Healthcare Services Group Inc

Latest Results (02.09.2026):

Healthcare Services Group, Inc.'s fourth quarter of 2025 (Q4 2025) results showed continued revenue and profit growth: revenue was $466.7 million for the quarter (up 6.6%) and $1.84 billion for the year (up 7.1%), net income was $31.2 million for the quarter ($0.44 diluted EPS) and $59.1 million for the year ($0.81 diluted EPS), with solid adjusted cash flow and an active capital return program alongside a mid-single-digit revenue growth outlook for 2026.

Revenue and segments

Q4 revenue: $466.7M (+6.6% y/y). FY 2025 revenue: $1.84B (+7.1% y/y). Segment detail (Q4): Environmental Services $210.8M (margin 12.6%); Dietary Services $255.9M (margin 7.2%).

Profitability

Q4 net income $31.2M; diluted EPS $0.44. FY net income $59.1M; diluted EPS $0.81. Operating income for Q4 was $25.9M; Adjusted EBITDA for Q4 $33.2M (7.1% of revenue).

Costs and margin targets

Q4 cost of services was $394.6M (84.6% of revenue). SG&A (adjusted for deferred comp) was $45.8M (9.8% of revenue). Company targets for 2026: cost of services in the ~86% range and SG&A in 9.5%–10.5% (longer‑term 8.5%–9.5%).

Cash flow and liquidity

GAAP cash flow from operations Q4 $17.4M; adjusted for payroll timing $36.4M. FY GAAP cash flow $145.0M; adjusted $164.1M. Cash and marketable securities combined ~$203.9M and ~$300M of undrawn revolving credit available.

Share repurchases and capital allocation

Completed $50.0M buyback program early and repurchased $61.6M in 2025. Board authorized up to 10.0M shares and a new $75.0M repurchase program over the next 12 months, with plans to accelerate buybacks.

Tax rate and other items

Q4 effective tax rate reflected a 9.4% benefit (includes an $8.3M ERC benefit); FY effective tax rate 13.0%. Company expects its 2026 effective tax rate to be approximately 25%.

2026 outlook

Healthcare Services Group, Inc. expects mid-single-digit revenue growth in 2026 and reiterated focus on executing strategic priorities to drive sustainable, profitable growth.