Acadia Healthcare Cuts Full-Year Outlook Citing Higher Legal Expenses

Dow Jones
Dec 03, 2025

By Terell Wright

 

Acadia Healthcare lowered its full-year outlook, citing higher-than-expected costs from patient-related litigation.

The behavioral healthcare services company lowered its full-year adjusted earnings guidance to a range of $1.94 to $2.04 a share, down from the previous range of $2.35 to $2.45 a share. Analysts polled by FactSet expect an adjusted earnings of $2.35 a share.

Acadia also cut its adjusted earnings before interest, taxes, depreciation, and amortization outlook to a range of $601 million to $611 million, compared to its prior guidance of $650 million to $660 million, reflecting an extra $49 million in legal costs.

Shares fell 23% to $12.74 in after hours trading. The stock had lost 58% so far this year through Tuesday's close.

Chief Financial Officer Todd Young said the company expected higher legal costs in 2025, but the final amount was much higher than anticipated.

The company said increased claims frequency, higher settlement costs for old claims and less favorable reinsurance terms raised legal costs.

Acadia Healthcare now projects its full-year professional and general liability expenses of approximately $116 million, compared to $54 million in 2024.

 

Write to Terell Wright at terell.wright@wsj.com

 

(END) Dow Jones Newswires

December 02, 2025 17:44 ET (22:44 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10