Adjusted net income for Q2 was $20.5 million or $0.26 per share, compared to $19.3 million or $0.25 per share in the prior year quarter.
Net debt increased to $1.9 billion at June 30, 2025, primarily due to $100 million cash paid to terminate the Rotech acquisition, with operating cash flow improving to $38 million in Q2.
Second quarter 2025 revenue was $682 million, up 3.3% year-over-year, with adjusted EBITDA of $96.6 million representing a 14.2% margin, improved from 13.8% in Q2 2024.
Year-to-date revenue reached $1.36 billion, a 4.5% increase over the first half of 2024, driven by strong growth in sleep, ostomy, and urology categories.
Adjusted EBITDA increased slightly to $125.4 million from $124.7 million year-over-year.
Adjusted EBITDA margin for inpatient rehab declined slightly to 22.6% from 23.1%.
Consolidated revenue grew nearly 5% to $1.3 billion in Q2 2025.
Critical illness recovery hospital division revenue declined 1% to $601.1 million; adjusted EBITDA declined 22% year-over-year with margin at 9.4% versus 11.9% prior year.
Earnings per common share from continuing operations rose 88% to $0.32 from $0.17.
Inpatient rehab hospital division revenue rose 17% year-over-year to $313.8 million with adjusted EBITDA up nearly 15% to $71 million.
Interest expense was $30 million in Q2 compared to $28 million prior year.
Operating cash flow generated $110.3 million; investing activities used $64.7 million; financing activities used $46.5 million including $85.1 million in share repurchases.
Outpatient rehab division revenue increased 3.8% driven by a 3.8% increase in patient volume; adjusted EBITDA increased 6.1% with margin improving to 9.3% from 9.1%.
Salary, wage and benefits to revenue ratio in critical illness division rose slightly to 58%.
Dafinchi