HCSG
Healthcare Services Group, Inc.19.09
-0.27-1.39%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Talent limits growth despite pipeline
Q&A largely reaffirmed prepared remarks on mid-single-digit 2026 revenue growth, 86% cost of services, and $75M buybacks, but spotlighted management talent hiring as the binding constraint on upside despite robust pipeline. Campus services hit $100M evenly split between brands, with organic acceleration plus strategic M&A planned in Northeast, Southeast, Mid-Atlantic, and early Midwest. Ample liquidity supports buybacks without crowding M&A. Service execution stayed strong across facility types. Talent shortage curbs expansion pace. Management stayed confident on execution.
Key Stats
Market Cap
1.38BP/E (TTM)
35.35Basic EPS (TTM)
0.54Dividend Yield
0%Recent Filings
10-K
FY2025 results
Healthcare Services Group posted FY2025 revenues of $1.84B, up 7.1% y/y, with EVS at $825M (+7.7%) and Dietary at $1.01B (+6.5%) driven by new facilities, service expansions, and pricing. Yet margins eroded—EVS to 8.8% from 9.9%, Dietary to 2.5% from 4.8%—as labor costs held steady but bad debt exploded to $83M (4.5% of sales) from Genesis's mid-year bankruptcy, while ERC credits masked some pain. Q4 saw aggressive buybacks: 1.1M shares at $18 avg. Cash swelled to $125M; $300M revolver untapped. Bad debt provisions threaten quarterly collections.
8-K
Beat targets, new buyback
10-Q
Q3 FY2025 results
Healthcare Services Group posted Q3 revenues of $464.3M, up 8.5% y/y from $428.1M, with Housekeeping up 10.8% to $211.8M and Dietary up 6.5% to $252.6M on new facilities and price hikes. Net income soared to $43.0M or $0.59/share from $14.0M or $0.19/share, boosted by $34.2M ERC refunds cutting costs of services to 79.2% of sales; EPS reconciles to 72.966M diluted shares. Cash jumped to $124.4M with $127.6M operating cash flow (capex $4.4M), no debt drawn on $300M line ($252M available), yet Q2 loss dragged YTD net to $27.8M. Cash buys back shares aggressively. Customer bankruptcies like Genesis' hit bad debt hard.
8-K
Q3 revenue beats expectations
Healthcare Services Group crushed Q3 expectations with revenue up 8.5% to $464.3 million, net income of $43.0 million, and $0.59 diluted EPS—boosted by $34.2 million ERC benefit yet offset by $2.7 million Genesis charge. Cash from operations hit $71.3 million, including $31.8 million ERC; repurchased $27.3 million in shares. New wins fueled growth. Momentum carries into Q4.
10-Q
Q2 FY2025 results
Healthcare Services Group posted Q2 revenues of $458.5M, up 7.6% y/y from $426.3M, with Housekeeping at $205.7M (up 7.7%) and Dietary at $252.7M (up 7.4%), fueled by facility gains and price hikes. Yet costs of services soared 18.4% y/y to $455.5M, driven by $61.2M bad debt from Genesis bankruptcy, flipping operating income to a $23.8M loss from $14.9M profit; net loss hit $32.4M or $(0.44) per diluted share on 73.2M shares. YTD, revenues rose 6.6% to $906.2M but net loss was $15.1M or $(0.21) per share, with EPS matching diluted shares. Cash swelled to $82.8M, operating cash flow generated $56.3M YTD, and a $7.3M acquisition added $4.5M goodwill. Bad debt stings. Treasury buys continue.
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