Encompass Health Corporation (EHC) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 10, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Aug 7, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the EHC SEC filings page.
Encompass Health Corporation (EHC) reported $6.2B in revenue over the twelve months to Jun 30, 2026, up 9.5% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Cash generation is increasingly funding expansion as capital spending stays high and leverage falls.
The business is converting more of its earnings into discretionary cash: from FY2022 to FY2025, net income rose from$271M to$566M while free cash flow rose from$141M to$439M . That widening relationship indicates profit growth is increasingly surviving the capital-spending burden, rather than merely appearing in accrual accounting.
Leverage has been reduced structurally: debt-to-equity fell from 2.1x in FY2022 to 1.0x in FY2025, while total equity increased from
This is not an asset-light growth pattern: capital expenditures reached
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Encompass Health Corporation's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Not available for Encompass Health Corporation, and counted as zero in the overall score.
Encompass Health Corporation's revenue grew 10.5% year-over-year to $5.9B, a solid pace of expansion. This earns a growth score of 68/100.
Encompass Health Corporation has a moderate D/E ratio of 1.00. This balance of debt and equity financing earns a leverage score of 47/100.
Encompass Health Corporation's current ratio of 1.08 is below the typical benchmark, resulting in a score of 23/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Encompass Health Corporation has a free cash flow margin of 7.4%, earning a moderate score of 54/100. The company generates positive cash flow after capital investments, but with room for improvement.
Not available for Encompass Health Corporation, and counted as zero in the overall score.
Encompass Health Corporation passes 8 of 8 computable financial strength tests (1 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), all 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Encompass Health Corporation generates $2.08 in operating cash flow ($1.2B OCF vs $566.2M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Encompass Health Corporation generated $1.6B in revenue in Q2 2026. This represents an increase of 9.6% from the same quarter a year earlier. Against the prior quarter it is up 0.7%.
Encompass Health Corporation reported $153.9M in net income in Q2 2026. This represents an increase of 8.3% from the same quarter a year earlier. Against the prior quarter it is down 20.9%.
Encompass Health Corporation earned $1.54 per diluted share (EPS) in Q2 2026. This represents an increase of 10.8% from the same quarter a year earlier. Against the prior quarter it is down 20.2%.
Not reported for Q2 2026.
Cash & Balance Sheet
Encompass Health Corporation generated $62.3M in free cash flow in Q2 2026, representing cash available after capex. This represents a decrease of 45.0% from the same quarter a year earlier. Against the prior quarter it is down 58.7%.
Encompass Health Corporation held $107.7M in cash against $2.6B in long-term debt as of Q2 2026.
Encompass Health Corporation paid $0.19 per share in dividends in Q2 2026. This represents an increase of 11.8% from the same quarter a year earlier. It is unchanged from the prior quarter.
Margins & Returns
Encompass Health Corporation's net profit margin was 9.6% in Q2 2026, showing the share of revenue converted to profit. This is down 0.1 percentage points from the same quarter a year earlier. Against the prior quarter it is down 2.6 percentage points.
Encompass Health Corporation's ROE was 5.9% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is down 0.3 percentage points from the same quarter a year earlier. Against the prior quarter it is down 1.8 percentage points.
Not reported for Q2 2026.
Not reported for Q2 2026.
Capital Allocation
Encompass Health Corporation spent $74.2M on share buybacks in Q2 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 200.4% from the same quarter a year earlier. Against the prior quarter it is up 3.6%.
Encompass Health Corporation invested $220.3M in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 40.4% from the same quarter a year earlier. Against the prior quarter it is up 35.7%.
Not reported for Q2 2026.
EHC Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.6B+9.6% | $1.6B+9.0% | $1.5B+9.9% | $1.5B+9.4% | $1.5B+12.0% | $1.5B+10.6% | $1.4B+12.7% | $1.4B+11.9% |
| SG&A Expenses | $62.6M+5.4% | $58.2M+11.3% | $68.4M+25.5% | $56.1M+3.9% | $59.4M+17.6% | $52.3M+4.2% | $54.5M+2.6% | $54.0M+8.4% |
| Interest Expense | $32.8M+7.9% | $31.8M0.0% | $30.2M-8.5% | $30.8M-11.7% | $30.4M-11.4% | $31.8M-9.7% | $33.0M-5.4% | $34.9M-2.8% |
| Income Tax | $53.6M+5.1% | $56.4M+35.6% | $55.4M+47.3% | $44.9M+24.7% | $51.0M+33.2% | $41.6M+8.6% | $37.6M+1.1% | $36.0M+18.8% |
| Net Income | $153.9M+8.3% | $194.5M+28.4% | $146.1M+20.8% | $126.5M+16.9% | $142.1M+24.5% | $151.5M+34.7% | $120.9M+38.0% | $108.2M+26.8% |
| EPS (Basic) | $1.55+9.9% | $1.96+30.7% | $1.45+20.8% | $1.26+16.7% | $1.41+24.8% | $1.50+33.9% | $1.20+37.9% | $1.08+27.1% |
| EPS (Diluted) | $1.54+10.8% | $1.93+30.4% | $1.43+21.2% | $1.24+17.0% | $1.39+24.1% | $1.48+34.5% | $1.18+38.8% | $1.06+26.2% |
| Diluted Shares (Avg) | 100M-2.2% | 101M-1.5% | N/A | 102M+0.2% | 102M+0.3% | 102M-0.1% | N/A | 102M+0.7% |
Not reported in any period shown, so not listed: Cost of Revenue, Gross Profit, R&D Expenses, Operating Income, EBITDA.
EHC Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $7.5B+9.9% | $7.3B+10.1% | $7.1B+8.5% | $6.9B+6.3% | $6.8B+6.2% | $6.6B+6.6% | $6.5B+7.1% | $6.5B+8.3% |
| Current Assets | $1.0B+13.4% | $1.0B+13.0% | $905.9M+2.1% | $869.8M-6.9% | $918.1M-2.1% | $910.9M-2.0% | $886.9M+5.4% | $933.9M+14.8% |
| Cash & Equivalents | $107.7M+8.7% | $110.5M+15.3% | $72.2M-15.5% | $48.7M-67.1% | $99.1M-35.8% | $95.8M-28.7% | $85.4M+23.6% | $147.8M+48.2% |
| Short-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Accounts Receivable | N/A | N/A | $613.4M+3.4% | N/A | N/A | N/A | $593.0M-1.1% | N/A |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $1.3B+1.6% | $1.3B+2.6% | $1.3B+2.6% | $1.3B+1.5% | $1.3B+1.5% | $1.3B+0.2% | $1.3B+0.2% | $1.3B+0.2% |
| Total Liabilities | $4.0B+8.1% | $3.9B+6.5% | $3.8B+3.5% | $3.7B-1.4% | $3.7B-4.2% | $3.7B-3.2% | $3.7B-3.1% | $3.7B-1.1% |
| Current Liabilities | $873.4M+1.0% | $876.8M+2.4% | $836.4M-0.5% | $762.0M-15.1% | $865.1M+24.6% | $856.0M+25.8% | $841.0M+28.1% | $897.4M+40.4% |
| Non-Current Liabilities | $3.1B+10.3% | $3.1B+7.8% | $3.0B+4.7% | $2.9B+2.9% | $2.8B-10.5% | $2.8B-9.5% | $2.8B-9.7% | $2.8B-9.6% |
| Long-Term Debt | $2.6B+12.0% | $2.5B+8.5% | $2.4B+3.7% | $2.4B+2.1% | $2.3B-13.6% | $2.3B-13.0% | $2.4B-12.2% | $2.3B-12.9% |
| Total Equity | $2.6B+13.9% | $2.5B+16.8% | $2.4B+18.0% | $2.4B+21.1% | $2.3B+24.0% | $2.2B+24.0% | $2.1B+25.5% | $2.0B+25.6% |
| Retained Earnings | N/A | N/A | $1.3B+61.8% | N/A | N/A | N/A | $796.7M+96.0% | N/A |
Not reported in any period shown, so not listed: Inventory.
EHC Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $282.6M+4.6% | $313.1M+8.5% | $346.0M+24.1% | $270.8M+1.1% | $270.2M+24.3% | $288.6M+20.9% | $278.8M+38.7% | $267.8M+24.4% |
| Depreciation & Amortization | $90.4M+13.1% | $87.3M+10.2% | $86.4M+10.8% | $82.4M+5.1% | $79.9M+9.6% | $79.2M+12.7% | $78.0M+11.3% | $78.4M+16.5% |
| Stock-Based Compensation | $13.8M-3.5% | $11.5M+21.1% | N/A | $14.3M+10.9% | $14.3M+5.1% | $9.5M+2.2% | N/A | $12.9M |
| Capital Expenditures | $220.3M+40.4% | $162.4M-0.4% | $229.3M+15.4% | $187.1M+26.8% | $156.9M0.0% | $163.1M+17.0% | $198.7M-6.1% | $147.5M-1.5% |
| Free Cash Flow | $62.3M-45.0% | $150.7M+20.1% | $116.7M+45.7% | $83.7M-30.4% | $113.3M+87.3% | $125.5M+26.3% | $80.1M+848.6% | $120.3M+83.7% |
| Investing Cash Flow | -$235.6M-42.4% | -$150.1M+5.3% | -$239.4M-17.5% | -$201.3M-24.6% | -$165.4M-4.4% | -$158.5M-22.2% | -$203.7M+2.1% | -$161.5M+0.4% |
| Financing Cash Flow | -$76.9M+14.7% | -$102.5M+21.4% | -$97.4M+35.5% | -$113.2M-26.5% | -$90.2M-81.9% | -$130.4M-221.2% | -$150.9M-404.7% | -$89.5M-36.0% |
| Dividends Paid | $18.9M+10.5% | $20.3M+12.8% | $19.0M+11.8% | $17.0M+13.3% | $17.1M+14.8% | $18.0M+13.2% | $17.0M+14.1% | $15.0M0.0% |
| Share Buybacks | $74.2M+200.4% | $71.6M+123.1% | $76.3M+917.3% | $24.9M+266.2% | $24.7M+47.0% | $32.1M | $7.5M | $6.8M |
EHC Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Net Margin | 9.6%-0.1pp | 12.3%+1.9pp | 9.5%+0.9pp | 8.6%+0.5pp | 9.8%+1.0pp | 10.4%+1.9pp | 8.6%+1.6pp | 8.0%+0.9pp |
| Return on Equity | 5.9%-0.3pp | 7.7%+0.7pp | 6.0%+0.1pp | 5.3%-0.2pp | 6.2%0.0pp | 7.0%+0.6pp | 5.9%+0.5pp | 5.5%+0.1pp |
| Return on Assets | 2.1%0.0pp | 2.7%+0.4pp | 2.1%+0.2pp | 1.8%+0.2pp | 2.1%+0.3pp | 2.3%+0.5pp | 1.8%+0.4pp | 1.7%+0.2pp |
| Current Ratio | 1.19+0.1x | 1.17+0.1x | 1.080.0x | 1.14+0.1x | 1.06-0.3x | 1.06-0.3x | 1.05-0.2x | 1.04-0.2x |
| Debt-to-Equity | 1.000.0x | 1.00-0.1x | 1.00-0.1x | 1.01-0.2x | 1.02-0.4x | 1.08-0.5x | 1.14-0.5x | 1.20-0.5x |
| Asset Turnover | 0.210.0x | 0.220.0x | 0.220.0x | 0.220.0x | 0.210.0x | 0.220.0x | 0.210.0x | 0.210.0x |
| FCF Margin | 3.9%-3.9pp | 9.5%+0.9pp | 7.6%+1.9pp | 5.7%-3.2pp | 7.8%+3.1pp | 8.6%+1.1pp | 5.7%+6.6pp | 8.9%+3.5pp |
Not reported in any period shown, so not listed: Gross Margin, Operating Margin.
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Encompass Health Corporation EHC | FY2025 | $5.9B | $566.2M | 9.5% | $12.2B | 32/100 |
| Universal Health Services, Inc. UHS | FY2025 | $17.4B | $1.5B | 8.6% | $10.5B | 54/100 |
| Fresenius Medical Care AG FMS | FY2016 | $17.9B | $1.2B | 6.9% | $11.2B | — |
| Tenet Healthcare Corporation New THC | FY2025 | $21.3B | $2.4B | 11.1% | $21.2B | 56/100 |
| The Ensign Group, Inc. ENSG | FY2025 | $5.1B | $344.0M | 6.8% | $10.0B | 58/100 |
| DaVita Inc. DVA | FY2025 | $13.6B | $1.1B | 7.9% | $11.4B | 56/100 |
Where Encompass Health Corporation Ranks
Frequently Asked Questions
What is Encompass Health Corporation's annual revenue?
Encompass Health Corporation (EHC) reported $5.9B in total revenue for fiscal year 2025. This represents a 10.5% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Encompass Health Corporation's revenue growing?
Encompass Health Corporation (EHC) revenue grew by 10.5% year-over-year, from $5.4B to $5.9B in fiscal year 2025.
Is Encompass Health Corporation profitable?
Yes, Encompass Health Corporation (EHC) reported a net income of $566.2M in fiscal year 2025, with a net profit margin of 9.5%.
How much debt does Encompass Health Corporation have?
As of fiscal year 2025, Encompass Health Corporation (EHC) had $72.2M in cash and equivalents against $2.4B in long-term debt.
What is Encompass Health Corporation's net profit margin?
Encompass Health Corporation (EHC) had a net profit margin of 9.5% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Encompass Health Corporation pay dividends?
Yes, Encompass Health Corporation (EHC) paid $0.72 per share in dividends during fiscal year 2025.
What is Encompass Health Corporation's return on equity (ROE)?
Encompass Health Corporation (EHC) has a return on equity of 23.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Encompass Health Corporation's free cash flow?
Encompass Health Corporation (EHC) generated $439.2M in free cash flow during fiscal year 2025. This represents a 21.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Encompass Health Corporation's operating cash flow?
Encompass Health Corporation (EHC) generated $1.2B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Encompass Health Corporation's total assets?
Encompass Health Corporation (EHC) had $7.1B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Encompass Health Corporation's capital expenditures?
Encompass Health Corporation (EHC) invested $736.4M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Encompass Health Corporation's current ratio?
Encompass Health Corporation (EHC) had a current ratio of 1.08 as of fiscal year 2025, which is considered adequate.
What is Encompass Health Corporation's debt-to-equity ratio?
Encompass Health Corporation (EHC) had a debt-to-equity ratio of 1.00 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Encompass Health Corporation's return on assets (ROA)?
Encompass Health Corporation (EHC) had a return on assets of 8.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Encompass Health Corporation's P/E ratio?
Encompass Health Corporation (EHC) trades at 19.6x earnings, its market capitalization divided by net income of $621.0M net income, trailing 12 months to June 30, 2026. The market capitalization is $12.2B as of Oct 10, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Encompass Health Corporation's price-to-sales ratio?
Encompass Health Corporation (EHC) trades at 2.0x sales, its market capitalization divided by revenue of $6.2B revenue, trailing 12 months to June 30, 2026. The market capitalization is $12.2B as of Oct 10, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Encompass Health Corporation's Piotroski F-Score?
Encompass Health Corporation (EHC) has a Piotroski F-Score of 8 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Encompass Health Corporation's earnings high quality?
Encompass Health Corporation (EHC) has an earnings quality ratio of 2.08x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Encompass Health Corporation?
Encompass Health Corporation (EHC) scores 32 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.