Addus HomeCare Corp. (Nasdaq: ADUS) is anticipating a robust deal-making year on the horizon as the company zeroes in on the home health and hospice space.
Texas-headquartered Addus provides hospice, home health and personal care services across 24 states. The company is seeking opportunities across clinical business segments, according to Brian Poff, executive vice president and CFO of Addus.
Larger home health and hospice assets are in consideration as valuations normalize from heightened levels in previous years, Poff said in an earnings call on Wednesday.
“We think there [are] going to be opportunities on the clinical side,” Poff said. “If you look at our footprint, particularly in home health, we’ve got a lot of green space in our portfolio where we can add operations there at probably good multiples. In hospice, it would really just depend on where multiples are next year. It feels like there’s some rationalization happening in the hospice area where maybe they’ll be a little more affordable. If that’s the case, those are things we would like to be interested or active in as well.”
Founded in 1979, Addus provides hospice, personal care and home health to an estimated 62,500 patients annually.
The home-based care company’s overall net service revenue reached $387.7 million in the third quarter of 2026, rising 7% compared to the prior year. Addus’ adjusted EBIDTA, at roughly $51.2 million in Q3, saw a 13.5% year-over-year increase.
During Q3, Addus’ hospice service revenue reached $69 million, seeing a 4.1% increase compared to the same period in 2025. The segment represented 17.8% of the company’s overall revenue. Addus’ hospice average daily census volumes reached 4,037 patients, rising 4.3% compared to last year.
The company’s home health segment revenue hovered at $17.7 million, with its personal care services bringing in the lion’s share of its revenue at more than $301 million.
Addus expects its hospice division to continue an upward growth trajectory, according to CEO and Chairman Dirk Allison. The company sees its “biggest opportunities” in home health and hospice expansion across its existing geographic service regions, Allison said during the earnings call.
Addus’ co-location strategy has focused on overlapping expansion of hospice, home health and personal care services in its existing markets, said Allison.
Addus recently inked an agreement to acquire AccentCare’s personal care service division for roughly $275 million in September. The transaction is projected to close within the first quarter of 2027, pending regulatory approvals, according to Poff. The AccentCare purchase has brought “synergy opportunities” for strategic growth, particularly the potential for larger M&A deal-making, Poff said.
The AccentCare deal adds approximately $280 million in annualized revenue, Allison stated. The deal creates “density” across its existing locations and enhances the company’s M&A prospects, he said.
Addus went back on the hunt for acquisitions after a temporary halt as valuations soared in the hospice space. The home care company in 2025 acquired Pennsylvania-based Helping Hands Home Care Service Inc. for $21.3 million, which provides hospice, home health and personal care services. During the prior year, Addus purchased Gentiva’s personal care business for $350 million.
The company is seeking multi-state geographic expansion, according to Allison.
“We are currently looking at other large opportunities on the clinical side,” Allison said. “We are in a prime position with our balance sheet to look at larger deals. The big impediment to us over the last two or three years in looking at the clinical side is not because we didn’t like the business … it was the price of those transactions and the fact that it’s difficult to get a return for our shareholders at that price. We’re going to be looking in clinical, small and large. It’s our goal to be very active with our balance sheet in M&A over the next year or two.”
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