Addus HomeCare

Revenue is predominantly recurring and hours-based, with reimbursement visibility and stable payer flows across states and managed care. Q1 2026 net service revenue grew 7.7 percent year on year, and TTM operating margins have trended around 9 to 10 percent, producing steady free cash conversion.

Diversification across 24 states and three segments enhances stability, though regulatory and payer changes can introduce step-changes. Hospice trends improved in 2025, and management continues to emphasize organic growth and selective acquisitions.

We view long-term demand visibility as high given aging demographics and policy preference for HCBS, offset by periodic reimbursement resets.