Addus Homecare (Nasdaq: ADUS) is hungry for acquisitions, with home care and skilled home health at the top of the menu.
The company is seeking to build density and expand into new markets as it works to develop stronger relationships with Managed Care Organizations and other payers, according to Chairman and CEO Dirk Allison.
“We had cash on hand of approximately $100 million [in Q2]. With our strong cash flow in the second quarter, we reduced our bank debt to $64.3 million, leaving us with the financial flexibility to consider larger acquisition opportunities as we continue to pursue expansion of our market reach and increasing our geographic density,” Allison said in an earnings call. “Our development team continues to evaluate opportunities which would increase both density and geographic coverage, as we seek to further strengthen our relationship with states and managed care organizations.”
Addus in May closed on the acquisition of the personal care operation of Home Court Home Care, based in Fort Wayne, Indiana, marking the company’s entry into that state. A second personal care acquisition is currently in the works, Allison said. The company is also “open” to home health transactions.
Founded in 1979, Texas-headquartered Addus provides personal care, home health and hospice services to roughly 62,750 patients across more than 263 locations in 24 states.
For the first six months of 2026, Addus’ net service revenues increased 7.8% to $741.0 million from $687.2 million for the prior-year period. The company’s adjusted EBITDA rose 10.9% to $93.7 million for the first six months of 2026 from $84.5 million for the first six months of 2025.
The company’s hospice care business saw an 11.1% bump compared to Q2 2025, driven by strong organic growth, Addus reported. The segment accounted for 17% of its revenue for the second quarter.
The hospice segment experienced some payment cap liability in the second quarter of about $3 million, chiefly in the Ohio market.
Addus does not expect further cap issues this year, according to CFO Brian Poff.
“We continue to focus on maintaining a balanced mix of patients and operating within the Medicare cap,” Poff said in the earnings call. “We typically have some marginal cap exposure in a few provider locations each year, and consistent with our approach, have mitigation strategies in place to reduce the ultimate impact.”
