Aveanna Healthcare Holdings Inc.

Revenue for Q2 was $670.5 million, up 13.7% year over year. Adjusted EBITDA was $95.4 million, up 8% year over year. Consolidated gross margin was $218.5 million, or 32.6%. By segment, home health and hospice revenue rose 14.8%, private duty services revenue rose 14.0%, and medical solutions revenue rose 9.4%. Management said Q2 benefited from improved rate and volume environments, operational efficiencies, and better caregiver hiring/retention trends. For 2026, Aveanna raised guidance to revenue greater than $2.68 billion and adjusted EBITDA greater than $365 million. Management also raised long-term organic growth targets to 5% to 6% for private duty services, 8% to 10% for home health and hospice, and kept medical solutions at 8% to 10%.

Jeffrey Shaner framed the quarter as evidence that Aveanna’s preferred payer and government reimbursement strategy is working. He emphasized that demand in home and community-based care remains strong and that the company is shifting caregiver capacity toward payers willing to support enhanced reimbursement and value-based arrangements. He also highlighted California’s 2027 pediatric private duty nursing rate increase as the final piece in a multi-year state advocacy effort, calling it a meaningful milestone for both access and staffing.

Matthew Buckhalter said Q2 revenue reached $670.5 million and adjusted EBITDA was $95.4 million, while consolidated gross margin was 32.6%. He pointed to PDS gross margin of 28.9%, home health and hospice gross margin of 53.9%, and medical solutions gross margin of 45.1%, saying margins were in line with expectations and should remain in a similar range. On the balance sheet, Aveanna ended Q2 with about $433 million of liquidity, including $97 million of cash, and generated $85.3 million of operating cash flow and $75.4 million of free cash flow year to date; the company also repriced its term loan by 75 basis points, which should cut annual interest expense by about $10 million.

Analysts focused on whether the higher long-term growth targets imply higher margins, and management said gross margin percentages should stay roughly consistent because wage pass-through remains central to the model. They also pressed on California, and management said the final 2027 rate schedule should be updated by the end of September, with wage increases expected to begin in late Q3 or Q4 before the new rate takes effect on January 1, 2027. On M&A and leverage, management said Family First was already funded with cash on hand, that the pipeline remains robust, and that the long-term goal is still to get below 3x leverage.