Addus HomeCare

Management has executed a disciplined roll-up strategy: Gentiva personal care in December 2024 to expand scale, followed by 2025 tuck-ins and HomeCourt Home Care on May 1, 2026. The June 2024 equity raise prudently funded growth while keeping leverage contained. 2025 operating cash flow was 111.5 million dollars with roughly 7.7 million dollars of capex, highlighting strong reinvestable cash.

Stock-based compensation at 16.4 million dollars in 2025 is material but acceptable for a services consolidator; share count has risen modestly due to equity financing and awards.

We see M&A returns as attractive given integration track record, state selection, and SG&A leverage, with attention to payer and labor dynamics in acquired markets.