Enhabit Reports Strong Q4 & FY25 Results, Secures New Credit Facility Amidst Pending Acquisition

summarizeSummary

Enhabit, Inc. announced strong Q4 and full-year 2025 financial results, including increased revenue and Adjusted EBITDA, while also securing a new $475 million credit facility, all in the context of its pending acquisition by Kinderhook Industries.

check_boxKey Events

• Strong Q4 & FY25 Financial Performance

  Enhabit reported Q4 2025 net service revenue of $270.4 million (+4.7% YoY) and Adjusted EBITDA of $28.0 million (+11.6% YoY). Full-year 2025 net service revenue reached $1.06 billion (+2.4% YoY) and Adjusted EBITDA was $108.5 million (+8.4% YoY), with significant improvements in net loss and adjusted diluted EPS.

• Secured New Credit Facility

  The company entered into an amended and restated credit agreement on February 26, 2026, establishing a new $315.0 million senior secured term loan A facility and a $160.0 million senior secured revolving credit facility, maturing in February 2031. This significantly strengthens the company's liquidity and balance sheet.

• Merger Agreement Context

  These financial results and financing updates are reported amidst the pending acquisition by Kinderhook Industries, LLC for $13.80 per share, expected to close in Q2 2026. The company will not host an earnings call or provide future guidance due to the merger.

auto_awesomeAnalysis

Enhabit, Inc. reported robust financial results for Q4 and the full year 2025, demonstrating significant operational improvements and a strengthened balance sheet. The company achieved a 4.7% year-over-year increase in Q4 net service revenue to $270.4 million and an 11.6% rise in Adjusted EBITDA to $28.0 million. For the full year, net service revenue grew 2.4% to $1.06 billion, and Adjusted EBITDA increased 8.4% to $108.5 million. The company also significantly improved its net loss and adjusted diluted EPS. Concurrently, Enhabit entered into an amended and restated credit agreement, securing a new $315.0 million term loan and a $160.0 million revolving credit facility, which materially strengthens its financial position. These positive developments occur as the company is trading near its 52-week high and the previously announced acquisition price of $13.80 per share by Kinderhook Industries. The strong financial health and new financing provide a solid foundation as the company moves towards the expected Q2 2026 merger completion, reinforcing the stability and value for shareholders.