- Healthcare Services Group, Inc. (HCSG, Financial) reports a robust 5.7% increase in first-quarter revenue, reaching $447.7 million.
- The company raises its 2025 cash flow forecast, projecting $60.0 to $75.0 million from operations, excluding payroll accrual.
- First-quarter net income stands at $17.2 million, with diluted EPS at $0.23.
Healthcare Services Group, Inc. (HCSG) announced strong financial results for the three months ending March 31, 2025, highlighted by a revenue increase to $447.7 million, up 5.7% over the same period last year. The company attributed the growth to new client acquisitions that fostered organic expansion.
Net income for HCSG rose to $17.2 million, translating to a diluted earnings per share (EPS) of $0.23. The company also reported a notable improvement in cash flow from operations, which, excluding changes in payroll accrual, amounted to $32.1 million, representing a $41.3 million increase from the previous year.
On a segment basis, the Environmental Services division generated revenue of $196.3 million with a margin of 10.8%, while the Dietary Services segment recorded revenue of $251.3 million with a margin of 7.6%. This performance aligns with the company's reiterated 2025 mid-single digit revenue growth expectations.
Further reflecting its optimistic outlook, HCSG has revised its 2025 cash flow forecast upwards, now anticipating cash flow from operations (excluding payroll accrual) between $60.0 million and $75.0 million. The company remains committed to maintaining strong liquidity, supported by its $143.9 million in cash and marketable securities and a $500 million credit facility due for expiration in November 2027.
Adding to shareholder value, HCSG repurchased approximately $7 million of its common stock in the first quarter, with 5.4 million shares still authorized for repurchase under the current program.
