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Sep 30, 2025
Enhabit Q3 2025 Earnings Report
Enhabit reported its financial results for the third quarter ended September 30, 2025, showing year-over-year growth in revenue, census, and Adjusted EBITDA.
Key Takeaways
Enhabit delivered a strong third quarter in 2025, with consolidated net service revenue reaching $263.6 million, a 3.9% increase year-over-year. The company achieved a net income of $11.1 million and an Adjusted EBITDA of $27.0 million, reflecting effective execution of strategic priorities and continued balance sheet strengthening through debt reduction.
Net service revenue increased by 3.9% year-over-year to $263.6 million.
Adjusted EBITDA grew by 10.2% year-over-year to $27.0 million, with an Adjusted EBITDA margin of 10.2%.
Home health admissions increased by 3.6% year-over-year, driven by a 10.4% rise in non-Medicare admissions.
Hospice average daily census (ADC) grew significantly by 12.6% year-over-year, with a 20.0% increase in net service revenue for the segment.
Revenue by Segment
Forward Guidance
Enhabit has updated its full-year 2025 guidance, projecting net service revenue between $1,058 million and $1,063 million, Adjusted EBITDA between $106 million and $109 million, and Adjusted EPS between $0.50 and $0.56.
Positive Outlook
- Updated guidance for 2025 shows an increase in the lower bound for Net Service Revenue compared to previous guidance.
- Adjusted EBITDA guidance for 2025 has been raised, indicating stronger expected profitability.
- Adjusted EPS guidance for 2025 has also been increased, suggesting improved earnings per share.
- The company's consistent de-levering of the balance sheet, with the seventh straight quarter of debt prepayment, is a positive indicator for financial health.
- A $100.0 million reduction in total bank debt from Q4 2023 is expected to result in an annualized $19.2 million cash interest savings.
Challenges Ahead
- The updated guidance for Net Service Revenue has a slightly lower upper bound compared to previous guidance, indicating a potential cap on revenue growth.
- The company's ability to execute on strategic plans and manage regulatory developments remains a risk.
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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