0001437749-26-014900
SEC filingStrong quarter driven by personal care segment growth from acquisitions and organic expansion, with operating cash flow surging on improved collections.
Revenue for the first quarter of 2026 was $363.6 million, up 7.7% from $337.7 million in the prior year period. The increase was primarily driven by growth in our personal care segment, which benefited from organic growth in billable hours combined with the Gold Horses Acquisition and the Helping Hands Acquisition. Hospice segment revenue also increased due to organic growth in average daily census. These gains were partially offset by a decrease in our home health segment, which was primarily attributed to lower volumes.
Net cash provided by operating activities surged to $52.4 million from $18.9 million in the prior year, primarily due to the timing of receipts on accounts receivable and the timing of receipt and utilization of government stimulus funds. Capital expenditures were $1.7 million, resulting in free cash flow of $50.7 million. Our primary sources of liquidity are cash on hand, cash from operations, and borrowings under our credit facility.
The personal care segment remains the primary growth driver, supported by organic expansion and acquisitions. Hospice continues to benefit from organic census growth, while home health faces volume headwinds. Key risks include concentration in Illinois and potential Medicaid funding reductions, which could pressure margins if rate increases do not keep pace with wage inflation.
Management did not provide quantitative guidance but highlighted continued organic growth in personal care and hospice, supported by favorable state rate increases and ARPA funding extensions through September 2026. The company's strong cash generation and low leverage position it well for further acquisitions, though integration costs remain a near-term headwind.