Aveanna Healthcare Lifts 2025 Outlook Amidst Surging Revenue and Margin Expansion
Strong Third Quarter Delivers Double-Digit Revenue and EBITDA Growth
Aveanna Healthcare Holdings delivered an impressive set of third quarter results, reporting revenue of $621.94 million—up 22.2% from the prior year period—and net income swinging to $14.06 million compared to a net loss last year. The company’s adjusted EBITDA surged by 67.5% year-over-year to $80.13 million, reflecting both revenue strength and efficiency gains across all divisions.
Operational Highlights: Broad-Based Performance Fuels Profitability
Growth was powered primarily by Aveanna’s Personal Care & Support (PDS) segment, which posted a 25.6% year-over-year revenue jump. Home Health & Hospice (HHH) and Medical Solutions (MS) contributed modestly, but gains were evident across all units. Field contribution margins expanded significantly, with a 17.3% margin for the quarter versus 14% a year earlier.
Here’s a look at key segment-level performance for the quarter:
| Segment | Q3 Revenue ($M) | Y/Y Change | Gross Margin (%) |
|---|---|---|---|
| PDS | 514.43 | +25.6% | 29.0% |
| HHH | 62.43 | +15.3% | 53.3% |
| MS | 45.08 | -0.5% | 45.0% |
Margin Expansion and Operational Leverage
Gross margin for the quarter improved to 32.6% of revenue (from 31.4% last year), and operating income rose 57.5% year-over-year. The company’s field contribution and field contribution margin also leapt, signaling strong leverage in Aveanna’s operating model. The following summary table underscores key profitability improvements:
| Q3 2025 | Q3 2024 | Change | |
|---|---|---|---|
| Revenue ($M) | 621.94 | 509.02 | +22.2% |
| Gross Margin ($M) | 202.82 | 159.70 | +27.0% |
| Adjusted EBITDA ($M) | 80.13 | 47.84 | +67.5% |
| Net Income ($M) | 14.06 | (42.84) | — |
| Field Contribution Margin (%) | 17.3% | 14.0% | +3.3 pts |
Financial Position: Increased Liquidity and Lower Risk
Aveanna ended the quarter with $145.87 million in cash and an expanded revolving credit facility, having refinanced key debt facilities and extended maturities out to 2030 and 2032. Net cash from operating activities reached $76.14 million year-to-date, supporting free cash flow of $86.15 million.
| Metric | Q3 2025 | Q3 2024 |
|---|---|---|
| Cash & Equivalents ($M) | 145.87 | 78.46 |
| Total Indebtedness ($M) | 1,490.00 | n/a |
| Free Cash Flow YTD ($M) | 86.15 | n/a |
Revised 2025 Outlook: Revenue and EBITDA Targets Raised
Management raised its full-year 2025 revenue guidance to over $2.375 billion (previously above $2.3 billion) and expects adjusted EBITDA to surpass $300 million, up from a prior view of $270 million. These upward revisions reflect strong segment performance, ongoing cost discipline, and expected synergies from the ongoing Thrive Skilled Pediatric Care integration.
CEO Jeff Shaner and CFO Matt Buckhalter both highlighted sustained business momentum and improved execution as key factors behind the increased outlook, pointing to strong national demand for home care services and Aveanna’s strategic transformation efforts.
Key Takeaways for Investors
Aveanna’s quarter stands out for robust revenue and profit expansion, field margin improvement, and a clear signal of confidence from management via raised guidance. Continued debt management and liquidity growth further support the business’ trajectory.
With integration efforts and efficiency initiatives continuing, Aveanna is positioning itself for solid growth through 2025. Investors and analysts may want to monitor margin progression, segment performance, and ongoing integration milestones as the year concludes.
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