Addus Homecare (Nasdaq: ADUS) has seen steady hospice growth during the first quarter of 2025.

Hospice represents 18% of Addus’ business, with the remainder made up by its personal care and home health segments. The company saw 9.9% year-over-year organic revenue growth during the first quarter, as well as higher average daily census, patient days and revenue per patient day.

Addus anticipates further revenue growth through the rest of the year.

“When we think about hospice, we look for, on a revenue basis, a 5% to 7% range. I think we’ll be kind of at that higher end, if maybe slightly above it,” Chairman and CEO Dirk Allison said in a first quarter earnings call. “We have had good [average daily census] growth. So we’re really pleased with how the first quarter shaped up for us, and we’ll see how the rest of the year goes. But five to 7% on the revenue side, with probably towards the upper end of that range.”

Texas-headquartered Addus provides personal care, home health and hospice services in 23 states.

The company’s net service revenues were $337.7 million for the first quarter of 2025, a 20.3% increase compared with $280.7 million for the prior year’s quarter. The Addus hospice segment earned more than $61 million in Q1 compared to $55.8 million in the first quarter of 2024.

The company is positioned well for capital deployment, including acquisitions, Allison said in a first quarter earnings call. 

Addus’ acquisition strategy focuses on pairing its clinical services with its personal care business across its existing markets. Its $350 million purchase of Gentiva’s personal care business line in December 2024 marked the largest acquisition in the home-based care provider’s history, according to CFO Brian Poff.

“As of March 31, 2025, we had cash on hand of approximately $97 million. During the first quarter, we reduced our bank debt by $20 million leaving a balance of $203 million at the end of the quarter,” Poff said. “This gives us a conservative net leverage position at under 1x adjusted EBITDA, allowing us the flexibility to continue to evaluate and pursue strategic acquisition opportunities.”