The quarter cleared the market’s bar. Revenue reached $670.5 million versus a published consensus of roughly $650.4 million, while diluted EPS was $0.18 versus approximately $0.17 expected. Adjusted EPS was higher at $0.22, up from $0.18 a year earlier. That makes this more than a routine in-line report. (Financial Highlights; Income Statement)
| Metric | Q2 2026 | Q2 2025 | Change / expectation |
|---|---|---|---|
| Revenue | $670.5M | $589.6M | +13.7%; roughly $650.4M consensus |
| Net income | $40.3M | $27.0M | +49.1% |
| Diluted EPS | $0.18 | $0.13 | Versus roughly $0.17 consensus |
| Adjusted diluted EPS | $0.22 | $0.18 | +22.2% |
| Adjusted EBITDA | $95.4M | $88.4M | +8.0% |
| Gross margin | 32.6% | 35.8% | Down 3.2 percentage points |
| Field contribution margin | 18.1% | 20.5% | Down 2.4 percentage points |
The bigger signal is the unusually large guidance upgrade. Full-year revenue guidance moved from $2.63–$2.65 billion to above $2.68 billion, while Adjusted EBITDA guidance rose from $338–$342 million to above $365 million. The EBITDA midpoint increased by at least roughly 7%, a stronger upgrade than the revenue change and the clearest evidence that management sees the first-half performance as durable rather than a one-quarter event. (Full Year 2026 Guidance)
Growth is still being purchased with lower field profitability. Revenue expanded across all three divisions, led by Private Duty Services, but Q2 gross margin fell to 32.6% from 35.8%. PDS revenue rose 14.0%, yet its spread rate declined 11.1% to $12.88 per hour; field contribution margin also contracted to 18.1% from 20.5%. This does not overturn the beat, but it limits how clean the operating improvement is. (Segment Results — PDS; Key Performance Measures)
The net read is clearly above expectations, with leverage still the watchpoint. Six-month operating cash flow was $85.3 million and free cash flow was $75.4 million, while total debt stood at $1.48 billion against $97.2 million of cash. Lower interest expense helped earnings, and the company has substantial revolver capacity, but the balance sheet remains heavily indebted. Overall, the earnings beat and materially higher EBITDA outlook outweigh the margin compression, making this a genuine Beat rather than merely a favorable presentation. (Cash Flow and Information about Indebtedness; Liquidity, Cash Flow, and Debt)
Read the original 8-K on SEC EDGAR ↗