{"success":true,"data":{"pressRelease":{"id":"117866","rtpr_id":"nGNX85vrth","ticker":"AVAH","exchange":"NASDAQ","all_tickers":["AVAH"],"title":"Aveanna Healthcare Holdings Announces Second Quarter Financial Results and Revised 2026 Guidance","author":"Globe Newswire","published_at":"2026-08-13T11:00:03.851Z","article_body":"* Second Quarter Revenue was $670.5 million, a 13.7% increase over the prior\nyear period\n* Second Quarter Net income was $40.3 million compared to $27.0 million for\nthe prior year period\n* Adjusted EBITDA for Q2 2026 was $95.4 million, an 8.0% increase over the\nprior year period\n* Increased Full Year 2026 Revenue guidance to greater than $2.68 billion,\nupdated from between $2.63 and $2.65 billion * Increased Full Year 2026\nAdjusted EBITDA guidance to greater than $365 million, updated from between\n$338 and $342 million\nATLANTA, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Aveanna Healthcare Holdings Inc.\n(NASDAQ: AVAH), a leading, diversified home care platform focused on providing\ncare to medically complex, high-cost patient populations, today announced\nfinancial results for the three and six-month periods ended July 4, 2026.\n\nJeff Shaner, Chief Executive Officer, commented, “Our second quarter results\ndemonstrate the momentum across Aveanna and our ability to consistently\ndeliver sustained year-over-year growth. Revenue and Adjusted EBITDA\nincreased 13.7% and 8.0%, respectively, compared to the prior-year period,\nreflecting our strong organic growth across all three business\nsegments.  Our results reinforce the strength of our operating model, the\ncontinued success of our Preferred Payor and Government Affairs strategies,\nand the dedication of our team to deliver exceptional care to patients and\nfamilies. Given our performance in the first half of the year and confidence\nin our outlook, we are pleased to raise our 2026 revenue and Adjusted EBITDA\nguidance.”\n\nThree-Month Periods Ended July 4, 2026 and June 28, 2025\n\nRevenue was $670.5 million for the three-month period ended July 4, 2026, as\ncompared to $589.6 million for the three-month period ended June 28, 2025, an\nincrease of $80.9 million, or 13.7%. The overall increase in revenue was\nattributable to a $67.9 million increase in PDS segment revenue, an $8.9\nmillion increase in HHH segment revenue, and a $4.1 million increase in MS\nsegment revenue compared to the second quarter of 2025.\n\nGross margin was $218.5 million, or 32.6% of revenue, for the three-month\nperiod ended July 4, 2026, as compared to $210.8 million, or 35.8% of revenue,\nfor the three-month period ended June 28, 2025, an increase of $7.7 million,\nor 3.7%.\n\nNet income was $40.3 million or 6.0% of revenue, for the three-month period\nended July 4, 2026, as compared to net income of $27.0 million, or 4.6% of\nrevenue for the three-month period ended June 28, 2025. Net income per diluted\nshare was $0.18 for the three-month period ended July 4, 2026, as compared to\nnet income per diluted share of $0.13 for the three-month period ended June\n28, 2025. Adjusted net income per diluted share was $0.22 for the three-month\nperiod ended July 4, 2026, as compared to adjusted net income per diluted\nshare of $0.18 for the three-month period ended June 28, 2025. See \"Non-GAAP\nFinancial Measures - Adjusted net income and Adjusted net income per diluted\nshare\" below.\n\nAdjusted EBITDA was $95.4 million, or 14.2% of revenue, for the three-month\nperiod ended July 4, 2026, as compared to $88.4 million, or 15.0% of revenue,\nfor the three-month period ended June 28, 2025, an increase of $7.1 million or\n8.0%. See \"Non-GAAP Financial Measures - EBITDA and Adjusted EBITDA\" below.\n\nSix-Month Periods Ended July 4, 2026 and June 28, 2025\n\nRevenue was $1,318.4 million for the six-month period ended July 4, 2026, as\ncompared to $1,148.8 million for the six-month period ended June 28, 2025, an\nincrease of $169.6 million, or 14.8%. The overall increase in revenue was\nattributable to a $143.6 million increase in PDS segment revenue, an $18.8\nmillion increase in HHH segment revenue, and a $7.3 million increase in MS\nsegment revenue compared to the first six months of 2025.\n\nGross margin was $424.0 million, or 32.2% of revenue, for the six-month period\nended July 4, 2026, as compared to $394.4 million, or 34.3% of revenue, for\nthe six-month period ended June 28, 2025, an increase of $29.6 million, or\n7.5%.\n\nNet income was $81.9 million or 6.2% of revenue for the six-month period ended\nJuly 4, 2026, as compared to net income of $32.2 million or 2.8% of revenue\nfor the six-month period ended June 28, 2025. Net income per diluted share was\n$0.37 for the six-month period ended July 4, 2026, as compared to net income\nper diluted share of $0.16 for the six-month period ended June 28, 2025.\nAdjusted net income per diluted share was $0.40 for the six-month period ended\nJuly 4, 2026, as compared to adjusted net income per diluted share of $0.28\nfor the six-month period ended June 28, 2025. See \"Non-GAAP Financial Measures\n- Adjusted net income and Adjusted net income per diluted share\" below.\n\nAdjusted EBITDA was $179.8 million, or 13.6% of revenue, for the six-month\nperiod ended July 4, 2026, as compared to $155.7 million, or 13.6% of revenue,\nfor the six-month period ended June 28, 2025, an increase of $24.1 million or\n15.4%. See \"Non-GAAP Financial Measures - EBITDA and Adjusted EBITDA\" below.\n\nLiquidity, Cash Flow, and Debt\n* As of July 4, 2026, we had cash of $97.2 million and incremental borrowing\ncapacity of $110.0 million under our securitization facility. Our revolver was\nundrawn, with approximately $225.5 million of borrowing capacity and\napproximately $24.5 million of outstanding letters of credit.\n* Net cash provided by operating activities was $85.3 million for the\nsix-month period ended July 4, 2026. Free cash flow was $75.4 million for the\nsix-month period ended July 4, 2026. See “Non-GAAP Financial Measures - Free\ncash flow” below.\n* As of July 4, 2026 we had total indebtedness of $1,483.4 million. Our\ninterest rate exposure under our credit facilities is currently hedged with\nthe following instruments: * $520.0 million notional amount of interest rate\ncaps that cap our exposure to SOFR at 4.00%, and\n* $880.0 million notional amount of interest rate caps that cap our exposure\nto SOFR at 2.96%.\nMatt Buckhalter, Chief Financial Officer, commented “Aveanna's second\nquarter results continued our momentum with our team executing at a high level\nacross all three divisions. During the quarter, we delivered revenue of $670.5\nmillion and Adjusted EBITDA of $95.4 million. These results, combined with the\nacquisition of Family First and the successful repricing of our credit\nfacility demonstrate the strength of our platform and our commitment to\nsustainable growth while delivering high-quality care to the patients and\nfamilies we serve. Our increased 2026 guidance, including revenue of greater\nthan $2.68 billion and Adjusted EBITDA of greater than $365 million,\nunderscores the strength of our business model and the opportunities ahead as\nwe continue to execute on our strategic initiatives.”\n\nFull Year 2026 Guidance\n\nThe following is our guidance reflecting our increased expectations for\nrevenue and Adjusted EBITDA for the full fiscal year 2026 (year ending January\n2, 2027):\n* Revenue of greater than $2.68 billion, updated from between $2.63 and $2.65\nbillion.\nConsistent with prior practice, we are not providing guidance on net income at\nthis time due to the volatility of certain required inputs that are not\navailable without unreasonable efforts, including future fair value\nadjustments associated with our interest rate caps.\n* Adjusted EBITDA of greater than $365 million, updated from between $338 and\n$342 million.\nNon-GAAP Financial Measures\n\nIn addition to our results of operations prepared in accordance with U.S.\ngenerally accepted accounting principles (“GAAP”), we also evaluate our\nfinancial performance using EBITDA, Adjusted EBITDA, Field contribution, Field\ncontribution margin, Adjusted net income or loss, Adjusted net income or loss\nper diluted share, and Free cash flow. Given our determination of adjustments\nin arriving at our computations, these non-GAAP measures have limitations as\nanalytical tools and should not be considered in isolation or as substitutes\nor alternatives to net income or loss, revenue, operating income or loss, cash\nflows from operating activities, total indebtedness, gross margin, gross\nmargin percentage or any other financial measures calculated in accordance\nwith GAAP. The reconciliations of these non-GAAP financial measures to their\nmost directly comparable GAAP measures are included in the financial tables\nbelow.\n\nEBITDA and Adjusted EBITDA\n\nEBITDA and Adjusted EBITDA are non-GAAP financial measures and are not\nintended to replace financial performance measures determined in accordance\nwith GAAP, such as net income or loss. Rather, we present EBITDA and Adjusted\nEBITDA as supplemental measures of our performance. We define EBITDA as net\nincome or loss before interest expense, net; income tax expense or benefit;\nand depreciation and amortization. We define Adjusted EBITDA as EBITDA,\nadjusted for the impact of certain other items that are either non-recurring,\ninfrequent, non-cash, unusual, or items deemed by management to not be\nindicative of the performance of our core operations, including impairments of\ngoodwill, intangible assets, and other long-lived assets; non-cash,\nshare-based compensation and associated employer payroll taxes; loss on\nextinguishment of debt; fees related to debt modifications; the effect of\ninterest rate derivatives; acquisition-related and integration costs; legal\ncosts and settlements associated with acquisition matters; restructuring\ncosts; other legal matters; and other system transition costs, professional\nfees and other costs. As non-GAAP financial measures, our computations of\nEBITDA and Adjusted EBITDA may vary from similarly termed non-GAAP financial\nmeasures used by other companies, making comparisons with other companies on\nthe basis of this measure impracticable.\n\nWe believe our computations of EBITDA and Adjusted EBITDA are helpful in\nhighlighting trends in our core operating performance. In determining which\nadjustments are made to arrive at EBITDA and Adjusted EBITDA, we consider both\n(1) certain non-recurring, infrequent, non-cash or unusual items, which can\nvary significantly from year to year, as well as (2) certain other items that\nmay be recurring, frequent, or settled in cash but which we do not believe are\nindicative of our core operating performance. We use EBITDA and Adjusted\nEBITDA to assess operating performance and make business decisions.\n\nWe have incurred substantial acquisition-related costs and integration costs.\nThe underlying acquisition activities take place over a defined timeframe,\nhave distinct project timelines and are incremental to activities and costs\nthat arise in the ordinary course of our business. Therefore, we believe it is\nimportant to exclude these costs from our Adjusted EBITDA because it provides\nus a normalized view of our core, ongoing operations after integrating our\nacquired companies, which we believe is an important measure in assessing our\nperformance.\n\nField contribution and Field contribution margin\n\nField contribution and Field contribution margin are non-GAAP financial\nmeasures and are not intended to replace financial performance measures\ndetermined in accordance with GAAP, such as gross margin and gross margin\npercentage. Rather, we present Field contribution and Field contribution\nmargin as supplemental measures of our performance. We define Field\ncontribution as gross margin less branch and regional administrative expenses.\nField contribution margin is Field contribution as a percentage of revenue. As\nnon-GAAP financial measures, our computations of Field contribution and Field\ncontribution margin may vary from similarly termed non-GAAP financial measures\nused by other companies, making comparisons with other companies on the basis\nof these measures impracticable.\n\nField contribution and Field contribution margin have limitations as\nanalytical tools and should not be considered in isolation or as substitutes\nor alternatives to gross margin, gross margin percentage, net income or loss,\nrevenue, operating income or loss, cash flows from operating activities, total\nindebtedness or any other financial measures calculated in accordance with\nGAAP.\n\nManagement believes Field contribution and Field contribution margin are\nhelpful in highlighting trends in our core operating performance and\nevaluating trends in our branch and regional results, which can vary from year\nto year. We use Field contribution and Field contribution margin to make\nbusiness decisions and assess the operating performance and results delivered\nby our core field operations, prior to corporate and other costs not directly\nrelated to our field operations. These metrics are also important because they\nguide us in determining whether or not our branch and regional administrative\nexpenses are appropriately sized to support our caregivers and direct patient\ncare operations. Additionally, Field contribution and Field contribution\nmargin determine how effective we are in managing our field supervisory and\nadministrative costs associated with supporting our provision of services and\nsale of products.\n\nAdjusted net income and Adjusted net income per diluted share\n\nAdjusted net income represents net income as adjusted for the impact of GAAP\nincome tax, goodwill, intangible and other long-lived asset impairment\ncharges, non-cash share-based compensation expense, loss on extinguishment of\ndebt, fees related to debt modifications; interest rate derivatives,\nacquisition-related costs, integration costs, legal costs, restructuring\ncosts, other legal matters, other system transition costs, professional fees\nand certain other miscellaneous items on a pre-tax basis. Adjusted net income\nincludes a provision for income taxes derived utilizing a combined statutory\ntax rate. The combined statutory tax rate is our estimate of our long-term tax\nrate. The most comparable GAAP measure is net income.\n\nAdjusted net income per diluted share represents adjusted net income on a per\ndiluted share basis using the weighted-average number of diluted shares\noutstanding for the period. The most comparable GAAP measure is net income per\nshare, diluted.\n\nAdjusted net income and adjusted net income per diluted share are important to\nus because they allow us to assess financial results, exclusive of the items\nmentioned above that are not operational in nature or comparable to those of\nour competitors.\n\nFree cash flow\n\nFree cash flow is a liquidity measure that represents operating cash flow,\nadjusted for the impact of purchases of property, equipment and software,\nproceeds from issuance of term loans, net of debt issuance costs, principal\npayments on term loans, notes payable and financing leases, and settlements\nwith swap counterparties. The most comparable GAAP measure is cash flow from\noperations.\n\nWe believe free cash flow is helpful in highlighting the cash generated or\nused by the Company, after taking into consideration mandatory payments on\nterm loans, notes payable and financing leases, as well as cash needed for\nnon-acquisition related capital expenditures, and cash paid to or received\nfrom derivative counterparties.\n\nConference Call\n\nAveanna will host a conference call on Thursday, August 13, 2026, at 10:00\na.m. Eastern Time to discuss our second quarter results. The conference call\ncan be accessed live over the phone by dialing 1-877-407-0789, or for\ninternational callers, 1-201-689-8562. A telephonic replay of the conference\ncall will be available until August 20, 2026, by dialing 1-844-512-2921, or\nfor international callers, 1-412-317-6671. The passcode for the live call and\nthe replay is 13760758. A live webcast of our conference call will also be\navailable under the Investor Relations section of our website:\nhttps://ir.aveanna.com/. The online replay will also be available for one week\nfollowing the call.\n\nForward-Looking Statements\n\nCertain matters discussed in this press release constitute forward-looking\nstatements within the meaning of the Private Securities Litigation Reform Act\nof 1995. All statements (other than statements of historical facts) in this\npress release regarding our prospects, plans, financial position, business\nstrategy and expected financial and operational results may constitute\nforward-looking statements. Forward-looking statements generally can be\nidentified by the use of terminology such as “believe,” “expect,”\n“anticipate,” “intend,” “plan,” “estimate,” “seek,”\n“will,” “may,” “should,” “would,” “predict,”\n“project,” “potential,” “continue,” “could,” “design,”\n“guidance,” or the negatives of these terms or variations of them or\nsimilar expressions. These statements are based on certain assumptions that we\nhave made in light of our experience in the industry as well as our\nperceptions of historical trends, current conditions, expected future\ndevelopments and other factors we believe are appropriate in these\ncircumstances. These forward-looking statements are based on our current\nexpectations and beliefs concerning future developments and their potential\neffect on us. Forward-looking statements involve a number of risks and\nuncertainties that may cause actual results to differ materially from those\nexpressed or implied by such forward-looking statements, such as intense\ncompetition among home health, hospice and durable medical equipment\ncompanies; our ability to maintain relationships with existing patient\nreferral sources; our ability to have services funded from third-party payers,\nincluding Medicare, Medicaid and private health insurance companies, including\nas a result of changes to Medicaid to be implemented under the One Big\nBeautiful Bill Act; changes to Medicare or Medicaid rates or methods governing\nMedicare or Medicaid payments, and the implementation of alternative payment\nmodels, including but not limited to Medicare Advantage, Managed Care\nOrganization, managed Medicaid, and other forms of managed care; any downward\npressure on reimbursement resulting from further proliferation of Medicare\nAdvantage plans; our limited ability to control reimbursement rates received\nfor our services; delays in collection or non-collection of our patient\naccounts receivable, particularly during the business integration process, or\nwhen transitioning between systems associated with clinical data collection\nand submission, as well as billing and collection systems; healthcare reform\nand other regulations, including risks related to the proposed rule issued for\nthe home health prospective payment system by Centers for Medicare & Medicaid\nServices; changes in the case-mix of our patients, as well as payer mix and\npayment methodologies; any reduction in net reimbursement if we do not\neffectively implement value-based care programs; the possibility that our\nbusiness, financial condition and results of operations may be materially\nadversely affected by public health emergencies, such as a pandemic or other\ninfectious disease outbreak; shortages in qualified employees and management\nand competition for qualified personnel; any failure to maintain the security\nand functionality of our information systems or to defend against or otherwise\nprevent a cybersecurity attack or breach; our substantial indebtedness, which\nincreases our vulnerability to general adverse economic and industry\nconditions and may limit our ability to pursue strategic alternatives and\nreact to changes in our business and industry; our ability to identify, obtain\nfinancing for, acquire and integrate strategic and accretive businesses or\nassets; risks related to legal proceedings, claims and governmental inquiries\ngiven that the nature of our business exposes us to various liability claims,\nwhich may exceed the level of our insurance coverage, and other risks set\nforth under the heading “Risk Factors” in Aveanna’s Annual Report on\nForm 10-K for its 2025 fiscal year filed with the Securities and Exchange\nCommission on March 19, 2026, which is available at www.sec.gov. In addition,\nthese forward-looking statements necessarily depend upon assumptions,\nestimates and dates that may prove to be incorrect or imprecise. Accordingly,\nforward-looking statements included in this press release do not purport to be\npredictions of future events or circumstances, and actual results may differ\nmaterially from those expressed by forward-looking statements. All\nforward-looking statements speak only as of the date made, and Aveanna\nundertakes no obligation to update or revise any forward-looking statements,\nwhether as a result of new information, future events or otherwise, except as\nrequired by law.\n\nAbout Aveanna Healthcare\n\nAveanna Healthcare is headquartered in Atlanta, Georgia and has locations in\n39 states providing a broad range of pediatric and adult healthcare services,\nprimarily focused on care in the home, including nursing, hospice,\nrehabilitation, occupational nursing in schools, therapy, and day treatment\ncenter services for medically complex and chronically ill children and adults,\nas well as delivery of enteral nutrition and other products to patients. In\naddition, the Company provides respite healthcare services, which are\ntemporary care provider services provided in relief of the patient’s normal\ncaregiver. The Company’s services are designed to provide a high quality,\nlower cost alternative to prolonged hospitalization. For more information,\nplease visit www.aveanna.com.\n\nCash Flow and Information about Indebtedness\n\nThe following table sets forth a summary of our cash flows from operating,\ninvesting, and financing activities for the periods presented:\n\n                                                   For the six-month periods ended                         \n (dollars in thousands)                            July 4, 2026                       June 28, 2025        \n Net cash provided by operating activities         $        85,277                    $        42,937      \n Net cash used in investing activities             $        (179,924  )               $        (18,330  )  \n Net cash used in financing activities             $        (1,417    )               $        (8,157   )  \n Cash and cash equivalents at beginning of period  $        193,260                   $        84,288      \n Cash and cash equivalents at end of period        $        97,196                    $        100,738     \n                                                                                                           \n\nThe following table presents our long-term indebtedness as of July 4, 2026:\n\n (dollars in thousands)                                                                   \n Instrument                                        Interest Rate    July 4, 2026          \n 2026 Term Loans ( (1))                            S + 3.00%        $        1,318,375    \n 2026 Refinancing Revolving Credit Facility ((1))  S + 3.00%                 -            \n Securitization Facility ((1))                     S + 2.50%                 165,000      \n Total indebtedness                                                 $        1,483,375    \n ((1))S = One-month SOFR                                                                  \n                                                                                          \n\nResults of Operations\n\nThe following table summarizes our consolidated results of operations for the\nperiods indicated (amounts in thousands, except per share data):\n\n                                                               For the three-month periods ended               For the six-month periods ended                     \n                                                               July 4, 2026               June 28, 2025        July 4, 2026                 June 28, 2025          \n Revenue                                                       $        670,483           $        589,553     $        1,318,398           $        1,148,777     \n Cost of revenue, excluding depreciation and amortization               451,958                    378,753              894,445                      754,419       \n Branch and regional administrative expenses                            97,079                     90,069               192,871                      181,456       \n Corporate expenses                                                     34,083                     34,529               68,239                       72,034        \n Depreciation and amortization                                          2,849                      2,617                5,893                        5,211         \n Acquisition-related costs                                              4,390                      3,400                7,500                        3,506         \n Other operating expense                                                144                        151                  144                          316           \n Operating income                                                       79,980                     80,034               149,306                      131,835       \n Interest income                                                        1,259                      129                  2,917                        261           \n Interest expense                                                       (27,776  )                 (36,003  )           (56,934    )                 (72,338    )  \n Other income (expense)                                                 3,010                      (22      )           6,159                        (5,472     )  \n Income before income taxes                                             56,473                     44,138               101,448                      54,286        \n Income tax expense                                                     (16,180  )                 (17,113  )           (19,502    )                 (22,068    )  \n Net income                                                    $        40,293            $        27,025      $        81,946              $        32,218        \n Net income per share:                                                                                                                                             \n Net income per share, basic                                   $        0.19              $        0.13        $        0.38                $        0.16          \n Weighted average shares of common stock outstanding, basic             217,799                    200,968              216,197                      197,819       \n Net income per share, diluted                                 $        0.18              $        0.13        $        0.37                $        0.16          \n Weighted average shares of common stock outstanding, diluted           224,864                    210,442              223,482                      206,763       \n                                                                                                                                                                   \n\nThe following tables summarize our consolidated key performance measures,\nincluding Field contribution and Field contribution margin, which are non-GAAP\nmeasures, for the periods indicated:\n\n                                                           For the three-month periods ended                                                           \n (dollars in thousands)                                    July 4, 2026            June 28, 2025           Change              % Change                \n Revenue                                                   $        670,483        $        589,553        $     80,930               13.7   %         \n Cost of revenue, excluding depreciation and amortization           451,958                 378,753              73,205               19.3   %         \n Gross margin                                              $        218,525        $        210,800        $     7,725                3.7    %         \n Gross margin percentage                                            32.6     %              35.8     %                                -3.2   %  ((1))  \n Branch and regional administrative expenses                        97,079                  90,069               7,010                7.8    %         \n Field contribution                                        $        121,446        $        120,731        $     715                  0.6    %         \n Field contribution margin                                          18.1     %              20.5     %                                                 \n Corporate expenses                                        $        34,083         $        34,529         $     (446    )            -1.3   %         \n As a percentage of revenue                                         5.1      %              5.9      %                                                 \n Operating income                                          $        79,980         $        80,034         $     (54     )            -0.1   %         \n As a percentage of revenue                                         11.9     %              13.6     %                                                 \n                                                                                                                                                       \n\n\n\n                                                           For the six-month periods ended                                                               \n (dollars in thousands)                                    July 4, 2026             June 28, 2025            Change              % Change                \n Revenue                                                   $        1,318,398       $        1,148,777       $     169,621              14.8   %         \n Cost of revenue, excluding depreciation and amortization           894,445                  754,419               140,026              18.6   %         \n Gross margin                                              $        423,953         $        394,358         $     29,595               7.5    %         \n Gross margin percentage                                            32.2       %             34.3       %                               -2.1   %  ((1))  \n Branch and regional administrative expenses                        192,871                  181,456               11,415               6.3    %         \n Field contribution                                        $        231,082         $        212,902         $     18,180               8.5    %         \n Field contribution margin                                          17.5       %             18.5       %                                                \n Corporate expenses                                        $        68,239          $        72,034          $     (3,795   )           -5.3   %         \n As a percentage of revenue                                         5.2        %             6.3        %                                                \n Operating income                                          $        149,306         $        131,835         $     17,471               13.3   %         \n As a percentage of revenue                                         11.3       %             11.5       %                                                \n\n\n\n (1)  Represents the change in margin percentage year over year (or quarter over quarter).  \n                                                                                            \n\nThe following tables summarize our key performance measures by segment for the\nperiods indicated:\n\n                                                           PDS                                                                                          \n                                                           For the three-month periods ended                                                            \n (dollars and hours in thousands)                          July 4, 2026            June 28, 2025           Change              % Change                 \n Revenue                                                   $        553,929        $        486,012        $     67,917               14.0   %          \n Cost of revenue, excluding depreciation and amortization           394,047                 328,078              65,969               20.1   %          \n Gross margin                                              $        159,882        $        157,934        $     1,948                1.2    %          \n Gross margin percentage                                            28.9     %              32.5     %                                -3.6   %  ((4))   \n Hours                                                              12,413                  11,053               1,360                12.3   %          \n Revenue rate                                              $        44.62          $        43.97          $     0.65                 1.7    %  ((1))   \n Cost of revenue rate                                      $        31.74          $        29.68          $     2.06                 7.8    %  ((2))   \n Spread rate                                               $        12.88          $        14.29          $     (1.41   )            -11.1  %  ((3))   \n                                                                                                                                                        \n                                                           HHH                                                                                          \n                                                           For the three-month periods ended                                                            \n (dollars and admissions/episodes in thousands)            July 4, 2026            June 28, 2025           Change              % Change                 \n Revenue                                                   $        69,023         $        60,112         $     8,911                14.8   %          \n Cost of revenue, excluding depreciation and amortization           31,837                  27,048               4,789                17.7   %          \n Gross margin                                              $        37,186         $        33,064         $     4,122                12.5   %          \n Gross margin percentage                                            53.9     %              55.0     %                                -1.1   %  ((4))   \n Home health total admissions ((5))                                 10.5                    9.8                  0.7                  7.1    %          \n Home health episodic admissions ((6))                              8.5                     7.3                  1.2                  16.4   %          \n Home health total episodes ((7))                                   14.7                    12.4                 2.3                  18.5   %          \n Home health episodic mix ((8))                                     81.0     %              74.5     %                                6.5    %  ((10))  \n Home health revenue per completed episode ((9))           $        3,202          $        3,231          $     (29     )            -0.9   %          \n                                                                                                                                                        \n                                                           MS                                                                                           \n                                                           For the three-month periods ended                                                            \n (dollars and UPS in thousands)                            July 4, 2026            June 28, 2025           Change              % Change                 \n Revenue                                                   $        47,531         $        43,429         $     4,102                9.4    %          \n Cost of revenue, excluding depreciation and amortization           26,074                  23,627               2,447                10.4   %          \n Gross margin                                              $        21,457         $        19,802         $     1,655                8.4    %          \n Gross margin percentage                                            45.1     %              45.6     %                                -0.5   %  ((4))   \n Unique patients served (“UPS”)                                     95                      91                   4                    4.4    %          \n Revenue rate                                              $        500.33         $        477.24         $     23.09                5.0    %  ((1))   \n Cost of revenue rate                                      $        274.46         $        259.64         $     14.82                6.0    %  ((2))   \n Spread rate                                               $        225.87         $        217.60         $     8.27                 4.0    %  ((3))   \n                                                                                                                                                        \n\n\n\n                                                           PDS                                                                                          \n                                                           For the six-month periods ended                                                              \n (dollars and hours in thousands)                          July 4, 2026             June 28, 2025          Change              % Change                 \n Revenue                                                   $        1,089,581       $        946,010       $     143,571              15.2   %          \n Cost of revenue, excluding depreciation and amortization           780,464                  653,391             127,073              19.4   %          \n Gross margin                                              $        309,117         $        292,619       $     16,498               5.6    %          \n Gross margin percentage                                            28.4       %             30.9     %                               -2.5   %  ((4))   \n Hours                                                              24,469                   21,940              2,529                11.5   %          \n Revenue rate                                              $        44.53           $        43.12         $     1.41                 3.7    %  ((1))   \n Cost of revenue rate                                      $        31.90           $        29.78         $     2.12                 7.9    %  ((2))   \n Spread rate                                               $        12.63           $        13.34         $     (0.71    )           -5.9   %  ((3))   \n                                                                                                                                                        \n                                                           HHH                                                                                          \n                                                           For the six-month periods ended                                                              \n (dollars and admissions/episodes in thousands)            July 4, 2026             June 28, 2025          Change              % Change                 \n Revenue                                                   $        135,632         $        116,845       $     18,787               16.1   %          \n Cost of revenue, excluding depreciation and amortization           62,670                   53,041              9,629                18.2   %          \n Gross margin                                              $        72,962          $        63,804        $     9,158                14.4   %          \n Gross margin percentage                                            53.8       %             54.6     %                               -0.8   %  ((4))   \n Home health total admissions ((5))                                 21.5                     19.5                2.0                  10.3   %          \n Home health episodic admissions ((6))                              17.4                     14.8                2.6                  17.6   %          \n Home health total episodes ((7))                                   29.6                     24.5                5.1                  20.8   %          \n Home health episodic mix ((8))                                     80.9       %             75.9     %                               5.0    %  ((10))  \n Home health revenue per completed episode ((9))           $        3,185           $        3,193         $     (8       )           -0.3   %          \n                                                                                                                                                        \n                                                           MS                                                                                           \n                                                           For the six-month periods ended                                                              \n (dollars and UPS in thousands)                            July 4, 2026             June 28, 2025          Change              % Change                 \n Revenue                                                   $        93,185          $        85,922        $     7,263                8.5    %          \n Cost of revenue, excluding depreciation and amortization           51,311                   47,987              3,324                6.9    %          \n Gross margin                                              $        41,874          $        37,935        $     3,939                10.4   %          \n Gross margin percentage                                            44.9       %             44.2     %                               0.7    %  ((4))   \n Unique patients served (“UPS”)                                     188                      180                 8                    4.4    %          \n Revenue rate                                              $        495.66          $        477.34        $     18.32                4.1    %  ((1))   \n Cost of revenue rate                                      $        272.93          $        266.59        $     6.34                 2.5    %  ((2))   \n Spread rate                                               $        222.73          $        210.75        $     11.98                6.0    %  ((3))   \n\n\n\n (1)   Represents the period over period change in revenue rate, plus the change in revenue rate attributable to the change in volume.                  \n (2)   Represents the period over period change in cost of revenue rate, plus the change in cost of revenue rate attributable to the change in volume.  \n (3)   Represents the period over period change in spread rate, plus the change in spread rate attributable to the change in volume.                    \n (4)   Represents the change in margin percentage year over year (or quarter over quarter).                                                             \n (5)   Represents home health episodic and other admissions.                                                                                            \n (6)   Represents home health episodic admissions.                                                                                                      \n (7)   Represents episodic admissions and recertifications.                                                                                             \n (8)   Represents the ratio of home health episodic admissions to home health total admissions.                                                         \n (9)   Represents Medicare revenue per completed episode.                                                                                               \n (10)  Represents the change in home health episodic mix year over year (or quarter over quarter).                                                      \n                                                                                                                                                        \n\nThe following table reconciles gross margin and gross margin percentage to\nField contribution and Field contribution margin:\n\n                                              For the three-month periods ended               For the six-month periods ended                     \n (dollars in thousands)                       July 4, 2026               June 28, 2025        July 4, 2026                 June 28, 2025          \n Gross margin                                 $        218,525           $        210,800     $        423,953             $        394,358       \n Gross margin percentage                               32.6     %                 35.8     %           32.2       %                 34.3       %  \n Branch and regional administrative expenses           97,079                     90,069               192,871                      181,456       \n Field contribution                           $        121,446           $        120,731     $        231,082             $        212,902       \n Field contribution margin                             18.1     %                 20.5     %           17.5       %                 18.5       %  \n Revenue                                      $        670,483           $        589,553     $        1,318,398           $        1,148,777     \n                                                                                                                                                  \n\nThe following table reconciles net income to EBITDA and Adjusted EBITDA:\n\n                                                                        For the three-month periods ended               For the six-month periods ended                 \n (dollars in thousands)                                                 July 4, 2026               June 28, 2025        July 4, 2026               June 28, 2025        \n Net income                                                             $        40,293            $        27,025      $        81,946            $        32,218      \n Interest expense, net                                                           26,517                     35,874               54,017                     72,077      \n Income tax expense                                                              16,180                     17,113               19,502                     22,068      \n Depreciation and amortization                                                   2,849                      2,617                5,893                      5,211       \n EBITDA                                                                          85,839                     82,629               161,358                    131,574     \n Goodwill, intangible and other long-lived asset impairment                      145                        153                  121                        319         \n Non-cash share-based compensation                                               4,135                      5,159                8,282                      16,155      \n Fees related to debt modifications                                              1,504                      -                    1,504                      -           \n Interest rate derivatives ((1))                                                 (3,067   )                 (72      )           (6,171   )                 5,523       \n Acquisition-related costs ((2))                                                 4,390                      3,400                7,500                      3,507       \n Integration costs ((3))                                                         1,246                      2,269                2,669                      2,543       \n Legal costs and settlements associated with acquisition matters ((4))           1,362                      639                  3,418                      1,678       \n Restructuring ((5))                                                             -                          80                   -                          416         \n Other legal matters ((6))                                                       3                          (6,014   )           28                         (5,938   )  \n Other adjustments ((7))                                                         (122     )                 131                  1,077                      (50      )  \n Total adjustments                                                      $        9,596             $        5,745       $        18,428            $        24,153      \n Adjusted EBITDA                                                        $        95,435            $        88,374      $        179,786           $        155,727     \n                                                                                                                                                                        \n\nThe following table reconciles net income to adjusted net income and presents\nadjusted net income per diluted share:\n\n                                                                        For the three-month periods ended               For the six-month periods ended                 \n (dollars in thousands, except share and per share data)                July 4, 2026               June 28, 2025        July 4, 2026               June 28, 2025        \n Net income                                                             $        40,293            $        27,025      $        81,946            $        32,218      \n Income tax expense                                                              16,180                     17,113               19,502                     22,068      \n Goodwill, intangible and other long-lived asset impairment                      145                        153                  121                        319         \n Non-cash share-based compensation                                               4,135                      5,159                8,282                      16,155      \n Fees related to debt modifications                                              1,504                      -                    1,504                      -           \n Interest rate derivatives ((1))                                                 (3,067   )                 (72      )           (6,171   )                 5,523       \n Acquisition-related costs ((2))                                                 4,390                      3,400                7,500                      3,507       \n Integration costs ((3))                                                         1,246                      2,269                2,669                      2,543       \n Legal costs and settlements associated with acquisition matters ((4))           1,362                      639                  3,418                      1,678       \n Restructuring ((5))                                                             -                          80                   -                          416         \n Other legal matters ((6))                                                       3                          (6,014   )           28                         (5,938   )  \n Other adjustments ((7))                                                         (122     )                 131                  1,077                      (50      )  \n Total adjustments                                                               25,776                     22,858               37,930                     46,221      \n Adjusted pre-tax income                                                         66,069                     49,883               119,876                    78,439      \n Income tax expense on adjusted pre-tax income ((8))                             (16,517  )                 (12,471  )           (29,969  )                 (19,610  )  \n Adjusted net income                                                    $        49,552            $        37,412      $        89,907            $        58,829      \n Weighted average shares outstanding, diluted                                    224,864                    210,442              223,482                    206,763     \n Adjusted net income per diluted share ((9))                            $        0.22              $        0.18        $        0.40              $        0.28        \n                                                                                                                                                                        \n\nThe following footnotes are applicable to tables above that reconcile (i) net\nincome to EBITDA and Adjusted EBITDA and (ii) net income to adjusted net\nincome.\n\n (1)  Represents valuation adjustments and settlements associated with interest rate derivatives that are not included in interest expense, net. Such items are included in other income (expense).                                                                   \n (2)  Represents transaction costs incurred in connection with planned, completed, or terminated acquisitions, which include investment banking fees, legal diligence and related documentation costs, and finance and accounting diligence and documentation, as     \n      presented on the Company’s consolidated statements of operations.                                                                                                                                                                                               \n (3)  Represents (i) costs associated with our Integration Management Office, which focuses on our integration efforts and transformational projects such as systems conversions and implementations, material cost reduction and restructuring projects, among other \n      things, of $0.5 million and $0.9 million for the three and six-month periods ended July 4, 2026, respectively, and $0.5 million and $0.7 million for the three and six-month periods ended June 28, 2025, respectively; and (ii) transitionary costs incurred to \n      integrate acquired companies into our field and corporate operations of $0.7 million and $1.8 million for the three and six-month periods ended July 4, 2026, respectively, and $1.8 million for both the three and six-month periods ended June 28, 2025,      \n      respectively. Transitionary costs incurred to integrate acquired companies include IT consulting costs and related integration support costs; salary, severance and retention costs associated with duplicative acquired company personnel until such personnel \n      are exited from the Company; accounting, legal and consulting costs; expenses and impairments related to the closure and consolidation of overlapping markets of acquired companies, including lease termination and relocation costs; costs associated with    \n      terminating legacy acquired company contracts and systems; and one-time costs associated with rebranding our acquired companies and locations to the Aveanna brand.                                                                                             \n (4)  Represents legal and forensic costs, as well as settlements associated with resolving legal matters arising during or as a result of our acquisition-related activities. This primarily includes (i) costs of $1.1 million and $2.6 million for the three and   \n      six-month periods ended July 4, 2026, respectively, and $0.4 million and $1.3 million for the three and six-month periods ended June 28, 2025, respectively, to comply with the U.S. Department of Justice, Antitrust Division’s grand jury subpoena related to \n      nurse wages and hiring activities in certain of our markets, in connection with a terminated transaction.                                                                                                                                                       \n (5)  Represents costs associated with restructuring our branch and regional administrative footprint as well as our corporate overhead infrastructure costs in order to appropriately size our resources to current volumes, including: (i) branch and regional      \n      salary and severance costs; (ii) corporate salary and severance costs; and (iii) rent and lease termination costs associated with the closure of certain office locations.                                                                                      \n (6)  Represents activity related to accrued legal settlements and the related costs and expenses associated with certain judgments and arbitration awards rendered against the Company where certain insurance coverage is in dispute. The Company released a legal  \n      reserve related to a certain accrued legal settlement during the three and six-month period ended June 28, 2025.                                                                                                                                                \n (7)  Represents: (i) other costs or (income) that are either non-cash or non-core to the Company’s ongoing operations of $(0.1) million and $1.1 million for the three and six-month periods ended July 4, 2026, respectively, and $0.1 million and $(0.1) million   \n      for the three and six-month periods ended June 28, 2025, respectively.                                                                                                                                                                                          \n (8)  Derived utilizing a combined federal and state statutory rate of 25% for the three and six-month periods ended July 4, 2026, and June 28, 2025, respectively, and applied to the respective adjusted pre-tax income.                                            \n (9)  Adjustments used to reconcile net income per diluted share on a GAAP basis to adjusted net income per diluted share are comprised of the same adjustments, inclusive of the tax impact, used to reconcile net income to adjusted net income divided by the      \n      weighted-average diluted shares outstanding during the period.                                                                                                                                                                                                  \n                                                                                                                                                                                                                                                                      \n\nThe following table reconciles net income to adjusted net income and presents\nadjusted net income per diluted share:\n\n                                                For the three-month periods ended                                                              For the six-month periods ended                                                             \n                                                July 4, 2026                                     June 28, 2025                                 July 4, 2026                                   June 28, 2025                                \n (dollars in thousands)                         Dollars              Per Diluted Share           Dollars              Per Diluted Share        Dollars             Per Diluted Share          Dollars             Per Diluted Share        \n Net income                                     $     40,293         $          0.18             $     27,025         $          0.13          $     81,946        $          0.37            $     32,218        $          0.16          \n Total adjustments ((1))                              25,776                    0.11                   22,858                    0.11                37,930                   0.16                  46,221                   0.21          \n Income tax expense on adjusted pre-tax income        (16,517  )                (0.07      )           (12,471  )                (0.06      )        (29,969  )               (0.13      )          (19,610  )               (0.09      )  \n Adjusted net income                            $     49,552         $          0.22             $     37,412         $          0.18          $     89,907        $          0.40            $     58,829        $          0.28          \n\n\n\n (1)  Total adjustments agree to the net income to adjusted net income table above.  \n                                                                                     \n\nThe table below reflects the increase or decrease, and aggregate impact, to\nthe line items included on our consolidated statements of operations based\nupon the adjustments used in arriving at Adjusted EBITDA from EBITDA for the\nperiods indicated.\n\n                                                           For the three-month periods ended               For the six-month periods ended                 \n (dollars in thousands)                                    July 4, 2026               June 28, 2025        July 4, 2026               June 28, 2025        \n Cost of revenue, excluding depreciation and amortization  $        345               $        (5,878   )  $        (13      )        $        (5,578   )  \n Branch and regional administrative expenses                        1,485                      1,599                3,504                      4,837       \n Corporate expenses                                                 6,243                      6,451                13,453                     15,599      \n Acquisition-related costs                                          4,390                      3,400                7,500                      3,506       \n Other operating expense                                            -                          109                  -                          47          \n Other income (expense)                                             (2,867   )                 64                   (6,016   )                 5,742       \n Total adjustments                                         $        9,596             $        5,745       $        18,428            $        24,153      \n                                                                                                                                                           \n\nThe following table reconciles the net cash provided by operating activities\nto free cash flow:\n\n                                                    For the six-month period ended         \n (dollars in thousands)                             July 4, 2026                           \n Net cash provided by operations                    $                 85,277               \n Purchases of property and equipment, and software                    (5,847            )  \n Principal payments of term loans                                     (3,312            )  \n Principal payments of notes payable                                  (4,961            )  \n Settlements with swap counterparties                                 4,268                \n Free cash flow                                     $                 75,425               \n                                                                                           \n\nInvestor Contact\n\nMatt Buckhalter\nChief Financial Officer \nir@aveanna.com\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/d3896f9e-a6a1-48c1-a8f7-d9ba5d7433d6)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX85vrth","title":"Aveanna Healthcare Holdings Announces Second Quarter Financial Results and Revised 2026 Guidance","author":"Globe Newswire","ticker":"AVAH","created":"2026-08-13T11:00:03.851Z","tickers":["AVAH"],"exchange":"NASDAQ","article_body":"* Second Quarter Revenue was $670.5 million, a 13.7% increase over the prior\nyear period\n* Second Quarter Net income was $40.3 million compared to $27.0 million for\nthe prior year period\n* Adjusted EBITDA for Q2 2026 was $95.4 million, an 8.0% increase over the\nprior year period\n* Increased Full Year 2026 Revenue guidance to greater than $2.68 billion,\nupdated from between $2.63 and $2.65 billion * Increased Full Year 2026\nAdjusted EBITDA guidance to greater than $365 million, updated from between\n$338 and $342 million\nATLANTA, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Aveanna Healthcare Holdings Inc.\n(NASDAQ: AVAH), a leading, diversified home care platform focused on providing\ncare to medically complex, high-cost patient populations, today announced\nfinancial results for the three and six-month periods ended July 4, 2026.\n\nJeff Shaner, Chief Executive Officer, commented, “Our second quarter results\ndemonstrate the momentum across Aveanna and our ability to consistently\ndeliver sustained year-over-year growth. Revenue and Adjusted EBITDA\nincreased 13.7% and 8.0%, respectively, compared to the prior-year period,\nreflecting our strong organic growth across all three business\nsegments.  Our results reinforce the strength of our operating model, the\ncontinued success of our Preferred Payor and Government Affairs strategies,\nand the dedication of our team to deliver exceptional care to patients and\nfamilies. Given our performance in the first half of the year and confidence\nin our outlook, we are pleased to raise our 2026 revenue and Adjusted EBITDA\nguidance.”\n\nThree-Month Periods Ended July 4, 2026 and June 28, 2025\n\nRevenue was $670.5 million for the three-month period ended July 4, 2026, as\ncompared to $589.6 million for the three-month period ended June 28, 2025, an\nincrease of $80.9 million, or 13.7%. The overall increase in revenue was\nattributable to a $67.9 million increase in PDS segment revenue, an $8.9\nmillion increase in HHH segment revenue, and a $4.1 million increase in MS\nsegment revenue compared to the second quarter of 2025.\n\nGross margin was $218.5 million, or 32.6% of revenue, for the three-month\nperiod ended July 4, 2026, as compared to $210.8 million, or 35.8% of revenue,\nfor the three-month period ended June 28, 2025, an increase of $7.7 million,\nor 3.7%.\n\nNet income was $40.3 million or 6.0% of revenue, for the three-month period\nended July 4, 2026, as compared to net income of $27.0 million, or 4.6% of\nrevenue for the three-month period ended June 28, 2025. Net income per diluted\nshare was $0.18 for the three-month period ended July 4, 2026, as compared to\nnet income per diluted share of $0.13 for the three-month period ended June\n28, 2025. Adjusted net income per diluted share was $0.22 for the three-month\nperiod ended July 4, 2026, as compared to adjusted net income per diluted\nshare of $0.18 for the three-month period ended June 28, 2025. See \"Non-GAAP\nFinancial Measures - Adjusted net income and Adjusted net income per diluted\nshare\" below.\n\nAdjusted EBITDA was $95.4 million, or 14.2% of revenue, for the three-month\nperiod ended July 4, 2026, as compared to $88.4 million, or 15.0% of revenue,\nfor the three-month period ended June 28, 2025, an increase of $7.1 million or\n8.0%. See \"Non-GAAP Financial Measures - EBITDA and Adjusted EBITDA\" below.\n\nSix-Month Periods Ended July 4, 2026 and June 28, 2025\n\nRevenue was $1,318.4 million for the six-month period ended July 4, 2026, as\ncompared to $1,148.8 million for the six-month period ended June 28, 2025, an\nincrease of $169.6 million, or 14.8%. The overall increase in revenue was\nattributable to a $143.6 million increase in PDS segment revenue, an $18.8\nmillion increase in HHH segment revenue, and a $7.3 million increase in MS\nsegment revenue compared to the first six months of 2025.\n\nGross margin was $424.0 million, or 32.2% of revenue, for the six-month period\nended July 4, 2026, as compared to $394.4 million, or 34.3% of revenue, for\nthe six-month period ended June 28, 2025, an increase of $29.6 million, or\n7.5%.\n\nNet income was $81.9 million or 6.2% of revenue for the six-month period ended\nJuly 4, 2026, as compared to net income of $32.2 million or 2.8% of revenue\nfor the six-month period ended June 28, 2025. Net income per diluted share was\n$0.37 for the six-month period ended July 4, 2026, as compared to net income\nper diluted share of $0.16 for the six-month period ended June 28, 2025.\nAdjusted net income per diluted share was $0.40 for the six-month period ended\nJuly 4, 2026, as compared to adjusted net income per diluted share of $0.28\nfor the six-month period ended June 28, 2025. See \"Non-GAAP Financial Measures\n- Adjusted net income and Adjusted net income per diluted share\" below.\n\nAdjusted EBITDA was $179.8 million, or 13.6% of revenue, for the six-month\nperiod ended July 4, 2026, as compared to $155.7 million, or 13.6% of revenue,\nfor the six-month period ended June 28, 2025, an increase of $24.1 million or\n15.4%. See \"Non-GAAP Financial Measures - EBITDA and Adjusted EBITDA\" below.\n\nLiquidity, Cash Flow, and Debt\n* As of July 4, 2026, we had cash of $97.2 million and incremental borrowing\ncapacity of $110.0 million under our securitization facility. Our revolver was\nundrawn, with approximately $225.5 million of borrowing capacity and\napproximately $24.5 million of outstanding letters of credit.\n* Net cash provided by operating activities was $85.3 million for the\nsix-month period ended July 4, 2026. Free cash flow was $75.4 million for the\nsix-month period ended July 4, 2026. See “Non-GAAP Financial Measures - Free\ncash flow” below.\n* As of July 4, 2026 we had total indebtedness of $1,483.4 million. Our\ninterest rate exposure under our credit facilities is currently hedged with\nthe following instruments: * $520.0 million notional amount of interest rate\ncaps that cap our exposure to SOFR at 4.00%, and\n* $880.0 million notional amount of interest rate caps that cap our exposure\nto SOFR at 2.96%.\nMatt Buckhalter, Chief Financial Officer, commented “Aveanna's second\nquarter results continued our momentum with our team executing at a high level\nacross all three divisions. During the quarter, we delivered revenue of $670.5\nmillion and Adjusted EBITDA of $95.4 million. These results, combined with the\nacquisition of Family First and the successful repricing of our credit\nfacility demonstrate the strength of our platform and our commitment to\nsustainable growth while delivering high-quality care to the patients and\nfamilies we serve. Our increased 2026 guidance, including revenue of greater\nthan $2.68 billion and Adjusted EBITDA of greater than $365 million,\nunderscores the strength of our business model and the opportunities ahead as\nwe continue to execute on our strategic initiatives.”\n\nFull Year 2026 Guidance\n\nThe following is our guidance reflecting our increased expectations for\nrevenue and Adjusted EBITDA for the full fiscal year 2026 (year ending January\n2, 2027):\n* Revenue of greater than $2.68 billion, updated from between $2.63 and $2.65\nbillion.\nConsistent with prior practice, we are not providing guidance on net income at\nthis time due to the volatility of certain required inputs that are not\navailable without unreasonable efforts, including future fair value\nadjustments associated with our interest rate caps.\n* Adjusted EBITDA of greater than $365 million, updated from between $338 and\n$342 million.\nNon-GAAP Financial Measures\n\nIn addition to our results of operations prepared in accordance with U.S.\ngenerally accepted accounting principles (“GAAP”), we also evaluate our\nfinancial performance using EBITDA, Adjusted EBITDA, Field contribution, Field\ncontribution margin, Adjusted net income or loss, Adjusted net income or loss\nper diluted share, and Free cash flow. Given our determination of adjustments\nin arriving at our computations, these non-GAAP measures have limitations as\nanalytical tools and should not be considered in isolation or as substitutes\nor alternatives to net income or loss, revenue, operating income or loss, cash\nflows from operating activities, total indebtedness, gross margin, gross\nmargin percentage or any other financial measures calculated in accordance\nwith GAAP. The reconciliations of these non-GAAP financial measures to their\nmost directly comparable GAAP measures are included in the financial tables\nbelow.\n\nEBITDA and Adjusted EBITDA\n\nEBITDA and Adjusted EBITDA are non-GAAP financial measures and are not\nintended to replace financial performance measures determined in accordance\nwith GAAP, such as net income or loss. Rather, we present EBITDA and Adjusted\nEBITDA as supplemental measures of our performance. We define EBITDA as net\nincome or loss before interest expense, net; income tax expense or benefit;\nand depreciation and amortization. We define Adjusted EBITDA as EBITDA,\nadjusted for the impact of certain other items that are either non-recurring,\ninfrequent, non-cash, unusual, or items deemed by management to not be\nindicative of the performance of our core operations, including impairments of\ngoodwill, intangible assets, and other long-lived assets; non-cash,\nshare-based compensation and associated employer payroll taxes; loss on\nextinguishment of debt; fees related to debt modifications; the effect of\ninterest rate derivatives; acquisition-related and integration costs; legal\ncosts and settlements associated with acquisition matters; restructuring\ncosts; other legal matters; and other system transition costs, professional\nfees and other costs. As non-GAAP financial measures, our computations of\nEBITDA and Adjusted EBITDA may vary from similarly termed non-GAAP financial\nmeasures used by other companies, making comparisons with other companies on\nthe basis of this measure impracticable.\n\nWe believe our computations of EBITDA and Adjusted EBITDA are helpful in\nhighlighting trends in our core operating performance. In determining which\nadjustments are made to arrive at EBITDA and Adjusted EBITDA, we consider both\n(1) certain non-recurring, infrequent, non-cash or unusual items, which can\nvary significantly from year to year, as well as (2) certain other items that\nmay be recurring, frequent, or settled in cash but which we do not believe are\nindicative of our core operating performance. We use EBITDA and Adjusted\nEBITDA to assess operating performance and make business decisions.\n\nWe have incurred substantial acquisition-related costs and integration costs.\nThe underlying acquisition activities take place over a defined timeframe,\nhave distinct project timelines and are incremental to activities and costs\nthat arise in the ordinary course of our business. Therefore, we believe it is\nimportant to exclude these costs from our Adjusted EBITDA because it provides\nus a normalized view of our core, ongoing operations after integrating our\nacquired companies, which we believe is an important measure in assessing our\nperformance.\n\nField contribution and Field contribution margin\n\nField contribution and Field contribution margin are non-GAAP financial\nmeasures and are not intended to replace financial performance measures\ndetermined in accordance with GAAP, such as gross margin and gross margin\npercentage. Rather, we present Field contribution and Field contribution\nmargin as supplemental measures of our performance. We define Field\ncontribution as gross margin less branch and regional administrative expenses.\nField contribution margin is Field contribution as a percentage of revenue. As\nnon-GAAP financial measures, our computations of Field contribution and Field\ncontribution margin may vary from similarly termed non-GAAP financial measures\nused by other companies, making comparisons with other companies on the basis\nof these measures impracticable.\n\nField contribution and Field contribution margin have limitations as\nanalytical tools and should not be considered in isolation or as substitutes\nor alternatives to gross margin, gross margin percentage, net income or loss,\nrevenue, operating income or loss, cash flows from operating activities, total\nindebtedness or any other financial measures calculated in accordance with\nGAAP.\n\nManagement believes Field contribution and Field contribution margin are\nhelpful in highlighting trends in our core operating performance and\nevaluating trends in our branch and regional results, which can vary from year\nto year. We use Field contribution and Field contribution margin to make\nbusiness decisions and assess the operating performance and results delivered\nby our core field operations, prior to corporate and other costs not directly\nrelated to our field operations. These metrics are also important because they\nguide us in determining whether or not our branch and regional administrative\nexpenses are appropriately sized to support our caregivers and direct patient\ncare operations. Additionally, Field contribution and Field contribution\nmargin determine how effective we are in managing our field supervisory and\nadministrative costs associated with supporting our provision of services and\nsale of products.\n\nAdjusted net income and Adjusted net income per diluted share\n\nAdjusted net income represents net income as adjusted for the impact of GAAP\nincome tax, goodwill, intangible and other long-lived asset impairment\ncharges, non-cash share-based compensation expense, loss on extinguishment of\ndebt, fees related to debt modifications; interest rate derivatives,\nacquisition-related costs, integration costs, legal costs, restructuring\ncosts, other legal matters, other system transition costs, professional fees\nand certain other miscellaneous items on a pre-tax basis. Adjusted net income\nincludes a provision for income taxes derived utilizing a combined statutory\ntax rate. The combined statutory tax rate is our estimate of our long-term tax\nrate. The most comparable GAAP measure is net income.\n\nAdjusted net income per diluted share represents adjusted net income on a per\ndiluted share basis using the weighted-average number of diluted shares\noutstanding for the period. The most comparable GAAP measure is net income per\nshare, diluted.\n\nAdjusted net income and adjusted net income per diluted share are important to\nus because they allow us to assess financial results, exclusive of the items\nmentioned above that are not operational in nature or comparable to those of\nour competitors.\n\nFree cash flow\n\nFree cash flow is a liquidity measure that represents operating cash flow,\nadjusted for the impact of purchases of property, equipment and software,\nproceeds from issuance of term loans, net of debt issuance costs, principal\npayments on term loans, notes payable and financing leases, and settlements\nwith swap counterparties. The most comparable GAAP measure is cash flow from\noperations.\n\nWe believe free cash flow is helpful in highlighting the cash generated or\nused by the Company, after taking into consideration mandatory payments on\nterm loans, notes payable and financing leases, as well as cash needed for\nnon-acquisition related capital expenditures, and cash paid to or received\nfrom derivative counterparties.\n\nConference Call\n\nAveanna will host a conference call on Thursday, August 13, 2026, at 10:00\na.m. Eastern Time to discuss our second quarter results. The conference call\ncan be accessed live over the phone by dialing 1-877-407-0789, or for\ninternational callers, 1-201-689-8562. A telephonic replay of the conference\ncall will be available until August 20, 2026, by dialing 1-844-512-2921, or\nfor international callers, 1-412-317-6671. The passcode for the live call and\nthe replay is 13760758. A live webcast of our conference call will also be\navailable under the Investor Relations section of our website:\nhttps://ir.aveanna.com/. The online replay will also be available for one week\nfollowing the call.\n\nForward-Looking Statements\n\nCertain matters discussed in this press release constitute forward-looking\nstatements within the meaning of the Private Securities Litigation Reform Act\nof 1995. All statements (other than statements of historical facts) in this\npress release regarding our prospects, plans, financial position, business\nstrategy and expected financial and operational results may constitute\nforward-looking statements. Forward-looking statements generally can be\nidentified by the use of terminology such as “believe,” “expect,”\n“anticipate,” “intend,” “plan,” “estimate,” “seek,”\n“will,” “may,” “should,” “would,” “predict,”\n“project,” “potential,” “continue,” “could,” “design,”\n“guidance,” or the negatives of these terms or variations of them or\nsimilar expressions. These statements are based on certain assumptions that we\nhave made in light of our experience in the industry as well as our\nperceptions of historical trends, current conditions, expected future\ndevelopments and other factors we believe are appropriate in these\ncircumstances. These forward-looking statements are based on our current\nexpectations and beliefs concerning future developments and their potential\neffect on us. Forward-looking statements involve a number of risks and\nuncertainties that may cause actual results to differ materially from those\nexpressed or implied by such forward-looking statements, such as intense\ncompetition among home health, hospice and durable medical equipment\ncompanies; our ability to maintain relationships with existing patient\nreferral sources; our ability to have services funded from third-party payers,\nincluding Medicare, Medicaid and private health insurance companies, including\nas a result of changes to Medicaid to be implemented under the One Big\nBeautiful Bill Act; changes to Medicare or Medicaid rates or methods governing\nMedicare or Medicaid payments, and the implementation of alternative payment\nmodels, including but not limited to Medicare Advantage, Managed Care\nOrganization, managed Medicaid, and other forms of managed care; any downward\npressure on reimbursement resulting from further proliferation of Medicare\nAdvantage plans; our limited ability to control reimbursement rates received\nfor our services; delays in collection or non-collection of our patient\naccounts receivable, particularly during the business integration process, or\nwhen transitioning between systems associated with clinical data collection\nand submission, as well as billing and collection systems; healthcare reform\nand other regulations, including risks related to the proposed rule issued for\nthe home health prospective payment system by Centers for Medicare & Medicaid\nServices; changes in the case-mix of our patients, as well as payer mix and\npayment methodologies; any reduction in net reimbursement if we do not\neffectively implement value-based care programs; the possibility that our\nbusiness, financial condition and results of operations may be materially\nadversely affected by public health emergencies, such as a pandemic or other\ninfectious disease outbreak; shortages in qualified employees and management\nand competition for qualified personnel; any failure to maintain the security\nand functionality of our information systems or to defend against or otherwise\nprevent a cybersecurity attack or breach; our substantial indebtedness, which\nincreases our vulnerability to general adverse economic and industry\nconditions and may limit our ability to pursue strategic alternatives and\nreact to changes in our business and industry; our ability to identify, obtain\nfinancing for, acquire and integrate strategic and accretive businesses or\nassets; risks related to legal proceedings, claims and governmental inquiries\ngiven that the nature of our business exposes us to various liability claims,\nwhich may exceed the level of our insurance coverage, and other risks set\nforth under the heading “Risk Factors” in Aveanna’s Annual Report on\nForm 10-K for its 2025 fiscal year filed with the Securities and Exchange\nCommission on March 19, 2026, which is available at www.sec.gov. In addition,\nthese forward-looking statements necessarily depend upon assumptions,\nestimates and dates that may prove to be incorrect or imprecise. Accordingly,\nforward-looking statements included in this press release do not purport to be\npredictions of future events or circumstances, and actual results may differ\nmaterially from those expressed by forward-looking statements. All\nforward-looking statements speak only as of the date made, and Aveanna\nundertakes no obligation to update or revise any forward-looking statements,\nwhether as a result of new information, future events or otherwise, except as\nrequired by law.\n\nAbout Aveanna Healthcare\n\nAveanna Healthcare is headquartered in Atlanta, Georgia and has locations in\n39 states providing a broad range of pediatric and adult healthcare services,\nprimarily focused on care in the home, including nursing, hospice,\nrehabilitation, occupational nursing in schools, therapy, and day treatment\ncenter services for medically complex and chronically ill children and adults,\nas well as delivery of enteral nutrition and other products to patients. In\naddition, the Company provides respite healthcare services, which are\ntemporary care provider services provided in relief of the patient’s normal\ncaregiver. The Company’s services are designed to provide a high quality,\nlower cost alternative to prolonged hospitalization. For more information,\nplease visit www.aveanna.com.\n\nCash Flow and Information about Indebtedness\n\nThe following table sets forth a summary of our cash flows from operating,\ninvesting, and financing activities for the periods presented:\n\n                                                   For the six-month periods ended                         \n (dollars in thousands)                            July 4, 2026                       June 28, 2025        \n Net cash provided by operating activities         $        85,277                    $        42,937      \n Net cash used in investing activities             $        (179,924  )               $        (18,330  )  \n Net cash used in financing activities             $        (1,417    )               $        (8,157   )  \n Cash and cash equivalents at beginning of period  $        193,260                   $        84,288      \n Cash and cash equivalents at end of period        $        97,196                    $        100,738     \n                                                                                                           \n\nThe following table presents our long-term indebtedness as of July 4, 2026:\n\n (dollars in thousands)                                                                   \n Instrument                                        Interest Rate    July 4, 2026          \n 2026 Term Loans ( (1))                            S + 3.00%        $        1,318,375    \n 2026 Refinancing Revolving Credit Facility ((1))  S + 3.00%                 -            \n Securitization Facility ((1))                     S + 2.50%                 165,000      \n Total indebtedness                                                 $        1,483,375    \n ((1))S = One-month SOFR                                                                  \n                                                                                          \n\nResults of Operations\n\nThe following table summarizes our consolidated results of operations for the\nperiods indicated (amounts in thousands, except per share data):\n\n                                                               For the three-month periods ended               For the six-month periods ended                     \n                                                               July 4, 2026               June 28, 2025        July 4, 2026                 June 28, 2025          \n Revenue                                                       $        670,483           $        589,553     $        1,318,398           $        1,148,777     \n Cost of revenue, excluding depreciation and amortization               451,958                    378,753              894,445                      754,419       \n Branch and regional administrative expenses                            97,079                     90,069               192,871                      181,456       \n Corporate expenses                                                     34,083                     34,529               68,239                       72,034        \n Depreciation and amortization                                          2,849                      2,617                5,893                        5,211         \n Acquisition-related costs                                              4,390                      3,400                7,500                        3,506         \n Other operating expense                                                144                        151                  144                          316           \n Operating income                                                       79,980                     80,034               149,306                      131,835       \n Interest income                                                        1,259                      129                  2,917                        261           \n Interest expense                                                       (27,776  )                 (36,003  )           (56,934    )                 (72,338    )  \n Other income (expense)                                                 3,010                      (22      )           6,159                        (5,472     )  \n Income before income taxes                                             56,473                     44,138               101,448                      54,286        \n Income tax expense                                                     (16,180  )                 (17,113  )           (19,502    )                 (22,068    )  \n Net income                                                    $        40,293            $        27,025      $        81,946              $        32,218        \n Net income per share:                                                                                                                                             \n Net income per share, basic                                   $        0.19              $        0.13        $        0.38                $        0.16          \n Weighted average shares of common stock outstanding, basic             217,799                    200,968              216,197                      197,819       \n Net income per share, diluted                                 $        0.18              $        0.13        $        0.37                $        0.16          \n Weighted average shares of common stock outstanding, diluted           224,864                    210,442              223,482                      206,763       \n                                                                                                                                                                   \n\nThe following tables summarize our consolidated key performance measures,\nincluding Field contribution and Field contribution margin, which are non-GAAP\nmeasures, for the periods indicated:\n\n                                                           For the three-month periods ended                                                           \n (dollars in thousands)                                    July 4, 2026            June 28, 2025           Change              % Change                \n Revenue                                                   $        670,483        $        589,553        $     80,930               13.7   %         \n Cost of revenue, excluding depreciation and amortization           451,958                 378,753              73,205               19.3   %         \n Gross margin                                              $        218,525        $        210,800        $     7,725                3.7    %         \n Gross margin percentage                                            32.6     %              35.8     %                                -3.2   %  ((1))  \n Branch and regional administrative expenses                        97,079                  90,069               7,010                7.8    %         \n Field contribution                                        $        121,446        $        120,731        $     715                  0.6    %         \n Field contribution margin                                          18.1     %              20.5     %                                                 \n Corporate expenses                                        $        34,083         $        34,529         $     (446    )            -1.3   %         \n As a percentage of revenue                                         5.1      %              5.9      %                                                 \n Operating income                                          $        79,980         $        80,034         $     (54     )            -0.1   %         \n As a percentage of revenue                                         11.9     %              13.6     %                                                 \n                                                                                                                                                       \n\n\n\n                                                           For the six-month periods ended                                                               \n (dollars in thousands)                                    July 4, 2026             June 28, 2025            Change              % Change                \n Revenue                                                   $        1,318,398       $        1,148,777       $     169,621              14.8   %         \n Cost of revenue, excluding depreciation and amortization           894,445                  754,419               140,026              18.6   %         \n Gross margin                                              $        423,953         $        394,358         $     29,595               7.5    %         \n Gross margin percentage                                            32.2       %             34.3       %                               -2.1   %  ((1))  \n Branch and regional administrative expenses                        192,871                  181,456               11,415               6.3    %         \n Field contribution                                        $        231,082         $        212,902         $     18,180               8.5    %         \n Field contribution margin                                          17.5       %             18.5       %                                                \n Corporate expenses                                        $        68,239          $        72,034          $     (3,795   )           -5.3   %         \n As a percentage of revenue                                         5.2        %             6.3        %                                                \n Operating income                                          $        149,306         $        131,835         $     17,471               13.3   %         \n As a percentage of revenue                                         11.3       %             11.5       %                                                \n\n\n\n (1)  Represents the change in margin percentage year over year (or quarter over quarter).  \n                                                                                            \n\nThe following tables summarize our key performance measures by segment for the\nperiods indicated:\n\n                                                           PDS                                                                                          \n                                                           For the three-month periods ended                                                            \n (dollars and hours in thousands)                          July 4, 2026            June 28, 2025           Change              % Change                 \n Revenue                                                   $        553,929        $        486,012        $     67,917               14.0   %          \n Cost of revenue, excluding depreciation and amortization           394,047                 328,078              65,969               20.1   %          \n Gross margin                                              $        159,882        $        157,934        $     1,948                1.2    %          \n Gross margin percentage                                            28.9     %              32.5     %                                -3.6   %  ((4))   \n Hours                                                              12,413                  11,053               1,360                12.3   %          \n Revenue rate                                              $        44.62          $        43.97          $     0.65                 1.7    %  ((1))   \n Cost of revenue rate                                      $        31.74          $        29.68          $     2.06                 7.8    %  ((2))   \n Spread rate                                               $        12.88          $        14.29          $     (1.41   )            -11.1  %  ((3))   \n                                                                                                                                                        \n                                                           HHH                                                                                          \n                                                           For the three-month periods ended                                                            \n (dollars and admissions/episodes in thousands)            July 4, 2026            June 28, 2025           Change              % Change                 \n Revenue                                                   $        69,023         $        60,112         $     8,911                14.8   %          \n Cost of revenue, excluding depreciation and amortization           31,837                  27,048               4,789                17.7   %          \n Gross margin                                              $        37,186         $        33,064         $     4,122                12.5   %          \n Gross margin percentage                                            53.9     %              55.0     %                                -1.1   %  ((4))   \n Home health total admissions ((5))                                 10.5                    9.8                  0.7                  7.1    %          \n Home health episodic admissions ((6))                              8.5                     7.3                  1.2                  16.4   %          \n Home health total episodes ((7))                                   14.7                    12.4                 2.3                  18.5   %          \n Home health episodic mix ((8))                                     81.0     %              74.5     %                                6.5    %  ((10))  \n Home health revenue per completed episode ((9))           $        3,202          $        3,231          $     (29     )            -0.9   %          \n                                                                                                                                                        \n                                                           MS                                                                                           \n                                                           For the three-month periods ended                                                            \n (dollars and UPS in thousands)                            July 4, 2026            June 28, 2025           Change              % Change                 \n Revenue                                                   $        47,531         $        43,429         $     4,102                9.4    %          \n Cost of revenue, excluding depreciation and amortization           26,074                  23,627               2,447                10.4   %          \n Gross margin                                              $        21,457         $        19,802         $     1,655                8.4    %          \n Gross margin percentage                                            45.1     %              45.6     %                                -0.5   %  ((4))   \n Unique patients served (“UPS”)                                     95                      91                   4                    4.4    %          \n Revenue rate                                              $        500.33         $        477.24         $     23.09                5.0    %  ((1))   \n Cost of revenue rate                                      $        274.46         $        259.64         $     14.82                6.0    %  ((2))   \n Spread rate                                               $        225.87         $        217.60         $     8.27                 4.0    %  ((3))   \n                                                                                                                                                        \n\n\n\n                                                           PDS                                                                                          \n                                                           For the six-month periods ended                                                              \n (dollars and hours in thousands)                          July 4, 2026             June 28, 2025          Change              % Change                 \n Revenue                                                   $        1,089,581       $        946,010       $     143,571              15.2   %          \n Cost of revenue, excluding depreciation and amortization           780,464                  653,391             127,073              19.4   %          \n Gross margin                                              $        309,117         $        292,619       $     16,498               5.6    %          \n Gross margin percentage                                            28.4       %             30.9     %                               -2.5   %  ((4))   \n Hours                                                              24,469                   21,940              2,529                11.5   %          \n Revenue rate                                              $        44.53           $        43.12         $     1.41                 3.7    %  ((1))   \n Cost of revenue rate                                      $        31.90           $        29.78         $     2.12                 7.9    %  ((2))   \n Spread rate                                               $        12.63           $        13.34         $     (0.71    )           -5.9   %  ((3))   \n                                                                                                                                                        \n                                                           HHH                                                                                          \n                                                           For the six-month periods ended                                                              \n (dollars and admissions/episodes in thousands)            July 4, 2026             June 28, 2025          Change              % Change                 \n Revenue                                                   $        135,632         $        116,845       $     18,787               16.1   %          \n Cost of revenue, excluding depreciation and amortization           62,670                   53,041              9,629                18.2   %          \n Gross margin                                              $        72,962          $        63,804        $     9,158                14.4   %          \n Gross margin percentage                                            53.8       %             54.6     %                               -0.8   %  ((4))   \n Home health total admissions ((5))                                 21.5                     19.5                2.0                  10.3   %          \n Home health episodic admissions ((6))                              17.4                     14.8                2.6                  17.6   %          \n Home health total episodes ((7))                                   29.6                     24.5                5.1                  20.8   %          \n Home health episodic mix ((8))                                     80.9       %             75.9     %                               5.0    %  ((10))  \n Home health revenue per completed episode ((9))           $        3,185           $        3,193         $     (8       )           -0.3   %          \n                                                                                                                                                        \n                                                           MS                                                                                           \n                                                           For the six-month periods ended                                                              \n (dollars and UPS in thousands)                            July 4, 2026             June 28, 2025          Change              % Change                 \n Revenue                                                   $        93,185          $        85,922        $     7,263                8.5    %          \n Cost of revenue, excluding depreciation and amortization           51,311                   47,987              3,324                6.9    %          \n Gross margin                                              $        41,874          $        37,935        $     3,939                10.4   %          \n Gross margin percentage                                            44.9       %             44.2     %                               0.7    %  ((4))   \n Unique patients served (“UPS”)                                     188                      180                 8                    4.4    %          \n Revenue rate                                              $        495.66          $        477.34        $     18.32                4.1    %  ((1))   \n Cost of revenue rate                                      $        272.93          $        266.59        $     6.34                 2.5    %  ((2))   \n Spread rate                                               $        222.73          $        210.75        $     11.98                6.0    %  ((3))   \n\n\n\n (1)   Represents the period over period change in revenue rate, plus the change in revenue rate attributable to the change in volume.                  \n (2)   Represents the period over period change in cost of revenue rate, plus the change in cost of revenue rate attributable to the change in volume.  \n (3)   Represents the period over period change in spread rate, plus the change in spread rate attributable to the change in volume.                    \n (4)   Represents the change in margin percentage year over year (or quarter over quarter).                                                             \n (5)   Represents home health episodic and other admissions.                                                                                            \n (6)   Represents home health episodic admissions.                                                                                                      \n (7)   Represents episodic admissions and recertifications.                                                                                             \n (8)   Represents the ratio of home health episodic admissions to home health total admissions.                                                         \n (9)   Represents Medicare revenue per completed episode.                                                                                               \n (10)  Represents the change in home health episodic mix year over year (or quarter over quarter).                                                      \n                                                                                                                                                        \n\nThe following table reconciles gross margin and gross margin percentage to\nField contribution and Field contribution margin:\n\n                                              For the three-month periods ended               For the six-month periods ended                     \n (dollars in thousands)                       July 4, 2026               June 28, 2025        July 4, 2026                 June 28, 2025          \n Gross margin                                 $        218,525           $        210,800     $        423,953             $        394,358       \n Gross margin percentage                               32.6     %                 35.8     %           32.2       %                 34.3       %  \n Branch and regional administrative expenses           97,079                     90,069               192,871                      181,456       \n Field contribution                           $        121,446           $        120,731     $        231,082             $        212,902       \n Field contribution margin                             18.1     %                 20.5     %           17.5       %                 18.5       %  \n Revenue                                      $        670,483           $        589,553     $        1,318,398           $        1,148,777     \n                                                                                                                                                  \n\nThe following table reconciles net income to EBITDA and Adjusted EBITDA:\n\n                                                                        For the three-month periods ended               For the six-month periods ended                 \n (dollars in thousands)                                                 July 4, 2026               June 28, 2025        July 4, 2026               June 28, 2025        \n Net income                                                             $        40,293            $        27,025      $        81,946            $        32,218      \n Interest expense, net                                                           26,517                     35,874               54,017                     72,077      \n Income tax expense                                                              16,180                     17,113               19,502                     22,068      \n Depreciation and amortization                                                   2,849                      2,617                5,893                      5,211       \n EBITDA                                                                          85,839                     82,629               161,358                    131,574     \n Goodwill, intangible and other long-lived asset impairment                      145                        153                  121                        319         \n Non-cash share-based compensation                                               4,135                      5,159                8,282                      16,155      \n Fees related to debt modifications                                              1,504                      -                    1,504                      -           \n Interest rate derivatives ((1))                                                 (3,067   )                 (72      )           (6,171   )                 5,523       \n Acquisition-related costs ((2))                                                 4,390                      3,400                7,500                      3,507       \n Integration costs ((3))                                                         1,246                      2,269                2,669                      2,543       \n Legal costs and settlements associated with acquisition matters ((4))           1,362                      639                  3,418                      1,678       \n Restructuring ((5))                                                             -                          80                   -                          416         \n Other legal matters ((6))                                                       3                          (6,014   )           28                         (5,938   )  \n Other adjustments ((7))                                                         (122     )                 131                  1,077                      (50      )  \n Total adjustments                                                      $        9,596             $        5,745       $        18,428            $        24,153      \n Adjusted EBITDA                                                        $        95,435            $        88,374      $        179,786           $        155,727     \n                                                                                                                                                                        \n\nThe following table reconciles net income to adjusted net income and presents\nadjusted net income per diluted share:\n\n                                                                        For the three-month periods ended               For the six-month periods ended                 \n (dollars in thousands, except share and per share data)                July 4, 2026               June 28, 2025        July 4, 2026               June 28, 2025        \n Net income                                                             $        40,293            $        27,025      $        81,946            $        32,218      \n Income tax expense                                                              16,180                     17,113               19,502                     22,068      \n Goodwill, intangible and other long-lived asset impairment                      145                        153                  121                        319         \n Non-cash share-based compensation                                               4,135                      5,159                8,282                      16,155      \n Fees related to debt modifications                                              1,504                      -                    1,504                      -           \n Interest rate derivatives ((1))                                                 (3,067   )                 (72      )           (6,171   )                 5,523       \n Acquisition-related costs ((2))                                                 4,390                      3,400                7,500                      3,507       \n Integration costs ((3))                                                         1,246                      2,269                2,669                      2,543       \n Legal costs and settlements associated with acquisition matters ((4))           1,362                      639                  3,418                      1,678       \n Restructuring ((5))                                                             -                          80                   -                          416         \n Other legal matters ((6))                                                       3                          (6,014   )           28                         (5,938   )  \n Other adjustments ((7))                                                         (122     )                 131                  1,077                      (50      )  \n Total adjustments                                                               25,776                     22,858               37,930                     46,221      \n Adjusted pre-tax income                                                         66,069                     49,883               119,876                    78,439      \n Income tax expense on adjusted pre-tax income ((8))                             (16,517  )                 (12,471  )           (29,969  )                 (19,610  )  \n Adjusted net income                                                    $        49,552            $        37,412      $        89,907            $        58,829      \n Weighted average shares outstanding, diluted                                    224,864                    210,442              223,482                    206,763     \n Adjusted net income per diluted share ((9))                            $        0.22              $        0.18        $        0.40              $        0.28        \n                                                                                                                                                                        \n\nThe following footnotes are applicable to tables above that reconcile (i) net\nincome to EBITDA and Adjusted EBITDA and (ii) net income to adjusted net\nincome.\n\n (1)  Represents valuation adjustments and settlements associated with interest rate derivatives that are not included in interest expense, net. Such items are included in other income (expense).                                                                   \n (2)  Represents transaction costs incurred in connection with planned, completed, or terminated acquisitions, which include investment banking fees, legal diligence and related documentation costs, and finance and accounting diligence and documentation, as     \n      presented on the Company’s consolidated statements of operations.                                                                                                                                                                                               \n (3)  Represents (i) costs associated with our Integration Management Office, which focuses on our integration efforts and transformational projects such as systems conversions and implementations, material cost reduction and restructuring projects, among other \n      things, of $0.5 million and $0.9 million for the three and six-month periods ended July 4, 2026, respectively, and $0.5 million and $0.7 million for the three and six-month periods ended June 28, 2025, respectively; and (ii) transitionary costs incurred to \n      integrate acquired companies into our field and corporate operations of $0.7 million and $1.8 million for the three and six-month periods ended July 4, 2026, respectively, and $1.8 million for both the three and six-month periods ended June 28, 2025,      \n      respectively. Transitionary costs incurred to integrate acquired companies include IT consulting costs and related integration support costs; salary, severance and retention costs associated with duplicative acquired company personnel until such personnel \n      are exited from the Company; accounting, legal and consulting costs; expenses and impairments related to the closure and consolidation of overlapping markets of acquired companies, including lease termination and relocation costs; costs associated with    \n      terminating legacy acquired company contracts and systems; and one-time costs associated with rebranding our acquired companies and locations to the Aveanna brand.                                                                                             \n (4)  Represents legal and forensic costs, as well as settlements associated with resolving legal matters arising during or as a result of our acquisition-related activities. This primarily includes (i) costs of $1.1 million and $2.6 million for the three and   \n      six-month periods ended July 4, 2026, respectively, and $0.4 million and $1.3 million for the three and six-month periods ended June 28, 2025, respectively, to comply with the U.S. Department of Justice, Antitrust Division’s grand jury subpoena related to \n      nurse wages and hiring activities in certain of our markets, in connection with a terminated transaction.                                                                                                                                                       \n (5)  Represents costs associated with restructuring our branch and regional administrative footprint as well as our corporate overhead infrastructure costs in order to appropriately size our resources to current volumes, including: (i) branch and regional      \n      salary and severance costs; (ii) corporate salary and severance costs; and (iii) rent and lease termination costs associated with the closure of certain office locations.                                                                                      \n (6)  Represents activity related to accrued legal settlements and the related costs and expenses associated with certain judgments and arbitration awards rendered against the Company where certain insurance coverage is in dispute. The Company released a legal  \n      reserve related to a certain accrued legal settlement during the three and six-month period ended June 28, 2025.                                                                                                                                                \n (7)  Represents: (i) other costs or (income) that are either non-cash or non-core to the Company’s ongoing operations of $(0.1) million and $1.1 million for the three and six-month periods ended July 4, 2026, respectively, and $0.1 million and $(0.1) million   \n      for the three and six-month periods ended June 28, 2025, respectively.                                                                                                                                                                                          \n (8)  Derived utilizing a combined federal and state statutory rate of 25% for the three and six-month periods ended July 4, 2026, and June 28, 2025, respectively, and applied to the respective adjusted pre-tax income.                                            \n (9)  Adjustments used to reconcile net income per diluted share on a GAAP basis to adjusted net income per diluted share are comprised of the same adjustments, inclusive of the tax impact, used to reconcile net income to adjusted net income divided by the      \n      weighted-average diluted shares outstanding during the period.                                                                                                                                                                                                  \n                                                                                                                                                                                                                                                                      \n\nThe following table reconciles net income to adjusted net income and presents\nadjusted net income per diluted share:\n\n                                                For the three-month periods ended                                                              For the six-month periods ended                                                             \n                                                July 4, 2026                                     June 28, 2025                                 July 4, 2026                                   June 28, 2025                                \n (dollars in thousands)                         Dollars              Per Diluted Share           Dollars              Per Diluted Share        Dollars             Per Diluted Share          Dollars             Per Diluted Share        \n Net income                                     $     40,293         $          0.18             $     27,025         $          0.13          $     81,946        $          0.37            $     32,218        $          0.16          \n Total adjustments ((1))                              25,776                    0.11                   22,858                    0.11                37,930                   0.16                  46,221                   0.21          \n Income tax expense on adjusted pre-tax income        (16,517  )                (0.07      )           (12,471  )                (0.06      )        (29,969  )               (0.13      )          (19,610  )               (0.09      )  \n Adjusted net income                            $     49,552         $          0.22             $     37,412         $          0.18          $     89,907        $          0.40            $     58,829        $          0.28          \n\n\n\n (1)  Total adjustments agree to the net income to adjusted net income table above.  \n                                                                                     \n\nThe table below reflects the increase or decrease, and aggregate impact, to\nthe line items included on our consolidated statements of operations based\nupon the adjustments used in arriving at Adjusted EBITDA from EBITDA for the\nperiods indicated.\n\n                                                           For the three-month periods ended               For the six-month periods ended                 \n (dollars in thousands)                                    July 4, 2026               June 28, 2025        July 4, 2026               June 28, 2025        \n Cost of revenue, excluding depreciation and amortization  $        345               $        (5,878   )  $        (13      )        $        (5,578   )  \n Branch and regional administrative expenses                        1,485                      1,599                3,504                      4,837       \n Corporate expenses                                                 6,243                      6,451                13,453                     15,599      \n Acquisition-related costs                                          4,390                      3,400                7,500                      3,506       \n Other operating expense                                            -                          109                  -                          47          \n Other income (expense)                                             (2,867   )                 64                   (6,016   )                 5,742       \n Total adjustments                                         $        9,596             $        5,745       $        18,428            $        24,153      \n                                                                                                                                                           \n\nThe following table reconciles the net cash provided by operating activities\nto free cash flow:\n\n                                                    For the six-month period ended         \n (dollars in thousands)                             July 4, 2026                           \n Net cash provided by operations                    $                 85,277               \n Purchases of property and equipment, and software                    (5,847            )  \n Principal payments of term loans                                     (3,312            )  \n Principal payments of notes payable                                  (4,961            )  \n Settlements with swap counterparties                                 4,268                \n Free cash flow                                     $                 75,425               \n                                                                                           \n\nInvestor Contact\n\nMatt Buckhalter\nChief Financial Officer \nir@aveanna.com\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/d3896f9e-a6a1-48c1-a8f7-d9ba5d7433d6)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-08-13T11:00:05.061949677Z","server_sent_at_ms":1786618805061},"received_at":"2026-08-13T11:00:05.214Z","source_url":"https://www.globenewswire.com/news-release/2026/08/13/3344373/0/en/aveanna-healthcare-holdings-announces-second-quarter-financial-results-and-revised-2026-guidance.html"},"analysis":{"id":"106857","press_release_id":"117866","analysis_json":{"industry":{"label":"Health Care Providers & Services","sector":"Health Care"},"redFlags":["Gross margin decreased to 32.6% from 35.8% in the prior year period","Total indebtedness remains high at $1.48 billion"],"eventType":"earnings","narrative":"Aveanna reported Q2 revenue of $670.5 million, up 13.7% year-over-year, driven by organic growth across its three business segments.\n\nNet income increased to $40.3 million, or $0.18 per diluted share, while Adjusted EBITDA rose 8.0% to $95.4 million.\n\nThe company raised its full-year 2026 guidance, projecting revenue greater than $2.68 billion and Adjusted EBITDA exceeding $365 million.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Beat-and-raise quarter with strong top-line growth offsets margin pressure; guidance hike signals confidence."},"keyFigures":{"eps":0.18,"revenue":670500000,"guidance":"FY26 Revenue >$2.68B (raised from $2.63B-$2.65B); Adjusted EBITDA >$365M (raised from $338M-$342M)","revenueYoy":"13.7%","customDimensions":{"net_income":40300000,"gross_margin":"32.6%","free_cash_flow":75400000,"adjusted_ebitda":95400000}},"quotedText":"Our second quarter results demonstrate the momentum across Aveanna and our ability to consistently deliver sustained year-over-year growth.","namedEntities":{"people":[{"name":"Jeff Shaner","role":"CEO"},{"name":"Matt Buckhalter","role":"CFO"}],"products":[],"companies":[{"name":"Aveanna Healthcare Holdings Inc.","ticker":"AVAH"},{"name":"Family First","relationship":"acquired"}],"dollarAmounts":[{"amount":"$670.5 million","context":"Q2 2026 revenue"},{"amount":"$40.3 million","context":"Q2 2026 net income"},{"amount":"$95.4 million","context":"Q2 2026 Adjusted EBITDA"},{"amount":"$2.68 billion","context":"Revised FY26 revenue guidance"},{"amount":"$365 million","context":"Revised FY26 Adjusted EBITDA guidance"},{"amount":"$75.4 million","context":"Six-month free cash flow"}]},"materialImpact":{"score":4,"reasoning":"Double-digit revenue growth (13.7% YoY) and a meaningful raise to full-year 2026 revenue and Adjusted EBITDA guidance demonstrate strong execution, although gross margins contracted year-over-year."},"tickerRelevance":{"others":[],"primary":"AVAH"},"globalImportance":35,"audienceRelevance":25,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"earnings_with_guidance_raise","sectorWeight":"health_care"}},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"bullish","material_impact_score":4,"narrative":"Aveanna reported Q2 revenue of $670.5 million, up 13.7% year-over-year, driven by organic growth across its three business segments.\n\nNet income increased to $40.3 million, or $0.18 per diluted share, while Adjusted EBITDA rose 8.0% to $95.4 million.\n\nThe company raised its full-year 2026 guidance, projecting revenue greater than $2.68 billion and Adjusted EBITDA exceeding $365 million.","key_figures":{"eps":0.18,"revenue":670500000,"guidance":"FY26 Revenue >$2.68B (raised from $2.63B-$2.65B); Adjusted EBITDA >$365M (raised from $338M-$342M)","revenueYoy":"13.7%","customDimensions":{"net_income":40300000,"gross_margin":"32.6%","free_cash_flow":75400000,"adjusted_ebitda":95400000}},"named_entities":{"people":[{"name":"Jeff Shaner","role":"CEO"},{"name":"Matt Buckhalter","role":"CFO"}],"products":[],"companies":[{"name":"Aveanna Healthcare Holdings Inc.","ticker":"AVAH"},{"name":"Family First","relationship":"acquired"}],"dollarAmounts":[{"amount":"$670.5 million","context":"Q2 2026 revenue"},{"amount":"$40.3 million","context":"Q2 2026 net income"},{"amount":"$95.4 million","context":"Q2 2026 Adjusted EBITDA"},{"amount":"$2.68 billion","context":"Revised FY26 revenue guidance"},{"amount":"$365 million","context":"Revised FY26 Adjusted EBITDA guidance"},{"amount":"$75.4 million","context":"Six-month free cash flow"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-13T12:12:11.392Z","global_importance":35,"audience_relevance":25,"importance_components":{"tickerTier":"mid-cap","eventGravity":"earnings_with_guidance_raise","sectorWeight":"health_care"}},"durationMs":351436,"modelName":"glm-4.7"}}