What changed in this filing

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Item 1. Financial Statements

2026-05-05 compared with 2025-11-04 · 196 added, 436 removed, 788 unchanged (45% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

As of September 30, 2025 and December 31, 2024

As of March 31, 2026 and December 31, 2025

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

September 30, 2025

March 31, 2026

December 31, 2025

1 unchanged sentence

$ 103,065 $ 81,617

Accounts receivable, net of allowances

Accounts receivable, net of allowances for credit losses

144,823 151,695

24 unchanged sentences

Government stimulus advances

14,637 11,699

Accrued workers' compensation insurance

3 unchanged sentences

Long-term liabilities

Long-term debt, less current portion, net of debt issuance costs

Long-term debt, net of debt issuance costs

91,274 120,959

10 unchanged sentences

Common stock—$ .001 par value;

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

40,000 authorized and 18,665 and 18,518 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

Additional paid-in capital

10 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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

For the Three Months Ended March 31, 2026 and 2025

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

For the Three Months Ended

For the Nine Months Ended

September 30,

Net service revenues

6 unchanged sentences

Depreciation and amortization

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

Total operating expenses

5 unchanged sentences

Interest expense

3,343 573 10,886 5,445

Total interest expense, net

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

Income before income taxes

2 unchanged sentences

$ 25,069 $ 21,228

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

Net income per common share

10 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the Three and Nine Months Ended September 30, 2025

For the Three Months Ended March 31, 2026

(Amounts and Shares in Thousands)

For the Three Months Ended September 30, 2025

Stockholders'

Balance at July 1, 2025

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

Issuance of shares of common stock under restricted stock award agreements

Forfeiture of shares of common stock under restricted stock award agreements

( 2 ) — — — —

Stock-based compensation

— — 4,287 — 4,287

Shares issued for exercise of stock options

50 — 985 — 985

— — — 22,848 22,848

Balance at September 30, 2025

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

For the Nine Months Ended September 30, 2025

For the Three Months Ended March 31, 2026

Stockholders'

4 unchanged sentences

Shares issued for exercise of stock options

Balance at September 30, 2025

Balance at March 31, 2026

ADDUS HOMECARE CORPORATION

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the Three and Nine Months Ended September 30, 2024

For the Three Months Ended March 31, 2025

(Amounts and Shares in Thousands)

For the Three Months Ended September 30, 2024

Stockholders'

Balance at July 1, 2024

Issuance of shares of common stock under restricted stock award agreements

Forfeiture of shares of common stock under restricted stock award agreements

Stock-based compensation

Shares issued for exercise of stock options

Shares issued in Public offering, net of offering costs

Balance at September 30, 2024

For the Nine Months Ended September 30, 2024

For the Three Months Ended March 31, 2025

Stockholders'

4 unchanged sentences

Shares issued for exercise of stock options

Shares issued in Public offering, net of offering costs

Balance at September 30, 2024

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

Balance at March 31, 2025

ADDUS HOMECARE CORPORATION

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Nine Months Ended September 30, 2025 and 2024

For the Three Months Ended March 31, 2026 and 2025

(Amounts in Thousands)

For the Nine Months Ended

September 30,

For the Three Months Ended

Cash flows from operating activities:

2 unchanged sentences

Depreciation and amortization

12,264 10,316

Deferred income taxes

3 unchanged sentences

Gain on disposal of assets

Loss on termination of operating leases

(Gain) loss on termination of operating leases

Changes in operating assets and liabilities, net of acquisitions:

7 unchanged sentences

Accrued payroll

Accrued expenses and other long-term liabilities

( 2,015 ) ( 7,124 )

Accrued expenses and other long-term liabilities

Net cash provided by operating activities

2 unchanged sentences

Acquisitions of businesses, net of cash acquired

( 24,181 ) ( 400 )

Purchases of property and equipment

1 unchanged sentence

Proceeds received from disposal of assets

Proceeds received from previous acquisition

Proceeds received from divestiture of business

4 unchanged sentences

( 30,000 ) ( 20,000 )

Proceeds from borrowings on revolver — credit facility

Payments for debt issuance costs under the credit facility

( 13 ) ( 21 )

Proceeds from Public offering

Cash received from exercise of stock options

Net cash (used in) provided by financing activities

Net cash used in financing activities

( 29,225 ) ( 19,528 )

8 unchanged sentences

$ 1,802 $ 3,743

Cash paid for income taxes

Cash paid (refunded) for income taxes

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

12 unchanged sentences

The accompanying balance sheet as of December 31, 2025 has been derived from the Company’s audited financial statements for the year ended December 31, 2025 previously filed with the SEC.

Accordingly, these financial statements do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements and should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2024 included in our Annual Report on Form 10 -K, which includes information and disclosures not included herein.

Accordingly, these financial statements do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements and should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2025 included in our Annual Report on Form 10 -K, as amended (“Annual Report on Form 10 -K”), which includes information and disclosures not included herein.

In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair statement of our financial position, results of operations, and cash flows for the interim periods presented in conformity with GAAP.

10 unchanged sentences

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

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(Amounts in thousands)

For the Three Months Ended March 31,

(Amounts in thousands)

3 unchanged sentences

Stock options

210 278 217 254

Restricted stock awards

108 109 117 104

Adjusted weighted average shares for diluted per share calculation

4 unchanged sentences

Recently Adopted Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023 - 07, Improvements to Reportable Segment Disclosures , which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

The amendments in the ASU require, among other things, disclosure of significant segment expenses that are regularly provided to an entity’s chief operating decision maker (“CODM”) and a description of other segment items (the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss) by reportable segment, as well as disclosure of the title and position of the CODM, and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources.

The ASU was adopted in connection with the Company's most recent Annual Report on Form 10 -K, which included significant segment expenses reviewed by the Company’s CODM, but did not have a material impact on the Company’s results of operations, financial position, or cash flows.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued ASU 2023 - 09, Improvement 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, may be applied on a prospective basis with the option to apply the standard retrospectively, and allows for early adoption.

These requirements are not expected to have a material impact on the Company’s financial statements and will expand income tax 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.

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 adopted ASU 2025 - 05 during the three months ended March 31, 2026.

Adoption did not have a material impact on the Company’s consolidated financial statements.

Recently Issued Accounting Pronouncements

In November 2024, the FASB issued ASU 2024 - 03, Disaggregation of Income Statement Expenses, which intends to provide investors more detailed disclosures around specific types of expenses.

3 unchanged sentences

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

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

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

The disclosure updates should be applied prospectively.

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

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.

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 price included 50 % cash consideration, paid out as an initial payment of $ 4.6 million and $ 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.

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

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.

2 unchanged sentences

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

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

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.

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 September 30, 2025 were as follows (amounts in thousands):

September 30, 2025

Current assets

Accounts receivable, net of allowances

Prepaid expenses and other current assets

Total current assets

Property and equipment, net of accumulated depreciation and amortization

Intangibles, net of accumulated amortization

Operating lease assets, net

Total other assets

Current liabilities

Accounts payable

Accrued payroll

Accrued expenses

Operating lease liabilities, current portion

Total current liabilities

Long-term liabilities

Operating lease liabilities, long-term portion

Total liabilities

During the three months ended March 31, 2026 , the Company recorded a lease modification reducing operating lease assets and liabilities by $ 1.6 million.

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

September 30, 2025

March 31, 2026

December 31, 2025

9 unchanged sentences

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

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(Amounts in Thousands)

For the Three Months Ended March 31,

(Amounts in Thousands)

2 unchanged sentences

Short-term lease costs

292 167 847 547

Total lease costs

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

sublease income

— ( 596 ) ( 226 ) ( 1,685 )

Total lease costs, net

2 unchanged sentences

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

September 30, 2025

March 31, 2026

December 31, 2025

4 unchanged sentences

Maturity of Lease Liabilities

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

Remaining operating lease payments as of March 31, 2026 were as follows:

Operating Leases

(Amounts in Thousands)

Due in the 12-month period ended September 30,

Due in the 12-month period ended March 31,

Total future minimum rental commitments

2 unchanged sentences

Supplemental Cash Flows Information

For the Nine Months Ended September 30,

For the Three Months Ended March 31,

(Amounts in Thousands)

5 unchanged sentences

$ 2,295 $ 979

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

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

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

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

Helping Hands

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

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

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

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

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

Total (Amounts in Thousands)

Identifiable intangible assets

Accounts receivable

Property and equipment

Operating lease assets, net

Other current assets

Accounts payable

Accrued payroll

Operating lease liabilities, total

Total purchase price

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

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

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

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

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

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

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

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(Amounts in Thousands)

(Amounts in thousands)

Net service revenues

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

Operating income

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

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

Net income per common share

Basic income per share

$ 1.24 $ 1.15 $ 3.72 $ 3.29

Diluted income per share

$ 1.21 $ 1.13 $ 3.65 $ 3.22

Goodwill and Intangible Assets

5 unchanged sentences

Additions for acquisitions

— 22,407 — 22,407

Adjustments to previously recorded goodwill

( 14 ) 47 ( 49 ) ( 16 )

Goodwill as of September 30, 2025

Goodwill as of March 31, 2026

$ 432,852 $ 469,028 $ 94,800 $ 996,680

On January 1, 2025, the Company completed its acquisition of its 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 1, 2025, the Company completed its 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.

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

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

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

2 unchanged sentences

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

September 30, 2025

March 31, 2026

December 31, 2025

18 unchanged sentences

$ 172,772 $ ( 72,284 ) $ 100,488 $ 173,454 $ ( 71,044 ) $ 102,410

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

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

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

Amortization expense related to the intangible assets was $ 1.9 million and $ 2.0 million for the three months ended March 31, 2026 and 2025, respectively.

The weighted average remaining useful lives of identifiable intangible assets as of March 31, 2026 was 8.92 years.

Details of Certain Balance Sheet Accounts

Prepaid expenses and other current assets consisted of the following:

September 30, 2025

March 31, 2026

December 31, 2025

8 unchanged sentences

$ 24,988 $ 36,179

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

Included $ 2.3 million related to the New York Asset Sale deferred payments as of March 31, 2026 and December 31, 2025 .

Accrued expenses consisted of the following:

September 30, 2025

March 31, 2026

December 31, 2025

9 unchanged sentences

To mitigate the fiscal effects of the COVID- 19 public health emergency, the American Rescue Plan Act of 2021 (“ARPA”) provided 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 states satisfied certain conditions.

States were generally permitted to use the state funds equivalent to the additional federal funds through March 31, 2025, but CMS granted extensions to several states, permitting some state spending plans to continue until as late as mid- 2026.

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).

States must submit periodic HCBS spending plans to CMS regarding the federal and state funds tied to the increase in federal matching funds.

Although states were generally permitted to use the associated state funds by March 31, 2025, CMS granted extensions to several states and some state spending plans continue through September 30, 2026.

HCBS spending plans for the additional matching funds vary by state, but common initiatives in which the Company participates 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.

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

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

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

During the three months ended March 31, 2026 , the Company received additional state funding provided by the ARPA of $ 6.2 million.

Of the total state funding received by the Company pursuant to the ARPA through March 31, 2026 , the Company utilized $ 3.2 million during the three months ended March 31, 2026 , primarily for caregivers and adding support to recruiting and retention efforts, included as a reduction of cost of service revenues in the Company’s Unaudited Condensed Consolidated Statements of Income.

As of March 31, 2026 , the deferred portion of ARPA funding of $ 14.6 million is included within Government stimulus advances on the Company’s Unaudited Condensed Consolidated Balance Sheets.

Long-Term Debt

Long-term debt consisted of the following:

September 30, 2025

March 31, 2026

December 31, 2025

22 unchanged sentences

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

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

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

During the three months ended March 31, 2026 , the Company did not draw on its credit facility and repaid $ 30.0 million under the revolving credit facility.

As of March 31, 2026 , the Company had a total of $ 94.3 million of revolving loans, with an interest rate of 5.43 %, 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 $ 547.8 million available for borrowing under its credit facility.

As of 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.

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

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

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

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

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

As of March 31, 2026 , the Company was in compliance with all financial covenants under the Credit Agreement.

The effective income tax rates were 22.7 % and 21.4 % for the three months ended March 31, 2026 and 2025 , respectively.

For the three months ended March 31, 2026 , the difference between our federal statutory and effective income tax rates was principally due to the inclusion of state taxes, non-deductible compensation, partially offset by the use of federal employment tax credits and an excess tax benefit.

For both the three months ended March 31, 2026 and 2025 , the effective tax rates were inclusive of an excess tax benefit of 3.1 % and 4.7 % , respectively.

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

18 unchanged sentences

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

For the Three Months Ended September 30, 2025

(Amounts in Thousands)

Personal Care

Net service revenues

$ 275,770 $ 68,891 $ 17,640 $ 362,301

Direct service personnel

199,656 28,287 10,155 238,098

General and administrative salaries, wages and benefits

18,629 11,658 3,538 33,825

Other segment items 1

6,395 10,131 1,400 17,926

Segment operating income

51,090 18,815 2,547 72,452

Segment reconciliation:

Items not allocated at segment level:

Other general and administrative expenses

Depreciation and amortization

Interest income

Interest expense

Income before income taxes

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

For the Three Months Ended September 30, 2024

(Amounts in Thousands)

Personal Care

Net service revenues

$ 215,433 $ 57,309 $ 17,045 $ 289,787

Direct service personnel

156,072 24,791 10,513 191,376

General and administrative salaries, wages and benefits

11,949 10,556 3,553 26,058

Other segment items 1

5,741 9,192 1,113 16,046

Segment operating income

41,671 12,770 1,866 56,307

Segment reconciliation:

Items not allocated at segment level:

Other general and administrative expenses

Depreciation and amortization

Interest income

Interest expense

Income before income taxes

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

For the Nine Months Ended September 30, 2025

For the Three Months Ended March 31, 2026

(Amounts in Thousands)

18 unchanged sentences

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

For the Nine Months Ended September 30, 2024

For the Three Months Ended March 31, 2025

(Amounts in Thousands)

21 unchanged sentences

Personal Care Segment

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

For the Three Months Ended March 31,

(in Thousands)

11 unchanged sentences

Hospice Segment

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

For the Three Months Ended March 31,

(in Thousands)

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Home Health Segment

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

For the Three Months Ended March 31,

(in Thousands)

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

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

The percentages of segment revenue for each of these significant states and New York for the three months ended March 31, 2026 and 2025 , respectively, were as follows:

Personal Care Segment

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

For the Three Months Ended March 31,

(in Thousands)

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30,490 10.8 28,305 11.0

53,449 19.4 — — 155,773 19.4 — —

All other states

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Hospice Segment

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

For the Three Months Ended March 31,

(in Thousands)

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Home Health Segment

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

For the Three Months Ended March 31,

(in Thousands)

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1,309 7.9 1,932 10.7

All other states

385 2.2 — — 385 0.7 — —

Total home health segment net service revenues

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

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

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

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

The personal care segment derives a significant amount of its net service revenues in Illinois, which represented 32.1 % and 33.0 % of our net service revenues for the three months ended March 31, 2026 and 2025 , respectively.

The Illinois Department on Aging, the largest payor program for the Company’s Illinois personal care operations, accounted for 17.8 % and 18.5 % of the Company’s net service revenues for the three months ended March 31, 2026 and 2025 , respectively.

The related receivables due from the Illinois Department on Aging represented 23.1 % and 25.2 % of the Company’s net accounts receivable at March 31, 2026 and December 31, 2025 , respectively.

Subsequent Events

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

On May 1, 2026 , the Company completed the acquisition of substantially all of the assets of an Indiana limited liability company doing business as HomeCourt Home Care for approximately $ 12.5 million (the “HomeCourt Acquisition”).

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

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

The HomeCourt Acquisition expanded the Company’s services within its personal care segment in Indiana.

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

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

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

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

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

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Supreme Court regarding the actions of federal agencies;

changes in presidential administrations;

changes in the executive branch of the federal government;

changes in the structure and administration of, and funding for, federal and state agencies and programs;

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federal, state and city minimum wage pressure, including any failure of any governmental entity to enact a minimum wage offset and/or the timing of any such enactment;

changes in payments and covered services due to overall economic conditions and deficit reduction measures by federal and state governments, and our expectations regarding these changes;

changes in payments and covered services due to overall economic conditions and deficit or spending reduction measures by federal and state governments, and our expectations regarding these changes;

cost containment initiatives undertaken by federal and state governmental and other third-party payors;

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the size and growth of the markets for our services, including our expectations regarding the markets for our services;

eligibility standards and coverage limits imposed through legislation or by governmental agencies or other third-party payors;

eligibility standards and limits on services imposed through legislation or by governmental agencies or other third-party payors;

the potential for litigation, audits, and investigations;

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and various other matters, many of which are beyond our control.

In addition, these forward-looking statements are subject to the risk factors set forth in Part I, Item 1A of our Annual Report on Form 10-K for the period ended December 31, 2024, filed with the SEC on February 25, 2025.

In addition, these forward-looking statements are subject to the risk factors set forth in Part I, Item 1A of our Annual Report on Form 10-K for the period ended December 31, 2025, filed with the SEC.

You should carefully review all of these factors.

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

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

Managed care organizations accounted for 38.3% and 36.4% of our net service revenues during the three months ended March 31, 2026 and 2025, respectively.

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

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

For the Three Months Ended March 31,

Net service revenues by segment:

(Amounts in Thousands)

Personal care

Total net service revenue

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

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

As of March 31, 2026, we provided our services in 23 states through 263 offices.

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

In addition to our organic growth, we have grown through acquisitions that have expanded our presence in current markets, with the goal of having all three levels of in-home care in our markets or facilitating our entry into new markets where in-home care has been moving to managed care organizations or that present other strategic opportunities.

On March 9, 2024, we completed our acquisition of the operations of Upstate Home Care Solutions (“Upstate”) for $0.4 million, with funding provided by available cash.

With the purchase of Upstate, the Company expanded its personal care segment in South Carolina.

On December 2, 2024, we completed the acquisition of the personal care business of Curo Health Services, LLC, a Delaware limited liability company that does business as Gentiva, consisting of certain equity interests and assets and liabilities (collectively, the “Gentiva Acquisition”) for approximatel y $350.6 milli on, with funding primarily provided by drawing on the Company’s revolving credit facility and a portion of the net proceeds of the Company’s public offering of common stock (the “Public Offering”).

With the Gentiva Acquisition, the Company expanded its services within its personal care 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.

On January 1, 2025, the Company completed the Jacksonville Acquisition for approximately $0.8 million, with funding provided by available cash.

On January 1, 2025, the Company completed its acquisition of its Jacksonville affiliate (the “Jacksonville Acquisition”) for approximately $0.8 million, 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 1, 2025, the Company completed the Great Lakes Acquisition for $2.6 million, with funding provided by available cash.

On March 1, 2025, the Company completed its acquisition of the assets of Great Lakes Home Care Unlimited, LLC (the “Great Lakes Acquisition”) for $2.6 million, 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 August 1, 2025, the Company completed the Helping Hands Acquisition, for approximately $21.4 million, with funding through the Company’s revolving credit facility and available cash.

On August 1, 2025, the Company completed its acquisition of Helping Hands Home Care Service, Inc.

(the “Helping Hands Acquisition”), for approximately $21.4 million, with funding through the Company’s revolving credit facility and available cash.

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

On October 1, 2025, the Company completed its acquisition of Gold Horses, LLC (the “Gold Horses Acquisition”), for approximately $7.4 million, with funding provided by available cash.

With the Gold Horses Acquisition, the Company expanded its services within its personal care segment in Texas and recognized goodwill in its personal care segment of $7.4 million.

New York Asset Sale

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

See Note 3 to the Notes to Unaudited Condensed Consolidated Financial Statements, Divesture , for additional details regarding our divestiture.

See Note 3 to the Notes to Unaudited Condensed Consolidated Financial Statements, Divestiture , for additional details regarding our divestiture.

As the labor market continues to be tight and unemployment remains at low levels, the competition for new caregivers, including skilled healthcare staff, and support staff continues to be significant .

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The federal, state, and local programs under which the agencies operate are subject to legislative and budgetary changes and other risks that can influence reimbursement rates.

We are experiencing a transition of business from government payors to managed care organizations, which we believe aligns with our emphasis on coordinated care and the reduction of the need for acute care.

We have experienced a transition of business from government payors to managed care organizations, which we believe aligns with our emphasis on coordinated care and the reduction of the need for acute care.

Our revenue by payor and significant states by segment were as follows:

Personal Care Segment

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

For the Three Months Ended March 31,

(in Thousands)

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Hospice Segment

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

For the Three Months Ended March 31,

(in Thousands)

6 unchanged sentences

Home Health Segment

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in Thousands)

For the Three Months Ended March 31,

(in Thousands)

3 unchanged sentences

Total home health segment net service revenues

All other states

Total home health segment net service revenues

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

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

The personal care segment derives a significant amount of its net service revenues in Illinois, which represented 32.1% and 33.0% of our net service revenues for the three months ended March 31, 2026 and 2025, respectively.

Changes in Illinois Reimbursement

The Illinois Medicaid omnibus legislation passed in June 2023 included an increase in hourly rates for in-home care services to $28.07, which took effect on January 1, 2024 and required a minimum wage rate of $17.00 per hour.

CMS approved an amendment to the Illinois HCBS Waiver for Persons Who are Elderly, which included the rate increase for in-home care services to $28.07, effective January 1, 2024.

The Illinois fiscal year 2025 budget included an increase in hourly rates for in-home care services to $29.63, effective January 1, 2025, and required a minimum wage of $18.00 per hour for direct service workers.

As noted above, we derive a significant amount of our net service revenues in Illinois.

Changes to reimbursement rates and minimum wage requirements may materially impact our revenues.

For example, the Illinois fiscal year 2026 budget included an increase in hourly rates for in-home care services to $30.80, effective January 1, 2026, and required a minimum wage of $18.75 per hour for direct service workers.

CMS approved an amendment to Illinois’ Persons Who are Elderly waiver program that included this rate increase, effective January 1, 2026.

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

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

The City of Chicago requires the Chicago minimum wage to be adjusted annually based on increases in the Consumer Price Index (“CPI”), subject to a cap and other requirements.

Effective July 1, 2025, the rate was adjusted to $16.60 based on the increase in the CPI.

Our business will benefit from the rate increases noted above as planned for 2025, but there is no assurance that there will be additional rate increases in Illinois for fiscal years beyond fiscal year 2025 to offset increases to minimum wage, and our financial performance will be adversely impacted for any periods in which an additional offsetting reimbursement rate increase is not in effect.

Our business will benefit from the rate increases noted above for 2026, but there is no assurance that there will be additional rate increases in Illinois for fiscal years beyond fiscal year 2026 to offset increases to minimum wage, and our financial performance will be adversely impacted for any periods in which an additional offsetting reimbursement rate increase is not in effect.

Changes in Texas Reimbursement

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

Impact of Changes in Medicare and Medicaid Reimbursement

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

Changes in Medicare Reimbursement

Hospice services provided to Medicare beneficiaries are paid under the Medicare Hospice Prospective Payment System, under which CMS sets a daily rate for each day a patient is enrolled in the hospice benefit.

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CMS updates the HHPPS payment rates each calendar year.

For calendar year 2025, CMS estimates that Medicare payments to home health agencies will increase by 0.5%.

This is based on a home health payment update percentage of 2.7%, which reflects a 3.2% market basket update, reduced by a productivity adjustment of 0.5 percentage points, and an estimated 1.8% decrease associated with the transition to the PDGM, among other changes.

For calendar year 2026, CMS estimates that Medicare payments to home health agencies will decrease by 1.3%.

This is based on a home health payment update percentage of 2.4%, which reflects a 3.2% market basket update, reduced by a productivity adjustment of 0.8 percentage points, among other changes.

Home health providers that do not comply with quality data reporting requirements are subject to a 2-percentage point reduction to their market basket update.

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Data collected in each performance year will impact Medicare payments two years later.

In certain states, payment of claims may be impacted by the Review Choice Demonstration for Home Health Services, a program intended to identify and prevent fraud, reduce the number of Medicare appeals and improve provider compliance with Medicare program requirements.

Payment of claims may be impacted by the Review Choice Demonstration for Home Health Services, a program intended to identify and prevent fraud, reduce the number of Medicare appeals and improve provider compliance with Medicare program requirements.

The program is currently limited to home health agencies in Illinois, Ohio, Oklahoma, North Carolina, Florida, and Texas.

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Given the long implementation period and the likelihood of further changes as a result of litigation, administration and congressional changes, further rule-making and state changes in response to the final rule, it is premature to predict the ultimate impact of the final rule on our business.

Developments in Public Policy

The outcome of the 2024 federal election increased regulatory uncertainty and the potential for significant policy changes.

President Trump has issued executive orders that impact or may impact the healthcare industry, including an order establishing a presidential advisory commission, the Department of Government Efficiency (“DOGE”), focused on restructuring and streamlining government agencies and reducing or eliminating regulations and federal government programs and other expenditures.

In March 2025, the Department of Health and Human Services (“HHS”) announced a significant restructuring in accordance with the President’s DOGE Workforce Optimization Initiative.

The restructuring will reduce the HHS workforce and consolidate divisions of HHS, including integrating some functions of the Administration for Community Living, which administers programs that support older adults, into other HHS agencies.

HHS also announced a change in its policy on public participation in rulemaking that may negatively affect the ability of industry participants to receive advance notice of and offer feedback on some policy changes.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

As a result, a Medicare spending reduction of up to 4% is required to take effect in early 2026, absent congressional action.

These reductions would be in addition to the payment reductions required by the Budget Control Act of 2011 and subsequent legislation, which are currently set to continue through the first ten months of federal fiscal year 2032.

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

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

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

Some states have adopted or may consider adopting similar caregiver compensation requirements.

Potential Developments

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

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

For example, the budget reconciliation legislation enacted on July 4, 2025, commonly known as the “One Big Beautiful Bill Act” (“OBBBA”), includes provisions that are expected to result in Medicaid spending reductions and changes in administration of state Medicaid programs.

Among other changes, the law requires changes to Medicaid financing mechanisms, including restrictions intended to reduce the federal matching funds received by state Medicaid programs, with greater restrictions in states that have expanded Medicaid.

In addition, some members of Congress and the executive branch have raised, and Congress in the future may adopt, other proposals intended to reduce Medicaid expenditures such as restructuring the Medicaid program to give states a “block grant” or fixed amount of overall funding for their respective Medicaid programs or to impose spending caps such as per Medicaid beneficiary limits on federal contributions.

Reductions in federal funding or changes to the federal funding formula for Medicaid under the OBBBA or future initiatives could have a significant impact, particularly in states that expanded Medicaid under the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (collectively, the “ACA”), and especially if federal contributions for Medicaid expansion populations decrease and states are unable to offset the reductions.

Decreased federal funding and increased state obligations and administrative burden could strain state budgets, which could result in state limitations on Medicaid eligibility or coverage, payment rate reductions, and changes to Medicaid waiver programs, among other effects.

The outcome of the 2024 federal elections, affecting both the executive and legislative branches, has increased regulatory uncertainty and the potential for significant policy changes.

The President has issued executive orders that impact or may impact the healthcare industry.

Further, some members of Congress and the presidential administration have raised potential measures intended to accelerate the shift from traditional Medicare to Medicare Advantage or eliminating some or all of the consumer protections established by the ACA.

Components of our Statements of Income

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

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

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

The effective income tax rates were 22.7% and 21.4% for the three months ended March 31, 2026 and 2025, respectively, compared to our federal statutory rate of 21%.

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

Results of Operations — Consolidated

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

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

For the Three Months Ended September 30,

(Amounts in Thousands, Except Percentages)

Net service revenues

Cost of service revenues

General and administrative expenses

Depreciation and amortization

Total operating expenses

Operating income

Interest income

Interest expense

Total interest expense, net

Income before income taxes

Income tax expense

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

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

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

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

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

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

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

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

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

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

All of our income is from domestic sources.

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

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

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

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

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

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

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

For the Nine Months Ended September 30,

For the Three Months Ended March 31,

(Amounts in Thousands, Except Percentages)

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Income tax expense

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

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

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

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

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

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

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

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

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

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

Net service revenues increased by 7.7% to $363.6 million for the three months ended March 31, 2026 compared to $337.7 million for the three months ended March 31, 2025 .

Revenue increased by $22.8 million in our personal care segment, by $4.3 million in our hospice segment and decreased by $1.3 million in our home health segment during the three months ended March 31, 2026 , compared to the same period in 2025 .

The increase in our personal care segment was primarily due to organic growth in billable hours combined with the Gold Horses Acquisition and the Helping Hands Acquisition.

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

The decrease in our home health segment was primarily attributed to lower volumes.

Gross profit, expressed as a percentage of net service revenues, was 31.9% for the three months ended March 31, 2026 , compared to 31.9% for the same period in 2025 .

General and administrative expenses increased to $77.8 million for the three months ended March 31, 2026 , compared to $73.2 million for the three months ended March 31, 2025 .

The increase in general and administrative expenses was primarily due to acquisition activity, including the Gold Horses Acquisition and Helping Hands Acquisition, which contributed to an increase in administrative employee wage, bonus, tax, and benefit costs of $3.3 million.

General and administrative expenses, expressed as a percentage of net service revenues, were 21.4% for the three months ended March 31, 2026 , compared to 21.7% for the three months ended March 31, 2025 .

Interest expense decreased to $2.2 million for the three months ended March 31, 2026 from $4.0 million for the three months ended March 31, 2025 .

The decrease in interest expense was primarily due to lower average outstanding borrowings and a lower weighted average interest rate under our credit facility for the three months ended March 31, 2026 ,compared to the three months ended March 31, 2025 .

All of our income is from domestic sources.

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

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

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

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

The effective income tax rate was 22.7% and 21.4% for the three months ended March 31, 2026 and 2025 , respectively.

Our higher effective income tax rate for the three months ended March 31, 2026 , was principally due to a lower excess tax benefit with a lower benefit from the use of federal employment tax credits.

For the three months ended March 31, 2026 and 2025 , the excess tax benefit and federal employment tax credits were 5.3% and 7.2%, respectively.

Results of Operations – Segments

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Personal Care Segment

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(Amounts in Thousands, Except Percentages)

For the Three Months Ended March 31,

(Amounts in Thousands, Except Percentages)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The personal care segment derives a significant amount of its net service revenues from operations in Illinois, which represented 32.1% and 33.0% of our net service revenues for the three months ended March 31, 2026 and 2025 , respectively .

One payor, the Illinois Department on Aging, accounted for 17.8% and 18.5% of net service revenues for the three months ended March 31, 2026 and 2025 , respectively.

Net service revenues from state, local, and other governmental programs accounted for 49.7% and 51.5% of net service revenues for the three months ended March 31, 2026 and 2025 , respectively.

Managed care organizations accounted for 47.6% and 45.3% of net service revenues for the three months ended March 31, 2026 and 2025 , respectively, with commercial insurance, private pay, and other payors accounting for the remainder of net service revenues.

Net service revenues increased by 8.8% for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

Net service revenues included a 5.2% increase in billable hours and a 3.3% increase in revenues per billable hour for the three months ended March 31, 2026 , compared to the three months ended March 31, 2025 .

Gross profit, expressed as a percentage of net service revenues, was 27.7% for the three months ended March 31, 2026 , compared to 27.6% for the three months ended March 31, 2025 .

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

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

General and administrative expenses, expressed as a percentage of net service revenues, was 8.9% and 9.2% for the three months ended March 31, 2026 and 2025 , respectively.

Hospice Segment

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(Amounts in Thousands, Except Percentages)

For the Three Months Ended March 31,

(Amounts in Thousands, Except Percentages)

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Our hospice segment principally provides routine home care.

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

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

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

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

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

Net service revenues from Medicare accounted for 94.4% and 92.4% for the three months ended March 31, 2026 and 2025 , respectively.

Net service revenues from managed care organizations accounted for 2.3% and 3.3% for the three months ended March 31, 2026 and 2025 respectively.

Net service revenues increased by $4.3 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 , primarily attributed to organic growth in average daily census, partially offset by a decrease in revenue per patient day.

Gross profit, expressed as a percentage of net service revenues, was 46.3% and 47.5% for the three months ended March 31, 2026 and 2025 , respectively.

For the three months ended March 31, 2026 , the decrease was mainly attributed to an increase in direct wages, taxes and benefit costs as a percentage of net service revenues.

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

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

General and administrative expenses, expressed as a percentage of net service revenues, was 24.1% and 23.7% for the three months ended March 31, 2026 and 2025 , respectively.

Home Health Segment

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(Amounts in Thousands, Except Percentages)

For the Three Months Ended March 31,

(Amounts in Thousands, Except Percentages)

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

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

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

Net service revenues from Medicare accounted for 61.1% and 69.9% , managed care organizations accounted for 23.7% and 21.2% , and state, local, and other governmental programs accounted for 12.2% and 6.0% for the three months ended March 31, 2026 and 2025 , respectively.

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

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

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

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

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

Net service revenues decreased by $1.3 million for the three months ended March 31, 2026 , compared to the three months ended March 31, 2025 , primarily due to lower volumes, including lower recertifications and visits, and the continued impact of efforts to manage payor mix within our home health operations and related incremental margin improvements .

Gross profit, expressed as a percentage of net service revenues, was 45.3% and 40.0% for the three months ended March 31, 2026 and 2025 , respectively.

For the three months ended March 31, 2026 , the increase was mainly attributed to a decrease in direct wages, taxes and benefit costs as a percentage of net service revenues, as cost of services revenues decreased at a greater rate than net service revenues , compared to the three months ended March 31, 2025 .

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

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

General and administrative expenses, expressed as a percentage of net service revenues, were 26.4% and 23.2% for the three months ended March 31, 2026 and 2025 .

Liquidity and Capital Resources

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

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

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

At March 31, 2026 and December 31, 2025, we had cash balances of $103.1 million and $81.6 million, respectively.

At March 31, 2026, we had a $650.0 million revolving credit facility and a $150.0 million incremental loan facility, which may be for term loans or an increase to the revolving loan commitments.

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

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

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

During the three months ended March 31, 2026, we repaid $30.

0 million under our revolvi ng credit facility.

As of March 31, 2026, we had a total of $94.3 million in revolving loans, with an interest rate of 5.43% outstanding on our credit facility and after giving effect to the amount drawn on our credit facility, approximately $7.9 million of outstanding letters of credit and borrowing limits based on an advance multiple of adjusted EBITDA (as defined in the Credit Agreement), we had $650.0 million of capacity and $547.8 million available for borrowing under our credit facility.

At December 31, 2025, we had a total of $124.3 million revolving credit loans, with an interest rate of 5.48%, outstanding on our credit facility.

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

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

At March 31, 2026, we were in compliance with our financial covenants under the Credit Agreement.

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

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To mitigate the fiscal effects of the COVID-19 public health emergency, the ARPA provided for a 10 percentage point increase in federal matching funds for Medicaid HCBS from April 1, 2021, through March 31, 2022, provided the state satisfied certain conditions.

States must submit periodic HCBS spending plans to CMS regarding the federal and state funds tied to the increase in federal matching funds.

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

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

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

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

During the three months ended March 31, 2026, the Company received additional state funding provided by the ARPA of $6.2 million.

Of the total state funding received by the Company pursuant to the ARPA through March 31, 2026, the Company utilized $3.2 million during the three months ended March 31, 2026, primarily for caregivers and adding support to recruiting and retention efforts, included as a reduction of cost of service revenues in the Company’s Unaudited Condensed Consolidated Statements of Income.

As of March 31, 2026, the deferred portion of ARPA funding of $14.6 million is included within Government stimulus advances on the Company’s Unaudited Condensed Consolidated Balance Sheets.

The following table summarizes changes in our cash flows:

For the Nine Months Ended September 30,

For the Three Months Ended March 31,

(Amounts in Thousands)

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Net cash used in investing activities

Net cash (used in) provided by financing activities

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

Net cash used in financing activities

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

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

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

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

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

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

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

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

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

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

Net cash provided by operating activities was $52.4 million for the three months ended March 31, 2026, compared to net cash provided by operating activities of $18.9 million for the same period in 2025.

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

The changes in accounts receivable were primarily related to the growth in revenue and a decrease in days sales outstanding (“DSO”) during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025.

The related receivables due from the Illinois Department on Aging represented 23.1% and 18.5% of the Company’s net accounts receivable at March 31, 2026 and March 31, 2025, respectively.

Net cash used in investing activities for the three months ended March 31, 2026, primarily consisted of $1.7 million of cash used for property and equipment purchases, primarily related to our ongoing investments in technology infrastructure fixed assets.

Net cash used in investing activities for the three months ended March 31, 2025 primarily consisted of $3.4 million of net cash used for the Jacksonville Acquisition and the Great Lakes Acquisition, $1.9 million of cash used for property and equipment purchases, primarily related to our ongoing investments in technology infrastructure fixed assets, offset by $3.8 million in proceeds received relating to the New York Asset Sale.

Net cash used in financing activities for the three months ended March 31, 2026, primarily consisted of $30.0 million payment on our revolving credit facility, offset by cash received from the exercise of stock options of $0.8 million.

Net cash provided by financing activities for the three months ended March 31, 2025 primarily consisted of $20.0 million payment on our revolving credit facility, offset by cash received from the exercise of stock options of $0.5 million.

Outstanding Accounts Receivable

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

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

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

Outstanding accounts receivable, net of the allowance for credit losses as of March 31, 2026 and December 31, 2025 were approximately $144.8 million and $151.7 million, respectively, decreased by $6.9 millio n as of March 31, 2026 as compared to December 31, 2025.

Accounts receivable for the Illinois Department on Aging decreased approximately $4.2 million during the three months ended March 31, 2026.

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

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

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

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

Our DSOs were 36 days and 38 days at March 31, 2026 and December 31, 2025, respectively.

The DSOs for our largest payor, the Illinois Department on Aging, were 47 days and 55 days at March 31, 2026 and December 31, 2025, respectively.

Off-Balance Sheet Arrangements

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

As of March 31, 2026, we did not have any off-balance sheet guarantees or arrangements with unconsolidated entities.

Critical Accounting Policies and Estimates

There have been no material changes to our critical accounting policies and estimates previously disclosed under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates” set forth in Part II, Item 7 of our Annual Report on Form 10-K for the period ended December 31, 2024, filed on February 25, 2025.

Recently Issued Accounting Pronouncements

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

What changed 10-Q

Item 1. Financial Statements