Healthcare Services Group (NASDAQ:HCSG) Posts Earnings Results, Beats Expectations By $0.21 EPS

Healthcare Services Group (NASDAQ:HCSG) posted its quarterly earnings results on Wednesday. The business services provider reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.23 by $0.21, FiscalAI reports. The business had revenue of $466.68 million for the quarter, compared to analyst estimates of $467.24 million. Healthcare Services Group had a return on equity of 16.16% and a net margin of 3.21%.The business’s revenue was up 6.6% compared to the same quarter last year. During the same period in the prior year, the company posted $0.16 EPS.

Here are the key takeaways from Healthcare Services Group’s conference call:

• Company exceeded 2025 expectations with revenue of $466.7M (+6.6% YoY), strong free cash flow, disciplined cost management, and its campus division surpassing $100 million in revenue.
• Board completed a $50M buyback early and authorized an additional repurchase program to acquire $75 million of common stock over the next 12 months, citing a strong balance sheet and attractive valuation.
• 2026 targets include mid-single-digit revenue growth (Q1 revenue guide $460–$465M), a cost-of-services goal around 86%, SG&A targeted at 9.5%–10.5%, and an expected effective tax rate of ~25%.
• Contract upgrades to service-day-based billing have improved margin visibility and collections (lower DSO), but introduced a Q4-to-Q1 day-count dynamic that can affect quarterly revenue (the Q4→Q1 day difference equated to >$10M on the Q4 base).
• 2025 results benefited from an $8.3M tax/treatment of ERC receipts (a one-time benefit) and future ERC proceeds are uncertain, and management noted that growth upside is execution-limited by the company’s ability to hire, develop, and retain new management candidates.

Healthcare Services Group Stock Up 0.3%

NASDAQ HCSG traded up $0.06 on Friday, reaching $21.40. 178,030 shares of the stock traded hands, compared to its average volume of 747,367. Healthcare Services Group has a 12 month low of $9.13 and a 12 month high of $22.98. The company has a market cap of $1.51 billion, a price-to-earnings ratio of 26.13 and a beta of 0.74. The firm’s fifty day simple moving average is $19.20 and its 200 day simple moving average is $17.38.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd bought a new stake in Healthcare Services Group in the fourth quarter worth about $33,000. EverSource Wealth Advisors LLC lifted its stake in Healthcare Services Group by 163.4% during the second quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the business services provider’s stock valued at $33,000 after purchasing an additional 1,356 shares during the last quarter. Tower Research Capital LLC TRC grew its position in Healthcare Services Group by 600.8% in the second quarter. Tower Research Capital LLC TRC now owns 10,259 shares of the business services provider’s stock worth $154,000 after buying an additional 8,795 shares during the last quarter. PharVision Advisers LLC acquired a new stake in shares of Healthcare Services Group during the 3rd quarter valued at $176,000. Finally, Caxton Associates LLP acquired a new stake in shares of Healthcare Services Group during the 2nd quarter valued at $163,000. Institutional investors own 97.97% of the company’s stock.

Wall Street Analysts Forecast Growth

HCSG has been the topic of a number of recent research reports. Benchmark restated a “buy” rating on shares of Healthcare Services Group in a research report on Thursday. Robert W. Baird set a $23.00 target price on Healthcare Services Group in a report on Thursday. UBS Group set a $25.00 price target on Healthcare Services Group and gave the stock a “buy” rating in a research report on Thursday. Macquarie Infrastructure restated a “buy” rating on shares of Healthcare Services Group in a research report on Wednesday, November 26th. Finally, BMO Capital Markets restated a “market perform” rating and set a $22.00 price objective on shares of Healthcare Services Group in a research note on Thursday. Three equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $22.00.

About Healthcare Services Group

Healthcare Services Group, Inc (NASDAQ: HCSG) is a leading provider of support services to healthcare facilities across the United States. The company specializes in environmental services, including housekeeping and sanitation, as well as linen and laundry management. In addition, Healthcare Services Group offers dietary and nutrition services, catering to hospitals, skilled nursing facilities, assisted living communities and other long-term care providers.

Founded as a family-owned business in the late 1970s, the company completed its initial public offering in 1997.