v3.26.3
BUSINESS SEGMENTS
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
BUSINESS SEGMENTS BUSINESS SEGMENTS
The Company classifies its operations into the following reportable operating segments: (1) home health and hospice services, which includes the Company’s home health, hospice, home care, and geriatric primary and palliative care businesses; and (2) senior living services, which includes the operation of assisted living, independent living, and memory care communities. The reporting segments are business units that offer different services and are managed separately to provide greater visibility into those operations. The Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (“CODM”), reviews financial information at the operating segment level.

As of September 30, 2026, the Company provided services through 175 affiliated home health, hospice and home care agencies, and 70 affiliated senior living operations. The Company evaluates performance and allocates capital resources to each segment based on an operating model that is designed to maximize the quality of care provided and profitability. The Company’s Service Center provides various services to all lines of business. The CODM does not review assets by segment and therefore assets and capital expenditure by segment are not disclosed below.

The CODM uses Segment Adjusted EBITDAR from Operations as the primary measure of profit and loss for the Company's reportable segments and to compare the performance of its operations with those of its competitors. The CODM monitors these results and provides guidance to leadership of the reportable segments to allocate enterprise-wide resources. Segment Adjusted EBITDAR from Operations is net income attributable to the Company's reportable segments excluding interest expense, provision for income taxes, depreciation and amortization expense, rent, unallocated corporate and administrative expenses, and, in order to view the operations’ performance on a comparable basis from period to period, certain adjustments including: (1) activities associated with start-up operations, (2) share-based compensation expense, (3) acquisition related costs, (4) activities associated with transitioning operations, (5) transition services costs, (6) other unusual, non-recurring, or redundant charges, and (7) net income attributable to noncontrolling interest. “All Other” consists of revenues generated at operating locations not included in the segment financial information reviewed by the CODM as defined above. Revenue included in the “All Other” category is insignificant individually, and therefore does not constitute a reportable segment. General and administrative expenses are not allocated to the reportable segments, and are included as “Unallocated corporate expenses”, accordingly the segment earnings measure reported is before allocation of corporate general and administrative expenses. The Company's segment measures may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
The following tables present certain financial information regarding the Company’s reportable segments, provided that general and administrative expenses are not allocated to the reportable segments:

Home Health and Hospice ServicesSenior Living ServicesAll OtherTotal
Three Months Ended September 30, 2026
Segment Revenue$239,813 $60,595 $1,843 $302,251 
Segment Cost of Services198,448 44,411 
Segment Adjusted EBITDAR from Operations$41,365 $16,184 $57,549 
Three Months Ended September 30, 2025
Segment Revenue$173,545 $53,880 $1,614 $229,039 
Segment Cost of Services144,475 38,572 
Segment Adjusted EBITDAR from Operations$29,070 $15,308 $44,378 
Home Health and Hospice ServicesSenior Living ServicesAll OtherTotal
Nine Months Ended September 30, 2026
Revenue$705,998 $173,746 $5,855 $885,599 
Segment Cost of Services586,881 125,336 
Segment Adjusted EBITDAR from Operations$119,117 $48,410 $167,527 
Nine Months Ended September 30, 2025
Revenue$498,236 $155,276 $4,870 $658,382 
Segment Cost of Services414,209 110,731 
Segment Adjusted EBITDAR from Operations$84,027 $44,545 $128,572 
The following table provides a reconciliation of Segment Adjusted EBITDAR from Operations to Condensed Consolidated Income from Operations:

Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Segment Adjusted EBITDAR from Operations$57,549 $44,378 $167,527 $128,572 
Less: Unallocated corporate expenses19,101 15,043 56,711 42,972 
Depreciation and amortization3,685 2,063 9,413 6,179 
Rent—cost of services13,796 12,063 40,322 35,703 
Income from equity method investment1,379 — 1,749 — 
Other (expense) income(78)182 402 368 
Adjustments to Segment EBITDAR from Operations:
Less: Start-up operations(a)
27 (7)380 (87)
Share-based compensation expense and related taxes(b)
3,378 2,480 9,024 6,859 
Acquisition related costs(c)
128 3,047 832 5,485 
Activities associated with transitioning operations(d)
(491)40 (491)(976)
Transition services costs(e)
1,550 — 3,214 — 
Other unusual, non-recurring, or redundant charges(f)
— 34 — 101 
Add: Net income attributable to noncontrolling interest1,438 805 5,028 2,448 
Condensed Consolidated Income from Operations$16,512 $10,238 $50,999 $34,416 
(a)Represents results related to start-up operations. This amount excludes rent and depreciation and amortization expense related to such operations.
(b)
Share-based compensation expense and related payroll taxes incurred. Share-based compensation expense and related payroll taxes are included in cost of services and general and administrative expense.
(c)Non-capitalizable costs associated with acquisitions.
(d)During 2025, an affiliate of the Company held its memory care units in transition and converted the facility into an assisted living community. In 2025 and 2026, the Company received insurance proceeds related to the property which were recorded in Gain on disposition of property and equipment, net on the Consolidated Statements of Income. This affiliate’s operations in 2026 excluding insurance gains are included in start-up operations.
(e)
Costs identified as redundant or non-recurring incurred by the Company as a result of the transition services agreement between the Company and UnitedHealth Group Incorporated (“UnitedHealth”) entered into as part of the acquisition agreement consummated on October 1, 2025. All amounts are included in Cost of services. Fees incurred under the transition services agreement were $1,550 and $6,856 for the three and nine months ended September 30, 2026.
(f)Represents other unusual, non-recurring, or redundant charges for legal services, implementation costs, integration costs, and consulting fees in general and administrative and cost of services expenses.
Adjusted segment depreciation expenseHome Health and Hospice ServicesSenior Living Services
Three Months Ended September 30, 2026$650 $1,565 
Three Months Ended September 30, 2025$205 $1,213 

Adjusted segment depreciation expenseHome Health and Hospice ServicesSenior Living Services
Nine Months Ended September 30, 2026$1,655 $4,199 
Nine Months Ended September 30, 2025$644 $3,493