Addus HomeCare (ADUS) EPS Jump Supports Bullish Narratives Despite Below‑Market Growth Forecasts

Addus HomeCare (ADUS) closed out FY 2025 with fourth quarter revenue of US$373.1 million and basic EPS of US$1.61, while trailing twelve month figures reached US$1.4b in revenue and US$5.22 in EPS. The company has seen quarterly revenue move from US$297.1 million in Q4 2024 to US$373.1 million in Q4 2025, and basic EPS rise from US$1.07 to US$1.61 over the same period. This ties into a year of 30.3% earnings growth supported by a 6.7% net margin. For investors, this combination of higher earnings, steady margins and high earnings quality frames a results season where profitability and cash generation remain at the center of the story.

See our full analysis for Addus HomeCare.

With the headline numbers on the table, the next step is to see how this latest print lines up with the widely held narratives about Addus, highlighting which views the results support and which might need a rethink.

See what the community is saying about Addus HomeCare

30.3% earnings growth with 6.7% margin

• Over the last 12 months, Addus earned US$95.9 million on US$1.4b of revenue, which works out to 30.3% earnings growth and a 6.7% net margin compared with 6.4% a year earlier.
• Consensus narrative leans positive on this profile, pointing to recent acquisitions and tech investments as growth drivers. However, the actual revenue forecasts of about 5.5% per year and earnings growth of about 12.3% per year are more measured than the backward looking 30.3%, which keeps expectations in check.
  • That gap between past earnings growth (30.3%) and future earnings expectations (12.3% per year) means the recent pace is not simply being projected forward.
  • At the same time, the small step up in net margin from 6.4% to 6.7% lines up with the idea that efficiency and acquisition benefits are feeding into profitability, just not at runaway levels.

Quarterly EPS climb tests bullish case

• Basic EPS moved across 2025 from US$1.18 in Q1 to US$1.61 in Q4, while quarterly net income rose from US$21.2 million to US$29.8 million over the same period.
• Bulls argue that acquisitions, rate increases and technology can keep lifting earnings, and this step up in quarterly EPS gives them support. Yet the dataset’s longer term earnings growth expectation of about 12.3% per year is more conservative than the bullish narrative that talks about revenue growing 12.0% annually and margins moving from 6.5% to 8.1%.
  • On one hand, the trailing twelve month EPS of US$5.22 and 30.3% earnings growth heavily support the idea that the business can scale earnings when conditions are favorable.
  • On the other hand, with revenue growth forecasts at about 5.5% per year, the bullish view that sees room for much faster revenue and margin expansion is clearly more optimistic than the base case built into the dataset.

If you want to see how the optimistic view lines up with the numbers behind this report, check out the detailed bull thesis for Addus here 🐂 Addus HomeCare Bull Case

Below-market growth, below-peer valuation

• The shares trade on a P/E of about 20x against a current price of US$105.20, compared with a peer average P/E of about 76.8x and a US healthcare industry P/E of about 24.1x, while the DCF fair value in the dataset is US$225.92 and the single allowed analyst price target is US$140.62.
• Bears focus on slower forecast growth, and the numbers support that angle to a degree, since revenue is expected to grow about 5.5% per year and earnings about 12.3% per year, both below the US market figures mentioned in the dataset. Yet that caution sits alongside a valuation picture where the stock trades at a lower P/E than peers and below the DCF fair value.
  • Critics highlight that dependence on government reimbursement and forecast growth below the broader US market could justify a discount, which fits with the P/E sitting under the industry average.
  • What stands out though is that the DCF fair value of US$225.92 is more than double the current US$105.20 price, so anyone leaning on the bearish growth concerns also has to weigh that against both the lower P/E and the higher intrinsic value estimate in the dataset.

Skeptics point to policy and growth risks, but the valuation gap is hard to ignore if you follow the cautious narrative in detail 🐻 Addus HomeCare Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Addus HomeCare on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of strong recent results and mixed expectations has you thinking, it might be worth reviewing the underlying data yourself and deciding how it all fits together before sentiment shifts again. To round out your view, take a look at the 5 key rewards our analysis has highlighted for the company.

See What Else Is Out There

Forecast revenue growth of about 5.5% per year and earnings growth of about 12.3% per year sit below broader US market expectations in the dataset.

If that slower outlook has you hesitant to lean too heavily on a single company, it is worth checking our 51 high quality undervalued stocks to quickly spot other ideas where expectations and pricing might look more appealing.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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