Accendra Health (NYSE: ACH) posts Q2 2026 loss, cuts $385M of debt
Rhea-AI Filing Summary
Accendra Health reported second quarter 2026 results for its continuing operations, highlighting both ongoing losses and significant balance sheet changes. Net revenue was $613.2 million, down from $681.9 million a year earlier, with a GAAP loss from continuing operations of $89.1 million versus $83.8 million. Adjusted net loss was $14.3 million compared with adjusted income of $20.5 million, and Adjusted EBITDA declined to $60.1 million from $96.6 million. Free cash flow swung to negative $25.1 million from positive $15.2 million, while cash and cash equivalents fell to $7.7 million at June 30, 2026.
The company completed a balance sheet optimization, reducing outstanding debt by $385 million in the quarter and extending its weighted average debt maturity from about 2.7 to 5.5 years, leaving net debt at $1.71 billion. For full-year 2026, Accendra reaffirmed and updated guidance to revenue of $2.45–$2.55 billion, Adjusted EBITDA of $300–$320 million, and free cash flow around breakeven to slightly positive. The company also disclosed that President & CEO Edward A. Pesicka intends to retire by the end of 2026, with a succession process underway.
Positive
- Total debt reduced by $385 million in Q2 2026 through a balance sheet optimization transaction, lowering funded debt from $2.12 billion to $1.75 billion and extending the weighted average debt maturity to about 5.5 years.
- Full-year 2026 outlook still targets $2.45–$2.55 billion revenue and $300–$320 million Adjusted EBITDA, with free cash flow expected to be breakeven to slightly positive despite current-period losses.
- Net loss dramatically improved versus prior year total company performance, with Q2 2026 net loss at $89.1 million compared with $869.1 million in Q2 2025, as large discontinued-operations losses did not recur.
Negative
- Q2 2026 net revenue from continuing operations declined to $613.2 million from $681.9 million, and YTD revenue fell to $1.24 billion from $1.36 billion, indicating a double-digit top-line contraction.
- Profitability weakened materially: Q2 Adjusted EBITDA declined to $60.1 million from $96.6 million, and free cash flow turned to negative $25.1 million from positive $15.2 million; YTD free cash flow was negative $27.1 million versus positive $50.7 million.
- Cash and cash equivalents decreased sharply to $7.7 million at June 30, 2026 from $282.0 million at December 31, 2025, leaving the company with limited on-balance-sheet liquidity relative to $1.71 billion of net debt.
- The company remains loss-making on a GAAP basis, with Q2 2026 loss from continuing operations of $89.1 million and year-to-date loss of $95.5 million, and a total deficit of $550.9 million on the balance sheet.
- President & CEO Edward A. Pesicka has announced his intention to retire by the end of 2026 and to leave the Board in 2026, introducing leadership transition risk even as strategic and cost initiatives continue.
Insights
Analyzing...
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Free cash flow financial
Balance Sheet Optimization Transaction financial
exit and realignment charges financial
non-GAAP financial measures financial
Earnings Snapshot
Company expects 2026 revenue of $2.45–$2.55 billion, Adjusted EBITDA of $300–$320 million, and free cash flow breakeven to slightly positive.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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Securities registered pursuant to Section 12(b) of the Act:
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Name of each exchange on which registered | ||
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 (see General Instruction A.2. below):
| Written communications 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)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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 August 10, 2026, Accendra Health, Inc. (the “Company”) issued a press release regarding its financial results for the second quarter and six months ended June 30, 2026. The Company is furnishing the press release attached hereto as Exhibit 99.1 pursuant to Item 2.02 of Form 8-K. In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
| Item 7.01 | Regulation FD Disclosure. |
On August 10, 2026, the Company posted an earnings presentation on the Investor Relations section of its website. The Company is furnishing the earnings presentation attached hereto as Exhibit 99.2 pursuant to Item 7.01 of Form 8-K. In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit No. |
Description | |
| 99.1 | Press Release issued by the Company on August 10, 2026, announcing second quarter results (furnished pursuant to Item 2.02) | |
| 99.2 | Earnings Presentation dated August 10, 2026 (furnished pursuant to Item 7.01) | |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document) |
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.
| ACCENDRA HEALTH, INC. | |
| August 10, 2026 | /s/ Heath H. Galloway |
| Heath H. Galloway | |
| Executive Vice President, General Counsel and Corporate Secretary |
Exhibit 99.1
Accendra Health Reports Second Quarter 2026 Financial Results
Reduced Total Debt By $385 Million In Second Quarter
CEO Ed Pesicka Announces Intention To Retire By The End of 2026
RICHMOND, VA – August 10, 2026 – Accendra Health, Inc. (NYSE: ACH) (the Company) today reported financial results for the second quarter ended June 30, 2026. Unless otherwise noted, the results herein reflect the Company’s continuing operations, which represent what was previously the Patient Direct segment and certain functional operations.
“Throughout the second quarter, we moved farther along toward the complete separation from Owens & Minor while also putting a large commercial payor exit behind us. In the last six months, we have eliminated well over $125 million of annualized operating expense directly associated with this large commercial payor, and we are now beginning to reset our business for accelerated future growth. Additionally, we reduced outstanding debt by $385 million and comprehensively reset our debt maturity profile through our balance sheet optimization transaction which closed in June,” said Edward A. Pesicka, President & Chief Executive Officer, Accendra Health.
“We also saw continued progress on key growth initiatives and new strategic partnerships that have both topline and bottom line expansion opportunities that will begin to emerge in late 2026 and accelerate in 2027. These include the nationwide rollout of the Sleep Center of Excellence, new commercial agreements, and an increased emphasis on expense rationalization,” Pesicka concluded.
Earlier today, the Company announced in a separate press release that President & CEO Edward A. Pesicka has informed the Board of Directors that he intends to retire from his role by the end of 2026. Pesicka also plans to step down from the Board of Directors before the year's end. The Board of Directors maintains a comprehensive succession planning process which has previously identified potential candidates with the capabilities to succeed Pesicka and will leverage that preparation to select his successor in the coming months. During this period, Pesicka will continue to lead the business, drive the execution of the Company’s strategic priorities, and facilitate a smooth transition to the Company’s next President and CEO once selected.
| Second Quarter Results(1) | YTD | YTD | |||||||||||
| ($ in millions, except per share data) | 2Q26 | 2Q25 | 2026 | 2025 | |||||||||
| Net Revenue | $ | 613.2 | $ | 681.9 | $ | 1,241.0 | $ | 1,355.8 | |||||
| Loss from continuing operations, net of tax, GAAP | $ | (89.1) | $ | (83.8) | $ | (95.5) | $ | (87.6) | |||||
| Adj. (loss) income from continuing operations, net of tax, Non-GAAP | $ | (14.3) | $ | 20.5 | $ | (17.4) | $ | 43.7 | |||||
| Adj. EBITDA, Non-GAAP | $ | 60.1 | $ | 96.6 | $ | 118.5 | $ | 192.7 | |||||
| Free cash flow, Non-GAAP | $ | (25.1) | $ | 15.2 | $ | (27.1) | $ | 50.7 | |||||
| Loss from continuing operations, net of tax, per common share, GAAP | $ | (1.16) | $ | (1.09) | $ | (1.25) | $ | (1.14) | |||||
| Adj. (loss) income from continuing operations, net of tax, per common share, Non-GAAP | $ | (0.19) | $ | 0.26 | $ | (0.23) | $ | 0.55 |
| (1) | Reconciliations of the differences between the non-GAAP financial measures presented in this release and their most directly comparable GAAP financial measures are included in the tables below. |
1
2026 Continuing Operations Financial Outlook
The company is updating its prior financial guidance for the full year 2026, summarized below.
Revenue: $2.45 billion - $2.55 billion
Adjusted EBITDA: $300 million - $320 million
Free cash flow: breakeven to slightly positive
Although the Company provides guidance for free cash flow and adjusted EBITDA (which are non-GAAP financial measures), it is not able to forecast the most directly comparable measures calculated and presented in accordance with GAAP without unreasonable effort. Certain elements of the composition of the GAAP amounts are not predictable, making it impracticable for the Company to forecast. Such elements include, but are not limited to, restructuring and acquisition charges which could have a significant and unpredictable impact on our GAAP results. As a result, no GAAP guidance or reconciliation of the Company’s free cash flow or adjusted EBITDA guidance is provided. The outlook is based on certain assumptions, including, but not limited to market conditions, consumer demand, supply chain stability, interest rates, and other factors that are subject to the risk factors discussed in the Company’s filings with the SEC.
Investor Conference Call for Second Quarter 2026 Financial Results
Accendra Health will host a conference call for investors and analysts on Monday, August 10, 2026, at 8:00AM E.T. Participants may access the call via the toll-free dial-in number at 1-888-300-2035, or the toll dial-in number at 1-646-517-7437. The conference ID access code is 1058917. All interested stakeholders are encouraged to access the simultaneous live webcast by visiting the Investor Relations page of the Accendra Health website available at investors.accendrahealth.com/events-and-presentations/. A replay of the webcast can be accessed following the presentation at the link provided above.
Safe Harbor
This release is intended to be disclosure through methods reasonably designed to provide broad, non-exclusionary distribution to the public in compliance with the SEC’s Fair Disclosure Regulation. This release contains certain “forward looking” statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, the statements in this release regarding our future prospects and performance, including our expectations with respect to our financial performance, our 2026 financial results, our expectations regarding the performance of our business following the completion of the sale of the Products & Healthcare Services business, uncertainty about the time required to select and appoint the Company’s next President and CEO, our cost saving initiatives, future indebtedness and growth, industry trends, as well as statements related to our expectations regarding the performance of our business, including our ability to address macro and market conditions. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements. Investors should refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 20, 2026, including the section captioned “Item 1A. Risk Factors,” as applicable, and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with or furnished to the SEC, for a discussion of certain known risk factors that could cause the Company’s actual results to differ materially from its current estimates. These filings are available at www.accendrahealth.com. Given these risks and uncertainties, the Company can give no assurance that any forward-looking statements will, in fact, transpire and, therefore, cautions investors not to place undue reliance on them. The Company specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
About Accendra Health
Accendra Health, Inc. (NYSE: ACH) is a leading nationwide provider of products, technology and services that support health beyond the hospital for millions of people each year. We connect patients, providers, and insurers, delivering innovative solutions that help promote better health outcomes and improve quality of life for people living with chronic, complex health conditions. Backed by the industry-leading expertise of our Apria and Byram brands, Accendra Health is reimagining the future of home-based care. To learn more about our broad portfolio of essentials for diabetes, sleep health, wound care, respiratory care, urology and ostomy, visit www.accendrahealth.com.
2
Accendra Health, Inc.
Condensed Consolidated Statements of Operations (unaudited)
(dollars in thousands, except per share data)
| Three Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Net revenue | $ | 613,234 | $ | 681,917 | ||||
| Operating costs and expenses: | ||||||||
| Cost of net revenue | 349,827 | 357,315 | ||||||
| Selling, general and administrative expenses | 243,560 | 267,853 | ||||||
| Transaction breakage fee | — | 80,000 | ||||||
| Acquisition-related charges and intangible amortization | 29,229 | 13,918 | ||||||
| Exit and realignment charges, net | 25,768 | 2,541 | ||||||
| Total operating costs and expenses | 648,384 | 721,627 | ||||||
| Operating loss | (35,150 | ) | (39,710 | ) | ||||
| Interest expense, net | 34,539 | 26,009 | ||||||
| Loss on modification and extinguishment of debt | 17,296 | — | ||||||
| Transaction financing fees, net | — | 18,288 | ||||||
| Other expense, net | 643 | 942 | ||||||
| Loss from continuing operations before income taxes | (87,628 | ) | (84,949 | ) | ||||
| Income tax provision (benefit) | 1,442 | (1,127 | ) | |||||
| Loss from continuing operations, net of tax | (89,070 | ) | (83,822 | ) | ||||
| Loss from discontinued operations, net of tax | — | (785,236 | ) | |||||
| Net loss | $ | (89,070 | ) | $ | (869,058 | ) | ||
| Basic loss per common share | ||||||||
| Loss from continuing operations, net of tax | $ | (1.16 | ) | $ | (1.09 | ) | ||
| Loss from discontinued operations, net of tax | — | (10.21 | ) | |||||
| Net loss | $ | (1.16 | ) | $ | (11.30 | ) | ||
| Diluted loss per common share | ||||||||
| Loss from continuing operations, net of tax | $ | (1.16 | ) | $ | (1.09 | ) | ||
| Loss from discontinued operations, net of tax | — | (10.21 | ) | |||||
| Net loss | $ | (1.16 | ) | $ | (11.30 | ) | ||
3
Accendra Health, Inc.
Condensed Consolidated Statements of Operations (unaudited)
(dollars in thousands, except per share data)
| Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Net revenue | $ | 1,241,014 | $ | 1,355,801 | ||||
| Operating costs and expenses: | ||||||||
| Cost of net revenue | 699,579 | 711,957 | ||||||
| Selling, general and administrative expenses | 498,786 | 530,223 | ||||||
| Transaction breakage fee | — | 80,000 | ||||||
| Acquisition-related charges and intangible amortization | 58,458 | 37,374 | ||||||
| Exit and realignment charges, net | 2,216 | 16,166 | ||||||
| Total operating costs and expenses | 1,259,039 | 1,375,720 | ||||||
| Operating loss | (18,025 | ) | (19,919 | ) | ||||
| Interest expense, net | 66,887 | 50,223 | ||||||
| Loss on modification and extinguishment of debt | 17,296 | — | ||||||
| Transaction financing fees, net | — | 18,288 | ||||||
| Other expense, net | 1,665 | 1,917 | ||||||
| Loss from continuing operations before income taxes | (103,873 | ) | (90,347 | ) | ||||
| Income tax benefit | (8,336 | ) | (2,715 | ) | ||||
| Loss from continuing operations, net of tax | (95,537 | ) | (87,632 | ) | ||||
| Loss from discontinued operations, net of tax | — | (806,408 | ) | |||||
| Net loss | $ | (95,537 | ) | $ | (894,040 | ) | ||
| Basic loss per common share | ||||||||
| Loss from continuing operations, net of tax | $ | (1.25 | ) | $ | (1.14 | ) | ||
| Loss from discontinued operations, net of tax | — | (10.46 | ) | |||||
| Net loss | $ | (1.25 | ) | $ | (11.60 | ) | ||
| Diluted loss per common share | ||||||||
| Loss from continuing operations, net of tax | $ | (1.25 | ) | $ | (1.14 | ) | ||
| Loss from discontinued operations, net of tax | — | (10.46 | ) | |||||
| Net loss | $ | (1.25 | ) | $ | (11.60 | ) | ||
4
Accendra Health, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(dollars in thousands)
| June 30, 2026 | December 31, 2025 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 7,651 | $ | 281,989 | ||||
| Accounts receivable, net | 120,082 | 95,907 | ||||||
| Inventories, net | 73,345 | 74,435 | ||||||
| Other current assets | 70,371 | 95,540 | ||||||
| Total current assets | 271,449 | 547,871 | ||||||
| Patient service equipment and other fixed assets, net of accumulated depreciation and amortization of $196,257 and $207,595 | 208,666 | 256,161 | ||||||
| Operating lease assets | 97,008 | 109,099 | ||||||
| Goodwill | 1,228,140 | 1,228,140 | ||||||
| Intangible assets, net | 78,007 | 136,465 | ||||||
| Other assets, net | 224,142 | 174,025 | ||||||
| Total assets | $ | 2,107,412 | $ | 2,451,761 | ||||
| Liabilities and deficit | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 352,798 | $ | 363,565 | ||||
| Accrued payroll and related liabilities | 41,832 | 69,426 | ||||||
| Current portion of long-term debt | — | 250,000 | ||||||
| Other current liabilities | 271,586 | 264,084 | ||||||
| Total current liabilities | 666,216 | 947,075 | ||||||
| Long-term debt, excluding current portion | 1,718,063 | 1,799,876 | ||||||
| Operating lease liabilities, excluding current portion of $38,397 and $43,272 | 63,235 | 70,317 | ||||||
| Other liabilities | 210,836 | 95,471 | ||||||
| Total liabilities | 2,658,350 | 2,912,739 | ||||||
| Total deficit | (550,938 | ) | (460,978 | ) | ||||
| Total liabilities and deficit | $ | 2,107,412 | $ | 2,451,761 | ||||
5
Accendra Health, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(dollars in thousands)
| Three Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Operating activities: | ||||||||
| Net loss | $ | (89,070 | ) | $ | (869,058 | ) | ||
| Loss from discontinued operations, net of tax | — | 785,236 | ||||||
| Adjustments to reconcile net loss to cash (used for) provided by operating activities: | ||||||||
| Depreciation and amortization | 65,700 | 42,986 | ||||||
| Share-based compensation expense | 4,004 | 4,872 | ||||||
| Deferred income tax (benefit) provision | (48,060 | ) | 13,184 | |||||
| Changes in operating lease right-of-use assets and lease liabilities | 13 | (83 | ) | |||||
| Gain from sale and dispositions of patient service equipment | (3,270 | ) | (3,969 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (16,379 | ) | 17,146 | |||||
| Inventories | (8,060 | ) | 4,673 | |||||
| Accounts payable | (2,003 | ) | (20,863 | ) | ||||
| Net change in other assets and liabilities | 67,772 | (38,376 | ) | |||||
| Other, net | 3,347 | 4,657 | ||||||
| Cash provided by operating activities from discontinued operations | — | 97,205 | ||||||
| Cash (used for) provided by operating activities | (26,006 | ) | 37,610 | |||||
| Investing activities: | ||||||||
| Additions to patient service equipment ($43,796 and $57,260) and other fixed assets | (47,586 | ) | (57,623 | ) | ||||
| Proceeds from sale of patient service equipment | 15,303 | 18,120 | ||||||
| Additions to computer software | (1,062 | ) | (1,548 | ) | ||||
| Other, net | 2,100 | (1,500 | ) | |||||
| Cash used for investing activities from discontinued operations | — | (10,366 | ) | |||||
| Cash used for investing activities | (31,245 | ) | (52,917 | ) | ||||
| Financing activities: | ||||||||
| Borrowings under Revolving Credit Agreement | 279,500 | 853,200 | ||||||
| Repayments under Revolving Credit Agreement | (534,500 | ) | (815,700 | ) | ||||
| Proceeds from debt issuance | 1,237,315 | — | ||||||
| Repayments of debt | (1,237,315 | ) | — | |||||
| Financing costs paid | (16,791 | ) | — | |||||
| Repurchase of common stock | — | (5,153 | ) | |||||
| Other, net | (187 | ) | (32 | ) | ||||
| Cash used for financing activities from discontinued operations | — | (616 | ) | |||||
| Cash (used for) provided by financing activities | (271,978 | ) | 31,699 | |||||
| Effect of exchange rate changes on cash and cash equivalents | — | 1,259 | ||||||
| Net (decrease) increase in cash and cash equivalents | (329,229 | ) | 17,651 | |||||
| Cash and cash equivalents at beginning of period (¹) | 336,880 | 59,436 | ||||||
| Cash and cash equivalents at end of period (¹) | $ | 7,651 | $ | 77,087 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Income taxes (refunded) paid, net | $ | (438 | ) | $ | 5,333 | |||
| Interest paid | $ | 49,878 | $ | 38,358 | ||||
| Noncash investing activity: | ||||||||
| Unpaid purchases of patient service equipment and other fixed assets at end of period | $ | 52,684 | $ | 73,437 | ||||
| (1) | This amount includes cash from discontinued operations of $39 million and $30 million as of June 30, 2025 and March 31, 2025. |
6
Accendra Health, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(dollars in thousands)
| Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Operating activities: | ||||||||
| Net loss | $ | (95,537 | ) | $ | (894,040 | ) | ||
| Loss from discontinued operations, net of tax | — | 806,408 | ||||||
| Adjustments to reconcile net loss to cash (used for) provided by operating activities: | ||||||||
| Depreciation and amortization | 127,442 | 85,888 | ||||||
| Share-based compensation expense | 7,094 | 9,293 | ||||||
| Deferred income tax (benefit) provision | (45,489 | ) | 8,789 | |||||
| Changes in operating lease right-of-use assets and lease liabilities | 135 | 744 | ||||||
| Gain from sale and dispositions of patient service equipment | (58,779 | ) | (9,322 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (24,175 | ) | 21,891 | |||||
| Inventories | 1,090 | (1,646 | ) | |||||
| Accounts payable | 6,772 | (4,739 | ) | |||||
| Net change in other assets and liabilities | (1,403 | ) | (56,441 | ) | ||||
| Other, net | 6,767 | 5,058 | ||||||
| Cash provided by operating activities from discontinued operations | — | 30,661 | ||||||
| Cash (used for) provided by operating activities | (76,083 | ) | 2,544 | |||||
| Investing activities: | ||||||||
| Additions to patient service equipment ($85,139 and $101,744) and other fixed assets | (89,232 | ) | (103,416 | ) | ||||
| Proceeds from sale of patient service equipment | 111,718 | 35,004 | ||||||
| Additions to computer software | (1,906 | ) | (3,877 | ) | ||||
| Other, net | 2,100 | (1,910 | ) | |||||
| Cash used for investing activities from discontinued operations | — | (26,918 | ) | |||||
| Cash provided by (used for) investing activities | 22,680 | (101,117 | ) | |||||
| Financing activities: | ||||||||
| Borrowings under Revolving Credit Agreement | 548,600 | 1,630,184 | ||||||
| Repayments under Revolving Credit Agreement | (752,100 | ) | (1,495,184 | ) | ||||
| Proceeds from debt issuance | 1,237,315 | — | ||||||
| Repayments of debt | (1,237,315 | ) | — | |||||
| Financing costs paid | (16,791 | ) | — | |||||
| Repurchase of common stock | — | (6,656 | ) | |||||
| Other, net | (603 | ) | (178 | ) | ||||
| Cash used for financing activities from discontinued operations | — | (3,689 | ) | |||||
| Cash (used for) provided by financing activities | (220,894 | ) | 124,477 | |||||
| Effect of exchange rate changes on cash and cash equivalents | (41 | ) | 1,801 | |||||
| Net (decrease) increase in cash and cash equivalents | (274,338 | ) | 27,705 | |||||
| Cash and cash equivalents at beginning of period (¹) | 281,989 | 49,382 | ||||||
| Cash and cash equivalents at end of period (¹) | $ | 7,651 | $ | 77,087 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Income taxes paid, net | $ | 19,604 | $ | 5,458 | ||||
| Interest paid | $ | 79,324 | $ | 65,845 | ||||
| Noncash investing activity: | ||||||||
| Unpaid purchases of patient service equipment and other fixed assets at end of period | $ | 52,684 | $ | 73,437 | ||||
| (1) | This amount includes cash from discontinued operations of $39 million and $22 million as of June 30, 2025 and December 31, 2024. |
7
Accendra Health, Inc.
Net Loss Per Common Share (unaudited)
(dollars in thousands, except per share data)
| Three Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Loss from continuing operations, net of tax | $ | (89,070 | ) | $ | (83,822 | ) | ||
| Loss from discontinued operations, net of tax | — | (785,236 | ) | |||||
| Net loss | $ | (89,070 | ) | $ | (869,058 | ) | ||
| Weighted average shares outstanding - basic | 76,695 | 76,935 | ||||||
| Dilutive shares | — | — | ||||||
| Weighted average shares outstanding - diluted | 76,695 | 76,935 | ||||||
| Basic loss per common share | ||||||||
| Loss from continuing operations, net of tax | $ | (1.16 | ) | $ | (1.09 | ) | ||
| Loss from discontinued operations, net of tax | — | (10.21 | ) | |||||
| Net loss | $ | (1.16 | ) | $ | (11.30 | ) | ||
| Diluted loss per common share: | ||||||||
| Loss from continuing operations, net of tax | $ | (1.16 | ) | $ | (1.09 | ) | ||
| Loss from discontinued operations, net of tax | — | (10.21 | ) | |||||
| Net loss | $ | (1.16 | ) | $ | (11.30 | ) | ||
Share-based awards of approximately 1.1 million for the three months ended June 30, 2026 and 2.5 million for the three months ended June 30, 2025 were excluded from the calculation of diluted loss per common share as the effect would be anti-dilutive.
8
Accendra Health, Inc.
Net Loss Per Common Share (unaudited)
(dollars in thousands, except per share data)
| Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Loss from continuing operations, net of tax | $ | (95,537 | ) | $ | (87,632 | ) | ||
| Loss from discontinued operations, net of tax | — | (806,408 | ) | |||||
| Net loss | $ | (95,537 | ) | $ | (894,040 | ) | ||
| Weighted average shares outstanding - basic | 76,638 | 77,102 | ||||||
| Dilutive shares | — | — | ||||||
| Weighted average shares outstanding - diluted | 76,638 | 77,102 | ||||||
| Basic loss per common share | ||||||||
| Loss from continuing operations, net of tax | $ | (1.25 | ) | $ | (1.14 | ) | ||
| Loss from discontinued operations, net of tax | — | (10.46 | ) | |||||
| Net loss | $ | (1.25 | ) | $ | (11.60 | ) | ||
| Diluted loss per common share: | ||||||||
| Loss from continuing operations, net of tax | $ | (1.25 | ) | $ | (1.14 | ) | ||
| Loss from discontinued operations, net of tax | — | (10.46 | ) | |||||
| Net loss | $ | (1.25 | ) | $ | (11.60 | ) | ||
Share-based awards of approximately 1.2 million for the six months ended June 30, 2026 and 2.2 million for the six months ended June 30, 2025 were excluded from the calculation of diluted loss per common share as the effect would be anti-dilutive.
9
Accendra Health, Inc.
GAAP/Non-GAAP Reconciliations (unaudited)
(dollars in thousands, except per share data)
The following table provides a reconciliation of reported loss from continuing operations, net of tax and loss from continuing operations, net of tax, per common share to non-GAAP measures used by management.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Loss from continuing operations, net of tax, as reported (GAAP) | $ | (89,070 | ) | $ | (83,822 | ) | $ | (95,537 | ) | $ | (87,632 | ) | ||||
| Pre-tax adjustments: | ||||||||||||||||
| Acquisition-related charges and intangible amortization (1) | 29,229 | 13,918 | 58,458 | 37,374 | ||||||||||||
| Transaction breakage fee (2) | — | 80,000 | — | 80,000 | ||||||||||||
| Exit and realignment charges, net (3) | 25,768 | 2,541 | 2,216 | 16,166 | ||||||||||||
| Transaction financing fees, net (4) | — | 18,288 | — | 18,288 | ||||||||||||
| Litigation and related charges (5) | — | 121 | 64 | 391 | ||||||||||||
| Loss on modification and extinguishment of debt (8) | 17,296 | — | 17,296 | — | ||||||||||||
| Other (9) | 409 | 424 | 817 | 848 | ||||||||||||
| Income tax benefit on pre-tax adjustments (11) | 2,100 | (10,987 | ) | (728 | ) | (21,719 | ) | |||||||||
| (Loss) income from continuing operations, net of tax, adjusted (non-GAAP) (Adjusted Net (Loss) Income) | $ | (14,268 | ) | $ | 20,483 | $ | (17,414 | ) | $ | 43,716 | ||||||
| Loss from continuing operations, net of tax per common share, as reported (GAAP) | $ | (1.16 | ) | $ | (1.09 | ) | $ | (1.25 | ) | $ | (1.14 | ) | ||||
| After-tax adjustments: | ||||||||||||||||
| Acquisition-related charges and intangible amortization (1) | 0.39 | 0.12 | 0.76 | 0.34 | ||||||||||||
| Transaction breakage fee (2) | — | 1.04 | — | 1.04 | ||||||||||||
| Exit and realignment charges, net (3) | 0.35 | 0.02 | 0.03 | 0.14 | ||||||||||||
| Transaction financing fees, net (4) | — | 0.17 | — | 0.17 | ||||||||||||
| Litigation and related charges (5) | — | — | — | — | ||||||||||||
| Loss on modification and extinguishment of debt (8) | 0.23 | — | 0.22 | — | ||||||||||||
| Other (9) | — | — | 0.01 | — | ||||||||||||
| (Loss) income from continuing operations, net of tax, per common share, adjusted (non-GAAP) (Adjusted EPS) | $ | (0.19 | ) | $ | 0.26 | $ | (0.23 | ) | $ | 0.55 | ||||||
10
Accendra Health, Inc.
GAAP/Non-GAAP Reconciliations (unaudited), continued
The following tables provide reconciliations of loss from continuing operations, net of tax and total debt to non-GAAP measures used by management.
| Three Months Ended June 30, | ||||||||
| (Dollars in thousands) | 2026 | 2025 | ||||||
| Loss from continuing operations, net of tax, as reported (GAAP) | $ | (89,070 | ) | $ | (83,822 | ) | ||
| Income tax provision (benefit) | 1,442 | (1,127 | ) | |||||
| Interest expense, net | 34,539 | 26,009 | ||||||
| Acquisition-related charges and intangible amortization (1) | 29,229 | 13,918 | ||||||
| Transaction breakage fee (2) | — | 80,000 | ||||||
| Exit and realignment charges, net (3) | 25,768 | 2,541 | ||||||
| Transaction financing fees, net (4) | — | 18,288 | ||||||
| Litigation and related charges (5) | — | 121 | ||||||
| Other depreciation and amortization (6) | 36,472 | 35,422 | ||||||
| Stock compensation (7) | 4,004 | 4,861 | ||||||
| Loss on modification and extinguishment of debt (8) | 17,296 | — | ||||||
| Other (9) | 409 | 424 | ||||||
| Adjusted EBITDA (non-GAAP) | 60,089 | 96,635 | ||||||
| Non-cash convert to sale write off expense (10) | 8,482 | 14,152 | ||||||
| Patient service equipment capital expenditures | (43,796 | ) | (57,260 | ) | ||||
| Interest paid | (49,878 | ) | (38,358 | ) | ||||
| Free cash flow (non-GAAP) | $ | (25,103 | ) | $ | 15,169 | |||
| Six Months Ended June 30, | ||||||||
| (Dollars in thousands) | 2026 | 2025 | ||||||
| Loss from continuing operations, net of tax, as reported (GAAP) | $ | (95,537 | ) | $ | (87,632 | ) | ||
| Income tax benefit | (8,336 | ) | (2,715 | ) | ||||
| Interest expense, net | 66,887 | 50,223 | ||||||
| Acquisition-related charges and intangible amortization (1) | 58,458 | 37,374 | ||||||
| Transaction breakage fee (2) | — | 80,000 | ||||||
| Exit and realignment charges, net (3) | 2,216 | 16,166 | ||||||
| Transaction financing fees, net (4) | — | 18,288 | ||||||
| Litigation and related charges (5) | 64 | 391 | ||||||
| Other depreciation and amortization (6) | 68,984 | 70,758 | ||||||
| Stock compensation (7) | 7,607 | 8,952 | ||||||
| Loss on modification and extinguishment of debt (8) | 17,296 | — | ||||||
| Other (9) | 817 | 848 | ||||||
| Adjusted EBITDA (non-GAAP) | 118,456 | 192,653 | ||||||
| Non-cash convert to sale write off expense (10) | 18,898 | 25,683 | ||||||
| Patient service equipment capital expenditures | (85,139 | ) | (101,744 | ) | ||||
| Interest paid | (79,324 | ) | (65,845 | ) | ||||
| Free cash flow (non-GAAP) | $ | (27,109 | ) | $ | 50,747 | |||
| June 30, | March 31, | December 31, | ||||||||||
| (in thousands) | 2026 | 2026 | 2025 | |||||||||
| Total debt, as reported (GAAP) | $ | 1,718,063 | $ | 2,103,191 | $ | 2,049,876 | ||||||
| Cash and cash equivalents | (7,651 | ) | (336,880 | ) | (281,989 | ) | ||||||
| Net debt (non-GAAP) | $ | 1,710,412 | $ | 1,766,311 | $ | 1,767,887 | ||||||
11
Accendra Health, Inc.
GAAP/Non-GAAP Reconciliations (unaudited), continued
The following items have been excluded from our non-GAAP financial measures:
(1) Acquisition-related charges and intangible amortization for the three and six months ended June 30, 2025 includes $6.4 million and $22 million of acquisition-related charges related to the terminated acquisition of Rotech, which consisted primarily of legal and professional fees. Acquisition-related charges and intangible amortization also includes amortization of intangible assets established during acquisition method of accounting for business combinations. Acquisition-related charges consist primarily of one-time costs related to acquisitions, including transaction costs necessary to consummate acquisitions, which consist of investment banking advisory fees and legal fees, director and officer tail insurance expense, as well as transition costs, such as severance and retention bonuses, information technology (IT) integration costs and professional fees. These amounts are highly dependent on the size and frequency of acquisitions and are being excluded to allow for a more consistent comparison with forecasted, current and historical results.
(2) Transaction breakage fee represents a cash payment to Rotech of $80 million during the three and six months ended June 30, 2025 for the termination of the Rotech acquisition.
(3) During the three and six months ended June 30, 2026 exit and realignment charges, net were $26 million and $2.2 million and primarily included a $0.6 million loss and $(51) million gain on sales of patient service equipment in connection with the contract termination with a commercial Payor, P&HS Sale related costs, including reimbursable separation costs of $22 million and $48 million, $2.1 million and $2.5 million in professional fees and charges related to IT and other strategic initiatives of $1.0 million and $3.0 million. Exit and realignment charges, net were $2.5 million and $16 million for the three and six months ended June 30, 2025 and primarily included professional fees associated with strategic initiatives of $1.9 million and $8.1 million. During the six months ended June 30, 2025 exit and realignment charges, net also included $6.8 million related to wind-down costs of Fusion 5. These costs are not normal recurring, cash operating expenses necessary for the Company to operate its business on an ongoing basis.
(4) Transaction financing fees, net for the three and six months ended June 30, 2025 includes $12 million in net interest paid and $6.7 million in recognition of previously deferred debt issuance costs, all in connection with the previously expected Rotech acquisition.
(5) Litigation and related charges includes settlement costs and related charges of legal matters. These costs do not occur in the ordinary course of our business and are inherently unpredictable in timing and amount.
(6) Other depreciation and amortization relates to patient service equipment and other fixed assets, excluding such amounts captured within exit and realignment charges, net or acquisition-related charges and intangible amortization.
(7) Stock compensation includes share-based compensation expense related to our share-based compensation plans, excluding such amounts captured within exit and realignment charges, net or acquisition-related charges and intangible amortization.
(8) Loss on modification and extinguishment of debt of $17 million includes $16 million of debt modification third party fees and $0.8 million in recognition of previously deferred debt issuance costs from the completion of the Balance Sheet Optimization Transaction.
(9) For the three and six months ended June 30, 2026 and 2025, other includes interest costs and net actuarial losses related to our frozen noncontributory, unfunded retirement plan for certain retirees in the U.S.
(10) Non-cash convert to sale write off expense includes non-cash charges primarily for equipment converted from rental to sales, excluding such amounts captured within exit and realignment charges, net. This reflects the non-cash write-off of the remaining book value of patient service equipment at the time of sale. The purchase of patient service equipment is captured within capital expenditures and is subsequently charged to our statements of operations through normal depreciation and this non-cash convert to sale write off expense. This line item does not include non-cash write off expense associated with sales of patient service equipment in connection with the contract termination with a commercial Payor, as such amounts are captured within exit and realignment charges, net.
12
(11) These charges have been tax effected by determining the income tax rate depending on the amount of charges incurred in different tax jurisdictions and the deductibility of those charges for income tax purposes.
Use of Non-GAAP Measures
This earnings release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). In general, the measures exclude items and charges that (i) management does not believe reflect the Company’s core business and relate more to strategic, multi-year corporate activities; or (ii) relate to activities or actions that may have occurred over multiple or in prior periods without predictable trends. Management uses these non-GAAP financial measures internally to evaluate the Company’s performance, evaluate the balance sheet, engage in financial and operational planning and determine incentive compensation.
Management provides these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on its financial and operating results and in comparing the Company’s performance to that of its competitors. However, the non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
The non-GAAP financial measures disclosed by the Company should not be considered substitutes for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth above should be carefully evaluated.
CONTACT:
Investors
Will Parrish
Vice President, Strategy, Corporate Development, & Investor Relations
Investor.Relations@accendra.com
Media
Darla Turner
media@accendra.com
ACH-CORP
ACH-IR
SOURCE: Accendra Health, Inc.
13
Exhibit 99.2
Second Quarter 2026 Continuing Operations Supplemental Slides August 10, 2026
p. 2 This presentation is intended to be disclosure through methods reasonably designed to provide broad, non - exclusionary distribution to the public in compliance with the SEC’s Fair Disclosure Regulation . This presentation contains certain “forward - looking” statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 . These statements include, but are not limited to, the statements in this presentation regarding our future prospects and performance, including our expectations with respect to our financial performance, our 2026 financial results, our expectations regarding the performance of our business following the completion of the sale of the Products & Healthcare Services business, uncertainty about the time required to select and appoint the Company’s next President and CEO, our cost saving initiatives, future indebtedness and growth, industry trends, as well as statements related to our expectations regarding the performance of our business, including our ability to address macro and market conditions . Forward - looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from those projected or contemplated in the forward - looking statements . Investors should refer to the Accendra Health, Inc . ’s (the Company)’s Annual Report on Form 10 - K for the year ended December 31 , 2025 , filed with the SEC on February 20 , 2026 , including the section captioned “Item 1 A . Risk Factors,” as applicable, and subsequent quarterly reports on Form 10 - Q and current reports on Form 8 - K filed with or furnished to the SEC, for a discussion of certain known risk factors that could cause the Company’s actual results to differ materially from its current estimates . These filings are available at www . accendrahealth . com . Given these risks and uncertainties, the Company can give no assurance that any forward - looking statements will, in fact, transpire and, therefore, cautions investors not to place undue reliance on them . The Company specifically disclaims any obligation to update or revise any forward - looking statements, whether as a result of new information, future developments or otherwise . Safe Harbor
p. 3 Non - GAAP This presentation contains financial measures that are not calculated in accordance with U . S . generally accepted accounting principles (GAAP) . In general, the measures exclude items and charges that (i) management does not believe reflect the Company’s core business and relate more to strategic, multi - year corporate activities ; or (ii) relate to activities or actions that may have occurred over multiple or in prior periods without predictable trends . Management uses these non - GAAP financial measures internally to evaluate the Company’s performance, evaluate the balance sheet, engage in financial and operational planning, and determine incentive compensation . Management provides these non - GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on its financial and operating results and in comparing the Company’s performance to that of its competitors . However, the non - GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies . The non - GAAP financial measures disclosed by the Company should not be considered substitutes for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth above should be carefully evaluated .
p. 4 About Accendra Health • Accendra Health, Inc. is a leading nationwide provider of products, technology, and services that support health beyond the hospital for millions of people each year. • We connect patients , providers, and insurers, delivering innovative solutions that help promote better health outcomes and improve quality of life for people living with chronic, complex, and acute health conditions. • Backed by the industry - leading expertise of our Apria and Byram brands, Accendra Health is reimagining the future of home - based care . • To learn more about our broad portfolio of essentials for diabetes, sleep health, wound care, respiratory care, urology, and ostomy, please visit AccendraHealth.com.
p. 5 • Pure - Play Patient Direct Leader • Scaled Chronic Focused Portfolio • National Footprint and Scale • Broad Payor Access and Reach Resilient Earnings Profile Accendra Health At A Glance 19.0% 17.0% 14.0% 8.0% 2.0% 40.0% Diabetes Wound Care Ostomy Urology Incontinence Breast Pumps Sleep Equipment Oxygen Ventilators HME & DME NPWT Diabetes Diverse Mix Across Equipment Product Categories Diverse Commercial Payor Portfolio (1) Soft Goods Durable Medical Equipment Other Payors Payor #1 Payor #2 Payor #3 Payor #4 Payor #5 ▪ Payor mix reflects national parent - level aggregation, with underlying payor contracts diversified across many multiple state level entities within applicable payor organizations CWO Sleep Supplies (1) Based on 2025 data for commercial payors, excluding the previously disclosed terminated large commercial payor contract. Business Highlights ~$2.8B FY25A Revenue ~2.9 million Active Patients ~2,500 Commercial Payor Contracts
p. 6 Q2 & YTD 2026 Adjusted EBITDA and Free Cash Flow $ millions Adjusted EBITDA and free cash flow are non - GAAP financial measures and reconciliation to the most comparable GAAP equivalent fin ancial measure is described in the Company’s Current Report on Form 8 - K filed with the SEC on August 10, 2026. Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Loss from continuing operations, net of tax, as reported (GAAP) (89)$ (96)$ Income tax provision (benefit) 1 (8) Interest expense, net 35 67 Acquisition-related charges and intangible amortization 29 58 Exit and realignment charges, net 26 2 Litigation and related charges - 0 Other depreciation and amortization 36 69 Stock compensation 4 8 Loss on modification and extinguishment of debt 17 17 Other 0 1 Adjusted EBITDA (non-GAAP) 60 118 Non-cash convert to sale write off expense 8 19 Patient service equipment capital expenditures (44) (85) Interest paid (50) (79) Free cash flow (non-GAAP) (25)$ (27)$
p. 7 $682 $613 Q2 2025 Actual Large Commercial Payor Volume Growth Collection Rate Q2 2026 Actual $ millions
p. 8 $97 $60 Q2 2025 Actual Large Commercial Payor Net of Cost Reductions Volume / Mix Manufacturer Cost Increases & Inflation Collection Rate Q2 2026 Actual (1) $ millions (1) Adjusted EBITDA is a non - GAAP financial measure a reconciliation to the most comparable GAAP equivalent financial measure is des cribed in the Company’s Current Report on Form 8 - K filed with the SEC on August 10, 2026.
p. 9 Balance Sheet Optimization Overview Balance Sheet Cash and $115M of Discount Capture Drove Significant Funded Debt Reduction $ millions 3/31/2026 6/30/2026 $450M Revolving Credit Facility 255 Term Loan A 326 Term Loan B 511 511 Unsecured Notes Due 2029 479 0 Unsecured Notes Due 2030 552 4 New $300M Revolving Credit Facility - Secured Notes Due 2032 539 Secured Notes Due 2033 698 Total Funded Debt 2,123$ 1,753$
p. 10 $300 $511 $0 $4 $539 $698 0 250 500 750 1000 2026 2027 2028 2029 2030 2031 2032 2033 New $300M Revolving Credit Facility Term Loan B Unsecured Notes Due 2029 Unsecured Notes Due 2030 Secured Notes Due 2032 Secured Notes Due 2033 Balance Sheet Optimization Overview $450 $326 $511 $479 $552 $- $250 $500 $750 $1,000 2026 2027 2028 2029 2030 2031 2032 2033 $450M Revolving Credit Facility Term Loan A Term Loan B Unsecured Notes Due 2029 Unsecured Notes Due 2030 Pre - Balance Sheet Optimization Transaction Maturity Profile Post Balance Sheet Optimization Transaction Maturity Profile $ millions $ millions Weighted Average Life: ~2.7 years Weighted Average Life: ~5.5 years (1) (1) (1) Illustrates total facility capacity.
p. 11 Full Year 2026 Outlook Modeling Assumptions (1) $2.45 - $2.55 billion Revenue $300 - $320 million Adjusted EBITDA (2) $142 - $146 million Interest Expense (3) ~78 million Diluted Weighted Average Shares Outstanding (4) Breakeven to slightly positive Free Cash Flow 1. Company outlook and modeling assumptions are assumptions used for 2026 adjusted EBITDA guidance, and the Company undertakes n o o bligation to update such assumptions subsequent to the date of this presentation (August 10, 2026). Please see Form 8 - K filed by Accendra Health, Inc. with the SEC on or around August 10 , 2026, for additional financial information. 2. Although the Company does provide guidance for adjusted EBITDA and free cash flow (which are non - GAAP financial measures), it is not able to forecast the most directly comparable measures calculated and presented in accordance with GAAP without unreasonable effort. Certain elements of the composition of the GAAP amounts are not predictable, making it impr act icable for the Company to forecast. Such elements include, but are not limited to, restructuring and acquisition charges, which could have a significant and unpredictable impact on our GAAP results. As a result, no GAAP guidan ce or reconciliation of the Company’s adjusted EBITDA guidance or free cash flow guidance is provided. The outlook is based on certain assumptions that are subject to the risk factors discussed in the Company’s filings with the Secu rit ies and Exchange Commission (“SEC”). See slide 6 for a reconciliation of historical adjusted EBITDA and free cash flow to the most directly comparable GAAP measure. 3. Interest Expense outlook is presented in accordance with GAAP, which includes amortization of deferred financing fees and the am ortization of the deferred gain on modification of debt. Cash interest expense is expected to be $158 million - $162 million for the Full Year 2026. 4. Does not include the potential impact of future equity issuances. Updates to 2026 Outlooks & Modeling Assumptions
p. 12 The items above are notable one - time cash (outflows)/inflows which are included in our Statement of Cash Flows in our second quarter 2026 Form 10 - Q but which are excluded from Free Cash Flow shown on slide 6 due to their one - time nature. $ millions Cash Flow Supplemental Information Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Payments for settled portion of historical P&HS-driven IRS matter - (19) Payments for legal, advisory, and other fees and expenses related to the closing of the divestiture of P&HS (4) (26) Cash proceeds from sale of patient service equipment and other assets stemming from the exit of a large commercial payor 3 85 Purchaser separation costs paid in connection with the divestiture of P&HS (15) (15) Financing costs related to the Balance Sheet Optimization Transaction (17) (17)
p. 13 GAAP to Non - GAAP Reconciliations (in millions) Loss from continuing operations, net of tax, as reported (GAAP) $ (89) $ (84) Income tax provision (benefit) 1 (1) Interest expense, net 35 26 Acquisition-related charges and intangible amortization (1) 29 14 Transaction breakage fee (2) — 80 Exit and realignment charges, net (3) 26 3 Transaction financing fees, net (4) — 18 Other depreciation and amortization (5) 36 35 Stock compensation (6) 4 5 Loss on modification and extinguishment of debt (7) 17 — Adjusted EBITDA (non-GAAP) 60 97 Non-cash convert to sale write off expense (9) 8 14 Patient service equipment capital expenditures (44) (57) Interest paid (50) (38) Free cash flow (non-GAAP) $ (25) $ 15 Three Months Ended June 30, 2026 2025
p. 14 GAAP to Non - GAAP Reconciliations (in millions) Loss from continuing operations, net of tax, as reported (GAAP) $ (96) $ (88) Income tax benefit (8) (3) Interest expense, net 67 50 Acquisition-related charges and intangible amortization (1) 58 37 Transaction breakage fee (2) — 80 Exit and realignment charges, net (3) 2 16 Transaction financing fees, net (4) — 18 Other depreciation and amortization (5) 69 71 Stock compensation (6) 8 9 Loss on modification and extinguishment of debt (7) 17 — Other (8) 1 1 Adjusted EBITDA (non-GAAP) 118 193 Non-cash convert to sale write off expense (9) 19 26 Patient service equipment capital expenditures (85) (102) Interest paid (79) (66) Free cash flow (non-GAAP) $ (27) $ 51 Six Months Ended June 30, 2026 2025
p. 15 GAAP to Non - GAAP Reconciliations, continued The following items have been excluded from our non - GAAP financial measures: (1) Acquisition - related charges and intangible amortization for the three and six months ended June 30, 2025 includes $6.4 milli on and $22 million of acquisition - related charges related to the terminated acquisition of Rotech, which consisted primarily of legal and professional fees. Acquisitio n - r elated charges and intangible amortization also includes amortization of intangible assets established during acquisition method of accounting for business co mbinations. Acquisition - related charges consist primarily of one - time costs related to acquisitions, including transaction costs necessary to consummate acquisi tions, which consist of investment banking advisory fees and legal fees, director and officer tail insurance expense, as well as transition costs, such as sever anc e and retention bonuses, information technology (IT) integration costs and professional fees. These amounts are highly dependent on the size and frequency of acqu isi tions and are being excluded to allow for a more consistent comparison with forecasted, current and historical results. (2) Transaction breakage fee represents a cash payment to Rotech of $80 million during the three and six months ended June 30 , 2 025 for the termination of the Rotech acquisition. (3) During the three and six months ended June 30, 2026 exit and realignment charges, net were $26 million and $2.2 million a nd primarily included a $0.6 million loss and $(51) million gain on sales of patient service equipment in connection with the contract termination with a commercial Pa yor , P&HS Sale related costs, including reimbursable separation costs of $22 million and $48 million, $2.1 million and $2.5 million in professional fees and charges rel ated to IT and other strategic initiatives of $1.0 million and $3.0 million. Exit and realignment charges, net were $2.5 million and $16 million for the three and six mont hs ended June 30, 2025 and primarily included professional fees associated with strategic initiatives of $1.9 million and $8.1 million. During the six months ende d J une 30, 2025 exit and realignment charges, net also included $6.8 million related to wind - down costs of Fusion 5. These costs are not normal recurring, cash operating expe nses necessary for the Company to operate its business on an ongoing basis. (4) Transaction financing fees, net for the three and six months ended June 30, 2025 includes $12 million in net interest pai d a nd $6.7 million in recognition of previously deferred debt issuance costs, all in connection with the previously expected Rotech acquisition. (5) Other depreciation and amortization relates to patient service equipment and other fixed assets, excluding such amounts c apt ured within exit and realignment charges, net or acquisition - related charges and intangible amortization. (6) Stock compensation includes share - based compensation expense related to our share - based compensation plans, excluding such a mounts captured within exit and realignment charges, net or acquisition - related charges and intangible amortization. (7) Loss on modification and extinguishment of debt of $17 million includes $16 million of debt modification third party fees an d $0.8 million in recognition of previously deferred debt issuance costs from the completion of the Balance Sheet Optimization Transaction. (8) For the six months ended June 30, 2026 and 2025, other includes interest costs and net actuarial losses related to our fr oze n noncontributory, unfunded retirement plan for certain retirees in the U.S. (9) Non - cash convert to sale write off expense includes non - cash charges primarily for equipment converted from rental to sales, excluding such amounts captured within exit and realignment charges, net. This reflects the non - cash write - off of the remaining book value of patient service eq uipment at the time of sale. The purchase of patient service equipment is captured within capital expenditures and is subsequently charged to our statements of operati ons through normal depreciation and this non - cash convert to sale write off expense. This line item does not include non - cash write off expense associated with sales of patient service equipment in connection with the contract termination with a commercial Payor, as such amounts are captured within exit and realignment charges, net.