Aveanna Healthcare (AVAH) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $647.9 million, up 15.9% year-over-year, with growth across all business segments and net income rising to $41.7 million from $5.2 million last year.

• Adjusted EBITDA was $84.4 million, a 25.2% increase, driven by improved rates, volumes, and operational efficiencies.

• Operating income rose 33.8% to $69.3 million, supported by higher field contribution and reduced corporate expenses.

• Strategic focus on preferred payer agreements and government partnerships is accelerating growth and stabilizing margins.

• Announced acquisition of Family First Homecare for $175.5 million, expected to close in late Q2, to expand pediatric care footprint.

Financial highlights

• Consolidated gross margin was $205.4 million (31.7%), up from $183.6 million (32.8%) in Q1 2025.

• Private Duty Services (PDS) revenue: $535.7 million (+16.4%), with 12.1 million hours of care (+10.7%).

• Home Health & Hospice revenue: $66.6 million (+17.4%), with 11,000 admissions and 14,900 episodes (+23.1%).

• Medical Solutions revenue: $45.7 million (+7.4%), serving 93,000 unique patients.

• Q1 free cash flow was -$3.8 million; operating cash flow was $4.3 million, a $13.0 million improvement from the prior year.

Outlook and guidance

• Raised full-year 2026 revenue guidance to $2.56–$2.58 billion and adjusted EBITDA to $328–$332 million, excluding Family First acquisition.

• Expect continued organic growth, with Medical Solutions returning to double-digit growth by year-end.

• Guidance reflects prudent view amid ongoing industry challenges and excludes the pending Family First acquisition.

• Management expects continued growth driven by organic expansion and acquisitions, with sufficient liquidity to fund operations and strategic initiatives.

• The pending Family First acquisition is anticipated to further strengthen the pediatric home care segment.