Acadia Healthcare Q2 Revenue Beats, But Legal Charges Slash Profit; Raises Cash Flow Outlook
ACHC has more than doubled off its 52-week low of $11.43.
Summary
Acadia Healthcare reported Q2 revenue of $865.8M, beating guidance, but net income fell 64% to $10.9M due to a $28.6M liability reserve charge. The company raised its full-year operating cash flow guidance to $350–$400M.
Key Events · Earnings and Guidance · ACHC
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Q2 Revenue Beats Guidance
Revenue of $865.8M was flat year-over-year but above the high end of guidance, driven by 0.8% same-facility patient day growth and a 12% increase in residential treatment revenue.
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Earnings Hit by Liability Charge
Net income fell 64% to $10.9M, or $0.12 per share, as a $28.6M adjustment to professional and general liability reserves and $22.6M in transaction/legal costs offset revenue gains.
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Cash Flow Outlook Raised
Operating cash flow was $162.1M in Q2, up 21% YoY, and full-year guidance was raised to $350–$400M from $285–$325M, reflecting improved cash generation.
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Full-Year Guidance Updated
2026 guidance now calls for revenue of $3.40–$3.45B, Adjusted EBITDA of $590–$615M, and Adjusted EPS of $1.45–$1.60, with capex reduced to $235–$255M.
Analysis · ACHC · Industrial Applications And Services
Acadia Healthcare delivered Q2 revenue of $865.8 million, edging past the high end of its guidance, but net income plunged 64% to $10.9 million as a $28.6 million professional liability reserve charge and ongoing legal costs weighed on the bottom line. Adjusted EBITDA fell 26% to $149.2 million, though operating cash flow jumped 21% to $162.1 million, the first positive free cash flow quarter since Q2 2024. The company raised its full-year operating cash flow guidance to $350–$400 million, signaling improved cash generation despite earnings headwinds. The results land against a backdrop of a $105 million jury award against a subsidiary disclosed in May, and the updated guidance suggests management sees the legal overhang as manageable. The stock may react to the mixed picture: top-line resilience and cash flow improvement offset by margin compression from liability costs.
At the time of this filing, ACHC was trading at $31.00 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $3B. The 52-week trading range was $11.43 to $35.83. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.