Aveanna Healthcare Holdings 10-Q 季度報告（截至 2026 年 4 月 4 日）

10-Q
 
 
 
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

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 10-Q
 
(Mark One)
 

 
 
 
 
 

 
 ☒

 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

  
For the quarterly period ended April 4, 2026
or
 

 
 
 
 
 

 
 ☐

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

  
For the transition period from ___________ to ___________
Commission File Number: 001-40362
 

 
Aveanna Healthcare Holdings Inc. 
(Exact Name of Registrant as Specified in its Charter)
 
 

 
 
 
 
 

 
 Delaware

 81-4717209

 

 
 ( State or other jurisdiction of
incorporation or organization)

 (I.R.S. Employer
Identification No.)

 

  
400 Interstate North Parkway SE, Atlanta, GA 30339
(Address of principal executive offices) (Zip code)
(770) 441-1580
(Registrant’s telephone number, including area code)
 
Securities registered pursuant to Section 12(b) of the Act: 
 

 
 
 
 
 
 
 
 

 
 Title of each class

  

 Trading
Symbol(s)

  

 Name of each exchange on which registered

 

 
 Common Stock, par value $0.01 per share

  

 AVAH

  

 The Nasdaq Stock Market LLC

 

 
  

  

  

  

  

 

  
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 

 
 
 
 
 
 
 
 
 
 

 
 Large accelerated filer

 

 ☐

 

 Accelerated filer

 

 ☒

 

 
  

  

  

  

 

 
 Non-accelerated filer

 

 ☐

 

 Smaller reporting company

 

 ☐

 

 
  

  

  

  

  

  

  

 

 
  

  

  

  

 Emerging growth company

  

 ☐

 

  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of May 8, 2026, the registrant had 217,755,203 shares of common stock, $0.01 par value per share, outstanding.
 
 

  
 

 
 

 Table of Contents
 

 
 
 
 
 
 

 
  

  

  

 

 
  

 

 Page

 

 
  

  

  

 

 
  

 Cautionary Note Regarding Forward-Looking Statements

 1

 

 
  

  

  

 

 
  

 PART I. FINANCIAL INFORMATION

  

 

 
 Item 1.

 Financial Statements

  

 

 
  

 Consolidated Balance Sheets as of April 4, 2026 (Unaudited) and January 3, 2026

 2

 

 
 

 Consolidated Statements of Operations for the Three-Month Periods Ended April 4, 2026 and March 29, 2025 (Unaudited)

 3

 

 
 

 Consolidated Statements of Stockholders’ Equity (Deficit) for the Three-Month Periods Ended April 4, 2026 and March 29, 2025 (Unaudited)

 4

 

 
 

 Consolidated Statements of Cash Flows for the Three-Month Periods Ended April 4, 2026 and March 29, 2025 (Unaudited)

 5

 

 
 

 Notes to Consolidated Financial Statements (Unaudited)

 6

 

 
 Item 2.

 Management’s Discussion and Analysis of Financial Condition and Results of Operations

 17

 

 
 Item 3.

 Quantitative and Qualitative Disclosures About Market Risk

 30

 

 
 Item 4.

 Controls and Procedures

 30

 

 
  

  

  

 

 
  

 PART II. OTHER INFORMATION

  

 

 
 Item 1.

 Legal Proceedings

 32

 

 
 Item 1A.

 Risk Factors

 32

 

 
 Item 2.

 Unregistered Sales of Equity Securities and Use of Proceeds

 32

 

 
 Item 3.

 Defaults Upon Senior Securities

 32

 

 
 Item 4.

 Mine Safety Disclosures

 32

 

 
 Item 5.

 Other Information

 32

 

 
 Item 6.

 Exhibits

 32

 

 
  

 SIGNATURES

  

 

 
  

 Signatures

 33

 

 
  

  

 

  
 
 

  
 

 
  

 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations and financial condition, business strategy, and plans and objectives of management for future operations, are forward-looking statements. In some cases, forward-looking statements may be identified by words such as “anticipate,” “believe,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” “predict,” “project,” “should,” “will,” “would,” or the negative of these terms or other similar expressions. 
These statements are based on certain assumptions that we have made considering our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate in these circumstances. As you read and consider this Quarterly Report on Form 10-Q, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions. Many factors could affect our actual results and could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements contained in this Quarterly Report on Form 10-Q are subject to risks that may cause actual results to differ materially from those expressed or implied in the forward-looking statements, including, but not limited to, the following risks:
▪intense competition among home health, hospice and durable medical equipment companies; 

▪our ability to maintain relationships with existing patient referral sources; 

▪our ability to have services funded from third-party payers, including Medicare, Medicaid and private health insurance companies, including as a result of changes to Medicaid to be implemented under the One Big Beautiful Bill Act;

▪changes to Medicare or Medicaid rates or methods governing Medicare or Medicaid payments, and the implementation of alternative payment models, including but not limited to Medicare Advantage, Managed Care Organization, managed Medicaid, and other forms of managed care; 

▪any downward pressure on reimbursement resulting from further proliferation of Medicare Advantage plans;

▪our limited ability to control reimbursement rates received for our services; 

▪delays in collection or non-collection of our patient accounts receivable, particularly during the business integration process, or when transitioning between systems associated with clinical data collection and submission, as well as billing and collection systems;

▪healthcare reform and other regulations, including risks related to the final rule issued for the home health prospective payment system by Centers for Medicare & Medicaid Services;

▪changes in the case-mix of our patients, as well as payer mix and payment methodologies; 

▪any reduction in net reimbursement if we do not effectively implement value-based care programs; 

▪the possibility that our business, financial condition and results of operations may be materially adversely affected by public health emergencies, such as a pandemic or other infectious disease outbreak;

▪shortages in qualified employees and management and competition for qualified personnel;

▪any failure to maintain the security and functionality of our information systems or to defend against or otherwise prevent a cybersecurity attack or breach; 

▪our substantial indebtedness, which increases our vulnerability to general adverse economic and industry conditions and may limit our ability to pursue strategic alternatives and react to changes in our business and industry; 

▪our ability to identify, obtain financing for, acquire and integrate strategic and accretive businesses or assets, including in connection with our pending acquisition of Family First Holding, LLC; 

▪risks related to legal proceedings, claims and governmental inquiries given that the nature of our business exposes us to various liability claims, which may exceed the level of our insurance coverage; and 

▪the other risks described under Part II, Item 1A, “Risk Factors” in this Quarterly Report on Form 10-Q and under the heading “Risk Factors” contained in our Annual Report on Form 10-K filed on March 19, 2026. 

Additionally, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time, and it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Considering these risks, uncertainties and assumptions, the forward-looking statements contained in this Quarterly Report on Form 10-Q might not prove to be accurate and you should not place undue reliance upon them or otherwise rely upon them as predictions of future events. All forward-looking statements made by us in this Quarterly Report on Form 10-Q are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. We intend that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.

 1
 

 
  

 
 
 
 
 
 
 
 
 
 
 

 
 AVEANNA HEALTHCARE HOLDINGS INC. AND SUBSIDIARIES

  

 

 
 CONSOLIDATED BALANCE SHEETS

  

 

 
 (Amounts in thousands, except share and per share data)

  

 

 
  

 As of

  

 

 
  

 April 4, 2026

  

 January 3, 2026

  

 

 
  

 (Unaudited)

  

  

  

 

 
 ASSETS

  

 

 
 Current assets:

  

  

  

  

 

 
 Cash and cash equivalents

 $

 189,274

  

 $

 193,260

  

 

 
 Patient accounts receivable

  

 332,685

  

  

 313,358

  

 

 
 Receivables under insured programs

  

 2,915

  

  

 2,758

  

 

 
 Prepaid expenses

  

 23,797

  

  

 20,940

  

 

 
 Other current assets

  

 26,631

  

  

 29,916

  

 

 
      Total current assets

  

 575,302

  

  

 560,232

  

 

 
 Property and equipment, net

  

 17,859

  

  

 16,653

  

 

 
 Operating lease right of use assets

  

 35,997

  

  

 39,034

  

 

 
 Goodwill

  

 1,121,042

  

  

 1,121,042

  

 

 
 Intangible assets, net

  

 91,929

  

  

 92,559

  

 

 
 Receivables under insured programs

  

 30,431

  

  

 28,806

  

 

 
 Deferred income taxes

  

 137,140

  

  

 137,140

  

 

 
 Other long-term assets

  

 12,348

  

  

 16,913

  

 

 
      Total assets

 $

 2,022,048

  

 $

 2,012,379

  

 

 
  

  

  

  

  

 

 
 LIABILITIES, DEFERRED RESTRICTED STOCK UNITS, AND STOCKHOLDERS’ EQUITY

  

 

 
 Current liabilities:

  

  

  

  

 

 
 Accounts payable and other accrued liabilities

 $

 34,357

  

 $

 31,967

  

 

 
 Accrued payroll and employee benefits

  

 77,361

  

  

 108,085

  

 

 
 Current portion of insurance reserves - insured programs

  

 2,915

  

  

 2,758

  

 

 
 Current portion of insurance reserves

  

 18,152

  

  

 17,154

  

 

 
 Securitization obligations

  

 165,000

  

  

 165,000

  

 

 
 Current portion of long-term obligations

  

 13,250

  

  

 13,250

  

 

 
 Current portion of operating lease liabilities

  

 15,451

  

  

 16,012

  

 

 
 Other current liabilities

  

 63,947

  

  

 70,230

  

 

 
      Total current liabilities

  

 390,433

  

  

 424,456

  

 

 
 Revolving credit facility

  

 -

  

  

 -

  

 

 
 Long-term obligations, less current portion

  

 1,283,977

  

  

 1,286,652

  

 

 
 Long-term insurance reserves - insured programs

  

 30,431

  

  

 28,806

  

 

 
 Long-term insurance reserves

  

 51,806

  

  

 49,061

  

 

 
 Operating lease liabilities, less current portion

  

 24,619

  

  

 27,413

  

 

 
 Other long-term liabilities

  

 -

  

  

 800

  

 

 
      Total liabilities

  

 1,781,266

  

  

 1,817,188

  

 

 
 Commitments and contingencies (Note 11)

  

  

  

  

 

 
 Deferred restricted stock units

  

 730

  

  

 730

  

 

 
 Stockholders’ equity:

  

  

  

  

 

 
 Preferred stock, $0.01 par value as of April 4, 2026 and January 3, 2026

  

  

  

  

 

 
 5,000,000 shares authorized; none issued or outstanding

  

 -

  

  

 -

  

 

 
 Common stock, $0.01 par value, 1,000,000,000 shares authorized;

  

  

  

  

 

 
 217,510,046 and 210,996,359 issued and outstanding, respectively

  

 2,175

  

  

 2,110

  

 

 
 Additional paid-in capital

  

 1,353,353

  

  

 1,349,480

  

 

 
 Accumulated deficit

  

 (1,115,476

 )

  

 (1,157,129

 )

 

 
      Total stockholders’ equity

  

 240,052

  

  

 194,461

  

 

 
      Total liabilities, deferred restricted stock units, and stockholders’ equity

 $

 2,022,048

  

 $

 2,012,379

  

 

  
The accompanying notes are an integral part of these unaudited consolidated financial statements.

 2
 

 
  

 
 
 
 
 
 
 
 
 
 
 

 
 AVEANNA HEALTHCARE HOLDINGS INC. AND SUBSIDIARIES

  

 

 
 CONSOLIDATED STATEMENTS OF OPERATIONS

  

 

 
 (Amounts in thousands, except per share data)

  

 

 
 (Unaudited)

  

 

 
  

  

  

  

  

 

 
  

 For the three-month periods ended

  

 

 
  

 April 4, 2026

  

 March 29, 2025

  

 

 
 Revenue

 $

 647,915

  

 $

 559,224

  

 

 
 Cost of revenue, excluding depreciation and amortization

  

 442,487

  

  

 375,666

  

 

 
 Branch and regional administrative expenses

  

 95,792

  

  

 91,387

  

 

 
 Corporate expenses

  

 34,156

  

  

 37,505

  

 

 
 Depreciation and amortization

  

 3,044

  

  

 2,594

  

 

 
 Acquisition-related costs

  

 3,110

  

  

 106

  

 

 
 Other operating expense

  

 -

  

  

 165

  

 

 
 Operating income

  

 69,326

  

  

 51,801

  

 

 
 Interest income

  

 1,658

  

  

 132

  

 

 
 Interest expense

  

 (29,158

 )

  

 (36,335

 )

 

 
 Other income (expense)

  

 3,149

  

  

 (5,450

 )

 

 
 Income before income taxes

  

 44,975

  

  

 10,148

  

 

 
 Income tax expense

  

 (3,322

 )

  

 (4,955

 )

 

 
 Net income

 $

 41,653

  

 $

 5,193

  

 

 
 Net income per share:

  

  

  

  

 

 
 Net income per share, basic

 $

 0.19

  

 $

 0.03

  

 

 
 Weighted average shares of common stock outstanding, basic

  

 214,595

  

  

 194,671

  

 

 
 Net income per share, diluted

 $

 0.19

  

 $

 0.03

  

 

 
 Weighted average shares of common stock outstanding, diluted

  

 222,099

  

  

 206,238

  

 

  
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these unaudited consolidated financial statements.

 3
 

 
  

  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 AVEANNA HEALTHCARE HOLDINGS INC. AND SUBSIDIARIES

  

 

 
 CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

  

 

 
 (Amounts in thousands, except share data)

  

 

 
 (Unaudited)

  

 

 
  

  

  

  

  

  

  

  

  

  

  

 

 
  

 For the three-month period ended April 4, 2026

  

 

 
  

 Common Stock

  

 Additional Paid-in

  

 Accumulated

  

 Total Stockholders’

  

 

 
  

 Shares

  

 Amount

  

 Capital

  

 Deficit

  

 Equity

  

 

 
 Balance, January 3, 2026

  

 210,996,359

  

 $

 2,110

  

 $

 1,349,480

  

 $

 (1,157,129

 )

 $

 194,461

  

 

 
 Issuance of vested restricted shares

  

 6,458,687

  

  

 64

  

  

 (542

 )

  

 -

  

  

 (478

 )

 

 
 Stock option exercise

  

 55,000

  

  

 1

  

  

 268

  

  

  

  

 269

  

 

 
 Non-cash share-based compensation

  

 -

  

  

 -

  

  

 4,147

  

  

 -

  

  

 4,147

  

 

 
 Net income

  

 -

  

  

 -

  

  

 -

  

  

 41,653

  

  

 41,653

  

 

 
 Balance, April 4, 2026

  

 217,510,046

  

 $

 2,175

  

 $

 1,353,353

  

 $

 (1,115,476

 )

 $

 240,052

  

 

 
  

  

  

  

  

  

  

  

  

  

  

 

 
  

  

  

  

  

  

  

  

  

  

  

 

 
  

 For the three-month period ended March 29, 2025

  

 

 
  

 Common Stock

  

 Additional Paid-in

  

 Accumulated

  

 Total Stockholders’

  

 

 
  

 Shares

  

 Amount

  

 Capital

  

 Deficit

  

 Deficit

  

 

 
 Balance, December 28, 2024

  

 193,225,177

  

 $

 1,932

  

 $

 1,256,680

  

 $

 (1,382,163

 )

 $

 (123,551

 )

 

 
 Issuance of vested restricted shares

  

 1,021,016

  

  

 10

  

  

 (1,687

 )

  

 -

  

  

 (1,677

 )

 

 
 Employee stock purchase plan

  

 847,673

  

  

 9

  

  

 1,782

  

  

 -

  

  

 1,791

  

 

 
 Non-cash share-based compensation

  

 -

  

  

 -

  

  

 18,114

  

  

 -

  

  

 18,114

  

 

 
 Net income

  

 -

  

  

 -

  

  

 -

  

  

 5,193

  

  

 5,193

  

 

 
 Balance, March 29, 2025

  

 195,093,866

  

 $

 1,951

  

 $

 1,274,889

  

 $

 (1,376,970

 )

 $

 (100,130

 )

 

  
The accompanying notes are an integral part of these unaudited consolidated financial statements.

 4
 

 
  

 
 
 
 
 
 
 
 
 
 
 
 
 

 
 AVEANNA HEALTHCARE HOLDINGS INC. AND SUBSIDIARIES

 

 
 CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 
 (Amounts in thousands)

 

 
 (Unaudited)

 

 
  

  

  

  

  

  

  

 

 
  

 For the three-month periods ended

 

 
  

 April 4, 2026

  

  

 March 29, 2025

  

  

 

 
 Cash Flows From Operating Activities:

  

  

  

  

  

  

 

 
 Net income

 $

 41,653

  

  

 $

 5,193

  

  

 

 
 Adjustments to reconcile net income to net cash from operating activities:

  

  

  

  

  

  

 

 
 Depreciation and amortization

  

 3,044

  

  

  

 2,594

  

  

 

 
 Amortization of deferred debt issuance costs

  

 965

  

  

  

 1,646

  

  

 

 
 Reduction in carrying amount of operating lease right of use assets

  

 4,607

  

  

  

 4,352

  

  

 

 
 Non-cash share-based compensation

  

 4,147

  

  

  

 10,996

  

  

 

 
 (Gain) loss on disposal or impairment of licenses, property and equipment, and software

  

 (24

 )

  

  

 166

  

  

 

 
 Fair value adjustments on interest rate derivatives

  

 647

  

  

  

 11,602

  

  

 

 
 Deferred income taxes

  

 -

  

  

  

 612

  

  

 

 
 Changes in operating assets and liabilities, net of impact of acquisitions:

  

  

  

  

  

  

 

 
 Patient accounts receivable

  

 (19,327

 )

  

  

 (29,641

 )

  

 

 
 Prepaid expenses

  

 (2,857

 )

  

  

 (2,433

 )

  

 

 
 Other current and long-term assets

  

 4,726

  

  

  

 (646

 )

  

 

 
 Accounts payable and other accrued liabilities

  

 2,545

  

  

  

 (5,972

 )

  

 

 
 Accrued payroll and employee benefits

  

 (30,724

 )

  

  

 (1,752

 )

  

 

 
 Insurance reserves

  

 3,743

  

  

  

 1,873

  

  

 

 
 Operating lease liabilities

  

 (4,925

 )

  

  

 (4,771

 )

  

 

 
 Other current and long-term liabilities

  

 (3,871

 )

  

  

 (2,451

 )

  

 

 
 Net cash provided by (used in) operating activities

  

 4,349

  

  

  

 (8,632

 )

  

 

 
 Cash Flows From Investing Activities:

  

  

  

  

  

  

 

 
 Purchases of property and equipment, and software

  

 (4,557

 )

  

  

 (2,348

 )

  

 

 
 Net cash used in investing activities

  

 (4,557

 )

  

  

 (2,348

 )

  

 

 
 Cash Flows From Financing Activities:

  

  

  

  

  

  

 

 
 Payments for shares withheld to cover employee taxes on vesting of restricted stock

  

 (478

 )

  

  

 (1,677

 )

  

 

 
 Proceeds from exercise of options

  

 269

  

  

  

 -

  

  

 

 
 Proceeds from employee stock purchase plan

  

 -

  

  

  

 1,791

  

  

 

 
 Principal payments on term loans

  

 (3,312

 )

  

  

 (2,300

 )

  

 

 
 Principal payments on notes payable

  

 (2,406

 )

  

  

 (2,763

 )

  

 

 
 Settlements with interest rate swap counterparties

  

 2,149

  

  

  

 3,135

  

  

 

 
 Net cash used in financing activities

  

 (3,778

 )

  

  

 (1,814

 )

  

 

 
 Net change in cash and cash equivalents

  

 (3,986

 )

  

  

 (12,794

 )

  

 

 
 Cash and cash equivalents at beginning of period

  

 193,260

  

  

  

 84,288

  

  

 

 
 Cash and cash equivalents at end of period

 $

 189,274

  

  

 $

 71,494

  

  

 

  

 
 
 
 
 
 
 
 
 
 
 
 

 
 Supplemental Disclosures of Cash Flow Information:

  

  

  

  

  

  

 

 
 Cash paid for interest

 $

 27,868

  

  

 $

 34,911

  

  

 

 
 Cash paid for income taxes, net of refunds received

 $

 (11

 )

  

 $

 (460

 )

  

 

  
The accompanying notes are an integral part of these unaudited consolidated financial statements.

 5
 

 
 AVEANNA HEALTHCARE HOLDINGS INC. AND SUBSIDIARIES 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 

 1. DESCRIPTION OF BUSINESS 
Aveanna Healthcare Holdings Inc. (together with its consolidated subsidiaries, the “Company”) is headquartered in Atlanta, Georgia and has locations in 39 states with concentrations in Texas, Pennsylvania, and California. The Company provides a broad range of pediatric and adult healthcare services, primarily focused on care in the home, including nursing, hospice, rehabilitation, occupational nursing in schools, therapy, and day treatment center services for medically complex and chronically ill children and adults, as well as delivery of enteral nutrition and other products to patients. In addition, the Company provides respite healthcare services, which are temporary care provider services provided in relief of the patient’s normal caregiver. The Company’s services are designed to provide a high quality, lower cost alternative to prolonged hospitalization.

 
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
Principles of Consolidation
 
The accompanying interim unaudited consolidated financial statements include the accounts of Aveanna Healthcare Holdings Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in the interim unaudited consolidated financial statements, and business combinations accounted for as purchases have been included in the interim unaudited consolidated financial statements from their respective dates of acquisition.

 
Basis of Presentation
 
The accompanying interim consolidated financial statements are unaudited and have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, these interim unaudited consolidated financial statements do not include all the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, these interim unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the Company’s financial position as of April 4, 2026 and the results of operations for the three-month periods ended April 4, 2026 and March 29, 2025, respectively. The results reported in these interim unaudited consolidated financial statements should not be regarded as indicative of results that may be expected for any future period or the year ending January 2, 2027. These interim unaudited consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes for the fiscal year ended January 3, 2026 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 19, 2026.
 
Our fiscal year ends on the Saturday that is closest to December 31 of a given year, resulting in either a 52 or 53-week fiscal year. The interim unaudited consolidated balance sheets reflect the accounts of the Company as of April 4, 2026 and January 3, 2026. For the three-month periods ended April 4, 2026 and March 29, 2025, the interim unaudited consolidated statements of operations, stockholders' equity (deficit), and cash flows reflect the accounts of the Company from January 4, 2026 through April 4, 2026 and December 29, 2024 through March 29, 2025, respectively, each of which includes 13 weeks.

 
Use of Estimates
 
The Company’s accounting and reporting policies conform with U.S. GAAP. In preparing the interim unaudited consolidated financial statements, the Company is required to make estimates and assumptions that impact the amounts reported in these interim unaudited consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates.

 
Recently Issued Accounting Pronouncements
 
In November 2024, the FASB issued ASU 2024-03, Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires public entities to disclose additional information that disaggregates certain expense captions into specified categories in the Notes to the consolidated financial statements. In January 2025, the FASB issued ASU 2025-01, Expense Disaggregation Disclosures (Topic 220): Clarifying the Effective Date. The new standard clarifies that ASU 2024-03 is required to be adopted in the annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The disclosure updates are required to be applied prospectively with the option for retrospective application. The Company is currently evaluating the impact the amended guidance will have on its disclosures.

 

 6
 

 
 AVEANNA HEALTHCARE HOLDINGS INC. AND SUBSIDIARIES 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 

 3. REVENUE
The Company evaluates the nature, amount, timing and uncertainty of revenue and cash flows using the five-step process. The Company uses a portfolio approach to group contracts with similar characteristics and analyze historical cash collection trends.
Revenue is primarily derived from (i) pediatric healthcare services provided to patients, including private duty nursing and therapy services; (ii) adult home health and hospice services (collectively “patient revenue”); and (iii) the delivery of enteral nutrition and other products to patients (“product revenue”). The services provided by the Company have no fixed duration and can be terminated by the patient or the facility at any time; therefore, each service provided is its own stand-alone contract. Incremental costs of obtaining a contract are expensed as incurred due to the short-term nature of the contracts.
Services ordered by a healthcare provider in an episode of care are not separately identifiable and therefore have been combined into a single performance obligation for each contract. The Company recognizes revenue as its performance obligations are completed. For patient revenue, the performance obligation is satisfied over time as the customer simultaneously receives and consumes the benefits of the healthcare services provided. For product revenue, the performance obligation is satisfied at the point in time of delivery of the product to the patient. The Company recognizes patient revenue equally over the number of treatments provided in a single episode of care. Typically, patients and third-party payers are billed within several days of the service being performed, and payments are due based on contract terms.
The Company’s lines of business are generally classified into the following categories: private duty services; home health and hospice; and medical solutions.
Private Duty Services (“PDS”). The PDS business includes a broad range of pediatric and adult healthcare services, including private duty skilled nursing, non-clinical services, which include support services and personal care services, pediatric therapy services, rehabilitation services, and nursing services in schools and pediatric day healthcare centers. 
Home Health & Hospice (“HHH”). The HHH business provides home health, hospice, and personal care services to predominately elderly patients. 
Medical Solutions (“MS”). The MS business includes the delivery of enteral nutrition and other products to patients.
For the PDS, HHH, and MS businesses, the Company receives payments from the following sources for services rendered: (i) state governments under their respective Medicaid programs (“Medicaid”); (ii) Managed Care providers of state government Medicaid programs (“Medicaid MCO”); (iii) commercial insurers; (iv) other government programs including Medicare, Tricare and ChampVA (collectively, “Medicare”); and (v) individual patients. As the period between the time of service and time of payment is one year or less, the Company does not adjust for the effects of a significant financing component.
Most contracts contain variable consideration; however, it is unlikely that a significant reversal of revenue will occur when the uncertainty is resolved, and therefore, the Company has included the variable consideration in the estimated transaction price. The Company determines the transaction price based on established billing rates reduced by contractual adjustments provided to third-party payers and by implicit price concessions which the Company estimates based on its historical collection experience. Management estimates the transaction price on a payer-specific basis given its interpretation of the applicable regulations or contract terms. Updated regulations and contract negotiations occur frequently, necessitating regular review and assessment by management. There were no material revenue adjustments recognized from performance obligations satisfied or partially satisfied in previous periods for the three-month periods ended April 4, 2026 or March 29, 2025, respectively.
As of April 4, 2026 and January 3, 2026, estimated contractual adjustments and implicit price concessions of $105.1 million and $106.5 million, respectively, were recorded as reductions to patient accounts receivable balances to arrive at the estimated collectible revenue and patient accounts receivable. Subsequent changes resulting from a patient’s ability to pay are recorded as bad debt expense, which is included as a component of operating expenses in the consolidated statements of operations. The Company did not record any bad debt expense for the three-month periods ended April 4, 2026 or March 29, 2025, respectively.
The following table presents revenue by payer type as a percentage of total revenue for the three-month periods ended April 4, 2026 and March 29, 2025, respectively:
 

 7
 

 
 AVEANNA HEALTHCARE HOLDINGS INC. AND SUBSIDIARIES 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 

 
 
 
 
 
 
 
 
 
 
 

 
  

 For the three-month periods ended

  

 

 
  

 April 4, 2026

  

 March 29, 2025

  

 

 
 Medicaid MCO

  

 59.2

 %

  

 58.5

 %

 

 
 Medicaid

  

 21.8

 %

  

 22.8

 %

 

 
 Commercial

  

 8.9

 %

  

 8.8

 %

 

 
 Medicare

  

 9.9

 %

  

 9.8

 %

 

 
 Self-pay

  

 0.2

 %

  

 0.1

 %

 

 
 Total revenue

  

 100.0

 %

  

 100.0

 %

 

 

 
4. ACQUISITION
 
Pending Acquisition
 
On March 9, 2026, Pediatric Services of America, LLC, a subsidiary of the Company, entered into an Equity Interest Purchase Agreement to acquire 100% of the equity interests in Family First Holding, LLC (“Family First”) for a purchase price of $175.5 million, subject to customary adjustments for working capital and other items. Family First Holding, LLC provides pediatric home care across seven states including Florida and Texas. The transaction is expected to close in the second fiscal quarter of 2026, subject to, among other things, customary closing conditions and the absence of any law or governmental order preventing the transaction. The Company intends to fund the transaction with a combination of cash on hand and the Securitization Facility (as defined below). The Company incurred $3.1 million in acquisition-related costs for the three-month period ended April 4, 2026, primarily related to the pending acquisition.

 
5. LONG-TERM OBLIGATIONS
Long-term obligations consisted of the following as of April 4, 2026 and January 3, 2026, respectively (dollar amounts in thousands):

 
 
 
 
 
 
 
 
 
 
 
 
 

 
 Instrument

 Stated
Maturity
Date

 Contractual Interest Rate as of 
April 4, 2026

 Interest Rate
as of 
April 4, 2026

 April 4, 2026

  

 January 3, 2026

  

 

 
 2025 Term Loans (1)

 09/2032

 S + 3.75%

 7.42%

 $

 1,318,375

  

 $

 1,321,687

  

 

 
 2025 Refinancing Revolving Credit Facility (1)

 09/2030

 S + 3.75%

 7.42%

  

 -

  

  

 -

  

 

 
 Total principal amount of long-term obligations

  

  

  

  

 1,318,375

  

  

 1,321,687

  

 

 
 Less: unamortized debt issuance costs

  

  

  

  

 (21,148

 )

  

 (21,785

 )

 

 
 Total amount of long-term obligations, net of unamortized debt issuance costs

  

  

  

  

 1,297,227

  

  

 1,299,902

  

 

 
 Less: current portion of long-term obligations

  

  

  

  

 (13,250

 )

  

 (13,250

 )

 

 
 Total amount of long-term obligations, net of unamortized debt issuance costs, less current portion

  

  

  

 $

 1,283,977

  

 $

 1,286,652

  

 

 
 (1) S = One-month SOFR

  

  

  

  

  

  

  

 

 
 
On September 17, 2025, Aveanna Healthcare LLC (the “Borrower”), a wholly owned subsidiary of the Company, entered into the fourth joinder and twelfth amendment (the “Refinancing Amendment”) to its First Lien Credit Agreement, dated as of March 16, 2017. The Refinancing Amendment provided for, among other things, incremental revolving loan commitments in an aggregate principal amount of $79.7 million, resulting in total aggregate revolving loan commitments of $250.0 million (the “2025 Refinancing Revolving Credit Facility”), a portion of which may be used for the issuance of letters of credit and swingline loans. The Refinancing Amendment additionally provides for the refinancing of the term loans previously outstanding (“2025 Refinancing Term Loans”) under the existing term loan facility (the “2025 Refinancing Term Facility”) and an incremental senior secured term loan facility, with aggregate commitments increased by $439.0 million (the “2025 Incremental Term Loans”). Combined, the 2025 Refinancing Term Loans and 2025 Incremental Term Loans aggregate to a total principal balance of $1,325.0 million (the “2025 Term Loans”).
 

 8
 

 
 AVEANNA HEALTHCARE HOLDINGS INC. AND SUBSIDIARIES 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 

 The 2025 Term Loans under the Amended Credit Agreement bear interest at a rate equal to, at the election of the Borrower, Term SOFR (as defined in the Amended Credit Agreement) plus an applicable margin equal to 3.75% per annum or an alternative base rate (“ABR”) plus an applicable margin equal to 2.75% per annum. Loans under the 2025 Refinancing Revolving Credit Facility bear interest at a rate equal to, at the election of the Borrower, Term SOFR, plus an applicable margin equal to 3.75% per annum or a base rate plus an applicable margin equal to 2.75% per annum, so long as the Consolidated First Lien Net Leverage Ratio (as defined in the Amended Credit Agreement) is greater than 3.90 to 1.00 as of the last day of the preceding fiscal quarter, subject to (a) a decrease of 0.25% in the event that, and for so long as, the Consolidated First Lien Net Leverage Ratio is less than or equal to 3.90 to 1.00 and greater than 3.40 to 1.00 as of the last day of the preceding fiscal quarter and (b) a decrease of 0.50% in the event that, and for so long as, the Consolidated First Lien Net Leverage Ratio is less than or equal to 3.40 to 1.00 as of the last day of the preceding fiscal quarter. As of April 4, 2026, the principal amount of the 2025 Term Loans and borrowings under the 2025 Refinancing Revolving Credit Facility each accrued interest at a rate of 7.42%. 
 
Debt issuance costs related to the term loans are recorded as a direct deduction from the carrying amount of the debt. The balances for debt issuance costs related to the term loans as of April 4, 2026 and January 3, 2026 were $21.1 million and $21.8 million, respectively. Debt issuance costs related to the 2025 Refinancing Revolving Credit Facility are recorded within other long-term assets. The balances for debt issuance costs related to the 2025 Refinancing Revolving Credit Facility as of April 4, 2026 and January 3, 2026 were $3.0 million and $3.2 million, respectively. The Company recognized interest expense related to the amortization of debt issuance costs of $0.8 million for the three-month period ended April 4, 2026, and $1.5 million for the three-month period ended March 29, 2025. 
Issued letters of credit as of April 4, 2026 and January 3, 2026 were both $24.5 million. There were no swingline loans outstanding as of April 4, 2026 or January 3, 2026. Borrowing capacity under the Company's 2025 Refinancing Revolving Credit Facility was approximately $225.5 million as of April 4, 2026. Available borrowing capacity under the 2025 Refinancing Revolving Credit Facility is subject to a maintenance leverage covenant that becomes effective if more than 40% of the total commitment is utilized. 
The fair value of the Company's long-term obligations was estimated using market-observable inputs from the Company’s comparable peers with public debt, includi