Healthcare Services Group Inc. has recently released its 10-K report, revealing its operations and financial performance for the year ended December 31, 2025. The company, incorporated in 1976 and based in Bensalem, Pennsylvania, provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of healthcare facilities in the United States. It operates through two segments, Housekeeping and Dietary, serving approximately 2,800 facilities throughout the continental United States. The Housekeeping segment includes cleaning, disinfecting, and sanitizing services, while the Dietary segment focuses on food purchasing, meal preparation, and professional dietitian services.
In the year ended December 31, 2025, Healthcare Services Group Inc. reported consolidated revenues of $1,837.2 million, marking a 7.1% increase from the previous year. The Housekeeping segment contributed approximately 44.9% or $824.7 million of the consolidated revenues, while the Dietary segment contributed approximately 55.1% or $1,012.5 million.
The company's ability to acquire new customers, retain existing customers, and increase revenues is influenced by competitive factors, including competition with in-house support staff and other firms in the regional and national markets. Healthcare Services Group Inc. also seeks to demonstrate the cost-effectiveness of its services and the benefits of relieving healthcare facilities of administrative and operational challenges.
The costs of services provided by the company increased by 7.4% to $1,597.8 million for the year ended December 31, 2025. Notably, the company recognized $34.2 million of income related to the receipt of Employee Retention Credit (ERC) refunds and $63.9 million of bad debt expense associated with the Genesis bankruptcy.
The company's financial performance for the year ended December 31, 2025, reflects an increase in consolidated revenues and costs of services provided. The Housekeeping and Dietary segments both experienced revenue increases, driven by factors such as an increase in facilities serviced, contractual pricing, and organic growth through expanding services performed for existing customers. However, the segments also saw increases in segment expenses as a percentage of segment revenues, influenced by labor costs, supplies, bad debt expense, and other costs.
Following these announcements, the company's shares moved -1.19%, and are now trading at a price of $19.09. Check out the company's full 10-K submission here.
