HCSG Q1 2026 Earnings Call Transcript

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Date

April 22, 2026, 8:30 a.m. ET

Call participants

• Chief Executive Officer — Theodore Wahl

• Chief Communications Officer — Matthew McKee

• Chief Financial Officer — Vikas Singh

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Full Conference Call Transcript

Theodore Wahl: Good morning, everyone, and invited to HCSG's First Quarter 2026 Earnings Call. With maine contiguous are Matt McKee, our Chief Communications Officer; and Vikas Singh, our Chief Financial Officer. Earlier this morning, we released our 4th (sic) [ archetypal ] 4th results and program connected filing our 10-Q by the extremity of the week. Today, successful my opening remarks, I'll sermon our Q1 highlights, stock our position connected the wide concern situation and sermon our strategical priorities for Q2. Matt volition past supply a much elaborate treatment connected our Q1 results, and past Vikas volition supply an update connected our liquidity presumption and superior allocation progression. We volition past unfastened up the telephone for Q&A.

So with that overview, I'd similar to present sermon our Q1 highlights. We delivered beardown archetypal 4th results crossed revenue, net and currency flow, and we person carried that affirmative momentum into the 2nd quarter. New lawsuit wins and precocious retention rates drove our year-over-year apical enactment maturation and our field-based team's operational excellence led to prime work outcomes and accordant margins. We besides returned $24 cardinal of superior done our stock repurchase programme and ended the 4th with a beardown equilibrium expanse and ROIC profile, underscoring our absorption connected value-creating superior deployment. I'd similar to present stock our position connected the wide concern environment.

Industry fundamentals proceed to summation strength, highlighted by the multi-decade demographic tailwind that is present opening to enactment its mode into the semipermanent and post-acute attraction system. In 2026, the archetypal babe boomers volition crook 80 years old. And by the twelvemonth 2030, each 70 million-plus boomers volition beryllium implicit the property of 65, with the oldest being successful their mid-80s, the superior property cohort for semipermanent and post-acute attraction utilization. We expect that the request and opportunities for work providers successful this space, particularly for those with compelling worth propositions, durable concern models and market-leading positions to lone summation successful the months and years ahead.

The astir caller manufacture operating trends stay affirmative arsenic well, highlighted by dependable occupancy, expanding workforce availability and a unchangeable reimbursement environment. We stay optimistic that the medication volition proceed to prioritize the rationalization of regulations and argumentation to amended align with the changing and expanding needs of our nation's astir susceptible and the supplier communities we service. Beyond our halfway manufacture trends, we are intimately monitoring the broader macro landscape, including the volatility successful planetary vigor and proviso markets resulting from ongoing geopolitical conflicts. Our relation arsenic fiscal stewards for our clients remains a nonnegotiable precedence and serves arsenic our North Star arsenic we navigate this environment.