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Jun 30
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.
Enhabit
Enhabit
Enhabit Revenue by Segment
Revenue by Segment
Home Health Net Service Revenue
CapyFin.comHospice Net Service Revenue
CapyFin.com 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.
- Changes in reimbursement rates could negatively impact financial performance.
- Ability to attract and retain key management personnel and healthcare professionals remains a risk.
- Potential disruptions or breaches of information systems could affect operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income