Filing Flows › Encompass Health (EHC) › Q2 2025
Encompass Health (EHC) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 6, 2025
Encompass Health (EHC) reported revenue of $1.5B for the second quarter 2025 (Q2 2025), +12% from a year earlier and +0.2% from the quarter before. Operating margin was 17.8%, net earnings $142M (9.7% of revenue).
Encompass Health, Q2 2025: revenue $1.5B (+12% year over year), operating margin 17.8%, net earnings $142M, operating cash flow $270M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.5B | +0.2% | +12% |
| Operating profit | $259M | -3% | +20% |
| Net earnings | $142M | -6% | +25% |
| Operating cash flow | $270M | -6% | +24% |
| Free cash flow | $113M | -10% | +87% |
What changed
Revenue was $1.5B in Q2 2025, up 12% year over year and roughly flat from the previous quarter. Medicare was the largest line at 64% of revenue. Medicare added $0.10B year over year (up 12%), 63% of the total change. Other third-party payors declined 3%.
Operating profit was $0.26B, a 17.8% margin (up 1.2 points year over year). Of the extra revenue versus a year earlier, 28% reached operating profit, above the 17% margin then. Total costs grew 10% against revenue growth of 12%. The fastest-growing cost line was General & admin (+18%). Net earnings were $0.14B, up 25% year over year. The effective tax rate was 21.6%.
Operating cash flow was $0.27B (up 24% year over year), 146% 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 $0.11B.
Questions
What was Encompass Health's revenue in the second quarter 2025?
Encompass Health (EHC) reported revenue of $1.5B for the second quarter 2025 (Q2 2025), +12% from a year earlier and +0.2% from the quarter before.
Was Encompass Health profitable in the second quarter 2025?
Operating profit was $259M (17.8% of revenue) and net earnings $142M.
Source: Encompass Health 10-Q on SEC EDGAR.