Industry Report: Home-Based Care Q3 2025 [Mertz Taggart]

Key Report Highlights

• Addus and Aveanna Drive Growth Through Personal Care Expansion
  Addus Homecare reported $362.3M in Q3 revenue, up 25% YoY, led by strong performance in its Personal Care segment, which now makes up 76% of total revenue. Hospice also grew 19% YoY, while Home Health declined slightly. Addus completed acquisitions in South Texas and Western Pennsylvania and continues to prioritize personal care and smaller clinical transactions. Aveanna Healthcare also posted robust growth, with $621.9M in revenue (22.2% YoY increase), driven by volume and rate gains in its Private Duty Services segment. The firm closed its Thrive Skilled Pediatric Care acquisition and now attributes 56% of Private Duty MCO volume to preferred payor agreements.
• Pennant Group Accelerates M&A With UnitedHealth, Amedisys Asset Deal
  Pennant Group reported $229M in Q3 revenue, up 26.8% YoY, with balanced growth across Hospice, Home Health, and Senior Living. The company closed its $146.5M acquisition of 54 assets from UnitedHealth and Amedisys, as well as two assisted living communities. Management emphasized a “very robust pipeline” despite integration demands, and full-year revenue is expected to reach up to $948.6M.
• Enhabit Prioritizes Deleveraging Over M&A, Despite Hospice Growth
  Enhabit posted $263.6M in Q3 revenue, up 3.9% YoY, with Hospice revenue rising 20% and seven straight quarters of sequential growth. The Home Health segment declined slightly but saw growth in admissions and non-Medicare revenue. The company reduced its leverage ratio from 5.4x to 3.9x since Q4 2023 and has paused M&A to focus on balance sheet improvements.
• BrightSpring Delivers 28% Revenue Growth, Targets Tuck-In Acquisitions
  BrightSpring Health Services reported $3.3B in Q3 revenue, a 28% YoY increase, with Pharmacy Solutions contributing 89% of revenue and adjusted EBITDA reaching $160M. The company plans to complete acquisitions of Amedisys and LHC branches this quarter and will remain focused on $3M–$10M EBITDA tuck-ins, particularly in targeted geographies. Divestiture of its Community Living segment is now expected in Q1 2026.
• Option Care Eyes Tuck-In Deals Amid Solid Operational Performance
  Option Care Health reported $1.5B in Q3 revenue, up 12.2% YoY, despite margin pressure from biosimilar adoption. EBITDA grew to $119.5M, and the firm lowered its leverage to 1.9x after refinancing debt. The company reaffirmed its M&A appetite for near-adjacency tuck-ins and expects $5.6B–$5.65B in FY2025 revenue and $320M+ in operating cash flow.

Mertz Taggart is a boutique investment bank focused exclusively on M&A advisory services for healthcare services companies, with deep specialization across behavioral health, home health, hospice, and post-acute care. Founded in 2006, the firm provides strategic guidance, valuation expertise, and transaction execution to founder-owned businesses, private equity groups, and strategic healthcare providers.

Headquartered in Fort Myers, Florida, Mertz Taggart leverages its sector-focused research, proprietary market data, and extensive relationships with both financial sponsors and strategic acquirers to support clients through sell-side and select buy-side engagements. The firm typically advises companies generating $5 million to $75 million+ in revenue, with a strong track record representing growing, high-quality regional and national healthcare operators.

With decades of combined healthcare M&A experience, the senior team brings deep domain knowledge across reimbursement dynamics, regulatory trends, and operational models unique to behavioral health and home-based care. Mertz Taggart is recognized as a leading healthcare services M&A advisor, publishing widely followed quarterly transaction reports and industry insights. Securities transactions are conducted through M&A Securities Group, Inc., member FINRA and SIPC.

Interested in sharing your industry reports? Contact: kaitlinn.thatcher@axial.net