v3.26.1
Segment Information
 6 Months Ended
Jul. 04, 2026
Segment Reporting [Abstract]  
Segment Information

13. SEGMENT INFORMATION

The Company’s operating segments have been identified based upon how management has organized the business by services provided to customers and how the chief operating decision maker ("CODM") manages the business and allocates resources. The CODM for the Company is the Chief Executive Officer. The Company has three operating segments and three reportable segments, Private Duty Services, Home Health & Hospice, and Medical Solutions. The PDS segment predominantly includes private duty skilled nursing services, non-clinical and personal care services, and pediatric therapy services and is primarily reimbursed by Medicaid and Medicaid MCO. The HHH segment provides home health and hospice services to predominately elderly patients and is primarily reimbursed by Medicare. Through the MS segment, the Company provides enteral nutrition and other products to adults and children, delivered on a periodic or as-needed basis and is primarily reimbursed by Medicaid and Medicaid MCO.

The CODM evaluates segment performance using gross margin (and gross margin percentage). Gross margin includes revenue less all costs of revenue, excluding depreciation and amortization, but excludes branch and regional administrative expenses, corporate expenses and other non-field expenses. Revenue and cost presented below for the PDS and HHH segments primarily relate to patient services, while the MS segment’s revenue and cost are primarily from products. The CODM does not evaluate a measure of assets when assessing performance. The CODM uses gross margin and gross margin percentage to assess the performance of each segment compared to historical trends, forecasted performance, and industry peers, as well as ensure that each segment has appropriate operational support to manage performance.

Results shown for the three and six-month periods ended July 4, 2026 and June 28, 2025 are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. There are no intersegment transactions.

The following tables summarize the Company’s segment information for the three and six-month periods ended July 4, 2026 and June 28, 2025, respectively (amounts in thousands):

 

 

For the three-month period ended July 4, 2026

 

 

PDS

 

HHH

 

MS

 

Total

 

Revenue

$

553,929

 

$

69,023

 

$

47,531

 

$

670,483

 

Cost of revenue, excluding depreciation and amortization

 

394,047

 

 

31,837

 

 

26,074

 

 

451,958

 

Gross margin

$

159,882

 

$

37,186

 

$

21,457

 

$

218,525

 

Gross margin percentage

 

28.9

%

 

53.9

%

 

45.1

%

 

32.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three-month period ended June 28, 2025

 

 

PDS

 

HHH

 

MS

 

Total

 

Revenue

$

486,012

 

$

60,112

 

$

43,429

 

$

589,553

 

Cost of revenue, excluding depreciation and amortization

 

328,078

 

 

27,048

 

$

23,627

 

 

378,753

 

Gross margin

$

157,934

 

$

33,064

 

$

19,802

 

$

210,800

 

Gross margin percentage

 

32.5

%

 

55.0

%

 

45.6

%

 

35.8

%

 

 

For the six-month period ended July 4, 2026

 

 

PDS

 

HHH

 

MS

 

Total

 

Revenue

$

1,089,581

 

$

135,632

 

$

93,185

 

$

1,318,398

 

Cost of revenue, excluding depreciation and amortization

 

780,464

 

 

62,670

 

 

51,311

 

 

894,445

 

Gross margin

$

309,117

 

$

72,962

 

$

41,874

 

$

423,953

 

Gross margin percentage

 

28.4

%

 

53.8

%

 

44.9

%

 

32.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the six-month period ended June 28, 2025

 

 

PDS

 

HHH

 

MS

 

Total

 

Revenue

$

946,010

 

$

116,845

 

$

85,922

 

$

1,148,777

 

Cost of revenue, excluding depreciation and amortization

 

653,391

 

 

53,041

 

$

47,987

 

 

754,419

 

Gross margin

$

292,619

 

$

63,804

 

$

37,935

 

$

394,358

 

Gross margin percentage

 

30.9

%

 

54.6

%

 

44.2

%

 

34.3

%

 

 

 

 

 

 

 

 

 

 

 

For the three-month periods ended

 

For the six-month periods ended

 

Segment Reconciliation:

July 4, 2026

 

June 28, 2025

 

July 4, 2026

 

June 28, 2025

 

Total segment gross margin

$

218,525

 

$

210,800

 

$

423,953

 

$

394,358

 

Branch and regional administrative expenses

 

97,079

 

 

90,069

 

 

192,871

 

 

181,456

 

Corporate expenses

 

34,083

 

 

34,529

 

 

68,239

 

 

72,034

 

Depreciation and amortization

 

2,849

 

 

2,617

 

 

5,893

 

 

5,211

 

Acquisition-related costs

 

4,390

 

 

3,400

 

 

7,500

 

 

3,506

 

Other operating expense

 

144

 

 

151

 

 

144

 

 

316

 

Operating income

 

79,980

 

 

80,034

 

 

149,306

 

 

131,835

 

Interest income

 

1,259

 

 

129

 

 

2,917

 

 

261

 

Interest expense

 

(27,776

)

 

(36,003

)

 

(56,934

)

 

(72,338

)

Other income (expense)

 

3,010

 

 

(22

)

 

6,159

 

 

(5,472

)

Income before income taxes

$

56,473

 

$

44,138

 

$

101,448

 

$

54,286