$HCSG

HEALTHCARE SERVICES GROUP INC

CIK:0000731012|SEC Filings

Consolidated Statements of Comprehensive Income/(Loss) - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Jun. 30, 2026

Jun. 30, 2025

Income Statement [Abstract]

Revenues

$ 470,808

$ 458,491

$ 933,574

$ 906,153

Operating costs and expenses:

Costs of services provided

396,015

455,533

782,946

835,224

Selling, general and administrative

52,585

49,163

94,582

94,129

Other income (expense):

Investment and other income, net

9,414

4,735

10,482

6,019

Interest expense

(619)

(418)

(984)

(813)

Income (loss) before taxes

31,003

(41,888)

65,544

(17,994)

Income tax provision (benefit)

8,307

(9,522)

16,788

(2,856)

Net income (loss)

$ 22,696

$ (32,366)

$ 48,756

$ (15,138)

Per share data:

Basic earnings (loss) per common share (in dollars per share)

$ 0.33

$ (0.44)

$ 0.70

$ (0.21)

Diluted earnings (loss) per common share share (in dollars per share)

$ 0.32

$ (0.44)

$ 0.69

$ (0.21)

Weighted average number of common shares outstanding:

Basic (in shares)

68,758

73,161

69,311

73,414

Diluted (in shares)

69,905

73,161

70,479

73,414

Comprehensive income (loss):

Net income (loss)

$ 22,696

$ (32,366)

$ 48,756

$ (15,138)

Other comprehensive income (loss)

Unrealized (loss) gain on available-for-sale marketable securities, net of taxes

(103)

^[1]

372

^[2]

(490)

875

Total comprehensive income (loss)

$ 22,593

$ (31,994)

$ 48,266

$ (14,263)

[1]	These amounts are shown net of the effect of income taxes.
[2]	These amounts are shown net of the effect of income taxes.

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income (loss)	$ 48,756	$ (15,138)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation and amortization	7,326	8,879
Bad debt provision	8,052	73,381
Deferred income taxes	(1,322)	(15,180)
Share-based compensation expense	5,585	6,279
Amortization of premium on marketable securities	67	235
Unrealized gain on deferred compensation fund investments	(5,424)	(3,195)
Changes in other long-term assets and liabilities	(16)	(2,763)
Net loss on disposals of property and equipment	181	161
Changes in operating assets and liabilities:
Accounts and notes receivable	(24,443)	(15,759)
Inventories and supplies	960	(607)
Prepaid expenses and other assets	(7,696)	843
Deferred compensation funding	2,140	715
Accounts payable and other accrued expenses	1,968	(10,887)
Accrued payroll and related taxes	14,295	15,665
Deferred ERC credits	0	20,016
Income taxes receivable (payable)	17,582	(7,003)
Accrued insurance claims	(5,770)	(1,605)
Deferred compensation liability	3,359	2,251
Net cash from operating activities	65,600	56,288
Cash flows from investing activities:
Disposals of property and equipment	143	76
Additions to property and equipment	(3,028)	(3,102)
Cash paid for acquisition, net of cash acquired	(12,794)	(7,287)
Cash paid for investments	(4,625)	(2,125)
Purchases of marketable securities	(16,967)	(4,611)
Sales of marketable securities	11,967	229
Net cash from investing activities	(25,304)	(16,820)
Cash flows from financing activities:
Purchases of treasury stock	(44,892)	(14,711)
Payments of statutory withholding on net issuance of restricted stock units	(4,162)	(1,744)
Proceeds from the exercise of stock options	1,452	0
Net cash from financing activities	(47,602)	(16,455)
Net (decrease) increase in cash, cash equivalents and restricted cash equivalents	(7,306)	23,013
Cash, cash equivalents and restricted cash equivalents at beginning of the period	130,766	60,131
Cash, cash equivalents and restricted cash equivalents at end of the period	$ 123,460	$ 83,144

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 123,406	$ 125,189
Restricted cash equivalents	54	5,577
Marketable securities, at fair value	41,316	42,774
Restricted marketable securities, at fair value	36,089	30,352
Accounts receivable, net (less allowances: $118,291 and $119,305)	292,794	281,303
Notes receivable — short–term portion, net (less allowances: $$28,371 and $$25,931)	26,676	31,243
Inventories and supplies	15,837	16,797
Taxes receivable	4,664	22,246
Prepaid expenses and other current assets	27,689	20,934
Total current assets	568,525	576,415
Property and equipment, net	29,922	27,586
Goodwill	85,804	79,797
Other intangible assets (less accumulated amortization of $44,402 and $42,931)	13,112	6,964
Notes receivable — long–term portion, net (less allowances: $3,547 and $1,776)	34,862	25,209
Deferred compensation funding, at fair value	59,141	55,909
Deferred tax assets	19,923	18,472
Other long-term assets	9,568	3,901
Total assets	820,857	794,253
Current liabilities:
Accounts payable	86,097	77,382
Accrued payroll and related taxes	44,020	31,400
Other accrued expenses and current liabilities	35,877	37,222
Accrued insurance claims	22,124	24,371
Total current liabilities	188,118	170,375
Accrued insurance claims — long-term	42,619	46,142
Deferred compensation liability — long-term	59,141	56,276
Lease liability — long-term	11,328	9,659
Other long-term liabilities	809	1,591
Commitments and contingencies (Note 17)
STOCKHOLDERS’ EQUITY:
Common stock, $0.01 par value; 200,000 shares authorized; 77,298 and 76,821 shares issued, and 67,983 and 69,596 shares outstanding	773	768
Additional paid-in capital	331,398	327,956
Retained earnings	332,427	283,668
Accumulated other comprehensive loss, net of taxes	(938)	(448)
Common stock in treasury, at cost, 9,315 and 7,225 shares	(144,818)	(101,734)
Total stockholders’ equity	518,842	510,210
Total liabilities and stockholders’ equity	$ 820,857	$ 794,253