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  4. [8-K] HEALTHCARE SERVICES GROUP INC Reports Material Event

Healthcare Services Group (NASDAQ: HCSG) swings to Q2 2026 profit

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Healthcare Services Group reported second quarter 2026 revenue of $470.8 million, with Environmental Services contributing $213.2 million at a 13.3% margin and Dietary Services $257.6 million at a 7.5% margin. Cost of services was 84.1% of revenue, and SG&A was $52.6 million, or 9.7% after adjusting for deferred compensation.

Net income for the quarter was $22.7 million, compared with a net loss of $32.4 million a year earlier, and diluted EPS improved to $0.32 from $(0.44). Adjusted EBITDA reached $35.6 million, or 7.6% of revenue. Cash from operations was $21.9 million, or $27.9 million excluding the payroll accrual change.

At quarter end, the company held $200.9 million in cash and marketable securities and had an unutilized $300.0 million credit facility. It repurchased $20.9 million of stock in the quarter, $44.9 million year-to-date, and reaffirmed its 2026 mid-single-digit growth outlook.

Positive

  • Returned to profitability with Q2 2026 net income of $22.7 million versus a net loss of $32.4 million in Q2 2025, alongside diluted EPS improving to $0.32 from $(0.44).
  • Adjusted EBITDA turned positive to $35.6 million in Q2 2026 compared with negative $36.3 million a year earlier, indicating significantly improved operating performance.
  • Maintained strong liquidity with $200.9 million in cash and marketable securities and full access to a $300.0 million revolving credit facility at quarter end.

Negative

  • None.

Filing Explained

This Form 8-K furnishes Healthcare Services Group’s results for the quarter ended June 30, 2026 and reports 8.3 million shares remaining under its repurchase authorization, representing potential future buybacks rather than completed purchases of those shares.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Revenue $470.8 million Revenue for the three months ended June 30, 2026
Q2 2026 Net Income $22.7 million Net income for the three months ended June 30, 2026
Q2 2026 Diluted EPS $0.32 Diluted earnings per share for the quarter ended June 30, 2026
Q2 2026 Adjusted EBITDA $35.6 million Adjusted EBITDA for the three months ended June 30, 2026; 7.6% of revenue
Cash and Marketable Securities $200.9 million Balance at end of second quarter 2026
Revolving Credit Facility $300.0 million Unutilized credit facility available at quarter end
Share Repurchases YTD 2026 $44.9 million Common stock repurchased year-to-date under February 2026 authorization
Adjusted EBITDA financial
"Adjusted EBITDA as a percentage of revenue | 7.6 %"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
share repurchase plan financial
"share repurchases of $20.9 million under previously announced $75.0 million, 12-month share repurchase plan"
A share repurchase plan is when a company uses cash to buy its own stock from the market, reducing the number of shares available to investors. This matters because fewer shares can make each remaining share represent a larger piece of ownership and boost earnings-per-share—like slicing a pizza into fewer pieces so each slice is bigger—and it can signal management thinks the stock is undervalued, though it also means cash won’t be used for other purposes.
effective tax rate financial
"Effective tax rate was reported at 26.8%."
The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.
non-GAAP financial measures financial
"The Company believes that certain non-GAAP financial measures are useful in evaluating operating performance"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
accrued payroll financial
"The accrued payroll adjustment reflects changes in accrued payroll for the three and six months ended June 30"
Revenue $470.8 million from $458.5 million for the three months ended June 30, 2025
Net income $22.7 million from net loss of $32.4 million a year earlier
Diluted EPS $0.32 from $(0.44) a year earlier
Adjusted EBITDA $35.6 million from $(36.3) million a year earlier
Cash from operations $21.9 million from $28.8 million a year earlier
Guidance

Reaffirms 2026 mid-single-digit growth outlook.

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FAQ

What were Healthcare Services Group (HCSG) Q2 2026 revenue and earnings?
Healthcare Services Group reported Q2 2026 revenue of $470.8 million and net income of $22.7 million. This compares with $458.5 million of revenue and a net loss of $32.4 million for the three months ended June 30, 2025.

How did HCSG’s profitability change year over year in Q2 2026?
HCSG moved from a net loss of $32.4 million in Q2 2025 to net income of $22.7 million in Q2 2026. Diluted EPS similarly improved from $(0.44) to $0.32 over the same period.

What is Healthcare Services Group’s 2026 growth outlook?
Healthcare Services Group reaffirmed its 2026 mid-single-digit growth outlook. Management highlighted substantial growth opportunities in the second half of the year and beyond while emphasizing continued disciplined execution across its Environmental and Dietary Services operations.

How strong is HCSG’s liquidity after Q2 2026?
At the end of Q2 2026, HCSG held $200.9 million in cash and marketable securities and had an unutilized $300.0 million credit facility, providing significant liquidity supported by positive operating cash flow during the quarter.

How much stock has Healthcare Services Group repurchased under its 2026 plan?
Under its plan to repurchase $75.0 million of common stock through January 2027, HCSG bought back $20.9 million in Q2 2026 and $44.9 million year-to-date, with 8.3 million shares remaining under the February 2026 authorization.

What non-GAAP metrics did HCSG report for Q2 2026?
HCSG reported EBITDA of $32.8 million and Adjusted EBITDA of $35.6 million, equal to 7.6% of revenue. It also highlighted cash flow from operations excluding the change in payroll accrual as an additional non-GAAP liquidity measure.
FALSE000073101200007310122026-07-222026-07-22

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 22, 2026

HEALTHCARE SERVICES GROUP, INC.
(Exact name of registrant as specified in its charter)

Commission File Number: 0-12015
Pennsylvania23-2018365
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification number)

3220 Tillman Drive, Suite 300, Bensalem, Pennsylvania
(Address of principal executive office)

19020
(Zip Code)

Registrant's telephone number, including area code: 215-639-4274
    
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

( ☐ )    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
( ☐ )    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
( ☐ )    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
( ☐ )    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueHCSGNASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02Results of Operations and Financial Condition.

On July 22, 2026, Healthcare Services Group, Inc. (the "Company") issued a press release (the "Press Release") announcing its earnings for the three months ended June 30, 2026. A copy of the Press Release is being furnished hereto as Exhibit 99.1 and is hereby incorporated by reference to this Current Report.

The information furnished herein, including Exhibit 99.1 shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01Financial Statements and Exhibits.

( a )    Not applicable
( b )    Not applicable
( c )    Not applicable
( d )    Exhibits.

Exhibit NumberDescription
99.1
Press Release and financial tables dated July 22, 2026, issued by Healthcare Services Group, Inc.
104Cover page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

HEALTHCARE SERVICES GROUP, INC.
Date: July 22, 2026By:/s/ Vikas Singh
Name: Vikas Singh
Title: Executive Vice President & Chief Financial Officer


Exhibit 99.1
Healthcare Services Group
Reports Second Quarter Results

Delivers Strong Results
Reaffirms 2026 Growth Outlook

•Revenue of $470.8 million.
•Net income and diluted EPS of $22.7 million and $0.32.
•Cash flow from operations of $21.9 million; cash flow from operations, excluding the change in payroll accrual, of $27.9 million.
•Share repurchases of $20.9 million under previously announced $75.0 million, 12-month share repurchase plan.
•Reaffirms 2026 mid-single-digit growth outlook.

BENSALEM, PA--(BUSINESS WIRE)-- Healthcare Services Group, Inc. (NASDAQ:HCSG) today reported results for the three months ended June 30, 2026.

CEO Commentary

Ted Wahl, Chief Executive Officer, stated, “I am pleased with our second quarter results, which underscore the strength of our business model and the continued, disciplined execution across our operations. Looking ahead, we are reaffirming our 2026 mid-single-digit growth outlook, with a focus on realizing the substantial growth opportunities in the second half of the year and beyond.”

Second Quarter Results

•Revenue was reported at $470.8 million.
◦Segment revenues and margins for Environmental and Dietary Services were reported at $213.2 million and 13.3% and $257.6 million and 7.5%, respectively.
•Cost of services was reported at $396.0 million or 84.1%.
◦The Company’s goal is to manage cost of services in the 86% range.
•SG&A was reported at $52.6 million. After adjusting for the $6.9 million increase in deferred compensation, SG&A was $45.7 million or 9.7%.
◦The Company’s goal is to manage SG&A in the 9.5% to 10.5% range, with the longer term goal of managing those costs into the 8.5% to 9.5% range.
•Other income was reported at $8.8 million. After adjusting for the $6.9 million increase in deferred compensation, other income was $1.9 million.
•Effective tax rate was reported at 26.8%.
◦The Company expects its 2026 effective tax rate to be approximately 25.0%.
•Net income and diluted EPS were reported at $22.7 million and $0.32, respectively.

Balance Sheet and Liquidity

The Company’s primary sources of liquidity are cash flow from operating activities, cash and cash equivalents, and its revolving credit facility. Cash flow from operations was reported at $21.9 million. After adjusting for the $6.0 million decrease in the payroll accrual, cash flow from operations was $27.9 million. As of the end of the second quarter, the Company had cash and marketable securities of $200.9 million and an unutilized $300.0 million credit facility.

Share Repurchases

1
Exhibit 99.1
In February 2026, the Company announced its plan to further accelerate the pace of its share buybacks and repurchase $75.0 million of its common stock through January 2027. In the second quarter, the Company repurchased $20.9 million of its common stock. Year-to-date, the Company has purchased $44.9 million of its common stock. The Company has 8.3 million shares remaining under its February 2026 share repurchase authorization.

Conference Call and Upcoming Events

The Company will host a conference call on Wednesday, July 22, 2026, at 8:30 a.m. Eastern Time to discuss its results for the three months ended June 30, 2026. The call may be accessed via phone at 1 (833) 461-5787, Conference ID: 594377303. The call will be simultaneously webcast under the “Events & Presentations” section of the Investor Relations page on the Company’s website, www.hcsg.com. A replay of the webcast will also be available on the website for one year following the date of the earnings call.

The Company will be participating in the RBC Nashville Bus Tour on August 12 in Nashville, TN. The Company will also be attending and presenting at Baird’s Global Healthcare Conference on September 15 in New York, NY. Additionally, the Company will be participating in a Non-Deal Roadshow hosted by Oppenheimer in New York, NY and Boston, MA on September 22 & 23.

About Healthcare Services Group, Inc.

Healthcare Services Group (NASDAQ: HCSG) is a leader in managing Environmental and Dietary services within the healthcare industry. With 50 years of experience, HCSG aims to provide improved operational, regulatory, and financial outcomes for its clients.


2

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This release and any schedules incorporated by reference into it may contain forward-looking statements within the meaning of federal securities laws, which are not historical facts but rather are based on current expectations, estimates and projections about our business and industry, and our beliefs and assumptions. Words such as “believes,” “anticipates,” “plans,” “expects,” “estimates,” “will,” “goal,” “intend” and similar expressions are intended to identify forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation by us that any of our plans will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Such forward-looking information is also subject to various risks and uncertainties. Such risks and uncertainties include, but are not limited to, risks arising from our providing services to the healthcare industry and primarily providers of long-term care; credit and collection risks associated with the healthcare industry; the impact of bank failures; our claims experience related to workers’ compensation, general liability and other insurance programs; the effects of changes in, or interpretations of laws and regulations governing the healthcare industry, our workforce and services provided, including state and local regulations pertaining to the taxability of our services and other labor-related matters such as minimum wage increases; the Company's expectations with respect to selling, general, and administrative expense; the impacts of past or future cyber attacks or breaches; global events including ongoing international conflicts and increased energy prices; and the risk factors described in Part I of our Form 10-K for the fiscal year ended December 31, 2025 under “Government Regulation of Customers,” “Service Agreements and Collections,” and “Competition” and under Item 1A. “Risk Factors” in such Form 10-K.

These factors, in addition to delays in payments from customers and/or customers undergoing restructurings, have resulted in, and could continue to result in, significant additional bad debts in the near future. Additionally, our operating results have been in the past and could in the future be adversely affected by continued inflation particularly if increases in the costs of labor and labor-related costs, materials, supplies and equipment used in performing services (including the impact of potential tariffs) cannot be passed on to our customers.

In addition, we believe that to improve our financial performance we must continue to obtain service agreements with new customers, retain and provide new services to existing customers, achieve modest price increases on current service agreements with existing customers and/or maintain internal cost reduction strategies at our various operational levels. Furthermore, we believe that our ability to sustain the internal development of managerial personnel is an important factor impacting future operating results and the successful execution of our projected growth strategies. There can be no assurance that we will be successful in that regard.

USE OF NON-GAAP FINANCIAL INFORMATION

To supplement HCSG’s consolidated financial information, which are prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), the Company believes that certain non-GAAP financial measures are useful in evaluating operating performance and comparing such performance to other companies.

The Company is presenting cash flow from operations (excluding the change in payroll accrual), earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA excluding items impacting comparability (“Adjusted EBITDA”). We cannot provide a reconciliation of forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. The presentation of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for financial statements prepared in accordance with GAAP.

Company Contacts:
Theodore Wahl
President and Chief Executive Officer
Vikas Singh
Executive Vice President and Chief Financial Officer
Matthew J. McKee
Chief Communications Officer
215-639-4274
investor-relations@hcsgcorp.com

3

HEALTHCARE SERVICES GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
(in thousands, except per share data)

For the Three Months EndedFor the Six Months Ended
June 30,June 30,
2026202520262025
Revenue$470,808 $458,491 $933,574 $906,153 
Operating costs and expenses:
Cost of services396,015 455,533 782,946 835,224 
Selling, general and administrative52,585 49,163 94,582 94,129 
Income (loss) from operations22,208 (46,205)56,046 (23,200)
Other income, net8,795 4,317 9,498 5,206 
Income (loss) before income taxes31,003 (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)
Net income (loss) per common share
Basic$0.33 $(0.44)$0.70 $(0.21)
Diluted$0.32 $(0.44)$0.69 $(0.21)
Weighted-average common shares outstanding
Basic68,758 73,161 69,311 73,414 
Diluted69,905 73,161 70,479 73,414 

4

HEALTHCARE SERVICES GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
June 30, 2026December 31, 2025
Cash and cash equivalents$123,406 $125,189 
Restricted cash equivalents54 5,577 
Marketable securities, at fair value41,316 42,774 
Restricted marketable securities, at fair value36,089 30,352 
Accounts receivable, net292,794 281,303 
Notes receivable — short-term, net26,676 31,243 
Other current assets 48,190 59,977 
Total current assets568,525 576,415 
Property and equipment, net29,922 27,586 
Notes receivable — long-term, net34,862 25,209 
Goodwill85,804 79,797 
Other intangible assets, net13,112 6,964 
Deferred compensation funding59,141 55,909 
Other assets29,491 22,373 
Total assets$820,857 $794,253 
Accrued insurance claims — current$22,124 $24,371 
Other current liabilities165,994 146,004 
Total current liabilities188,118 170,375 
Accrued insurance claims — long-term42,619 46,142 
Deferred compensation liability — long-term59,141 56,276 
Lease liability — long-term11,328 9,659 
Other long-term liabilities809 1,591 
Stockholders' equity518,842 510,210 
Total liabilities and stockholders' equity$820,857 $794,253 
5

HEALTHCARE SERVICES GROUP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(Unaudited)

Reconciliation of GAAP net income (loss) to EBITDA and Adjusted EBITDAFor the Three Months EndedFor the Six Months Ended
June 30,June 30,
2026202520262025
 (in thousands)
GAAP net income (loss)$22,696 $(32,366)$48,756 $(15,138)
Income tax provision (benefit)8,307 (9,522)16,788 (2,856)
Interest, net(1,758)(1,976)(4,013)(4,186)
Depreciation and amortization(1)
3,520 5,001 7,326 8,879 
EBITDA$32,765 $(38,863)$68,857 $(13,301)
Share-based compensation2,821 2,541 5,585 6,279 
Adjusted EBITDA$35,586 $(36,322)$74,442 $(7,022)
Adjusted EBITDA as a percentage of revenue7.6 %(7.9)%8.0 %(0.8)%

1.Includes right-of-use asset depreciation of $1.4 million and $3.3 million for the three and six months ended June 30, 2026, respectively, and $2.1 million and $4.2 million for the three and six months ended June 30, 2025, respectively.


Reconciliation of GAAP cash from operations to cash flow from operations (excluding the change in payroll accrual)For the Three Months EndedFor the Six Months Ended
June 30,June 30,
2026202520262025
(in thousands)
GAAP cash from operations$21,870 $28,787 $65,600 $56,288 
Change in accrued payroll(1)
6,024 (20,256)(14,295)(15,665)
Cash flow from operations (excluding the change in payroll accrual)$27,894 $8,531 $51,305 $40,623 

1.The accrued payroll adjustment reflects changes in accrued payroll for the three and six months ended June 30, 2026 and 2025.The Company processes payroll on set weekly and bi-weekly schedules, and the timing of payments may result in operating cash flow increases or decreases which are not indicative of the Company’s quarterly cash flow performance.
6

Source: View Original Filing on SEC EDGAR

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