) 2025 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,775 $ 14,783 $ 14,396 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 9,305 $ 15,489 $ 17,221 3. Public Offering On June 28, 2024, the Company completed a public offering of an aggregate 1,725,000 shares of common stock, par value $ 0.001 per share, including 225,000 shares of common stock sold pursuant to the exercise in full by the underwriters of their option to purchase additional shares, at a public offering price of $ 108.00 per share (the “Public Offering”). The Company received net proceeds of approximately $ 175.6 million, after deducting underwriting discounts and estimated offering expenses of approximately $ 10.7 million. The Company used approximately $ 81.4 million from the net proceeds of the Public Offering for the repayment of indebtedness outstanding under its credit facility and may use any remaining net proceeds of the Public Offering for general corporate purposes, including the Gentiva Acquisition and any future acquisitions or investments. The Public Offering resulted in an increase to additional paid in capital of approximately $ 175.6 million on the Company’s Consolidated Balance Sheet at December 31, 2024. F- 16 Table of Contents 4. Acquisitions 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 Consolidated Statements of Income from the date of the 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 Acquisition 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 markets in Pennsylvania. The related acquisition and integration costs were $ 0.9 million and $ 0.3 million for the twelve months ended December 31, 2025, respectively. These costs were included in general and administrative expenses on the Consolidated Statements of Income and were expensed as incurred. Total (Amounts in Thousands) Goodwill $ 19,022 Identifiable intangible assets 1,150 Cash 584 Accounts receivable 1,365 Property and equipment 19 Operating lease assets, net 282 Other current assets 45 Accounts payable ( 98 ) Accrued payroll ( 697 ) Operating lease liabilities, total ( 257 ) Total purchase price $ 21,415 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 Helpings Hands Acquisition accounted for $ 7.2 million of net service revenues and $ 0.8 million of operating income for the year ended December 31, 2025. F- 17 Table of Contents Gentiva Acquisition On December 2, 2024, the Company completed the Gentiva Acquisition. The purchase price was approximately $ 353.6 million and is subject to the completion of working capital and related adjustments. In 2025, the Company received $ 2.9 million in proceeds for purchase price adjustments. The purchase was funded with the combination of a $ 233.0 million draw on the Company’s revolving credit facility and a portion of the net proceeds of the Public Offering. With the Gentiva Acquisition, the Company expanded its services within its personal care services segment in Arizona, Arkansas, California and North Carolina, and entered the market in Missouri and Texas. The home health segment also was expanded in Tennessee. The related acquisition and integration costs were $ 10.8 million and $ 1.0 million, respectively, for the year ended December 31, 2024. These costs are included in general and administrative expenses on the Consolidated Statements of Income and were expensed as incurred. Based upon management’s valuations, the fair values of the assets and liabilities acquired are as follows: Total (Amounts in Thousands) Goodwill $ 309,898 Identifiable intangible assets 28,600 Cash 19 Accounts receivable 24,715 Property and equipment 1,112 Operating lease assets, net 6,838 Other current assets 71 Accounts payable ( 1,555 ) Accrued payroll ( 5,648 ) Operating lease liabilities, total ( 6,386 ) Deferred tax liabilities, net ( 4,099 ) Total purchase price $ 353,565 Identifiable intangible assets acquired included $ 4.9 million in a trade name, $ 23.0 million of definite-lived state licenses and $ 0.7 million of indefinite-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 Gentiva Acquisition accounted for $ 22.6 million of net service revenues and $ 3.1 million of operating income for the year ended December 31, 2024. Tennessee Quality Care On August 1, 2023, the Company completed the acquisition of Tennessee Quality Care. The purchase price was approximately $ 111.2 million, including the amount of acquired excess cash held by Tennessee Quality Care at the closing of the acquisition (approximately $ 2.4 million), and is subject to the completion of working capital and related adjustments. The Tennessee Quality Care acquisition was funded with a combination of a $ 110.0 million draw on the Company’s revolving credit facility and available cash. With the purchase of Tennessee Quality Care, the Company expanded its services within its hospice and home health segments to Tennessee. The related acquisition and integration costs were $ 2.1 million and $ 1.0 million, respectively, for the year ended December 31, 2023. These costs are included in general and administrative expenses on the Consolidated Statements of Income and were expensed as incurred. F- 18 Table of Contents Based upon management’s valuations, the fair values of the assets and liabilities acquired are as follows: Total (Amounts in Thousands) Goodwill $ 79,346 Identifiable intangible assets 26,740 Cash 2,357 Accounts receivable 5,940 Property and equipment 307 Operating lease assets, net 194 Other assets 200 Accrued expenses ( 1,407 ) Accrued payroll ( 2,368 ) Long-term operating lease liabilities ( 80 ) Total purchase price $ 111,229 Identifiable intangible assets acquired included $ 7.5 million in a trade name and $ 19.2 million of indefinite-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 Tennessee Quality Care acquisition accounted for $ 16.3 million of net service revenues and $ 3.0 million of operating income for the year ended December 31, 2023. Other Acquisitions On October 1, 2025, we completed our acquisition of the assets of Gold Horses, LLC for approximately $ 7.4 million (the “Gold Horses Acquisition”) with funding provided by available cash. With the Gold Horses Acquisition, the Company expanded its personal care segment in Texas and recognized goodwill in its personal care segment of $ 7.4 million. On March 1, 2025, we completed our acquisition of the assets of Great Lakes Home Care Unlimited, LLC for $ 2.6 million (the “Great Lakes Acquisition”) with funding provided by available cash. 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 January 1, 2025, we completed our acquisition of our Jacksonville affiliate for approximately $ 0.8 million (the “Jacksonville Acquisition”), with funding provided by available cash. With the Jacksonville Acquisition, the Company expanded its personal care segment in Florida and recorded goodwill of $ 0.8 million. On March 9, 2024, we completed our acquisition of the operations of Upstate (“Upstate”) for $ 0.4 million, with funding provided by available cash. With the purchase of Upstate, the Company expanded its personal care services segment in South Carolina. On January 1, 2023, we completed the acquisition of CareStaff for approximately $ 1.0 million, with funding provided by available cash. With the purchase of CareStaff, the Company expanded its personal care services segment in Florida and recorded goodwill of $ 0.6 million. F- 19 Table of Contents For the year ended December 31, 2025 , the following table contains unaudited pro forma Consolidated Income Statement information of the Company as if the Helping Hands Acquisition closed on January 1, 2024. For the year ended December 31, 2024 , the following table contains unaudited pro forma Consolidated Income Statement information of the Company as if the Gentiva Acquisition closed on January 1, 2023. For the year ended December 31, 2023, the following table contains unaudited pro forma Consolidated Income Statement information of the Company as if the acquisition of Tennessee Quality Care closed on January 1, 2022. For the Years Ended December 31, (Amounts in Thousands, Unaudited) 2025 2024 2023 Net service revenues $ 1,433,474 $ 1,427,474 $ 1,363,545 Operating income from continuing operations 139,646 140,291 129,103 Net income from continuing operations 96,894 104,334 90,340 Net income per common share Basic income per share $ 5.37 $ 6.14 $ 5.65 Diluted income per share $ 5.27 $ 6.00 $ 5.54 The pro forma disclosures in the table above include adjustments for amortization of intangible assets, tax expense and acquisition costs to reflect results that are more representative of the combined results of the transactions. This pro forma information is presented for illustrative purposes only and may not be indicative of the results of operations that would have actually occurred. In addition, future results may vary significantly from the results reflected in the pro forma information. The unaudited pro forma financial information does not reflect the impact of future events that may occur after the acquisition, such as anticipated cost savings from operating synergies. 5. Divestiture 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”). The purchase included 50 % cash consideration, paid out as an initial payment of $ 4.6 million, $ 6.9 million paid pro rata as a deferred payment as caregivers are transferred and 50 % in the form of contingent consideration for the Company’s New York Consumer Directed Personal Assistance Program (“CDPAP”) business. The Company entered into a consulting agreement with the purchaser effective May 20, 2024, as the transfer of clients and caregivers and payment for assets pursuant to the New York Asset Sale is occurring over time as regulatory approvals are received, coordination of the transfer of clients and caregivers occurs, and the change of control takes place. The Company determined that the consulting agreement gave it the ability to control the business until October 2024, when the Company determined that it no longer controlled the business as it transferred more than 50 % of the clients and caregivers and therefore qualified for the sale consideration of the New York Asset Sale. As a result, the Company deconsolidated the results of its New York operations and recorded a gain on divestiture of $ 3.7 million during the year ended December 31, 2024. The gain was reflected within general and administrative expenses on the consolidated statement of operations. In connection with this transaction, the Company ceased operations in New York. During the twelve months ended December 31, 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 December 31, 2025. No amount was recorded related to the CDPAP business contingent consideration. The New York Asset Sale did not qualify as a discontinued operation because it did not represent a strategic shift that has or will have a major effect on the Company’s operation or financial results. F- 20 Table of Contents 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 December 31, 2025 , were as follows (amounts in thousands): December 31, 2025 Assets Current assets Accounts receivable, net of allowances $ — Prepaid expenses and other current assets 13 Total current assets 13 Property and equipment, net of accumulated depreciation and amortization — Other assets Goodwill — Intangibles, net of accumulated amortization — Operating lease assets, net 2,548 Total other assets 2,548 Total assets $ 2,561 Liabilities Current liabilities Accounts payable $ 201 Accrued payroll — Accrued expenses — Operating lease liabilities, current portion 602 Total current liabilities 803 Long-term liabilities Operating lease liabilities, long-term portion 1,897 Total liabilities $ 2,700 6. Property and Equipment Property and equipment consisted of the following: December 31, 2025 2024 (Amounts in Thousands) Computer software $ 30,599 $ 27,208 Computer equipment 16,199 12,809 Leasehold improvements 12,228 11,773 Furniture and equipment 7,147 6,532 Transportation equipment 106 231 66,279 58,553 Less: accumulated depreciation and amortization ( 41,281 ) ( 33,850 ) $ 24,998 $ 24,703 Computer software includes $ 1.3 million of internally developed software for both the years ended December 31, 2025 and 2024 . Depreciation and amortization expense totaled $ 7.8 million, $ 6.6 million and $ 6.9 million for the years ended December 31, 2025, 2024 and 2023 , respectively. F- 21 Table of Contents 7. Goodwill and Intangible Assets A summary of goodwill by segment and related adjustments is provided below: Goodwill Hospice Personal Care Home Health Total (Amounts In Thousands) Goodwill at December 31, 2023 $ 432,799 $ 153,276 $ 76,920 $ 662,995 Additions for acquisitions — 292,204 18,094 310,298 Adjustments to previously recorded goodwill 41 ( 2,954 ) 178 ( 2,735 ) Goodwill at December 31, 2024 432,840 442,526 95,192 970,558 Additions for acquisitions — 30,187 — 30,187 Adjustments to previously recorded goodwill 26 ( 3,732 ) ( 343 ) ( 4,049 ) Goodwill at December 31, 2025 $ 432,866 $ 468,981 $ 94,849 $ 996,696 In 2025, the Company recognized goodwill in the personal care services segment of $ 30.2 million related to the Jacksonville Acquisition, the Great Lakes Acquisition, the Helping Hands Acquisition and the Gold Horses Acquisition. In 2024, the Company recognized goodwill in the personal care services segment of $ 292.2 million related to the acquisition of Upstate and the Gentiva Acquisition and recognized goodwill in the home health segment of $ 18.1 million related to the Gentiva Acquisition. In connection with the acquisition of Tennessee Quality Care in 2023, the Company recognized goodwill in its hospice and home health segments of $ 35.0 million and $ 44.3 million, respectively. The Company also recognized goodwill of $ 0.6 million related to the CareStaff acquisition in the personal care services segment in 2023. Goodwill adjustments to previously recorded goodwill are generally related to accounts receivable and accrued expenses based on the final valuations. See Note 4 to the Notes to Consolidated Financial Statements for additional information regarding the acquisitions made by the Company in 2024 and 2023, and Note 5 for additional information regarding the divestiture for New York Asset Sale. The Company’s identifiable intangible assets consist of customer and referral relationships, trade names and trademarks, non-competition agreements and state licenses. Amortization is computed using straight-line and accelerated methods based upon the estimated useful lives of the respective assets, which range from one to twenty years. Customer and referral relationships are amortized systematically over the periods of expected economic benefit, which range from three to fifteen years. Goodwill and certain state licenses are not amortized pursuant to ASC Topic 350. We test intangible assets with indefinite useful lives for impairment at the reporting unit level on an annual basis, as of October 1, or whenever potential impairment triggers occur, such as a significant change in business climate or regulatory changes that would indicate that an impairment may have occur red. The Company did not record any impairment charges for the years ended December 31, 2025, 2024 or 2023. For the years ended December 31, 2024 and 2023, the Company performed its annual goodwill impairment test using a quantitative analysis, which compares the estimated fair value of each reporting unit to its carrying value. The Company estimates the fair value of the reporting unit using both a discounted cash flow model as well as a market multiple model. The cash flow forecasts are adjusted by an appropriate discount rate based on the Company’s estimate of a market participant’s weighted-average cost of capital. These models are both based on the Company’s best estimate of future revenues and operating costs and are reconciled to the Company’s consolidated market capitalization, with consideration of the amount a potential acquirer would be required to pay, in the form of a control premium. The determination of fair value in the Company’s goodwill impairment analysis is based on an estimate of fair value for each reporting unit utilizing known and estimated inputs at the evaluation date. Some of those inputs include, but are not limited to, the most recent price of the Company’s common stock and fair value of long term debt, estimates of future revenue and expense growth, estimated market multiples, expected capital expenditures, income tax rates and cost of invested capital. For the years ended December 31, 2024 and 2023, under the quantitative assessment, the Company’s estimated fair values of each of its reporting units exceeded the respective carrying amounts. F- 22 Table of Contents For the year ended December 31, 2025, the Company elected to perform a qualitative assessment to evaluate whether it was more likely than not that the fair value of each reporting unit is less than its carrying amount. As part of the qualitative assessments, the Company considered (i) the magnitude of the reporting unit’s excess fair value over its carrying amount from the most recent quantitative impairment test, (ii) industry and market conditions, including the impacts of the interest rate environment, (iii) historical financial performance, including our revenue, earnings, and operating cash flow growth trends, (iv) the Company’s forecasts of revenue, earnings, and operating cash flows, (v) cost factors, including the effects of inflation and rising prices, (vi) the regulatory environment, (vii) other factors specific to each reporting unit, such as a change in strategy, a change in management, or acquisitions and divestitures affecting the composition of the reporting unit and its future operating results, and (viii) consideration of changes in the Company’s market capitalization. For the year ended December 31, 2025, under the qualitative assessment, the Company concluded that it was more likely than not that the fair value of each of its reporting units exceeded its respective carrying amounts as of the annual testing date. The carrying amount and accumulated amortization of each identifiable intangible asset category consisted of the following at December 31, 2025 and 2024 : December 31, 2025 December 31, 2024 (Amounts in Thousands) (Amounts in Thousands) Estimated Useful Life Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Customer and referral relationships (in years) 3 - 15 $ 34,201 $ ( 33,656 ) $ 545 $ 34,201 $ ( 33,255 ) $ 946 Trade names and trademarks (in years) 1 - 20 59,366 ( 26,535 ) 32,831 59,366 ( 21,900 ) 37,466 Non-competition agreement (in years) 3 - 5 6,728 ( 6,663 ) 65 6,728 ( 6,263 ) 465 State Licenses (in years) 6 - 10 26,529 ( 4,190 ) 22,339 24,981 ( 1,243 ) 23,738 State Licenses Indefinite 46,630 — 46,630 47,028 — 47,028 Total intangible assets $ 173,454 $ ( 71,044 ) $ 102,410 $ 172,304 $ ( 62,661 ) $ 109,643 During the year ended December 31, 2025 , the Company acquired state licenses of $ 1.2 million in connection with the Helping Hands Acquisition. During the year ended December 31, 2024 , the Company acquired state licenses and a trade name of $ 23.0 million and $ 4.9 million, respectively, in its personal care services segment related to the Gentiva Acquisition. The Company also acquired indefinite-lived state licenses of $ 0.7 million in its home health segment in connection with the Gentiva Acquisition. Amortization expense related to the identifiable intangible assets amounted to $ 8.4 million, $ 6.7 million and $ 7.1 million for the years ended December 31, 2025, 2024 and 2023 , respectively. The weighted average remaining useful life of identifiable intangible assets as of December 31, 2025 , is 9.11 years. The estimated future intangible amortization expense is as follows: For the year ended December 31, Total (Amount in Thousands) 2026 $ 7,638 2027 7,312 2028 5,601 2029 5,497 2030 5,423 Thereafter 24,309 Total intangible assets subject to amortization $ 55,780 F- 23 Table of Contents 8. Details of Certain Balance Sheet Accounts Prepaid expenses and other current assets consisted of the following: December 31, 2025 2024 (Amounts in Thousands) Income tax receivable $ 10,520 $ 11,568 Prepaid payroll 7,960 8,716 Prepaid workers’ compensation and liability insurance 5,694 4,254 Prepaid licensing fees 4,167 5,414 Workers’ compensation insurance receivable 474 810 Other (1) 7,364 7,829 Total prepaid expenses and other current assets $ 36,179 $ 38,591 ( 1 ) Included $ 2.3 and $ 6.1 million related to the New York Asset Sale deferred payments as of December 31, 2025 , and December 31, 2024, respectively. Accrued expenses consisted of the following: December 31, 2025 2024 (Amounts in Thousands) Accrued health benefits $ 6,643 $ 6,637 Accrued professional fees 6,390 5,368 Accrued payroll and other taxes 2,242 4,516 Other 12,916 12,438 Total accrued expenses $ 28,191 $ 28,959 9. Long-Term Debt Long-term debt consisted of the following: December 31, 2025 2024 (Amounts in Thousands) Revolving loan under the credit facility $ 124,335 $ 223,000 Less unamortized issuance costs ( 3,376 ) ( 4,557 ) Long-term debt $ 120,959 $ 218,443 Amended and Restated Senior Secured Credit Facility On October 31, 2018, the Company entered into the Amended and Restated Credit Agreement, with certain lenders and Capital One, National Association, as a lender and as agent for all lenders, as amended by the First Amendment to Amended and Restated Credit Agreement, dated as of September 12, 2019, as further amended by the Second Amendment to Amended and Restated Credit Agreement, dated as of July 30, 2021, as further amended by the Third Amendment to Amended and Restated Credit Agreement, dated as of April 26, 2023, and as further amended by the Fourth Amendment to Amended and Restated Credit Agreement, dated as of October 22, 2024 ( as described below, the “Fourth Amendment”) (as amended, the “Credit Agreement”, as used throughout this Annual Report on Form 10 -K, “credit facility” shall mean the credit facility evidenced by the Credit Agreement). The credit facility consists of a $ 650.0 million revolving credit facility and a $ 150.0 million incremental loan facility, which incremental loan facility may be for term loans or an increase to the revolving loan commitments. The maturity of this credit facility is July 30, 2028. F- 24 Table of Contents On October 22, 2024, the Company entered into the Fourth Amendment to, among other things, (a) increase the Company’s revolving credit facility to an aggregate amount of $ 650.0 million, (b) increase the Company’s incremental loan facility to an aggregate amount of $ 150.0 million, and (c) extend the maturity date of the credit facility from July 30, 2026 to July 30, 2028 . Interest on the credit facility may be payable at ( x ) the sum of (i) an applicable margin ranging from 0.75 % to 1.50 % based on the applicable senior net leverage ratio plus (ii) a base rate equal to the greatest of (a) the rate of interest last quoted by The Wall Street Journal as the “prime rate,” (b) the sum of the federal funds rate plus a margin of 0.50 % and (c) the sum of Term SOFR (as published by the CME Group Benchmark Administrative Limited) for an interest period of one month for such applicable day ( not to be less than 0.00 %), plus a margin of 1.00 % or (y) the sum of (i) an applicable margin ranging from 1.75 % to 2.50 % based on the applicable senior net leverage ratio plus (ii) the rate per annum equal to the sum of Term SOFR (as published by the CME Group Benchmark Administrative Limited) for the applicable interest period ( not to be less than 0.00 %). Swing loans may not be SOFR loans. Addus HealthCare, Inc. (“Addus HealthCare”) is the borrower, and its parent, Holdings, and substantially all of Holdings’ subsidiaries are guarantors under this credit facility, and it is collateralized by a first priority security interest in all of the Company’s and the other credit parties’ current and future tangible and intangible assets, including the shares of stock of the borrower and subsidiaries. The Credit Agreement contains affirmative and negative covenants customary for credit facilities of this type, including limitations on the Company with respect to liens, indebtedness, guaranties, investments, distributions, mergers and acquisitions and dispositions of assets. The availability of additional draws under this credit facility is conditioned, among other things, upon (after giving effect to such draws) the Total Net Leverage Ratio (as defined in the Credit Agreement) not exceeding 3.75:1.00. In certain circumstances, in connection with a Material Acquisition (as defined in the Credit Agreement), the Company can elect to increase its Total Net Leverage Ratio compliance covenant to 4.25:1.00 for the then current fiscal quarter and the three succeeding fiscal quarters. The Company pays a fee ranging from 0.20 % to 0.35 % based on the applicable senior net leverage ratio times the unused portion of the revolving loan portion of the credit facility. The Credit Agreement contains customary affirmative covenants regarding, among other things, the maintenance of records, compliance with laws, maintenance of permits, maintenance of insurance and property and payment of taxes. The Credit Agreement also contains certain customary financial covenants and negative covenants that, among other things, include a requirement to maintain a minimum Interest Coverage Ratio (as defined in the Credit Agreement) and a requirement to stay below a maximum Total Net Leverage Ratio (as defined in the Credit Agreement). 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. As of December 31, 2025 , the Company was in compliance with all financial covenants under the Credit Agreement. During the twelve months ended December 31, 2025 , the Company (i) drew approximately $ 11.3 million under its credit facility to fund, in part, the Helping Hands Acquisition and (ii) repaid $ 110.0 million under the revolving credit facility. At December 31, 2025 , the Company had a total of $ 124.3 million of revolving loans, with an interest rate of 5.48 %, 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 $ 517.7 million available for borrowing under its credit facility. During the twelve months ended December 31, 2024 , the Company (i) drew approximately $ 233.0 million under its credit facility to fund, in part, the Gentiva Acquisition and (ii) repaid $ 136.4 million under the revolving credit facility. At 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. After giving effect to the amount drawn on its 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), the Company had $ 577.7 million of capacity and $ 346.6 million available for borrowing under its credit facility. F- 25 Table of Contents 10. Income Taxes The current and deferred federal and state income tax provision from continuing operations, are comprised of the following: For the Years Ended December 31, (Amounts in Thousands) 2025 2024 2023 Current Federal $ 10,775 $ 8,998 $ 11,839 State 2,893 3,533 4,139 Deferred Federal 14,732 11,258 2,306 State 3,135 1,966 526 Provision for income taxes $ 31,535 $ 25,755 $ 18,810 The tax effects of certain temporary differences between the Company’s book and tax bases of assets and liabilities give rise to significant portions of the deferred income tax assets (liabilities) at December 31, 2025 and 2024 . The deferred tax assets (liabilities) consisted of the following: For the Years Ended December 31, (Amounts in Thousands) 2025 2024 Deferred tax assets Long-term Accounts receivable allowances $ 14,343 $ 20,843 Operating lease liabilities 12,802 14,917 Accrued compensation 5,901 5,683 Accrued workers’ compensation 3,355 3,253 Transaction costs 2,610 2,547 Stock-based compensation 1,698 1,400 Net operating loss 59 73 Restructuring costs — 555 Other 2,865 2,517 Total long-term deferred tax assets 43,633 51,788 Deferred tax liabilities Long-term Goodwill and intangible assets ( 72,059 ) ( 61,177 ) Operating lease assets, net ( 10,562 ) ( 12,521 ) Property and equipment ( 3,603 ) ( 2,796 ) Insurance premiums ( 1,446 ) ( 1,079 ) Other ( 28 ) ( 35 ) Total long-term deferred tax liabilities ( 87,698 ) ( 77,608 ) Total net deferred tax (liabilities) assets $ ( 44,065 ) $ ( 25,820 ) Management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers all available evidence in making this assessment. F- 26 Table of Contents A reconciliation for continuing operations of the statutory federal tax rate of 21.0 % to the effective income tax rate is summarized as follows: For the Years Ended December 31, (Amounts in Thousands) 2025 2024 2023 U.S. federal statutory tax rate $ 26,763 21.0 % $ 20,864 21.0 % $ 17,079 21.0 % State and local taxes, net of federal income tax effect* 6,019 4.7 5,469 5.5 4,667 5.7 Tax credits Work opportunity tax credits, net of federal taxable income add back ( 2,923 ) ( 2.3 ) ( 2,844 ) ( 2.9 ) ( 2,765 ) ( 3.4 ) Other credit programs ( 711 ) ( 0.6 ) ( 474 ) ( 0.4 ) ( 474 ) ( 0.6 ) Nontaxable or nondeductible items 162(m) compensation 4,830 3.8 1,992 2.0 1,409 1.7 Excess tax benefit ( 2,433 ) ( 1.9 ) ( 408 ) ( 0.4 ) ( 320 ) ( 0.4 ) Stock acquisition cost — — 1,081 1.1 4 0.1 Other nondeductible items 181 0.2 130 0.1 176 0.2 Other adjustments Federal RTP ( 191 ) ( 0.2 ) ( 55 ) ( 0.1 ) ( 966 ) ( 1.2 ) Effective income tax rate $ 31,535 24.7 % $ 25,755 25.9 % $ 18,810 23.1 % * State taxes in Illinois for 2025, 2024, and 2023 made up the majority (greater than 50 percent) of the tax effect within this category. Cash income taxes paid for continuing operations, disaggregated by federal and state jurisdictions, are summarized as follows: For the Years Ended December 31, (Amounts in Thousands) 2025 2024 2023 Federal income tax paid $ 8,600 68.1 % $ 18,911 72.0 % $ 9,483 63.3 % State income tax paid Illinois 2,060 16.3 4,391 16.7 3,262 21.8 New York — — — — 836 5.6 Tennessee 713 5.6 — — — — Other states 1,247 10.0 2,949 11.3 1,404 9.3 Total income tax paid (net of refund) $ 12,620 100.0 % $ 26,251 100.0 % $ 14,985 100.0 % The effective income tax rate was 24.7 %, 25.9 % and 23.1 % for the years ended December 31, 2025, 2024 and 2023 , respectively. 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. The Company is subject to taxation in the jurisdictions in which it operates. The Company continues to remain subject to examination by U.S. federal authorities for the years 2022 through 2024 and for various state authorities for the years 2020 through 2024. 11. Stock Options and Restricted Stock Awards The Board approved the A&R 2017 Plan as of April 13, 2023, and our shareholders approved it as of June 14, 2023. The A&R 2017 Plan amended and restated our 2017 Omnibus Incentive Plan (the “2017 Plan”), which in turn was intended to replace our 2009 Stock Incentive Plan (the “2009 Plan”). All awards are now granted from the A&R 2017 Plan. Outstanding awards under the 2009 Plan will continue to be governed by the 2009 Plan and the agreements under which they were granted. F- 27 Table of Contents The A&R 2017 Plan allows us to grant performance-based incentive awards and equity-based awards (each, an “Award”) to eligible employees, directors and consultants in the form of Stock Options, Stock Appreciation Rights (“SARs”), Restricted Stock Restricted Stock Units, Performance Awards and Other Stock Unit Awards. The Board believes that the A&R 2017 Plan is necessary to continue the Company’s effectiveness in attracting, motivating and retaining employees, directors and consultants with appropriate experience and to increase the grantees’ alignment of interest with the Company’s shareholders. Under the A&R 2017 Plan, Awards may be made in shares of our common stock. Subject to adjustment as provided by the terms of the A&R 2017 Plan, the maximum aggregate number of shares of common stock with respect to which awards may be granted under the A&R 2017 Plan is 864,215 , comprised of 274,215 shares (the number of shares that were available for issuance under the 2017 Plan as of April 13, 2023) and 590,000 shares (the number of shares newly authorized by the Company’s shareholders upon their approval of the A&R 2017 Plan).. The aggregate awards granted during any calendar year to any single Participant cannot exceed 500,000 shares subject to stock options or SARs. These individual annual limitations are cumulative in that any shares of common stock or cash for which Awards are permitted to be granted to a Participant during a fiscal year are not covered by an Award in that fiscal year (such shortfall, the “Shortfall Amount”), the number of shares of common stock (or amount of cash, as the case may be) will automatically increase in the subsequent fiscal years during the term of the A&R 2017 Plan until the earlier of the time when the Shortfall Amount has been granted to the Participant, or the end of the third fiscal year following the year to which such Shortfall Amount relates. At December 31, 2025 , there were 447,366 shares of common stock available for future grant under the A&R 2017 Plan. Awards made under the 2017 Plan (and the 2009 Plan) that are forfeited, canceled, settled in cash or otherwise terminated without a distribution of shares to a Participant will be deemed available for Awards under the A&R 2017 Plan; provided, that the A&R 2017 Plan explicitly prohibits shares withheld for payment of taxes for awards, the exercise price for appreciation awards, shares acquired with the proceeds of appreciation awards, and shares from stock settled SARs from being added back to the share reserve. Stock options are awarded with an exercise price equal to the fair market value based on the closing price of our common stock on the date of grant. Options granted typically vest over a service period ranging from three to four years and expire ten years from the date of grant. Restricted shares typically vest over a service period ranging from one to four years and expire ten years from date of grant. Stock options are awarded with an exercise price equal to the fair market value based on the closing price of our common stock on the date of grant. Options granted typically vest over a service period ranging from three to four years and expire ten years from the date of grant. Restricted shares typically vest over a service period ranging from one to four years and expire ten years from date of grant. The exercise prices of stock options outstanding on December 31, 2025 , range from $ 34.05 to $ 92.00 . Restricted stock awards are full-value awards. Stock Options A summary of stock option activity for the year ended December 31, 2025 follows: Options (Amounts in Thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Terms (Years) Outstanding, beginning of period 406 $ 43.51 3.2 Granted — — Exercised ( 110 ) 22.52 Forfeited/Cancelled — — Outstanding, end of period 296 $ 51.31 2.9 Exercisable, end of period 286 $ 50.08 2.8 The Company did not grant any stock options during 2025, 2024, or 2023. Stock option compensation expense totaled $ 0.4 million, $ 0.5 million and $ 0.9 million for the years ended December 31, 2025, 2024 and 2023 , respectively. As of December 31, 2025 , there was $ 0.1 million of total unrecognized compensation cost that is expected to be recognized over a weighted average period of 0.2 years. F- 28 Table of Contents The intrinsic value of exercisable and outstanding stock options was $ 16.4 million and $ 16.6 million, respectively, as of December 31, 2025 . As of December 31, 2025 , there were 286,195 and 9,500 shares of stoc k options vested and unvested, respectively. The intrinsic value of stock options exercised during the years ended December 31, 2025, 2024 and 2023 was $ 10.3 million, $ 3.0 million and $ 0.8 million, respectively. Restricted Stock Awards A summary of unvested restricted stock awards activity and weighted average grant date fair value for the year ended December 31, 2025 follows: Restricted Stock Awards (Amounts in Thousands) Weighted Average Grant Date Fair Value Unvested restricted stock awards, beginning of period 244 $ 91.33 Awarded 265 104.25 Vested ( 123 ) 90.47 Forfeited ( 5 ) 98.33 Unvested restricted stock awards, end of period 381 $ 100.52 The fair value of restricted stock awards that vested during the year ended December 31, 2025 , was $ 13.5 million. Restricted stock award compensation expense totaled $ 16.0 million, $ 10.7 million and $ 9.4 million for the years ended December 31, 2025, 2024 and 2023 , respectively. As of December 31, 2025 , there w as $ 24.0 million of total unrecognized compensation cost that is expected to be recognized over a weighted average period of 1.7 years. 12. Employee Benefit Plans The 401 (k) retirement plan is a defined contribution plan that provides for matching contributions by the Company to all non-union employees. Matching contributions are discretionary and subject to change by management. Under the provisions of the 401 (k) plan, employees can contribute up to the maximum percentage and limits allowable under the U.S. Revenue Code. The Company provided contributions totaling $ 0.7 million, $ 0.8 million and $ 0.6 million for the years ended December 31, 2025, 2024 and 2023 , respectively. 13. Commitments and Contingencies Legal Proceedings From time to time, the Company is subject to legal and/or administrative proceedings incidental to its business. It is the opinion of management that the outcome of pending legal and/or administrative proceedings will not have a material effect on the Company’s Consolidated Balance Sheets and Consolidated Statements of Income. Concentration of Cash The Company owns financial instruments that potentially subject the Company to significant concentrations of credit risk, including cash. The Company maintains cash with financial institutions which, at times, may exceed federally insured limits. The Company believes it is not exposed to any significant credit risk on cash. F- 29 Table of Contents 14. Segment Information Operating segments are defined as components of a company that engage in business activities from which it may earn revenues and incur expenses, and for which separate financial information is available and is regularly reviewed by the Company’s chief operating decision makers (“CODM”). The Company identifies its Chief Executive Officer and Chief Operating Officer together as CODM to assess the performance of the individual segments and make decisions about resources to be allocated to the segments. The Company operates as a multi-state provider of three business segments providing in-home services. In its personal care segment, the Company provides non-medical assistance with activities of daily living, primarily to persons who are at increased risk of hospitalization or institutionalization, such as the elderly, chronically ill or disabled. In its hospice segment, the Company provides physical, emotional and spiritual care for people who are terminally ill as well as related services for their families. In its home health segment, the Company provides services that are primarily medical in nature to individuals who may require assistance during an illness or after hospitalization and include skilled nursing and physical, occupational and speech therapy. The Company’s method for measuring profitability on each reportable segment basis is the same as those described in the summary of significant accounting policies and its CODM frequently reviews the actual result to budget variance to allocate resources to the segment and assess its performance. Segment operating income consists of revenue generated by a segment, less the direct costs of service revenues and general and administrative expenses that are incurred directly by the segment. Unallocated general and administrative costs are those costs for functions performed in a centralized manner and therefore not attributable to a particular segment. These costs include accounting, finance, human resources, legal, information technology, corporate office support and facility costs and overall corporate management. The CODM does not review disaggregated assets by segment. The measure of segment assets is reported on the balance sheet as total consolidated assets. The tables below set forth information about the Company’s reportable segments, including significant expenses, for the years ended December 31, 2025, 2024 and 2023 along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements. For the Year Ended December 31, 2025 (Amounts in Thousands) Personal Care Hospice Home Health Total Net service revenues $ 1,089,215 $ 262,542 $ 70,773 $ 1,422,530 Direct service personnel 783,101 109,389 39,708 932,198 General and administrative salaries, wages and benefits 74,161 45,998 13,480 133,639 Other segment items (1) 24,752 39,741 5,134 69,627 Segment operating income 207,201 67,414 12,451 287,066 Segment reconciliation: Items not allocated at segment level: Other general and administrative expenses 132,039 Depreciation and amortization 16,412 Interest income ( 2,442 ) Interest expense 13,612 Income before income taxes $ 127,445 ( 1 ) Other segment items include other costs for direct service personnel, office expense, licenses & taxes, communication, medical director fees, travel and bad debt expense. F- 30 Table of Contents For the Year Ended December 31, 2024 (Amounts in Thousands) Personal Care Hospice Home Health Total Net service revenues $ 856,581 $ 228,191 $ 69,827 $ 1,154,599 Direct service personnel 613,160 97,128 42,631 752,919 General and administrative salaries, wages and benefits 48,485 41,370 14,349 104,204 Other segment items (1) 20,719 37,762 4,913 63,394 Segment operating income 174,217 51,931 7,934 234,082 Segment reconciliation: Items not allocated at segment level: Other general and administrative expenses 117,861 Depreciation and amortization 13,530 Interest income ( 4,394 ) Interest expense 7,732 Income before income taxes $ 99,353 ( 1 ) Other segment items include other costs for direct service personnel, office expense, licenses & taxes, communication, medical director fees, travel and bad debt expense. For the Year Ended December 31, 2023 (Amounts in Thousands) Personal Care Hospice Home Health Total Net service revenues $ 794,718 $ 207,155 $ 56,778 $ 1,058,651 Direct service personnel 571,445 87,851 34,244 693,540 General and administrative salaries, wages and benefits 47,302 38,843 11,501 97,646 Other segment items (1) 18,442 35,608 4,021 58,071 Segment operating income 157,529 44,853 7,012 209,394 Segment reconciliation: Items not allocated at segment level: Other general and administrative expenses 104,312 Depreciation and amortization 14,126 Interest income ( 1,476 ) Interest expense 11,106 Income before income taxes $ 81,326 ( 1 ) Other segment items include other costs for direct service personnel, office expense, licenses & taxes, communication, medical director fees, travel and bad debt expense. F- 31 Table of Contents 15. Significant Payors For 2025 , 2024 and 2023 , the Company’s revenue by payor type was as follows: Personal Care For the Years Ended December 31, 2025 2024 2023 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues State, local and other governmental programs $ 553,475 50.8 % $ 456,885 53.3 % $ 400,753 50.4 % Managed care organizations 501,528 46.0 376,604 44.0 367,557 46.2 Private pay 27,871 2.6 15,589 1.8 16,268 2.0 Commercial insurance 5,609 0.5 5,593 0.7 6,321 0.8 Other 732 0.1 1,910 0.2 3,819 0.6 Total personal care segment net service revenues $ 1,089,215 100.0 % $ 856,581 100.0 % $ 794,718 100.0 % Hospice For the Years Ended December 31, 2025 2024 2023 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Medicare $ 244,344 93.1 % $ 208,099 91.2 % $ 186,317 89.9 % Commercial insurance 8,558 3.3 11,744 5.2 12,385 6.0 Managed care organizations 8,155 3.1 7,603 3.3 7,037 3.4 Other 1,485 0.5 745 0.3 1,416 0.7 Total hospice segment net service revenues $ 262,542 100.0 % $ 228,191 100.0 % $ 207,155 100.0 % F- 32 Table of Contents Home Health For the Years Ended December 31, 2025 2024 2023 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Medicare $ 47,701 67.4 % $ 48,562 69.5 % $ 41,078 72.3 % Managed care organizations 17,010 24.0 17,603 25.2 12,613 22.2 State, local and other governmental programs (excluding Medicare) 4,001 5.7 639 1.0 440 0.8 Other 2,061 2.9 3,023 4.3 2,647 4.7 Total home health segment net service revenues $ 70,773 100.0 % $ 69,827 100.0 % $ 56,778 100.0 % 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 2025 , 2024 and 2023 were as follows: Personal Care For the Years Ended December 31, 2025 2024 2023 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Illinois $ 458,828 42.1 % $ 441,012 51.5 % $ 411,081 51.7 % Texas 216,712 19.9 17,936 2.0 — — New Mexico 118,588 10.9 115,381 13.5 115,986 14.6 New York (1) — — 71,763 8.4 92,469 11.6 All other states 295,087 27.1 210,489 24.6 175,182 22.1 Total personal care segment net service revenues $ 1,089,215 100.0 % $ 856,581 100.0 % $ 794,718 100.0 % ( 1 ) 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 divested these operations. See Note 5 to the Notes to Consolidated Financial Statements, Divestiture , for additional details regarding our divestiture. F- 33 Table of Contents With the Jacksonville Acquisition, the Great Lakes Acquisition, the Helping Hands Acquisition and the Gold Horses Acquisition in 2025, the Company expanded its personal care services to consumers in the state of Florida, Michigan, Pennsylvania and Texas. With the acquisition of Upstate and the Gentiva Acquisition in 2024, the Company expanded its personal care services to consumers in the state of Arizona, Arkansas, California, Missouri, North Carolina, South Carolina and Texas. Hospice For the Years Ended December 31, 2025 2024 2023 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Ohio $ 101,833 38.8 % $ 84,811 37.2 % $ 74,871 36.1 % New Mexico 32,865 12.5 28,532 12.5 30,782 14.9 Illinois 60,427 23.0 52,560 23.0 47,247 22.8 All other states 67,417 25.7 62,288 27.3 54,255 26.2 Total hospice segment net service revenues $ 262,542 100.0 % $ 228,191 100.0 % $ 207,155 100.0 % With the Helping Hands Acquisition in 2025, the Company entered the hospice market in Pennsylvania, and with the acquisition of Tennessee Quality Care in 2023, the Company expanded its hospice services to patients in the state of Tennessee. Home Health For the Years Ended December 31, 2025 2024 2023 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues New Mexico $ 34,724 49.1 % $ 32,766 46.9 % $ 32,949 58.0 % Tennessee 28,209 39.9 26,497 38.0 10,978 19.4 Illinois 7,171 10.1 10,564 15.1 12,851 22.6 All other states 669 0.9 — — — — Total home health segment net service revenues $ 70,773 100.0 % $ 69,827 100.0 % $ 56,778 100.0 % With the Gentiva Acquisition in 2024 and the acquisition of Tennessee Quality Care in 2023 expanded the Company ’ s home health operations in Tennessee. F- 34 Table of Contents A substantial portion of the Company’s revenue and accounts receivable is derived from services performed for state and local governmental agencies. We derive a significant amount of our net service revenues in Illinois, which represented 37.0 % , 43.7 % and 44.5 % of our net service revenues for the years ended December 31, 2025, 2024 and 2023 , respectively. The Illinois Department on Aging, the largest payor program for the Company’s Illinois personal care operations, accounted for 18.1 %, 2 1.0% and 20.9 % of the Company’s net service revenues for 2025 , 2024 and 2023 , respectively. The related receivables due from the Illinois Department on Aging represented 25.2 % and 21.7 % of the Company’s net accounts receivable at December 31, 2025 and 2024, respectively. 16. ARPA Spending Plans In recognition of the significant threat to the liquidity of financial markets and challenges to healthcare providers posed by the COVID- 19 pandemic, the Federal Reserve and Congress took dramatic actions to provide liquidity to businesses and the banking system in the United States and to assist healthcare providers, including through relief legislation such as the American Rescue Plan Act of 2021 (“ARPA”). The ARPA provides for $350 billion in relief funding for eligible state, local, territorial, and Tribal governments to mitigate the fiscal effects of the COVID- 19 public health emergency. Additionally, the law provides for a 10 -percentage point increase in federal matching funds for Medicaid home and community-based services (“HCBS”) from April 1, 2021, through March 31, 2022, provided the state satisfied certain conditions. States are permitted to use the state funds equivalent to the additional federal funds through March 31, 2025. States must use the monies attributable to this matching fund increase to supplement, not supplant, their level of state spending for the implementation of activities enhanced under the Medicaid HCBS in effect as of April 1, 2021. HCBS spending plans for the additional matching funds vary by state, but common initiatives in which the Company is participating include those aimed at strengthening the provider workforce (e.g., efforts to recruit, retain, and train direct service providers). The Company is required to properly and fully document the use of such funds in reports to the state in which the funds originated. Funds may be subject to recoupment if not expended or if they are expended on non-approved uses. The Company received state funding provided by the ARPA in an aggregate amount of $ 7.2 million and $ 15.7 million December 31, 2025 and 2024 , respectively. The Company utilized $ 6.8 million and $ 10.2 million of these funds during the years ended December 31, 2025 and 2024 , respectively, primarily for caregivers and adding support to recruiting and retention efforts. The deferred portion of ARPA funding was $ 11.7 million and $ 11.2 million as of December 31, 2025 and 2024 , respectively, which is included within Government stimulus advances on the Company’s Consolidated Balance Sheets. 17. Related Party Transactions In December 2024, the Company completed the Gentiva Acquisition, which included an agreement with Gentiva’s software provider, HHAeXchange. Darin Gordon, a member of the Company’s board of directors, serves on the board of directors of HHAeXchange. For the year ended December 31, 2025, the Company paid $ 2.0 million to HHAeXchange for related services provided in the ordinary course of business. In addition, the Company received services from MetaSource. Mark First, a member of the Company’s board of directors, serves on the board of directors of MetaSource. For the year ended December 31, 2025, the Company paid $ 0.4 million to MetaSource for related services provided in the ordinary course of business. F-35