Addus HomeCare Corporation

Addus HomeCare agreed on September 14 to acquire the personal care division of AccentCare for an anticipated $275 million, a deal expected to add roughly $280 million in annualized revenue, nearly a fifth of the company's current revenue base. The AccentCare operations serve an average daily census of about 13,700 customers across a 10-state footprint, deepening Addus in Texas, Illinois, California, and Arizona while adding a foothold in Colorado, Georgia, Minnesota, Pennsylvania, Tennessee, and Washington. The purchase covers only personal care, leaving AccentCare's hospice and home health operations out of the deal, and will be funded through Addus's revolver and cash on hand rather than new share issuance. The transaction has not closed and still requires regulatory approval and customary closing conditions. The deal follows Addus's second-quarter results, reported August 3, when net service revenues rose 8.0% to $377.4 million and adjusted EBITDA climbed 11.9% to $49.2 million, with personal care up 6.8% organically and hospice up 11.1% organically. Addus carried $64.3 million in debt and generated $40.0 million in quarterly operating cash flow ahead of the acquisition.

Addus HomeCare reported second-quarter 2026 net income of US$27.61 million and diluted earnings per share from continuing operations of US$1.49, both higher than the same period in 2025. Non-GAAP earnings per share modestly outpaced analyst expectations while the company maintained an 11.5% adjusted operating margin, underscoring consistent profitability on essentially flat margins year over year. The earnings beat supports the investment narrative of resilient demand for home-based care, though reimbursement uncertainty and staffing costs remain key risks. Addus was also removed from several Russell growth indexes in late June 2026, a technical change that may influence near-term trading and liquidity.

Addus HomeCare matched Wall Street revenue expectations for its second quarter of 2026, while non-GAAP earnings per share and operating margins came in slightly ahead and held steady year on year. The stock has returned 11.05% over the past 30 days and 20.85% over 90 days, though the one-year total shareholder return stands at just 0.19%. A widely followed narrative pegs the fair value at $132.69 per share, implying the stock is undervalued at its recent price of $116.79. That valuation gap is supported by expected state-level reimbursement rate increases in Illinois and Texas, which are projected to add over $35 million in annualized revenue at stable margins of 20% or more. Key risks include potential Medicare reimbursement cuts and ongoing workforce pressures that could squeeze margins.