Acadia Healthcare’s first quarter results for 2025 were well received by the market, driven by stable revenue and outperformance on adjusted profitability metrics. Management attributed the quarter’s performance to continued demand for behavioral health services, the addition of new beds and facilities, and effective labor cost management. CEO Chris Hunter highlighted that "same facility patient days grew 2.2%," despite unfavorable calendar impacts, and cited the company’s ongoing focus on quality initiatives and close relationships with referral partners as important contributors. CFO Heather Dixon noted that premium pay and contract labor costs declined, contributing positively to the expense profile.
Is now the time to buy ACHC? Find out in our full research report (it’s free).
Acadia Healthcare (ACHC) Q1 CY2025 Highlights:
- Revenue: $770.5 million vs analyst estimates of $769.7 million (flat year on year, in line)
- Adjusted EPS: $0.40 vs analyst estimates of $0.36 (12% beat)
- Adjusted EBITDA: $134.2 million vs analyst estimates of $132.1 million (17.4% margin, 1.6% beat)
- The company reconfirmed its revenue guidance for the full year of $3.35 billion at the midpoint
- Adjusted EPS guidance for the full year is $2.65 at the midpoint, roughly in line with what analysts were expecting
- EBITDA guidance for the full year is $700 million at the midpoint, in line with analyst expectations
- Operating Margin: 5.5%, down from 16.4% in the same quarter last year
- Sales Volumes rose 1.3% year on year (-1.7% in the same quarter last year)
- Market Capitalization: $2.15 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Acadia Healthcare’s Q1 Earnings Call
-
A.J. Rice (UBS) asked about the progression of EBITDA throughout the year given various moving parts. CFO Heather Dixon explained that supplemental payments and ramping contributions from new beds would drive improvement, with Q1 showing the highest startup costs.
-
Brian Tanquilut (Jefferies) questioned the breakeven timeline for new beds and facilities. Dixon reiterated the historical three-to-five-year ramp, noting conservatism in guidance due to a higher mix of newly constructed beds.
-
Whit Mayo (Leerink Partners) inquired about expense favorability and sequential performance. Dixon pointed to better-than-expected startup losses and favorable labor trends as key drivers of Q1 results.
-
John Ransom (Raymond James) probed the company’s return targets for new facilities and investment discipline. Dixon emphasized a consistent framework for evaluating capital projects, with rigorous sensitivity analysis and multiple checkpoints.
-
Matthew Gillmor (KeyBanc) asked about the impact of policy proposals such as Medicaid work requirements. CEO Chris Hunter stated that exemptions for high-acuity behavioral populations likely reduce the risk to Acadia’s business, but the company remains engaged with policymakers.
Catalysts in Upcoming Quarters
In upcoming quarters, our analysts will be monitoring (1) the speed at which newly added beds and facilities ramp up to target occupancy and profitability, (2) developments in Medicaid supplemental payment programs and state-level policy changes, and (3) progress on reducing startup losses and improving performance at underperforming facilities. Execution in these areas will be critical to sustaining growth and maintaining margin discipline.
Acadia Healthcare currently trades at $23.50, down from $25.86 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
The Best Stocks for High-Quality Investors
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.