-- Third Quarter Revenue was $621.9 million, a 22.2% increase over the prior
year period
-- Third Quarter Net income was $14.1 million compared to Net loss of $42.8
million for the prior year period
-- Adjusted EBITDA for Q3 2025 was $80.1 million, a 67.5% increase over the
prior year period
-- Increased Full Year 2025 Revenue guidance to greater than $2.375 billion,
updated from greater than $2.3 billion
-- Increased Full Year 2025 Adjusted EBITDA guidance to greater than
$300 million, updated from greater than $270 million
ATLANTA, Nov. 06, 2025 (GLOBE NEWSWIRE) -- Aveanna Healthcare Holdings Inc. (NASDAQ: AVAH), a leading, diversified home care platform focused on providing care to medically complex, high-cost patient populations, today announced financial results for the three and nine-month periods ended September 27, 2025.
Jeff Shaner, Chief Executive Officer, commented, "Our third quarter results reflect the strength and momentum in all three operating divisions as we continue year three of our Strategic Transformation. The quarter was highlighted by revenue and adjusted EBITDA growth of 22.2% and 67.5%, respectively, when compared to the prior year period. We continue to advocate for our patients and families to receive the value of high-quality health care in the comfort of their home. Our national footprint delivers cost-effective and high-quality home care that provides significant value to our payor and government partners. The integration of Thrive Skilled Pediatric Care is on track to be completed by the end of the year. Our revised guidance demonstrates the sustained momentum we have in our business as we complete 2025. I am proud of our dedicated team of Aveanna caregivers and leaders, who deliver on our mission of exceptional care every day."
Three-Month Periods Ended September 27, 2025 and September 28, 2024
Revenue was $621.9 million for the three-month period ended September 27, 2025, as compared to $509.0 million for the three-month period ended September 28, 2024, an increase of $112.9 million, or 22.2%. The overall increase in revenue was attributable to a $104.9 million increase in PDS segment revenue, and a $8.3 million increase in HHH segment revenue, offset by a $0.2 million decrease in MS segment revenue compared to the third quarter of 2024.
Gross margin was $202.8 million, or 32.6% of revenue, for the three-month period ended September 27, 2025, as compared to $159.7 million, or 31.4% of revenue, for the three-month period ended September 28, 2024, an increase of $43.1 million, or 27.0%.
Net income was $14.1 million for the three-month period ended September 27, 2025, as compared to net loss of $42.8 million for the three-month period ended September 28, 2024. Net income per diluted share was $0.06 for the three-month period ended September 27, 2025, as compared to net loss per diluted share of $(0.22) for the three-month period ended September 28, 2024. Adjusted net income per diluted share was $0.15 for the three-month period ended September 27, 2025, as compared to adjusted net income per diluted share of $0.02 for the three-month period ended September 28, 2024. See "Non-GAAP Financial Measures - Adjusted net income and Adjusted net income per diluted share" below.
Adjusted EBITDA was $80.1 million, or 12.9% of revenue, for the three-month period ended September 27, 2025, as compared to $47.8 million, or 9.4% of revenue, for the three-month period ended September 28, 2024, an increase of $32.3 million or 67.5%. See "Non-GAAP Financial Measures - EBITDA and Adjusted EBITDA" below.
Nine-Month Period Ended September 27, 2025 and September 28, 2024
Revenue was $1,770.7 million for the nine-month period ended September 27, 2025, as compared to $1,504.6 million for the nine-month period ended September 28, 2024, an increase of $266.1 million, or 17.7%. The overall increase in revenue was attributable to a $248.0 million increase in PDS segment revenue, a $15.9 million increase in HHH segment revenue, and a $2.2 million increase in MS segment revenue compared to the first nine months of 2024.
Gross margin was $597.2 million, or 33.7% of revenue, for the nine-month period ended September 27, 2025, as compared to $463.8 million, or 30.8% of revenue, for the nine-month period ended September 28, 2024, an increase of $133.4 million, or 28.8%.
Net income was $46.3 million for the nine-month period ended September 27, 2025, as compared to net loss of $40.1 million for the nine-month period ended September 28, 2024. Net income per diluted share was $0.22 for the nine-month period ended September 27, 2025, as compared to net loss per diluted share of $(0.21) for the nine-month period ended September 28, 2024. Adjusted net income per diluted share was $0.43 for the nine-month period ended September 27, 2025, as compared to adjusted net income per diluted share of $0.01 for the nine-month period ended September 28, 2024. See "Non-GAAP Financial Measures - Adjusted net income and Adjusted net income per diluted share" below.
Adjusted EBITDA was $235.9 million, or 13.3% of revenue, for the nine-month period ended September 27, 2025, as compared to $128.4 million, or 8.5% of revenue, for the nine-month period ended September 28, 2024, an increase of $107.5 million or 83.7%. See "Non-GAAP Financial Measures - EBITDA and Adjusted EBITDA" below.
Liquidity, Cash Flow, and Debt
On September 17, 2025, we entered into the fourth joinder and twelfth amendment (the "Refinancing Amendment") to our First Lien Credit Agreement and concurrently terminated our $415.0 million Second Lien Credit Agreement using proceeds from incremental borrowings under the Refinancing Amendment. The Refinancing Amendment expanded our capacity on our revolving credit facility to $250.0 million and extended the maturity dates of our revolving credit facility, as well as our refinanced term loans and an incremental senior secured term loan facility (together, the "2025 Term Loans") to September 17, 2030, and September 17, 2032, respectively. The 2025 Term Loans bear interest at Term SOFR plus 3.75%.
-- As of September 27, 2025, we had cash of $145.9 million and incremental
borrowing capacity of $105.8 million under our securitization facility.
Our revolver was undrawn, with approximately $227.0 million of borrowing
capacity and approximately $23.0 million of outstanding letters of
credit.
-- 2025 net cash provided by operating activities was $76.1 million. Free
cash flow was $86.2 million for the nine-month period ended September 27,
2025. See "Non-GAAP Financial Measures - Free cash flow" below.
-- As of September 27, 2025 we had total indebtedness of $1,490.0 million.
Our interest rate exposure under our credit facilities is currently
hedged with the following instruments:
-- $520.0 million notional amount of interest rate swaps that convert
variable rate debt to a fixed rate, and
-- $880.0 million notional amount of interest rate caps that cap our
exposure to SOFR at 2.96%.
Matt Buckhalter, Chief Financial Officer, commented, "Our third-quarter results are highlighted by revenue and Adjusted EBITDA growth of 22.2% and 67.5%, respectively, compared to the prior year period. Our team's relentless focus on operational excellence, disciplined execution, and delivering strong clinical outcomes continues to drive our improved results. In addition, our successful debt refinancing completed during the third quarter reflects the strength of our operating performance and proven value of our national home care platform. Based on our performance and the opportunities ahead, we are pleased to raise our full-year 2025 guidance to revenue of greater than $2.375 billion and Adjusted EBITDA of greater than $300 million."
Full Year 2025 Guidance
The following is our guidance reflecting our updated expectations for revenue and Adjusted EBITDA for the full fiscal year 2025 (year ending January 3, 2026):
-- Revenue of greater than $2.375 billion, updated from greater than $2.3
billion
Consistent with prior practice, we are not providing guidance on net income at this time due to the volatility of certain required inputs that are not available without unreasonable efforts, including future fair value adjustments associated with our interest rate swaps and caps.
-- Adjusted EBITDA of greater than $300 million, updated from greater than
$270 million
Non-GAAP Financial Measures
In addition to our results of operations prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), we also evaluate our financial performance using EBITDA, Adjusted EBITDA, Field contribution, Field contribution margin, Adjusted net income or loss, Adjusted net income or loss per diluted share, and Free cash flow. Given our determination of adjustments in arriving at our computations, these non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as substitutes or alternatives to net income or loss, revenue, operating income or loss, cash flows from operating activities, total indebtedness, gross margin, gross margin percentage or any other financial measures calculated in accordance with GAAP. The reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures are included in the financial tables below.
EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are non-GAAP financial measures and are not intended to replace financial performance measures determined in accordance with GAAP, such as net income or loss. Rather, we present EBITDA and Adjusted EBITDA as supplemental measures of our performance. We define EBITDA as net income or loss before interest expense, net; income tax expense or benefit; and depreciation and amortization. We define Adjusted EBITDA as EBITDA, adjusted for the impact of certain other items that are either non-recurring, infrequent, non-cash, unusual, or items deemed by management to not be indicative of the performance of our core operations, including impairments of goodwill, intangible assets, and other long-lived assets; non-cash, share-based compensation and associated employer payroll taxes; loss on extinguishment of debt; fees related to debt modifications; the effect of interest rate derivatives; acquisition-related and integration costs; legal costs and settlements associated with acquisition matters; restructuring costs; other legal matters; and other system transition costs, professional fees and other costs. As non-GAAP financial measures, our computations of EBITDA and Adjusted EBITDA may vary from similarly termed non-GAAP financial measures used by other companies, making comparisons with other companies on the basis of this measure impracticable.
We believe our computations of EBITDA and Adjusted EBITDA are helpful in highlighting trends in our core operating performance. In determining which adjustments are made to arrive at EBITDA and Adjusted EBITDA, we consider both (1) certain non-recurring, infrequent, non-cash or unusual items, which can vary significantly from year to year, as well as (2) certain other items that may be recurring, frequent, or settled in cash but which we do not believe are indicative of our core operating performance. We use EBITDA and Adjusted EBITDA to assess operating performance and make business decisions.
We have incurred substantial acquisition-related costs and integration costs. The underlying acquisition activities take place over a defined timeframe, have distinct project timelines and are incremental to activities and costs that arise in the ordinary course of our business. Therefore, we believe it is important to exclude these costs from our Adjusted EBITDA because it provides us a normalized view of our core, ongoing operations after integrating our acquired companies, which we believe is an important measure in assessing our performance.
Field contribution and Field contribution margin
Field contribution and Field contribution margin are non-GAAP financial measures and are not intended to replace financial performance measures determined in accordance with GAAP, such as gross margin and gross margin percentage. Rather, we present Field contribution and Field contribution margin as supplemental measures of our performance. We define Field contribution as gross margin less branch and regional administrative expenses. Field contribution margin is Field contribution as a percentage of revenue. As non-GAAP financial measures, our computations of Field contribution and Field contribution margin may vary from similarly termed non-GAAP financial measures used by other companies, making comparisons with other companies on the basis of these measures impracticable.
Field contribution and Field contribution margin have limitations as analytical tools and should not be considered in isolation or as substitutes or alternatives to gross margin, gross margin percentage, net income or loss, revenue, operating income or loss, cash flows from operating activities, total indebtedness or any other financial measures calculated in accordance with GAAP.
Management believes Field contribution and Field contribution margin are helpful in highlighting trends in our core operating performance and evaluating trends in our branch and regional results, which can vary from year to year. We use Field contribution and Field contribution margin to make business decisions and assess the operating performance and results delivered by our core field operations, prior to corporate and other costs not directly related to our field operations. These metrics are also important because they guide us in determining whether or not our branch and regional administrative expenses are appropriately sized to support our caregivers and direct patient care operations. Additionally, Field contribution and Field contribution margin determine how effective we are in managing our field supervisory and administrative costs associated with supporting our provision of services and sale of products.
Adjusted net income and Adjusted net income per diluted share
Adjusted net income represents net income (loss) as adjusted for the impact of GAAP income tax, goodwill, intangible and other long-lived asset impairment charges, non-cash share-based compensation expense, loss on extinguishment of debt, fees related to debt modifications; interest rate derivatives, acquisition-related costs, integration costs, legal costs, restructuring costs, other legal matters, other system transition costs, professional fees and certain other miscellaneous items on a pre-tax basis. Adjusted net income includes a provision for income taxes derived utilizing a combined statutory tax rate. The combined statutory tax rate is our estimate of our long-term tax rate. The most comparable GAAP measure is net income (loss).
Adjusted net income per diluted share represents adjusted net income on a per diluted share basis using the weighted-average number of diluted shares outstanding for the period. The most comparable GAAP measure is net income (loss) per share, diluted.
Adjusted net income and adjusted net income per diluted share are important to us because they allow us to assess financial results, exclusive of the items mentioned above that are not operational in nature or comparable to those of our competitors.
Free cash flow
Free cash flow is a liquidity measure that represents operating cash flow, adjusted for the impact of purchases of property, equipment and software, proceeds from issuance of term loans, net of debt issuance costs, principal payments on term loans, notes payable and financing leases, and settlements with swap counterparties. The most comparable GAAP measure is cash flow from operations.
We believe free cash flow is helpful in highlighting the cash generated or used by the Company, after taking into consideration mandatory payments on term loans, notes payable and financing leases, as well as cash needed for non-acquisition related capital expenditures, and cash paid to or received from derivative counterparties.
Conference Call
Aveanna will host a conference call on Thursday, November 6, 2025, at 10:00 a.m. Eastern Time to discuss our third quarter results. The conference call can be accessed live over the phone by dialing 1-877-407-0789, or for international callers, 1-201-689-8562. A telephonic replay of the conference call will be available until November 13, 2025, by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the live call and the replay is 13755427. A live webcast of our conference call will also be available under the Investor Relations section of our website: https://ir.aveanna.com/. The online replay will also be available for one week following the call.
Forward-Looking Statements
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements (other than statements of historical facts) in this press release regarding our prospects, plans, financial position, business strategy and expected financial and operational results may constitute forward-looking statements. Forward-looking statements generally can be identified by the use of terminology such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "should," "would," "predict," "project," "potential," "continue," "could," "design," "guidance," or the negatives of these terms or variations of them or similar expressions. These statements are based on certain assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate in these circumstances. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. Forward-looking statements involve a number of risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements, such as intense competition among home health, hospice and durable medical equipment companies; our ability to maintain relationships with existing patient referral sources; our ability to have services funded from third-party payers, including Medicare, Medicaid and private health insurance companies, including as a result of changes to Medicaid to be implemented under the One Big Beautiful Bill Act; changes to Medicare or Medicaid rates or methods governing Medicare or Medicaid payments, and the implementation of alternative payment models, including but not limited to Medicare Advantage, Managed Care Organization, managed Medicaid, and other forms of managed care; any downward pressure on reimbursement resulting from further proliferation of Medicare Advantage plans; our limited ability to control reimbursement rates received for our services; delays in collection or non-collection of our patient accounts receivable, particularly during the business integration process, or when transitioning between systems associated with clinical data collection and submission, as well as billing and collection systems; healthcare reform and other regulations, including risks related to the proposed rule issued for the home health prospective
payment system by Centers for Medicare & Medicaid Services; changes in the case-mix of our patients, as well as payer mix and payment methodologies; any reduction in net reimbursement if we do not effectively implement value-based care programs; the possibility that our business, financial condition and results of operations may be materially adversely affected by public health emergencies, such as a pandemic or other infectious disease outbreak; shortages in qualified employees and management and competition for qualified personnel; any failure to maintain the security and functionality of our information systems or to defend against or otherwise prevent a cybersecurity attack or breach; our substantial indebtedness, which increases our vulnerability to general adverse economic and industry conditions and may limit our ability to pursue strategic alternatives and react to changes in our business and industry; our ability to identify, obtain financing for, acquire and integrate strategic and accretive businesses or assets; risks related to legal proceedings, claims and governmental inquiries given that the nature of our business exposes us to various liability claims, which may exceed the level of our insurance coverage, and other risks set forth under the heading "Risk Factors" in Aveanna's Annual Report on Form 10-K for its 2024 fiscal year filed with the Securities and Exchange Commission on March 13, 2025, which is available at www.sec.gov. In addition, these forward-looking statements necessarily depend upon assumptions, estimates and dates that may prove to be incorrect or imprecise. Accordingly, forward-looking statements included in this press release do not purport to be predictions of future events or circumstances, and actual results may differ materially from those expressed by forward-looking statements. All forward-looking statements speak only as of the date made, and Aveanna undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About Aveanna Healthcare
Aveanna Healthcare is headquartered in Atlanta, Georgia and has locations in 38 states providing a broad range of pediatric and adult healthcare services including nursing, rehabilitation services, occupational nursing in schools, therapy services, day treatment centers for medically fragile and chronically ill children and adults, home health and hospice services, as well as delivery of enteral nutrition and other products to patients. The Company also provides case management services in order to assist families and patients by coordinating the provision of services between insurers or other payers, physicians, hospitals, and other healthcare providers. In addition, the Company provides respite healthcare services, which are temporary care provider services provided in relief of the patient's normal caregiver. The Company's services are designed to provide a high quality, lower cost alternative to prolonged hospitalization. For more information, please visit www.aveanna.com.
Cash Flow and Information about Indebtedness
The following table sets forth a summary of our cash flows from operating, investing, and financing activities for the periods presented:
For the nine-month periods ended
----------------------------------------------
(dollars in thousands) September 27, 2025 September 28, 2024
----------------------- --------------------
Net cash provided by
operating activities $ 76,137 $ 19,231
Net cash used in
investing activities $ (20,349) $ (4,790)
Net cash provided by
financing activities $ 5,790 $ 20,079
Cash and cash
equivalents at
beginning of period $ 84,288 $ 43,942
Cash and cash
equivalents at end of
period $ 145,866 $ 78,462
The following table presents our long-term indebtedness as of September 27, 2025:
(dollars in thousands)
Instrument Interest Rate September 27, 2025
-------------- --------------------
2025 Term Loans (1) S + 3.75% $ 1,325,000
2025 Refinancing Revolving Credit
Facility (1) S + 3.75% -
Securitization Facility S + 2.50% 165,000
----------------
Total indebtedness $ 1,490,000
(1) S = One-month SOFR
Results of Operations
The following table summarizes our consolidated results of operations for the periods indicated (amounts in thousands, except per share data):
For the three-month For the nine-month
periods ended periods ended
------------------------- ------------------------
September September September September
27, 2025 28, 2024 27, 2025 28, 2024
---------- ------------ ---------- -----------
Revenue $ 621,942 $ 509,023 $1,770,719 $ 1,504,634
Cost of revenue,
excluding
depreciation and
amortization 419,118 349,324 1,173,537 1,040,814
Branch and regional
administrative
expenses 95,399 88,184 276,855 264,070
Corporate expenses 52,000 31,894 124,034 91,981
Depreciation and
amortization 2,599 2,587 7,810 8,332
Acquisition-related
costs (1,175) 150 2,331 150
Other operating
expense 418 2,860 734 5,271
--------- ----------- --------- ----------
Operating income 53,583 34,024 185,418 94,016
Interest income 826 100 1,087 297
Interest expense (35,127) (39,245) (107,465) (118,505)
Loss on debt
extinguishment (5,862) - (5,862) -
Other (expense)
income (3) (22,211) (5,475) 2,329
--------- ----------- --------- ----------
Income (loss) before
income taxes 13,417 (27,332) 67,703 (21,863)
Income tax benefit
(expense) 647 (15,511) (21,421) (18,246)
--------- ----------- --------- ----------
Net income (loss) $ 14,064 $ (42,843) $ 46,282 $ (40,109)
========= =========== ========= ==========
Net income (loss)
per share:
Net income (loss)
per share, basic $ 0.07 $ (0.22) $ 0.23 $ (0.21)
========= =========== ========= ==========
Weighted average
shares of common
stock outstanding,
basic 208,948 193,361 201,529 192,734
========= =========== ========= ==========
Net income (loss)
per share, diluted $ 0.06 $ (0.22) $ 0.22 $ (0.21)
========= =========== ========= ==========
Weighted average
shares of common
stock outstanding,
diluted 222,234 193,361 211,920 192,734
========= =========== ========= ==========
The following tables summarize our consolidated key performance measures, including Field contribution and Field contribution margin, which are non-GAAP measures, for the periods indicated:
For the three-month periods ended
--------------------------------------------------
September September
(dollars in thousands) 27, 2025 28, 2024 Change % Change
---------- ---------- -------- --------
Revenue $ 621,942 $ 509,023 $112,919 22.2%
Cost of revenue,
excluding depreciation
and amortization 419,118 349,324 69,794 20.0%
--------- --------- -------
Gross margin $ 202,824 $ 159,699 $ 43,125 27.0%
Gross margin
percentage 32.6% 31.4% 1.2% (1)
Branch and regional
administrative
expenses 95,399 88,184 7,215 8.2%
--------- --------- -------
Field contribution $ 107,425 $ 71,515 $ 35,910 50.2%
Field contribution
margin 17.3% 14.0%
Corporate expenses $ 52,000 $ 31,894 $ 20,106 63.0%
As a percentage of
revenue 8.4% 6.3%
Operating income $ 53,583 $ 34,024 $ 19,559 57.5%
As a percentage of
revenue 8.6% 6.7%
For the nine-month periods ended
--------------------------------------------------
September September
(dollars in thousands) 27, 2025 28, 2024 Change % Change
---------- ---------- -------- --------
Revenue $1,770,719 $1,504,634 $266,085 17.7%
Cost of revenue,
excluding depreciation
and amortization 1,173,537 1,040,814 132,723 12.8%
--------- --------- -------
Gross margin $ 597,182 $ 463,820 $133,362 28.8%
Gross margin
percentage 33.7% 30.8% 2.9% (1)
Branch and regional
administrative
expenses 276,855 264,070 12,785 4.8%
--------- --------- -------
Field contribution $ 320,327 $ 199,750 $120,577 60.4%
Field contribution
margin 18.1% 13.3%
Corporate expenses $ 124,034 $ 91,981 $ 32,053 34.8%
As a percentage of
revenue 7.0% 6.1%
Operating income $ 185,418 $ 94,016 $ 91,402 97.2%
As a percentage of
revenue 10.5% 6.2%
(1) Represents the change in margin percentage year over year (or quarter over quarter).
The following tables summarize our key performance measures by segment for the periods indicated:
PDS
---------------------------------------------------
For the three-month periods ended
---------------------------------------------------
September September
(dollars and hours in thousands) 27, 2025 28, 2024 Change % Change
---------- ---------- -------- --------
Revenue $ 514,431 $ 409,558 $104,873 25.6%
Cost of revenue, excluding
depreciation and amortization 365,159 299,731 65,428 21.8%
--------- --------- -------
Gross margin $ 149,272 $ 109,827 $ 39,445 35.9%
Gross margin percentage 29.0% 26.8% 2.2% (4)
Hours 11,822 10,474 1,348 12.9%
Revenue rate $ 43.51 $ 39.10 $ 4.41 12.7% (1)
Cost of revenue rate $ 30.89 $ 28.62 $ 2.27 8.9% (2)
Spread rate $ 12.62 $ 10.48 $ 2.14 23.0% (3)
HHH
---------------------------------------------------
For the three-month periods ended
---------------------------------------------------
(dollars and admissions/episodes September September
in thousands) 27, 2025 28, 2024 Change % Change
---------- ---------- -------- --------
Revenue $ 62,427 $ 54,139 $ 8,288 15.3%
Cost of revenue, excluding
depreciation and amortization 29,146 24,948 4,198 16.8%
--------- --------- -------
Gross margin $ 33,281 $ 29,191 $ 4,090 14.0%
Gross margin percentage 53.3% 53.9% -0.6% (4)
Home health total admissions (5) 9.7 8.9 0.8 9.0%
Home health episodic admissions
(6) 7.5 6.8 0.7 10.3%
Home health total episodes (7) 12.9 11.3 1.6 14.2%
Home health episodic mix (8) 77.3% 76.4% 0.9% (10)
Home health revenue per completed
episode (9) $ 3,215 $ 3,104 $ 111 3.6%
MS
---------------------------------------------------
For the three-month periods ended
---------------------------------------------------
September September
(dollars and UPS in thousands) 27, 2025 28, 2024 Change % Change
---------- ---------- -------- --------
Revenue $ 45,084 $ 45,326 $ (242) -0.5%
Cost of revenue, excluding
depreciation and amortization 24,813 24,645 168 0.7%
--------- --------- -------
Gross margin $ 20,271 $ 20,681 $ (410) -2.0%
Gross margin percentage 45.0% 45.6% -0.6% (4)
Unique patients served ("UPS") 91 92 (1) -1.1%
Revenue rate $ 495.43 $ 492.67 $ 2.76 0.6% (1)
Cost of revenue rate $ 272.67 $ 267.88 $ 4.79 1.8% (2)
Spread rate $ 222.76 $ 224.79 $ (2.03) -0.9% (3)
PDS
---------------------------------------------------
For the nine-month periods ended
---------------------------------------------------
September September
(dollars and hours in thousands) 27, 2025 28, 2024 Change % Change
---------- ---------- -------- --------
Revenue $1,460,441 $1,212,418 $248,023 20.5%
Cost of revenue, excluding
depreciation and amortization 1,018,550 891,588 126,962 14.2%
--------- --------- -------
Gross margin $ 441,891 $ 320,830 $121,061 37.7%
Gross margin percentage 30.3% 26.5% 3.8% (4)
Hours 33,762 31,074 2,688 8.7%
Revenue rate $ 43.26 $ 39.02 $ 4.24 11.8% (1)
Cost of revenue rate $ 30.17 $ 28.69 $ 1.48 5.5% (2)
Spread rate $ 13.09 $ 10.33 $ 2.76 29.0% (3)
HHH
---------------------------------------------------
For the nine-month periods ended
---------------------------------------------------
(dollars and admissions/episodes September September
in thousands) 27, 2025 28, 2024 Change % Change
---------- ---------- -------- --------
Revenue $ 179,272 $ 163,382 $ 15,890 9.7%
Cost of revenue, excluding
depreciation and amortization 82,187 75,814 6,373 8.4%
--------- --------- -------
Gross margin $ 97,085 $ 87,568 $ 9,517 10.9%
Gross margin percentage 54.2% 53.6% 0.6% (4)
Home health total admissions (5) 29.2 28.4 0.8 2.8%
Home health episodic admissions
(6) 22.3 21.5 0.8 3.7%
Home health total episodes (7) 37.4 35.0 2.4 6.9%
Home health episodic mix (8) 76.4% 75.7% 0.7% (10)
Home health revenue per completed
episode (9) $ 3,200 $ 3,089 $ 111 3.6%
MS
---------------------------------------------------
For the nine-month periods ended
---------------------------------------------------
September September
(dollars and UPS in thousands) 27, 2025 28, 2024 Change % Change
---------- ---------- -------- --------
Revenue $ 131,006 $ 128,834 $ 2,172 1.7%
Cost of revenue, excluding
depreciation and amortization 72,800 73,412 (612) -0.8%
--------- --------- -------
Gross margin $ 58,206 $ 55,422 $ 2,784 5.0%
Gross margin percentage 44.4% 43.0% 1.4% (4)
Unique patients served ("UPS") 271 278 (7) -2.5%
Revenue rate $ 483.42 $ 463.43 $ 19.99 4.2% (1)
Cost of revenue rate $ 268.63 $ 264.07 $ 4.56 1.7% (2)
Spread rate $ 214.79 $ 199.36 $ 15.43 7.5% (3)
1) Represents the period over period change in revenue rate, plus the change in revenue rate attributable to the change in volume.
2) Represents the period over period change in cost of revenue rate, plus the change in cost of revenue rate attributable to the change in volume.
3) Represents the period over period change in spread rate, plus the change in spread rate attributable to the change in volume.
4) Represents the change in margin percentage year over year (or quarter over quarter).
5) Represents home health episodic and other admissions.
6) Represents home health episodic admissions.
7) Represents episodic admissions and recertifications.
8) Represents the ratio of home health episodic admissions to home health total admissions.
9) Represents Medicare revenue per completed episode.
10) Represents the change in home health episodic mix year over year (or quarter over quarter).
The following table reconciles gross margin and gross margin percentage to Field contribution and Field contribution margin:
For the three-month periods For the nine-month periods
ended ended
---------------------------- ---------------------------
September September September September
(dollars in thousands) 27, 2025 28, 2024 27, 2025 28, 2024
---------- ------------ ---------- -----------
Gross margin $ 202,824 $ 159,699 $ 597,182 $ 463,820
Gross margin
percentage 32.6% 31.4% 33.7% 30.8%
Branch and regional
administrative
expenses 95,399 88,184 276,855 264,070
--------- ----------- --------- ----------
Field contribution $ 107,425 $ 71,515 $ 320,327 $ 199,750
Field contribution
margin 17.3% 14.0% 18.1% 13.3%
Revenue $ 621,942 $ 509,023 $1,770,719 $ 1,504,634
The following table reconciles net income (loss) to EBITDA and Adjusted EBITDA:
For the three-month For the nine-month
periods ended periods ended
------------------------- ------------------------
September September September September
(dollars in thousands) 27, 2025 28, 2024 27, 2025 28, 2024
---------- ------------ ---------- -----------
Net income (loss) $ 14,064 $ (42,843) $ 46,282 $ (40,109)
Interest expense, net 34,301 39,145 106,378 118,208
Income tax (benefit)
expense (647) 15,511 21,421 18,246
Depreciation and
amortization 2,599 2,587 7,810 8,332
--------- ----------- --------- ----------
EBITDA 50,317 14,400 181,891 104,677
Goodwill, intangible
and other long-lived
asset impairment 418 2,904 738 5,304
Non-cash share-based
compensation 4,960 4,902 21,115 12,483
Loss on debt
extinguishment 5,862 - 5,862 -
Fees related to debt
modifications 15,964 - 15,964 -
Interest rate
derivatives (1) 9 22,141 5,532 (2,218)
Acquisition-related
costs (2) (1,175) 150 2,332 150
Integration costs (3) 2,250 262 4,793 949
Legal costs and
settlements associated
with acquisition
matters (4) 1,550 848 3,228 1,423
Restructuring (5) 52 1,599 468 4,787
Other legal matters (6) 12 214 (5,926) 1,112
Other adjustments (7) (91) 421 (141) (296)
--------- ----------- --------- ----------
Total adjustments $ 29,811 $ 33,441 $ 53,965 $ 23,694
--------- ----------- --------- ----------
Adjusted EBITDA $ 80,128 $ 47,841 $ 235,856 $ 128,371
========= =========== ========= ==========
The following table reconciles net income (loss) to adjusted net income and presents adjusted net income per diluted share:
For the three-month For the nine-month
periods ended periods ended
------------------------- ------------------------
(dollars in thousands,
except share and per September September September September
share data) 27, 2025 28, 2024 27, 2025 28, 2024
---------- ------------ ---------- -----------
Net income (loss) $ 14,064 $ (42,843) $ 46,282 $ (40,109)
Income tax (benefit)
expense (647) 15,511 21,421 18,246
Goodwill, intangible
and other
long-lived asset
impairment 418 2,904 738 5,304
Non-cash share-based
compensation 4,960 4,902 21,115 12,483
Loss on
extinguishment of
debt 5,862 - 5,862 -
Fees related to debt
modifications 15,964 - 15,964 -
Interest rate
derivatives (1) 9 22,141 5,532 (2,218)
Acquisition-related
costs (2) (1,175) 150 2,332 150
Integration costs
(3) 2,250 262 4,793 949
Legal costs and
settlements
associated with
acquisition matters
(4) 1,550 848 3,228 1,423
Restructuring (5) 52 1,599 468 4,787
Other legal matters
(6) 12 214 (5,926) 1,112
Other adjustments
(7) (91) 421 (141) (296)
--------- ----------- --------- ----------
Total adjustments 29,164 48,952 75,386 41,940
--------- ----------- --------- ----------
Adjusted pre-tax income 43,228 6,109 121,668 1,831
Income tax expense on
adjusted pre-tax
income (8) (10,807) (1,527) (30,417) (458)
--------- ----------- --------- ----------
Adjusted net income $ 32,421 $ 4,582 $ 91,251 $ 1,373
========= =========== ========= ==========
Weighted average shares
outstanding, diluted
((9) 222,234 200,984 211,920 197,844
Adjusted net income per
diluted share (10) $ 0.15 $ 0.02 $ 0.43 $ 0.01
The following footnotes are applicable to tables above that reconcile (i) net income (loss) to EBITDA and Adjusted EBITDA and (ii) net income (loss) to adjusted net income.
(1) Represents valuation adjustments and settlements associated
with interest rate derivatives that are not included
in interest expense, net. Such items are included
in other (expense) income.
(2) Represents transaction costs incurred in connection
with planned, completed, or terminated acquisitions,
which include investment banking fees, legal diligence
and related documentation costs, and finance and accounting
diligence and documentation, as presented on the Company's
consolidated statements of operations.
(3) Represents (i) costs associated with our Integration
Management Office, which focuses on our integration
efforts and transformational projects such as systems
conversions and implementations, material cost reduction
and restructuring projects, among other things, of
$0.5 million and $1.2 million for the three and nine-month
periods ended September 27, 2025, respectively, and
$0.3 million and $0.8 million for the three and nine-month
periods ended September 28, 2024, respectively; and
(ii) transitionary costs incurred to integrate acquired
companies into our field and corporate operations
of $1.8 million and $3.6 million for the three and
nine-month periods ended September 27, 2025, respectively,
and $0.1 million for the nine-month period ended September
28, 2024. No such cost was recorded during the three-month
period ended September 28, 2024. Transitionary costs
incurred to integrate acquired companies include IT
consulting costs and related integration support costs;
salary, severance and retention costs associated with
duplicative acquired company personnel until such
personnel are exited from the Company; accounting,
legal and consulting costs; expenses and impairments
related to the closure and consolidation of overlapping
markets of acquired companies, including lease termination
and relocation costs; costs associated with terminating
legacy acquired company contracts and systems; and
one-time costs associated with rebranding our acquired
companies and locations to the Aveanna brand.
(4) Represents legal and forensic costs, as well as settlements
associated with resolving legal matters arising during
or as a result of our acquisition-related activities.
This primarily includes (i) costs of $1.3 million
and $2.6 million for the three and nine-month periods
ended September 27, 2025, respectively, and $0.4 million
and $1.0 million for the three and nine-month periods
ended September 28, 2024, respectively, to comply
with the U.S. Department of Justice, Antitrust Division's
grand jury subpoena related to nurse wages and hiring
activities in certain of our markets, in connection
with a terminated transaction.
(5) Represents costs associated with restructuring our
branch and regional administrative footprint as well
as our corporate overhead infrastructure costs in
order to appropriately size our resources to current
volumes, including: (i) branch and regional salary
and severance costs; (ii) corporate salary and severance
costs; and (iii) rent and lease termination costs
associated with the closure of certain office locations.
(6) Represents activity related to accrued legal settlements
and the related costs and expenses associated with
certain judgments and arbitration awards rendered
against the Company where certain insurance coverage
is in dispute. The Company released a legal reserve
related to a certain accrued legal settlement during
the nine-month period ended September 27, 2025.
(7) Represents: (i) other costs or (income) that are either
non-cash or non-core to the Company's ongoing operations
of $(0.1) million and $(0.1) million for the three
and nine-month periods ended September 27, 2025, respectively,
and $0.4 million and $(0.3) million for the three
and nine-month periods ended September 28, 2024, respectively.
(8) Derived utilizing a combined federal and state statutory
rate of 25% for the three and nine-month periods ended
September 27, 2025, and September 28, 2024, respectively,
and applied to the respective adjusted pre-tax income.
(9) Weighted average shares outstanding, diluted for the
three and nine-month periods ended September 28, 2024
include 7.6 million and 5.1 million additional dilutive
shares, respectively, that are not presented within
our consolidated results of operations due to net
loss for the three and nine-month periods ended September
28, 2024, as their inclusion in calculating net loss
per share would be antidilutive. The dilutive shares
are included within the calculation of adjusted net
income per dilutive share for the three and nine-month
periods ended September 28, 2024 above, as their effect
would have been dilutive.
(10) Adjustments used to reconcile net income (loss) per
diluted share on a GAAP basis to adjusted net income
per diluted share are comprised of the same adjustments,
inclusive of the tax impact, used to reconcile net
income (loss) to adjusted net income divided by the
weighted-average diluted shares outstanding during
the period.
The following table reconciles net income (loss) to adjusted net income and presents adjusted net income per diluted share:
For the three-month periods ended For the nine-month periods ended
----------------------------------------------- --------------------------------------------------
September 27, 2025 September 28, 2024 September 27, 2025 September 28, 2024
--------------------- ----------------------- --------------------- --------------------------
Per Per
Diluted Per Diluted Diluted Per Diluted
(dollars in thousands) Dollars Share Dollars Share Dollars Share Dollars Share
-------- ---------- -------- ------------ -------- ---------- -------- ---------------
Net income (loss) $ 14,064 $ 0.06 $(42,843) $ (0.21) $ 46,282 $ 0.22 $(40,109) $ (0.20)
Total adjustments (1) 29,164 0.14 48,952 0.24 75,386 0.36 41,940 0.21
Income tax expense
benefit on adjusted
pre-tax income (10,807) (0.05) (1,527) (0.01) (30,417) (0.15) (458) (0.00)
------- --------- ------- ----------- ------- --------- ------- ------------
Adjusted net income $ 32,421 $ 0.15 $ 4,582 $ 0.02 $ 91,251 $ 0.43 $ 1,373 $ 0.01
======= ========= ======= =========== ======= ========= ======= === =======
(1) Total adjustments agree to the net income (loss) to adjusted net income table above.
The table below reflects the increase or decrease, and aggregate impact, to the line items included on our consolidated statements of operations based upon the adjustments used in arriving at Adjusted EBITDA from EBITDA for the periods indicated.
For the three-month For the nine-month
periods ended periods ended
------------------------- ------------------------
September September September September
(dollars in thousands) 27, 2025 28, 2024 27, 2025 28, 2024
---------- ------------ ---------- -----------
Cost of revenue,
excluding depreciation
and amortization $ 353 $ 281 $ (5,225) $ 457
Branch and regional
administrative
expenses 2,003 2,515 6,841 5,389
Corporate expenses 22,346 5,421 37,945 14,756
Acquisition-related
costs (1,175) 150 2,331 150
Other operating expense (12) (8) 34 2,112
Loss on debt
extinguishment 5,862 - 5,862 -
Other expense (income) 434 25,082 6,177 830
--------- ----------- --------- ----------
Total adjustments $ 29,811 $ 33,441 $ 53,965 $ 23,694
========= =========== ========= ==========
The following table reconciles the net cash used in operating activities to free cash flow:
For the nine-month period ended
---------------------------------
(dollars in thousands) September 27, 2025
---------------------------------
Net cash provided by operations $ 76,137
Purchases of property and equipment,
and software (5,496)
Proceeds from issuance of term loans,
net of debt issuance costs 1,317,743
Principal payments of term loans (1,305,550)
Principal payments of notes payable
and financing lease obligations (5,854)
Settlements with swap counterparties 9,170
--- ----------------------------
Free cash flow $ 86,150
=== ============================
Investor Contact
Matt Buckhalter
Chief Financial Officer
Ir@aveanna.com
(END) Dow Jones Newswires
November 06, 2025 06:30 ET (11:30 GMT)