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Acadia Q3 Earnings Beat on Growing Volumes, Guidance Lowered
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Key Takeaways
Acadia's Q3 adjusted EPS of 72 cents beat estimates but dropped 20.9% year over year.
Revenues grew 4.4% to $851.6M, driven by higher admissions and patient days despite cost pressure.
Guidance was cut, with 2025 EPS now seen at $2.35-$2.45 and revenue at $3.28-$3.30B.
Acadia Healthcare Company, Inc. (ACHC - Free Report) reported adjusted third-quarter earnings of 72 cents per share, which beat the Zacks Consensus Estimate by 7.5%. However, the bottom line declined 20.9% year over year.
Total revenues increased 4.4% year over year to $851.6 million. The top line beat the consensus mark by 0.4%.
The better-than-expected quarterly results benefited from increased patient days and revenues per patient day, and higher admissions, which were partially offset by lower average length of stay and higher expenses.
Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise
Same-facility revenues of $827.8 million rose 3.7% year over year but missed the Zacks Consensus Estimate by 1.4%. The year-over-year improvement was driven by a 1.3% increase in patient days. Admissions grew 3.3% year over year. The average length of stay fell 1.9% year over year and missed the consensus estimate by 3.2%. Revenue per patient day increased 2.3% year over year.
In the overall facility, patient days improved 1.8% year over year, while admissions grew 5.7% year over year. Revenue per patient day increased 2.5% year over year. The average length of stay declined 3.8% year over year.
Total expenses of $811.6 million rose 13.2% year over year due to higher salaries, wages and benefits, other operating expenses, supply costs and transaction and legal fees.
Total adjusted EBITDA declined 11% year over year to $173 million.
Financial Update (as of Sept. 30, 2025)
Acadia Healthcare exited the third quarter with cash and cash equivalents of $118.7 million, which increased from $76.3 million at the 2024-end level. It had a leftover capacity of $786.7 million under its $1 billion revolving credit facility at the third-quarter end. Total assets of $6.4 billion increased from $6 billion at the end of 2024.
Long-term debt amounted to $2.3 billion, which rose from $1.9 billion as of Dec. 31, 2024. The current portion of long-term debt was $24.4 million.
Total equity of $3.1 billion increased from the 2024-end level.
Net cash provided by operations totaled $218.2 million in the first nine months of 2025 compared with $13 million in the prior-year comparable period.
Acadia’s Share Repurchase Update
The company’s year-to-date repurchases remained at $50.4 million after the first nine months of 2025, indicating no common share buyback activity in the third quarter.
Acadia’s 2025 Guidance
Revenues are now projected to be in the range of $3.28 to $3.30 billion, down from the previous range of $3.3 billion-$3.35 billion. Adjusted EBITDA is now estimated to remain in the range of $650 to $660 million, lower than the previous guidance of $675-$700 million. Adjusted earnings per share (EPS) are predicted to be between $2.35 and $2.45, down from the previous guidance of $2.45 to $2.65.
Operating cash flows are now forecasted in the range of $400 to $425 million, lower than $460-$485 million guided previously. Expansion capital expenditure is now anticipated to be between $505 million and $515 million. Maintenance and IT capital expenditures are still expected to be in the range of $105-$115 million.
Management estimates bed additions between 945 and 1,076 in 2025.
Several companies in the Medical sector, including HCA Healthcare, Inc. (HCA - Free Report) , Universal Health Services, Inc. (UHS - Free Report) and Community Health Systems, Inc. (CYH - Free Report) , have already reported their financial results for the September quarter of 2025. Here’s how they had performed:
HCA Healthcare reported third-quarter 2025 adjusted EPS of $6.96, which surpassed the Zacks Consensus Estimate by 23.2%. The bottom line improved 42% year over year. The results were aided by growing patient volumes, higher same-facility revenue per equivalent admission, and an increased number of surgeries. However, the upside was partly offset by HCA Healthcare’s escalating costs.
Universal Health reported third-quarter 2025 adjusted EPS of $5.69, which outpaced the Zacks Consensus Estimate by 22.1%. The bottom line soared 53.4% year over year. The results benefited from robust performance in both Acute Care and Behavioral Health segments. Increased adjusted admissions and improved patient days boosted segmental revenues. However, the upside was partly offset by Universal Health’s elevated operating costs.
Community Health posted third-quarter 2025 adjusted earnings of $1.27 per share, which beat the Zacks Consensus Estimate of a loss of 32 cents. The bottom line improved from the prior-year loss of 30 cents. The quarterly results benefited from declining expenses, favorable changes in payor mix and increased same-store admissions. However, a decrease in Community Health’s patient days, occupancy rate and adjusted admissions partially offset the positives.
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Acadia Q3 Earnings Beat on Growing Volumes, Guidance Lowered
Key Takeaways
Acadia Healthcare Company, Inc. (ACHC - Free Report) reported adjusted third-quarter earnings of 72 cents per share, which beat the Zacks Consensus Estimate by 7.5%. However, the bottom line declined 20.9% year over year.
Total revenues increased 4.4% year over year to $851.6 million. The top line beat the consensus mark by 0.4%.
The better-than-expected quarterly results benefited from increased patient days and revenues per patient day, and higher admissions, which were partially offset by lower average length of stay and higher expenses.
Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise
Acadia Healthcare Company, Inc. price-consensus-eps-surprise-chart | Acadia Healthcare Company, Inc. Quote
ACHC’s Q3 Operations
Same-facility revenues of $827.8 million rose 3.7% year over year but missed the Zacks Consensus Estimate by 1.4%. The year-over-year improvement was driven by a 1.3% increase in patient days. Admissions grew 3.3% year over year. The average length of stay fell 1.9% year over year and missed the consensus estimate by 3.2%. Revenue per patient day increased 2.3% year over year.
In the overall facility, patient days improved 1.8% year over year, while admissions grew 5.7% year over year. Revenue per patient day increased 2.5% year over year. The average length of stay declined 3.8% year over year.
Total expenses of $811.6 million rose 13.2% year over year due to higher salaries, wages and benefits, other operating expenses, supply costs and transaction and legal fees.
Total adjusted EBITDA declined 11% year over year to $173 million.
Financial Update (as of Sept. 30, 2025)
Acadia Healthcare exited the third quarter with cash and cash equivalents of $118.7 million, which increased from $76.3 million at the 2024-end level. It had a leftover capacity of $786.7 million under its $1 billion revolving credit facility at the third-quarter end. Total assets of $6.4 billion increased from $6 billion at the end of 2024.
Long-term debt amounted to $2.3 billion, which rose from $1.9 billion as of Dec. 31, 2024. The current portion of long-term debt was $24.4 million.
Total equity of $3.1 billion increased from the 2024-end level.
Net cash provided by operations totaled $218.2 million in the first nine months of 2025 compared with $13 million in the prior-year comparable period.
Acadia’s Share Repurchase Update
The company’s year-to-date repurchases remained at $50.4 million after the first nine months of 2025, indicating no common share buyback activity in the third quarter.
Acadia’s 2025 Guidance
Revenues are now projected to be in the range of $3.28 to $3.30 billion, down from the previous range of $3.3 billion-$3.35 billion. Adjusted EBITDA is now estimated to remain in the range of $650 to $660 million, lower than the previous guidance of $675-$700 million. Adjusted earnings per share (EPS) are predicted to be between $2.35 and $2.45, down from the previous guidance of $2.45 to $2.65.
Operating cash flows are now forecasted in the range of $400 to $425 million, lower than $460-$485 million guided previously. Expansion capital expenditure is now anticipated to be between $505 million and $515 million. Maintenance and IT capital expenditures are still expected to be in the range of $105-$115 million.
Management estimates bed additions between 945 and 1,076 in 2025.
ACHC currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did ACHC’s Peers Perform in 3Q25?
Several companies in the Medical sector, including HCA Healthcare, Inc. (HCA - Free Report) , Universal Health Services, Inc. (UHS - Free Report) and Community Health Systems, Inc. (CYH - Free Report) , have already reported their financial results for the September quarter of 2025. Here’s how they had performed:
HCA Healthcare reported third-quarter 2025 adjusted EPS of $6.96, which surpassed the Zacks Consensus Estimate by 23.2%. The bottom line improved 42% year over year. The results were aided by growing patient volumes, higher same-facility revenue per equivalent admission, and an increased number of surgeries. However, the upside was partly offset by HCA Healthcare’s escalating costs.
Universal Health reported third-quarter 2025 adjusted EPS of $5.69, which outpaced the Zacks Consensus Estimate by 22.1%. The bottom line soared 53.4% year over year. The results benefited from robust performance in both Acute Care and Behavioral Health segments. Increased adjusted admissions and improved patient days boosted segmental revenues. However, the upside was partly offset by Universal Health’s elevated operating costs.
Community Health posted third-quarter 2025 adjusted earnings of $1.27 per share, which beat the Zacks Consensus Estimate of a loss of 32 cents. The bottom line improved from the prior-year loss of 30 cents. The quarterly results benefited from declining expenses, favorable changes in payor mix and increased same-store admissions. However, a decrease in Community Health’s patient days, occupancy rate and adjusted admissions partially offset the positives.