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Sep 30
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.
Enhabit
Enhabit
Enhabit Revenue by Segment
Revenue by Segment
Home Health Net Service Revenue
CapyFin.comHospice Net Service Revenue
CapyFin.comMedicare Home Health Revenue
CapyFin.comNon-Medicare Home Health Revenue
CapyFin.comPrivate Duty Home Health Revenue
CapyFin.com 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.
- Changes in reimbursement rates, payer mix, and patient case mix could negatively impact financial performance.
- The ability to attract and retain key management personnel and healthcare professionals is crucial and presents an ongoing challenge.
- Potential disruptions or breaches of information systems could pose operational and financial risks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income