What changed in this filing

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Item 1. Financial Statements

2026-08-04 compared with 2026-05-05 · 301 added, 178 removed, 806 unchanged (37% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2026 and December 31, 2025

As of June 30, 2026 and December 31, 2025

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

March 31, 2026

June 30, 2026

December 31, 2025

47 unchanged sentences

Common stock—$ .001 par value;

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

40,000 authorized and 18,674 and 18,518 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital

10 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

For the Three Months Ended March 31, 2026 and 2025

For the Three and Six Months Ended June 30, 2026 and 2025

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

For the Three Months Ended

For the Six Months Ended

Net service revenues

$ 363,611 $ 337,708

Cost of service revenues

247,738 230,031

115,873 107,677

General and administrative expenses

77,771 73,220

Depreciation and amortization

Total operating expenses

81,801 77,163

Operating income

34,072 30,514

Interest income

( 510 ) ( 502 )

Interest expense

1 unchanged sentence

Income before income taxes

32,431 26,998

Income tax expense

$ 25,069 $ 21,228

Net income per common share

Basic income per share

$ 1.38 $ 1.18

Diluted income per share

$ 1.36 $ 1.16

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

18,194 17,976

18,486 18,311

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the Three Months Ended March 31, 2026

For the Three and Six Months Ended June 30, 2026

(Amounts and Shares in Thousands)

For the Three Months Ended March 31, 2026

For the Three Months Ended June 30, 2026

Stockholders'

Balance at April 1, 2026

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

Balance at June 30, 2026

For the Six Months Ended June 30, 2026

Stockholders'

Balance at January 1, 2026

3 unchanged sentences

Shares issued for exercise of stock options

Balance at March 31, 2026

Balance at June 30, 2026

ADDUS HOMECARE CORPORATION

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the Three Months Ended March 31, 2025

For the Three and Six Months Ended June 30, 2025

(Amounts and Shares in Thousands)

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

Stockholders'

Balance at April 1, 2025

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

Balance at June 30, 2025

For the Six Months Ended June 30, 2025

Stockholders'

Balance at January 1, 2025

3 unchanged sentences

Shares issued for exercise of stock options

Balance at March 31, 2025

Balance at June 30, 2025

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

ADDUS HOMECARE CORPORATION

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Three Months Ended March 31, 2026 and 2025

For the Six Months Ended June 30, 2026 and 2025

(Amounts in Thousands)

For the Three Months Ended

For the Six Months Ended

Cash flows from operating activities:

$ 25,069 $ 21,228

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

5 unchanged sentences

Gain on disposal of assets

(Gain) loss on termination of operating leases

Loss on termination of operating leases

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

6,567 ( 9,459 )

Prepaid expenses and other current assets

Government stimulus advances

2,938 ( 2,537 )

Accounts payable

( 3,074 ) ( 588 )

Accrued payroll

( 2,015 ) ( 7,124 )

Accrued expenses and other long-term liabilities

Net cash provided by operating activities

52,365 18,949

Cash flows from investing activities:

1 unchanged sentence

Purchases of property and equipment

( 1,711 ) ( 1,883 )

Proceeds received from disposal of assets

Proceeds received from previous acquisition

Proceeds received from divestiture of business

Net cash used in investing activities

( 1,692 ) ( 1,378 )

Net cash (used in) provided by investing activities

Cash flows from financing activities:

Payments on revolver — credit facility

( 30,000 ) ( 20,000 )

Payments for debt issuance costs under the credit facility

( 13 ) ( 21 )

Cash received from exercise of stock options

Net cash used in financing activities

( 29,225 ) ( 19,528 )

Net change in cash

21,448 ( 1,957 )

Cash, at beginning of period

81,617 98,911

Cash, at end of period

$ 103,065 $ 96,954

Supplemental disclosures of cash flow information:

Cash paid for interest

$ 1,802 $ 3,743

Cash paid (refunded) for income taxes

Cash paid for income taxes

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

25 unchanged sentences

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

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(Amounts in thousands)

Weighted average number of shares outstanding for basic per share calculation

2 unchanged sentences

Stock options

122 219 136 221

Restricted stock awards

58 68 120 108

Adjusted weighted average shares for diluted per share calculation

37 unchanged sentences

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.

The Company determined that the consulting agreement gave it the ability to control the business until October 2024, when the Company determined that it no longer controlled the business as it transferred more than 50 % of the clients and caregivers and therefore qualified for sale consideration of the New York Asset Sale.

1 unchanged sentence

The gain was reflected within general and administrative expenses on the consolidated statement of operations.

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

During the six months ended June 30, 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:

March 31, 2026

June 30, 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 March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(Amounts in Thousands)

Operating lease costs

1 unchanged sentence

Short-term lease costs

285 271 540 555

Total lease costs

3,884 3,922 7,795 7,863

sublease income

— — — ( 226 )

Total lease costs, net

2 unchanged sentences

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

March 31, 2026

June 30, 2026

December 31, 2025

4 unchanged sentences

Maturity of Lease Liabilities

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

Remaining operating lease payments as of June 30, 2026 were as follows:

Operating Leases

(Amounts in Thousands)

Due in the 12-month period ended March 31,

Due in the 12-month period ended June 30,

Total future minimum rental commitments

2 unchanged sentences

Supplemental Cash Flows Information

For the Three Months Ended March 31,

For the Six Months Ended June 30,

(Amounts in Thousands)

12 unchanged sentences

Additions for acquisitions

— 11,332 — 11,332

Adjustments to previously recorded goodwill

( 14 ) 41 ( 2 ) 25

Goodwill as of March 31, 2026

Goodwill as of June 30, 2026

$ 432,852 $ 480,354 $ 94,847 $ 1,008,053

On May 1, 2026, the Company completed its acquisition of substantially all of the assets of an Indiana limited liability company doing business as HomeCourt Home Care for $ 12.2 million (the “HomeCourt Acquisition”), with funding provided by available cash.

With the HomeCourt Acquisition, the Company expanded its personal care segment to Indiana and recognized goodwill in its personal care segment of $ 11.3 million.

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:

March 31, 2026

June 30, 2026

December 31, 2025

18 unchanged sentences

$ 172,750 $ ( 73,352 ) $ 99,398 $ 173,454 $ ( 71,044 ) $ 102,410

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.

During the six months ended June 30, 2026, the Company acquired state licenses and a non-competition agreement of $ 0.6 million and $ 0.3 million, respectively, in its personal care services segment related to the HomeCourt Acquisition.

Amortization expense related to the intangible assets was $ 2.0 million and $ 3.9 million for the three and six months ended June 30, 2026 , respectively, and $ 2.0 million and $ 4.0 million for the three and six months ended June 30, 2025, respectively.

The weighted average remaining useful lives of identifiable intangible assets as of June 30, 2026 was 8.76 years.

Details of Certain Balance Sheet Accounts

Prepaid expenses and other current assets consisted of the following:

March 31, 2026

June 30, 2026

December 31, 2025

8 unchanged sentences

$ 39,461 $ 36,179

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

Included $ 2.3 million related to the New York Asset Sale deferred payments as of June 30, 2026 and December 31, 2025 .

Accrued expenses consisted of the following:

March 31, 2026

June 30, 2026

December 31, 2025

14 unchanged sentences

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

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.

During the three and six months ended June 30, 2026 , the Company received additional state funding provided by the ARPA of $ 0.1 million and $ 6.3 million, respectively.

Of the total state funding received by the Company pursuant to the ARPA through June 30, 2026 , the Company utilized $ 2.4 million and $ 5.6 million during the three and six months ended June 30, 2026 , respectively, primarily for caregivers and adding support to recruiting and retention efforts, included as a reduction of cost of service revenues in the Company’s Unaudited Condensed Consolidated Statements of Income.

As of June 30, 2026 , the deferred portion of ARPA funding of $ 12.4 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:

March 31, 2026

June 30, 2026

December 31, 2025

7 unchanged sentences

Amended and Restated Senior Secured Credit Facility

On October 31, 2018, the Company entered into the Amended and Restated Credit Agreement, with certain lenders and Capital One, National Association, as a lender and as agent for all lenders, as amended by the First Amendment to Amended and Restated Credit Agreement, dated as of September 12, 2019, as further amended by the Second Amendment to Amended and Restated Credit Agreement, dated as of July 30, 2021, as further amended by the Third Amendment to Amended and Restated Credit Agreement, dated as of April 26, 2023, and as further amended by the Fourth Amendment to Amended and Restated Credit Agreement, dated as of October 22, 2024 ( as described below, the “Fourth Amendment”) (as amended, the “Credit Agreement”, as used throughout this Quarterly Report on Form 10 -Q, “credit facility” shall mean the credit facility evidenced by the Credit Agreement).

On October 31, 2018, the Company entered into the Amended and Restated Credit Agreement, with certain lenders and Capital One, National Association, as a lender and as agent for all lenders, as amended by the First Amendment to Amended and Restated Credit Agreement, dated as of September 12, 2019, as further amended by the Second Amendment to Amended and Restated Credit Agreement, dated as of July 30, 2021, as further amended by the Third Amendment to Amended and Restated Credit Agreement, dated as of April 26, 2023, and as further amended by the Fourth Amendment to Amended and Restated Credit Agreement, dated as of October 22, 2024 ( as amended, the “Credit Agreement”, as used throughout this Quarterly Report on Form 10 -Q, “credit facility” shall mean the credit facility evidenced by the Credit Agreement).

The credit facility consists of a $ 650.0 million revolving credit facility and a $ 150.0 million incremental loan facility, which incremental loan facility may be for term loans or an increase to the revolving loan commitments.

The maturity of this credit facility is July 30, 2028 .

On October 22, 2024, the Company entered into the Fourth Amendment to, among other things, (a) increase the Company’s revolving credit facility to an aggregate amount of $ 650.0 million, (b) increase the Company’s incremental loan facility to an aggregate amount of $ 150.0 million, and (c) extend the maturity date of the credit facility from July 30, 2026 to July 30, 2028.

Interest on the credit facility may be payable at ( x ) the sum of (i) an applicable margin ranging from 0.75 % to 1.50 % based on the applicable senior net leverage ratio plus (ii) a base rate equal to the greatest of (a) the rate of interest last quoted by The Wall Street Journal as the “prime rate,” (b) the sum of the federal funds rate plus a margin of 0.50 %, and (c) the sum of Term Secured Overnight Financing Rate (“SOFR”) (as published by the CME Group Benchmark Administrative Limited) for an interest period of one month for such applicable day ( not to be less than 0.00 %), plus a margin of 1.00 % or (y) the sum of (i) an applicable margin ranging from 1.75 % to 2.50 % based on the applicable senior net leverage ratio plus (ii) the rate per annum equal to the sum of Term SOFR (as published by the CME Group Benchmark Administrative Limited) for the applicable interest period ( not to be less than 0.00 %).

8 unchanged sentences

The Credit Agreement also contains certain customary financial covenants and negative covenants that, among other things, include a requirement to maintain a minimum Interest Coverage Ratio (as defined in the Credit Agreement) and a requirement to stay below a maximum Total Net Leverage Ratio (as defined in the Credit Agreement).

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

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.

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 an event of default, plus limited exceptions for tax and administrative distributions), a restriction on the ability to consummate acquisitions (without the consent of the lenders) under its credit facility subject to compliance with the Total Net Leverage Ratio (as defined in the Credit Agreement) thresholds, restrictions on mergers, dispositions of assets, and affiliate transactions, and restrictions on fundamental changes and lines of business.

During the six months ended June 30, 2026 , the Company did not draw on its credit facility and repaid $ 60.0 million under the revolving credit facility.

As of June 30, 2026 , the Company had a total of $ 64.3 million of revolving loans, with an interest rate of 5.40 %, 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 $ 577.8 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 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.

As of June 30, 2026 , the Company was in compliance with all financial covenants under the Credit Agreement.

The effective income tax rates were 26.9 % and 26.4 % for the three months ended June 30, 2026 and 2025, respectively.

The effective income tax rates were 25.0 % and 24.0 % for the six months ended June 30, 2026 and 2025 , respectively.

For the three months ended June 30, 2026 , the difference between our federal statutory and effective income tax rates was principally due to the inclusion of state taxes, non-deductible compensation and an excess tax expense, partially offset by the use of federal employment tax credits.

The Work Opportunity Tax Credit (“WOTC”) is a federal tax credit available to employers for hiring individuals from certain targeted groups.

The Company has historically benefited from this credit;

however, because the program expired on December 31, 2025, and had not been renewed as of January 1, 2026, the effective income tax rate for the current quarter includes only the benefit associated with employees hired on or before December 31, 2025.

For both the three months ended June 30, 2026 and 2025 , the effective tax rates were inclusive of an excess tax benefit of 0.0 % and 0.1 %, 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.

5 unchanged sentences

Segment Information

Operating segments are defined as components of a company that engage in business activities from which it may earn revenues and incur expenses, and for which separate financial information is available and is regularly reviewed by the Company’s CODM.

The Company identifies its Chief Executive Officer and Chief Operating Officer together as CODMs to assess the performance of the individual segments and make decisions about resources to be allocated to the segments.

10 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 March 31, 2026

For the Three Months Ended June 30, 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 Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

(Amounts in Thousands)

18 unchanged sentences

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

For the Six Months Ended June 30, 2026

(Amounts in Thousands)

Personal Care

Net service revenues

$ 577,089 $ 130,032 $ 33,907 $ 741,028

Direct service personnel

412,762 58,929 18,037 489,728

General and administrative salaries, wages and benefits

38,788 24,444 7,198 70,430

Other segment items (1)

12,293 19,902 2,222 34,417

Segment operating income

113,246 26,757 6,450 146,453

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 Six Months Ended June 30, 2025

(Amounts in Thousands)

Personal Care

Net service revenues

$ 527,469 $ 123,649 $ 36,033 $ 687,151

Direct service personnel

379,518 52,382 19,864 451,764

General and administrative salaries, wages and benefits

36,647 22,427 6,308 65,382

Other segment items (1)

12,073 19,401 2,465 33,939

Segment operating income

99,231 29,439 7,396 136,066

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

Significant Payors

1 unchanged sentence

Personal Care Segment

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(in Thousands)

State, local and other governmental programs

9 unchanged sentences

Hospice Segment

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(in Thousands)

$ 60,020 93.4 % $ 57,846 93.0 % $ 122,111 93.9 % $ 114,638 92.7 %

7 unchanged sentences

Home Health Segment

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(in Thousands)

$ 10,903 63.5 % $ 12,517 69.4 % $ 21,128 62.3 % $ 25,094 69.7 %

7 unchanged sentences

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 months ended March 31, 2026 and 2025 , respectively, were as follows:

The percentages of segment revenue for each of these significant states for the three and six months ended June 30, 2026 and 2025 , respectively, were as follows:

Personal Care Segment

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(in Thousands)

$ 121,089 40.9 % $ 115,226 42.8 % $ 237,839 41.2 % $ 226,640 43.0 %

5 unchanged sentences

$ 295,995 100.0 % $ 269,183 100.0 % $ 577,089 100.0 % $ 527,469 100.0 %

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

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

Hospice Segment

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(in Thousands)

$ 24,207 37.7 % $ 23,204 37.3 % $ 50,674 39.0 % $ 46,391 37.5 %

6 unchanged sentences

Home Health Segment

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(in Thousands)

$ 9,166 53.4 % $ 8,737 48.4 % $ 17,705 52.2 % $ 17,292 48.0 %

4 unchanged sentences

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 32.1 % 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 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 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.

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 both the three and six months ended June 30, 2026 and 2025, respectively.

The Illinois Department on Aging, the largest payor program for the Company’s Illinois personal care operations, accounted for 17.7 % and 18.6 % of the Company’s net service revenues for the three months ended June 30, 2026 and 2025, respectively, and accounted for 17.8 % and 18.6 % of the Company’s net service revenues for the six months ended June 30, 2026 and 2025 , respectively.

The related receivables due from the Illinois Department on Aging represented 13.2 % and 25.2 % of the Company’s net accounts receivable at June 30, 2026 and December 31, 2025 , respectively.

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

31 unchanged sentences

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

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

eligibility standards, moratoria on new provider enrollments and limits on services imposed through legislation or by governmental agencies or other third-party payors;

the potential for litigation, audits, and investigations;

15 unchanged sentences

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

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.

Managed care organizations accounted for 38.6% a nd 36.7% of our net service revenues during the three months ended June 30, 2026 and 2025, respectively, and 38.4% and 36.5% of our net service revenues during the six months ended June 30, 2026 and 2025, respectively.

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

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

Net service revenues by segment:

(Amounts in Thousands)

Personal care

Total net service revenue

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

As of June 30, 2026, we provided our services in 24 states through 264 offices.

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

6 unchanged sentences

(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 .

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 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.

On May 1, 2026, the Company completed its acquisition of HomeCourt Home Care (the “HomeCourt Acquisition”), for approximately $12.2 million, with funding provided by available cash.

With the HomeCourt Acquisition, the Company expanded its services within its personal care segment to Indiana and recognized goodwill in its personal care segment of $11.3 million.

New York Asset Sale

Effective May 20, 2024, we entered into the New York Asset Sale.

The Company entered into a consulting agreement with the purchaser, as the transfer of clients and caregivers and payment for assets pursuant to the New York Asset Sale is occurring over time as regulatory approvals are received, coordination of the transfer of clients and caregivers occurs, and the change of control takes place.

The Company entered into a consulting agreement with the purchaser, as the transfer of clients and caregivers and payment for assets pursuant to the New York Asset Sale was occurring over time.

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

9 unchanged sentences

Personal Care Segment

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(in Thousands)

State, local and other governmental programs

5 unchanged sentences

Hospice Segment

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(in Thousands)

Commercial insurance

4 unchanged sentences

Home Health Segment

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(in Thousands)

Managed care organizations

2 unchanged sentences

Total home health segment net service revenues

The personal care segment derives a significant amount of its net service revenues in Illinois, which represented 32.1% and 33.0% of our net service revenues for the three months ended March 31, 2026 and 2025, 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 17.8% and 18.5% of our net service revenues for the three months ended March 31, 2026 and 2025, 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 both the three and six months ended June 30, 2026 and 2025, 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 17.7% and 18.6% of our net service revenues for the three months ended June 30, 2026 and 2025, respectively, and accounted for 17.8% and 18.6% of our net service revenues for the six months ended June 30, 2026 and 2025, respectively.

Changes in Illinois Reimbursement

1 unchanged sentence

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 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.

These rates remain stable under the Illinois fiscal year 2027 budget.

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

Illinois’ current Persons Who are Elderly waiver expires September 30, 2026, unless CMS approves a renewal.

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, 2026, the rate was adjusted to $17.05 based on the increase in the CPI.

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.

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 in 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

47 unchanged sentences

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.

In addition, 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.

CMS has increased program integrity efforts within the Medicare and Medicaid programs, including by withholding or deferring federal Medicaid funding in states that federal administrators determine do not have sufficient anti-fraud systems, which may delay or otherwise affect the reimbursement providers in affected states receive.

In May 2026, CMS issued a six-month nationwide moratorium on new Medicare enrollments for hospices and home health agencies, temporarily restricting all new applications and branch expansions.

The moratorium may also indirectly affect Medicaid enrollment in states requiring Medicare certification for Medicaid enrollment.

The rule also requires a home health or hospice to submit an initial Medicare application if it experiences a change in majority ownership within 36 months after its initial enrollment or most recent change in majority ownership.

Components of our Statements of Income

27 unchanged sentences

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

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.

The effective income tax rates were 26.9% and 26.4% for the three months ended June 30, 2026 and 2025, respectively.

The effective income tax rates were 25.0% and 24.0% for the six months ended June 30, 2026 and 2025, respectively, compared to our federal statutory rate of 21%.

Results of Operations — Consolidated

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

Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025

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

For the Three Months Ended March 31,

For the Three Months Ended June 30,

(Amounts in Thousands, Except Percentages)

10 unchanged sentences

Income tax expense

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 .

Net service revenues increased by 8.0% to $377.4 million for the three months ended June 30, 2026 compared to $349.4 million for the three months ended June 30, 2025 .

Revenue increased by $26.8 million in our personal care segment, increased by $2.0 million in our hospice segment and decreased by $0.9 million in our home health segment during the three months ended June 30, 2026 , compared to the same period in 2025 .

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

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

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

Gross profit, expressed as a percentage of net service revenues, was 32.2% for the three months ended June 30, 2026 , compared to 32.6% for the same period in 2025 .

General and administrative expenses increased to $78.5 million for the three months ended June 30, 2026 , compared to $77.1 million for the three months ended June 30, 2025 .

The increase in general and administrative expenses was primarily due to acquisition activity, including the HomeCourt Acquisition, the Gold Horses Acquisition and the Helping Hands Acquisition, which contributed to an increase in administrative employee wage, bonus, tax, and benefit costs of $4.0 million, partially offset by a $1.7 million decrease in professional fees and other decreases in general and administrative expenses.

General and administrative expenses, expressed as a percentage of net service revenues, were 20.8% for the three months ended June 30, 2026 , compared to 22.1% for the three months ended June 30, 2025 .

Interest expense decreased to $1.7 million for the three months ended June 30, 2026 from $3.5 million for the three months ended June 30, 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 June 30, 2026 , compared to the three months ended June 30, 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 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.

The effective income tax rate was 26.9% and 26.4% for the three months ended June 30, 2026 and 2025 , respectively.

Our higher effective income tax rate for the three months ended June 30, 2026 was principally due to a lower excess tax expense with a lower benefit from the use of federal employment tax credits.

For the three months ended June 30, 2026 and 2025 , the excess tax benefit and federal employment tax credits were 1.2% and 2.6%, respectively.

Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025

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

For the Six Months Ended June 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 7.8% to $741.0 million for the six months ended June 30, 2026 compared to $687.2 million for the six months ended June 30, 2025 .

Revenue increased by $49.6 million in our personal care segment, increased by $6.4 million in our hospice segment and decreased by $2.1 million in our home health segment during the six months ended June 30, 2026 , compared to the same period in 2025 .

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

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

Gross profit, expressed as a percentage of net service revenues, was 32.0% for the six months ended June 30, 2026 , compared to 32.2% for the same period in 2025 .

General and administrative expenses increased to $156.3 million for the six months ended June 30, 2026 , compared to $150.3 million for the six months ended June 30, 2025 .

The increase in general and administrative expenses was primarily due to acquisition activity, including the HomeCourt Acquisition, the Gold Horses Acquisition and the Helping Hands Acquisition, which contributed to an increase in administrative employee wage, bonus, tax, and benefit costs of $7.4 million, partially offset by a $1.9 million decrease in professional fees and other decreases in general and administrative expenses.

General and administrative expenses, expressed as a percentage of net service revenues, were 21.1% for the six months ended June 30, 2026 , compared to 21.9% for the six months ended June 30, 2025 .

Interest expense decreased to $3.9 million for the six months ended June 30, 2026 from $7.5 million for the six months ended June 30, 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 six months ended June 30, 2026 , compared to the six months ended June 30, 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 25.0% and 24.0% for the six months ended June 30, 2026 and 2025 , respectively.

Our higher effective income tax rate for the six months ended June 30, 2026 , was principally due to a lower excess tax benefit with a lower benefit from the use of federal employment tax credits .

For the six months ended June 30, 2026 and 2025 , the excess tax benefit and federal employment tax credits were 3.1% and 4.8%, respectively.

Results of Operations – Segments

1 unchanged sentence

Personal Care Segment

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(Amounts in Thousands, Except Percentages)

Operating Results

11 unchanged sentences

Same store growth revenue % * (3)

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

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

12 unchanged sentences

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

The personal care segment derives a significant amount of its net service revenues from operations in Illinois, which represented 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 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 both the three and six months ended June 30, 2026 and 2025 , respectively.

One payor, the Illinois Department on Aging, accounted for 17.7% and 18.6% of net service revenues for the three months ended June 30, 2026 and 2025 , respectively, and accounted for 17.8% and 18.6% of net service revenues for the six months ended June 30, 2026 and 2025, respectively.

Net service revenues from state, local, and other governmental programs accounted for 50.3% and 51.4% of net service revenues for the three months ended June 30, 2026 and 2025 , respectively.

Managed care organizations accounted for 47.1% and 45.3% of net service revenues for the three months ended June 30, 2026 and 2025 , 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 50.0% and 51.4% of net service revenues for the six months ended June 30, 2026 and 2025, respectively.

Managed care organizations accounted for 47.3% and 45.3% of net service revenues for the six months ended June 30, 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 10.0% and 9.4% for the three and six months ended June 30, 2026 respectively, compared to the three and six months ended June 30, 2025.

Net service revenues reflected a 5.6% and 5.4% increase in billable hours and a 4.2% and 3.7% increase in revenues per billable hour for the three and six months ended June 30, 2026 , respectively.

Gross profit, expressed as a percentage of net service revenues, was 28.9% for the three months ended June 30, 2026 from 28.2% for the three months ended 2025 and increased to 28.3% for the six months ended June 30, 2026 from 27.9% for the six months ended June 30, 2025.

The increases primarily reflected higher revenues per billable hour.

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 8.9% and 9.2% for the three months ended March 31, 2026 and 2025 , respectively.

General and administrative expenses, expressed as a percentage of net service revenues, were 8.5% and 9.0% for the three months ended June 30, 2026 and 2025, respectively, and 8.7% and 9.1% for the six months ended June 30, 2026 and 2025 , respectively.

Hospice Segment

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(Amounts in Thousands, Except Percentages)

Operating Results

18 unchanged sentences

Revenue per patient day is hospice revenue divided by the number of patient days in the period.

Hospice revenue excludes the impact of one-time adjustments such as ARPA, Medicare cap or specific situational reserves.

Revenue organic growth and average daily census organic growth reflect the change in year-over-year revenue and average daily census for the same store base.

We define the same store base to include those stores open for at least 52 full weeks.

These measures highlight the performance of existing stores, while excluding the impact of acquisitions, new store openings and closures.

These measures highlight the performance of existing stores, while excluding the impact of one-time adjustments such as ARPA, Medicare cap or specific situational reserves as well as acquisitions, new store openings and closures.

* Management deems these metrics to be key performance indicators.

9 unchanged sentences

Our hospice segment principally provides routine home care.

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.

Net service revenues from Medicare accounted for 93.4% and 93.0% for the three months ended June 30, 2026 and 2025 , respectively, and 93.9% and 92.7% for the six months ended June 30, 2026 and 2025, respectively.

Net service revenues from managed care organizations accounted for 3.0% and 3.2% for the three months ended June 30, 2026 and 2025 , respectively, and for 2.6% and 3.3% for the six months ended June 30, 2026 and 2025, respectively.

Net service revenues increased by 3.3% and 5.2% for the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025.

Net services revenues included organic growth in average daily census and higher revenues per patient day.

Gross profit, expressed as a percentage of net service revenues, was 44.0% and 47.9% for the three months ended June 30, 2026 and 2025 , respectively, and 45.2% and 47.7% for the six months ended June 30, 2026 and 2025, respectively.

The decreases were primarily attributable 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 24.1% and 23.7% for the three months ended March 31, 2026 and 2025 , respectively.

General and administrative expenses, expressed as a percentage of net service revenues, was 25.2% and 24.1% for the three months ended June 30, 2026 and 2025 , respectively, and 24.6% and 23.9% for the six months ended June 30, 2026 and 2025, respectively.

Home Health Segment

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(Amounts in Thousands, Except Percentages)

Operating Results

19 unchanged sentences

We define the same store base to include those stores open for at least 52 full weeks.

These measures highlight the performance of existing stores, while excluding the impact of acquisitions, new store openings, and closures.

These measures highlight the performance of existing stores, while excluding the impact of one-time adjustments such as specific situational reserves as well as acquisitions, new store openings and closures.

* Management deems these metrics to be key performance indicators.

6 unchanged sentences

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 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.

Net service revenues from Medicare accounted for 63.5% and 69.4% , managed care organizations accounted for 25.7% and 23.6% , and state, local, and other governmental programs accounted for 7.7% and 4.4% for the three months ended June 30, 2026 and 2025 , respectively.

Net service revenues from Medicare accounted for 62.3% and 69.7%, managed care organizations accounted for 24.7% and 22.4%, and state, local, and other governmental programs accounted for 9.9% and 5.2% for the six months ended June 30, 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.

1 unchanged sentence

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

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 .

Net service revenues decreased by 4.8% and 5.9% for the three and six months ended June 30, 2026, respectively, compared to the three and six m onths ended June 30, 2025.

Net service revenues primarily reflected lower patient visits, partially offset by a favorable payor mix.

Gross profit, expressed as a percentage of net service revenues, was 44.5% and 45.9% for the three months ended June 30, 2026 and 2025 , respectively, and 44.9% and 42.9% for the six months ended June 30, 2026 and 2025, respectively.

The decrease for the three months ended June 30, 2026 was primarily attributable to an increase in direct wages, taxes and benefit costs as a percentage of net service revenues.

The increase for the six months ended June 30, 2026 was primarily attributable to a decrease in direct wages, taxes and benefit costs as a percentage of net service revenues.

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, were 26.4% and 23.2% for the three months ended March 31, 2026 and 2025 .

General and administrative expenses, expressed as a percentage of net service revenues, were 25.4% and 21.6% for the three months ended June 30, 2026 and 2025 , respectively, and 25.9% and 22.4% for the six months ended June 30, 2026 and 2025, respectively.

Liquidity and Capital Resources

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

At 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.

At June 30, 2026 and December 31, 2025, we had cash balances of $ 99.6 million and $81.6 million, respectively.

At June 30, 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 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.

During the six months ended June 30, 2026, we repaid $60.0 million under our revolvi ng credit facility.

As of June 30, 2026, we had a total of $64.3 million in revolving loans, with an interest rate of 5.40% 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 $577.8 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 March 31, 2026, we were in compliance with our financial covenants under the Credit Agreement.

At June 30, 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.

7 unchanged sentences

ARPA Spending Plans

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.

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 is participating include those aimed at strengthening the provider workforce (e.g., efforts to recruit, retain, and train direct service providers).

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 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.

During the three and six months ended June 30, 2026 , the Company received additional state funding provided by the ARPA of $0.1 million and $6.3 million, respectively.

Of the total state funding received by the Company pursuant to the ARPA through June 30, 2026 , the Company utilized $2.4 million and $5.6 million during the three and six months ended June 30, 2026 , respectively, primarily for caregivers and adding support to recruiting and retention efforts, included as a reduction of cost of service revenues in the Company’s Unaudited Condensed Consolidated Statements of Income.

As of June 30, 2026 , the deferred portion of ARPA funding of $12.4 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 Three Months Ended March 31,

For the Six Months Ended June 30,

(Amounts in Thousands)

Net cash provided by operating activities

Net cash used in investing activities

Net cash (used in) provided by investing activities

Net cash used in financing activities

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

Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 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 $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.

Net cash provided by operating activities was $92.4 million for the six months ended June 30, 2026, compared to net cash provided by operating activities of $41.5 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 payments related to payroll and accounts payable.

The changes in accounts receivable were primarily related to the growth in revenue and a decrease in days sales outstanding (“DSO”) during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.

The related receivables due from the Illinois Department on Aging represented 13.2% and 18.6% of the Company’s net accounts receivable at June 30, 2026 and June 30, 2025, respectively.

Net cash used in investing activities for the six months ended June 30, 2026, primarily consisted of $12.2 million of net cash used for the HomeCourt Acquisition and $3.1 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 six months ended June 30, 2025 primarily consisted of $3.4 million of net cash used for the Jacksonville Acquisition and the Great Lakes Acquisition, $3.1 million of cash used for property and equipment purchases, primarily related to our ongoing investments in technology infrastructure fixed assets, offset by $3.8 million in proceeds received relating to the New York Asset Sale and $2.9 million in proceeds received relating to the December 2024 acquisition of the personal care business of Curo Health Services, LLC, a Delaware limited liability company that does business as Gentiva .

Net cash used in financing activities for the six months ended June 30, 2026, primarily consisted of $60.0 million payment on our revolving credit facility, offset by cash received from the exercise of stock options of $0.8 million.

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

Outstanding Accounts Receivable

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.

Outstanding accounts receivable, net of the allowance for credit losses as of June 30, 2026 and December 31, 2025 were approximately $145.1 million and $151.7 million, respectively, decreased by $6.6 millio n as of June 30, 2026 as compared to December 31, 2025.

Accounts receivable for the Illinois Department on Aging decreased approximately $18.6 million during the six months ended June 30, 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 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.

Our DSOs were 36 days and 38 days at June 30, 2026 and December 31, 2025, respectively.

The DSOs for our largest payor, the Illinois Department on Aging, were 27 days and 55 days at June 30, 2026 and December 31, 2025, respectively.

Off-Balance Sheet Arrangements

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

As of June 30, 2026, we did not have any off-balance sheet guarantees or arrangements with unconsolidated entities.

Critical Accounting Policies and Estimates

3 unchanged sentences

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