Solid Results Boosted Addus HomeCare Corp. (ADUS) in Q2

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 11.28% (gross) and 11.02% (net), compared to the Russell 2000 Growth Index by 11.97%. Equities posted double-digit returns in the second quarter as global economic activity measures lifted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, TimesSquare Capital Small Cap Growth Strategy highlighted stocks such as Addus HomeCare Corporation (NASDAQ:ADUS). Addus HomeCare Corporation (NASDAQ:ADUS) offers personal care services to the elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization. The one-month return of Addus HomeCare Corporation (NASDAQ:ADUS) was -2.37%, and its shares lost 13.64% of their value over the last 52 weeks. On September 11, 2025, Addus HomeCare Corporation (NASDAQ:ADUS) stock closed at $112.38 per share, with a market capitalization of $2.069 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Addus HomeCare Corporation (NASDAQ:ADUS) in its second quarter 2025 investor letter:

"Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that deserve premium pricing, or specialized service providers. Addus HomeCare Corporation (NASDAQ:ADUS), a provider of in-home personal care services, rose 16% due to solid first quarter results. The personal care segment remains a bright spot, driven by stable volumes and the continued benefit from favorable rate increases in recent quarters."

Addus HomeCare Corporation (NASDAQ:ADUS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Addus HomeCare Corporation (NASDAQ:ADUS) at the end of the second quarter, which was 24 in the previous quarter. In the second quarter of 2025, Addus HomeCare Corporation (NASDAQ:ADUS) reported total revenue of $349.4 million, an increase of 21.8% compared Q2 2024. While we acknowledge the potential of Addus HomeCare Corporation (NASDAQ:ADUS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Addus HomeCare Corporation (NASDAQ:ADUS) and shared TimesSquare Capital U.S. Small Cap Growth Strategy's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.