Healthcare Services Group Inc

Healthcare Services Group runs the housekeeping, laundry, linen, facility maintenance and dietary departments of healthcare facilities. Most are nursing homes, retirement complexes, rehabilitation centers and hospitals. As of December 31, 2025, it served about 2,800 facilities across the continental United States. The company describes itself as the largest provider of housekeeping, laundry and dietary management services to the US long-term care industry. Many of its customers rely on Medicare and Medicaid payments.

Most of its work is done under full-service agreements. When it takes over a department, the company typically hires and trains the facility's existing staff, puts its own manager on site and provides supplies such as cleaning products and food. A smaller number of customers use management-only agreements and keep front-line workers on their own payroll. Either side can usually cancel a contract on 30 to 90 days' notice after an initial 60 to 120 days.

Revenue reached $1.84 billion in 2025, up 7.1%, from two business segments. Dietary buys food, prepares meals and provides dietitians for about 1,600 facilities. It brought in $1.01 billion, or 55.1%. Environmental Services cleans rooms and handles laundry and linens for about 2,300 facilities. It brought in $824.7 million, or 44.9%. Wages and food make up most costs, and profit after all expenses was 3.2% of revenue.

• In Q3 FY2026 (ended Sep 30, 2026), revenue was $479.6M, up 3.3% from a year earlier, and net income was $24.9M (-42.1%).
• For fiscal 2025, revenue was $1.84B (+7.1% year over year; +0.9% a year from FY2020 to FY2025) with a 3.2% net margin.

• Over FY2021–FY2025: $99.4M in buybacks and $125.6M in dividends.
• The company pays no regular dividend.
• Shares outstanding changed -8.9% from Feb 16, 2022 to Oct 21, 2026.

Rank among 1514 US companies

Market value at each year end

Healthcare Services Group’s market value went from $2.84B at the end of 2016 to $1.62B on Oct 28, 2026, down 43%; since the end of 2025 it is up 20%.

Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 3 sales ($875K), 1 of them under pre-arranged 10b5-1 trading plans.

Large shareholders (13G filings)

ETFs with the most weight in HCSG

1. Customers that cannot pay their bills. Nursing home operators can run into financial trouble. In 2025 the company recorded a $63.9 million charge for bills unlikely to be paid (bad debt expense) linked to customer Genesis's bankruptcy.
2. Reliance on several large customers. Several customers make up a large share of revenue, one by one and together. Many are multi-facility groups that lease their buildings, so trouble at one large operator could affect many facilities at once.
3. Government payment cuts can squeeze customers. Many customers rely on payments from Medicare and Medicaid, the government health programs. Changes in federal law or state budget shortfalls could cut what nursing homes are paid, leaving less cash to pay the company.
4. Heavy reliance on one food distributor. In 2025 a single distributor handled more than 50% of the company's food and non-food dining supplies. A disruption to that relationship or to the distributor's business could raise costs and interrupt service.
5. Contracts can end on short notice. Typical agreements can be canceled by either side on 30 to 90 days' notice after an initial 60 to 120 days, so revenue from any facility is never locked in for long.
6. Rising wages and food prices, thin margins. Labor costs equaled 78.3% of Environmental Services revenue in 2025, and food 30.9% of Dietary revenue. Wage inflation or tariffs can outpace price increases to customers, and profit was just 3.2% of revenue.

• Oct 21, 2026 Quarterly results released
• Oct 7, 2026 Major agreement signed; Investor presentation or announcement
• Jul 22, 2026 Quarterly results released
• May 27, 2026 Shareholder vote results
• Apr 22, 2026 Quarterly results released
• Apr 13, 2026 Major agreement signed; New debt or financial obligation
• Feb 11, 2026 Quarterly results released

Healthcare Services Group does not pay a dividend, and its yield was 0% as of October 28, 2026. It once did, paying $0.82 per share in 2020, $0.84 in 2021 and $0.86 in 2022, but it paid none in 2023 or 2024. In 2021 and 2022, dividends were larger than free cash flow (cash from operations minus capital spending), which was negative in 2022. The company has also bought back shares: $99.4 million from 2021 through 2025, including $61.6 million in 2025. The share count fell 8.9% from February 2022 to October 2026. For an income investor, any return has to come from the share price, so getting regular cash would mean selling shares.

The stock has dropped sharply in market downturns. From peak to low it fell 46.7% in the 2008 financial crisis, 42.2% in the 2020 COVID crash and 37.7% in the 2022 bear market. After the 2022 drop it did not regain its high until October 2025. Single stocks carry more risk than diversified funds.