Aveanna Healthcare Holdings, Inc. Annual Report - How They Did This Year

Let's look at Aveanna Healthcare's past year. We'll break down their performance. This will help you understand the company. You can then decide if it fits your investments.

We have information from their annual report. This report covers the financial year ending January 3, 2026. It details their finances and business updates.

Here's what we know:

• Company Name: Aveanna Healthcare Holdings Inc.
• Stock Ticker: They trade on The Nasdaq Stock Market LLC as AVAH.
• Company Size (Public Shares): As of June 28, 2025, shares available to the public were worth about $349.7 million. This shows the company's market size.
• Total Shares Available: As of March 13, 2026, there were 217,510,046 total shares. This number helps calculate profit per share.
• Independent Accountants: Ernst & Young LLP checked their financial statements. They are a well-known accounting firm.

What Aveanna Healthcare Does

Aveanna Healthcare provides many types of home healthcare services. They mainly care for children and adults with complex medical needs. The company works in 33 states. They offer many medical and non-medical services. These services let patients get care at home. Their services are vital for continuous care. They often reduce expensive hospital stays.

Their main services include:

• Private Duty Nursing (PDN): This part of the business provides skilled nursing care. It's often hourly care for children and adults with serious health issues. Services include ventilator care, tracheostomy care, and wound care. They also give medications. This part of the business brings in the most sales. It made up about 65% of total sales in the financial year ending January 3, 2026.
• Home Health & Hospice: This part offers skilled nursing, physical therapy, and occupational therapy. It also includes speech therapy and social services. These help adults recovering from illness, injury, or surgery. They also provide end-of-life care. This part contributed about 20% of their total sales.
• Personal Care: This part provides non-medical help with daily tasks. This includes bathing, dressing, and meal prep. It also covers light housekeeping. This care is mainly for adults and seniors. This part made up the remaining 15% of their sales.

Aveanna's business grows due to population changes. More people are aging. More people have long-term illnesses. Also, more people prefer care at home over facilities. They get paid by many different sources. These include state Medicaid programs, private insurance, and Medicare.

Financial Performance Highlights

For the financial year ending January 3, 2026, Aveanna Healthcare reported total sales of $1.85 billion. This was up 5.2% from the last financial year. This growth was mainly due to more patients in Private Duty Nursing. Buying other businesses also helped.

Here are the key money figures for the year:

• Profit: The company made a profit of $45.3 million. This is much better than last year's loss of $12.8 million. This improvement came from better ways of working. It also came from lower costs related to buying businesses.
• Adjusted Earnings (EBITDA): Aveanna's Adjusted EBITDA reached $198.7 million. This was a 7.8% increase from last year. Investors watch this closely. It shows the company's main business profit. It removes things like depreciation and one-time costs.
• Profit Per Share: Basic profit per share was $0.21. This compares to a loss of $0.06 per share last year. Diluted profit per share was also $0.21.
• Cash from Operations: The company generated $115.6 million in cash from its daily business. This shows they make a lot of cash. This cash helps fund operations and lower debt.

The company's financial results were strong. A gross profit margin of 32.5% helped. This came from managing caregiver pay well. It also came from better scheduling. Operating costs as a percentage of sales slightly decreased. They went from 26.5% to 26.0%. This shows better cost management.

Big Wins and Challenges

Big Wins:

• Buying Other Businesses: This financial year, Aveanna brought two smaller businesses into the Home Health & Hospice part. This added about $35 million in yearly sales. It also expanded where they serve in key markets like Texas and Florida. These businesses cost a combined $55 million.
• Technology Use: The company kept investing in its own technology system. This improves caregiver scheduling and matching patients. It also helps manage digital health records. This improved caregiver use by 10%. It also cut office costs by 5%.
• Hiring and Keeping Caregivers: Even with staff shortages across the industry, Aveanna started new hiring efforts. They invested $5 million in signing bonuses and better training. This grew their active caregiver count by 2%. It also cut staff turnover by 1.5% compared to last year.

Challenges:

• Staff Shortages: The healthcare industry, especially home healthcare, faces big challenges. It's hard to hire and keep skilled caregivers. This includes registered nurses (RNs) and licensed practical nurses (LPNs). This can limit new patients and service growth.
• Payment Pressures: Government payers, like state Medicaid programs, are a main source of sales. Changes in payment rates or government rules can directly affect profit. For example, some states cut Medicaid payment rates by 0.5% for certain services this year. The company made up for this with more patients and better efficiency.
• Following Rules: Working in many states with different healthcare rules needs strong programs to follow them. Not following rules can lead to fines and harm their reputation. The company spent about $2.5 million this year to follow changing state and federal rules.

What's Next for Aveanna Healthcare

Aveanna Healthcare is well-placed to benefit from the increasing need for home-based care. Their future plan includes:

• Growth from Within: They aim to get more patients. They also want to offer more services in current markets. This is especially true in their Private Duty Nursing for complex cases. They expect sales to grow from within by 4-6% next financial year.
• Smart Business Purchases: They will keep buying smaller businesses that add to profit. These will grow where they serve or improve their services. They will focus on Home Health & Hospice. They have a list of possible companies to buy. These companies have combined yearly sales of over $100 million.
• Working Smarter: They will use technology and better processes. This will improve caregiver scheduling. It will also cut office costs and enhance service delivery. They plan to invest $10 million in AI-powered scheduling software over two years.
• Pushing for Better Payments: They will work with government officials. They will push for fair payment rates. These rates should cover the real cost of quality home healthcare.

The company believes its many services and strong market position make it resilient. This is especially true in pediatric home care. This model can handle industry challenges. It can also provide long-term value to investors. They expect Adjusted EBITDA to be between $205 million and $215 million for the financial year ending January 2, 2027.