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HCSG

Healthcare Services Group, Inc.

HCSG

Healthcare Services Group, Inc. • NASDAQ
$18.78 ▼ -0.90% (-0.17)
Market Cap $1.37 B
52w High $20.00
52w Low $9.13
Dividend Yield 0%
P/E 34.78
Volume 181.64K
Outstanding Shares 73.15M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $464.338M ▲ $46.824M ▲ $42.953M ▲ 9.25% ▲ $0.59 ▲ $61.73M ▲
Q2-2025 $458.491M ▲ $44.514M ▼ $-32.366M ▼ -7.059% ▼ $-0.44 ▼ $-36.469M ▼
Q1-2025 $447.662M ▲ $46.433M ▲ $17.228M ▲ 3.848% ▲ $0.23 ▲ $28.167M ▲
Q4-2024 $437.812M ▲ $44.352M ▼ $11.92M ▼ 2.723% ▼ $0.16 ▼ $19.585M ▼
Q3-2024 $428.149M $44.469M $14.03M 3.277% $0.19 $24.129M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $177.461M ▲ $804.299M ▲ $308.297M ▼ $496.002M ▲
Q2-2025 $164.076M ▲ $802.2M ▼ $325.162M ▲ $477.038M ▼
Q1-2025 $114.813M ▼ $822.963M ▲ $308.765M ▼ $514.198M ▲
Q4-2024 $135.771M ▲ $815.474M ▲ $315.547M ▼ $499.927M ▲
Q3-2024 $103.831M $805.841M $317.093M $488.748M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $42.953M ▲ $71.293M ▲ $-2.746M ▼ $-27.271M ▼ $41.276M ▲ $69.957M ▲
Q2-2025 $-32.366M ▼ $28.787M ▲ $-2.35M ▲ $-7.675M ▲ $18.762M ▲ $27.428M ▲
Q1-2025 $17.228M ▲ $27.501M ▼ $-14.47M ▼ $-8.78M ▲ $4.251M ▼ $25.758M ▼
Q4-2024 $11.92M ▼ $36.204M ▲ $21.798M ▲ $-26.01M ▼ $31.992M ▲ $34.777M ▲
Q3-2024 $14.03M $4.312M $288K $-6.008M $-1.408M $2.913M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Dietary Services
Dietary Services
 $250.00M ▲$250.00M ▲$250.00M ▲$250.00M ▲
Housekeeping Services
Housekeeping Services
 $190.00M ▲$200.00M ▲$210.00M ▲$210.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has been fairly flat over the past five years, with small ups and downs rather than clear strong growth. Profitability, however, is clearly weaker than it was a few years ago. Margins have compressed compared with the early pandemic period, and earnings per share are much lower than their prior peak. The past two years show some stabilization: revenue is inching up and profits are holding in a narrow but positive range. Overall, the business is solidly profitable but operating with thinner cushions than it used to, leaving less room for error if costs or volumes move the wrong way.

Balance Sheet

Balance Sheet The balance sheet looks conservative and relatively stable. Total assets have hovered in a similar range for several years, while shareholders’ equity has gradually rebuilt after a dip, suggesting modest value creation over time. Cash levels are lower than the earlier pandemic peak but appear adequate for day‑to‑day needs, especially given the company’s light capital requirements. Debt is low and has remained a small portion of the capital structure, which reduces financial risk and interest burden. Overall, the company appears to be run with a cautious balance sheet rather than aggressive leverage.

Cash Flow

Cash Flow Cash generation has been uneven. A few years ago, operating cash flow was very strong, but it weakened notably and even turned slightly negative for a year before recovering. Over the last two years, cash from operations has been positive but not particularly robust, indicating the company is generating cash, though with limited excess. Free cash flow is positive and consistently helped by very low capital spending needs. That said, the cushion is not large, so sustained improvements in margins and working capital discipline would matter a lot for strengthening cash flow resilience.

Competitive Edge

Competitive Edge HCSG is a specialist rather than a generalist. Its focus on housekeeping, laundry, and dining services specifically for healthcare and long‑term care facilities gives it deep domain expertise in infection control, regulatory compliance, and specialized nutrition. This specialization supports strong client retention and long relationships, which can be hard for broader facility service providers to dislodge. However, the company operates in a cost‑sensitive, labor‑intensive industry with ongoing wage and regulatory pressures, and it competes with much larger players that have scale advantages. Its main edge is not size, but reputation, long‑standing relationships, and healthcare‑specific know‑how.

Innovation and R&D

Innovation and R&D While it does not rely on traditional lab‑style research, HCSG invests in process, training, and technology. It uses cloud tools, electronic onboarding, mobile quality inspections, and centralized purchasing and inventory systems to drive efficiency and regulatory compliance. The company’s structured quality assurance programs and specialized training pipelines, including apprenticeship‑style management programs, are a form of “people and process R&D.” Future innovation seems aimed at better integrating back‑office data with frontline workflows, expanding services across entire senior‑care campuses, and cross‑selling additional service lines to existing clients. These efforts are incremental rather than disruptive, but they align well with the company’s niche and could gradually enhance productivity and stickiness.

Summary

HCSG is a niche healthcare services provider with a long operating history, a conservative balance sheet, and consistent—though currently thin—profitability. Revenue has been steady rather than fast‑growing, and margins are meaningfully lower than a few years ago, leaving less room for unexpected shocks. Cash flow remains positive but not abundant, reflecting both modest earnings and some past volatility in working capital. Competitively, the firm benefits from specialization, high client retention, and deep familiarity with healthcare regulations, while facing ongoing pressure from labor costs, reimbursement dynamics, and large diversified rivals. Its innovation focus is practical and operations‑oriented, using technology, training, and process discipline to slowly improve efficiency and deepen its role within client facilities.

NEWS

October 22, 2025 · 7:00 AM UTC

HCSG Reports Third Quarter Results

Read more