Acadia Healthcare Company (ACHC) Company Report

Acadia Healthcare (ACHC) has revised its 2025 financial guidance downward, now expecting adjusted EPS between $1.94 and $2.04 and adjusted EBITDA in the range of $601 million to $611 million.
This revision is primarily due to a significant increase in professional and general liability (PLGL) expenses, driven by higher settlement costs for claims related to prior policy years and increased claim frequency for the 2025 policy year, which exceeded expectations after an actuarial review.
The company's financial distress indicators include an Altman Z-Score of 1.07, placing it in the financial distress zone, and a price-to-book ratio of 0.48, near a 10-year low, underscoring concerns about financial stability.

2 days ago

Morningstar

Acadia Healthcare Updates PLGL Reserves and Lowers 2025 Guidance

ACHC

Guidance Update

Profit Warning

Legal Proceedings

Acadia Healthcare Company, Inc. (ACHC) has lowered its full-year 2025 guidance for Adjusted EBITDA and Adjusted EPS due to an increase in professional and general liability (PLGL) expenses identified during an annual actuarial review.
The company now expects full-year 2025 Adjusted EBITDA in the range of $601 million to $611 million (down from $650 million to $660 million) and Adjusted EPS of $1.94 to $2.04 (down from $2.35 to $2.45), reflecting an incremental $49 million in PLGL expense and a $0.41 reduction in EPS.
The projected 2025 PLGL expense is approximately $116 million, a significant increase from $54 million in 2024, driven by factors including a 168% increase in claim frequency during the 2025 policy year and higher expected settlement costs.
The net PLGL liability at year-end 2025 is expected to rise to $145 million to $165 million, compared to $78 million on December 31, 2024.

2 days ago

8-K

Acadia Healthcare Discusses Litigation Settlement, 2025 Performance, and 2026 Outlook

ACHC

Legal Proceedings

Guidance Update

CFO Change

Acadia Healthcare has agreed to settle previously disclosed shareholder litigation for $179 million, which will be funded by approximately $30 million in anticipated insurance proceeds, with the remainder from cash on hand and existing line of credit. This settlement is expected to increase net leverage modestly from 3.4 times to approximately 3.65 times.
The company's results through the third quarter of 2025 were modestly below expectations, leading to updated guidance, with the fourth quarter reflecting headwinds such as volume softness and rate pressures. However, management does not believe Q4 2025 should be viewed as a new baseline for 2026, anticipating declining startup losses, improved margin mix from facility closures, and ramping contributions from recent bed additions.
Acadia has added 1,700 new beds in 2024 and through the first three quarters of 2025, with 632 beds entering the same-store calculation in Q1 2026, and plans to reduce CapEx by $300 million in 2026. The company also closed five underperforming facilities in 2025 as part of portfolio optimization.
The company anticipates at least $22 million of annual EBITDA improvements from pending supplemental payment programs, which could be recognized in Q4 2025 or early 2026.
The labor market is showing stabilization, with base wage inflation ticking down slightly in Q3 2025 and improved employee retention for six consecutive quarters.

Nov 11, 2025, 7:45 PM

Transcript

Acadia Healthcare Reports Q3 2025 Results and Updates Full-Year Guidance

ACHC

Guidance Update

Demand Weakening

Management Change

Acadia Healthcare reported Q3 2025 revenue of $851.6 million, a 4.4% increase year-over-year, and Adjusted EBITDA of $173 million, compared to $194.3 million in the prior year period.
The company reduced its full-year 2025 guidance for revenue to $3.28 billion-$3.3 billion, Adjusted EBITDA to $650 million-$660 million, and Adjusted EPS to $2.35-$2.45.
This revised outlook is attributed to softer-than-expected volumes in its Medicaid business, rate pressure, increased bad debts and denials, and higher professional and general liability expense.
Acadia is realigning capital spending priorities, projecting 2026 CapEx to be at least $300 million lower than the revised 2025 CapEx guidance of $610 million-$630 million, and expects to generate positive adjusted free cash flow for the full year 2026.
Todd Young recently joined as Chief Financial Officer, and Nasser Khan is stepping down as Chief Operating Officer.

Nov 6, 2025, 2:00 PM

Transcript

Acadia Healthcare Reports Q3 2025 Results, Lowers Full-Year Guidance, and Announces CFO Change

ACHC

Earnings

Guidance Update

Management Change

Demand Weakening

Acadia Healthcare reported Q3 2025 revenue of $851.6 million, a 4.4% increase over the prior year period, and Adjusted EBITDA of $173 million, compared to $194.3 million in Q3 2024.
The company revised its full-year 2025 guidance, lowering revenue to $3.28 billion - $3.3 billion and Adjusted EBITDA to $650 million - $660 million, primarily due to softer-than-expected volumes in its Medicaid business and incremental headwinds from rates and expenses. Adjusted EPS guidance was also revised to $2.35 - $2.45.
Acadia Healthcare announced a realignment of capital spending priorities, with 2026 CapEx expected to be at least $300 million lower than the revised 2025 guidance of $610 million - $630 million, aiming to generate positive adjusted free cash flow for the full year 2026.
Todd Young was appointed as the new Chief Financial Officer, and the company made a decision to cease operations at five facilities that no longer aligned with strategic priorities or demonstrated persistent underperformance.

Nov 6, 2025, 2:00 PM

Transcript

Acadia Healthcare Reports Q3 2025 Results and Lowers Full-Year Outlook

ACHC

Earnings

Guidance Update

Management Change

Acadia Healthcare reported Q3 2025 revenue of $851.6 million, an increase of 4.4% over the third quarter of 2024, and adjusted diluted earnings per share of $0.72.
The company lowered its full-year 2025 guidance for revenue to $3.28 billion to $3.30 billion, Adjusted EBITDA to $650 million to $660 million, and Adjusted earnings per diluted share to $2.35 to $2.45.
This revised outlook is attributed to incremental volume and rate pressures, persistent softness in acute care Medicaid volumes, heightened payor scrutiny, elevated bad debt and denials, and increased startup losses from newly opened facilities.
Acadia is implementing decisive actions to optimize its portfolio and plans to reduce 2026 capital expenditures by at least $300 million compared to 2025 levels to accelerate free cash flow generation.
Todd Young joined as CFO on October 27, 2025, and Dr. Nasser Khan departed as Chief Operating Officer effective November 3, 2025.

Nov 5, 2025, 9:11 PM

8-K

Acadia Healthcare Reports Third Quarter 2025 Results and Lowers Full-Year Outlook

ACHC

Earnings

Guidance Update

Management Change

Acadia Healthcare reported third quarter 2025 revenue of $851.6 million, a 4.4% increase over the third quarter of 2024.
For Q3 2025, net income attributable to Acadia was $36.2 million, or $0.40 per diluted share, and Adjusted EBITDA was $173.0 million.
The company is lowering its full-year 2025 guidance for revenue to $3.28 billion to $3.30 billion, Adjusted EBITDA to $650 million to $660 million, and Adjusted earnings per share to $2.35 to $2.45.
Todd Young joined as CFO on October 27, and Dr. Nasser Khan resigned as COO effective November 3, 2025.
Acadia is taking decisive actions, including reducing 2026 capital expenditures by at least $300 million compared to 2025 levels, to optimize its portfolio and increase free cash flow generation.

Nov 5, 2025, 9:05 PM

Press Release

Acadia Healthcare Company outlines strategic adjustments for 2026 after challenging 2025

ACHC

Profit Warning

New Projects/Investments

Demand Weakening

Acadia Healthcare Company (ACHC) reported a challenging 2025, with volumes below expectations, primarily due to weaker Medicaid volumes and underperforming facilities, especially in Q3.
To address this, ACHC announced plans to reduce 2026 CapEx by at least $300 million compared to 2025 levels, which were guided at $600 million to $650 million. This reduction is expected to accelerate positive free cash flow for the full year 2026.
The company also announced the closure of five facilities that were underperforming or non-strategic, while still planning to add 500 to 700 beds in 2026.
These strategic adjustments are anticipated to drive improved EBITDA growth and an acceleration in free cash flow generation in 2026 and 2027.
No update on full-year 2025 guidance was provided at this time, with further details expected during the Q3 earnings call.

Sep 29, 2025, 1:35 PM

Transcript

Acadia Healthcare Company, Inc. Updates 2026 Guidance and Provides Q3 2025 Interim Operating Result

ACHC

Guidance Update

New Projects/Investments

Acadia Healthcare Company, Inc. (ACHC) announced preliminary guidance for 2026, projecting total capital expenditures to decline by at least $300 million relative to its 2025 guidance of $600 million to $650 million.
The company also expects to add 500 to 700 beds in 2026, which includes beds currently under construction in 2025.
For the third quarter of 2025, Acadia Healthcare reported same facility patient days growth to date of approximately 1.3%.
The company highlighted potential reductions in payments from government and commercial payors and operating difficulties due to the One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, which introduced significant changes to Medicaid financing mechanisms and work requirements.

Sep 29, 2025, 11:05 AM

8-K

Acadia Healthcare Faces Activist Pressure from Engine Capital

ACHC

Board Change

Share Buyback

Legal Proceedings

Engine Capital, an activist hedge fund, has acquired approximately a 3% stake in Acadia Healthcare, placing it among the company's 10 biggest investors.
The fund is advocating for strategic and governance changes, including halting capital-intensive growth projects, prioritizing operational improvements, exploring asset sales, and repurchasing undervalued shares.
Engine Capital also calls for a board refresh to add directors with relevant behavioral health operating experience and capital allocation expertise.
These demands are made amidst ongoing federal investigations by the Department of Justice and SEC into Acadia Healthcare regarding allegations of patient treatment and insurance claims.
Following the report of Engine Capital's stake and demands, Acadia's stock rose 5%.

Sep 24, 2025, 12:09 PM

Morningstar

Earnings Transcripts

Quarterly earnings call transcripts for Acadia Healthcare Company.

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