HCSG

EX-99.1

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EX-99.1

Document

Exhibit 99.1

Healthcare Services Group

Reports Third Quarter Results

Delivers Strong Results

Raises 2027 Growth Expectations

•Revenue of $479.6 million

•Net income and diluted EPS of $24.9 million and $0.36

•Cash flow from operations of $30.2 million; cash flow from operations, excluding the change in payroll accrual, of $20.7 million

•Expands footprint in senior living and hospitality markets through the acquisition of NEXDINE Hospitality

•Raises 2027 revenue growth outlook from mid single-digits to low double-digits

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

Ted Wahl, Chief Executive Officer, stated, “Our strong third quarter results reflect the underlying strength of our business fundamentals and disciplined operational execution. The organic growth inflection we planned for, and are now delivering, sets the stage for fourth quarter revenue in the range of $535 to $545 million and low double-digit top-line growth in 2027.”

Mr. Wahl continued, “Our acquisition of NEXDINE Hospitality in early October represents a significant milestone, deepening our health and hospitality services capabilities and unlocking new growth pathways in senior living and hospitality-driven markets. We are excited to partner with the NEXDINE team in their next phase of growth and innovation.”

Mr. Wahl concluded, “Looking ahead, the strong demand for our services, our expanded operational expertise, and extraordinary team members give us great confidence in our growth trajectory across healthcare, senior living, and campus environments. With the industry at the beginning of a multi-decade demographic tailwind, our unified health and hospitality services platform strategically positions us to fulfill our Vision and drive sustained long-term value creation for our shareholders.”

Third Quarter Results

•Revenue was reported at $479.6 million.

◦Segment revenues and margins for Environmental and Dietary Services were reported at $217.2 million and 13.3% and $262.4 million and 8.7%, respectively.

•Cost of services was reported at $399.2 million or 83.2%.

◦The Company’s goal is to manage cost of services in the 86% range.

•SG&A was reported at $48.5 million. After adjusting for the $0.6 million decrease in deferred compensation, SG&A was $49.1 million or 10.2%.

◦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.

•Effective tax rate was reported at 26.2%.

◦The Company expects its full-year effective tax rate to be approximately 25.0%.

•Net income and diluted EPS were reported at $24.9 million and $0.36, respectively.

Balance Sheet and Liquidity

The Company’s primary sources of liquidity remain cash flow from operating activities, cash and cash equivalents, and its revolving credit facility. Cash flow from operations was reported at $30.2 million.

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Exhibit 99.1

After adjusting for the $9.5 million increase in the payroll accrual, cash flow from operations was $20.7 million. As of the end of the third quarter, the Company had cash and marketable securities of $204.3 million and an unutilized $300.0 million credit facility.

NEXDINE Hospitality Acquisition

On October 6, 2026, the Company completed the acquisition of NEXDINE Hospitality for an upfront purchase price of $93.5 million, funded with cash on hand. NEXDINE will continue to operate as a wholly-owned subsidiary of HCSG, retaining its brand identity and leadership team, and is expected to contribute over $150 million in annual revenue at comparable margins to the Company’s while being immediately accretive to earnings.

Genesis Bankruptcy Update

As a result of recent key developments in the Genesis Bankruptcy case, including the court approved sale of Genesis to 101 W. State Street on October 14, 2026, the Company recorded an estimated recovery of $6.1 million. There remains a substantially higher potential upper-range recovery, subject to certain variables and contingencies. The resolution of such variables and contingencies are not known and cannot be reasonably estimated at this time.

Share Repurchases

Under its February 2026 plan to repurchase $75.0 million of common stock through January 2027, the Company repurchased $11.7 million of common stock during the third quarter. Year to date, the Company has repurchased $56.6 million of common stock and has 7.7 million shares remaining under its authorization.

Conference Call and Upcoming Events

The Company will host a conference call on Wednesday, October 21, 2026, at 8:30 a.m. Eastern Time to discuss its results for the three months ended September 30, 2026. The call may be accessed via phone at (833) 461-5787, Conference ID: 231251110. The call will be simultaneously webcast under the "Events & Presentations" section of the Investor Relations page

EX-99.1

2 ex99-2026xq2xpressrelease.htm

EX-99.1

Document

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

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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.

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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 oblig

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