Aveanna Q4 EBITDA Jumps 54% to $85M; Family First Deal Adds $120M
Aveanna Healthcare's Q4 adjusted EBITDA rose 54% to $85 million on improved rates, volume and cost savings, while revenue of $662.5 million topped estimates and net income reached $178.8 million. The Q2-closing Family First Homecare deal adds $120 million and supports guidance of $2.54–2.56 billion despite no California rate increases.
1. Q4 Financial Performance
Aveanna Healthcare delivered a strong fourth quarter with adjusted EBITDA up 54% to $85 million, driven by improved rate and volume environments and cost-saving initiatives. Revenue of $662.5 million surpassed expectations while net income reached $178.8 million and adjusted EPS was $0.17.
2. Family First Acquisition
The company confirmed its acquisition of Family First Homecare, valued at approximately 7.5 times post-synergy EBITDA, is slated to close in Q2. The deal is expected to add $120 million in annual revenue with minimal impact on leverage and integration risks deemed low based on prior transactions.
3. California Market Challenges
Aveanna faces a rate freeze in the 2026–2027 California budget, which management has not factored into guidance. Ongoing advocacy efforts aim to secure future rate increases, but the current freeze may pressure margins in the region.
4. 2026 Outlook
For full-year 2026, Aveanna projects revenue of $2.54–2.56 billion and plans to use free cash flow to maintain or slightly reduce leverage. The company expects to sustain gross margins near 27–28% in its Private Duty Services segment despite wage pressures.