Enhabit

Enhabit (EHAB) Q1 2025 Earnings

Reported May 7, 2025 at 5:10 PM ET · SEC Source

Q1 25 EPS

$0.10

BEAT +60.26%

Est. $0.06

Q1 25 Revenue

$259.9M

MISS 2.33%

Est. $266.1M

vs S&P Since Q1 25

+22.0%

BEATING MARKET

EHAB +55.1% vs S&P +33.0%

Market Reaction

Did EHAB Beat Earnings? Q1 2025 Results

Enhabit Home Health & Hospice delivered a sharply profitable first quarter in 2025, with adjusted diluted EPS of $0.10 beating the $0.06 consensus estimate by 60.26%, even as revenue of $259.90 million came in 2.33% below expectations and slipped 0.9… Read more Enhabit Home Health & Hospice delivered a sharply profitable first quarter in 2025, with adjusted diluted EPS of $0.10 beating the $0.06 consensus estimate by 60.26%, even as revenue of $259.90 million came in 2.33% below expectations and slipped 0.9% year over year. The standout driver was the hospice segment, where revenue surged 20.5% to $59.30 million on a 12.3% rise in average daily census, and Adjusted EBITDA margins expanded to 25.3% from 18.5%, reflecting improved clinical productivity and disciplined cost management. Home health revenue declined 5.9% to $200.60 million, though sequential ADC growth and a new national payer contract signed in late 2024 signaled a pivot from volume replacement toward genuine growth. The company also meaningfully strengthened its balance sheet, reducing bank debt by $25.00 million in the quarter and exiting its covenant relief period one quarter ahead of schedule, with plans to open 13 new hospice locations in 2025 supporting its de novo growth strategy. Enhabit reaffirmed full-year guidance of $1.05 to $1.08 billion in revenue and Adjusted EBITDA of $101.00 to $107.00 million.

Key Takeaways

  • Hospice average daily census increased 12.3% year over year with ADC growth every month since January 2024
  • Hospice Adjusted EBITDA increased 64.8% year over year driven by improved clinical productivity
  • Home health non-Medicare admissions increased 7.4% year over year aided by key national contract signed in December 2024
  • Home health cost per patient day decreased 2.4% year over year on improved clinical staff productivity
  • Home health total ADC grew 3.7% sequentially, exiting Q1 2025 above prior year levels
  • Consolidated Adjusted EBITDA grew 5.1% year over year and 6.0% sequentially
  • Gain on sale of Medalogix investment contributed $14.7 million net of tax to net income
  • Home office G&A expenses decreased 1.3% due to cost control initiatives
  • Gross margin expanded to 49.9% from 48.9% year over year
24/7 Wall St

EHAB YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

EHAB Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“Enhabit's first quarter 2025 results are a product of steadfast execution of our strategies. Home health census grew 3.7% sequentially and hospice census grew 12.3% year over year. The combination of strong growth, improved profitability and continued balance sheet improvements resulted in a leverage ratio now below 4.5 times. This enables us to formally exit the covenant relief period restrictions in our credit agreement and allows us to benefit from improved pricing on our debt and added flexibility going forward.”

— Barb Jacobsmeyer, Q1 2025 Earnings Press Release