Acadia Healthcare Beats Q1, Faces Rising Costs

Acadia Healthcare reported first-quarter 2025 adjusted earnings of $0.40 per share, surpassing analyst expectations despite a significant decline in profit from the prior year due to increased legal and investigation-related expenses. Revenue was flat at $770.5 million, meeting consensus forecasts, and the company reaffirmed its full-year guidance for revenue of $3.3 to $3.4 billion and adjusted EPS of $2.50 to $2.80. While patient volumes and same-facility revenue showed modest increases, total expenses surged primarily from government investigations and restructuring costs. Acadia plans to expand capacity by adding 800 to 1,000 new beds this year, reflecting ongoing growth efforts amid financial challenges. The company's shares have fallen over 38% in the past three months and nearly 64% over the last year despite the positive earnings surprise. Investors remain cautious as future performance will depend on management’s ability to control rising costs and improve growth.