BENSALEM, PA — Healthcare Services Group, Inc. (Nasdaq: HCSG) reported fourth-quarter and full-year 2025 results and announced a new share repurchase program, the company said.
For the year ended December 31, 2025, revenue rose 7.1% to $1.84 billion. Fourth-quarter revenue increased 6.6% to $466.7 million.
Net income for the year was $59.1 million, or $0.81 per diluted share. Fourth-quarter net income totaled $31.2 million, or $0.44 per diluted share.
Cash flow from operations was $145.0 million for the year and $17.4 million for the quarter. Excluding a change in payroll accrual, adjusted operating cash flow was $164.1 million for the year and $36.4 million for the quarter, the company said.
Environmental Services revenue was $210.8 million in the quarter with a margin of 12.6%, while Dietary Services revenue was $255.9 million with a margin of 7.2%. Cost of services was 84.6% of revenue.
Selling, general and administrative expenses were $46.2 million in the quarter, or 9.9% of revenue. The company said it expects to manage cost of services near 86% and SG&A between 9.5% and 10.5% in 2026.
The company reported cash and marketable securities of $203.9 million at year-end and said it had an unused $300.0 million revolving credit facility.
Healthcare Services Group said it completed its $50.0 million share repurchase program ahead of schedule and repurchased $61.6 million of stock in 2025. In February 2026, its board authorized a new 12-month plan to repurchase up to $75.0 million of common stock.
The company said it expects mid-single-digit revenue growth in 2026 and anticipates an effective tax rate of about 25%.
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