Enhabit, Inc. (NYSE: Ehab), a leading home health and hospice care provider, has reported its financial results for the fourth quarter ended December 31, 2025. The company's net service revenue for the quarter was $270.4 million, with a net loss attributable to Enhabit, Inc. of $38.7 million. Additionally, the adjusted EBITDA stood at $28.0 million, and the diluted loss per share was $0.76, while the adjusted diluted earnings per share were $0.14.
The company saw a 4.7% increase in total net service revenue compared to the same period in 2024. The home health net service revenue increased by 3.2% to $206.8 million, and hospice net service revenue saw a significant increase of 10.0% to $63.6 million.
Enhabit experienced a 11.6% growth in consolidated adjusted EBITDA year over year. The gross margin for the company increased by 5.3% to 48.7%. The total operating expenses were reported at 89.5% of revenue in Q4 2025 compared to 90.2% in Q4 2024.
In terms of operational metrics, the home health segment saw a 7.3% year-over-year growth in admissions, with a 6.4% increase in average daily census. The company also reported a 9.9% growth in hospice average daily census and a 0.8% increase in hospice admissions.
The merger agreement with Kinderhook Industries, LLC for the acquisition of Enhabit at $13.80 per share is a significant development. This merger is expected to close in the second quarter of 2026, subject to stockholder approval and other customary closing conditions.
Enhabit's consistent execution of its strategy throughout the year has resulted in improved free cash flow, enabling the company to strengthen its balance sheet and position itself for accelerated growth and investment in 2026.
Today the company's shares have moved -3.4% to a price of $10.52. For more information, read the company's full 8-K submission here.
