Acadia Healthcare reported third‑quarter 2025 revenue of $851.6 million, up 4.4 % from $815.6 million a year earlier. The company’s adjusted earnings per share of $0.72 matched the consensus estimate of $0.72 and beat the Zacks consensus of $0.67, a $0.05 or 7.5 % beat. The upside was driven by a 7.2 % rise in revenue from acute inpatient psychiatric facilities and a 7.7 % increase from comprehensive treatment centers, offsetting a modest decline in other segments.
Adjusted EBITDA fell to $173 million from $194.3 million a year earlier, a 11.4 % drop. The compression reflects higher startup losses from new facilities, increased professional liability costs, and softer Medicaid volumes that reduced patient‑day revenue. While revenue grew, the company’s cost base expanded faster, squeezing the margin from 20.3 % to 20.3 % of revenue, a 0.5‑percentage‑point decline.
In light of these headwinds, management lowered its full‑year 2025 revenue guidance to $3.28‑$3.30 billion from the prior $3.30‑$3.35 billion and cut adjusted EBITDA guidance to $650‑$660 million from $675‑$700 million. The downgrade signals concern over persistent softness in acute‑care Medicaid volumes, heightened pay‑or‑scrutiny on authorizations, and rising bad‑debt and liability expenses that are expected to continue through the year.
The quarter also saw significant expansion: Acadia added 429 new beds, bringing the total added in the first nine months to 908. Three new comprehensive treatment centers and three joint‑venture hospitals opened, extending the company’s footprint to 177 centers across 33 states. The company also launched a $300 million share‑repurchase program and announced a $300 million reduction in 2026 capital expenditures, aiming to accelerate free‑cash‑flow generation.
CEO Chris Hunter emphasized that the company remains focused on disciplined growth. He noted that “while we are lowering our full‑year EBITDA guidance to reflect incremental volume and rate pressures, we remain encouraged by patient demand and the progress we’re making across key initiatives.” The comments highlight a strategic shift toward optimizing the existing footprint and improving operational efficiency amid market uncertainty.
Investors reacted negatively to the guidance cut, citing concerns over volume and rate pressures, higher startup losses, and increased professional liability costs. The market’s response underscored the weight of the downgraded outlook, which outweighed the positive earnings beat and revenue growth.
In summary, Acadia’s Q3 2025 results show resilient revenue growth but mounting cost pressures that have eroded profitability. The company’s expansion strategy continues, but the guidance downgrade signals caution about near‑term demand and cost dynamics, prompting a tempered market reaction.
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