Aveanna Healthcare Holdings, Inc. Segments Disclosure
17. SEGMENT INFORMATION
The Company’s operating segments have been identified based upon how management has organized the business by services provided to customers and how the CODM manages the business and allocates resources. The CODM for the Company is the . The Company has three operating segments and three reportable segments, Private Duty Services, Home Health & Hospice, and Medical Solutions. The PDS segment predominantly includes private duty skilled nursing services, non-clinical and personal care services, and pediatric therapy services and is primarily reimbursed by Medicaid and Medicaid MCO. The HHH segment provides home health and hospice services to predominately elderly patients and is primarily reimbursed by Medicare. Through the MS segment, the Company provides enteral nutrition and other products to adults and children, delivered on a periodic or as-needed basis, primarily reimbursed by Medicaid and Medicaid MCO.
The CODM evaluates segment performance using gross margin (and gross margin percentage). Gross margin includes revenue less all costs of revenue, excluding depreciation and amortization, but excludes branch and regional administrative expenses, corporate expenses and other non-field expenses. Revenue and cost presented below for the
PDS and HHH segments primarily relate to patient services, while the MS segment’s revenue and cost are primarily from products. The CODM does not evaluate a measure of assets when assessing performance. The CODM uses gross margin and gross margin percentage to assess the performance of each segment compared to historical trends, forecasted performance, and industry peers, as well as ensure that each segment has appropriate operational support to manage performance.
Results shown for the fiscal years ended January 3, 2026 and December 28, 2024 are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. There are no intersegment transactions.
The following tables summarize the Company’s segment information for the fiscal years ended January 3, 2026 and December 28, 2024 (amounts in thousands):
|
For the fiscal year ended January 3, 2026 |
|
||||||||||
|
PDS |
|
HHH |
|
MS |
|
Total |
|
||||
Revenue |
$ |
2,001,147 |
|
$ |
248,557 |
|
$ |
183,495 |
|
$ |
2,433,199 |
|
Cost of revenue, excluding depreciation and amortization |
|
1,409,376 |
|
|
114,299 |
|
|
99,043 |
|
|
1,622,718 |
|
Gross margin |
$ |
591,771 |
|
$ |
134,258 |
|
$ |
84,452 |
|
$ |
810,481 |
|
Gross margin percentage |
|
29.6 |
% |
|
54.0 |
% |
|
46.0 |
% |
|
33.3 |
% |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||
|
For the fiscal year ended December 28, 2024 |
|
||||||||||
|
PDS |
|
HHH |
|
MS |
|
Total |
|
||||
Revenue |
$ |
1,634,609 |
|
$ |
217,805 |
|
$ |
172,092 |
|
$ |
2,024,506 |
|
Cost of revenue, excluding depreciation and amortization |
|
1,190,148 |
|
|
101,310 |
|
$ |
97,506 |
|
|
1,388,964 |
|
Gross margin |
$ |
444,461 |
|
$ |
116,495 |
|
$ |
74,586 |
|
$ |
635,542 |
|
Gross margin percentage |
|
27.2 |
% |
|
53.5 |
% |
|
43.3 |
% |
|
31.4 |
% |
|
|
|
|
|
|
|
|
|
||||
|
For the fiscal years ended |
|
||||
Segment Reconciliation: |
January 3, 2026 |
|
December 28, 2024 |
|
||
Total segment gross margin |
$ |
810,481 |
|
$ |
635,542 |
|
Branch and regional administrative expenses |
|
374,496 |
|
|
352,814 |
|
Corporate expenses |
|
163,310 |
|
|
125,402 |
|
Depreciation and amortization |
|
10,538 |
|
|
10,778 |
|
Acquisition-related costs |
|
3,813 |
|
|
1,490 |
|
Other operating expense |
|
1,861 |
|
|
5,271 |
|
Operating income |
|
256,463 |
|
|
139,787 |
|
Interest income |
|
2,831 |
|
|
498 |
|
Interest expense |
|
(140,086 |
) |
|
(156,602 |
) |
Loss on debt extinguishment |
|
(5,862 |
) |
|
- |
|
Other (expense) income |
|
(6,398 |
) |
|
21,389 |
|
Income before income taxes |
$ |
106,948 |
|
$ |
5,072 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 19, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.