Healthcare Services Group, Inc. (HCSG)

HCSG's stock has shown strong momentum over the past six months, climbing 62.39% year-to-date and delivering a 73.93% total shareholder return over the past twelve months as of October 24, 2025. On October 22, 2025, the stock reached a new 52-week high of $20.00 following the announcement of better-than-expected quarterly earnings. The third-quarter 2025 earnings revealed an EPS of $0.59, surpassing the projected $0.21, and revenue of $464.3 million, an 8.5% increase year-over-year, including a $0.36 per share benefit primarily from the Employee Retention Credit (ERC). In July 2025, HCSG announced plans to accelerate share buybacks, aiming to repurchase $50.0 million of common stock through June 2026, with $27.3 million repurchased in Q3 2025, bringing the year-to-date total to $42.0 million. Second-quarter 2025 earnings showed revenue of $458.5 million, a 7.6% increase year-over-year, despite a non-cash charge related to the Genesis restructuring. Analyst ratings have seen adjustments, and insider selling by EVP John Christopher Shea was noted in July 2025.

While the Education segment experiences some seasonality in sales, the core business of Healthcare Services Group, Inc. benefits from a multi-decade demographic tailwind driven by the aging U.S. population, leading to increased demand for long-term and post-acute care services. Historically, October has shown a favorable long bias for the stock.

Healthcare Services Group, Inc. (HCSG) provides management, administrative, and operating services to healthcare facilities, operating in the Healthcare sector and Medical Care Facilities industry. The company's business is divided into Housekeeping, laundry, linen, and other services, and Dietary department services. The Housekeeping segment manages cleaning, disinfecting, sanitizing, laundry, bed linen, and uniform services. The Dietary segment handles food purchasing, meal preparation, and dietitian consulting services, including menu development. HCSG's client base includes nursing homes, retirement complexes, rehabilitation centers, and hospitals.

Healthcare Services Group, Inc. primarily serves clients across the United States of America.

Healthcare Services Group has received several positive recognitions, including being named one of America's Greatest Workplaces for Inclusion and Diversity in 2025 by Newsweek and Plant-A Insights Groups. The company was also recognized as one of America's Greatest Workplaces in 2024 and America's Greatest Workplaces for Job Starters in 2024 by the same organizations. Furthermore, HCSG has been listed as one of Newsweek and Statista's Most Trustworthy Companies in America for the third consecutive year. However, a significant event impacting its reputation was the confirmation of a data breach affecting 624,500 individuals.

Healthcare Services Group, Inc. has a diverse ownership structure. Approximately 54.73% to 84.20% of the company's stock is owned by institutional investors, 1.02% by insiders, and 14.77% to 29.47% by public companies and individual investors. Major institutional owners include BlackRock, Inc., Vanguard Group Inc, Mackenzie Financial Corp, Royce & Associates Lp, State Street Corp, Dimensional Fund Advisors Lp, Goldman Sachs Group Inc, and iShares. Daniel P. McCartney is noted as a significant individual shareholder, owning 2.79% of the company's shares.