Aveanna Healthcare Holdings, Inc.
For the period ended Apr 4, 2026. Filed May 14, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Apr 4, 2026 · Filed May 14, 2026
AVAH$13.25-3.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-27; filed 2025-11-06.
0001193125-25-267978
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-04-04; filed 2026-05-14.
0001193125-26-222736
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 271 previous paragraphs and 183 current paragraphs.
101 unchanged; 53 reworded; 27 added; 94 removed; 23 previous and 2 current paragraphs rearranged.
Tables are not compared: 19 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (27)
Current report
PDN Services include:
Current report
Agreement to Acquire Family First Homecare
Current report
On March 12, 2026, the Company announced that it had entered into a definitive agreement to acquire Family First Holding, LLC, a scaled, multi-state provider of pediatric home care that primarily provides skilled Private Duty Nursing services with 27 locations in seven states including Florida, Illinois, Iowa, Pennsylvania, South Dakota, Texas, and North Carolina, where it is currently launching operations. The purchase price for the acquisition is $175.5 million in cash, subject to customary adjustments. The transaction is expected to close in the second fiscal quarter of 2026, subject to, among other things, customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. We intend to fund the acquisition with a combination of cash on hand and borrowings under our Securitization Facility.
Current report
Represents the change in margin percentage period over period.
Current report
Represents the change in margin percentage period over period.
Current report
Represents the change in home health episodic mix period over period.
Current report
the previously discussed $17.5 million increase in Field contribution;
Current report
a $3.3 million decrease in corporate expenses; and
Current report
a $3.0 million increase in acquisition-related costs associated with the pending acquisition of Family First.
Current report
Net Income
Current report
the previously discussed $17.5 million increase in operating income;
Current report
a $1.6 million decrease in income tax expense.
Current report
Revenue was $647.9 million for the three-month period ended April 4, 2026, as compared to $559.2 million for the three-month period ended March 29, 2025, an increase of $88.7 million, or 15.9%. This increase resulted from the following segment activity:
Current report
a $75.7 million, or 16.4%, increase in PDS revenue;
Current report
a $3.2 million, or 7.4%, increase in MS revenue.
Current report
Our MS segment revenue growth of $3.2 million, or 7.4%, for the three-month period ended April 4, 2026, as compared to the three-month period ended March 29, 2025, was attributable to an increase in volume of 4.5% and a 2.9% increase in revenue rate, each compared to the first quarter of 2025.
Current report
Cost of revenue, excluding depreciation and amortization, was $442.5 million for the three-month period ended April 4, 2026, as compared to $375.7 million for the three-month period ended March 29, 2025, an increase of $66.8 million, or 17.8%. This increase resulted from the following segment activity:
Current report
a $61.1 million, or 18.8%, increase in PDS cost of revenue;
Current report
a $4.8 million, or 18.6%, increase in HHH cost of revenue; and
Current report
a $0.9 million, or 3.6%, increase in MS cost of revenue.
Current report
Branch and regional administrative expenses were $95.8 million, or 14.8% of revenue, for the three-month period ended April 4, 2026, as compared to $91.4 million, or 16.3% of revenue, for the three-month period ended March 29, 2025, an increase of $4.4 million, or 4.8%.
Current report
The 4.8% increase in branch and regional administrative expenses for the three-month period ended April 4, 2026, as compared to the three-month period ended March 29, 2025, was primarily due to increased costs related to the acquisition of Thrive, which was completed on June 2, 2025 and increased our operating footprint, including adding new locations and support personnel. The overall 1.5% decrease in branch and regional administrative expenses as a percentage of revenue for the three-month period ended April 4, 2026, as compared to the three-month period ended March 29, 2025, is the result of leveraging our operating support model to effectively incorporate increased volume from acquisitions and higher demand driven from our existing operating footprint.
Current report
There was no other operating expense for the three-month period ended April 4, 2026. Other operating expense was $0.2 million for the three-month period ended March 29, 2025.
Current report
Other Income (Expense)
Current report
As noted in Recent Developments, we entered into an agreement to acquire Family First Holding, LLC for a purchase price of $175.5 million, subject to customary adjustments. The transaction is expected to close in the second fiscal quarter of 2026, and the acquisition is intended to be funded with a combination of cash on hand and borrowings under our Securitization Facility.
Current report
Net cash used in financing activities increased by $2.0 million, from $1.8 million net cash used in financing activities for the three-month period ended March 29, 2025 to $3.8 million net cash used in financing activities for the three-month period ended April 4, 2026. The $2.0 million increase in net cash used in financing activities was primarily attributable to the absence of an ESPP purchase event in the three-month period ended April 4, 2026, due to the timing of our fiscal calendar and ESPP purchase events.
Current report
The Second Lien Term Loan was paid in full as part of the Refinancing Amendment in the third quarter of 2025.
Removed paragraphs (94)
Previous report
Our PDN services include:
Previous report
Secondary Offering
Previous report
On October 21, 2025, certain selling stockholders affiliated with J.H. Whitney Equity Partners VII, LLC (the “Selling Stockholders”) sold 10,000,000 shares of the Company’s common stock to the public (the “Secondary Offering”) pursuant an underwriting agreement (the “Underwriting Agreement”) by and among the Company, the Selling Stockholders and Jefferies LLC and J.P. Morgan Securities LLC, as representatives of the several underwriters named therein (the “Underwriters”). On October 28, 2025, the Underwriters exercised an additional 1,500,000 shares of the Company’s common stock to the public following the full exercise of an over-allotment option pursuant to the Underwriting Agreement. The Company did not issue or sell any common stock in the Secondary Offering and did not receive any proceeds from the Secondary Offering.
Previous report
Regulatory Developments
Previous report
On June 30, 2025, the Centers for Medicare & Medicaid Services (“CMS”) issued its calendar year 2026 ("CY 2026") proposed rule for the home health prospective payment system. CMS estimates the proposed rule would reduce home health payments by 6.4% in CY 2026 relative to 2025. This update includes a 3.2% market basket update, reduced by a 0.8% cut for productivity. The proposed rule also includes several reductions that CMS proposes as necessary to achieve budget neutral implementation of the Patient-driven Groupings Model (“PDGM”), which are a 4.1% permanent reduction to the standard payment rate to prevent future overpayments, as well as a temporary but indefinite 5.0% reduction to recoup past overpayments. CMS also proposes a 0.5% reduction related to high-cost outlier payments. The comment period on the proposed rule ended August 29, 2025. We have partnered with our industry advocates and others to share comments with CMS on the proposed rule. The ultimate impact of the final rule, if adopted as proposed, would negatively affect reimbursement rates in our HHH segment in line with the proposed 6.4% reduction.
Previous report
On July 4, 2025, H.R. 1, also known as the One Big Beautiful Bill Act ("OBBBA"), was enacted into law. The Congressional Budget Office projects OBBBA will result in a reduction to federal Medicaid spending by an estimated $1.15 trillion over the next ten years. The changes to Medicaid made by OBBBA include provisions expected to reduce the population of Medicaid recipients through more stringent eligibility requirements, reductions in provider taxes, work (community engagement) requirements, limits on state-directed payments, and other changes. Most of the applicable provisions have implementation dates of December 31, 2026, or later. While there were no specific changes to the Medicaid waiver programs that a majority of our patient population qualifies for services under, and no provisions that we believe directly impact the reimbursement rates of the services we provide, the resulting reductions to state Medicaid budgets may indirectly impact future rate expansion for certain Medicaid-funded services.
Previous report
Represents the change in margin percentage quarter over quarter.
Previous report
Represents the change in margin percentage quarter over quarter.
Previous report
Represents the change in home health episodic mix quarter over quarter.
Previous report
Operating income was $53.6 million, or 8.6% of revenue, for the three-month period ended September 27, 2025, as compared to operating income of $34.0 million, or 6.7% of revenue, for the three-month period ended September 28, 2024, an increase of $19.6 million.
Previous report
Operating income for the third quarter of 2025 was positively impacted by an increase of $35.9 million, or 50.2%, in Field contribution, as compared to the third quarter of 2024. The $35.9 million increase in Field contribution resulted from a $112.9 million, or 22.2%, increase in consolidated revenue and a 3.3% increase in our Field contribution margin to 17.3% for the third quarter of 2025 from 14.0% for the third quarter of 2024. The primary driver of our higher Field contribution margin over the comparable quarter was an increase in gross margin percentage of 1.2%, along with a 2.0% decrease in branch and regional administrative expenses as a percentage of revenue to 15.3% for the third quarter of 2025 from 17.3% for the third quarter of 2024.
Previous report
the previously discussed $35.9 million increase in Field contribution,
Previous report
a $1.3 million decrease in acquisition-related costs, and
Previous report
a $20.1 million increase in corporate expenses.
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Net Income (Loss)
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the previously discussed $19.6 million increase in operating income;
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a $4.8 million decrease in interest expense, net,
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a $5.9 million loss on debt extinguishment recorded during the three-month period ended September 27, 2025.
Previous report
Revenue was $621.9 million for the three-month period ended September 27, 2025, as compared to $509.0 million for the three-month period ended September 28, 2024, an increase of $112.9 million, or 22.2%. This increase resulted from the following segment activity:
Previous report
a $104.9 million, or 25.6%, increase in PDS revenue; and
Previous report
a $8.3 million, or 15.3%, increase in HHH revenue; offset by
Previous report
a $0.2 million, or 0.5%, decrease in MS revenue.
Previous report
Our HHH segment revenue increase of $8.3 million, or 15.3%, for thethree-month period ended September 27, 2025, as compared to thethree-month period ended September 28, 2024, resulted primarily from a 14.2% increase in total episodes and an increase in home health revenue per completed episode due to improvements in patient mixcompared to the third quarter of 2024.
Previous report
The$0.2 million, or 0.5%, decrease in MS segment revenue for thethree-month period ended September 27, 2025, as compared to thethree-month period ended September 28, 2024, was attributable to a 1.1% decline in volume, partially offset by a 0.6% increase in revenue rate compared to the third quarter of 2024.
Previous report
Cost of revenue, excluding depreciation and amortization, was $419.1 million for the three-month period ended September 27, 2025, as compared to $349.3 million for the three-month period ended September 28, 2024, an increase of $69.8 million, or 20.0%. This increase resulted from the following segment activity:
Previous report
a $65.4 million, or 21.8%, increase in PDS cost of revenue;
Previous report
a $4.2 million, or 16.8%, increase in HHH cost of revenue; and
Previous report
a $0.2 million, or 0.7%, increasein MS cost of revenue.
Previous report
The 16.8% increase in HHH cost of revenue for thethree-month period ended September 27, 2025 was driven primarily by higher home health total episodes.
Previous report
The 0.7% increase in MS cost of revenue for thethree-month period ended September 27, 2025 was driven primarily by higher enteral product costs.
Previous report
Branch and regional administrative expenses were $95.4 million, or 15.3% of revenue, for thethree-month period ended September 27, 2025, as compared to $88.2 million, or 17.3% of revenue, for thethree-month period ended September 28, 2024, an increase of $7.2 million, or 8.2%.
Previous report
The 8.2% increase in branch and regional administrative expenses for thethree-month period ended September 27, 2025, as compared to thethree-month period ended September 28, 2024, was primarily due to the additional branch operations associated with the Thrive acquisition and costs associated with integrating the acquired operations into our operating structure. The overall 2.0% decrease in branch and regional administrative expenses as a percentage of revenue for the three-month period ended September 27, 2025, as compared to the three-month period ended September 28, 2024, resulted from leveraging our branch and regional administrative structure as we grew volumes across our segments.
Previous report
a 1.2% increase in gross margin percentage for the three-month period ended September 27, 2025, as compared to the three-month period ended September 28, 2024; and
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a 2.0% decrease in branch and regional administrative expenses as a percentage of revenue for the three-month period ended September 27, 2025, as compared to the three-month period ended September 28, 2024.
Previous report
Corporate expenses were $52.0 million, or 8.4% of revenue, forthe three-month period ended September 27, 2025, as compared to $31.9 million, or 6.3% of revenue, forthe three-month period ended September 28, 2024. The $20.1 million, or 63.0%, increase in corporate expenses resulted primarily from $16.0 million of professional services associated with refinancing our credit facilities and increased compensation and benefits costs related primarily to additional compensation and benefits costs necessary to support the integration of the Thrive acquisition.
Previous report
Depreciation and amortization was $2.6 million for both the three-month period ended September 27, 2025 and the three-month period ended September 28, 2024.
Previous report
Acquisition-related costs were $(1.2) million for the three-month period ended September 27, 2025, associated with the release of previously accrued costs related to the acquisition of Thrive as compared to $0.2 million for the three-month period ended September 28, 2024.
Previous report
Other operating expense was $0.4 million for thethree-month period ended September 27, 2025, as compared to other operating expense of $2.9 million for thethree-month period ended September 28, 2024, a decrease of $2.4 million. The $2.4 million decrease primarily resulted from the value associated with certain licenses impaired in the comparative periods.
Previous report
Loss on Debt Extinguishment
Previous report
During the three-month period ended September 27, 2025, we restructured our Existing Credit Agreement, as well as terminated our Second Lien Term Loan Credit Agreement (as described in Note 5 to our Quarterly Financial Statements). As a result of the overall debt refinancing, we recognized a $5.9 million loss on debt extinguishment for the three-month period ended September 27, 2025.
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Reworded paragraphs (53)
Previous wording
The following discussion and analysis provides information we believe is relevant to an assessment and understanding of our results of operations, financial condition, liquidity and cash flows for the periods presented below. This discussion should be read in conjunction with the interim unaudited consolidated financial statements and related notes contained elsewhere in this Quarterly Report on Form 10-Q and in conjunction with the audited consolidated financial statements and related notes, our “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in each case included in our Annual Report on Form 10-K for the fiscal year ended December 28, 2024 filed with the SEC. As discussed in the section above titled “Cautionary Note Regarding Forward-Looking Statements,” the following discussion contains forward-looking statements that are based upon our current expectations, including with respect to our future revenues and operating results. Our actual results may differ materially from those anticipated in such forward-looking statements as a result of various factors. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the section titled “Risk Factors” included under Part II, Item 1A below as well as in our Annual Report on Form 10-K for the fiscal year ended December 28, 2024.
Current wording
The following discussion and analysis provides information we believe is relevant to an assessment and understanding of our results of operations, financial condition, liquidity and cash flows for the periods presented below. This discussion should be read in conjunction with the interim unaudited consolidated financial statements and related notes contained elsewhere in this Quarterly Report on Form 10-Q and in conjunction with the audited consolidated financial statements and related notes, our “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in each case included in our Annual Report on Form 10-K for the fiscal year ended January 3, 2026 filed with the SEC. As discussed in the section above titled “Cautionary Note Regarding Forward-Looking Statements,” the following discussion contains forward-looking statements that are based upon our current expectations, including with respect to our future revenues and operating results. Our actual results may differ materially from those anticipated in such forward-looking statements as a result of various factors. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the section titled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 3, 2026.
Previous wording
Our fiscal year ends on the Saturday that is closest to December 31 of a given year, resulting in either a 52-week or 53-week fiscal year. “Fiscal year 2025” refers to the 53-week fiscal year ending on January 3, 2026. “Fiscal year 2024” refers to the 52-week fiscal year ended on December 28, 2024. The “three-month period ended September 27, 2025”, or “third quarter of 2025” refers to the 13-week fiscal quarter ended on September 27, 2025. The “three-month period ended September 28, 2024” or “third quarter of 2024” refers to the 13-week fiscal quarter ended on September 28, 2024. The "nine-month period ended September 27, 2025", or "first nine months of 2025", refers to the period from December 29, 2024 through September 27, 2025. The "nine-month period ended September 28, 2024", or "first nine months of 2024", refers to the period from December 31, 2023 through September 28, 2024.
Current wording
Our fiscal year ends on the Saturday that is closest to December 31 of a given year, resulting in either a 52-week or 53-week fiscal year. “Fiscal year 2026” refers to the 52-week fiscal year ending on January 2, 2027. “Fiscal year 2025” refers to the 53-week fiscal year ended on January 3, 2026. The “three-month period ended April 4, 2026”, or “first quarter of 2026” refers to the 13-week fiscal quarter ended on April 4, 2026. The “three-month period ended March 29, 2025” or “first quarter of 2025” refers to the 13-week fiscal quarter ended on March 29, 2025.
Previous wording
Private Duty Services predominantly includes private duty nursing (“PDN”) services, as well as pediatric therapy services. Our PDN patients typically enter our service as children, as our most significant referral sources for new patients are children’s hospitals. It is common for our PDN patients to continue to receive our services into adulthood, as approximately 30% of our PDN patients are over the age of 18.
Current wording
Private Duty Services predominantly includes private duty nursing services (“PDN Services”), as well as pediatric therapy services (“Therapy Services”). PDN Services patients typically enter our service as children, as our most significant referral sources for new patients are children’s hospitals. It is common for PDN Services patients to continue to receive our services into adulthood, as approximately 30% of our PDN Services patients are over the age of 18.
Previous wording
Our PDN services involve the provision of clinical and non-clinical hourly care to patients in their homes, which is the preferred setting for patient care. PDN services typically last four to 24 hours a day, provided by our registered nurses, licensed practical nurses, home health aides, and other non-clinical caregivers who are focused on providing high-quality short-term and long-term clinical care to medically fragile children and adults with a wide variety of serious illnesses and conditions. Patients who typically qualify for our PDN services include those with the following conditions:
Current wording
PDN Services involve the provision of clinical and non-clinical hourly care to patients in their homes, which is the preferred setting for patient care. PDN Services typically last four to 24 hours a day, provided by our registered nurses, licensed practical nurses, home health aides, and other non-clinical caregivers who are focused on providing high-quality short-term and long-term clinical care to medically complex children and adults with a wide variety of serious illnesses and conditions. Patients who typically qualify for PDN Services include those with the following conditions:
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In-home skilled nursing services to medically fragile children and adults;
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In-home skilled nursing services to medically complex children and adults;
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Through our pediatric therapy services, we provide a valuable multidisciplinary approach that we believe serves all of a child’s therapy needs. We provide both in-clinic and home-based therapy services to our patients. Our therapy services include physical, occupational and speech services. We regularly collaborate with physicians and other community healthcare providers, which allows us to provide more comprehensive care.
Current wording
Therapy Services provide a valuable multidisciplinary approach that we believe serves all of a child’s therapy needs. We provide both in-clinic and home-based therapy services to our patients. Therapy Services include physical, occupational and speech services. We regularly collaborate with physicians and other community healthcare providers, which allows us to provide more comprehensive care.
Previous wording
Our Home Health and Hospice segment predominantly includes home health services, as well as hospice and specialty program services. Our HHH patients typically enter our service as seniors, and our most significant referral sources for new patients are hospitals, physicians and long-term care facilities.
Current wording
Our Home Health and Hospice segment predominantly includes home health services (“HH Services”), as well as hospice and specialty program services. Our HHH patients typically enter our service as seniors, and our most significant referral sources for new patients are hospitals, physicians and long-term care facilities.
Previous wording
Our home health services involve the provision of in-home services to our patients by our clinicians which may include nurses, therapists, social workers and home health aides. Our caregivers work with our patients’ physicians to deliver a personalized plan of care to our patients in their homes. Home healthcare can help our patients recover after a hospitalization or surgery and assist patients in managing chronic illnesses. We also help our patients manage their medications. Through our care, we help our patients recover more fully in the comfort of their own homes, while remaining as independent as possible. Our home health services include: in-home skilled nursing services; physical, occupational and speech therapy; medical social services and aide services.
Current wording
HH Services involve the provision of in-home services to our patients by our clinicians, which may include nurses, therapists, social workers and home health aides. Our caregivers work with our patients’ physicians to deliver a personalized plan of care to our patients in their homes. Home healthcare can help our patients recover after a hospitalization or surgery and assist patients in managing chronic illnesses. We also help our patients manage their medications. Through our care, we help our patients recover more fully in the comfort of their own homes, while remaining as independent as possible. HH Services include: in-home skilled nursing services; physical, occupational and speech therapy; medical social services and aide services.
Previous wording
Operating income was $185.4 million for the nine-month period ended September 27, 2025, as compared to operating income of $94.0 million for the nine-month period ended September 28, 2024, an increase of $91.4 million, or 97.2%.
Current wording
Operating income was $69.3 million for the three-month period ended April 4, 2026, as compared to operating income of $51.8 million for the three-month period ended March 29, 2025, an increase of $17.5 million, or 33.8%.
Previous wording
Operating income for the nine-month period of 2025 was positively impacted by an increase of $120.6 million, or 60.4%, in Field contribution as compared to the nine-month period of 2024. The $120.6 million increase in Field contribution resulted from a $266.1 million, or 17.7%, increase in consolidated revenue and a 4.8% increase in our Field contribution margin to 18.1% for the nine-month period of 2025 from 13.3% for the nine-month period of 2024. The primary driver of our higher Field contribution margin year over year was an increase in gross margin percentage of 2.9% compared to the first nine months of 2024 and a 2.0% decrease in branch and regional administrative expenses as a percentage of revenue to 15.6% for the nine-month period of 2025 from 17.6% for the nine-month period of 2024.
Current wording
Operating income for the three-month period ended April 4, 2026 was positively impacted by an increase of $17.5 million, or 18.9%, in Field contribution as compared to the three-month period ended March 29, 2025. The $17.5 million increase in Field contribution resulted from an $88.7 million, or 15.9%, increase in consolidated revenue and a 0.4% increase in our Field contribution margin to 16.9% for the three-month period ended April 4, 2026 from 16.5% for the three-month period ended March 29, 2025. The primary driver of our higher Field contribution margin period over period was a 1.5% decrease in branch and regional administrative expenses as a percentage of revenue to 14.8% for the three-month period ended April 4, 2026 from 16.3% for the three-month period ended March 29, 2025, partially offset by a decrease in gross margin percentage from 32.8% for the three-month period ended March 29, 2025 to 31.7% for the three-month period ended April 4, 2026.
Previous wording
The following items primarily contributed to the $19.6 million increase in operating income over the comparable third quarter period:
Current wording
The following items primarily contributed to the $17.5 million increase in operating income for the three-month period ended April 4, 2026 compared to the three-month period ended March 29, 2025 primarily consists of:
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a $2.4 million decrease in other operating expense; offset by
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a $0.2 million decrease in other operating expense; offset by
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a $0.5 million decrease in depreciation and amortization; offset by
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a $0.5 million increase in depreciation and amortization; and
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Net income for the three-month period ended September 27, 2025 was $14.1 million, as compared to net loss of $42.8 million for the three-month period ended September 28, 2024. The $56.9 million increase in net income was primarily driven by the following:
Current wording
Net income for the three-month period ended April 4, 2026 was $41.7 million, as compared to net income of $5.2 million for the three-month period ended March 29, 2025. The $36.5 million increase in net income was primarily driven by the following:
Previous wording
Interest Expense, net of Interest Income
Current wording
an $8.7 million decrease in interest expense, net of interest income;
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an aggregate $7.8 million decrease in valuation losses on interest rate derivatives and net settlements received from interest rate derivative counterparties included in other expense (income)compared to the first nine months of 2024;
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an aggregate $8.6 million decrease in valuation losses on interest rate derivatives and net settlements received from interest rate derivative counterparties included in other income (expense) over the comparative period; and
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a $15.9 million, or 9.7%, increase in HHH revenue; and
Current wording
a $9.9 million, or 17.4%, increase in HHH revenue; and
Previous wording
Our PDS segment revenue growth of $248.0 million, or 20.5%, for the nine-month period ended September 27, 2025 was attributable to a 8.7% increase in volume and an 11.8% increase in revenue rate. The 8.7% increase in volume was primarily attributable to growth in demand for non-clinical services and new volumes attributable to the Thrive acquisition which was completed on June 2, 2025.
Current wording
Our PDS segment revenue growth of $75.7 million, or 16.4%, for the three-month period ended April 4, 2026 was attributable to a 10.7% increase in volume and a 5.7% increase in revenue rate. The 10.7% increase in volume was primarily attributable to growth in demand for non-clinical services and new volumes attributable to the Thrive acquisition which was completed on June 2, 2025.
Previous wording
The 12.7% increase in PDS revenue rate for thethree-month period ended September 27, 2025, as compared to thethree-month period ended September 28, 2024, resulted primarily from the following: (i) reimbursement rate increases issued by various state Medicaid programs and Managed Medicaid payers; (ii) higher reimbursement rates associated with volumes attributed to the Thrive acquisition; (iii) increases in value-based payments; and (iv) improved collections on fully reserved aged receivables.
Current wording
The 5.7% increase in PDS revenue rate for the three-month period ended April 4, 2026, as compared to the three-month period ended March 29, 2025, resulted primarily from reimbursement rate increases issued by various state Medicaid programs and Managed Medicaid payers and improved collections on fully reserved aged receivables.
Previous wording
Our HHH segment revenue increase of $15.9 million, or 9.7%, for the nine-month period ended September 27, 2025 resulted primarily from a 6.9% increase in total episodes and a 3.6% increase in home health revenue per completed episode due to improvements in patient mix compared to the first nine months of 2024.
Current wording
Our HHH segment revenue increase of $9.9 million, or 17.4%, for the three-month period ended April 4, 2026 resulted primarily from a 23.1% increase in total episodes compared to the first three months of 2025. Home health episodic mix increased from 77.3% for the first three months of 2025 to 80.9% for the first three months of 2026.
Previous wording
The 14.2% increase in PDS cost of revenue for the nine-month period ended September 27, 2025 resulted from the previously described 8.7% increase in PDS volume combined with a 5.5% increase in PDS cost of revenue rate. The 5.5% increase in cost of revenue rate primarily resulted from higher caregiver labor costs, including the pass-through of reimbursement rate increases net of $6.2 million lower general and professional liability expense associated with certain accrued legal settlements.
Current wording
The 18.8% increase in PDS cost of revenue for the three-month period ended April 4, 2026 resulted from the previously described 10.7% increase in PDS volume combined with an 8.1% increase in PDS cost of revenue rate. The 8.1% increase in cost of revenue rate primarily resulted from higher caregiver labor costs, including the pass-through of reimbursement rate increases and slightly higher general and professional liability expense over the comparable period.
Previous wording
The 8.4% increase in HHH cost of revenue for the nine-month period ended September 27, 2025 was driven primarily by higher home health total episodes.
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The 18.6% increase in HHH cost of revenue for the three-month period ended April 4, 2026 was driven primarily by higher home health total episodes over the comparable period.
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The 0.8% decrease in MS cost of revenue for the nine-month period ended September 27, 2025 was driven by the previously described 2.5% decline in MS volumes partially offset by a 1.7% increase in cost of revenue rate.
Current wording
The 3.6% increase in MS cost of revenue for the three-month period ended April 4, 2026 was driven by the previously described 4.5% increase in MS volumes, partially offset by a 0.9% decrease in cost of revenue rate.
Previous wording
Gross margin was $202.8 million, or 32.6% of revenue, for the three-month period ended September 27, 2025, as compared to $159.7 million, or 31.4% of revenue, for the three-month period ended September 28, 2024. Gross margin increased $43.1 million, or 27.0%, from the comparable prior year quarter. The 1.2% increase in gross margin percentage for the three-month period ended September 27, 2025 resulted from the combined changes in our revenue rates and cost of revenue rates in each of our segments, which we refer to as the change in our spread rate, as follows:
Current wording
Gross margin was $205.4 million, or 31.7% of revenue, for the three-month period ended April 4, 2026, as compared to $183.6 million, or 32.8% of revenue, for the three-month period ended March 29, 2025. Gross margin increased $21.9 million, or 11.9%, from the comparable prior year quarter. The 1.1% decrease in gross margin percentage for the three-month period ended April 4, 2026 resulted from the combined changes in our revenue rates and cost of revenue rates in each of our segments, which we refer to as the change in our spread rate in our PDS and MS segments, and the change in gross margin percentage in our HHH segment, as follows:
Previous wording
a 23.0% increase in PDS spread rate from $10.48 to $12.62 driven by the 12.7% increase in PDS revenue rate, net of the 8.9% increase in PDS cost of revenue rate;
Current wording
a 0.1% increase in PDS spread rate from $12.37 to $12.38 driven by the 5.7% increase in PDS revenue rate, net of the 8.1% increase in PDS cost of revenue rate;
Previous wording
a 0.9% decrease in MS spread rate from $224.79 to $222.76 driven by the 0.6% increase in MS revenue rate, and the 1.8% increase in MS cost of revenue rate; and
Current wording
a 8.1% increase in MS spread rate from $203.74 to $219.53 driven by the 2.9% increase in MS revenue rate, and a 0.9% decrease in MS cost of revenue rate; and
Previous wording
our HHH segment, in which gross margin percentage increased by 0.6%.
Current wording
our HHH segment, in which gross margin percentage decreased by 0.5%.
Previous wording
Field contribution was $107.4 million, or 17.3% of revenue, for the three-month period ended September 27, 2025, as compared to $71.5 million, or 14.0% of revenue, for the three-month period ended September 28, 2024. Field contribution increased $35.9 million, or 50.2%, for the three-month period ended September 27, 2025, as compared to the three-month period ended September 28, 2024. The 3.3% increase in Field contribution margin for the three-month period ended September 27, 2025 resulted from the following:
Current wording
Field contribution was $109.6 million, or 16.9% of revenue, for the three-month period ended April 4, 2026, as compared to $92.2 million, or 16.5% of revenue, for the three-month period ended March 29, 2025. Field contribution increased $17.5 million, or 18.9%, for the three-month period ended April 4, 2026, as compared to the three-month period ended March 29, 2025. The 0.4% increase in Field contribution margin for the three-month period ended April 4, 2026 resulted from the following:
Previous wording
a 2.0% decrease in branch and regional administrative expenses as a percentage of revenue in the nine-month period ended September 27, 2025, as compared to the nine-month period ended September 28, 2024; and
Current wording
a 1.5% decrease in branch and regional administrative expenses as a percentage of revenue in the three-month period ended April 4, 2026, as compared to the three-month period ended March 29, 2025; offset by
Previous wording
a 2.9% increase in gross margin percentage in the nine-month period ended September 27, 2025, as compared to the nine-month period ended September 28, 2024.
Current wording
a 1.1% decrease in gross margin percentage in the three-month period ended April 4, 2026, as compared to the three-month period ended March 29, 2025.
Previous wording
Corporate expenses were $124.0 million, or 7.0% of revenue, forthe nine-month period ended September 27, 2025, as compared to $92.0 million, or 6.1% of revenue, forthe nine-month period ended September 28, 2024. The $32.1 million, or 34.8%, increase in corporate expenses resulted primarily from $16.0 million of professional services associated with refinancing our credit facilities, higher compensation and benefits to support operations and Thrive integration activities, and higher non-cash share-based compensation costs, primarily due to the acceleration of the SMRP in the first quarter of 2025.
Current wording
Corporate expenses were $34.2 million, or 5.3% of revenue, forthe three-month period ended April 4, 2026, as compared to $37.5 million, or 6.7% of revenue, forthe three-month period ended March 29, 2025. The $3.3 million, or 8.9%, decrease in corporate expenses resulted primarily from lower non-cash share-based compensation costs, primarily due to the acceleration of the expense associated with SMRP awards in the first quarter of 2025.
Previous wording
Depreciation and amortization was $7.8 million for the nine-month period ended September 27, 2025, as compared to $8.3 million for the nine-month period ended September 28, 2024, a decrease of $0.5 million, or 6.3%. The $0.5 million decrease primarily resulted from improved capital asset management.
Current wording
Depreciation and amortization was $3.0 million for the three-month period ended April 4, 2026, as compared to $2.6 million for the three-month period ended March 29, 2025, an increase of $0.5 million, or 17.3%. The $0.5 million increase primarily resulted from an increase in amortization expense related to acquired tradenames from Thrive.
Previous wording
Acquisition related costs were $2.3 million for the nine-month period ended September 27, 2025, primarily associated with the acquisition of Thrive as compared to $0.2 million for the nine-month period ended September 28, 2024.
Current wording
Acquisition-related costs were $3.1 million for the three-month period ended April 4, 2026, primarily associated with the pending acquisition of Family First, as compared to $0.1 million for the three-month period ended March 29, 2025.
Previous wording
Interest expense, net of interest income was $34.3 million for the three-month period ended September 27, 2025, as compared to $39.1 million for the three-month period ended September 28, 2024, a decrease of $4.8 million, or 12.4%. The decrease was primarily driven by decreases in the U.S. federal funds rate over the comparable periods. During September 2025 we restructured our Existing Credit Agreement, as well as terminated our Second Lien Term Loan Credit Agreement as part of an overall debt refinancing (as described in Note 5 to our Quarterly Financial Statements) which led to a lower weighted average interest rate. See further analysis under Liquidity and Capital Resources below.
Current wording
Interest expense, net of interest income was $27.5 million for the three-month period ended April 4, 2026, as compared to $36.2 million for the three-month period ended March 29, 2025, a decrease of $8.7 million, or 24.0%. The decrease was primarily driven by a lower U.S. federal funds rate during the three-month period ended April 4, 2026 compared to the three-month period ended March 29, 2025, and the positive effect of the refinancing of our credit facility in the third quarter of 2025. The drivers above reduced our weighted average interest rate from 9.0% as of March 29, 2025 to 7.3% as of April 4, 2026, resulting in lower interest expense. Further, our interest income increased $1.5 million over the comparable periods due to improved liquidity. See further analysis under Liquidity and Capital Resources below.
Previous wording
Other expense was $5.5 million forthe nine-month period ended September 27, 2025, as compared to other income of $2.3 million forthe nine-month period ended September 28, 2024. We realized a $3.1 million decrease in non-cash valuation losses on interest rate derivatives resulting from changes in market expectations of future interest rates as of the comparable valuation dates, offset by a $10.9 million decline in net settlements with interest rate derivative counterparties as interest rates decreased compared to the prior year period due to lower market interest rates. Details of other (expense) income included the following:
Current wording
Other income was $3.1 million forthe three-month period ended April 4, 2026, as compared to other expense of $5.5 million forthe three-month period ended March 29, 2025. We realized an $11.0 million decrease in non-cash valuation losses on interest rate derivatives resulting from changes in market expectations of future interest rates as of the comparable valuation dates, offset by a $2.3 million decrease in net settlements with interest rate derivative counterparties as interest rates decreased compared to the prior year period due to lower market interest rates. Details of other income (expense) included the following:
Previous wording
We record income tax expense during interim periods based on our estimate of the annual effective income tax rate, adjusted each quarter for discrete items. We analyze various factors to determine the estimated annual effective income tax rate, including projections of our annual earnings, the impact of state and local income taxes, our ability to use tax credits and net operating loss carryforwards, and available tax planning alternatives. We incurred income tax benefit of $0.6 million for thethree-month period ended September 27, 2025, as compared to income tax expense of $15.5 million for thethree-month period ended September 28, 2024. This decrease in tax expense was primarily driven by including the full estimated effect of the OBBBA which was enacted on July 4, 2025, partially offset by differences in our projections of annual earnings at the end of each comparable three-month period, as well as changes in federal and state valuation allowances, and changes to federal and state current tax expense due to certain non-deductible expenses, most notably interest expense.
Current wording
We record income tax expense during interim periods based on our estimate of the annual effective income tax rate, adjusted each quarter for discrete items. We analyze various factors to determine the estimated annual effective income tax rate, including projections of our annual earnings, the impact of state and local income taxes, our ability to use tax credits and net operating loss carryforwards, and available tax planning alternatives. We incurred income tax expense of $3.3 million for the three-month period ended April 4, 2026, as compared to income tax expense of $5.0 million for the three-month period ended March 29, 2025. This decrease in tax expense was primarily driven by a discrete benefit that was partially offset by differences in our projections of annual earnings at the end of each comparable three-month period, as well as the changes to federal and state current tax expense and the changes in federal and state valuation allowances due to certain non-deductible expenses, most notably interest expense and executive compensation, while also including the effect of the OBBBA, which was enacted on July 4, 2025.
Previous wording
In addition to our results of operations prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), which we have discussed above, we also evaluate our financial performance using EBITDA, Adjusted EBITDA, Field contribution and Field contribution margin.
Current wording
In addition to our results of operations prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”, or “GAAP”), which we have discussed above, we also evaluate our financial performance using EBITDA, Adjusted EBITDA, Field contribution and Field contribution margin.
Previous wording
EBITDA and Adjusted EBITDA are non-GAAP financial measures and are not intended to replace financial performance measures determined in accordance with U.S. GAAP, such as net income or loss. Rather, we present EBITDA and Adjusted EBITDA as supplemental measures of our performance. We define EBITDA as net income or loss before interest expense, net; income tax expense or benefit; and depreciation and amortization. We define Adjusted EBITDA as EBITDA, adjusted for the impact of certain other items that are either non-recurring, infrequent, non-cash, unusual, or items deemed by management to not be indicative of the performance of our core operations, including impairments of goodwill, intangible assets, and other long-lived assets; non-cash, share-based compensation, and associated employer payroll taxes; loss on extinguishment of debt; fees related to debt modifications; the effect of interest rate derivatives; acquisition-related and integration costs; legal costs and settlements associated with acquisition matters; restructuring costs; other legal matters; other system transition costs, professional fees; and other costs including gains and losses on acquisitions and dispositions of certain businesses. As non-GAAP financial measures, our computations of EBITDA and Adjusted EBITDA may vary from similarly termed non-GAAP financial measures used by other companies, making comparisons with other companies on the basis of this measure impracticable.
Current wording
EBITDA and Adjusted EBITDA are non-GAAP financial measures and are not intended to replace financial performance measures determined in accordance with U.S. GAAP, such as net income or loss. Rather, we present EBITDA and Adjusted EBITDA as supplemental measures of our performance. We define EBITDA as net income or loss before interest expense, net; income tax expense or benefit; and depreciation and amortization. We define Adjusted EBITDA as EBITDA, adjusted for the impact of certain other items that are either non-recurring, infrequent, non-cash, unusual, or items deemed by management to not be indicative of the performance of our core operations, including impairments of goodwill, intangible assets, and other long-lived assets; non-cash, share-based compensation, and associated employer payroll taxes; loss on extinguishment of debt; fees related to debt modifications; the effect of interest rate derivatives; acquisition-related and integration costs; legal costs and settlements associated with acquisition matters; restructuring costs; other legal matters; and other costs including gains and losses on acquisitions and dispositions of certain businesses. As non-GAAP financial measures, our computations of EBITDA and Adjusted EBITDA may vary from similarly termed non-GAAP financial measures used by other companies, making comparisons with other companies on the basis of this measure impracticable.
Previous wording
Represents valuation adjustments and settlements associated with interest rate derivatives that are not included in interest expense, net. Such items are included in other (expense) income.
Current wording
Represents valuation adjustments and settlements associated with interest rate derivatives that are not included in interest expense, net. Such items are included in other income (expense).
Previous wording
Represents (i) costs associated with our Integration Management Office, which focuses on our integration efforts and transformational projects such as systems conversions and implementations, material cost reduction and restructuring projects, among other things, of $0.5 million and $1.2 million for the three and nine-month periods ended September 27, 2025, respectively, and $0.3 million and $0.8 million for the three and nine-month periods ended September 28, 2024, respectively; and (ii) transitionary costs incurred to integrate acquired companies into our field and corporate operations of $1.8 million and $3.6 million for the three and nine-month periods ended September 27, 2025, respectively, and $0.1 million for the nine-month period ended September 28, 2024. No such cost was recorded during the three-month period ended September 28, 2024. Transitionary costs incurred to integrate acquired companies include IT consulting costs and related integration support costs; salary, severance and retention costs associated with duplicative acquired company personnel until such personnel are exited from the Company; accounting, legal and consulting costs; expenses and impairments related to the closure and consolidation of overlapping markets of acquired companies, including lease termination and relocation costs; costs associated with terminating legacy acquired company contracts and systems; and one-time costs associated with rebranding our acquired companies and locations to the Aveanna brand.
Current wording
Represents (i) costs associated with our Integration Management Office, which focuses on our integration efforts and transformational projects such as systems conversions and implementations, material cost reduction and restructuring projects, among other things, of $0.5 million for the three-month period ended April 4, 2026, and $0.2 million for the three-month period ended March 29, 2025; and (ii) transitionary costs incurred to integrate acquired companies into our field and corporate operations of $0.9 million for the three-month period ended April 4, 2026, and $0.1 million for the three-month period ended March 29, 2025. Transitionary costs incurred to integrate acquired companies include IT consulting costs and related integration support costs; salary, severance and retention costs associated with duplicative acquired company personnel until such personnel are exited from the Company; accounting, legal and consulting costs; expenses and impairments related to the closure and consolidation of overlapping markets of acquired companies, including lease termination and relocation costs; costs associated with terminating legacy acquired company contracts and systems; and one-time costs associated with rebranding our acquired companies and locations to the Aveanna brand.
Showing the first 40 of 53 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Field Contribution and Field Contribution Margin
Current report — wording carried from elsewhere
Field Contribution and Field Contribution Margin
Rearranged previous paragraphs (23)
Previous report — wording carried elsewhere
The following table summarizes the revenues generated by each of our segments for the nine-month periods ended September 27, 2025 and September 28, 2024, respectively:
Previous report — wording carried elsewhere
The following discussion of our results of operations should be read in conjunction with the foregoing tables summarizing our consolidated results of operations and key performance measures, as well as our interim unaudited consolidated financial statements of operations contained in this Quarterly Report on Form 10-Q (our "Quarterly Financial Statements") and our audited consolidated financial statements contained in our Annual Report on Form 10-K for the fiscal year ended December 28, 2024.
Previous report — wording carried elsewhere
a $16.1 million decrease in tax expense; and
Previous report — wording carried elsewhere
an aggregate $22.2 million decrease in valuation losses on interest rate derivatives and net settlements received from interest rate derivative counterparties included in other expense compared to the third quarter of 2024; offset by
Previous report — wording carried elsewhere
Our PDS segment revenue growth of $104.9 million, or 25.6%, for thethree-month period ended September 27, 2025 was attributable to a 12.9% increase in volume and a 12.7% increase in revenue rate. The 12.9% increase in volume was primarily attributable to volume from the Thrive acquisition which was completed on June 2, 2025, and growth in demand for non-clinical services.
Previous report — wording carried elsewhere
The 21.8% increase in PDS cost of revenue for thethree-month period ended September 27, 2025 resulted from the previously described 12.9% increase in PDS volume combined with a 8.9% increase in PDS cost of revenue rate. The 8.9% increase in cost of revenue rate primarily resulted from higher caregiver labor costs, including the pass-through of reimbursement rate increases and higher labor rates associated with volumes attributed to the Thrive acquisition.
Previous report — wording carried elsewhere
a 0.6% decrease in gross margin percentage in our HHH segment.
Previous report — wording carried elsewhere
Other expense was less than $0.1 million forthe three-month period ended September 27, 2025, as compared to other expense of $22.2 million forthe three-month period ended September 28, 2024, a decrease of $22.2 million. We realized a $25.8 million decrease in non-cash valuation losses associated with interest rate derivatives resulting from changes in market expectations of future interest rates as of the comparable quarter-end valuation date, partially offset by a $3.8 million decrease in net settlements with interest rate derivative counterparties as interest rates decreased compared to the prior year fiscal quarter due to lower market interest rates. Details of other expense included the following:
Previous report — wording carried elsewhere
The following table summarizes our consolidated results of operations, including Field contribution, which is a non-GAAP measure (see “Non-GAAP Financial Measures” below), for the nine-month periods indicated:
Previous report — wording carried elsewhere
The following table summarizes our consolidated key performance measures, including Field contribution and Field contribution margin, which are non-GAAP measures (see “Non-GAAP Financial Measures” below), for the nine-month periods indicated:
Previous report — wording carried elsewhere
The following tables summarize our key performance measures by segment for the nine-month periods indicated:
Previous report — wording carried elsewhere
Represents the period over period change in revenue rate, plus the change in revenue rate attributable to the change in volume.
Previous report — wording carried elsewhere
Represents the period over period change in cost of patient services rate, plus the change in cost of patient services rate attributable to the change in volume.
Previous report — wording carried elsewhere
Represents the period over period change in spread rate, plus the change in spread rate attributable to the change in volume.
Previous report — wording carried elsewhere
Represents home health episodic and other admissions.
Previous report — wording carried elsewhere
Represents the ratio of home health episodic admissions to home health total admissions.
Previous report — wording carried elsewhere
Represents Medicare revenue per completed episode.
Previous report — wording carried elsewhere
Cost of Revenue, Excluding Depreciation and Amortization
Previous report — wording carried elsewhere
Gross Margin and Gross Margin Percentage
Previous report — wording carried elsewhere
Gross margin was $597.2 million, or 33.7% of revenue, for the nine-month period ended September 27, 2025, as compared to $463.8 million, or 30.8% of revenue, for the nine-month period ended September 28, 2024. Gross margin increased $133.4 million, or 28.8%, from the comparable prior year quarter. The 2.9% increase in gross margin percentage for the nine-month period ended September 27, 2025 resulted from the combined changes in our revenue rates and cost of revenue rates in each of our segments, which we refer to as the change in our spread rate, as follows:
Previous report — wording carried elsewhere
Field contribution and Field contribution margin are non-GAAP financial measures. See “Non-GAAP Financial Measures” below.
Previous report — wording carried elsewhere
Corporate expenses as a percentage of revenue for the nine-month periods ended September 27, 2025 and September 28, 2024 were as follows:
Previous report — wording carried elsewhere
We record income tax expense during interim periods based on our estimate of the annual effective income tax rate, adjusted each quarter for discrete items. We analyze various factors to determine the estimated annual effective income tax rate, including projections of our annual earnings, the impact of state and local income taxes, our ability to use tax credits and net operating loss carryforwards, and available tax planning alternatives. We incurred income tax expense of $21.4 million for the nine-month period ended September 27, 2025, as compared to income tax expense of $18.2 million for the nine-month period ended September 28, 2024. This increase in tax expense was primarily driven by differences in our projections of annual earnings at the end of each comparable nine-month period, as well as the changes to federal and state current tax expense and the changes in federal and state valuation allowances due to certain non-deductible expenses, most notably interest expense, while also including the full estimated effect of the OBBBA, which was enacted on July 4, 2025.