It has been about a month since the last earnings report for Acadia Healthcare (ACHC). Shares have lost about 8.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Acadia Healthcare due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Acadia Healthcare Company, Inc. before we dive into how investors and analysts have reacted as of late.
Acadia Healthcare Q1 Earnings Beat Estimates on Rising Patient Days
Acadia Healthcare reported adjusted first-quarter earnings of 37 cents per share, which beat the Zacks Consensus Estimate of 28 cents. However, the bottom line declined 7.5% year over year.
Total revenues increased 7.6% year over year to $828.8 million. The top line beat the consensus mark of $824 million.
The better-than-expected quarterly results were driven by increased patient days and revenues per patient day, and higher admissions, which were partially offset by lower average length of stay and higher expenses.
ACHC’s Q1 Operations
ACHC’s top line benefited most from its Acute Inpatient Psychiatric Facilities business, where revenues increased 14% year over year to $470.7 million and beat the Zacks Consensus Estimate by 6.4%. The metric benefited from higher volumes, aided by expanded capacity from both new construction and additions at existing facilities.
Specialty Treatment Facilities’ revenues declined 6.5% from the prior-year period to $128.1 million. Comprehensive Treatment Facilities’ revenues rose 2.5% year over year to $140.4 million, while Residential Treatment Facilities’ revenues increased 6.3% to $89.6 million.
Same-facility revenues of $813.4 million rose 7.3% year over year and beat the Zacks Consensus Estimate by 2%. The year-over-year improvement was driven by a 1.6% increase in patient days. Admissions grew 6.5% year over year. The average length of stay declined 4.6% year over year and missed the consensus estimate by 5.5%. Revenue per patient day increased 5.6% year over year.
In the overall facility, patient days improved 1.5% year over year, while admissions grew 7.8%. Revenue per patient day increased 5.9% year over year. The average length of stay declined 5.8% year over year.
Total expenses of $817.8 million rose from $757 million in the prior-year period due to higher salaries, wages and benefits, other operating expenses, supply costs and professional fees.
Total adjusted EBITDA rose 7.5% year over year to $144.2 million.
During the quarter, the company added 82 newly licensed beds, including 42 beds at existing facilities and 40 beds from newly constructed facilities, including a joint venture with Tufts Medicine.
Financial Update (as of March 31, 2026)
Acadia Healthcare exited the first quarter with cash and cash equivalents of $158.5 million, which increased from $133.2 million at the 2025-end level. It had a leftover capacity of $564.8 million under its $1 billion revolving credit facility at the first-quarter end.
Total assets of $5.5 billion increased 0.3% from the figure at the end of 2025.
Long-term debt amounted to $2.5 billion, which rose from $0.9 billion as of Dec. 31, 2025. The current portion of long-term debt was $32.5 million.
Total equity of $2 billion increased from the 2025-end level of $1.9 billion.
Net cash provided by operations totaled $61.5 million in the first quarter of 2026 compared with $11.5 million in the prior-year comparable period.
Acadia Healthcare’s Share Repurchase Update
The company did not buy back shares in the first quarter of 2026.
Q2 Guidance by ACHC
For the second quarter of 2026, revenues are projected to be between $835 million and $850 million. Adjusted earnings per share (EPS) are predicted to be between 30 cents and 40 cents.
Adjusted EBITDA is estimated to be in the range of $142-$152 million.
Acadia Healthcare’s Revised 2026 Outlook
Revenues are still projected to be in the range of $3.37 to $3.45 billion. Adjusted EBITDA is now estimated to be in the range of $580 to $615 million, up from the previous guidance range of $575 to $610 million. Adjusted EPS are now predicted to be between $1.35 and $1.60, up from the previous guidance range of $1.30 and $1.55.
Operating cash flows are now forecasted in the range of $285 to $325 million. Capital expenditures are expected to be in the range of $255-$280 million.
Management earlier estimated bed additions between 400 and 600 in 2026.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -27.8% due to these changes.
VGM Scores
Currently, Acadia Healthcare has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Acadia Healthcare has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Acadia Healthcare Company, Inc. (ACHC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).