Aveanna surges on 27% revenue growth, $175.5M acquisition
Adjusted EBITDA jumps 54% as home healthcare provider maintains upbeat 2026 outlook
Aveanna Healthcare Holdings reported fourth-quarter results that blew past analyst expectations, delivering a 27.4% surge in revenue to $662.5 million and sending shares of the home healthcare provider sharply higher.
The Atlanta-based company posted earnings per share of $0.17, exceeding the consensus estimate of $0.14 by 18.6%, according to data from the earnings release. Revenue of $662.5 million topped analyst projections of $591.2 million by 12.1%, underscoring the strength of Aveanna's patient-centered care platform.
Adjusted EBITDA for the quarter jumped 54% year-over-year to $85 million, while net income reached $178.8 million. The robust performance was driven by growth across all three of the company's business segments: Private Duty Services increased 28%, Home Health & Hospice rose 27%, and Medical Solutions grew 21%. Aveanna operates as a diversified home care platform, providing pediatric and adult healthcare services that allow patients to remain in their homes rather than higher-cost care settings such as hospitals or skilled nursing facilities.
Full-year 2025 results were equally impressive. Total revenue climbed 20.2% to $2.43 billion, while adjusted EBITDA surged 74.8% to $320.9 million. The momentum continued into the company's outlook for fiscal year 2026, with management maintaining guidance for revenue between $2.54 billion and $2.56 billion and adjusted EBITDA in the range of $318 million to $322 million.
In a significant strategic move, Aveanna simultaneously announced the acquisition of Family First Holding, a multi-state provider of pediatric homecare services, for $175.5 million in cash. Family First operates 27 locations across seven states including Florida, Illinois, Iowa, Pennsylvania, South Dakota, Texas, and North Carolina. The transaction, which is expected to close in the second fiscal quarter of 2026, will be funded through a combination of cash on hand and existing short-term credit facility borrowings.
"This acquisition is expected to expand Aveanna's specialized care model and geographic footprint," the company stated in its regulatory filing. The deal strengthens Aveanna's presence in the pediatric private duty nursing market, a core component of its Private Duty Services segment, which historically represents approximately 82% of total revenue.
Analysts have taken note of Aveanna's momentum. The stock carries an average price target of $11.00, representing approximately 60% upside from current levels around $6.91. Institutional investors hold approximately 88% of shares, reflecting confidence from large shareholders in the company's execution and growth trajectory.
The strong quarterly performance comes amid broader tailwinds for the home healthcare sector, as payers and patients increasingly shift care delivery toward home-based settings to reduce costs and improve outcomes. Aveanna's focus on preferred payer agreements and Medicaid rate wins has helped drive growth, with the company reporting increases in hours of care across its service lines.
For investors, the combination of accelerating organic growth, disciplined capital allocation through strategic acquisitions, and maintained guidance positions Aveanna to continue delivering above-market growth. The upcoming earnings conference call scheduled for 10:00 a.m. Eastern Time on Thursday will provide additional insight into management's strategy and expectations for the remainder of 2026.