Loading...
•
Sep 30, 2025
HCSG Q3 2025 Earnings Report
HCSG reported higher revenue, earnings, and cash flow in Q3 2025, boosted by a one-time benefit from the Employee Retention Credit.
Key Takeaways
HCSG exceeded expectations in Q3 2025, with strong growth in revenue and profitability, aided by ERC-related benefits and solid operational performance across both service segments.
Revenue rose to $464.3M, supported by strong performance across both Environmental and Dietary segments.
Net income reached $43.0M with a $0.59 EPS, including a $0.36 benefit from the ERC.
Cash flow from operations increased to $71.3M, or $87.1M excluding payroll accrual changes.
Adjusted EBITDA more than doubled YoY to $56.4M, representing 12.1% of revenue.
Revenue by Segment
Forward Guidance
HCSG is confident in sustaining growth through operational execution and cost management, while continuing to pursue strategic priorities.
Positive Outlook
- Strong cash collections and healthy balance sheet.
- Consistent segment-level margins despite external pressures.
- Operational improvements driving revenue growth.
- High client retention and new wins fueling topline expansion.
- Focus on long-term SG&A optimization targets.
Challenges Ahead
- Ongoing cost pressures in labor and materials.
- Dependence on one-time ERC benefit in current quarter results.
- Risks from client restructuring and delayed payments.
- Exposure to regulatory changes in healthcare sector.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...