We’re taking a look at five major players in the Home Health & Hospice (HH&H) industry that reported earnings for the third quarter of 2025. HH&H activity tempered in the quarter to 23 deals after a stronger first half of the year, with 29 announced in Q1 and 27 announced in Q2. Despite the decline in overall M&A volume, with deals dropping nearly 15% quarter-over-quarter due to fewer non-medical home care transactions, strategic acquisitions persisted among larger players.
Recent earnings reports from UnitedHealth Group, Humana, Addus HomeCare, Enhabit Home Health and Hospice and Pennant Group provide insights into how providers are offsetting reimbursement headwinds through payer diversification and M&A-driven scale, all while tightening costs in a maturing market.
UnitedHealth Group
UnitedHealth Group demonstrated resilience in Q3 2025, posting consolidated revenues of $113.2 billion, a 12% increase from Q3 2024. GAAP earnings per share came in at $2.59, with adjusted earnings per share of $2.92. The company’s Optum segment, which encompasses home health and hospice services, generated $69.2 billion in revenues, up 8% year-over-year, primarily fueled by Optum Rx’s 16% revenue growth but tempered by softer volumes in Optum Insight. Overall earnings from operations reached $4.3 billion, reflecting a net margin of 2.1%.
During the company’s Q3 earnings call, CEO Andrew Witty highlighted Optum’s positioning as a core growth engine, noting the August 14 closure of the $3.3 billion acquisition of Amedisys as a pivotal step to enhance home-based care capabilities and drive synergies across the network. The deal added scale to Optum’s home health operations, with early integration efforts focusing on technology alignment and clinician retention to support value-based care models.
Humana
Humana reported Q3 2025 revenues of $32.65 billion, up 15.7% from the year-ago quarter. Net earnings fell to $195 million, a 59% decline, due to Medicare headwinds and one-time items. Adjusted EPS came in at $3.24, surpassing expectations by 11.3%. The CenterWell division, spanning home health, hospice, primary care and pharmacy, delivered $5.9 billion in revenues, up nearly 17% year-over-year, with income from operations at $305 million, down 20% amid higher volumes in specialty pharmacy and the phase-in of the v28 risk adjustment model. Home health episodic admissions rose 3% year-over-year, signaling steady demand in value-based models like OneHome, which grew 17% in size this year.
On the November 5 earnings call, CEO Jim Rechtin emphasized CenterWell’s role in Humana’s long-term strategy, pointing to 15% patient growth in primary care and preparations for Medicaid expansions in states like Michigan and South Carolina. Executives highlighted plans to expand the CenterWell Home Health footprint through the acquisition of Intrepid USA, adding 30 new branch locations and more than 22 field clinicians, aligning with a disciplined approach to tuck-ins that support integrated care delivery.
Addus HomeCare
Addus HomeCare showcased robust expansion in Q3 2025, with net service revenues climbing 25% to $362.3 million, driven by personal care services and recent acquisitions. Adjusted EPS rose 20% to $1.56, and adjusted EBITDA increased 31.6% to $45.1 million, reflecting strong margins and organic volume gains. The company’s focus on Medicaid-funded personal care contributed to higher average daily census and reimbursement rates.
In the Q3 earnings call in early November, CEO Dirk Allison attributed the performance to a balanced growth strategy, including the recent completion of a $7.4 million acquisition of Del Cielo Home Care Services, which expanded personal care operations in Texas and added immediate revenue streams and market density in key states. Allison noted that Addus has committed significant resources to M&A, positioning the company to capitalize on fragmented markets while prioritizing integration to maintain caregiver retention rates above 80%.
Enhabit Home Health and Hospice
Enhabit Home Health and Hospice achieved profitability in Q3 2025, reporting net service revenues of $263.6 million, up 3.9% year-over-year, with net income of $11.1 million and adjusted EBITDA of $27 million, a 10.2% increase year-over-year. Home health revenues dipped 0.2% to $200.5 million, but non-Medicare admissions surged 10.4% and average daily census rose 3.7%, offsetting a 1.4% Medicare decline. The hospice segment proved a bright spot, with revenues jumping 20% to $63.1 million and adjusted EBITDA up 72% to $17.2 million, supported by 12.6% higher average daily census. The company reduced bank debt by $15 million, marking seven consecutive quarters of deleveraging, bringing leverage to 3.9x.
During the Q3 earnings call, CEO Barb Jacobsmeyer credited census-building initiatives and cost reductions for the turnaround, including the opening of two de novo hospice locations. This brings the total of de novos opened year-to-date to six. On M&A, Jacobsmeyer indicated a cautious stance, focusing on organic de novos over large deals to avoid integration risks, though the team continues to monitor opportunities in undervalued Medicare-certified assets.
Pennant Group
Pennant Group delivered strong results in Q3 2025, with its Home Health and Hospice Services segment posting revenues of $173.6 million, a 27.9% increase from the prior year, fueled by 36.2% higher total home health admissions and 17.4% growth in hospice average daily census to 4,044. Medicare home health admissions rose 35.4% to 8,221, highlighting effective clinician recruitment. Segment adjusted EBITDA from operations climbed 22.7% to $26.8 million.
In October, Pennant completed its acquisition of 54 home health, hospice and home care agencies from UnitedHealth Group and Amedisys. The deal expands its footprint into the Southeast with more than 20 new locations. It also adds significant annualized revenue, contributing to updated full-year 2025 guidance that raises the midpoint from $870 million to $930 million.
During the November 6 earnings call, CEO Brent Guerin described the deal as transformative, enhancing geographic diversity. Guerin stressed post-close integration priorities, including systems harmonization and talent retention, to drive margin improvement toward 9.5-11% in 2026.
These earnings illustrate a sector poised for measured growth, where disciplined acquisitions and organic investments will define leaders. As 2025 closes, the real test ahead will be turning those bolt-ons and organic bets into lasting margin gains. Leaders like UnitedHealth, Humana, Addus, Enhabit and Pennant are already positioned to do just that, setting the state for a more consolidated 2026.
