Healthcare Services Group Reports 7.6% Revenue Increase to $458.5M; Posts Net Loss of $32.4M and EPS of ($0.44)
Reuters
Jul 23, 2025
Healthcare Services Group Reports 7.6% Revenue Increase to $458.5M; Posts Net Loss of $32.4M and EPS of ($0.44)
Healthcare Services Group Inc. $(HCSG)$ reported its second quarter results, showing a revenue increase of 7.6% over the prior year, reaching $458.5 million. The Environmental Services segment contributed $205.8 million, while the Dietary Services segment added $252.7 million to the total revenue. Despite a net loss of $32.4 million, impacted by a $61.2 million non-cash charge related to the Genesis HealthCare restructuring, the company exceeded its growth expectations. The company's cash flow from operations improved to $28.8 million, with cash flow excluding payroll accrual changes increasing by $10.9 million over the prior year to $8.5 million. Looking ahead, HCSG raised its 2025 cash flow from operations forecast, excluding payroll accrual changes, to a range of $70.0 to $85.0 million. HCSG also announced a $50.0 million, 12-month share repurchase plan, reflecting confidence in its strategic priorities and business fundamentals. The company reiterated its expectation for mid-single digit revenue growth in 2025 and aims to manage its cost of services and SG&A more efficiently in the future.
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