DALLAS--(BUSINESS WIRE)--March 04, 2026--
Enhabit, Inc. (NYSE: EHAB), a leading home health and hospice care provider, today reported its results of operations for the fourth quarter ended Dec. 31, 2025.
"Our fourth quarter 2025 results capped a pivotal year for Enhabit, delivering an emerging growth story with year over year increases in patient census, revenue and Adjusted EBITDA," said Barb Jacobsmeyer, CEO and president of Enhabit. "The consistent execution of our strategy throughout the year materially improved free cash flow, enabling us to further strengthen our balance sheet, positioning us well to accelerate growth and investment in 2026."
QUARTERLY PERFORMANCE - CONSOLIDATED
-- Net service revenue of $270.4 million -- Net loss attributable to Enhabit, Inc. of $38.7 million -- Adjusted EBITDA of $28.0 million -- Diluted loss per share of $0.76 -- Adjusted diluted earnings per share of $0.14
RECENT COMPANY HIGHLIGHTS
-- Announced entry into a definitive agreement (the "Merger Agreement") to
be acquired by Kinderhook Industries, LLC ("Kinderhook") for $13.80 per
share.
-- On Feb. 26, 2026, the company entered into an amended and restated
credit agreement with a maturity date of February 2031 that consists of a
$315.0 million senior secured term loan A facility and a $160.0 million
senior secured revolving credit facility.
-- Home health year-over-year admissions growth of 7.3% with non-Medicare
admissions growth of 16.0%; 8.1% total admission growth when normalized
for branches closed in 2025.
-- Home health average daily census $(ADC)$ growth of 6.4% compared to prior
year; continued stabilization of Medicare ADC decline, down 4.0% year
over year and 1.7% sequentially.
-- Home health cost per patient day decreased 3.5% year over year.
-- Hospice ADC grew 9.9% year over year.
-- ADC increased sequentially every quarter since Q1 2024.
-- Hospice admissions increased 0.8% year over year; 3% when normalized
for branches closed in 2025.
-- Hospice net service revenue of $63.6 million; Adjusted EBITDA increased
2.3% year over year.
-- Hospice cost per patient day increased 0.6% year over year.
-- Total net service revenue of $270.4 million; consolidated Adjusted
EBITDA grew 11.6% year over year and 3.7% sequentially to $28.0 million.
-- Opened four de novo locations in Q4 2025; 10 total de novo locations in
2025.
-- Consistent de-levering of balance sheet with the eighth straight
quarter of debt prepayment, inclusive of an additional $20.0 million
prepayment made in Q1 of 2026.
-- $125.0 million reduction in total bank debt from Q4 2023
resulting in an annualized $22 million cash interest savings.
-- Reduced bank debt by $15.0 million in the fourth quarter,
yielding a leverage ratio of 3.7x.
TRANSACTION WITH KINDERHOOK
As previously announced on Feb. 23, 2026, Enhabit has entered into the Merger Agreement to be acquired by Kinderhook, a middle-market private equity firm, for $13.80 per share in cash, or a total enterprise value of approximately $1.1 billion (the "Merger"). The Merger is expected to close in the second quarter of 2026, subject to stockholder approval and other customary closing conditions.
As previously disclosed, given the pending Merger, Enhabit will not be hosting an earnings conference call, and is suspending its practice of providing financial guidance.
FINANCIAL RESULTS
Consolidated
Q4
---------------- -----
($ in millions,
except per share '25 vs.
data) 2025 2024 '24
---------------- ---------------------- ---------------------- ----------
Home health net
service
revenue $ 206.8 $ 200.4 3.2%
---------------- ----------- ----- ----------- ----- -----
Hospice net
service
revenue 63.6 57.8 10.0%
---------------- ----------- ----- ----------- ----- -----
Total net
service
revenue $ 270.4 $ 258.2 4.7%
---------------- ----------- ----- ----------- ----- -----
% of % of
revenue revenue
---------------- ---------- ---------- ---------- ---------- ----------
Cost of service 51.3% $138.7 51.5% $133.1 4.2%
---------------- ---- --- ----- ---- --- ----- -----
Gross margin 48.7% 131.7 48.5% 125.1 5.3%
---------------- ---- --- ----- ---- --- ----- -----
General and
administrative
expenses 38.2% 103.2 38.7% 99.8 3.4%
---------------- ---- --- ----- ---- --- ----- -----
Total
operating
expenses 89.5% $241.9 90.2% $232.9 3.9%
---------------- ---- --- ----- ---- --- ----- -----
Other income (0.1) --
---------------- ----------- ----- ----------- ----- ----------
Net income
attributable to
noncontrolling
interests $ 0.4 $ 0.2
---------------- ----------- ----- ----------- ----- ----------
Adjusted
EBITDA(1) $ 28.0 $ 25.1 11.6%
---------------- ----------- ----- ----------- ----- -----
Adjusted
EBITDA
margin(1) 10.4% 9.7%
---------------- ----------- ----- ----------- ----- ----------
Impairment of
goodwill $ 44.7 $ 53.8 (16.9)%
---------------- ----------- ----- ----------- ----- -----
Net income
(loss)
attributable to
Enhabit, Inc. $ (38.7) $ (46.0) 15.9%
---------------- ----------- ----- ----------- ----- -----
Reported diluted
EPS $ (0.76) $ (0.92) (17.4)%
---------------- ----------- ----- ----------- ----- -----
Adjusted diluted
EPS(1) $ 0.14 $ 0.04 250.0%
---------------- ----------- ----- ----------- ----- -----
General and administrative expenses in the above table exclude:
----------------------------------------------------------------------------
Loss (gain) on
disposal of
assets $ 0.1 $ (0.2)
---------------- ----------- ----- ----------- ----- ----------
Stock-based
compensation
expense $ 6.8 $ 3.9
---------------- ----------- ----- ----------- ----- ----------
Unusual or
nonrecurring
items that are
not typical of
ongoing
operations(2) $ 1.1 $ 1.1
---------------- ----------- ----- ----------- ----- ----------
(1) See reconciliation of GAAP to Non-GAAP measures.
(2) Unusual or nonrecurring items in the three months ended December 31,
2025 include costs associated with restructuring activities and severance,
nonroutine litigation and third-party legal and advisory fees related to
shareholder, non-shareholder and other matters, and merger and acquisition
activities; in the three months ended December 31, 2024, they include costs
associated with nonroutine litigation and severance.
SEGMENT RESULTS
Home health
Q4
----------------------------- ------
($ in millions) 2025 2024 '25 vs. '24
----------------------------- -------------- -------------- -----------
Net service revenue:
----------------------------- -------------- -------------- -----------
Medicare $ 111.6 $ 117.3 (4.9)%
----------------------------- --------- --------- ------
Non-Medicare 93.4 80.8 15.6%
----------------------------- --------- --------- ------
Private duty(1) 1.8 2.3 (21.7)%
----------------------------- --------- --------- ------
Home health net service
revenue 206.8 200.4 3.2%
----------------------------- --------- --------- ------
Cost of service 108.2 105.5 2.6%
----------------------------- --------- --------- ------
Gross margin 47.7% 47.4%
----------------------------- --------- --------- -----------
General and administrative
expenses 61.3 59.1 3.7%
----------------------------- --------- --------- ------
Net income attributable to
noncontrolling interests 0.3 0.3 --%
----------------------------- --------- --------- ------
Segment Adjusted EBITDA(2) $ 37.0 $ 35.5 4.2%
----------------------------- --------- --------- ------
Segment Adjusted EBITDA
margin(2) 17.9% 17.7%
----------------------------- --------- --------- -----------
Operational metrics (actual
amounts)
----------------------------- -------------------------------------------
Medicare:
----------------------------- -------------- -------------- -----------
Admissions 22,196 23,121 (4.0)%
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