Highlights

  • Aveanna Healthcare shows 1,199.54% basic EPS growth, a P/E of 10.85 and PEG of -31.81.
  • Second quarter revenue was $670.5 million against $589.6 million; net income was $40.3 million.
  • Aveanna acquired Family First Holding for $173.7 million in cash on June 1, 2026.
  • Management raised 2026 guidance: revenue greater than $2.68 billion, Adjusted EBITDA greater than $365 million.

One-year earnings growth of 1,199.54% in basic earnings per share, paired with a trailing twelve-month P/E ratio of 10.85 and a PEG ratio of -31.81 on an expected basis, puts Aveanna Healthcare (NASDAQ:AVAH) among undervalued growth stocks, with shares trading at USD 13.03 on October 28, 2026, up 2.56%. Alongside those figures, the home care provider repriced its credit facility in May, completed the acquisition of Family First Holding, LLC on June 1, 2026, and reported second quarter 2026 net income of $40.3 million in August.

Aveanna Healthcare Holdings is headquartered in Atlanta, Georgia, and incorporated in Delaware. It provides pediatric and adult healthcare services, primarily in the home, including nursing, hospice, therapy and enteral nutrition products, with locations in 39 states and concentrations in Texas, Pennsylvania and California. The company reports three segments: Private Duty Services, Home Health & Hospice and Medical Solutions. Its fiscal year ends on the Saturday closest to December 31.

Growth: Second Quarter 2026 Earnings, Revenue and Segment Volumes

Net income for the second quarter of 2026, the 13-week period ended July 4, 2026, was $40.3 million against $27.0 million a year earlier, and $81.9 million for the first six months against $32.2 million. Basic earnings per share were $0.19 against $0.13 for the quarter and $0.38 against $0.16 for the six months. The company primarily attributed the quarterly increase in net income to a $9.4 million decrease in net interest expense. Operating income was $80.0 million in both quarters.

Revenue was $670.5 million, up 13.7%, and $1,318.4 million for the six months, up 14.8%. Private Duty Services revenue was $553.9 million, up 14.0%. Home Health & Hospice revenue was $69.0 million, up 14.8%, with total episodes up 18.5%. Medical Solutions revenue was $47.5 million, up 9.4%. Adjusted EBITDA, a non-GAAP measure, was $95,435 thousand against $88,374 thousand.

Valuation: P/E of 10.85, PEG of -31.81 and Cash Flow

The P/E ratio of 10.85 is measured on trailing twelve-month earnings, and the PEG ratio of -31.81 on an expected basis. Net cash provided by operating activities was $85,277 thousand for the six months against $42,937 thousand, and total stockholders' equity was $287,277 thousand at July 4, 2026.

On the second quarter call, Chief Executive Officer Jeffrey Shaner said the company expects to exceed its 2026 preferred payer goal in Private Duty Services, and Chief Financial Officer Matthew Buckhalter said the term loan repricing lowers annual interest expense by approximately $10 million.

Capital and Balance Sheet: Family First, Debt and Liquidity

Aveanna paid $173.7 million in cash from cash on hand for Family First Holding, a pediatric home care provider with 27 locations in seven states. On May 26, 2026, a credit agreement amendment reduced applicable interest rate margins by 0.50%, with a further 0.25% reduction on May 28. Total indebtedness was $1,483,375 thousand, including 2026 Term Loans of $1,318,375 thousand and $165,000 thousand under the Securitization Facility, which rose to $206.3 million on July 6. The weighted average interest rate was 6.6%.

At July 4, 2026, cash on hand was $97.2 million, with $110.0 million available under the Securitization Facility and approximately $225.5 million of capacity under the revolving credit facility. The company stated that it was in compliance with its financial covenants and holds interest rate caps with an aggregate notional amount of $1,400.0 million.

Disclosed Risks and Outlook

Gross margin was 32.6% of revenue against 35.8%, and Field contribution margin, a non-GAAP measure, was 18.1% against 20.5%. In Private Duty Services, the spread rate was $12.88 against $14.29. Acquisition-related costs were $4,390 thousand against $3,400 thousand.

The company has received grand jury subpoenas from the U.S. Department of Justice, Antitrust Division since October 30, 2019 about nurse wages, reimbursement rates and hiring, and management said it cannot predict timing or outcome but does not expect a material effect. A July 19, 2023 Civil Investigation Demand concerns Comfort Care Hospice, LLC and Medicare claims and remuneration; management believes a loss is not probable but cannot predict the possible loss or range. A 100 basis point rise in rates on approximately $83.4 million of unhedged variable rate debt would raise annual interest expense by approximately $2.7 million.

Management said on the call that full-year 2026 revenue is expected to be greater than $2.68 billion, raised from a range of $2.63 billion to $2.65 billion, and Adjusted EBITDA greater than $365 million, raised from $338 million to $342 million. It expects Medical Solutions revenue growth in the high single digits for the next few quarters, with double-digit growth returning by early 2027.