Enhabit Inc
Q2 2025 Earnings
Market Reaction
Did EHAB Beat Earnings? Q2 2025 Results
Enhabit delivered a convincing second-quarter beat on both the top and bottom lines, with earnings per share of $0.13 clearing the $0.10 consensus estimate by 30.78% and net service revenue of $266.10 million edging past expectations by 1.03% while growing 2.1% year over year. The clearest engine behind the outperformance was hospice, where net service revenue surged 19.4% year over year to $60.20 million and segment adjusted EBITDA jumped 53.8% to $14.00 million as average daily census posted its sixth consecutive quarter of sequential growth. Net income swung to $5.20 million from a loss in the year-ago period, while adjusted EBITDA rose 6.7% to $26.90 million with margin expanding to 10.1%. The quarter also carried notable leadership news, as the company announced a CEO transition plan with Barb Jacobsmeyer set to remain in her role until a successor is named. Encouraged by hospice momentum and sequential stabilization in home health, Enhabit raised its full-year 2025 adjusted EBITDA guidance to $104 million to $108 million and lifted adjusted EPS guidance to $0.47 to $0.55.
- Hospice ADC increased 12.3% year over year, sixth consecutive quarter of sequential growth
- Home health non-Medicare admissions increased 5.2% year over year
- Successful renegotiation of a national payer agreement with low double-digit % rate increase
- Home health Medicare ADC rate of decline more than halved to 3.4% vs. 14.1% decline in prior year period
- Hospice revenue per patient day improved 6.3% year over year
- Home health cost per patient day remained flat year over year
- Consolidated Adjusted EBITDA grew 6.7% year over year to $26.9M
- Home office G&A expenses as percentage of revenue improved to 9.9% from 10.8%
“Our second quarter results reflect strong execution of our strategic 2025 priorities, with sequential and year-over-year growth in revenue and Adjusted EBITDA. Home health continued to benefit from our payer contract initiatives as admissions grew 1.3% year over year and saw further stabilization in Medicare Fee-for-Service census. Hospice delivered its sixth consecutive quarter of growth with average daily census rising 12.3% year over year. We also strengthened our balance sheet by reducing bank debt and increasing liquidity. With this momentum, we're well positioned for success in the second half of 2025.”
Enhabit CEO, on the earnings call
Forward Guidance & Outlook
Enhabit raised its full-year 2025 guidance: net service revenue of $1,060M–$1,073M (from $1,050M–$1,080M), Adjusted EBITDA of $104M–$108M (from $101M–$107M), and Adjusted EPS of $0.47–$0.55 (from $0.41–$0.51). Key assumptions include home health ADC growth of 2.0%–3.0%, home health revenue per patient day decline of (2.7)%–(2.3)%, hospice ADC growth of 10.9%–11.6%, hospice revenue per patient day growth of 4.9%–5.3%, an approximately 24% tax rate, and approximately 51.2 million diluted shares. Adjusted free cash flow is expected at $47M–$57M. The company plans to open 10 de novo locations in 2025 and continues to de-lever its balance sheet.
EHAB YoY Financials
EHAB Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.