Filing Flows › Encompass Health (EHC) › Q1 2025
Encompass Health (EHC) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 1, 2025
Encompass Health (EHC) reported revenue of $1.5B for the first quarter 2025 (Q1 2025), +11% from a year earlier and +4% from the quarter before. Operating margin was 18.3%, net earnings $152M (10.4% of revenue).
Encompass Health, Q1 2025: revenue $1.5B (+11% year over year), operating margin 18.3%, net earnings $152M, operating cash flow $289M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.5B | +4% | +11% |
| Operating profit | $267M | +15% | +29% |
| Net earnings | $152M | +25% | +35% |
| Operating cash flow | $289M | +4% | +21% |
| Free cash flow | $126M | +57% | +26% |
What changed
Revenue was $1.5B in Q1 2025, up 11% year over year and up 4% from the previous quarter. Medicare was the largest line at 67% of revenue. Medicare added $0.12B year over year (up 14%), 87% of the total change. Patients declined 21%.
Operating profit was $0.27B, a 18.3% margin (up 2.6 points year over year). Of the extra revenue versus a year earlier, 43% reached operating profit, above the 16% margin then. Total costs grew 7% against revenue growth of 11%. Net earnings were $0.15B, up 35% year over year. The effective tax rate was 17.4%.
Operating cash flow was $0.29B (up 21% year over year), 147% of net income including minority interests. Non-cash charges added back $0.08B of depreciation and amortization and $0.01B of share-based compensation. Capital expenditures of $0.16B left free cash flow of $0.13B.
Questions
What was Encompass Health's revenue in the first quarter 2025?
Encompass Health (EHC) reported revenue of $1.5B for the first quarter 2025 (Q1 2025), +11% from a year earlier and +4% from the quarter before.
Was Encompass Health profitable in the first quarter 2025?
Operating profit was $267M (18.3% of revenue) and net earnings $152M.
Source: Encompass Health 10-Q on SEC EDGAR.