BENSALEM, PA — Healthcare Services Group, Inc. (Nasdaq: HCSG) reported first-quarter revenue of $462.8 million for the period ended March 31, 2026, a 3.4% increase from the prior year, while reaffirming its full-year growth outlook.
Net income totaled $26.1 million, with diluted earnings per share of $0.37.
Cash flow from operations was $43.7 million, or $23.4 million excluding changes in payroll accrual.
The company reported segment revenue of $208.3 million for environmental services and $254.5 million for dietary services, with margins of 12.1% and 9.0%, respectively.
Cost of services was $386.9 million, or 83.6% of revenue, while selling, general, and administrative expenses totaled $42.0 million.
“We delivered strong first quarter results across revenue, earnings, and cash flow,” said Ted Wahl, chief executive officer.
The company repurchased $24.0 million in shares during the quarter as part of a previously announced $75.0 million buyback program running through January 2027.
Healthcare Services Group ended the quarter with $214.6 million in cash and marketable securities and access to a $300.0 million revolving credit facility.
The company amended its credit agreement in April to extend the facility to five years with revised pricing and covenant terms.
Healthcare Services Group expects mid-single-digit revenue growth for 2026 and an effective tax rate of approximately 25%.
The company is scheduled to participate in several investor conferences in May and June, including events hosted by RBC, Benchmark, and Baird.
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