Enhabit Inc
Q3 2025 Earnings
Market Reaction
Did EHAB Beat Earnings? Q3 2025 Results
Enhabit Home Health & Hospice delivered a sharply better-than-expected bottom line in Q3 2025, with adjusted diluted EPS of $0.17 beating the $0.12 consensus by 42.38%, even as revenue came in just slightly below expectations. Net service revenue rose 3.9% year over year to $263.60 million, missing the $267.14 million consensus by 1.33%, partly due to a temporary volume disruption from a national payer contract renegotiation that weighed on the home health segment in late Q2 and early Q3. The real story was hospice, where a deliberate de novo expansion strategy, with the company on track to open 10 new locations in 2025, drove a 20.0% revenue surge to a record $63.10 million and a 72.0% jump in segment Adjusted EBITDA to $17.20 million. Consolidated Adjusted EBITDA grew 10.2% to $27.00 million, while the company reduced its leverage ratio to 3.9x from 5.4x a year earlier. Looking ahead, Enhabit narrowed its full-year guidance, raising the Adjusted EBITDA floor to $106 million to $109 million and Adjusted EPS to $0.50 to $0.56.
- Hospice ADC grew 12.6% year over year, with ADC increasing sequentially every quarter since Q1 2024
- Home health non-Medicare admissions increased 10.4% year over year
- Medicare ADC decline stabilized significantly to 1.4% vs. 14.1% decline in prior year quarter
- Hospice cost per patient day improved 3.1% year over year on clinical productivity gains
- Home health cost per patient day improved 2.1% year over year on better staff optimization
- G&A expenses as a percentage of revenue improved 90 basis points year over year
- Consolidated Adjusted EBITDA grew 10.2% year over year to $27.0 million
- Temporary volume disruption from national payer contract renegotiation in late Q2/early Q3 impacted home health revenue
“Our third quarter results reflect strong execution on our core strategic priorities, with year-over-year growth in revenue, census and Adjusted EBITDA. This progress allowed us to further reduce our bank debt and strengthen the balance sheet during the quarter.”
Enhabit CEO, on the earnings call
Forward Guidance & Outlook
Enhabit updated its full-year 2025 guidance, narrowing and modestly raising the lower end of ranges: net service revenue of $1,058M to $1,063M (prior $1,060M to $1,073M), Adjusted EBITDA of $106M to $109M (prior $104M to $108M), and Adjusted EPS of $0.50 to $0.56 (prior $0.47 to $0.55). Home health volume (ADC) is expected to increase 2.0% to 2.5% with unit revenue per patient day declining 3.5% to 3.0% and cost per day declining 1.5% to 2.0%, reflecting continued shift to more non-Medicare admissions. Hospice volume (ADC) is expected to grow 11.5% to 12.0% with unit revenue per patient day increasing 5.5% to 6.0% and cost per patient day declining 1.0% to 1.5%. Adjusted free cash flow is expected to be $53M to $61M for the full year. The company assumes a tax rate of approximately 23% and diluted share count of approximately 51.3 million shares.
EHAB YoY Financials
EHAB Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.