Enhabit, Inc (EHAB)

Enhabit's stock has increased significantly year-to-date as of April 2, 2026. A definitive merger agreement has been made for Enhabit to be acquired by Kinderhook Industries LLC for $13.80 per share, expected to close in the second quarter of 2026, pending approvals, which will result in Enhabit becoming a private company. Consequently, management has suspended its 2026 guidance. Financial results for Q3 2025 showed net service revenue of $263.6 million, net income of $11.1 million, and Adjusted EBITDA of $27.0 million. Q4 2025 saw net service revenue of $270.4 million, a 4.7% increase year-over-year, and Adjusted EBITDA of $28.0 million, up 11.6% year-over-year. Home health admissions grew 7.3% and hospice average daily census (ADC) grew 9.9% in Q4 2025. There have also been shareholder alerts and investigations regarding fair deals for shareholders, and at least one analyst downgrade in the past month.

Demand for Enhabit's hospice services can experience seasonality, with holiday periods being unpredictable for hospice length of stay.

Enhabit, Inc. is a healthcare services provider specializing in home health and hospice care, headquartered in Dallas, Texas. It operates through Home Health and Hospice segments, offering services such as skilled nursing, therapy, and palliative care. Enhabit was formed in 2022 when Encompass Health spun off its home health and hospice business.

Enhabit operates across 34 states with approximately 247 to 255 home health locations and 107 to 115 hospice locations. Its operations are concentrated in states such as Texas, Alabama, Florida, Georgia, Oklahoma, and Mississippi.

Enhabit has been recognized for its workplace environment by Fortune and Modern Healthcare. Shareholder activism by AREX Capital Management led to the election of one of their nominees to the board in 2024. The pending acquisition by Kinderhook Industries LLC reflects a significant corporate event impacting the company's future direction and perception.

Enhabit, Inc.'s ownership is primarily institutional, with institutional shareholders holding 93.71% of the stock. Insiders own 4.22%, and retail investors hold 2.07%. Major institutional owners include 8 Knots Management, Llc, Deerfield Management Company, L.p. (series C), BlackRock, Inc., Vanguard Group Inc, AREX Capital Management, LP, JANA Partners Management, LP, UBS Group AG, Systematic Financial Management Lp, Dimensional Fund Advisors Lp, and Paradice Investment Management LLC. Barbara Ann Jacobsmeyer, the President and CEO, owns 1.20% of the company's shares.