Home healthcare provider Addus HomeCare (NASDAQ: ADUS) met Wall Street’s revenue expectations in Q2 CY2026, with sales up 8% year on year to $377.4 million. Its non-GAAP profit of $1.73 per share was 1.9% above analysts’ consensus estimates.

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Company Overview

Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ: ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, Addus HomeCare’s 12.7% annualized revenue growth over the last five years was solid. Its growth beat the average healthcare company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Addus HomeCare’s annualized revenue growth of 15.1% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

Addus HomeCare also reports its number of average billable patients, which reached 51,097 in the latest quarter. Over the last two years, Addus HomeCare’s average billable patients averaged 19.3% year-on-year growth. Because this number is better than its revenue growth, we can see the company’s average selling price decreased.

This quarter, Addus HomeCare grew its revenue by 8% year on year, and its $377.4 million of revenue was in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 5.4% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above average for the sector and suggests the market is forecasting some success for its newer products and services.

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Adjusted Operating Margin

Adjusted operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses — everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies because it excludes non-recurring expenses, interest on debt, and taxes.

Addus HomeCare has done a decent job managing its cost base over the last five years. The company has produced an average adjusted operating margin of 10.6%, higher than the broader healthcare sector.

Analyzing the trend in its profitability, Addus HomeCare’s adjusted operating margin rose by 2.2 percentage points over the last five years, as its sales growth gave it operating leverage.

This quarter, Addus HomeCare generated an adjusted operating margin profit margin of 11.5%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Addus HomeCare’s EPS grew at 15.7% compounded annual growth rate over the last five years, higher than its 12.7% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Diving into the nuances of Addus HomeCare’s earnings can give us a better understanding of its performance. As we mentioned earlier, Addus HomeCare’s adjusted operating margin was flat this quarter but expanded by 2.2 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q2, Addus HomeCare reported adjusted EPS of $1.73, up from $1.49 in the same quarter last year. This print beat analysts’ estimates by 1.9%. Over the next 12 months, Wall Street expects Addus HomeCare’s full-year EPS to grow 7.8% from $6.68 to $7.20.

Key Takeaways from Addus HomeCare’s Q2 Results

We were happy to see Addus meet consensus estimates for the quarter. Zooming out, we think this was a mixed quarter. The market seemed to be hoping for more, and the stock traded down 2.6% to $113.56 immediately following the results.

So should you invest in Addus HomeCare right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).