Addus HomeCare Corporation’s (Nasdaq: ADUS) recent acquisition of Indiana-based HomeCourt Home Care has “slightly” outperformed leadership’s expectations, specifically driven by higher-than-anticipated client volume.
Higher volumes helped drive Addus’ 6.8% year-over-year organic revenue growth in personal care, while the segment also benefited from two months of contributions from HomeCourt, according to the company’s Q2 earnings call on Tuesday. The company’s overall strong performance during the quarter sets it up for additional acquisitions moving forward, said R. Dirk Allison, chairman and CEO of Addus.
“Our appetite for deals, whether they’re small or large, that’s part of what we do,” Allison said. “We have our team out there really pushing forward to try to get to success in some of those particular opportunities.”
The HomeCourt deal, along with another pending Indiana-based acquisition, exemplifies Addus’ strategy of entering new markets with acquisitions of scale and then expanding its services, Allison said.
Frisco, Texas-based Addus provides personal care services as well as hospice and home health services across 24 states. The company serves about 62,500 patients and consumers through 264 locations.
Addus’ Q2 personal care revenue rang in at $296 million, an increase of 10% year-over-year. The service line’s revenue accounted for 78.4% of quarterly revenue.
Its hospice division brought in $64.2 million in Q2 revenue, a 3.3% increase year-over-year. Home health revenue totaled $17.2 million during the quarter, a 4.8% decrease year-over-year.
While home health revenues decreased, Allison said in a statement that leadership is pleased to see more favorable admission and volume trends.
While queuing up additional deals, Addus is also in the middle of a technology transition. The company is converting its personal care business to Homecare Homebase, one of the largest technology and administrative services companies serving home-based care. The transition, which will bring the company onto a single electronic medical record (EMR) platform, is scheduled to be completed by the end of Q1 2027, Allison said.
The transition will enhance the company’s ability to scale its bridge program, the CEO added.
Addus’ bridge program is an initiative to connect personal care services with home health and hospice for patients with increasingly more complex clinical needs.
“Once that occurs, then the bridge program — inclusive of PCS all the way up through home health and hospice, will be much easier because we’ll be on one EMR. So that’s a time frame that we’re very excited and something we’re looking forward to as we try to expand the bridge [program] more into the PCS world at that time,” Allison said.
Addus reported Q2 net service revenues of $377.4 million, an 8% increase compared to $349.4 million in Q2 2025.
Cash flow from operations also reached $40 million, up from the prior-year period of $22.5 million.