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Jun 30, 2025
Enhabit Q2 2025 Earnings Report
Enhabit reported strong second quarter 2025 financial results, with sequential and year-over-year growth in revenue and Adjusted EBITDA, driven by growth in both home health and hospice segments, and increased full-year 2025 guidance.
Key Takeaways
Enhabit, Inc. delivered a strong second quarter in 2025, with total net service revenue reaching $266.1 million, a 2.1% increase year-over-year. The company reported a net income of $5.2 million and an Adjusted EBITDA of $26.9 million, reflecting robust operational execution and strategic initiatives. Both home health and hospice segments contributed to this growth, with hospice showing particularly strong performance with a 19.4% increase in net service revenue and a 53.8% increase in Adjusted EBITDA.
Net service revenue increased to $266.1 million, up 2.1% year-over-year, demonstrating consistent growth.
Adjusted EBITDA grew 6.7% year-over-year to $26.9 million, indicating improved profitability.
Hospice segment showed significant strength with a 19.4% increase in net service revenue and a 53.8% increase in Adjusted EBITDA year-over-year.
The company strengthened its balance sheet by reducing bank debt by $10.0 million in the quarter and increased its full-year 2025 guidance for revenue, Adjusted EBITDA, and Adjusted EPS.
Revenue by Segment
Forward Guidance
Enhabit has updated its full-year 2025 guidance, increasing projections for Net Service Revenue, Adjusted EBITDA, and Adjusted EPS, reflecting confidence in continued strong performance.
Positive Outlook
- Increased full-year 2025 Net Service Revenue guidance to $1,060 million to $1,073 million, up from $1,050 million to $1,080 million.
- Raised full-year 2025 Adjusted EBITDA guidance to $104 million to $108 million, up from $101 million to $107 million.
- Increased full-year 2025 Adjusted EPS guidance to $0.47 to $0.55, up from $0.41 to $0.51.
- The company's consistent de-levering of its balance sheet, with $45 million in debt prepayments since Q1 2024, is expected to lower interest expense.
- Continued focus on strategic priorities, including payer contract initiatives and de novo location openings, is expected to drive future growth.
Challenges Ahead
- The company did not provide specific negative forward-looking guidance in the report.
- Future results may differ materially due to regulatory and other developments impacting the markets for services.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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