Enhabit Reports Second Quarter 2025 Financial Results

Enhabit Staff on August 6, 2025

Company Increases Full-Year 2025 Guidance

Company to host a conference call tomorrow, August 7, 2025, at 10 a.m. EDT

DALLAS–(BUSINESS WIRE)–Enhabit, Inc. (NYSE: EHAB), a leading home health and hospice care provider, today reported its results of operations for the second quarter ended June 30, 2025.

“Our second quarter results reflect strong execution of our strategic 2025 priorities, with sequential and year-over-year growth in revenue and Adjusted EBITDA,” said Barb Jacobsmeyer, president and CEO of Enhabit. “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.”

QUARTERLY PERFORMANCE – CONSOLIDATED

  • Net service revenue of $266.1 million
  • Net income attributable to Enhabit, Inc. of $5.2 million
  • Adjusted EBITDA of $26.9 million
  • Earnings per share of $0.10
  • Adjusted diluted earnings per share of $0.13

RECENT COMPANY HIGHLIGHTS

  • Home health non-Medicare admissions increased 5.2% with total admissions growth of 1.3% year over year; 2.0% growth when normalized for branches closed in 2025.
  • Home health delivered its second straight quarter of net service revenue and Adjusted EBITDA growth while continuing to stabilize Medicare average daily census (ADC).
  • Home health total ADC sequential growth of 2.1% and growth of 0.5% compared to the prior year.
  • Home health cost per patient day remained flat year over year.
  • Hospice ADC increased 12.3% year over year.
    • ADC increased sequentially every quarter since Q1 2024.
  • Hospice admissions increased 8.7% year over year; 10.0% when normalized for branches closed in 2025.
  • Hospice Adjusted EBITDA increased 53.8% year over year.
  • Hospice cost per patient day increased 1.0% year over year.
  • Consolidated Adjusted EBITDA grew 6.7% year over year and 1.2% sequentially to $26.9 million.
  • Opened three de novo locations: One home health and two hospice.
  • Consistent de-levering of balance sheet with the fifth straight quarter of debt prepayment.
    • Reduced bank debt by $10.0 million in the quarter.
    • Prepayments totaling $45 million since Q1 2024 – lowering interest expense by $3.2 million over the same period.

FINANCIAL RESULTS

Consolidated

SEGMENT RESULTS

Home health

Hospice

GUIDANCE

The Company has updated its guidance as of August 6, 2025:

For additional considerations regarding the Company’s 2025 guidance ranges, see the supplemental information posted on the Company’s website at http://investors.ehab.com.

CONFERENCE CALL INFORMATION

The Company will host an investor conference call at 10 a.m. EDT on August 7, 2025 to discuss its results for the second quarter of 2025. To access the live call by phone, dial toll-free (888) 660-6150 or international (929) 203-0843; the conference ID is 5248158. A simultaneous webcast of the call, along with supplemental information, may be accessed by visiting https://events.q4inc.com/attendee/680483829. Following the call, a replay will be available on the Company’s website at http://investors.ehab.com.

ABOUT ENHABIT HOME HEALTH & HOSPICE

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 249home health locations and 114 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit enhabit.com.

OTHER INFORMATION

Note regarding presentation and reconciliation of non-GAAP financial measures

The financial data contained in this press release and supplemental information includes non-GAAP (generally accepted accounting principles (GAAP)) financial measures as defined in Regulation G under the Securities Exchange Act of 1934, including Adjusted EBITDA, Adjusted EBITDA margin, Segment Adjusted EBITDA, Segment Adjusted EBITDA Margin, Adjusted EPS, and Adjusted free cash flow. For 2025, the Company has modified its methodology of calculating Adjusted free cash flow to exclude the impact of unusual or nonrecurring items on cash income taxes and changes in working capital. The change was made to conform to the Adjusted free cash flow measure with the current definition used by management and the Board of Directors to manage cash flow and evaluate performance. Prior periods presented herein have been recast to conform with the new methodology.

The Company believes the non-GAAP financial measures are useful to investors because they facilitate evaluation of core business operating results over multiple periods unaffected by differences in unusual or nonrecurring items. See “Supplemental Non-GAAP Information” for reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. Additionally, our Form 10-Q for the three and six months ended June 30, 2025, provides further information regarding “unusual or nonrecurring items that are not typical of ongoing operations,” a reconciliation item in our Adjusted EBITDA and Segment Adjusted EBITDA calculations. Such non-GAAP financial measures exclude significant components in understanding and assessing financial performance and should therefore not be considered superior to, as a substitute for or alternative to the GAAP financial measures presented in this press release. The non-GAAP financial measures in the press release may differ from similar measures used by other companies.

The Company is unable to reconcile the guidance for Adjusted EBITDA and Adjusted EPS to their corresponding GAAP measures without unreasonable effort due to the inherent difficulty in predicting, with reasonable certainty, the future impact of items that are outside the control of the Company or otherwise non-indicative of its ongoing operating performance. Accordingly, the Company relies on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K. Such items include, but are not limited to, gains or losses related to hedging instruments; loss on early extinguishment of debt; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); items related to corporate and facility restructurings; and professional fees and other costs or income related to items the Company believes to not be indicative of its ongoing operations. For the same reasons, the Company is unable to address the probable significance of the unavailable information.

Note regarding presentation of same-store comparisons

The Company uses “same-store” comparisons to explain the changes in certain performance metrics and line items within its financial statements. Same-store comparisons are calculated based on home health and hospice locations open throughout both the full current period and the immediately prior period presented. These comparisons include the financial results of market consolidation transactions in existing markets, as it is difficult to determine, with precision, the incremental impact of these transactions on the Company’s results of operations.

FORWARD-LOOKING STATEMENTS

This press release contains historical information, as well as forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that involve known and unknown risks and relate to, among other things, future events, projections, financial guidance, legislative or regulatory developments, strategy or growth opportunities, our future financial performance, our projected business results, or our projected capital expenditures. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, the reader can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “targets,” “potential,” or “continue” or the negative of these terms or other comparable terminology. Any forward-looking statement speaks only as of the date of this presentation, and the Company undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties, many of which are beyond our control. Actual events or results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by the Company include, but are not limited to, our ability to execute on our strategic plans; regulatory and other developments impacting the markets for our services; changes in reimbursement rates; general economic conditions; changes in the episodic versus non-episodic mix of our payers, the case mix of our patients, and payment methodologies; our ability to attract and retain key management personnel and healthcare professionals; potential disruptions or breaches of our or our vendors’, payers’, and other contract counterparties’ information systems; the outcome of litigation; quality performance and ratings; our ability to successfully complete and integrate de novo locations, acquisitions, investments, and joint ventures; our ability to successfully integrate technology in our operations; and our ability to control costs, particularly labor and employee benefit costs. Additional information regarding risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this release are described in reports filed with the SEC, including our annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, copies of which are available on the Company’s website at http://investors.ehab.com.

Contacts

Investor relations contact


Bob Okunski
[email protected]
469-860-6061

Media contact


Erin Volbeda
[email protected]
972-338-5141