Home healthcare provider Addus HomeCare (NASDAQ: ADUS) missed Wall Street’s revenue expectations in Q1 CY2026, but sales rose 7.7% year on year to $363.6 million. Its non-GAAP profit of $1.62 per share was 4.9% above analysts’ consensus estimates.
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Addus HomeCare (ADUS) Q1 CY2026 Highlights:
- Revenue: $363.6 million vs analyst estimates of $366.2 million (7.7% year-on-year growth, 0.7% miss)
- Adjusted EPS: $1.62 vs analyst estimates of $1.54 (4.9% beat)
- Adjusted EBITDA: $44.51 million vs analyst estimates of $44.22 million (12.2% margin, 0.7% beat)
- Operating Margin: 9.4%, in line with the same quarter last year
- Sales Volumes were flat year on year (33.8% in the same quarter last year)
- Market Capitalization: $1.82 billion
Company Overview
Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ: ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Addus HomeCare grew its sales at a solid 13.2% compounded annual growth rate. Its growth beat the average healthcare company and shows its offerings resonate with customers.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Addus HomeCare’s annualized revenue growth of 15.4% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
Addus HomeCare also reports its number of average billable patients, which reached 50,283 in the latest quarter. Over the last two years, Addus HomeCare’s average billable patients averaged 22.3% year-on-year growth. Because this number is better than its revenue growth, we can see the company’s average selling price decreased. 
This quarter, Addus HomeCare’s revenue grew by 7.7% year on year to $363.6 million, missing Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 6.3% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above the sector average and suggests the market is forecasting some success for its newer products and services.
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Adjusted Operating Margin
Addus HomeCare has done a decent job managing its cost base over the last five years. The company has produced an average adjusted operating margin of 10.5%, higher than the broader healthcare sector.
Looking at the trend in its profitability, Addus HomeCare’s adjusted operating margin rose by 2 percentage points over the last five years, as its sales growth gave it operating leverage. The company’s two-year trajectory shows its performance was mostly driven by its recent improvements.
This quarter, Addus HomeCare generated an adjusted operating margin profit margin of 10.7%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Addus HomeCare’s EPS grew at 16.1% compounded annual growth rate over the last five years, higher than its 13.2% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
We can take a deeper look into Addus HomeCare’s earnings quality to better understand the drivers of its performance. As we mentioned earlier, Addus HomeCare’s adjusted operating margin was flat this quarter but expanded by 2 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.
In Q1, Addus HomeCare reported adjusted EPS of $1.62, up from $1.42 in the same quarter last year. This print beat analysts’ estimates by 4.9%. Over the next 12 months, Wall Street expects Addus HomeCare’s full-year EPS of $6.44 to grow 9.2%.
Key Takeaways from Addus HomeCare’s Q1 Results
It was good to see Addus HomeCare beat analysts’ EPS expectations this quarter. On the other hand, its revenue slightly missed. Overall, this was a weaker quarter. The stock remained flat at $100.01 immediately after reporting.
Big picture, is Addus HomeCare a buy here and now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
