Aveanna Healthcare Holdings Announces Second Quarter Financial Results and Revised 2025 Outlook
Aveanna Healthcare Holdings (NASDAQ: AVAH), a leading home care platform, reported strong Q2 2025 financial results with significant growth across all divisions. Revenue increased 16.8% to $589.6 million, while net income surged 94.3% to $27.0 million. Adjusted EBITDA grew 93.6% to $88.4 million.
The company raised its full-year 2025 guidance, projecting revenue of over $2.3 billion (up from $2.15 billion) and Adjusted EBITDA of over $270 million (up from $207 million). The quarter was marked by the strategic acquisition of Thrive Skilled Pediatric Care, expanding Aveanna's market presence and core services.
As of June 28, 2025, Aveanna maintained a strong liquidity position with $100.7 million in cash and total available borrowing capacity of $253.3 million across its facilities.
Aveanna Healthcare Holdings (NASDAQ: AVAH), una piattaforma leader nell'assistenza domiciliare, ha riportato solidi risultati finanziari nel secondo trimestre 2025 con una crescita significativa in tutte le divisioni. I ricavi sono aumentati del 16,8% raggiungendo 589,6 milioni di dollari, mentre l'utile netto 猫 cresciuto del 94,3% arrivando a 27,0 milioni di dollari. L'EBITDA rettificato 猫 salito del 93,6% a 88,4 milioni di dollari.
L'azienda ha rivisto al rialzo le previsioni per l'intero anno 2025, prevedendo ricavi superiori a 2,3 miliardi di dollari (rispetto ai 2,15 miliardi precedenti) e un EBITDA rettificato superiore a 270 milioni di dollari (in aumento rispetto ai 207 milioni). Il trimestre 猫 stato caratterizzato dall'acquisizione strategica di Thrive Skilled Pediatric Care, che ha ampliato la presenza di mercato e i servizi principali di Aveanna.
Al 28 giugno 2025, Aveanna manteneva una solida posizione di liquidit脿 con 100,7 milioni di dollari in contanti e una capacit脿 di indebitamento totale disponibile di 253,3 milioni di dollari attraverso le sue strutture.
Aveanna Healthcare Holdings (NASDAQ: AVAH), una plataforma l铆der en atenci贸n domiciliaria, report贸 s贸lidos resultados financieros en el segundo trimestre de 2025 con un crecimiento significativo en todas sus divisiones. Los ingresos aumentaron un 16,8% hasta 589,6 millones de d贸lares, mientras que el ingreso neto se dispar贸 un 94,3% alcanzando los 27,0 millones de d贸lares. El EBITDA ajustado creci贸 un 93,6% hasta 88,4 millones de d贸lares.
La compa帽铆a elev贸 sus previsiones para todo el a帽o 2025, proyectando ingresos de m谩s de 2,3 mil millones de d贸lares (desde 2,15 mil millones) y un EBITDA ajustado de m谩s de 270 millones de d贸lares (desde 207 millones). El trimestre estuvo marcado por la adquisici贸n estrat茅gica de Thrive Skilled Pediatric Care, ampliando la presencia en el mercado y los servicios principales de Aveanna.
Al 28 de junio de 2025, Aveanna manten铆a una s贸lida posici贸n de liquidez con 100,7 millones de d贸lares en efectivo y una capacidad total de endeudamiento disponible de 253,3 millones de d贸lares en sus instalaciones.
Aveanna Healthcare Holdings (NASDAQ: AVAH)電� 臧�鞝� 臧勴樃 攵勳暭鞚� 靹犽弰 頂岆灚韽检溂搿滌劀 2025雲� 2攵勱赴 臧曤牓頃� 鞛 鞁れ爜鞚� 氤搓碃頄堨溂氅� 氇摖 攵�氍胳棎靹� 靸侂嫻頃� 靹膘灔鞚� 旮半頄堨姷雼堧嫟. 毵れ稖鞚� 16.8% 歃濌皜頃� 5鞏� 8,960毵� 雼煬毳� 旮半頄堦碃, 靾滌澊鞚奠潃 94.3% 旮夓頃橃棳 2,700毵� 雼煬鞐� 雼枅鞀惦媹雼�. 臁办爼 EBITDA電� 93.6% 歃濌皜頃� 8,840毵� 雼煬毳� 旮半頄堨姷雼堧嫟.
須岇偓電� 2025雲� 鞝勳泊 鞐瓣皠 鞝勲鞚� 靸來枼 臁办爼頃橃棳 毵れ稖鞚� 23鞏� 雼煬 鞚挫儊(鞚挫爠 21鞏� 5觳滊 雼煬 雽�牍�), 臁办爼 EBITDA毳� 2鞏� 7,000毵� 雼煬 鞚挫儊(鞚挫爠 2鞏� 700毵� 雼煬 雽�牍�)鞙茧 鞓堨儊頄堨姷雼堧嫟. 鞚措矆 攵勱赴電� 鞝勲灥鞝� 鞚胳垬鞚� Thrive Skilled Pediatric Care毳� 韱淀暣 Aveanna鞚� 鞁滌灔 鞛呾鞕� 頃奠嫭 靹滊箘鞀るゼ 頇曥灔頃� 瓴冹澊 韸轨鞛呺媹雼�.
2025雲� 6鞗� 28鞚� 旮办, Aveanna電� 1鞏� 70毵� 雼煬鞚� 順勱笀瓿� 齑� 2鞏� 5,330毵� 雼煬鞚� 雽�於� 臧�電� 頃滊弰毳� 鞙犾頃橂┌ 臧曤牓頃� 鞙犽彊靹� 鞙勳箻毳� 鞙犾頃橁碃 鞛堨姷雼堧嫟.
Aveanna Healthcare Holdings (NASDAQ: AVAH), une plateforme leader dans les soins 脿 domicile, a annonc茅 de solides r茅sultats financiers pour le deuxi猫me trimestre 2025 avec une croissance significative dans toutes ses divisions. Le chiffre d'affaires a augment茅 de 16,8% pour atteindre 589,6 millions de dollars, tandis que le b茅n茅fice net a bondi de 94,3% pour atteindre 27,0 millions de dollars. L'EBITDA ajust茅 a progress茅 de 93,6% pour atteindre 88,4 millions de dollars.
L'entreprise a relev茅 ses pr茅visions pour l'ensemble de l'ann茅e 2025, anticipant un chiffre d'affaires de plus de 2,3 milliards de dollars (contre 2,15 milliards pr茅c茅demment) et un EBITDA ajust茅 de plus de 270 millions de dollars (contre 207 millions). Le trimestre a 茅t茅 marqu茅 par l'acquisition strat茅gique de Thrive Skilled Pediatric Care, 茅largissant la pr茅sence sur le march茅 et les services principaux d'Aveanna.
Au 28 juin 2025, Aveanna maintenait une solide position de liquidit茅 avec 100,7 millions de dollars en liquidit茅s et une capacit茅 totale d'emprunt disponible de 253,3 millions de dollars 脿 travers ses installations.
Aveanna Healthcare Holdings (NASDAQ: AVAH), eine f眉hrende Plattform f眉r h盲usliche Pflege, meldete starke Finanzergebnisse f眉r das zweite Quartal 2025 mit erheblichem Wachstum in allen Gesch盲ftsbereichen. Der Umsatz stieg um 16,8% auf 589,6 Millionen US-Dollar, w盲hrend der Nettogewinn um 94,3% auf 27,0 Millionen US-Dollar zunahm. Das bereinigte EBITDA wuchs um 93,6% auf 88,4 Millionen US-Dollar.
Das Unternehmen erh枚hte seine Prognose f眉r das Gesamtjahr 2025 und erwartet nun einen Umsatz von 眉ber 2,3 Milliarden US-Dollar (zuvor 2,15 Milliarden) und ein bereinigtes EBITDA von 眉ber 270 Millionen US-Dollar (zuvor 207 Millionen). Das Quartal war gepr盲gt von der strategischen 脺bernahme von Thrive Skilled Pediatric Care, wodurch Aveannas Marktpr盲senz und Kernleistungen erweitert wurden.
Zum 28. Juni 2025 verf眉gte Aveanna 眉ber eine starke Liquidit盲tsposition mit 100,7 Millionen US-Dollar in bar und einer insgesamt verf眉gbaren Kreditlinie von 253,3 Millionen US-Dollar 眉ber seine Einrichtungen hinweg.
- Revenue growth of 16.8% year-over-year to $589.6 million
- Net income increased 94.3% to $27.0 million
- Adjusted EBITDA grew 93.6% to $88.4 million
- Gross margin improved to 35.8% from 31.3% year-over-year
- Strategic acquisition of Thrive Skilled Pediatric Care expanding market presence
- Raised full-year 2025 guidance for both revenue and Adjusted EBITDA
- High debt level of $1.47 billion as of Q2 2025
- Significant interest rate exposure requiring hedging instruments
- Operating cash flow of $42.9 million against $1.47 billion debt indicates high leverage
Insights
Aveanna delivers exceptional Q2 with 93.6% EBITDA growth and raises 2025 guidance amid successful transformation strategy.
Aveanna Healthcare's Q2 results demonstrate remarkable financial momentum across all three business segments. Revenue jumped
The Pediatric Services Division (PDS) drove most of the growth with a
Management's confidence is evident in their significantly raised 2025 guidance, now projecting annual revenue exceeding
The acquisition of Thrive Skilled Pediatric Care demonstrates Aveanna's strategic expansion within their core pediatric services market. With
Aveanna has effectively hedged its interest rate exposure on
- Second Quarter Revenue was
$589.6 million , a16.8% increase over the prior year period - Second Quarter Net income was
$27.0 million , a94.3% increase over the prior year period - Adjusted EBITDA for Q2 2025 was
$88.4 million , a93.6% increase over the prior year period - Increased Full Year 2025 Revenue guidance greater than
$2.3 billion , updated from greater than$2.15 billion - Increased Full Year 2025 Adjusted EBITDA guidance greater than
$270 million , updated from greater than$207 million
- Increased Full Year 2025 Adjusted EBITDA guidance greater than
ATLANTA, Aug. 07, 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 six-month periods ended June 28, 2025.
Jeff Shaner, Chief Executive Officer, commented, 鈥淥ur second quarter results reflect the continued positive momentum in all three operating divisions as we navigate the third year of our Strategic Transformation. The quarter was highlighted by revenue and adjusted EBITDA growth of
Three-Month Periods Ended June 28, 2025 and June 29, 2024
Revenue was
Gross margin was
Net income was
Adjusted EBITDA was
Six-Month Period Ended June 28, 2025 and June 29, 2024
Revenue was
Gross margin was
Net income was
Adjusted EBITDA was
Liquidity, Cash Flow, and Debt
- As of June 28, 2025, we had cash of
$100.7 million and incremental borrowing capacity of$106.3 million under our securitization facility. Our revolver was undrawn, with approximately$147.0 million of borrowing capacity and approximately$23.3 million of outstanding letters of credit. - 2025 net cash provided by operating activities was
$42.9 million . Free cash flow was$36.9 million for 2025. See 鈥淣on-GAAP Financial Measures - Free cash flow鈥� below. - As of June 28, 2025 we had bank debt of
$1,469.7 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 at2.96% .
Matt Buckhalter, Chief Financial Officer, commented 鈥淥ur second-quarter results are highlighted by revenue and Adjusted EBITDA growth of
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
$2.3 billion , updated from greater than$2.15 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
$270 million , updated from greater than$207 million
Non-GAAP Financial Measures
In addition to our results of operations prepared in accordance with U.S. generally accepted accounting principles (鈥淕AAP鈥�), 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 (loss) and Adjusted net income (loss) per diluted share
Adjusted net income (loss) 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, 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 (loss) 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 (loss) per diluted share represents adjusted net income (loss) 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 (loss) and adjusted net income (loss) 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, 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, August 7, 2025, at 10:00 a.m. Eastern Time to discuss our second 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 August 14, 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 13754011. A live webcast of our conference call will also be available under the Investor Relations section of our website: . 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 鈥渂elieve,鈥� 鈥渆xpect,鈥� 鈥渁nticipate,鈥� 鈥渋ntend,鈥� 鈥減lan,鈥� 鈥渆stimate,鈥� 鈥渟eek,鈥� 鈥渨ill,鈥� 鈥渕ay,鈥� 鈥渟hould,鈥� 鈥渨ould,鈥� 鈥減redict,鈥� 鈥減roject,鈥� 鈥減otential,鈥� 鈥渃ontinue,鈥� 鈥渃ould,鈥� 鈥渄esign,鈥� 鈥済uidance,鈥� 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; acquisition and integration of acquired businesses or assets; 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, acquire, successfully integrate and obtain financing for strategic and accretive acquisitions; 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,听and other risks set forth under the heading 鈥淩isk Factors鈥� in Aveanna鈥檚 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听. 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鈥檚 normal caregiver. The Company鈥檚 services are designed to provide a high quality, lower cost alternative to prolonged hospitalization. For more information, please visit听.听
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:
| 听 | For the six-month periods ended | 听 | |||||
| (dollars in thousands) | June 28, 2025 | 听 | 听 | June 29, 2024 | 听 | ||
| Net cash provided by (used in) operating activities | $ | 42,937 | 听 | 听 | $ | (10,163 | ) |
| Net cash used in investing activities | $ | (18,330 | ) | 听 | $ | (2,577 | ) |
| Net cash (used in) provided by financing activities | $ | (8,157 | ) | 听 | $ | 16,459 | 听 |
| Cash and cash equivalents at beginning of period | $ | 84,288 | 听 | 听 | $ | 43,942 | 听 |
| Cash and cash equivalents at end of period | $ | 100,738 | 听 | 听 | $ | 47,661 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
The following table presents听our long-term indebtedness as of听June 28, 2025:
| (dollars in thousands) | 听 | 听 | 听 | 听 | |
| Instrument | Interest Rate | 听 | June 28, 2025 | 听 | |
| 2021 Extended Term Loan(1) | S + | 听 | $ | 885,950 | 听 |
| Second Lien Term Loan(1) | S + | 听 | 听 | 415,000 | 听 |
| Revolving Credit Facility(1) | S + | 听 | 听 | - | 听 |
| Securitization Facility | S + | 听 | 听 | 168,750 | 听 |
| Total indebtedness | 听 | 听 | $ | 1,469,700 | 听 |
| (1)S = Greater of | 听 | 听 | 听 | 听 | |
| 听 | 听 | 听 | 听 | 听 | |
Results of Operations
The following table summarizes our consolidated results of operations for the periods indicated (amounts in thousands, except per share data):
| 听 | For the three-month periods ended | 听 | For the six-month periods ended | 听 | ||||||||
| 听 | June 28, 2025 | 听 | June 29, 2024 | 听 | June 28, 2025 | 听 | June 29, 2024 | 听 | ||||
| Revenue | $ | 589,553 | 听 | $ | 504,958 | 听 | $ | 1,148,777 | 听 | $ | 995,611 | 听 |
| Cost of revenue, excluding depreciation and amortization | 听 | 378,753 | 听 | 听 | 346,691 | 听 | 听 | 754,419 | 听 | 听 | 691,490 | 听 |
| Branch and regional administrative expenses | 听 | 90,069 | 听 | 听 | 87,972 | 听 | 听 | 181,456 | 听 | 听 | 175,886 | 听 |
| Corporate expenses | 听 | 34,529 | 听 | 听 | 30,245 | 听 | 听 | 72,034 | 听 | 听 | 60,087 | 听 |
| Depreciation and amortization | 听 | 2,617 | 听 | 听 | 2,833 | 听 | 听 | 5,211 | 听 | 听 | 5,745 | 听 |
| Acquisition-related costs | 听 | 3,400 | 听 | 听 | - | 听 | 听 | 3,506 | 听 | 听 | - | 听 |
| Other operating expense | 听 | 151 | 听 | 听 | 91 | 听 | 听 | 316 | 听 | 听 | 2,411 | 听 |
| Operating income | 听 | 80,034 | 听 | 听 | 37,126 | 听 | 听 | 131,835 | 听 | 听 | 59,992 | 听 |
| Interest income | 听 | 129 | 听 | 听 | 95 | 听 | 听 | 261 | 听 | 听 | 197 | 听 |
| Interest expense | 听 | (36,003 | ) | 听 | (39,613 | ) | 听 | (72,338 | ) | 听 | (79,260 | ) |
| Other (expense) income | 听 | (22 | ) | 听 | 6,371 | 听 | 听 | (5,472 | ) | 听 | 24,540 | 听 |
| Income before income taxes | 听 | 44,138 | 听 | 听 | 3,979 | 听 | 听 | 54,286 | 听 | 听 | 5,469 | 听 |
| Income tax (expense) benefit | 听 | (17,113 | ) | 听 | 9,927 | 听 | 听 | (22,068 | ) | 听 | (2,735 | ) |
| Net income | $ | 27,025 | 听 | $ | 13,906 | 听 | $ | 32,218 | 听 | $ | 2,734 | 听 |
| Net income per share: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| Net income per share, basic | $ | 0.13 | 听 | $ | 0.07 | 听 | $ | 0.16 | 听 | $ | 0.01 | 听 |
| Weighted average shares of common stock outstanding, basic | 听 | 200,968 | 听 | 听 | 192,600 | 听 | 听 | 197,819 | 听 | 听 | 192,420 | 听 |
| Net income per share, diluted | $ | 0.13 | 听 | $ | 0.07 | 听 | $ | 0.16 | 听 | $ | 0.01 | 听 |
| Weighted average shares of common stock outstanding, diluted | 听 | 210,442 | 听 | 听 | 196,869 | 听 | 听 | 206,763 | 听 | 听 | 196,274 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
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:
| 听 | 听 | 听 | ||||||||||
| 听 | For the three-month periods ended | 听 | ||||||||||
| (dollars in thousands) | June 28, 2025 | 听 | June 29, 2024 | 听 | Change | 听 | % Change | 听 | ||||
| Revenue | $ | 589,553 | 听 | $ | 504,958 | 听 | $ | 84,595 | 听 | 听 | 16.8 | % |
| Cost of revenue, excluding depreciation and amortization | 听 | 378,753 | 听 | 听 | 346,691 | 听 | 听 | 32,062 | 听 | 听 | 9.2 | % |
| Gross margin | $ | 210,800 | 听 | $ | 158,267 | 听 | $ | 52,533 | 听 | 听 | 33.2 | % |
| Gross margin percentage | 听 | 35.8 | % | 听 | 31.3 | % | 听 | 听 | 听 | 听 | ||
| Branch and regional administrative expenses | 听 | 90,069 | 听 | 听 | 87,972 | 听 | 听 | 2,097 | 听 | 听 | 2.4 | % |
| Field contribution | $ | 120,731 | 听 | $ | 70,295 | 听 | $ | 50,436 | 听 | 听 | 71.7 | % |
| Field contribution margin | 听 | 20.5 | % | 听 | 13.9 | % | 听 | 听 | 听 | 听 | ||
| Corporate expenses | $ | 34,529 | 听 | $ | 30,245 | 听 | $ | 4,284 | 听 | 听 | 14.2 | % |
| As a percentage of revenue | 听 | 5.9 | % | 听 | 6.0 | % | 听 | 听 | 听 | 听 | ||
| Operating income | $ | 80,034 | 听 | $ | 37,126 | 听 | $ | 42,908 | 听 | 听 | 115.6 | % |
| As a percentage of revenue | 听 | 13.6 | % | 听 | 7.4 | % | 听 | 听 | 听 | 听 | ||
| 听 | For the six-month periods ended | 听 | ||||||||||
| (dollars in thousands) | June 28, 2025 | 听 | June 29, 2024 | 听 | Change | 听 | % Change | 听 | ||||
| Revenue | $ | 1,148,777 | 听 | $ | 995,611 | 听 | $ | 153,166 | 听 | 听 | 15.4 | % |
| Cost of revenue, excluding depreciation and amortization | 听 | 754,419 | 听 | 听 | 691,490 | 听 | 听 | 62,929 | 听 | 听 | 9.1 | % |
| Gross margin | $ | 394,358 | 听 | $ | 304,121 | 听 | $ | 90,237 | 听 | 听 | 29.7 | % |
| Gross margin percentage | 听 | 34.3 | % | 听 | 30.5 | % | 听 | 听 | 听 | 听 | ||
| Branch and regional administrative expenses | 听 | 181,456 | 听 | 听 | 175,886 | 听 | 听 | 5,570 | 听 | 听 | 3.2 | % |
| Field contribution | $ | 212,902 | 听 | $ | 128,235 | 听 | $ | 84,667 | 听 | 听 | 66.0 | % |
| Field contribution margin | 听 | 18.5 | % | 听 | 12.9 | % | 听 | 听 | 听 | 听 | ||
| Corporate expenses | $ | 72,034 | 听 | $ | 60,087 | 听 | $ | 11,947 | 听 | 听 | 19.9 | % |
| As a percentage of revenue | 听 | 6.3 | % | 听 | 6.0 | % | 听 | 听 | 听 | 听 | ||
| Operating income | $ | 131,835 | 听 | $ | 59,992 | 听 | $ | 71,843 | 听 | 听 | 119.8 | % |
| As a percentage of revenue | 听 | 11.5 | % | 听 | 6.0 | % | 听 | 听 | 听 | 听 | ||
(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:
| 听 | PDS | 听 | 听 | ||||||||||
| 听 | For the three-month periods ended | 听 | 听 | ||||||||||
| (dollars and hours in thousands) | June 28, 2025 | 听 | June 29, 2024 | 听 | Change | 听 | % Change | 听 | 听 | ||||
| Revenue | $ | 486,012 | 听 | $ | 407,851 | 听 | $ | 78,161 | 听 | 听 | 19.2 | % | 听 |
| Cost of revenue, excluding depreciation and amortization | 听 | 328,078 | 听 | 听 | 296,983 | 听 | 听 | 31,095 | 听 | 听 | 10.5 | % | 听 |
| Gross margin | $ | 157,934 | 听 | $ | 110,868 | 听 | $ | 47,066 | 听 | 听 | 42.5 | % | 听 |
| Gross margin percentage | 听 | 32.5 | % | 听 | 27.2 | % | 听 | 听 | 听 | 5.3 | % | (4) | |
| Hours | 听 | 11,053 | 听 | 听 | 10,336 | 听 | 听 | 717 | 听 | 听 | 6.9 | % | 听 |
| Revenue rate | $ | 43.97 | 听 | $ | 39.46 | 听 | $ | 4.51 | 听 | 听 | 12.3 | % | (1) |
| Cost of revenue rate | $ | 29.68 | 听 | $ | 28.73 | 听 | $ | 0.95 | 听 | 听 | 3.6 | % | (2) |
| Spread rate | $ | 14.29 | 听 | $ | 10.73 | 听 | $ | 3.56 | 听 | 听 | 35.6 | % | (3) |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| 听 | HHH | 听 | 听 | ||||||||||
| 听 | For the three-month periods ended | 听 | 听 | ||||||||||
| (dollars and admissions/episodes in thousands) | June 28, 2025 | 听 | June 29, 2024 | 听 | Change | 听 | % Change | 听 | 听 | ||||
| Revenue | $ | 60,112 | 听 | $ | 54,630 | 听 | $ | 5,482 | 听 | 听 | 10.0 | % | 听 |
| Cost of revenue, excluding depreciation and amortization | 听 | 27,048 | 听 | 听 | 25,227 | 听 | 听 | 1,821 | 听 | 听 | 7.2 | % | 听 |
| Gross margin | $ | 33,064 | 听 | $ | 29,403 | 听 | $ | 3,661 | 听 | 听 | 12.5 | % | 听 |
| Gross margin percentage | 听 | 55.0 | % | 听 | 53.8 | % | 听 | 听 | 听 | 1.2 | % | (4) | |
| Home health total admissions(5) | 听 | 9.8 | 听 | 听 | 9.4 | 听 | 听 | 0.4 | 听 | 听 | 4.3 | % | 听 |
| Home health episodic admissions(6) | 听 | 7.3 | 听 | 听 | 7.1 | 听 | 听 | 0.2 | 听 | 听 | 2.8 | % | 听 |
| Home health total episodes(7) | 听 | 12.4 | 听 | 听 | 11.6 | 听 | 听 | 0.8 | 听 | 听 | 6.9 | % | 听 |
| Home health episodic mix(8) | 听 | 74.5 | % | 听 | 75.5 | % | 听 | 听 | 听 | -1.0 | % | 听 | |
| Home health revenue per completed episode(9) | $ | 3,231 | 听 | $ | 3,093 | 听 | $ | 138 | 听 | 听 | 4.5 | % | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| 听 | MS | 听 | 听 | ||||||||||
| 听 | For the three-month periods ended | 听 | 听 | ||||||||||
| (dollars and UPS in thousands) | June 28, 2025 | 听 | June 29, 2024 | 听 | Change | 听 | % Change | 听 | 听 | ||||
| Revenue | $ | 43,429 | 听 | $ | 42,477 | 听 | $ | 952 | 听 | 听 | 2.2 | % | 听 |
| Cost of revenue, excluding depreciation and amortization | 听 | 23,627 | 听 | 听 | 24,481 | 听 | 听 | (854 | ) | 听 | -3.5 | % | 听 |
| Gross margin | $ | 19,802 | 听 | $ | 17,996 | 听 | $ | 1,806 | 听 | 听 | 10.0 | % | 听 |
| Gross margin percentage | 听 | 45.6 | % | 听 | 42.4 | % | 听 | 听 | 听 | 3.2 | % | (4) | |
| Unique patients served (鈥淯PS鈥�) | 听 | 91 | 听 | 听 | 94 | 听 | 听 | (3 | ) | 听 | -3.2 | % | 听 |
| Revenue rate | $ | 477.24 | 听 | $ | 451.88 | 听 | $ | 25.36 | 听 | 听 | 5.4 | % | (1) |
| Cost of revenue rate | $ | 259.64 | 听 | $ | 260.44 | 听 | $ | (0.80 | ) | 听 | -0.3 | % | (2) |
| Spread rate | $ | 217.60 | 听 | $ | 191.45 | 听 | $ | 26.16 | 听 | 听 | 13.2 | % | (3) |
| 听 | PDS | 听 | 听 | ||||||||||
| 听 | For the six-month periods ended | 听 | 听 | ||||||||||
| (dollars and hours in thousands) | June 28, 2025 | 听 | June 29, 2024 | 听 | Change | 听 | % Change | 听 | 听 | ||||
| Revenue | $ | 946,010 | 听 | $ | 802,860 | 听 | $ | 143,150 | 听 | 听 | 17.8 | % | 听 |
| Cost of revenue, excluding depreciation and amortization | 听 | 653,391 | 听 | 听 | 591,857 | 听 | 听 | 61,534 | 听 | 听 | 10.4 | % | 听 |
| Gross margin | $ | 292,619 | 听 | $ | 211,003 | 听 | $ | 81,616 | 听 | 听 | 38.7 | % | 听 |
| Gross margin percentage | 听 | 30.9 | % | 听 | 26.3 | % | 听 | 听 | 听 | 4.6 | % | (4) | |
| Hours | 听 | 21,940 | 听 | 听 | 20,600 | 听 | 听 | 1,340 | 听 | 听 | 6.5 | % | 听 |
| Revenue rate | $ | 43.12 | 听 | $ | 38.97 | 听 | $ | 4.15 | 听 | 听 | 11.3 | % | (1) |
| Cost of revenue rate | $ | 29.78 | 听 | $ | 28.73 | 听 | $ | 1.05 | 听 | 听 | 3.9 | % | (2) |
| Spread rate | $ | 13.34 | 听 | $ | 10.24 | 听 | $ | 3.10 | 听 | 听 | 32.2 | % | (3) |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| 听 | HHH | 听 | 听 | ||||||||||
| 听 | For the six-month periods ended | 听 | 听 | ||||||||||
| (dollars and admissions/episodes in thousands) | June 28, 2025 | 听 | June 29, 2024 | 听 | Change | 听 | % Change | 听 | 听 | ||||
| Revenue | $ | 116,845 | 听 | $ | 109,243 | 听 | $ | 7,602 | 听 | 听 | 7.0 | % | 听 |
| Cost of revenue, excluding depreciation and amortization | 听 | 53,041 | 听 | 听 | 50,866 | 听 | 听 | 2,175 | 听 | 听 | 4.3 | % | 听 |
| Gross margin | $ | 63,804 | 听 | $ | 58,377 | 听 | $ | 5,427 | 听 | 听 | 9.3 | % | 听 |
| Gross margin percentage | 听 | 54.6 | % | 听 | 53.4 | % | 听 | 听 | 听 | 1.2 | % | (4) | |
| Home health total admissions(5) | 听 | 19.5 | 听 | 听 | 19.5 | 听 | 听 | - | 听 | 听 | 0.0 | % | 听 |
| Home health episodic admissions(6) | 听 | 14.8 | 听 | 听 | 14.7 | 听 | 听 | 0.1 | 听 | 听 | 0.7 | % | 听 |
| Home health total episodes(7) | 听 | 24.5 | 听 | 听 | 23.7 | 听 | 听 | 0.8 | 听 | 听 | 3.4 | % | 听 |
| Home health episodic mix(8) | 听 | 75.9 | % | 听 | 75.4 | % | 听 | 听 | 听 | 0.5 | % | 听 | |
| Home health revenue per completed episode(9) | $ | 3,193 | 听 | $ | 3,082 | 听 | $ | 111 | 听 | 听 | 3.6 | % | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| 听 | MS | 听 | 听 | ||||||||||
| 听 | For the six-month periods ended | 听 | 听 | ||||||||||
| (dollars and UPS in thousands) | June 28, 2025 | 听 | June 29, 2024 | 听 | Change | 听 | % Change | 听 | 听 | ||||
| Revenue | $ | 85,922 | 听 | $ | 83,508 | 听 | $ | 2,414 | 听 | 听 | 2.9 | % | 听 |
| Cost of revenue, excluding depreciation and amortization | 听 | 47,987 | 听 | 听 | 48,767 | 听 | 听 | (780 | ) | 听 | -1.6 | % | 听 |
| Gross margin | $ | 37,935 | 听 | $ | 34,741 | 听 | $ | 3,194 | 听 | 听 | 9.2 | % | 听 |
| Gross margin percentage | 听 | 44.2 | % | 听 | 41.6 | % | 听 | 听 | 听 | 2.6 | % | (4) | |
| Unique patients served (鈥淯PS鈥�) | 听 | 180 | 听 | 听 | 186 | 听 | 听 | (6 | ) | 听 | -3.2 | % | 听 |
| Revenue rate | $ | 477.34 | 听 | $ | 448.97 | 听 | $ | 28.37 | 听 | 听 | 6.1 | % | (1) |
| Cost of revenue rate | $ | 266.59 | 听 | $ | 262.19 | 听 | $ | 4.40 | 听 | 听 | 1.6 | % | (2) |
| Spread rate | $ | 210.75 | 听 | $ | 186.78 | 听 | $ | 23.97 | 听 | 听 | 12.4 | % | (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.
The following table reconciles gross margin and gross margin percentage to Field contribution and Field contribution margin:
| 听 | For the three-month periods ended | 听 | For the six-month periods ended | 听 | ||||||||
| (dollars in thousands) | June 28, 2025 | 听 | June 29, 2024 | 听 | June 28, 2025 | 听 | June 29, 2024 | 听 | ||||
| Gross margin | $ | 210,800 | 听 | $ | 158,267 | 听 | $ | 394,358 | 听 | $ | 304,121 | 听 |
| Gross margin percentage | 听 | 35.8 | % | 听 | 31.3 | % | 听 | 34.3 | % | 听 | 30.5 | % |
| Branch and regional administrative expenses | 听 | 90,069 | 听 | 听 | 87,972 | 听 | 听 | 181,456 | 听 | 听 | 175,886 | 听 |
| Field contribution | $ | 120,731 | 听 | $ | 70,295 | 听 | $ | 212,902 | 听 | $ | 128,235 | 听 |
| Field contribution margin | 听 | 20.5 | % | 听 | 13.9 | % | 听 | 18.5 | % | 听 | 12.9 | % |
| Revenue | $ | 589,553 | 听 | $ | 504,958 | 听 | $ | 1,148,777 | 听 | $ | 995,611 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
The following table reconciles net income to EBITDA and Adjusted EBITDA:
| 听 | 听 | For the three-month periods ended | 听 | For the six-month periods ended | 听 | ||||||||
| (dollars in thousands) | 听 | June 28, 2025 | 听 | June 29, 2024 | 听 | June 28, 2025 | 听 | June 29, 2024 | 听 | ||||
| Net income | 听 | $ | 27,025 | 听 | $ | 13,906 | 听 | $ | 32,218 | 听 | $ | 2,734 | 听 |
| Interest expense, net | 听 | 听 | 35,874 | 听 | 听 | 39,518 | 听 | 听 | 72,077 | 听 | 听 | 79,063 | 听 |
| Income tax expense (benefit) | 听 | 听 | 17,113 | 听 | 听 | (9,927 | ) | 听 | 22,068 | 听 | 听 | 2,735 | 听 |
| Depreciation and amortization | 听 | 听 | 2,617 | 听 | 听 | 2,833 | 听 | 听 | 5,211 | 听 | 听 | 5,745 | 听 |
| EBITDA | 听 | 听 | 82,629 | 听 | 听 | 46,330 | 听 | 听 | 131,574 | 听 | 听 | 90,277 | 听 |
| Goodwill, intangible and other long-lived asset impairment | 听 | 听 | 153 | 听 | 听 | 80 | 听 | 听 | 319 | 听 | 听 | 2,400 | 听 |
| Non-cash share-based compensation | 听 | 听 | 5,159 | 听 | 听 | 3,500 | 听 | 听 | 16,155 | 听 | 听 | 7,581 | 听 |
| Interest rate derivatives(1) | 听 | 听 | (72 | ) | 听 | (6,441 | ) | 听 | 5,523 | 听 | 听 | (24,359 | ) |
| Acquisition-related costs(2) | 听 | 听 | 3,400 | 听 | 听 | - | 听 | 听 | 3,507 | 听 | 听 | - | 听 |
| Integration costs(3) | 听 | 听 | 2,269 | 听 | 听 | 388 | 听 | 听 | 2,543 | 听 | 听 | 687 | 听 |
| Legal costs and settlements associated with acquisition matters(4) | 听 | 听 | 639 | 听 | 听 | 173 | 听 | 听 | 1,678 | 听 | 听 | 575 | 听 |
| Restructuring(5) | 听 | 听 | 80 | 听 | 听 | 1,718 | 听 | 听 | 416 | 听 | 听 | 3,188 | 听 |
| Other legal matters(6) | 听 | 听 | (6,014 | ) | 听 | (197 | ) | 听 | (5,938 | ) | 听 | 898 | 听 |
| Other adjustments(7) | 听 | 听 | 131 | 听 | 听 | 96 | 听 | 听 | (50 | ) | 听 | (717 | ) |
| Total adjustments | 听 | $ | 5,745 | 听 | $ | (683 | ) | $ | 24,153 | 听 | $ | (9,747 | ) |
| Adjusted EBITDA | 听 | $ | 88,374 | 听 | $ | 45,647 | 听 | $ | 155,727 | 听 | $ | 80,530 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
The following table reconciles net income to adjusted net income (loss) and presents adjusted net income (loss) per diluted share:
| 听 | For the three-month periods ended | 听 | For the six-month periods ended | 听 | ||||||||
| (dollars in thousands, except share and per share data) | June 28, 2025 | 听 | June 29, 2024 | 听 | June 28, 2025 | 听 | June 29, 2024 | 听 | ||||
| Net income | $ | 27,025 | 听 | $ | 13,906 | 听 | $ | 32,218 | 听 | $ | 2,734 | 听 |
| Income tax expense (benefit) | 听 | 17,113 | 听 | 听 | (9,927 | ) | 听 | 22,068 | 听 | 听 | 2,735 | 听 |
| Goodwill, intangible and other long-lived asset impairment | 听 | 153 | 听 | 听 | 80 | 听 | 听 | 319 | 听 | 听 | 2,400 | 听 |
| Non-cash share-based compensation | 听 | 5,159 | 听 | 听 | 3,500 | 听 | 听 | 16,155 | 听 | 听 | 7,581 | 听 |
| Interest rate derivatives(1) | 听 | (72 | ) | 听 | (6,441 | ) | 听 | 5,523 | 听 | 听 | (24,359 | ) |
| Acquisition-related costs(2) | 听 | 3,400 | 听 | 听 | - | 听 | 听 | 3,507 | 听 | 听 | - | 听 |
| Integration costs(3) | 听 | 2,269 | 听 | 听 | 388 | 听 | 听 | 2,543 | 听 | 听 | 687 | 听 |
| Legal costs and settlements associated with acquisition matters(4) | 听 | 639 | 听 | 听 | 173 | 听 | 听 | 1,678 | 听 | 听 | 575 | 听 |
| Restructuring(5) | 听 | 80 | 听 | 听 | 1,718 | 听 | 听 | 416 | 听 | 听 | 3,188 | 听 |
| Other legal matters(6) | 听 | (6,014 | ) | 听 | (197 | ) | 听 | (5,938 | ) | 听 | 898 | 听 |
| Other adjustments(7) | 听 | 131 | 听 | 听 | 96 | 听 | 听 | (50 | ) | 听 | (717 | ) |
| Total adjustments | 听 | 22,858 | 听 | 听 | (10,610 | ) | 听 | 46,221 | 听 | 听 | (7,012 | ) |
| Adjusted pre-tax income (loss) | 听 | 49,883 | 听 | 听 | 3,296 | 听 | 听 | 78,439 | 听 | 听 | (4,278 | ) |
| Income tax (expense) benefit on adjusted pre-tax income (loss)(8) | 听 | (12,471 | ) | 听 | (824 | ) | 听 | (19,610 | ) | 听 | 1,070 | 听 |
| Adjusted net income (loss) | $ | 37,412 | 听 | $ | 2,472 | 听 | $ | 58,829 | 听 | $ | (3,208 | ) |
| Weighted average shares outstanding, diluted | 听 | 210,442 | 听 | 听 | 196,869 | 听 | 听 | 206,763 | 听 | 听 | 192,420 | 听 |
| Adjusted net income (loss) per diluted share(9) | $ | 0.18 | 听 | $ | 0.01 | 听 | $ | 0.28 | 听 | $ | (0.02 | ) |
The following footnotes are applicable to tables above that reconcile (i) net income to EBITDA and Adjusted EBITDA and (ii) net income to adjusted net income (loss).
(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鈥檚 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
(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
(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. Restructuring costs also include compensation, severance and related benefits costs associated with an executive transition plan initiated in the first quarter of 2024.
(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 three and six-month periods ended June 28, 2025.
(7) Represents: (i) other costs or (income) that are either non-cash or non-core to the Company鈥檚 ongoing operations of
(8) Derived utilizing a combined statutory rate of
(9) Adjustments used to reconcile net income per diluted share on a GAAP basis to adjusted net income (loss) per diluted share are comprised of the same adjustments, inclusive of the tax impact, used to reconcile net income to adjusted net income (loss) divided by the weighted-average diluted shares outstanding during the period.
The following table reconciles net income to adjusted net income (loss) and presents adjusted net income (loss) per diluted share:
| 听 | For the three-month periods ended | 听 | For the six-month periods ended | 听 | ||||||||||||||||||||
| 听 | June 28, 2025 | 听 | June 29, 2024 | 听 | June 28, 2025 | 听 | June 29, 2024 | 听 | ||||||||||||||||
| (dollars in thousands) | Dollars | 听 | Per Diluted Share | 听 | Dollars | 听 | Per Diluted Share | 听 | Dollars | 听 | Per Diluted Share | 听 | Dollars | 听 | Per Diluted Share | 听 | ||||||||
| Net income | $ | 27,025 | 听 | $ | 0.13 | 听 | $ | 13,906 | 听 | $ | 0.07 | 听 | $ | 32,218 | 听 | $ | 0.16 | 听 | $ | 2,734 | 听 | $ | 0.01 | 听 |
| Total adjustments(1) | 听 | 22,858 | 听 | 听 | 0.11 | 听 | 听 | (10,610 | ) | 听 | (0.05 | ) | 听 | 46,221 | 听 | 听 | 0.22 | 听 | 听 | (7,012 | ) | 听 | (0.04 | ) |
| Income tax (expense) benefit on adjusted pre-tax income (loss) | 听 | (12,471 | ) | 听 | (0.06 | ) | 听 | (824 | ) | 听 | (0.01 | ) | 听 | (19,610 | ) | 听 | (0.10 | ) | 听 | 1,070 | 听 | 听 | 0.01 | 听 |
| Adjusted net income (loss) | $ | 37,412 | 听 | $ | 0.18 | 听 | $ | 2,472 | 听 | $ | 0.01 | 听 | $ | 58,829 | 听 | $ | 0.28 | 听 | $ | (3,208 | ) | $ | (0.02 | ) |
(1) Total adjustments agree to the net income to adjusted net income (loss) 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.
| 听 | For the three-month periods ended | 听 | For the six-month periods ended | 听 | ||||||||
| (dollars in thousands) | June 28, 2025 | 听 | June 29, 2024 | 听 | June 28, 2025 | 听 | June 29, 2024 | 听 | ||||
| Cost of revenue, excluding depreciation and amortization | $ | (5,878 | ) | $ | 81 | 听 | $ | (5,578 | ) | $ | 176 | 听 |
| Branch and regional administrative expenses | 听 | 1,599 | 听 | 听 | 1,561 | 听 | 听 | 4,837 | 听 | 听 | 2,874 | 听 |
| Corporate expenses | 听 | 6,451 | 听 | 听 | 3,958 | 听 | 听 | 15,599 | 听 | 听 | 9,335 | 听 |
| Acquisition-related costs | 听 | 3,400 | 听 | 听 | - | 听 | 听 | 3,506 | 听 | 听 | - | 听 |
| Other operating expense | 听 | 109 | 听 | 听 | 168 | 听 | 听 | 47 | 听 | 听 | 2,120 | 听 |
| Other expense (income) | 听 | 64 | 听 | 听 | (6,451 | ) | 听 | 5,742 | 听 | 听 | (24,252 | ) |
| Total adjustments | $ | 5,745 | 听 | $ | (683 | ) | $ | 24,153 | 听 | $ | (9,747 | ) |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
The following table reconciles the net cash used in operating activities to free cash flow:
| 听 | 听 | For the six-month period ended | 听 | |
| (dollars in thousands) | 听 | June 28, 2025 | 听 | |
| Net cash provided by operations | 听 | $ | 42,937 | 听 |
| Purchases of property and equipment, and software | 听 | 听 | (3,477 | ) |
| Principal payments of term loans | 听 | 听 | (4,600 | ) |
| Principal payments of notes payable and financing lease obligations | 听 | 听 | (4,086 | ) |
| Settlements with swap counterparties | 听 | 听 | 6,144 | 听 |
| Free cash flow | 听 | $ | 36,918 | 听 |
Investor Contact Matt Buckhalter Chief Financial Officer [email protected]
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