Healthcare Services Group
HCSGNASDAQUSD
- Source valuation snapshot. Not a live recalculation.
- Latest filed annual earnings; price snapshot date unavailable. Not forward P/E.
- Diluted earnings per share from the latest filed annual.
- $25.30 Prior regular-session close from the quote source.
- $25.09–$25.62 Regular-session low and high so far today.
- 390.8K Regular-session shares traded · Nov 11, 4:00 PM ET.
- Not yet confirmed The company has not confirmed its next report date. Reported quarters are available in the chart’s Earnings view.
- $16.78–$27.05 52-week trading low and high returned by the quote source.
Understand the Business
Why the Stock Moved
Period-matched expectations history is not yet available. Current metrics are not a substitute for a historical explanation.
The core investment thesis
Own HCSG if outsourced housekeeping, laundry, and dining remain a must-have cost-control tool for long-term care operators and the company can reprice labor-heavy contracts without losing volume.
HCSG price history
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Investment thesis
What must happen next
Long-term care operators continue outsourcing non-clinical facility services because staffing complexity, compliance burden, and cost control make a national specialist more attractive than running housekeeping, laundry, and dining in-house.StrengtheningMateriality: High
GAAP annual revenue increased to $1.837 billion in FY2025 from $1.716 billion in FY2024. If this holds, HCSG can keep adding and retaining contracted locations; if it breaks, revenue growth becomes dependent on price rather than durable unit demand.
Watch: Large skilled-nursing chains choose to insource housekeeping, laundry, or dining after concluding third-party service fees exceed in-house labor costs.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
GAAP annual revenue increased to $1.837 billion in FY2025 from $1.716 billion in FY2024.
Open source ↗HCSG can manage or reprice wage, food, and supply inflation well enough that scale does not turn into uneconomic labor absorption.HoldingMateriality: High
Estimated GAAP annual gross profit rose to $239.4 million in FY2025 from $228.1 million in FY2024 and $214.7 million in FY2023. This determines whether incremental contracts create profit or simply add low-margin labor and procurement volume.
Watch: State minimum-wage increases, unionization, or persistent frontline labor shortages raise costs faster than HCSG can reprice contracts.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
Estimated GAAP annual gross profit rose to $239.4 million in FY2025 from $228.1 million in FY2024 and $214.7 million in.
Open source ↗Customer financial stress does not prevent HCSG from collecting receivables and converting contracted services into cash.StrengtheningMateriality: Medium
GAAP annual operating cash flow improved to $145.0 million in FY2025 from $30.8 million in FY2024. The business can look profitable while destroying owner value if nursing-home customers delay payment or default.
Watch: A major skilled-nursing customer or regional operator group enters restructuring and delays vendor payments.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
GAAP annual operating cash flow improved to $145.0 million in FY2025 from $30.8 million in FY2024.
Open source ↗The outsourced-services model remains asset-light enough that HCSG can fund growth and working-capital needs without relying on high leverage.StrengtheningMateriality: Medium
Cash and cash equivalents increased to $125.2 million at FY2025 year-end from $56.8 million at FY2024 year-end. A clean balance sheet gives owners resilience in a low-margin business; if growth requires debt or heavy capital intensity, returns compress.
Watch: HCSG must invest in owned laundry, kitchen, or logistics assets to meet customer requirements, making the model more capital-intensive.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
Cash and cash equivalents increased to $125.2 million at FY2025 year-end from $56.8 million at FY2024 year-end.
Open source ↗Contract repricing and cost discipline translate into per-share earnings rather than being absorbed by overhead, labor inflation, or dilution.StrengtheningMateriality: Medium
GAAP annual diluted EPS increased to $0.81 in FY2025 from $0.53 in FY2024. Owners only benefit if service-volume and margin recovery reach per-share results, not just reported revenue.
Watch: Labor and food inflation absorb contract price increases before they reach operating income.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
GAAP annual diluted EPS increased to $0.81 in FY2025 from $0.53 in FY2024.
Open source ↗
Full investment case & evidence
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Original research
Long-term care operators continue outsourcing non-clinical facility services because staffing complexity, compliance burden, and cost control make a national specialist more attractive than running housekeeping, laundry, and dining in-house. If this holds, HCSG can keep adding and retaining contracted locations; if it breaks, revenue growth becomes dependent on price rather than durable unit demand.
HCSG can manage or reprice wage, food, and supply inflation well enough that scale does not turn into uneconomic labor absorption. This determines whether incremental contracts create profit or simply add low-margin labor and procurement volume.
Customer financial stress does not prevent HCSG from collecting receivables and converting contracted services into cash. The business can look profitable while destroying owner value if nursing-home customers delay payment or default.
The outsourced-services model remains asset-light enough that HCSG can fund growth and working-capital needs without relying on high leverage. A clean balance sheet gives owners resilience in a low-margin business; if growth requires debt or heavy capital intensity, returns compress.
Contract repricing and cost discipline translate into per-share earnings rather than being absorbed by overhead, labor inflation, or dilution. Owners only benefit if service-volume and margin recovery reach per-share results, not just reported revenue.
All standing thesis claims
Original report summary
outsourced housekeeping, laundry, and dining remain a must-have cost-control tool for long-term care operators and the company can reprice labor-heavy contracts without losing volume.
Bull case and bear case
Bull case and bear case for Healthcare Services Group
Where the evidence on Healthcare Services Group stands: Holding on the latest evidence (Oct 22, 2026). Of its 5 thesis points, 4 strengthening and 1 holding.
Bull case: what the evidence supports
Long-term care operators continue outsourcing non-clinical facility services because staffing complexity, compliance burden, and cost control make a national specialist more attractive than running housekeeping, laundry, and dining in-house.
HCSG can manage or reprice wage, food, and supply inflation well enough that scale does not turn into uneconomic labor absorption.
Customer financial stress does not prevent HCSG from collecting receivables and converting contracted services into cash.
The outsourced-services model remains asset-light enough that HCSG can fund growth and working-capital needs without relying on high leverage.
Contract repricing and cost discipline translate into per-share earnings rather than being absorbed by overhead, labor inflation, or dilution.
Bear case: what would count against it
Large skilled-nursing chains choose to insource housekeeping, laundry, or dining after concluding third-party service fees exceed in-house labor costs.
State minimum-wage increases, unionization, or persistent frontline labor shortages raise costs faster than HCSG can reprice contracts.
A major skilled-nursing customer or regional operator group enters restructuring and delays vendor payments.
Thesis-Break Engine
Thesis-break watch · Healthcare Services Group
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MARKET + FINANCIAL SNAPSHOT
The numbers behind the thesis
What Changed
- MixedReported results of operations (earnings release).
Healthcare Services Group filed an SEC 8-K on 2026-10-21: Reported results of operations (earnings release). It is a dated development that tests the current thesis.
- MixedEntered a material definitive agreement.
Healthcare Services Group filed an SEC 8-K on 2026-10-07: Entered a material definitive agreement. It is a dated development that tests the current thesis.
- MixedReported results of operations (earnings release).
Healthcare Services Group filed an SEC 8-K on 2026-07-22: Reported results of operations (earnings release). It is a dated development that tests the current thesis.
Risks / falsifiers
What could break the thesis
- Large skilled-nursing chains choose to insource housekeeping, laundry, or dining after concluding third-party service fees exceed in-house labor costs.
- State minimum-wage increases, unionization, or persistent frontline labor shortages raise costs faster than HCSG can reprice contracts.
- A major skilled-nursing customer or regional operator group enters restructuring and delays vendor payments.
- HCSG must invest in owned laundry, kitchen, or logistics assets to meet customer requirements, making the model more capital-intensive.
- Labor and food inflation absorb contract price increases before they reach operating income.
HCSG news
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Financial statements
HCSG income statement
Annual filed results · USD · Oldest to newest. Margins are calculated from the reported figures.