Alongside strong financial results, Addus Homecare announced that it acquired Pennsylvania-based home care company, Helping Hands Home Care Service, for $21.2 million during its second-quarter earnings call on Tuesday.
The Helping Hands Home Care Service deal closed on Aug. 1, CEO Dirk Allison said on the company’s Q2 earnings call. The provider operates in three locations in western Pennsylvania and offers a range of home-based services, mainly personal care, including home health and hospice services.
“Our team is excited about this acquisition,” Allison said on the call. “As we have with this most recent acquisition, our development team will continue to focus on both clinical and non-clinical acquisition opportunities that increase both the density and geographic coverage of our current states. We will be evaluating smaller clinical transactions along with personal care service transactions that fit our strategy.”
Helping Hands has nearly $17 million in annualized revenue and employs over 500 people serving approximately 600 patients daily, according to Addus.
Allison said that Helping Hands has a strong market presence and reputation in the communities in which they serve, providing care that allows more patients to stay in their homes.
“We anticipate a smooth integration of our combined Pennsylvania operations and look forward to working together with the Helping Hands team to expand our coverage and capabilities,” he said.
Addus, based in Frisco, Texas, offers home-based care services including personal care, hospice and home health. The company currently serves about 62,000 patients and consumers through 260 locations across 23 states.
The company also reported over 7% organic growth in the second quarter, reportedly driven by the successful December 2024 acquisition of Gentiva’s personal care operations and strong demand for home-based services.
“Our personal care segment, which accounted for 77% of our business, was a key contributor to our growth with a 7.4% organic revenue increase on a same-store basis over the second quarter last year,” Allison said. “These results were driven by volume growth, as well as the support of state rate increases, including Illinois, our largest state for personal care services.”
Both Illinois and Texas finalized their fiscal 2026 state budgets, each including reimbursement rate increases for personal care services. Illinois announced a 3.9% increase, effective Jan. 1, 2026. It is projected to generate approximately $17.5 million in annualized revenue, with potential margins in the low 20% range, consistent with the state’s 77% pass-through requirement, according to Chief Financial Officer Brian Poff.
Texas also included a 9.9% increase in its fiscal 2026 budget, effective Sept. 1. Poff expects this to generate approximately $17.7 million in annual revenue for Addus, with margins similar to the existing Texas personal care business of just over 20%.
Home health services accounted for just over 5% of total revenue in the second quarter, according to the company. Although this is Addus’ smallest business segment, Allison said he believes home health operations serve as a key clinical partner to the personal care and hospice segments, helping the company provide access to the appropriate type and setting of care when needed.
The company’s hospice care division also reported strong results, with over 10% organic revenue growth compared to the same quarter last year. Allison credited the success to operational changes within the division.
Overall, the company reported net service revenues of $349.4 million for the second quarter, a 21.8% increase from the same period last year. Net income rang in at $22.1 million. Adjusted EBITDA rose 24.5% year-over-year, to $43.9 million.
“We are pleased with the trends in our business during the first half of 2025, as we continue to expand our market reach and meet the increasing demand for our home-based care services,” Allison said. “We are proud of the important work we are doing, with a proven and scalable operating model that supports a vital need for quality, compassionate care for more patients and families in the preferred home setting. We remain focused on delivering value to both the communities we serve and our shareholders, and we look forward to the opportunities ahead for Addus in 2025.”
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