-- Second Quarter Revenue was $670.5 million, a 13.7% increase over the
prior year period
-- Second Quarter Net income was $40.3 million compared to $27.0 million for
the prior year period
-- Adjusted EBITDA for Q2 2026 was $95.4 million, an 8.0% increase over the
prior year period
-- Increased Full Year 2026 Revenue guidance to greater than $2.68 billion,
updated from between $2.63 and $2.65 billion
-- Increased Full Year 2026 Adjusted EBITDA guidance to greater than
$365 million, updated from between $338 and $342 million
ATLANTA, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Aveanna Healthcare Holdings Inc. (NASDAQ: AVAH), a leading, diversified home care platform focused on providing care to medically complex, high-cost patient populations, today announced financial results for the three and six-month periods ended July 4, 2026.
Jeff Shaner, Chief Executive Officer, commented, "Our second quarter results demonstrate the momentum across Aveanna and our ability to consistently deliver sustained year-over-year growth. Revenue and Adjusted EBITDA increased 13.7% and 8.0%, respectively, compared to the prior-year period, reflecting our strong organic growth across all three business segments. Our results reinforce the strength of our operating model, the continued success of our Preferred Payor and Government Affairs strategies, and the dedication of our team to deliver exceptional care to patients and families. Given our performance in the first half of the year and confidence in our outlook, we are pleased to raise our 2026 revenue and Adjusted EBITDA guidance."
Three-Month Periods Ended July 4, 2026 and June 28, 2025
Revenue was $670.5 million for the three-month period ended July 4, 2026, as compared to $589.6 million for the three-month period ended June 28, 2025, an increase of $80.9 million, or 13.7%. The overall increase in revenue was attributable to a $67.9 million increase in PDS segment revenue, an $8.9 million increase in HHH segment revenue, and a $4.1 million increase in MS segment revenue compared to the second quarter of 2025.
Gross margin was $218.5 million, or 32.6% of revenue, for the three-month period ended July 4, 2026, as compared to $210.8 million, or 35.8% of revenue, for the three-month period ended June 28, 2025, an increase of $7.7 million, or 3.7%.
Net income was $40.3 million or 6.0% of revenue, for the three-month period ended July 4, 2026, as compared to net income of $27.0 million, or 4.6% of revenue for the three-month period ended June 28, 2025. Net income per diluted share was $0.18 for the three-month period ended July 4, 2026, as compared to net income per diluted share of $0.13 for the three-month period ended June 28, 2025. Adjusted net income per diluted share was $0.22 for the three-month period ended July 4, 2026, as compared to adjusted net income per diluted share of $0.18 for the three-month period ended June 28, 2025. See "Non-GAAP Financial Measures - Adjusted net income and Adjusted net income per diluted share" below.
Adjusted EBITDA was $95.4 million, or 14.2% of revenue, for the three-month period ended July 4, 2026, as compared to $88.4 million, or 15.0% of revenue, for the three-month period ended June 28, 2025, an increase of $7.1 million or 8.0%. See "Non-GAAP Financial Measures - EBITDA and Adjusted EBITDA" below.
Six-Month Periods Ended July 4, 2026 and June 28, 2025
Revenue was $1,318.4 million for the six-month period ended July 4, 2026, as compared to $1,148.8 million for the six-month period ended June 28, 2025, an increase of $169.6 million, or 14.8%. The overall increase in revenue was attributable to a $143.6 million increase in PDS segment revenue, an $18.8 million increase in HHH segment revenue, and a $7.3 million increase in MS segment revenue compared to the first six months of 2025.
Gross margin was $424.0 million, or 32.2% of revenue, for the six-month period ended July 4, 2026, as compared to $394.4 million, or 34.3% of revenue, for the six-month period ended June 28, 2025, an increase of $29.6 million, or 7.5%.
Net income was $81.9 million or 6.2% of revenue for the six-month period ended July 4, 2026, as compared to net income of $32.2 million or 2.8% of revenue for the six-month period ended June 28, 2025. Net income per diluted share was $0.37 for the six-month period ended July 4, 2026, as compared to net income per diluted share of $0.16 for the six-month period ended June 28, 2025. Adjusted net income per diluted share was $0.40 for the six-month period ended July 4, 2026, as compared to adjusted net income per diluted share of $0.28 for the six-month period ended June 28, 2025. See "Non-GAAP Financial Measures - Adjusted net income and Adjusted net income per diluted share" below.
Adjusted EBITDA was $179.8 million, or 13.6% of revenue, for the six-month period ended July 4, 2026, as compared to $155.7 million, or 13.6% of revenue, for the six-month period ended June 28, 2025, an increase of $24.1 million or 15.4%. See "Non-GAAP Financial Measures - EBITDA and Adjusted EBITDA" below.
Liquidity, Cash Flow, and Debt
-- As of July 4, 2026, we had cash of $97.2 million and incremental
borrowing capacity of $110.0 million under our securitization facility.
Our revolver was undrawn, with approximately $225.5 million of borrowing
capacity and approximately $24.5 million of outstanding letters of
credit.
-- Net cash provided by operating activities was $85.3 million for the
six-month period ended July 4, 2026. Free cash flow was $75.4 million for
the six-month period ended July 4, 2026. See "Non-GAAP Financial Measures
- Free cash flow" below.
-- As of July 4, 2026 we had total indebtedness of $1,483.4 million. Our
interest rate exposure under our credit facilities is currently hedged
with the following instruments:
-- $520.0 million notional amount of interest rate caps that cap our
exposure to SOFR at 4.00%, and
-- $880.0 million notional amount of interest rate caps that cap our
exposure to SOFR at 2.96%.
Matt Buckhalter, Chief Financial Officer, commented "Aveanna's second quarter results continued our momentum with our team executing at a high level across all three divisions. During the quarter, we delivered revenue of $670.5 million and Adjusted EBITDA of $95.4 million. These results, combined with the acquisition of Family First and the successful repricing of our credit facility demonstrate the strength of our platform and our commitment to sustainable growth while delivering high-quality care to the patients and families we serve. Our increased 2026 guidance, including revenue of greater than $2.68 billion and Adjusted EBITDA of greater than $365 million, underscores the strength of our business model and the opportunities ahead as we continue to execute on our strategic initiatives."
Full Year 2026 Guidance
The following is our guidance reflecting our increased expectations for revenue and Adjusted EBITDA for the full fiscal year 2026 (year ending January 2, 2027):
-- Revenue of greater than $2.68 billion, updated from between $2.63 and
$2.65 billion.
Consistent with prior practice, we are not providing guidance on net income at this time due to the volatility of certain required inputs that are not available without unreasonable efforts, including future fair value adjustments associated with our interest rate caps.
-- Adjusted EBITDA of greater than $365 million, updated from between $338
and $342 million.
Non-GAAP Financial Measures
In addition to our results of operations prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), we also evaluate our financial performance using EBITDA, Adjusted EBITDA, Field contribution, Field contribution margin, Adjusted net income or loss, Adjusted net income or loss per diluted share, and Free cash flow. Given our determination of adjustments in arriving at our computations, these non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as substitutes or alternatives to net income or loss, revenue, operating income or loss, cash flows from operating activities, total indebtedness, gross margin, gross margin percentage or any other financial measures calculated in accordance with GAAP. The reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures are included in the financial tables below.
EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are non-GAAP financial measures and are not intended to replace financial performance measures determined in accordance with GAAP, such as net income or loss. Rather, we present EBITDA and Adjusted EBITDA as supplemental measures of our performance. We define EBITDA as net income or loss before interest expense, net; income tax expense or benefit; and depreciation and amortization. We define Adjusted EBITDA as EBITDA, adjusted for the impact of certain other items that are either non-recurring, infrequent, non-cash, unusual, or items deemed by management to not be indicative of the performance of our core operations, including impairments of goodwill, intangible assets, and other long-lived assets; non-cash, share-based compensation and associated employer payroll taxes; loss on extinguishment of debt; fees related to debt modifications; the effect of interest rate derivatives; acquisition-related and integration costs; legal costs and settlements associated with acquisition matters; restructuring costs; other legal matters; and other system transition costs, professional fees and other costs. As non-GAAP financial measures, our computations of EBITDA and Adjusted EBITDA may vary from similarly termed non-GAAP financial measures used by other companies, making comparisons with other companies on the basis of this measure impracticable.
We believe our computations of EBITDA and Adjusted EBITDA are helpful in highlighting trends in our core operating performance. In determining which adjustments are made to arrive at EBITDA and Adjusted EBITDA, we consider both (1) certain non-recurring, infrequent, non-cash or unusual items, which can vary significantly from year to year, as well as (2) certain other items that may be recurring, frequent, or settled in cash but which we do not believe are indicative of our core operating performance. We use EBITDA and Adjusted EBITDA to assess operating performance and make business decisions.
We have incurred substantial acquisition-related costs and integration costs. The underlying acquisition activities take place over a defined timeframe, have distinct project timelines and are incremental to activities and costs that arise in the ordinary course of our business. Therefore, we believe it is important to exclude these costs from our Adjusted EBITDA because it provides us a normalized view of our core, ongoing operations after integrating our acquired companies, which we believe is an important measure in assessing our performance.
Field contribution and Field contribution margin
Field contribution and Field contribution margin are non-GAAP financial measures and are not intended to replace financial performance measures determined in accordance with GAAP, such as gross margin and gross margin percentage. Rather, we present Field contribution and Field contribution margin as supplemental measures of our performance. We define Field contribution as gross margin less branch and regional administrative expenses. Field contribution margin is Field contribution as a percentage of revenue. As non-GAAP financial measures, our computations of Field contribution and Field contribution margin may vary from similarly termed non-GAAP financial measures used by other companies, making comparisons with other companies on the basis of these measures impracticable.
Field contribution and Field contribution margin have limitations as analytical tools and should not be considered in isolation or as substitutes or alternatives to gross margin, gross margin percentage, net income or loss, revenue, operating income or loss, cash flows from operating activities, total indebtedness or any other financial measures calculated in accordance with GAAP.
Management believes Field contribution and Field contribution margin are helpful in highlighting trends in our core operating performance and evaluating trends in our branch and regional results, which can vary from year to year. We use Field contribution and Field contribution margin to make business decisions and assess the operating performance and results delivered by our core field operations, prior to corporate and other costs not directly related to our field operations. These metrics are also important because they guide us in determining whether or not our branch and regional administrative expenses are appropriately sized to support our caregivers and direct patient care operations. Additionally, Field contribution and Field contribution margin determine how effective we are in managing our field supervisory and administrative costs associated with supporting our provision of services and sale of products.
Adjusted net income and Adjusted net income per diluted share
Adjusted net income represents net income as adjusted for the impact of GAAP income tax, goodwill, intangible and other long-lived asset impairment charges, non-cash share-based compensation expense, loss on extinguishment of debt, fees related to debt modifications; interest rate derivatives, acquisition-related costs, integration costs, legal costs, restructuring costs, other legal matters, other system transition costs, professional fees and certain other miscellaneous items on a pre-tax basis. Adjusted net income includes a provision for income taxes derived utilizing a combined statutory tax rate. The combined statutory tax rate is our estimate of our long-term tax rate. The most comparable GAAP measure is net income.
Adjusted net income per diluted share represents adjusted net income on a per diluted share basis using the weighted-average number of diluted shares outstanding for the period. The most comparable GAAP measure is net income per share, diluted.
Adjusted net income and adjusted net income per diluted share are important to us because they allow us to assess financial results, exclusive of the items mentioned above that are not operational in nature or comparable to those of our competitors.
Free cash flow
Free cash flow is a liquidity measure that represents operating cash flow, adjusted for the impact of purchases of property, equipment and software, proceeds from issuance of term loans, net of debt issuance costs, principal payments on term loans, notes payable and financing leases, and settlements with swap counterparties. The most comparable GAAP measure is cash flow from operations.
We believe free cash flow is helpful in highlighting the cash generated or used by the Company, after taking into consideration mandatory payments on term loans, notes payable and financing leases, as well as cash needed for non-acquisition related capital expenditures, and cash paid to or received from derivative counterparties.
Conference Call
Aveanna will host a conference call on Thursday, August 13, 2026, at 10:00 a.m. Eastern Time to discuss our second quarter results. The conference call can be accessed live over the phone by dialing 1-877-407-0789, or for international callers, 1-201-689-8562. A telephonic replay of the conference call will be available until August 20, 2026, by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the live call and the replay is 13760758. A live webcast of our conference call will also be available under the Investor Relations section of our website: https://ir.aveanna.com/. The online replay will also be available for one week following the call.
Forward-Looking Statements
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements (other than statements of historical facts) in this press release regarding our prospects, plans, financial position, business strategy and expected financial and operational results may constitute forward-looking statements. Forward-looking statements generally can be identified by the use of terminology such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "should," "would," "predict," "project," "potential," "continue," "could," "design," "guidance," or the negatives of these terms or variations of them or similar expressions. These statements are based on certain assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate in these circumstances. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. Forward-looking statements involve a number of risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements, such as intense competition among home health, hospice and durable medical equipment companies; our ability to maintain relationships with existing patient referral sources; our ability to have services funded from third-party payers, including Medicare, Medicaid and private health insurance companies, including as a result of changes to Medicaid to be implemented under the One Big Beautiful Bill Act; changes to Medicare or Medicaid rates or methods governing Medicare or Medicaid payments, and the implementation of alternative payment models, including but not limited to Medicare Advantage, Managed Care Organization, managed Medicaid, and other forms of managed care; any downward pressure on reimbursement resulting from further proliferation of Medicare Advantage plans; our limited ability to control reimbursement rates received for our services; delays in collection or non-collection of our patient accounts receivable, particularly during the business integration process, or when transitioning between systems associated with clinical data collection and submission, as well as billing and collection systems; healthcare reform and other regulations, including risks related to the proposed rule issued for the home health prospective payment system by Centers for Medicare & Medicaid Services; changes in the case-mix of our patients, as well as payer mix and payment methodologies; any reduction in net reimbursement if we do not effectively implement value-based care programs; the possibility that our business, financial condition and results of operations may be materially adversely affected by public health emergencies, such as a pandemic or other infectious disease outbreak; shortages in qualified employees and management and competition for qualified personnel; any failure to maintain the security and functionality of our information systems or to defend against or otherwise prevent a cybersecurity attack or breach; our substantial indebtedness, which increases our vulnerability to general adverse economic and industry conditions and may limit our ability to pursue strategic alternatives and react to changes in our business and industry; our ability to identify, obtain financing for, acquire and integrate strategic and accretive businesses or assets; risks related to legal proceedings, claims and governmental inquiries given that the nature of our business exposes us to various liability claims, which may exceed the level of our insurance coverage, and other risks set forth under the heading "Risk Factors" in Aveanna's Annual Report on Form 10-K for its 2025 fiscal year filed with the Securities and Exchange Commission
on March 19, 2026, which is available at www.sec.gov. In addition, these forward-looking statements necessarily depend upon assumptions, estimates and dates that may prove to be incorrect or imprecise. Accordingly, forward-looking statements included in this press release do not purport to be predictions of future events or circumstances, and actual results may differ materially from those expressed by forward-looking statements. All forward-looking statements speak only as of the date made, and Aveanna undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About Aveanna Healthcare
Aveanna Healthcare is headquartered in Atlanta, Georgia and has locations in 39 states providing a broad range of pediatric and adult healthcare services, primarily focused on care in the home, including nursing, hospice, rehabilitation, occupational nursing in schools, therapy, and day treatment center services for medically complex and chronically ill children and adults, as well as delivery of enteral nutrition and other products to patients. In addition, the Company provides respite healthcare services, which are temporary care provider services provided in relief of the patient's normal caregiver. The Company's services are designed to provide a high quality, lower cost alternative to prolonged hospitalization. For more information, please visit www.aveanna.com.
Cash Flow and Information about Indebtedness
The following table sets forth a summary of our cash flows from operating, investing, and financing activities for the periods presented:
For the six-month periods ended
-----------------------------------------
(dollars in thousands) July 4, 2026 June 28, 2025
-------------------- ---------------
Net cash provided by operating
activities $ 85,277 $ 42,937
Net cash used in investing
activities $ (179,924) $ (18,330)
Net cash used in financing
activities $ (1,417) $ (8,157)
Cash and cash equivalents at
beginning of period $ 193,260 $ 84,288
Cash and cash equivalents at
end of period $ 97,196 $ 100,738
The following table presents our long-term indebtedness as of July 4, 2026:
(dollars in thousands)
Instrument Interest Rate July 4, 2026
-------------- --------------
2026 Term Loans (1) S + 3.00% $ 1,318,375
2026 Refinancing Revolving Credit
Facility (1) S + 3.00% -
Securitization Facility (1) S + 2.50% 165,000
----------
Total indebtedness $ 1,483,375
(1) S = One-month SOFR
Results of Operations
The following table summarizes our consolidated results of operations for the periods indicated (amounts in thousands, except per share data):
For the three-month For the six-month
periods ended periods ended
----------------------- -----------------------
July 4, June 28, July 4, June 28,
2026 2025 2026 2025
-------- ------------ ---------- ----------
Revenue $670,483 $ 589,553 $1,318,398 $1,148,777
Cost of revenue,
excluding
depreciation and
amortization 451,958 378,753 894,445 754,419
Branch and regional
administrative
expenses 97,079 90,069 192,871 181,456
Corporate expenses 34,083 34,529 68,239 72,034
Depreciation and
amortization 2,849 2,617 5,893 5,211
Acquisition-related
costs 4,390 3,400 7,500 3,506
Other operating
expense 144 151 144 316
------- ----------- --------- ---------
Operating income 79,980 80,034 149,306 131,835
Interest income 1,259 129 2,917 261
Interest expense (27,776) (36,003) (56,934) (72,338)
Other income
(expense) 3,010 (22) 6,159 (5,472)
------- ----------- --------- ---------
Income before income
taxes 56,473 44,138 101,448 54,286
Income tax expense (16,180) (17,113) (19,502) (22,068)
------- ----------- --------- ---------
Net income $ 40,293 $ 27,025 $ 81,946 $ 32,218
======= =========== ========= =========
Net income per
share:
Net income per
share, basic $ 0.19 $ 0.13 $ 0.38 $ 0.16
======= =========== ========= =========
Weighted average
shares of common
stock outstanding,
basic 217,799 200,968 216,197 197,819
======= =========== ========= =========
Net income per
share, diluted $ 0.18 $ 0.13 $ 0.37 $ 0.16
======= =========== ========= =========
Weighted average
shares of common
stock outstanding,
diluted 224,864 210,442 223,482 206,763
======= =========== ========= =========
The following tables summarize our consolidated key performance measures, including Field contribution and Field contribution margin, which are non-GAAP measures, for the periods indicated:
For the three-month periods ended
----------------------------------------------
July 4, June 28,
(dollars in thousands) 2026 2025 Change % Change
-------- -------- ------- --------
Revenue $670,483 $589,553 $80,930 13.7%
Cost of revenue,
excluding depreciation
and amortization 451,958 378,753 73,205 19.3%
------- ------- ------
Gross margin $218,525 $210,800 $ 7,725 3.7%
Gross margin
percentage 32.6% 35.8% -3.2% (1)
Branch and regional
administrative
expenses 97,079 90,069 7,010 7.8%
------- ------- ------
Field contribution $121,446 $120,731 $ 715 0.6%
Field contribution
margin 18.1% 20.5%
Corporate expenses $ 34,083 $ 34,529 $ (446) -1.3%
As a percentage of
revenue 5.1% 5.9%
Operating income $ 79,980 $ 80,034 $ (54) -0.1%
As a percentage of
revenue 11.9% 13.6%
For the six-month periods ended
---------------------------------------------------
July 4, June 28,
(dollars in thousands) 2026 2025 Change % Change
---------- ---------- -------- --------
Revenue $1,318,398 $1,148,777 $169,621 14.8%
Cost of revenue,
excluding depreciation
and amortization 894,445 754,419 140,026 18.6%
--------- --------- -------
Gross margin $ 423,953 $ 394,358 $ 29,595 7.5%
Gross margin
percentage 32.2% 34.3% -2.1% (1)
Branch and regional
administrative
expenses 192,871 181,456 11,415 6.3%
--------- --------- -------
Field contribution $ 231,082 $ 212,902 $ 18,180 8.5%
Field contribution
margin 17.5% 18.5%
Corporate expenses $ 68,239 $ 72,034 $ (3,795) -5.3%
As a percentage of
revenue 5.2% 6.3%
Operating income $ 149,306 $ 131,835 $ 17,471 13.3%
As a percentage of
revenue 11.3% 11.5%
(1) Represents the change in margin percentage year over
year (or quarter over quarter).
The following tables summarize our key performance measures by segment for the periods indicated:
PDS
----------------------------------------------
For the three-month periods ended
----------------------------------------------
July 4, June 28,
(dollars and hours in thousands) 2026 2025 Change % Change
-------- -------- ------- --------
Revenue $553,929 $486,012 $67,917 14.0%
Cost of revenue, excluding
depreciation and amortization 394,047 328,078 65,969 20.1%
------- ------- ------
Gross margin $159,882 $157,934 $ 1,948 1.2%
Gross margin percentage 28.9% 32.5% -3.6% (4)
Hours 12,413 11,053 1,360 12.3%
Revenue rate $ 44.62 $ 43.97 $ 0.65 1.7% (1)
Cost of revenue rate $ 31.74 $ 29.68 $ 2.06 7.8% (2)
Spread rate $ 12.88 $ 14.29 $ (1.41) -11.1% (3)
HHH
----------------------------------------------
For the three-month periods ended
----------------------------------------------
(dollars and admissions/episodes July 4, June 28,
in thousands) 2026 2025 Change % Change
-------- -------- ------- --------
Revenue $ 69,023 $ 60,112 $ 8,911 14.8%
Cost of revenue, excluding
depreciation and amortization 31,837 27,048 4,789 17.7%
------- ------- ------
Gross margin $ 37,186 $ 33,064 $ 4,122 12.5%
Gross margin percentage 53.9% 55.0% -1.1% (4)
Home health total admissions (5) 10.5 9.8 0.7 7.1%
Home health episodic admissions
(6) 8.5 7.3 1.2 16.4%
Home health total episodes (7) 14.7 12.4 2.3 18.5%
Home health episodic mix (8) 81.0% 74.5% 6.5% (10)
Home health revenue per completed
episode (9) $ 3,202 $ 3,231 $ (29) -0.9%
MS
----------------------------------------------
For the three-month periods ended
----------------------------------------------
July 4, June 28,
(dollars and UPS in thousands) 2026 2025 Change % Change
-------- -------- ------- --------
Revenue $ 47,531 $ 43,429 $ 4,102 9.4%
Cost of revenue, excluding
depreciation and amortization 26,074 23,627 2,447 10.4%
------- ------- ------
Gross margin $ 21,457 $ 19,802 $ 1,655 8.4%
Gross margin percentage 45.1% 45.6% -0.5% (4)
Unique patients served ("UPS") 95 91 4 4.4%
Revenue rate $ 500.33 $ 477.24 $ 23.09 5.0% (1)
Cost of revenue rate $ 274.46 $ 259.64 $ 14.82 6.0% (2)
Spread rate $ 225.87 $ 217.60 $ 8.27 4.0% (3)
PDS
-------------------------------------------------
For the six-month periods ended
-------------------------------------------------
July 4, June 28,
(dollars and hours in thousands) 2026 2025 Change % Change
---------- -------- -------- --------
Revenue $1,089,581 $946,010 $143,571 15.2%
Cost of revenue, excluding
depreciation and amortization 780,464 653,391 127,073 19.4%
--------- ------- -------
Gross margin $ 309,117 $292,619 $ 16,498 5.6%
Gross margin percentage 28.4% 30.9% -2.5% (4)
Hours 24,469 21,940 2,529 11.5%
Revenue rate $ 44.53 $ 43.12 $ 1.41 3.7% (1)
Cost of revenue rate $ 31.90 $ 29.78 $ 2.12 7.9% (2)
Spread rate $ 12.63 $ 13.34 $ (0.71) -5.9% (3)
HHH
-------------------------------------------------
For the six-month periods ended
-------------------------------------------------
(dollars and admissions/episodes July 4, June 28,
in thousands) 2026 2025 Change % Change
---------- -------- -------- --------
Revenue $ 135,632 $116,845 $ 18,787 16.1%
Cost of revenue, excluding
depreciation and amortization 62,670 53,041 9,629 18.2%
--------- ------- -------
Gross margin $ 72,962 $ 63,804 $ 9,158 14.4%
Gross margin percentage 53.8% 54.6% -0.8% (4)
Home health total admissions (5) 21.5 19.5 2.0 10.3%
Home health episodic admissions
(6) 17.4 14.8 2.6 17.6%
Home health total episodes (7) 29.6 24.5 5.1 20.8%
Home health episodic mix (8) 80.9% 75.9% 5.0% (10)
Home health revenue per completed
episode (9) $ 3,185 $ 3,193 $ (8) -0.3%
MS
-------------------------------------------------
For the six-month periods ended
-------------------------------------------------
July 4, June 28,
(dollars and UPS in thousands) 2026 2025 Change % Change
---------- -------- -------- --------
Revenue $ 93,185 $ 85,922 $ 7,263 8.5%
Cost of revenue, excluding
depreciation and amortization 51,311 47,987 3,324 6.9%
--------- ------- -------
Gross margin $ 41,874 $ 37,935 $ 3,939 10.4%
Gross margin percentage 44.9% 44.2% 0.7% (4)
Unique patients served ("UPS") 188 180 8 4.4%
Revenue rate $ 495.66 $ 477.34 $ 18.32 4.1% (1)
Cost of revenue rate $ 272.93 $ 266.59 $ 6.34 2.5% (2)
Spread rate $ 222.73 $ 210.75 $ 11.98 6.0% (3)
(1) Represents the period over period change in revenue
rate, plus the change in revenue rate attributable
to the change in volume.
(2) Represents the period over period change in cost of
revenue rate, plus the change in cost of revenue rate
attributable to the change in volume.
(3) Represents the period over period change in spread
rate, plus the change in spread rate attributable
to the change in volume.
(4) Represents the change in margin percentage year over
year (or quarter over quarter).
(5) Represents home health episodic and other admissions.
(6) Represents home health episodic admissions.
(7) Represents episodic admissions and recertifications.
(8) Represents the ratio of home health episodic admissions
to home health total admissions.
(9) Represents Medicare revenue per completed episode.
(10) Represents the change in home health episodic mix
year over year (or quarter over quarter).
The following table reconciles gross margin and gross margin percentage to Field contribution and Field contribution margin:
For the three-month For the six-month periods
periods ended ended
-------------------------- --------------------------
July 4, June 28, July 4, June 28,
(dollars in thousands) 2026 2025 2026 2025
-------- ------------ ---------- ----------
Gross margin $218,525 $ 210,800 $ 423,953 $ 394,358
Gross margin
percentage 32.6% 35.8% 32.2% 34.3%
Branch and regional
administrative
expenses 97,079 90,069 192,871 181,456
------- ----------- --------- ---------
Field contribution $121,446 $ 120,731 $ 231,082 $ 212,902
Field contribution
margin 18.1% 20.5% 17.5% 18.5%
Revenue $670,483 $ 589,553 $1,318,398 $1,148,777
The following table reconciles net income to EBITDA and Adjusted EBITDA:
For the three-month For the six-month
periods ended periods ended
---------------------- ---------------------
July 4, June 28, July 4, June 28,
(dollars in thousands) 2026 2025 2026 2025
------- ------------ -------- ----------
Net income $40,293 $ 27,025 $ 81,946 $ 32,218
Interest expense, net 26,517 35,874 54,017 72,077
Income tax expense 16,180 17,113 19,502 22,068
Depreciation and
amortization 2,849 2,617 5,893 5,211
------ ----------- ------- ---------
EBITDA 85,839 82,629 161,358 131,574
Goodwill, intangible
and other long-lived
asset impairment 145 153 121 319
Non-cash share-based
compensation 4,135 5,159 8,282 16,155
Fees related to debt
modifications 1,504 - 1,504 -
Interest rate
derivatives (1) (3,067) (72) (6,171) 5,523
Acquisition-related
costs (2) 4,390 3,400 7,500 3,507
Integration costs (3) 1,246 2,269 2,669 2,543
Legal costs and
settlements associated
with acquisition
matters (4) 1,362 639 3,418 1,678
Restructuring (5) - 80 - 416
Other legal matters (6) 3 (6,014) 28 (5,938)
Other adjustments (7) (122) 131 1,077 (50)
------ ----------- ------- ---------
Total adjustments $ 9,596 $ 5,745 $ 18,428 $ 24,153
------ ----------- ------- ---------
Adjusted EBITDA $95,435 $ 88,374 $179,786 $ 155,727
====== =========== ======= =========
The following table reconciles net income to adjusted net income and presents adjusted net income per diluted share:
For the three-month For the six-month
periods ended periods ended
----------------------- ---------------------
(dollars in thousands,
except share and per July 4, June 28, July 4, June 28,
share data) 2026 2025 2026 2025
-------- ------------ -------- ----------
Net income $ 40,293 $ 27,025 $ 81,946 $ 32,218
Income tax expense 16,180 17,113 19,502 22,068
Goodwill, intangible
and other
long-lived asset
impairment 145 153 121 319
Non-cash share-based
compensation 4,135 5,159 8,282 16,155
Fees related to debt
modifications 1,504 - 1,504 -
Interest rate
derivatives (1) (3,067) (72) (6,171) 5,523
Acquisition-related
costs (2) 4,390 3,400 7,500 3,507
Integration costs
(3) 1,246 2,269 2,669 2,543
Legal costs and
settlements
associated with
acquisition matters
(4) 1,362 639 3,418 1,678
Restructuring (5) - 80 - 416
Other legal matters
(6) 3 (6,014) 28 (5,938)
Other adjustments
(7) (122) 131 1,077 (50)
------- ----------- ------- ---------
Total adjustments 25,776 22,858 37,930 46,221
------- ----------- ------- ---------
Adjusted pre-tax income 66,069 49,883 119,876 78,439
Income tax expense on
adjusted pre-tax
income (8) (16,517) (12,471) (29,969) (19,610)
------- ----------- ------- ---------
Adjusted net income $ 49,552 $ 37,412 $ 89,907 $ 58,829
======= =========== ======= =========
Weighted average shares
outstanding, diluted 224,864 210,442 223,482 206,763
Adjusted net income per
diluted share (9) $ 0.22 $ 0.18 $ 0.40 $ 0.28
The following footnotes are applicable to tables above that reconcile (i) net income to EBITDA and Adjusted EBITDA and (ii) net income to adjusted net income.
(1) Represents valuation adjustments and settlements associated
with interest rate derivatives that are not included
in interest expense, net. Such items are included
in other income (expense).
(2) Represents transaction costs incurred in connection
with planned, completed, or terminated acquisitions,
which include investment banking fees, legal diligence
and related documentation costs, and finance and accounting
diligence and documentation, as presented on the Company's
consolidated statements of operations.
(3) Represents (i) costs associated with our Integration
Management Office, which focuses on our integration
efforts and transformational projects such as systems
conversions and implementations, material cost reduction
and restructuring projects, among other things, of
$0.5 million and $0.9 million for the three and six-month
periods ended July 4, 2026, respectively, and $0.5
million and $0.7 million for the three and six-month
periods ended June 28, 2025, respectively; and (ii)
transitionary costs incurred to integrate acquired
companies into our field and corporate operations
of $0.7 million and $1.8 million for the three and
six-month periods ended July 4, 2026, respectively,
and $1.8 million for both the three and six-month
periods ended June 28, 2025, respectively. Transitionary
costs incurred to integrate acquired companies include
IT consulting costs and related integration support
costs; salary, severance and retention costs associated
with duplicative acquired company personnel until
such personnel are exited from the Company; accounting,
legal and consulting costs; expenses and impairments
related to the closure and consolidation of overlapping
markets of acquired companies, including lease termination
and relocation costs; costs associated with terminating
legacy acquired company contracts and systems; and
one-time costs associated with rebranding our acquired
companies and locations to the Aveanna brand.
(4) Represents legal and forensic costs, as well as settlements
associated with resolving legal matters arising during
or as a result of our acquisition-related activities.
This primarily includes (i) costs of $1.1 million
and $2.6 million for the three and six-month periods
ended July 4, 2026, respectively, and $0.4 million
and $1.3 million for the three and six-month periods
ended June 28, 2025, respectively, to comply with
the U.S. Department of Justice, Antitrust Division's
grand jury subpoena related to nurse wages and hiring
activities in certain of our markets, in connection
with a terminated transaction.
(5) Represents costs associated with restructuring our
branch and regional administrative footprint as well
as our corporate overhead infrastructure costs in
order to appropriately size our resources to current
volumes, including: (i) branch and regional salary
and severance costs; (ii) corporate salary and severance
costs; and (iii) rent and lease termination costs
associated with the closure of certain office locations.
(6) Represents activity related to accrued legal settlements
and the related costs and expenses associated with
certain judgments and arbitration awards rendered
against the Company where certain insurance coverage
is in dispute. The Company released a legal reserve
related to a certain accrued legal settlement during
the three and six-month period ended June 28, 2025.
(7) Represents: (i) other costs or (income) that are either
non-cash or non-core to the Company's ongoing operations
of $(0.1) million and $1.1 million for the three and
six-month periods ended July 4, 2026, respectively,
and $0.1 million and $(0.1) million for the three
and six-month periods ended June 28, 2025, respectively.
(8) Derived utilizing a combined federal and state statutory
rate of 25% for the three and six-month periods ended
July 4, 2026, and June 28, 2025, respectively, and
applied to the respective adjusted pre-tax income.
(9) Adjustments used to reconcile net income per diluted
share on a GAAP basis to adjusted net income per diluted
share are comprised of the same adjustments, inclusive
of the tax impact, used to reconcile net income to
adjusted net income divided by the weighted-average
diluted shares outstanding during the period.
The following table reconciles net income to adjusted net income and presents adjusted net income per diluted share:
For the three-month periods ended For the six-month periods ended
---------------------------------------------- --------------------------------------------
July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025
-------------------- ----------------------- -------------------- ---------------------
Per Per Per
Diluted Per Diluted Diluted Diluted
(dollars in thousands) Dollars Share Dollars Share Dollars Share Dollars Share
-------- --------- -------- ------------ -------- --------- -------- ----------
Net income $ 40,293 $ 0.18 $ 27,025 $ 0.13 $ 81,946 $ 0.37 $ 32,218 $ 0.16
Total adjustments(1) 25,776 0.11 22,858 0.11 37,930 0.16 46,221 0.21
Income tax expense on
adjusted pre-tax
income (16,517) (0.07) (12,471) (0.06) (29,969) (0.13) (19,610) (0.09)
------- ----- ------- ----------- ------- ----- ------- ---------
Adjusted net income $ 49,552 $ 0.22 $ 37,412 $ 0.18 $ 89,907 $ 0.40 $ 58,829 $ 0.28
======= ===== ======= =========== ======= ===== ======= =========
(1) Total adjustments agree to the net income to adjusted
net income table above.
The table below reflects the increase or decrease, and aggregate impact, to the line items included on our consolidated statements of operations based upon the adjustments used in arriving at Adjusted EBITDA from EBITDA for the periods indicated.
For the three-month For the six-month
periods ended periods ended
---------------------- --------------------
July 4, June 28, July 4, June 28,
(dollars in thousands) 2026 2025 2026 2025
------- ------------ ------- ----------
Cost of revenue,
excluding depreciation
and amortization $ 345 $ (5,878) $ (13) $ (5,578)
Branch and regional
administrative
expenses 1,485 1,599 3,504 4,837
Corporate expenses 6,243 6,451 13,453 15,599
Acquisition-related
costs 4,390 3,400 7,500 3,506
Other operating expense - 109 - 47
Other income (expense) (2,867) 64 (6,016) 5,742
------ ----------- ------ ---------
Total adjustments $ 9,596 $ 5,745 $18,428 $ 24,153
====== =========== ====== =========
The following table reconciles the net cash provided by operating activities to free cash flow:
For the six-month period ended
--------------------------------
(dollars in thousands) July 4, 2026
--------------------------------
Net cash provided by operations $ 85,277
Purchases of property and equipment, and
software (5,847)
Principal payments of term loans (3,312)
Principal payments of notes payable (4,961)
Settlements with swap counterparties 4,268
----- -------------------------
Free cash flow $ 75,425
===== =========================
Investor Contact
Matt Buckhalter
Chief Financial Officer
ir@aveanna.com