Addus HomeCare Corporation (ADUS) - Stock Analysis
Last updated: Jan 18, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Addus HomeCare posted 21.8% YoY revenue growth in Q2 2025, margin expansion, reduced leverage, and strong cash flow. It benefits from favorable reimbursement rate hikes and recent acquisitions, with bullish technical trends signaling positive momentum ahead of a November 3 earnings release.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Strong free cashflow ⢠Large intangible base ⢠High SG&A burden ADUS generates strong, consistent free cash flow and improving leverage but only moderate margins and adequate liquidity while facing material risk from a very large intangible asset base and cash-flow volatility.
Price Behavior
Key Price Behavior Insights: ⢠Failed resistance ⢠Maintained support ⢠Moderate momentum Support Level: $107â$109 Resistance Level: $115â$117 Over the last month ADUS has trended modestly lower from a midâDecember peak near $115 to about $107.5 by midâJanuary, encountering resistance at $115â$117 while holding support around $107â$109, indicating short-term bearish pressure but limited downside so far.
Sentiment & News
Key News Insights: ⢠Zacks upgrade ⢠AI & home-care ⢠Peer comparisons December headlines show rising optimism for Addus (ADUS) driven by a Zacks upgrade, AI and home-care tailwinds, and favorable peer comparisons highlighting improving earnings and competitive position.
AI Summary
ADUS's investment pivot hinges on whether management can convert acquisition-driven revenue and state reimbursement tailwinds into repeatable free-cash-flow and midâteens EBITDA margins without overleveraging or triggering goodwill impairments; investors should therefore monitor quarterly FCF stability, net leverage staying <1x, and concrete EMR/integration milestones as the primary go/noâgo signals. The biggest actionable risk is execution â failures on integration, EMR consolidation, or reimbursement permanence would rapidly reverse the upside and amplify impairment and cashâvolatility exposure.
Description
Addus HomeCare provides in-home personal care, hospice, and home health services to elderly, chronically ill, disabled people and those at risk of hospitalization in the United States. Its Personal Care unit supplies non-medical assistance with daily living activities, the Hospice unit delivers palliative and family support services, and the Home Health unit offers skilled nursing and rehabilitative therapies. The company contracts with government programs, managed care organizations, commercial insurers and private clients, and as of December 31, 2021 operated 206 offices in 22 states; it was founded in 1979 and is based in Frisco, Texas.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Oct 20 | Oct 27 | ADUS | Addus HomeCare Corporation | Addus HomeCare posted 21.8% YoY revenue growth in Q2 2025, margin expansion, reduced leverage, and strong cash flow. It benefits from favorable reimbursement rate hikes and recent acquisitions, with bullish technical trends signaling positive momentum ahead of a November 3 earnings release. | Closed | +0.0% |