Who Are the Core Customers of Addus Company?

Addus core customers are predominantly dual-eligible Medicaid and Medicare recipients who need help with activities of daily living (ADLs). This group drives the highest utilization of personal care services, representing roughly 75%-80% of Addus HomeCare customers' service volume and revenue mix in 2025.

Revenue comes mainly from Managed Care Organizations (MCOs) and state Medicaid agencies that contract Addus to serve Medicaid and Medicare recipients. Hospitals, skilled nursing facilities, and referral partners also feed long-term care clients served by Addus HomeCare.

Addus HomeCare customers include elderly clients served by Addus (individual consumers) and institutional buyers (MCOs, state agencies) that underwrite services. Personal care (non-medical) is the core product sold to payers who manage high-need populations.

The commercially critical segment remains personal care for Medicaid-eligible duals; in 2025 this segment accounted for about 75%-80% of total revenue, with hospice and skilled home health making up the remainder. For more on customer pathways and referrals, see Customer Acquisition of Addus Company.

These states combine dense elderly demographics and robust Medicaid and Medicare programs; in fiscal 2025 they accounted for roughly ~35% of Addus HomeCare customers by revenue, driven by state-funded personal care and referrals from hospitals and state agencies.

Sun Belt states (Florida, Arizona, Texas expansion corridors) and suburban care deserts show meaningful uptake as retirees migrate and local providers struggle with workforce shortages; private pay and Medicaid and Medicare recipients Addus enrollments rose in 2025 compared with 2024.

Addus core customers skew toward Medicaid-eligible elderly clients served by Addus and adults with disabilities in states using Managed Long-Term Services and Supports (MLTSS); the scale advantage lets Addus HomeCare customers be placed where smaller rivals fail due to labor constraints.

In 2025 and into 2026, demand accelerated where Medicaid MCOs shift to capitated MLTSS models-MCOs increasingly refer long-term care clients served by Addus HomeCare to in-home care to control costs; this trend lifted referral volumes from hospitals and managed care organizations by mid-2025.

Addus expands Addus HomeCare customers by acquiring clinical assets where it has a strong personal care footprint, capturing more of the patient lifecycle from basic assistance to skilled nursing and hospice; this targets elderly clients served by Addus and Medicaid and Medicare recipients Addus already reaches, while adding private pay customers for Addus HomeCare services.

Maintaining a personal-care identity keeps family caregivers looking for Addus services and long-term care clients served by Addus HomeCare loyal; seamless transitions to home health or hospice reduce churn and lower acquisition costs for new referrals from hospitals and referral partners that send clients to Addus.

Cross-selling clinical services increases average revenue per user (ARPU) and creates ecosystem stickiness: clients with escalating needs (does Addus serve seniors with chronic conditions) stay within Addus rather than switching, improving renewals and deeper usage among veterans care programs available through Addus and adults with disabilities served by Addus services.

The most important growth lever in 2025/2026 is leveraging massive scale in personal care to add clinical services selectively; this preserved a 10% to 12% EBITDA margin profile while expanding capabilities, lowering Addus HomeCare customers acquisition costs and making Addus indispensable to state agencies and managed care organizations working with Addus and value-based care payers.