ehab-20250305
false000180373700018037372025-03-052025-03-05

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): March 5, 2025
Enhabit, Inc.
(Exact name of Registrant as specified in its Charter)

Delaware001-4140647-2409192
(State or Other Jurisdiction(Commission File Number)(IRS Employer
 of Incorporation)Identification No.)
6688 N. Central Expressway, Suite 1300, Dallas, Texas 75206
(Address of Principal Executive Offices, Including Zip Code)
(214) 239-6500
(Registrant’s Telephone Number, Including Area Code)
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 communication 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, par value $0.01 per shareEHABNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.     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. ☐





Item 2.02. Results of Operations and Financial Condition.*
On March 5, 2025, Enhabit, Inc. (the “Company”) issued a press release reporting the financial results of the Company for the quarter and year ended December 31, 2024. A copy of the press release is attached to this report as Exhibit 99.1 and incorporated herein by reference.
Item 7.01. Regulation FD Disclosure.*
A copy of the supplemental information which will be discussed during the Company’s earnings call at 10:00 a.m. Eastern Time on Thursday March 6, 2025 is attached to this report as Exhibit 99.2 and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d)    Exhibits.
Exhibit Number
Description
104Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document.


* The information in Item 2.02 and Item 7.01, including Exhibit 99.1 and Exhibit 99.2, is being “furnished” and shall not be deemed “filed” for 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 and shall not be incorporated into any filing under the Securities Act of 1933, as amended, or the Exchange Act, unless specifically identified as being incorporated therein by reference.


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.
ENHABIT, INC.
By:/s/ Dylan Black
Name:Dylan Black
Title:General Counsel
Dated: March 5, 2025

Exhibit 99.1

enhabit_hhhxlogoxverticalxa.jpg


Enhabit Reports Fourth Quarter Results and Issues Full-Year 2025 Guidance
Company to host a conference call tomorrow, March 6, 2025, at 10 a.m. EST
DALLAS, TX – March 5, 2025 – Enhabit, Inc. (NYSE: EHAB), a leading home health and hospice care provider, today reported its results of operations for the fourth quarter ended Dec. 31, 2024.
“Enhabit is exiting 2024 having executed specific strategies that set us up for long-term growth in both our home health and hospice segments,” said Barb Jacobsmeyer, president and chief executive officer of Enhabit. “In our home health segment, fourth quarter Medicare census continued to stabilize, and with the renegotiation of a large national contract complete, we will be well positioned as a full-service provider to our referral sources. The hospice segment exited 2024 with our highest average daily census since the spin and has increased census sequentially every month since January 2024 as the case management model we implemented in 2023 continues to mature.”

SUMMARY PERFORMANCE - CONSOLIDATED
•Net service revenue of $258.2 million
•Net loss attributable to Enhabit, Inc. of $46.0 million
•Adjusted EBITDA of $25.1 million
•Loss per share of $0.92
•Adjusted earnings per share of $0.04
RECENT COMPANY HIGHLIGHTS
•Home health non-Medicare admissions increased 10.7% leading to total admissions growth of 1.8% year over year despite hurricane and contract negotiation impacts.
•48% of home health non-Medicare visits are now in payer innovation contracts at improved rates.
•Home health cost per patient day increased approximately 1% year over year.
•30-day home health hospital readmission rate 20.0% better than national average.
•Hospice average daily census increased 8.6% year over year.
◦Average daily census increased sequentially every month since January 2024.
•Hospice admissions increased 6.5% year over year.
•Hospice net service revenue increased 13.1% and Adjusted EBITDA increased 13.7% year over year.
1

•Hospice cost per patient day increased 5.7% year over year.
•Home office G&A expenses decreased approximately 12% due to cost control initiatives and incentive compensation expenses lower year over year.
•Reduced bank debt by $10 million in the fourth quarter, bringing the total 2024 debt reduction to $40 million.
•Opened three hospice de novo locations in Q4, bringing the 2024 total to one home health and five hospice de novo locations.

FINANCIAL RESULTS
Consolidated
($ in millions, except per share data)Q4 '24 vs. '23
20242023
Home health net service revenue$200.4$209.5(4.3)%
Hospice net service revenue57.851.113.1%
    Total net service revenue$258.2$260.6(0.9)%
% of revenue% of revenue
Cost of service51.5%$133.151.2%$133.5(0.3)%
Gross margin48.5%125.148.8%127.1(1.6)%
General and administrative expenses38.7%99.838.9%101.4(1.6)%
Total operating expenses90.2%$232.990.1%$234.9(0.9)%
Net income attributable to noncontrolling interests $0.2$0.5
Adjusted EBITDA$25.1$25.2(0.4)%
    Adjusted EBITDA margin9.7%9.7%
Impairment of goodwill$53.8$—N/A
Net loss attributable to Enhabit, Inc.$(46.0)$(6.4)(618.8)%
Reported diluted EPS$(0.92)$(0.13)(618.8)%
Adjusted diluted EPS$0.04$0.06(33.3)%

2

SEGMENT RESULTS
Home health
($ in millions)Q4 '24 vs. '23
20242023
Net service revenue:
Medicare$117.3$130.9(10.4)%
Non-Medicare80.876.85.2 %
Private duty(1)
2.31.827.8 %
Home health net service revenue200.4209.5(4.3)%
Cost of service105.5109.4(3.6)%
Gross margin47.4 %47.8 %
General and administrative expenses59.159.3(0.3)%
Net income attributable to noncontrolling interests 0.30.5(40.0)%
Adjusted EBITDA$35.5$40.3(11.9)%
% Adj. EBITDA margin17.7 %19.2 %
Operational metrics (actual amounts)
Medicare:
Admissions23,12125,090(7.8)%
Recertifications16,30018,970(14.1)%
Completed episodes39,10444,305(11.7)%
Average daily census19,81822,416(11.6)%
Visits560,002639,744(12.5)%
Visits per episode14.314.4(0.7)%
Revenue per episode$3,000$2,9551.5 %
Non-Medicare:
Admissions29,81026,91710.7 %
Recertifications13,54113,0583.7 %
Average daily census19,96819,2223.9 %
Visits533,618522,6412.1 %
Total:
Admissions52,93152,0071.8 %
Same-store total admissions growth1.7 %
Recertifications29,84132,028(6.8)%
Same-store total recertifications growth(6.9)%
Average daily census39,78641,638(4.4)%
Visits1,093,6201,162,385(5.9)%
Visits per episode13.914.3(2.8)%
Cost per visit$95$923.3 %
Revenue per patient day$54.7$54.70.1 %
Cost per patient day$28.8$28.60.9 %
(1) Private duty represents long-term comprehensive hourly nursing medical care.
3

Hospice
($ in millions)Q4 '24 vs. '23
20242023
Net service revenue$57.8$51.113.1%
Cost of service27.624.015.0%
Gross margin52.2%53.0%
General and administrative expenses$17.0$15.410.4%
Net income attributable to noncontrolling interests$(0.1)$—
Adjusted EBITDA$13.3$11.713.7%
% Adj. EBITDA margin23.0%22.9%
Operational metrics (actual amounts)
Total admissions3,0592,8726.5%
Same-store total admissions growth4.4%
Patient days343,063315,8708.6%
Discharged average length of stay1101027.8%
Average daily census 3,7293,4338.6%
Revenue per patient day$168.6$161.84.2%
Cost per patient day$80.4$76.15.7%
GUIDANCE
The Company is providing full-year 2025 guidance as follows:
Full-year 2025Guidance
Net service revenue
between $1,050 to $1,080 million
Adjusted EBITDA
between $101 to $107 million
Adjusted EPS
between $0.41 to $0.51
For additional considerations regarding the Company’s financial results ranges, see the supplemental information posted on the Company’s website at http://investors.ehab.com.
CONFERENCE CALL INFORMATION
The Company will host an investor conference call at 10 a.m. EST on March 6, 2025, to discuss its results for the fourth quarter of 2024. To access the live call by phone, dial toll-free (888) 660-6150 or international (929) 203-0843; the conference ID is 5248158. A simultaneous webcast of the call, along with supplemental information, may be accessed by visiting: https://events.q4inc.com/attendee/519715442. Following the call, a replay will be available on the Company’s website at: http://investors.ehab.com.
ABOUT ENHABIT HOME HEALTH & HOSPICE
Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 115 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.
4

OTHER INFORMATION
Note regarding presentation and reconciliation of non-GAAP financial measures
The financial data contained in this press release and supplemental information include certain “non-GAAP financial measures” as defined in Regulation G under the Exchange Act, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings per share, and Adjusted free cash flow. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP are presented at the end of this presentation. Our Form 8-K, filed with the SEC as of the date of this presentation, provides further explanation and disclosure regarding Enhabit’s use of non-GAAP financial measures and should be read in conjunction with this supplemental information. Additionally, our Form 10-K for the year ended December 31, 2024, provides further information regarding "unusual or nonrecurring items that are not typical of ongoing operations," a reconciliation item in our Adjusted EBITDA calculation.

The Company is unable to reconcile the guidance for Adjusted EBITDA and Adjusted EPS to their
corresponding GAAP measures without unreasonable effort due to the inherent difficulty in predicting,
with reasonable certainty, the future impact of items that are outside the control of the Company or
otherwise non-indicative of its ongoing operating performance. Accordingly, the Company relies on the
exception provided by Item 10(e)(1)(i)(B) of Regulation S-K. Such items include, but are not limited to,
gains or losses related to hedging instruments; loss on early extinguishment of debt; adjustments to its
income tax provision (such as valuation allowance adjustments and settlements of income tax claims);
and items related to corporate and facility restructurings. For the same reasons, the Company is unable to address the probable significance of the unavailable information.

Note regarding presentation of same-store comparisons
The Company uses “same-store” comparisons to explain the changes in certain performance metrics and line items within its financial statements. Same-store comparisons are calculated based on home health and hospice locations open throughout both the full current period and the immediately prior period presented. These comparisons include the financial results of market consolidation transactions in existing markets, as it is difficult to determine, with precision, the incremental impact of these transactions on the Company’s results of operations.
5
Enhabit, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended December 31,Year Ended
December 31,
(in millions, except per share data)2024202320242023
Net service revenue$258.2 $260.6 $1,034.8 $1,046.3 
Cost of service, excluding depreciation and amortization133.1 133.5 530.8 535.6 
General and administrative expenses104.6 114.5 425.9 441.6 
Depreciation and amortization7.9 7.7 31.5 30.9 
Impairment of goodwill53.8 — 161.7 85.8 
Operating (loss) income(41.2)4.9 (115.1)(47.6)
Interest expense and amortization of debt discounts and fees10.1 12.3 42.9 43.0 
Other income— — — (0.2)
Loss before income taxes and noncontrolling interests(51.3)(7.4)(158.0)(90.4)
Benefit from income taxes(5.5)(1.5)(4.0)(11.4)
Net loss(45.8)(5.9)(154.0)(79.0)
Less: Net income attributable to noncontrolling interests0.2 0.5 2.2 1.5 
Net loss attributable to Enhabit, Inc.$(46.0)$(6.4)$(156.2)$(80.5)
Weighted average common shares outstanding:
Basic50.2 50.0 50.2 49.9 
Diluted50.2 50.0 50.2 49.9 
Loss per common share:
Basic loss per share attributable to Enhabit, Inc. common stockholders$(0.92)$(0.13)$(3.11)$(1.61)
Diluted loss per share attributable to Enhabit, Inc. common stockholders$(0.92)$(0.13)$(3.11)$(1.61)
6
Enhabit, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)December 31,
2024		December 31,
2023
Assets
Current assets:
Cash and cash equivalents$28.4 $27.4 
Restricted cash1.9 2.4 
Accounts receivable, net of allowances149.2 164.7 
Prepaid expenses and other current assets13.2 15.6 
Total current assets192.7 210.1 
Property and equipment, net17.7 19.0 
Operating lease right-of-use assets52.8 57.5 
Goodwill900.0 1,061.7 
Intangible assets, net58.1 80.0 
Other long-term assets4.7 5.3 
Total assets$1,226.0 $1,433.6 
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt$22.8 $22.5 
Current portion of operating lease liabilities12.3 11.8 
Accounts payable6.7 7.6 
Accrued payroll37.1 38.5 
Refunds due patients and other third-party payers5.4 8.2 
Accrued medical insurance5.5 8.4 
Other current liabilities36.4 40.7 
Total current liabilities126.2 137.7 
Long-term debt, net of current portion492.6 530.1 
Long-term operating lease liabilities, net of current portion41.8 45.7 
Deferred income tax liabilities11.5 17.1 
Other long-term liabilities— 1.3 
Total liabilities672.1 731.9 
Redeemable noncontrolling interests5.0 5.0 
Stockholders’ equity:
Total Enhabit, Inc. stockholders’ equity523.5 669.7 
Noncontrolling interests25.4 27.0 
Total stockholders’ equity548.9 696.7 
Total liabilities and stockholders’ equity$1,226.0 $1,433.6 
7
Enhabit, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Year Ended
December 31,
(in millions)20242023
Cash flows from operating activities:
Net loss$(154.0)$(79.0)
Adjustments to reconcile net loss to net cash provided by operating activities—
Depreciation and amortization31.5 30.9 
Amortization of debt related costs1.5 2.1 
Impairment of goodwill161.7 85.8 
Stock-based compensation11.7 8.9 
Deferred income taxes
(5.7)(11.6)
Other, net(0.6)(0.4)
Changes in assets and liabilities, net of acquisitions —
Accounts receivable, net of allowances15.5 (14.6)
Prepaid expenses and other assets 3.1 19.1 
Accounts payable(1.0)3.8 
Accrued payroll(2.3)3.0 
Other liabilities(10.2)0.4 
Net cash provided by operating activities51.2 48.4 
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired— (2.8)
Purchases of property and equipment, including capitalized software costs(3.8)(3.5)
Other1.4 1.0 
Net cash used in investing activities(2.4)(5.3)
Cash flows from financing activities:
Principal payments on debt(20.0)(20.0)
Payments on revolving credit facility(20.0)(10.0)
Principal payments under finance lease obligations(3.6)(3.4)
Debt issuance costs— (3.2)
Distributions paid to noncontrolling interests of consolidated affiliates(3.7)(3.2)
Other(1.0)(0.7)
Net cash used in financing activities(48.3)(40.5)
Increase in cash, cash equivalents, and restricted cash0.5 2.6 
Cash, cash equivalents, and restricted cash at beginning of year29.8 27.2 
Cash, cash equivalents, and restricted cash at end of year$30.3 $29.8 
8
Enhabit, Inc. and Subsidiaries
Supplemental Non-GAAP Information
(Unaudited)

Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share
Three Months Ended
December 31,		Year Ended
December 31,
2024202320242023
Diluted earnings per share, as reported$(0.92)$(0.13)$(3.11)$(1.61)
Adjustments, net of tax:
Impairment of goodwill0.89 — 2.82 1.50 
Unusual or nonrecurring items that are not typical of ongoing operations(1)
0.02 0.18 0.20 0.32 
Income tax adjustments(2)
0.06 0.01 0.31 0.02 
Adjusted diluted earnings per share(3)
$0.04 $0.06 $0.21 $0.22 
(1)    Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance; the year ended December 31, 2024 also includes costs associated with shareholder activism and the strategic review process that concluded in May 2024; in the three months ended December 31, 2023, they include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities; the year ended December 31, 2023 also includes costs associated with one-time standalone transition costs and shareholder activism.
(2)    Income tax adjustments include revisions to the estimates of tax balances as of the Separation date, the effect of permanent book-tax differences attributable to stock-based compensation, and the effect of a valuation allowance recorded against a portion of our deferred tax assets.
(3)    Adjusted EPS may not sum due to rounding.
9


Reconciliation of Adjusted EBITDA to Adjusted Diluted Earnings Per Share
Three Months Ended December 31,
2024
Adjustments
(in millions, except per share data)As ReportedImpairment of GoodwillUnusual or Nonrecurring Items That are Not Typical of Ongoing Operations
Income Tax Adjustments(3)
As Adjusted(4)
Adjusted EBITDA(1)
$25.1 $— $— $— $25.1 
Interest expense and amortization of debt discounts and fees(10.1)— — — (10.1)
Depreciation and amortization(7.9)— — — (7.9)
Gain on disposal of assets0.2 — — — 0.2 
Impairment of goodwill(53.8)53.8 — — — 
Stock-based compensation(3.9)— — — (3.9)
Unusual or nonrecurring items that are not typical of ongoing operations(2)
(1.1)— 1.1 — — 
Loss (income) before income taxes(51.5)53.8 1.1 — 3.4 
Benefit from (provision for) income taxes5.5 (9.3)(0.2)3.0 (1.0)
Net income (loss) attributable to Enhabit, Inc.$(46.0)$44.5 $0.9 $3.0 $2.4 
Diluted earnings per share(4)
$(0.92)$0.89 $0.02 $0.06 $0.04 
Diluted shares50.2 50.2 
(1) Reconciliation to GAAP provided below.
(2) Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance.
(3) Income tax adjustments include the effect of permanent book-tax differences attributable to stock-based compensation and the effect of a valuation allowance recorded against a portion of our deferred tax assets.
(4) Adjusted diluted EPS may not sum due to rounding.
10


Reconciliation of Adjusted EBITDA to Adjusted Diluted Earnings Per Share
Three Months Ended December 31,
2023
Adjustments
(in millions, except per share data)As ReportedUnusual or Nonrecurring Items That are Not Typical of Ongoing Operations
Income Tax Adjustments(3)
As Adjusted
Adjusted EBITDA(1)
$25.2 $— $— $25.2 
Interest expense and amortization of debt discounts and fees(12.3)— — (12.3)
Depreciation and amortization(7.7)— — (7.7)
Stock-based compensation(1.7)— — (1.7)
Unusual or nonrecurring items that are not typical of ongoing operations(2)
(11.4)11.4 — — 
(Loss) income before income taxes(7.9)11.4 — 3.5 
Benefit from (provision for) income taxes1.5 (2.2)0.3 (0.4)
Net (loss) income attributable to Enhabit, Inc.$(6.4)$9.2 $0.3 $3.1 
Diluted earnings per share(4)
$(0.13)$0.18 $0.01 $0.06 
Diluted shares50.0 50.0 
(1) Reconciliation to GAAP provided below.
(2) Unusual or nonrecurring items in the three months ended December 31, 2023 include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities.
(3) Income tax adjustments include revisions to the estimates of tax balances as of the Separation date and the effect of permanent book-tax differences attributable to stock-based compensation.
(4) Adjusted diluted EPS may not sum due to rounding.


11


Reconciliation of Adjusted EBITDA to Adjusted Diluted Earnings Per Share
Year Ended December 31,
2024
Adjustments
(in millions, except per share data)As ReportedImpairment of GoodwillUnusual or Nonrecurring Items That are Not Typical of Ongoing Operations
Income Tax Adjustments(3)
As Adjusted
Adjusted EBITDA(1)
$100.1 $— $— $— $100.1 
Interest expense and amortization of debt discounts and fees(42.9)— — — (42.9)
Depreciation and amortization(31.5)— — — (31.5)
Gain on disposal of assets0.7 — — — 0.7 
Impairment of goodwill(161.7)161.7 — — — 
Stock-based compensation(11.7)— — — (11.7)
Unusual or nonrecurring items that are not typical of ongoing operations (2)
(13.2)— 13.2 — — 
(Loss) income before income taxes(160.2)161.7 13.2 — 14.7 
Benefit from (provision for) income taxes4.0 (20.3)(3.4)15.8 (3.9)
Net (loss) income attributable to Enhabit, Inc. $(156.2)$141.4 $9.8 $15.8 $10.8 
Diluted earnings per share(4)
$(3.11)$2.82 $0.20 $0.31 $0.21 
Diluted shares50.2 50.4 
(1) Reconciliation to GAAP provided below.
(2) Unusual or nonrecurring items in the year ended December 31, 2024 include costs associated with shareholder activism, the strategic review process that concluded in May 2024, nonroutine litigation, and restructuring activities and severance.
(3) Income tax adjustments include the effect of permanent book-tax differences attributable to stock-based compensation and the effect of a valuation allowance recorded against a portion of our deferred tax assets.
(4) Adjusted diluted EPS may not sum due to rounding.

12


Reconciliation of Adjusted EBITDA to Adjusted Diluted Earnings Per Share
Year Ended December 31,
2023
Adjustments
(in millions, except per share data)As ReportedImpairment of GoodwillUnusual or Nonrecurring Items That are Not Typical of Ongoing Operations
Income Tax Adjustments(3)
As Adjusted
Adjusted EBITDA(1)
$97.6 $— $— $— $97.6 
Interest expense and amortization of debt discounts and fees(43.0)— — — (43.0)
Depreciation and amortization(30.9)— — — (30.9)
Gain on disposal of assets0.3 — — — 0.3 
Impairment of goodwill(85.8)85.8 — — — 
Stock-based compensation(8.9)— — — (8.9)
Unusual or nonrecurring items that are not typical of ongoing operations(2)
(21.2)— 21.2 — — 
(Loss) income before income taxes(91.9)85.8 21.2 — 15.1 
Benefit from (provision for) income taxes11.4 (11.1)(5.1)0.9 (3.9)
Net (loss) income attributable to Enhabit, Inc. $(80.5)$74.7 $16.1 $0.9 $11.2 
Diluted earnings per share(4)
$(1.61)$1.50 $0.32 $0.02 $0.22 
Diluted shares49.9 49.9 
(1) Reconciliation to GAAP provided below.
(2) Unusual or nonrecurring items in the year ended December 31, 2023 include costs associated with nonroutine litigation, restructuring activities, one-time standalone transition costs, shareholder activism and the strategic review process that concluded in May 2024.
(3) Income tax adjustments include revisions to the estimates of tax balances as of the Separation date and the effect of permanent book-tax differences attributable to stock-based compensation.
(4) Adjusted diluted EPS may not sum due to rounding.
13

Reconciliation of Net Loss to Adjusted EBITDA
Three Months Ended
December 31,		Year Ended
December 31,
(in millions)2024202320242023
Net loss$(45.8)$(5.9)$(154.0)$(79.0)
Interest expense and amortization of debt discounts and fees10.1 12.3 42.9 43.0 
Benefit from income taxes(5.5)(1.5)(4.0)(11.4)
Depreciation and amortization7.9 7.7 31.5 30.9 
Gain on disposal of assets(0.2)— (0.7)(0.3)
Impairment of goodwill53.8 — 161.7 85.8 
Stock-based compensation3.9 1.7 11.7 8.9 
Net income attributable to noncontrolling interests(0.2)(0.5)(2.2)(1.5)
Unusual or nonrecurring items that are not typical of ongoing operations(1)
1.1 11.4 13.2 21.2 
Adjusted EBITDA$25.1 $25.2 $100.1 $97.6 
(1)    Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance; the year ended December 31, 2024 also includes costs associated with shareholder activism and the strategic review process that concluded in May 2024; in the three months ended December 31, 2023, they include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities; the year ended December 31, 2023 also includes costs associated with one-time standalone transition costs and shareholder activism.
14

Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA
Three Months Ended
December 31,		Year Ended
December 31,
(in millions)2024202320242023
Net cash provided by operating activities$(4.1)$2.8 $51.2 $48.4 
Interest expense excluding amortization of debt discounts and fees9.7 11.2 41.4 40.9 
Current portion of (benefit from) provision for income taxes0.2 (3.0)1.7 0.2 
Change in assets and liabilities, excluding derivative instrument18.4 3.1 (5.2)(11.9)
Net income attributable to noncontrolling interests(0.2)(0.5)(2.2)(1.5)
Unusual or nonrecurring items that are not typical of ongoing operations(1)
1.1 11.4 13.2 21.2 
Other— 0.2 — 0.3 
Adjusted EBITDA$25.1 $25.2 $100.1 $97.6 
(1)    Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance; the year ended December 31, 2024 also includes costs associated with shareholder activism and the strategic review process that concluded in May 2024; in the three months ended December 31, 2023, they include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities; the year ended December 31, 2023 also includes costs associated with one-time standalone transition costs and shareholder activism.
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow
Three Months Ended
December 31,		Year Ended
December 31,
(in millions)2024202320242023
Net cash provided by operating activities$(4.1)$2.8 $51.2 $48.4 
Unusual or nonrecurring items that are not typical of ongoing operations(1)
1.1 11.4 13.2 21.2 
Capital expenditures for maintenance(0.6)0.2 (3.7)(3.4)
Other working capital adjustments(0.7)(2.5)(3.5)(4.2)
Distributions paid to noncontrolling interests of consolidated affiliates(1.5)(0.7)(3.7)(3.2)
Adjusted free cash flow$(5.8)$11.2 $53.5 $58.8 
(1)    Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance; the year ended December 31, 2024 also includes costs associated with shareholder activism and the strategic review process that concluded in May 2024; in the three months ended December 31, 2023, they include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities; the year ended December 31, 2023 also includes costs associated with one-time standalone transition costs and shareholder activism.
15

Reconciliation of Gross Margin to Adjusted EBITDA Margin
Three Months Ended
December 31,		Year Ended
December 31,
2024202320242023
Gross margin as a percentage of revenue48.5 %48.8 %48.7 %48.8 %
General and administrative expenses(40.5)%(43.9)%(41.2)%(42.2)%
Gains on disposal of assets(0.1)%— %(0.1)%— %
Stock-based compensation1.5 %0.6 %1.1 %0.8 %
Noncontrolling interests(0.1)%(0.2)%(0.2)%(0.1)%
Unusual or nonrecurring items that are not typical of ongoing operations(1)
0.4 %4.4 %1.3 %2.0 %
Adjusted EBITDA Margin9.7 %9.7 %9.7 %9.3 %
(1)    Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance; the year ended December 31, 2024 also includes costs associated with shareholder activism and the strategic review process that concluded in May 2024; in the three months ended December 31, 2023, they include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities; the year ended December 31, 2023 also includes costs associated with one-time standalone transition costs and shareholder activism.
16

FORWARD-LOOKING STATEMENTS
This press release contains historical information, as well as forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that involve known and unknown risks and relate to, among other things, future events, projections, financial guidance, legislative or regulatory developments, strategy or growth opportunities, our future financial performance, our projected business results, or our projected capital expenditures. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, the reader can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “targets,” “potential,” or “continue” or the negative of these terms or other comparable terminology. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties, many of which are beyond our control. Actual events or results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by the Company include, but are not limited to, our ability to execute on our strategic plans; regulatory and other developments impacting the markets for our services; changes in reimbursement rates; general economic conditions; changes in the episodic versus non-episodic mix of our payers, the case mix of our patients, and payment methodologies; our ability to attract and retain key management personnel and healthcare professionals; potential disruptions or breaches of our or our vendors’, payers’, and other contract counterparties’ information systems; the outcome of litigation; quality performance and ratings; our ability to successfully complete and integrate de novo locations, acquisitions, investments, and joint ventures; our ability to successfully integrate technology in our operations; and our ability to control costs, particularly labor and employee benefit costs. Additional information regarding risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this press release are described in reports filed with the SEC, including our annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, copies of which are available on the Company’s website at http://investors.ehab.com.

Investor relations contact                    
Jobie Williams
[email protected]
469-860-6061

Media contact
Erin Volbeda
[email protected]
972-338-5141
17
Fourth Quarter Earnings Call Supplemental Information March 5, 2025

 
Enhabit Home Health & Hospice 2 Disclaimers Forward looking statements This presentation contains historical information, as well as forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that involve known and unknown risks and relate to, among other things, future events, projections, financial guidance, legislative or regulatory developments, strategy or growth opportunities, our future financial performance, our projected business results, or our projected capital expenditures. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, the reader can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “targets,” “potential,” or “continue” or the negative of these terms or other comparable terminology. Any forward-looking statement speaks only as of the date of this presentation, and the Company undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties, many of which are beyond our control. Actual events or results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by the Company include, but are not limited to, our ability to execute on our strategic plans; regulatory and other developments impacting the markets for our services; changes in reimbursement rates; general economic conditions; changes in the episodic versus non-episodic mix of our payers, the case mix of our patients, and payment methodologies; our ability to attract and retain key management personnel and healthcare professionals; potential disruptions or breaches of our or our vendors’, payers’, and other contract counterparties’ information systems; the outcome of litigation; quality performance and ratings; our ability to successfully complete and integrate de novo locations, acquisitions, investments, and joint ventures; our ability to successfully integrate technology in our operations; and our ability to control costs, particularly labor and employee benefit costs. Additional information regarding risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this presentation are described in reports filed with the SEC, including our annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, copies of which are available on the Company’s website at http://investors.ehab.com. Note regarding presentation of non-GAAP financial measures This presentation includes certain “non-GAAP financial measures” as defined in Regulation G under the Exchange Act, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings per share, and Adjusted free cash flow. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP are presented at the end of this presentation. Our Form 8-K, filed with the SEC as of the date of this presentation, provides further explanation and disclosure regarding Enhabit’s use of non-GAAP financial measures and should be read in conjunction with this supplemental information. Additionally, our Form 10-K for the three months and year ended December 31, 2024, provides further information regarding "unusual or nonrecurring items that are not typical of ongoing operations," a reconciliation item in our Adjusted EBITDA calculation. Note regarding presentation of same-store comparisons The Company uses “same-store” comparisons to explain the changes in certain performance metrics and line items within its financial statements. Same-store comparisons are calculated based on home health and hospice locations open throughout both the full current period and the immediately prior period presented. These comparisons include the financial results of market consolidation transactions in existing markets, as it is difficult to determine, with precision, the incremental impact of these transactions on the Company’s results of operations.

 
Contents Overview 4 2024 Year in Review 5 2025 Priorities 6 Quarterly Results at a Glance 7 Consolidated Results 8 Clinical Expertise and High-Quality Outcomes 9 Home Health Segment and KPI Performance 10-12 Payer Innovation 13-14 Hospice Segment and KPI Performance 15-17 Consolidated Adjusted EBITDA 18 Debt and Liquidity Metrics 19 Adjusted Free Cash Flow 20 2025 Guidance and Guidance Considerations 21 Adjusted Free Cash Flow Assumptions and Uses of Adjusted Free Cash Flow 22 Appendix, Including Company Overview, Operational Metrics & Reconciliations to GAAP 23-40

 
Enhabit Home Health & Hospice 4 Overview 110 hospice locations co-located with home health locations(1) Home Health Locations Hospice Locations Home Health & Hospice State Home Health Only State (1) As of December 31, 2024 - due to scale, not all locations can be represented by locational markers 115 hospice Locations(1) 255 home health Locations(1) We are a leading provider of home health and hospice services that strives to provide superior, cost-effective care where patients prefer it: in their homes For over 25 years, we've provided care with high-quality outcomes, becoming a trusted partner of health systems, payers and other risk-bearing entities We operate nationally across 34 states with 10,700+ employees We foster an award-winning culture that is a strategic advantage in attracting and retaining talent and a main contributor to our continued success 6 de novo locations opened in 2024 (5 hospice, 1 home health)

 
Enhabit Home Health & Hospice 5 2024 Year in Review Home Health - Payer Innovation Home Health - Medicare Census Stabilization Hospice Focus on Profitability and Balance Sheet • Consistent Medicare fee for service admissions at 44% of total admissions over past three quarters • Medicare census stabilized in second half of 2024 • Steady census growth throughout 2024 with the use of the case management model – 11 sequential months of average daily census growth resulting in 8.6% growth in average daily census Q4 year over year • Full-service provider with national and regional contracts – 5.7% growth in non-Medicare rate per visit in 2024 • Success shifting non-Medicare visits into Payer Innovation contracts – 48% of non-Medicare visits in Payer Innovation contracts, up from 22% in Q4 2023 • Adjusted EBITDA improved 2.6% year over year • Home office G&A improved 110 basis points to 9.2% of revenue in Q4 on continued cost control initiatives • Reduced debt by $40 million, including $20 million in voluntary debt payments Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 6 2025 Priorities for Success • Home health census ◦ Payer mix • Hospice average daily census • Open de novo locations in strategic markets • Optimize de novo locations opened in 2023 and 2024 • Continue de- leveraging the balance sheet • G&A expense management • Home health cost per patient day • Home health revenue per day • Hospice cost per day • Value-based performance • Patient and family experience • Home health hospital readmission rates • Hospice visits in the last days of life • Engagement • Retention • Business development direct selling headcount • Leadership development

 
Enhabit Home Health & Hospice 7 Improved financial performance sequentially • Net loss of $46.0 million. • Consolidated Adjusted EBITDA remained relatively flat year over year at $25.1 million. • Reduced bank debt by $10 million in the quarter; bank debt down $40 million year over year. • Home office G&A expenses decreased approximately 12% due to cost control initiatives and incentive compensation expenses lower year over year. Reconciliations to GAAP provided in Appendix Quarterly Results at a Glance Non-Medicare admissions increased 10.7% • Total admissions growth of 1.8% year over year despite hurricane and contract negotiation impacts. • 48% of non-Medicare visits are now in Payer Innovation contracts at improved rates. • Cost per patient day increased approximately 1% year over year. • 30-day hospital readmission rate 20.0% better than national average. Average daily census increased 8.6% year over year • Average daily census increased sequentially every month since January 2024. • Admissions increased 6.5% year over year. • Adjusted EBITDA increased 13.7% year over year. • Cost per patient day increased 5.7% year over year. Home Health Hospice Consolidated

 
Enhabit Home Health & Hospice 8 Consolidated Results ($ in millions, except per share data) Q4 '24 vs. '232024 2023 Home Health net service revenue $200.4 $209.5 (4.3) % Hospice net service revenue 57.8 51.1 13.1 % Total net service revenue $258.2 $260.6 (0.9) % % of revenue % of revenue Cost of service 51.5 % $133.1 51.2 % $133.5 (0.3) % Gross margin 48.5 % 125.1 48.8 % 127.1 (1.6) % General and administrative expenses 38.7 % 99.8 38.9 % 101.4 (1.6) % Total operating expenses 90.2 % $232.9 90.1 % $234.9 (0.9) % Net income attributable to noncontrolling interests $0.2 $0.5 Adjusted EBITDA $25.1 $25.2 (0.4) % Adjusted EBITDA margin 9.7 % 9.7 % Impairment of goodwill $53.8 $— N/A Net loss attributable to Enhabit, Inc. $(46.0) $(6.4) (618.8) % Reported diluted EPS $(0.92) $(0.13) (618.8) % Adjusted diluted EPS (see calculations on slides 33 and 34) $0.04 $0.06 (33.3) % General and administrative expenses in the above table exclude: Gain on disposal of assets $(0.2) $— Stock-based compensation $3.9 $1.7 Unusual or nonrecurring items that are not typical of ongoing operations(1) $1.1 $11.4 (1) Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance; in the three months ended December 31, 2023, they include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities. Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 9 Clinical Expertise and High-Quality Outcomes Enhabit National Average % Better Than Average QoPC Star Rating1 3.1 3.0 3.3% 69% of our home health agencies are 3 Stars or higher; 18% are 4 Stars or higher1 HHCAHPS Star Rating2 4.1 3.9 5.1% 99% of our home health agencies are 3 Stars or higher; 82% are 4 Stars or higher2 30-Day Hospital Readmission Rate3 14.4% 18.0% 20.0% Percent of patients readmitted to an acute care hospital within 30 days of start of care or resumption of care Hospice Visits in Last Days of Life4 67.1% 47.4% 41.6% Percent of patients who received in person visits from RN or medical social worker on at least two out of the final three days of the patient’s life Standardized Protocols Motivated Clinicians Disciplined Use of Technology Superior Performance ü ü ü ü (1) Quality of Patient Care (QoPC) Star Ratings as of January 31, 2025 for dates of service current year 2023; April 2023 through March 2024 (2) Home Health Care Consumer Assessment of Healthcare Providers (HHCAHPS) Patient Survey Star Ratings as of January 31, 2025 for dates of service July 1, 2023 - June 30, 2024 (3) Research Institute for Home Care 2024 Chartbook (data from Medicare Standard Analytics Files for CY 2023), Enhabit data is as of Q4 2024 (4) Medicare fee for service claims data from January 1, 2022 to December 31, 2023 (source Medicare Provider Data catalog - February 2025)

 
Enhabit Home Health & Hospice 10 Home Health Q4 Revenue KPI Performance • Payer Innovation strategy has set the stage for both Medicare and other episodic ADC growth which typically have a unit revenue advantage per patient day • Q4 2024 Medicare ADC growth sequentially of 1%, with continued focus to stabilize and grow in 2025 • Revenue per patient day of approximately $55 relatively flat, with favorable payer mix shift partially offset by increase in lower patient acuity mix • Home health total revenue decreased approximately $1 million or (0.3%) sequentially, while decreasing approximately $9 million or (4.3%) year over year Q4 Home health sequential revenue drivers: • Volume: decrease in average daily census of (0.5%) sequentially, primarily on lower admission volumes • Unit Revenue: increase in revenue per patient day of 0.1% sequentially reflects favorable payer mix shift somewhat offset by lower patient acuity mix • Total ADC sequential decline primarily due to impact of hurricanes. Year over year decline due to hurricanes and national contract negotiations • Key national contract signed in December 2024, while replacement efforts limited growth in Q4 2024 the new contract sets the stage for growth into 2025 on ability to remain a "full-service" provider to referral sources • Replacement efforts limited growth, but improved mix of patients with 74% of admissions in traditional Medicare and Payer Innovation contracts

 
Enhabit Home Health & Hospice 11 Home Health Q4 Profitability KPI Performance • Gross margin of 47.4% flat sequentially and lower 40bps year over year Q4 Home health sequential Gross Margin drivers: • Unit Revenue: relatively flat sequentially with favorable patient mix offset by seasonal increase in LUPAs and lower acuity • Unit Cost: relatively flat sequentially on improved clinical staff productivity helping to offset Q4 2024 merit increase of 3% Reconciliations to GAAP provided in Appendix • Q4 Home health Adjusted EBITDA of $35.5 million decreased $1.0 million or approximately (3%) sequentially Sequential Adjusted EBITDA variance walk: • Volume decreased Adjusted EBITDA ($0.5) million on lower average daily census • Rate/Yield increased Adjusted EBITDA $0.2 million with Gross Margin as a % of Revenue flat on improved unit revenue somewhat offset by increased cost per patient day • Sales and Ops back-office G&A costs decreased Adjusted EBITDA ($0.7) million primarily on Q4 merit increase offset by improved support and sales efficiencies • Cost per patient day of approximately $29 flat sequentially and increased 1% year over year • Q4 2024 merit increase of 3% effective October 1 • Sequential impact of merit largely offset by clinical staff productivity improvements

 
Enhabit Home Health & Hospice 12 Home Health Segment ($ in millions) Q4 '24 vs. '232024 2023 Net service revenue: Medicare $117.3 $130.9 (10.4) % Non-Medicare 80.8 76.8 5.2 % Private duty(1) 2.3 1.8 27.8 % Home Health net service revenue 200.4 209.5 (4.3) % Cost of service 105.5 109.4 (3.6) % Gross margin 47.4 % 47.8 % General and administrative expenses 59.1 59.3 (0.3) % Net income attributable to noncontrolling interests 0.3 0.5 (40.0) % Adjusted EBITDA $35.5 $40.3 (11.9) % % Adj. EBITDA margin 17.7 % 19.2 % Operational metrics (actual amounts) Medicare: Admissions 23,121 25,090 (7.8) % Recertifications 16,300 18,970 (14.1) % Completed episodes 39,104 44,305 (11.7) % Average daily census 19,818 22,416 (11.6) % Visits 560,002 639,744 (12.5) % Visits per episode 14.3 14.4 (0.7) % Revenue per episode $3,000 $2,955 1.5 % Non-Medicare: Admissions 29,810 26,917 10.7 % Recertifications 13,541 13,058 3.7 % Average daily census 19,968 19,222 3.9 % Visits 533,618 522,641 2.1 % Total: Admissions 52,931 52,007 1.8 % Same-store total admissions growth 1.7 % Recertifications 29,841 32,028 (6.8) % Same-store total recertifications growth (6.9) % Average daily census 39,786 41,638 (4.4) % Visits 1,093,620 1,162,385 (5.9) % Visits per episode 13.9 14.3 (2.8) % Cost per visit $95 $92 3.3 % Revenue per patient day $54.7 $54.7 0.1 % Cost per patient day $28.8 $28.6 0.9 % (1) Private duty represents long-term comprehensive hourly nursing medical care. Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 13 Payer Innovation Payer innovation strategy continues to foster Medicare Advantage growth. Driving steady increases in our non-Medicare revenue per visit 48% of non-Medicare visits are now in Payer Innovation contracts at improved rates. Visits from payer innovation contracts as a percentage of total non-Medicare visits: Non-Medicare revenue per visit: $136 $140 $148 FY 22 FY 23 FY 24 6% 10% 19% 22% 38% 43% 45% 48% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Two national contracts: start dates of May 1, 2023 and January 1, 2024

 
Enhabit Home Health & Hospice 14 Payer Innovation (continued) • Improved clinical capacity • Increased favorable payer contracts • negotiated 76 new contracts since spin • Pipeline of 49 new contracting opportunities and an additional 31 historic agreements that are being re-negotiated • Utilizing technology to provide A Better Way to Care® and optimize clinical resources Percentage of Total Admissions 54% 53% 51% 48% 46% 44% 44% 44% 4% 8% 13% 14% 27% 27% 29% 30% 58% 61% 64% 62% 73% 71% 73% 74% Traditional Medicare Payer Innovation Contracts Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Episodic Non-Episodic 54 22

 
Enhabit Home Health & Hospice 15 Hospice Q4 Revenue KPI Performance • Revenue per patient day increased 6.9% sequentially and 4.2% year over year • CMS Medicare reimbursement rate increase effective October 2024 • Sequential revenue per patient day improvement partially driven by Company accruing $1.4 million in Medicare Cap billing limitations in prior quarter • Maturing case management model delivering growth sequentially 3.0% and to prior year, 8.6% • Admissions growth sequentially 0.4% and 6.5% to prior year same quarter • Average daily census growth every month since January 2024 • Hospice revenue increased $5.2 million or approximately 10% sequentially and $6.7 million or 13.1% year over year • Hospice revenue drivers sequentially: • Volume: increase in average daily census of 3.0% sequentially, on increased admissions of 0.4% versus prior quarter • Unit Revenue: increase in revenue per patient day of 6.9% sequentially primarily due to improved Medicare reimbursement rates and lower Medicare Cap liability accrual

 
Enhabit Home Health & Hospice 16 Hospice Q4 Profitability KPI Performance • Gross margin of 52.2% increasing 120bps sequentially and lower 80bps year over year • Q4 hospice sequential revenue drivers: • Unit Revenue: +6.9% sequentially with combination of CMS rate increase of 3.8% and favorable mix • Unit Cost: +4.0% sequentially primarily on Q4 merit increase of 3% and pharmacy/DME related unit cost increases • Hospice Adjusted EBITDA of $13.3 million increased $3.3 million or 33.0% sequentially • Sequential Adjusted EBITDA variance walk: • Volume increased Adjusted EBITDA $0.9 million on growth in ADC of 3% • Rate/Yield increased Adjusted EBITDA $2.6 million with $1.3 million related to lower Medicare Cap liability and $1.3 million related to unit revenue improvement outpacing unit cost increases • Sales and Ops back-office G&A costs decreased Adjusted EBITDA ($0.2) million primarily on Q4 merit increase offset by improved support and sales efficiencies • Cost per patient day of $80.4 increasing sequentially 4.0% and increased 5.7% year over year • Q4 2024 merit increase of 3% effective October 1 • Merit increase primary driver in sequential increase in Cost per Patient Day • Both merit and durable medical equipment (DME) provider transition are drivers to year over year increase Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 17 Hospice Segment ($ in millions) Q4 '24 vs. '232024 2023 Net service revenue $57.8 $51.1 13.1 % Cost of service 27.6 24.0 15.0 % Gross margin 52.2 % 53.0 % General and administrative expenses 17.0 15.4 10.4 % Net income attributable to noncontrolling interests (0.1) — — % Adjusted EBITDA $13.3 $11.7 13.7 % % Adj. EBITDA margin 23.0 % 22.9 % Operational metrics (actual amounts) Total admissions 3,059 2,872 6.5 % Same-store total admissions growth 4.4 % Patient days 343,063 315,870 8.6 % Discharged average length of stay 110 102 7.8 % Average daily census 3,729 3,433 8.6 % Revenue per patient day $168.6 $161.8 4.2 % Cost per patient day $80.4 $76.1 5.7 % Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 18 Consolidated Adjusted EBITDA ($ in millions) Q4 2024 % of Consolidated Revenue Q4 2023 % of Consolidated Revenue Home Health Segment Adjusted EBITDA $35.5 $40.3 Hospice Segment Adjusted EBITDA 13.3 11.7 Home office general and administrative expenses (23.7) 9.2 % (26.8) 10.3 % Consolidated Adjusted EBITDA $25.1 $25.2 Home office general and administrative expenses in the above table exclude: Gain on disposal of assets $(0.2) $— Stock-based compensation $3.9 $1.7 Unusual or nonrecurring items that are not typical of ongoing operations(1) $1.1 $11.4 (1) Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance; in the three months ended December 31, 2023, they include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities. • Home office general and administrative expenses decreased approximately 12% due to cost control initiatives and incentive compensation expenses lower year over year. Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 19 Debt & Liquidity Metrics ($ in millions) December 31, 2024 December 31, 2023 Advances under revolving credit facility, due 2027(1)(2) $160.0 $180.0 $400 million term loan facility, due 2027 (1)(3) 348.0 367.1 Finance lease obligations 7.4 5.5 Total debt $515.4 $552.6 Less: Cash and cash equivalents 28.4 27.4 Net debt $487.0 $525.2 Net debt to Adjusted EBITDA(4) 4.9 x 5.4 x Trailing twelve-month Adjusted EBITDA $100.1 $97.6 Available liquidity(4) $79.8 $60.8 (1) The Q4 2024 weighted average interest rate was 7.15% (SOFR + credit spread adjustment + 250 bps). (2) On October 31, 2024, the Company made an additional voluntary $5 million payment to reduce the revolving credit facility outstanding balance to $160.0 million. (3) In October 2022, Enhabit entered into an interest rate swap to fix the rate on $200 million of its term loan. The swap fixes the SOFR component of the interest rate at 4.3%. (4) Adjusted EBITDA under our credit agreement is calculated on a pro forma basis, therefore the calculation of the credit facility leverage ratio is lower than the ratio presented above. Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 20 2022 YTD 2021 YTD Adjusted EBITDA ($ in thousands) $87,317 $105,012 Change in net working capital (6,561) (8,297) Cash interest payments (123) (145) Cash tax payments - - Maintenance capital expenditures 2616 3,129 Adjusted free cash flow $78,017 $93,441 ($ in millions) $— $— $—$— $— $— $— Adj. Free Cash Flow 2023 Adjusted EBITDA Change in Working Capital Maintenance Capital Expenditures Cash Interest Cash Tax Payments, Net of Refunds Adj. Free Cash Flow 2024 0 20 40 60 Reconciliations to GAAP provided in Appendix • Cash taxes in 2023 benefited from the refund of 2022 overpayments. The Company expects to be a cash taxpayer in 2025. • See Adjusted free cash flow assumptions and uses on slide 22. $58.8 $2.5 $2.1 ($0.4) ($2.1) ($7.4) $53.5 Adjusted Free Cash Flow

 
Enhabit Home Health & Hospice 21 2025 Guidance ($ in millions, except per share data) 2024 Actuals 2025 Guidance Net service revenue $1,034.8 $1,050 to $1,080 Adjusted EBITDA $100.1 $101 to $107 Adjusted EPS $0.21 $0.41 to $0.51 Guidance Considerations Tax rate: approximately 25% Diluted share count: approximately 51.6 million shares Home Health considerations Volume (ADC): increase of 4% to 5% Unit revenue (per patient day): decrease of 0.5% to flat Cost per day: increase of 2% to 3% Other: continued shift to more non-Medicare admissions Hospice considerations Volume (ADC): increase of 7% to 8.5% Unit revenue (per patient day): increase of 4% to 5% Cost per patient day: increase of 2% to 3% Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 22 Adjusted Free Cash Flow Assumptions ($ in millions) Certain cash flow items 2023 Full Year 2024 Full Year 2025 Assumptions Adjusted EBITDA $97.6 $100.1 $101 to $107 Cash interest expense(1) 40.6 42.7 $37 to $39 Cash income tax payments (refunds), net(2) (8.2) (0.8) $7 to $8 Working capital and other 3.0 0.9 $(2) to $0 Maintenance capital expenditures 3.4 3.8 $4 to $6 Adjusted free cash flow $58.8 $53.5 $47 to $58 Reconciliations to GAAP provided in Appendix (1) - Cash interest payments in 2025 are based on current interest rate forward curves. (2) - Enhabit expects to become a cash taxpayer in 2025. ($ in millions) Growth in Core Business 2023 Full Year 2024 Full Year 2025 Assumptions De novo locations $2.2 $1.2 $2.5 to $3.5 Acquisitions $2.8 $— TBD Debt repayments (borrowings), net $30.0 $40.0 TBD Adjusted Free Cash Flow Uses and Use Assumptions

 
Enhabit Home Health & Hospice 23 Appendix

 
Enhabit Home Health & Hospice 24 (1) MedPAC Report to Congress as of March 2023. (2) MedPAC Tab H Hospice December 2024 (3) MedPAC Tab G Home Health December 2024. (Calculated based on 30-day home health period.) (4) AARP 2024 Survey. (5) Centers for Medicare & Medicaid Services, Medicare Trustees’ Report Nov 2021. Aging Population Cost Efficiency of Home Health Care Large and Growing Addressable Markets(5) Large and Growing Addressable Markets4 ~$41bn 2028 Medicare skilled home health expenditures ~$32bn 2028 Medicare Hospice expenditures 75% of those age 50 and over want to stay in their residence as they age(4) 10x lower cost than other care settings Post-Acute Service Sector Annual Medicare Spending Average Medicare Cost Per Day Skilled Nursing Facilities (SNF)(1) $27 billion $556 Hospice(2) $26 billion $186 Home Health(3) $16 billion $63 Home health = 76 Hospice = 83 Number of people age 65 or older, by age group (millions) ~5% expected growth in target population over the next three years3 We are here Avg. age of our patients Outlook: Attractive Industry Tailwinds Demographic Trends and Our Ability to Deliver Cost-Effective, High-Quality Care Supports Long-Term Growth

 
Enhabit Home Health & Hospice 25 Enhabit Home Health Long-Term Outlook Q4 2024 Home health admission growth was impacted by hurricanes and contract negotiations with a national payer. We expect to continue growing at mid- to high-single digits over the next three years with our ability to better serve referral sources through improved clinical capacity and payer innovation contracts. Normalized Q4 Home health admissions continue to increase mid-single digits Home Health Admissions Growth vs Prior Year 1.2% 3.2% 1.6% 3.9% 5.3% 6.4% 5.6% 1.8% 2.7% 0.9% —% 1.7% 0.2% 3.2% 5.0% 6.2% 5.5% 1.7% 2.7% 0.9% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Total admissions growth Same-store admissions growth Replacement impact Storm impact 5.4% 5.3%

 
Enhabit Home Health & Hospice 26 Enhabit Hospice Long-Term Outlook Expect hospice volumes to grow at mid- to high-single digits over the next three years after investing in the case management model and the build out of business development team Sequential monthly growth in census 2024 Hospice Monthly Census Trend 3,343 3,368 3,459 3,491 3,520 3,539 3,553 3,641 3,674 3,685 3,743 3,759 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24

 
Enhabit Home Health & Hospice 27 Home Health Operational Metrics (net service revenue $ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Medicare $146.0 $139.4 $141.0 $130.9 $557.4 $128.3 $121.7 $117.3 $117.3 $484.6 Non-Medicare 67.1 71.8 67.3 76.8 283.0 82.6 86.3 81.5 80.8 331.2 Private duty(1) 2.7 2.6 2.6 1.8 9.7 2.3 2.2 2.2 2.3 9.0 Home Health net service revenue $215.8 $213.8 $210.9 $209.5 $850.1 $213.2 $210.2 $201.0 $200.4 $824.8 (actual amounts) Medicare: Admissions 29,285 26,845 25,585 25,090 106,805 25,944 24,015 23,422 23,121 96,502 Recertifications 19,938 19,884 19,321 18,970 78,113 17,652 16,639 16,101 16,300 66,692 Completed episodes 49,231 47,528 44,350 44,305 185,414 43,171 41,620 38,866 39,104 162,761 Average daily census 25,103 24,012 22,858 22,416 23,597 21,713 20,628 19,630 19,818 20,447 Visits 723,399 691,857 660,380 639,744 2,715,380 632,047 597,742 561,525 560,002 2,351,316 Visits per episode 14.7 14.6 14.9 14.4 14.6 14.6 14.4 14.4 14.3 14.4 Revenue per episode $2,966 $2,933 $3,179 $2,955 $3,006 $2,972 $2,924 $3,018 $3,000 $2,977 Non-Medicare: Admissions 24,658 24,130 24,938 26,917 100,643 30,881 30,209 29,950 29,810 120,850 Recertifications 11,840 13,458 13,411 13,058 51,767 13,489 14,587 14,112 13,541 55,729 Average daily census 17,049 18,535 18,205 19,222 18,253 20,555 21,281 20,357 19,968 20,540 Visits 482,301 514,008 501,764 522,641 2,020,714 571,289 581,326 552,815 533,618 2,239,048 Total: Admissions 53,943 50,975 50,523 52,007 207,448 56,825 54,224 53,372 52,931 217,352 Recertifications 31,778 33,342 32,732 32,028 129,880 31,141 31,226 30,213 29,841 122,421 Average daily census 42,152 42,547 41,063 41,638 41,850 42,268 41,909 39,987 39,786 40,987 Visits 1,205,700 1,205,865 1,162,144 1,162,385 4,736,094 1,203,336 1,179,068 1,114,340 1,093,620 4,590,364 Visits per episode 14.8 14.6 14.9 14.3 14.6 14.9 14.0 14.1 13.9 14.2 Cost per visit $88 $91 $93 $92 $91 $90 $89 $94 $95 $93 Revenue per patient day $56.9 $55.2 $55.8 $54.7 $55.7 $55.4 $55.1 $54.7 $54.7 $55.0 Cost per patient day $28.5 $28.8 $29.1 $28.6 $28.7 $28.6 $28.0 $28.8 $28.8 $28.6 (1) Private duty represents long-term comprehensive hourly nursing medical care.

 
Enhabit Home Health & Hospice 28 Hospice Operational Metrics (net service revenue $ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Hospice net service revenue $49.3 $48.5 $47.4 $51.1 $196.2 $49.2 $50.4 $52.6 $57.8 $210.0 (actual amounts) Total admissions 3,122 2,837 2,882 2,872 11,713 3,032 2,888 3,046 3,059 12,025 Patient days 317,027 311,465 311,719 315,870 1,256,081 308,542 320,026 333,247 343,063 1,304,878 Discharged average length of stay 114 108 107 102 108 104 108 100 110 105 Average daily census 3,523 3,423 3,388 3,433 3,441 3,391 3,517 3,622 3,729 3,565 Revenue per patient day $155.5 $155.6 $152.1 $161.8 $156.2 $159.6 $157.5 $157.7 $168.6 $160.9 Cost per patient day $77.1 $77.5 $77.0 $76.1 $76.9 $78.8 $77.9 $77.3 $80.4 $78.6

 
Enhabit Home Health & Hospice 29 Consolidated Results – YTD 2024 ($ in millions, except per share data) Year-To-Date '24 vs. '232024 2023 Home Health net service revenue $824.8 $850.1 (3.0) % Hospice net service revenue 210.0 196.2 7.0 % Total net service revenue $1,034.8 $1,046.3 (1.1) % % of Revenue % of Revenue Cost of service 51.3 % 530.8 51.2 % 535.6 (0.9) % Gross margin 48.7 % 504.0 48.8 % 510.7 (1.3) % General and administrative expenses 38.8 % 401.7 39.4 % 411.8 (2.5) % Total operating expenses 90.1 % 932.5 90.5 % 947.4 (1.6) % Other income — 0.2 Net income attributable to noncontrolling interests 2.2 1.5 Adjusted EBITDA $100.1 $97.6 2.6 % Adjusted EBITDA margin 9.7 % 9.3 % Impairment of goodwill $161.7 $85.8 (88.5) % Net loss attributable to Enhabit, Inc. $(156.2) $(80.5) (94.0) % Reported diluted EPS $(3.11) $(1.61) (92.9) % Adjusted diluted EPS (see calculations on slides 35 and 36) $0.21 $0.22 (4.5) % General and administrative expenses in the above table exclude: Gain on disposal of assets $(0.7) $(0.3) Stock-based compensation $11.7 $8.9 Unusual or nonrecurring items that are not typical of ongoing operations(1) $13.2 $21.2 (1) Unusual or nonrecurring items in the year ended December 31, 2024 include costs associated with shareholder activism, the strategic review process that concluded in May 2024, nonroutine litigation, and severance, and; in the year ended December 31, 2023, they include costs associated with nonroutine litigation, restructuring activities, one-time standalone transition costs shareholder activism and the strategic review process that concluded in May 2024. Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 30 Home Health Segment Results – YTD 2024 ($ in millions) Year-To-Date '24 vs. '232024 2023 Net service revenue: Medicare $484.6 $557.4 (13.1) % Non-Medicare 331.2 283.0 17.0 % Private duty(1) 9.0 9.7 (7.2) % Home Health net service revenue 824.8 850.1 (3.0) % Cost of service 428.2 439.0 (2.5) % Gross margin 48.1 % 48.4 % General and administrative expenses 235.4 240.6 (2.2) % Other income — (0.2) 28.6 % Net income attributable to noncontrolling interests 1.8 1.4 (100.0) % Adjusted EBITDA $159.4 $169.3 (5.8) % % Adj. EBITDA margin 19.3 % 19.9 % Operational metrics (actual amounts) Medicare: Admissions 96,502 106,805 (9.6) % Recertifications 66,692 78,113 (14.6) % Completed episodes 162,761 185,414 (12.2) % Average daily census 20,447 23,597 (13.3) % Visits 2,351,316 2,715,380 (13.4) % Visits per episode 14.4 14.6 (1.4) % Revenue per episode $2,977 $3,006 (1.0) % Non-Medicare: Admissions 120,850 100,643 20.1 % Recertifications 55,729 51,767 7.7 % Average daily census 20,540 18,253 12.5 % Visits 2,239,048 2,020,714 10.8 % Total: Admissions 217,352 207,448 4.8 % Same-store total admissions growth 4.5 % Recertifications 122,421 129,880 (5.7) % Same-store total recertifications growth (5.9) % Average daily census 40,987 41,850 (2.1) % Visits 4,590,364 4,736,094 (3.1) % Visits per episode 14.2 14.6 (2.7) % Cost per visit $93 $91 2.2 % Revenue per patient day $55.0 $55.7 (1.3) % Cost per patient day $28.6 $28.7 (0.7) % (1) Private duty represents long-term comprehensive hourly nursing medical care. Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 31 Hospice Segment Results – YTD 2024 ($ in millions) Year-To-Date '24 vs. '232024 2023 Net service revenue $210.0 $196.2 7.0 % Cost of service 102.6 96.6 6.2 % Gross margin 51.1 % 50.8 % General and administrative expenses 65.5 63.4 3.3 % Net income attributable to noncontrolling interests 0.4 0.1 300.0 % Adjusted EBITDA $41.5 $36.1 15.0 % % Adj. EBITDA margin 19.8 % 18.4 % Operational metrics (actual amounts) Total admissions 12,025 11,713 2.7 % Same-store total admissions growth 0.5 % Patient days 1,304,878 1,256,081 3.9 % Discharged average length of stay 105 108 (2.8) % Average daily census 3,565 3,441 3.6 % Revenue per patient day $160.9 $156.2 3.0 % Cost per patient day $78.6 $76.9 2.2 % Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 32 Payer Sources As a % of Revenue Fourth Quarter Fiscal Year Consolidated 2024 2023 2024 2023 Medicare 66.8% 68.5% 66.8% 71.5% Medicare Advantage 22.5% 19.5% 23.0% 19.0% Managed Care 9.2% 10.6% 9.1% 8.2% Medicaid 1.3% 1.3% 0.9% 1.2% Other 0.2% 0.1% 0.2% 0.1% Total 100.0% 100.0% 100.0% 100.0% Home Health Medicare 58.5% 62.5% 58.8% 65.6% Medicare Advantage 29.0% 24.3% 28.8% 23.4% Managed Care 11.1% 11.6% 11.1% 9.5% Medicaid 1.2% 1.5% 1.1% 1.4% Other 0.2% 0.1% 0.2% 0.1% Total 100.0% 100.0% 100.0% 100.0% Hospice Medicare 95.7% 93.1% 98.3% 97.1% Managed Care(1) 2.4% 6.5% 1.7% 2.5% Medicaid 1.9% 0.4% —% 0.4% Total 100.0% 100.0% 100.0% 100.0% (1) Growth in hospice Managed Care revenue in Q4 2023 is attributed to an increase in hospice non-Medicare patient revenue and the impact of changes in our estimated recoverability of net service revenue.

 
Enhabit Home Health & Hospice 33 EPS Calculation: Q4 2024 ($ in millions, except per share amounts) Adjusted EPS – Q4 2024 As Reported Impairment of Goodwill Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations Income Tax Adjustments(3) As Adjusted(4) Adjusted EBITDA(1) $25.1 $— $— $— $25.1 Interest expense and amortization of debt discounts and fees (10.1) — — — (10.1) Depreciation and amortization (7.9) — — — (7.9) Gain on disposal of assets 0.2 — — — 0.2 Impairment of goodwill (53.8) 53.8 — — — Stock-based compensation (3.9) — — — (3.9) Unusual or nonrecurring items that are not typical of ongoing operations(2) (1.1) — 1.1 — — Loss (income) before income taxes (51.5) 53.8 1.1 — 3.4 Benefit from (provision for) income taxes 5.5 (9.3) (0.2) 3.0 (1.0) Net income (loss) attributable to Enhabit, Inc. $(46.0) $44.5 $0.9 $3.0 $2.4 Diluted EPS $(0.92) $0.89 $0.02 $0.06 $0.04 Diluted shares 50.2 50.5 (1) Reconciliation to GAAP provided on slides 37 and 38. (2) Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance. (3) Income tax adjustments include the effect of permanent book-tax differences attributable to stock-based compensation and the effect of a valuation allowance recorded against a portion of our deferred tax assets. (4) Adjusted diluted EPS may not sum due to rounding. Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 34 EPS Calculation: Q4 2023 ($ in millions, except per share amounts) Adjusted EPS – Q4 2023 As Reported Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations Income Tax Adjustments(3) As Adjusted(4) Adjusted EBITDA(1) $25.2 $— $— $25.2 Interest expense and amortization of debt discounts and fees (12.3) — — (12.3) Depreciation and amortization (7.7) — — (7.7) Stock-based compensation (1.7) — — (1.7) Unusual or nonrecurring items that are not typical of ongoing operations(2) (11.4) 11.4 — — (Loss) income before income taxes (7.9) 11.4 — 3.5 Benefit from (provision for) income taxes 1.5 (2.2) 0.3 (0.4) Net (loss) income attributable to Enhabit, Inc. $(6.4) $9.2 $0.3 $3.1 Diluted EPS $(0.13) $0.18 $0.01 $0.06 Diluted shares 50.0 50.0 (1) Reconciliation to GAAP provided on slides 37 and 38. (2) Unusual or nonrecurring items in the three months ended December 31, 2023 include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities. (3) Income tax adjustments include revisions to the estimates of tax balances as of the Separation date and the effect of permanent book-tax differences attributable to stock-based compensation. (4) Adjusted diluted EPS may not sum due to rounding. Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 35 EPS Calculation: 2024 ($ in millions, except per share amounts) Adjusted EPS – 2024 As Reported Impairment of Goodwill Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations Income Tax Adjustments(3) As Adjusted(4) Adjusted EBITDA(1) $100.1 $— $— $— $100.1 Interest expense and amortization of debt discounts and fees (42.9) — — — (42.9) Depreciation and amortization (31.5) — — — (31.5) Gain on disposal of assets 0.7 — — — 0.7 Impairment of goodwill (161.7) 161.7 — — — Stock-based compensation (11.7) — — — (11.7) Unusual or nonrecurring items that are not typical of ongoing operations (2) (13.2) — 13.2 — — (Loss) income before income taxes (160.2) 161.7 13.2 — 14.7 Benefit from (provision for) income taxes 4.0 (20.3) (3.4) 15.8 (3.9) Net (loss) income attributable to Enhabit, Inc. $(156.2) $141.4 $9.8 $15.8 $10.8 Diluted EPS $(3.11) $2.82 $0.20 $0.31 $0.21 Diluted shares 50.2 50.4 (1) Reconciliation to GAAP provided on slides 37 and 38. (2) Unusual or nonrecurring items in the year ended December 31, 2024 include costs associated with shareholder activism, the strategic review process that concluded in May 2024, nonroutine litigation, and severance. (3) Income tax adjustments include the effect of permanent book-tax differences attributable to stock-based compensation and the effect of a valuation allowance recorded against a portion of our deferred tax assets. (4) Adjusted diluted EPS may not sum due to rounding. Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 36 EPS Calculation: 2023 Reconciliations to GAAP provided in Appendix ($ in millions, except per share amounts) Adjusted EPS – 2023 As Reported Impairment of Goodwill Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations Income Tax Adjustments(3) As Adjusted(4) Adjusted EBITDA(1) $97.6 $— $— $— $97.6 Interest expense and amortization of debt discounts and fees (43.0) — — — (43.0) Depreciation and amortization (30.9) — — — (30.9) Gain on disposal of assets 0.3 — — — 0.3 Impairment of goodwill (85.8) 85.8 — — — Stock-based compensation (8.9) — — — (8.9) Unusual or nonrecurring items that are not typical of ongoing operations(2) (21.2) — 21.2 — — (Loss) income before income taxes (91.9) 85.8 21.2 — 15.1 Benefit from (provision for) income taxes 11.4 (11.1) (5.1) 0.9 (3.9) Net (loss) income attributable to Enhabit, Inc. $(80.5) $74.7 $16.1 $0.9 $11.2 Diluted EPS $(1.61) $1.50 $0.32 $0.02 $0.22 Diluted shares 49.9 49.9 (1) Reconciliation to GAAP provided on slides 37 and 38. (2) Unusual or nonrecurring items in the year ended December 31, 2023 include costs associated with nonroutine litigation, restructuring activities, one-time standalone transition costs, shareholder activism and the strategic review process that concluded in May 2024. (3) Income tax adjustments include revisions to the estimates of tax balances as of the Separation date and the effect of permanent book-tax differences attributable to stock-based compensation. (4) Adjusted diluted EPS may not sum due to rounding.

 
Enhabit Home Health & Hospice 37 Reconciliation of Net Loss to Adjusted EBITDA – Consolidated ($ in millions) Fourth Quarter YTD 2024 2023 2024 2023 Net loss $(45.8) $(5.9) $(154.0) $(79.0) Interest expense and amortization of debt discounts and fees 10.1 12.3 42.9 43.0 Benefit from income taxes (5.5) (1.5) (4.0) (11.4) Depreciation and amortization 7.9 7.7 31.5 30.9 Gain on disposal of assets (0.2) — (0.7) (0.3) Impairment of goodwill 53.8 — 161.7 85.8 Stock-based compensation 3.9 1.7 11.7 8.9 Net income attributable to noncontrolling interests (0.2) (0.5) (2.2) (1.5) Unusual or nonrecurring items that are not typical of ongoing operations(1) 1.1 11.4 13.2 21.2 Adjusted EBITDA $25.1 $25.2 $100.1 $97.6 (1) Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance; the year ended December 31, 2024 also includes costs associated with shareholder activism and the strategic review process that concluded in May 2024; in the three months ended December 31, 2023, they include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities; the year ended December 31, 2023 also includes costs associated with one-time standalone transition costs and shareholder activism. Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 38 Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA ($ in millions) Fourth Quarter YTD 2024 2023 2024 2023 Net cash provided by operating activities $(4.1) $2.8 $51.2 $48.4 Interest expense excluding amortization of debt discounts and fees 9.7 11.2 41.4 40.9 Current portion of (benefit from) provision for income taxes 0.2 (3.0) 1.7 0.2 Change in assets and liabilities, excluding derivative instrument 18.4 3.1 (5.2) (11.9) Net income attributable to noncontrolling interests (0.2) (0.5) (2.2) (1.5) Unusual or nonrecurring items that are not typical of ongoing operations 1.1 11.4 13.2 21.2 Other — 0.2 — 0.3 Adjusted EBITDA $25.1 $25.2 $100.1 $97.6 (1) Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance; the year ended December 31, 2024 also includes costs associated with shareholder activism and the strategic review process that concluded in May 2024; in the three months ended December 31, 2023, they include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities; the year ended December 31, 2023 also includes costs associated with one-time standalone transition costs and shareholder activism. Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 39 Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow PLACE HOLDER – WILL NEED: • EBITDA to Net income • Adjusted EPS to reported EPS and Net income ($ in millions) Fourth Quarter YTD 2024 2023 2024 2023 Net cash provided by operating activities $(4.1) $2.8 $51.2 $48.4 Unusual or nonrecurring items that are not typical of ongoing operations(1) 1.1 11.4 13.2 21.2 Capital expenditures for maintenance (0.6) 0.2 (3.7) (3.4) Other working capital adjustments (0.7) (2.5) (3.5) (4.2) Distributions paid to noncontrolling interests of consolidated affiliates (1.5) (0.7) (3.7) (3.2) Adjusted free cash flow $(5.8) $11.2 $53.5 $58.8 (1) Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance; the year ended December 31, 2024 also includes costs associated with shareholder activism and the strategic review process that concluded in May 2024; in the three months ended December 31, 2023, they include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities; the year ended December 31, 2023 also includes costs associated with one-time standalone transition costs and shareholder activism. Reconciliations to GAAP provided in Appendix

 
Enhabit Home Health & Hospice 40 Reconciliation of Gross Margin to Adjusted EBITDA Margin Fourth Quarter YTD 2024 2023 2024 2023 Gross margin as a percentage of revenue 48.5 % 48.8 % 48.7 % 48.8 % General and administrative expenses (40.5) % (43.9) % (41.2) % (42.2) % Gains on disposal of assets (0.1) % — % (0.1) % — % Stock-based compensation 1.5 % 0.6 % 1.1 % 0.8 % Noncontrolling interests (0.1) % (0.2) % (0.2) % (0.1) % Unusual or nonrecurring items that are not typical of ongoing operations(1) 0.4 % 4.4 % 1.3 % 2.0 % Adjusted EBITDA Margin 9.7 % 9.7 % 9.7 % 9.3 % (1) Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance; the year ended December 31, 2024 also includes costs associated with shareholder activism and the strategic review process that concluded in May 2024; in the three months ended December 31, 2023, they include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities; the year ended December 31, 2023 also includes costs associated with one-time standalone transition costs and shareholder activism. Reconciliations to GAAP provided in Appendix