Filing Flows › Encompass Health (EHC) › Q3 2025
Encompass Health (EHC) Q3 2025 earnings results (third quarter 2025)
10-Q filed Oct 31, 2025
Encompass Health (EHC) reported revenue of $1.5B for the third quarter 2025 (Q3 2025), +9% from a year earlier and +1% from the quarter before. Operating margin was 16.5%, net earnings $126M (8.6% of revenue).
Encompass Health, Q3 2025: revenue $1.5B (+9% year over year), operating margin 16.5%, net earnings $126M, operating cash flow $271M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.5B | +1% | +9% |
| Operating profit | $244M | -6% | +16% |
| Net earnings | $126M | -11% | +17% |
| Operating cash flow | $271M | +0.2% | +1% |
| Free cash flow | $83.7M | -26% | -30% |
What changed
Revenue was $1.5B in Q3 2025, up 9% year over year and up 1% from the previous quarter. Medicare was the largest line at 64% of revenue. Medicare added $0.06B year over year (up 7%), 50% of the total change. Other third-party payors declined 2%.
Operating profit was $0.24B, a 16.5% margin (up 1.0 points year over year). Of the extra revenue versus a year earlier, 27% reached operating profit, above the 15% margin then. Total costs grew 8% against revenue growth of 9%. Net earnings were $0.13B, up 17% year over year. The effective tax rate was 20.4%.
Operating cash flow was $0.27B (up 1% year over year), 155% 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 $0.19B left free cash flow of $0.08B.
Questions
What was Encompass Health's revenue in the third quarter 2025?
Encompass Health (EHC) reported revenue of $1.5B for the third quarter 2025 (Q3 2025), +9% from a year earlier and +1% from the quarter before.
Was Encompass Health profitable in the third quarter 2025?
Operating profit was $244M (16.5% of revenue) and net earnings $126M.
Source: Encompass Health 10-Q on SEC EDGAR.