Healthcare Services Group

HCSG · Nasdaq · Industrials · Financials, fiscal 2016 to 2025

HCSG · Last close · November 6, 2026

$24.28

Value Healthcare Services Group yourself

Healthcare Services Group's revenue rose 7.1% to $1.8 billion in fiscal 2025. Its net margin was 3.2%, up from 2.3% a year earlier. Free cash flow was $139 million, up 468.8%. It paid out $62 million in dividends and buybacks, 44% of free cash flow. The diluted share count fell 1.3%.

HEALTHCARE SERVICES GROUP, INC. Latest fiscal year ended December 31, 2025 10-K filed February 13, 2026 · 0000731012-26-000009 Updated November 5, 2026

Revenue

$1.8B

7.1%

Net margin

3.2%

0.9 pts

Net income

$59M

49.6%

Free cash flow

$139M

468.8%

Return on equity

11.7%

3.4 pts

Market cap

$1.7B

Nov 6 close

P/E

16.4x

On $1.48 EPS, 4 qtrs

Net margin is net income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

What Healthcare Services Group does

Healthcare Services Group provides housekeeping, laundry and dietary (food service) management to nursing homes and other healthcare facilities. It provides these services to its customers' facilities, mostly under full-service agreements in which it manages the employees on site and supplies certain supplies.

It has two reportable segments. Environmental Services, which handles cleaning, disinfecting and laundry, accounted for approximately 44.9% of consolidated revenues in 2025. Dietary, which handles food purchasing, meal preparation and dietitian services, represented approximately 55.1%.

Its customers are mainly in healthcare and rely on Medicare and Medicaid payments, so government payment rules affect them. Its agreements are usually cancellable by either side on 30 to 90 days' notice.

Its biggest risks, as it describes them

Inflation and higher labor and supply costs, and relying on a few vendors for supplies.
A few customers that make up a large part of its revenue.
Customers that depend on Medicare and Medicaid payments, which could be cut.
Customers' ability to pay, and the bad debts that can follow.
Service agreements that either side can cancel on short notice.

From Healthcare Services Group's annual report on Form 10-K, filed February 13, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2016 to 2025, earnings per share fell 2.8% a year and net income 3.0% a year, while buybacks cut the share count by 1%.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	185	122	148	107	168
Debt incl. finance leases	—	—	—	—	—
Net debt (negative means net cash)	—	—	—	—	—
Net debt to EBITDA	—	—	—	—	—
Debt to equity	—	—	—	—	—
Interest coverage	48.3x	16.8x	7.8x	9.2x	41.4x
Current ratio	2.9x	2.7x	2.6x	2.9x	3.4x
Quick ratio	2.9x	2.7x	2.6x	2.9x	3.4x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project Healthcare Services Group's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open Healthcare Services Group's projections

What Healthcare Services Group says to expect

Full year: effective tax rateThe Company expects its full-year effective tax rate to be approximately 25.0%.

The company's own words, from its earnings release (Form 8-K, Exhibit 99), filed October 21, 2026. They are its expectations, not ours, and not a forecast or price target from The Filing Desk. Replaced when the next release is out.

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, no insider bought Healthcare Services Group shares on the open market, and 4 insiders sold $3.4 million, $54,158 of it under trading plans set up in advance.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Aug 4, 2026	Andrew KushEVP & Chief Operating Officer	Sold	15,598	$23.24	$362,498	Form 4
Feb 26, 2026	Andrew M BrophySVP & Chief Accounting Officer	Sold plan	2,490	$21.75	$54,158	Form 4
Feb 18, 2026	John Christopher SheaEVP & Chief Admin. Officer	Sold	54,357	$20.41	$1.1 million	Form 4
Feb 18, 2026	Patrick J OrrEVP & Chief Revenue Officer	Sold	45,500	$20.54	$934,570	Form 4
Feb 18, 2026	Patrick J OrrEVP & Chief Revenue Officer	Sold	44,615	$20.53	$915,835	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	—	—	—
Rule of 40	1.2%	4.1%	14.7%
Altman Z''	5.66	6.12	6.99
Accruals ratio	−0.7%	1.1%	−10.8%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Fail	Pass
Cash from operations exceeds net income	Pass	Fail	Pass
Debt fell relative to assets	—	—	—
Current ratio rose	Fail	Pass	Pass
Share count didn't rise	Pass	Pass	Pass
Gross margin rose	Pass	Pass	Fail
Revenue rose relative to assets	Pass	Fail	Pass
F-score	—	—	—

Companies that report no gross profit are scored on the other eight.

Compare

Put Healthcare Services Group side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Healthcare Services Group	FY25	7.1%	—	7.6%	—	—	—
Casella Waste Systems	FY25	17.9%	3.5%	4.6%	1.6%	2.8x	4	Compare
GEO Group	FY25	8.6%	9.8%	−4.8%	6.3%	4.1x	6	Compare
Rollins	FY25	11.0%	19.3%	17.3%	31.0%	0.6x	6	Compare
Veralto	FY25	6.0%	23.2%	18.4%	28.1%	0.5x	6	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	1,563	1,861	2,003	1,841	1,760	1,642	1,690	1,671	1,716	1,837
Revenue growth	—	19.1%	7.6%	−8.1%	−4.4%	−6.7%	2.9%	−1.1%	2.6%	7.1%
Gross profit	223	251	234	228	268	231	193	215	228	239
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	—	—	—	—	—	—	—	—	—	—
Net income	77	88	84	65	99	48	34	38	40	59
Diluted EPS (US$)	1.05	1.19	1.12	0.87	1.32	0.65	0.46	0.52	0.53	0.81
Diluted shares (millions)	74	74	75	75	75	75	74	74	74	73
Cash flow
Cash from operations	41	8	80	94	217	37	−8	44	31	145
Capital expenditure	5	5	5	4	4	6	5	5	6	6
Free cash flow	36	2	75	89	213	31	−13	38	24	139
Dividends paid	53	55	57	59	61	62	63	0	0	0
Share buybacks	0	0	0	0	0	22	0	11	5	62
Acquisitions	0	5	0	0	0	24	0	0	0	7
Stock-based compensation	4	6	6	7	8	9	9	9	9	12
Balance sheet at fiscal year end
Cash and short-term investments	92	83	102	118	264	185	122	148	107	168
Debt incl. finance leases	—	—	—	—	—	—	—	—	—	—
Total assets	528	676	693	723	785	780	721	791	803	794
Total liabilities	190	276	252	262	315	332	303	334	303	284
Shareholders' equity	339	400	441	460	470	445	418	457	500	510
Margins and ratios
Gross margin	14.3%	13.5%	11.7%	12.4%	15.2%	14.0%	11.4%	12.8%	13.3%	13.0%
Operating margin	—	—	—	—	—	—	—	—	—	—
Net margin	5.0%	4.7%	4.2%	3.5%	5.6%	3.0%	2.0%	2.3%	2.3%	3.2%
Free cash flow margin	2.3%	0.1%	3.8%	4.8%	12.1%	1.9%	−0.8%	2.3%	1.4%	7.6%
Rule of 40 (growth + FCF margin)	—	19.2%	11.3%	−3.2%	7.7%	−4.8%	2.1%	1.2%	4.1%	14.7%
Return on capital	—	—	—	—	—	—	—	—	—	—
Return on equity	24.4%	23.9%	19.9%	14.3%	21.2%	10.6%	7.9%	8.8%	8.2%	11.7%
Return on assets	15.3%	14.7%	12.2%	9.1%	13.1%	6.2%	4.6%	5.1%	5.0%	7.4%
Net debt to EBITDA	—	—	—	—	—	—	—	—	—	—

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Healthcare Services Group's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Healthcare Services Group.