Marketable Securities

6 Months Ended

Jun. 30, 2026

Investments, Debt and Equity Securities [Abstract]

Restricted marketable securities at both balance sheet dates represent restricted assets held at HCS, Ltd (“HCS”), our consolidated wholly owned offshore captive insurance company. HCS insures a substantial portion of Encompass Health’s professional liability, workers’ compensation, and other insurance claims. These funds are committed for payment of claims incurred, and the classification of these marketable securities as current or noncurrent depends on the classification of the corresponding claims liability. As of June 30, 2026, $52.4 million of restricted marketable securities are included in Other current assets and $107.2 million of restricted marketable securities are included in Other long-term assets in our condensed consolidated balance sheet. As of December 31, 2025, $42.2 million of restricted marketable securities are included in Other current assets and $103.6 million are included in Other long-term assets in our condensed consolidated balance sheet.

During the three and six months ended June 30, 2026, $2.3 million and $3.5 million, respectively, of unrealized net gains were recognized in our condensed consolidated statements of operations on equity securities still held at the reporting date. During the three and six months ended June 30, 2025, $0.8 million of unrealized net gains were recognized in our condensed consolidated statements of operations on equity securities still held at the reporting date.

A summary of our debt securities as of June 30, 2026 is as follows (in millions):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale debt securities:
U.S. government and agency securities	$	35.2	$	0.1	$	(0.2)	$	35.1
Corporate bonds and notes	92.4		0.1		(0.6)		91.9

A summary of our debt securities as of December 31, 2025 is as follows (in millions):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale debt securities:
U.S. government and agency securities	$	40.2	$	0.2	$	—	$	40.4
Corporate bonds and notes	68.7		0.5		(0.1)		69.1

During the three and six months ended June 30, 2026 and June 30, 2025, we did not record any impairment charges related to our debt securities.

Investing information related to our available-for-sale debt securities is as follows (in millions):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Proceeds from sales and maturities	$	10.8	$	8.7	$	21.1	$	8.7

The contractual maturities of our available-for-sale debt securities as of June 30, 2026 are as follows (in millions):


	Amortized Cost		Fair Value
Due in one year or less	$	24.3	$	24.3
Due after one year through five years	88.5		88.1
Due after five years through ten years	6.5		6.4
Due after ten years	8.3		8.2
Total	$	127.6	$	127.0