Healthcare Services Group Inc filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $1.9 billion, rising 4.0% on the year before. That growth rate was down 1.3 percentage points from a quarter earlier.
What stands out
Net income rose 163.9% over the year while free cash flow fell 32.4%, showing reported profit and cash are moving at different speeds. Capital spending rose 10.4% while operating cash flow fell 30.9%, leaving less of the generated cash as a surplus.
What the company earns
Reported profit is running well ahead of the cash. The trailing gross margin was 16.1%. The trailing net margin was 5.6%. Net income over the twelve months was $104.9 million, up 163.9% on the year before.
Cash flow
Spending is outrunning the cash the business brings in, so less is left over. Operating cash flow over the twelve months was $113.2 million, down 30.9% on the year before. Capital spending was $6.5 million, or 0.3% of revenue. Free cash flow, operating cash flow less capital spending, was $106.7 million, down 32.4% on the year before. The free-cash-flow margin was 5.7%, down 3.1 percentage points from a year earlier.
The share base
The average diluted share count fell 4.0% over the year.
How today compares
In the context of past results: today’s free-cash-flow margin of 5.7% is higher than 84% of the company’s own past quarterly readings, which have ranged from −1.1% to 12.1%. Today’s twelve-month revenue growth rate of 4.0% is higher than 42% of past readings (−8.3% to 24.9%).
The valuation angle
Our model translates these figures into value. In our model, growth 5 percentage points lower would lower the value by 23.1%, and 5 percentage points higher would raise it by 30.3%. A free-cash-flow margin 1 percentage point lower would lower it by 16.2%.
What to watch
The next filing will show whether the trends above continue, slow or reverse.
