Addus HomeCare Corp (ADUS) · Q2 2026 results and valuation

At 10.0% growth a year (3-year revenue growth), the model's fair value is $116.88 a share — the stock trades 7% above it. Today's price assumes 10.4% growth a year.

1. Key theme

   ADUS reduced bank debt to $64.3 million in the second quarter on strong cash flow, leaving greater financial flexibility.

   Source quote

   “With our strong cash flow in the second quarter, we reduced our bank debt to $64.3 million, leaving us with the financial... As of March 31, 2026, we had cash on hand of approximately $100 million. As we announced on May 1, we...”

2. Guidance

   ADUS warned its tax rate will be in the upper end if a key program expires without extension, raising tax costs and pressuring profit.

   Source quote

   “While traditionally, this program has been extended as part of broader legislation retroactively if necessary, without a further extension, we expect our tax rate to be in the upper...”

3. Guidance

   ADUS expects roughly $1 million in cost synergies from eliminating duplicate costs, which should reduce expenses and improve profitability.

   Source quote

   “But we've always, I think, kind of indicated we expect to see probably close to probably $1 million in synergy as we eliminate some of those duplicate costs...”

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“We delivered an 8% top line revenue increase, bringing total net service revenues to $377.4 million, alongside a strong 11.9% year-over-year rise in adjusted EBITDA to $49.2 million.”

“With our strong cash flow in the second quarter, we reduced our bank debt to $64.3 million, leaving us with the financial flexibility to consider larger acquisition opportunities as we...”

“During the second quarter of 2026, we saw Personal Care same-store hours increase by 2.2% compared to the same period in 2025, while our percentage of authorized hours served in...”