Overview

• US healthcare facility services provider's Q1 revenue rose 3.4% yr/yr, slightly beating analyst expectations

• Net income and diluted EPS increased from the prior year

• Company repurchased $24 mln of shares in Q1

Outlook

• Company reiterates 2026 mid-single-digit revenue growth outlook

• Company expects 2026 effective tax rate to be about 25%

Result Drivers

• NEW CLIENT WINS - Co said new client wins contributed to Q1 revenue growth

• HIGH RETENTION RATES - Co said high retention rates supported topline growth in Q1

• OPERATIONAL EXCELLENCE - Co attributed consistent margins to operational performance by field-based teams

Company press release: ID:nBw7D99NKa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Slight Beat*	$462.77 mln	$459.93 mln (6 Analysts)
Q1 EPS		$0.37
Q1 Net Income		$26.06 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Healthcare Services Group Inc is $23.00, about 18.9% above its April 21 closing price of $19.35

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

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