Healthcare Services Group reported first-quarter revenue of $462.8 million, up 3.4% from a year earlier, as the company said new client wins and high retention rates lifted top-line growth.
Net income was $26.1 million, while diluted earnings per share came in at $0.37.
Operating cash flow reached $43.7 million in the quarter. Excluding the $20.3 million increase in payroll accrual, cash flow from operations was $23.4 million.
The company ended the quarter with $214.6 million in cash and marketable securities and an unused $300.0 million revolving credit facility.
Cost of services totaled $386.9 million, or 83.6% of revenue. SG&A was $42.0 million, and after adjusting for a $1.6 million decrease in deferred compensation, SG&A was $43.6 million, or 9.4% of revenue.
By segment, environmental services revenue was $208.3 million with a 12.1% margin, while dietary services revenue was $254.5 million with a 9.0% margin.
The company repurchased $24.0 million of its stock during the quarter and said it still has 9.2 million shares remaining under its February 2026 authorization.
Healthcare Services Group reiterated its 2026 outlook for mid-single-digit revenue growth. Today the company's shares have moved -2.95% to a price of $19.11. For the full picture, make sure to review HEALTHCARE SERVICES GROUP INC's 8-K report.
