Accendra Health Q3 revenue falls to $602M
The company expects 2026 revenue at the bottom end of its prior range, with adjusted EBITDA potentially up to 30% below its prior midpoint.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Accendra Health (ACH) reported third-quarter 2026 net revenue of $601.8 million, versus $697.3 million a year earlier, and a GAAP loss from continuing operations of $18.0 million, versus $5.6 million. Adjusted EBITDA was $47.8 million, compared with $92.2 million, and free cash flow was $5.8 million, versus $29.2 million. For the first nine months, revenue was $1.843 billion versus $2.053 billion, adjusted EBITDA was $166.2 million versus $284.8 million, and continuing-operations loss was $113.5 million versus $93.2 million.
For full-year 2026, Accendra expects net revenue at the bottom end of its prior $2.45 billion to $2.55 billion outlook range; adjusted EBITDA could be as much as 30% below the prior range’s $310 million midpoint. Cash and equivalents were $26.6 million as of September 30, 2026, versus $282.0 million as of December 31, 2025. CEO Kenny Gardner-Smith said 2026 results had fallen well short of expectations and that the value creation plan would be fully underway over the next several months.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointNine-month operating cash use fell to $93.5 million from $170.0 million.
Negative
- Major pointContinuing-operations loss was $18.0 million, versus $5.6 million.
- Major point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA could be as much as 30% below the prior $310 million midpoint.
- Moderate pointThird-quarter revenue was $601.8 million, versus $697.3 million a year earlier.
- Moderate pointThird-quarter adjusted EBITDA was $47.8 million, versus $92.2 million.
Filing Explained
At September 30, total debt was $1,754,966 thousand and non-GAAP net debt was $1,728,358 thousand, alongside $26,608 thousand in cash.
This Form 8-K reports Accendra Health’s third-quarter results through
At September 30, total debt was
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Free cash flow financial
Net debt financial
anti-dilutive financial
Earnings Snapshot
For full-year 2026, net revenue is expected at the bottom end of the prior $2.45 billion to $2.55 billion range; adjusted EBITDA could be as much as 30% below the prior range’s $310 million midpoint.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were ACH’s third-quarter 2026 revenue, continuing-operations loss, and adjusted EBITDA?
How did Accendra Health update its 2026 outlook?
How much cash and debt did ACH report at September 30, 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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):
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of | (Commission | (I.R.S. Employer | |
incorporation or organization) | File Number) | Identification No.) | |
(Address of principal executive | |||
offices) | (Zip Code) | ||
Registrant’s telephone number, including area code
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | | Trading Symbol(s) | | 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):
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
Item 2.02Results of Operations and Financial Condition.
On November 5, 2026, Accendra Health, Inc. (the “Company”) issued a press release regarding its financial results for the third quarter and nine months ended September 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 7.01Regulation FD Disclosure.
On November 5, 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 Exhibits 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 9.01Financial Statements and Exhibits.
(d)Exhibits.
SIGNATURE
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 thereunto duly authorized.
ACCENDRA HEALTH, INC. | ||||
Date: November 5, 2026 | By: | /s/ Heath H. Galloway | ||
Name: |
| Heath H. Galloway | ||
Title: | Executive Vice President, General Counsel and Corporate Secretary | |||
Exhibit 99.1
Accendra Health Reports Third Quarter 2026 Financial Results
RICHMOND, VA – November 5, 2026 – Accendra Health, Inc. (NYSE: ACH) (the Company) today reported financial results for the third quarter ended September 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.
“Over the several weeks since I started, a number of themes have become clear to me. We have strong brands, favorable end markets, and a teammate population dedicated to our mission, Bringing Care To Life. It is equally clear to me that our results to date in 2026 have fallen well short of our expectations and potential. We have identified four key areas which are critical to our continued transformation and returning the business to the kind of profitability that our shareholders should expect” said Kenny Gardner-Smith, President & Chief Executive Officer, Accendra Health.
“We are already taking action on our turnaround, and, over the next several months, we will have our value creation plan fully underway. The value creation plan is the cornerstone of returning the business to its potential, and we look forward to sharing details with all stakeholders in the coming months,” Gardner-Smith concluded.
Third Quarter Results(1) | | | | | | | | YTD | | YTD | | ||
($ in millions, except per share data) | | 3Q26 | | 3Q25 | | 2026 | | 2025 | | ||||
| | | | | | | | | | | | | |
Net Revenue | | $ | 601.8 | | $ | 697.3 | | $ | 1,842.8 | | $ | 2,053.1 | |
| | | | | | | | | | | | | |
Loss from continuing operations, net of tax, GAAP | | $ | (18.0) | | $ | (5.6) | | $ | (113.5) | | $ | (93.2) | |
Adj. (loss) income from continuing operations, net of tax, Non-GAAP | | $ | (18.0) | | $ | 19.9 | | $ | (35.4) | | $ | 63.6 | |
| | | | | | | | | | | | | |
Adj. EBITDA, Non-GAAP | | $ | 47.8 | | $ | 92.2 | | $ | 166.2 | | $ | 284.8 | |
Free cash flow, Non-GAAP | | $ | 5.8 | | $ | 29.2 | | $ | (21.3) | | $ | 80.0 | |
| | | | | | | | | | | | | |
Loss from continuing operations, net of tax, per common share, GAAP | | $ | (0.23) | | $ | (0.07) | | $ | (1.48) | | $ | (1.21) | |
Adj. (loss) income from continuing operations, net of tax, per common share, Non-GAAP | | $ | (0.23) | | $ | 0.25 | | $ | (0.46) | | $ | 0.80 | |
| (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 expects that full year net revenue will be at the bottom end of the prior outlook range of $2.45 billion to $2.55 billion and that adjusted EBITDA could be as much as 30% lower than the $310 million midpoint of the prior outlook range.
Although the Company provides guidance for adjusted EBITDA (which is a non-GAAP financial measure), 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 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 Third Quarter 2026 Financial Results
Accendra Health will host a conference call for investors and analysts on Thursday, November 5, 2026, at 5:00PM E.T. Participants may access the call via the toll-free dial-in number at 1-833-461-5787, or the toll dial-in number at 1-585-542-9983. The conference ID access code is 829 856 607. 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, our ability to timely and effectively execute our value creation plan, including cost saving initiatives, future indebtedness and growth, industry trends, our ability to cure noncompliance with the New York Stock Exchange listing standards, 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 September 30, | ||||
| | 2026 | | 2025 | ||
Net revenue | | $ | 601,775 | | $ | 697,264 |
Operating costs and expenses: | | | | | | |
Cost of net revenue | | | 340,469 | | | 375,067 |
Selling, general and administrative expenses | | | 249,463 | | | 265,838 |
Acquisition-related charges and intangible amortization | | | 4,975 | | | 29,229 |
Exit and realignment charges, net | | | 5,534 | | | 660 |
Total operating costs and expenses | | | 600,441 | | | 670,794 |
Operating income | |
| 1,334 | |
| 26,470 |
Interest expense, net | | | 37,621 | | | 29,029 |
Other expense, net | | | 532 | | | 1,076 |
Loss from continuing operations before income taxes | |
| (36,819) | |
| (3,635) |
Income tax (benefit) provision | |
| (18,858) | |
| 1,972 |
Loss from continuing operations, net of tax | | | (17,961) | | | (5,607) |
Loss from discontinued operations, net of tax | | | (1,738) | | | (144,669) |
Net loss | | $ | (19,699) | | $ | (150,276) |
| | | | | | |
Basic loss per common share | | | | | | |
Loss from continuing operations, net of tax | | $ | (0.23) | | $ | (0.07) |
Loss from discontinued operations, net of tax | | | (0.02) | | | (1.87) |
Net loss | | $ | (0.25) | | $ | (1.94) |
| | | | | | |
Diluted loss per common share | |
| | |
| |
Loss from continuing operations, net of tax | | $ | (0.23) | | $ | (0.07) |
Loss from discontinued operations, net of tax | | | (0.02) | | | (1.87) |
Net loss | | $ | (0.25) | | $ | (1.94) |
3
Accendra Health, Inc.
Condensed Consolidated Statements of Operations (unaudited)
(dollars in thousands, except per share data)
| | Nine Months Ended September 30, | ||||
| | 2026 | | 2025 | ||
Net revenue | | $ | 1,842,789 | | $ | 2,053,065 |
Operating costs and expenses: | | | | | | |
Cost of net revenue | | | 1,040,049 | | | 1,087,024 |
Selling, general and administrative expenses | | | 748,248 | | | 796,061 |
Transaction breakage fee | | | — | | | 80,000 |
Acquisition-related charges and intangible amortization | | | 63,433 | | | 66,603 |
Exit and realignment charges, net | | | 7,750 | | | 16,826 |
Total operating costs and expenses | | | 1,859,480 | | | 2,046,514 |
Operating (loss) income | |
| (16,691) | |
| 6,551 |
Interest expense, net | | | 104,509 | | | 79,252 |
Loss on modification and extinguishment of debt | | | 17,296 | | | — |
Transaction financing fees, net | | | — | | | 18,288 |
Other expense, net | | | 2,197 | | | 2,993 |
Loss from continuing operations before income taxes | |
| (140,693) | |
| (93,982) |
Income tax benefit | |
| (27,194) | |
| (743) |
Loss from continuing operations, net of tax | | | (113,499) | | | (93,239) |
Loss from discontinued operations, net of tax | | | (1,738) | | | (951,077) |
Net loss | | $ | (115,237) | | $ | (1,044,316) |
| | | | | | |
Basic loss per common share | | | | | | |
Loss from continuing operations, net of tax | | $ | (1.48) | | $ | (1.21) |
Loss from discontinued operations, net of tax | | | (0.02) | | | (12.34) |
Net loss | | $ | (1.50) | | $ | (13.55) |
| | | | | | |
Diluted loss per common share | |
| | |
| |
Loss from continuing operations, net of tax | | $ | (1.48) | | $ | (1.21) |
Loss from discontinued operations, net of tax | | | (0.02) | | | (12.34) |
Net loss | | $ | (1.50) | | $ | (13.55) |
4
Accendra Health, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(dollars in thousands)
| | | | | | |
| | September 30, 2026 | | December 31, 2025 | ||
Assets | | | | | | |
Current assets | | | | | | |
Cash and cash equivalents | | $ | 26,608 | | $ | 281,989 |
Accounts receivable, net | |
| 107,323 | |
| 95,907 |
Inventories, net | |
| 82,103 | |
| 74,435 |
Other current assets | |
| 57,886 | |
| 95,540 |
Total current assets | |
| 273,920 | |
| 547,871 |
Patient service equipment and other fixed assets, net of accumulated depreciation and amortization of $209,844 and $207,595 | |
| 218,237 | |
| 256,161 |
Operating lease assets | |
| 92,376 | |
| 109,099 |
Goodwill | |
| 1,228,140 | |
| 1,228,140 |
Intangible assets, net | |
| 73,032 | |
| 136,465 |
Other assets, net | |
| 193,209 | |
| 174,025 |
Total assets | | $ | 2,078,914 | | $ | 2,451,761 |
Liabilities and deficit | |
| | |
| |
Current liabilities | |
| | |
| |
Accounts payable | | $ | 381,885 | | $ | 363,565 |
Accrued payroll and related liabilities | |
| 32,706 | |
| 69,426 |
Current portion of long-term debt | | | 35,000 | | | 250,000 |
Other current liabilities | |
| 221,905 | |
| 264,084 |
Total current liabilities | |
| 671,496 | |
| 947,075 |
Long-term debt, excluding current portion | |
| 1,719,966 | |
| 1,799,876 |
Operating lease liabilities, excluding current portion of $35,991 and $43,272 | |
| 60,531 | |
| 70,317 |
Other liabilities | |
| 195,151 | |
| 95,471 |
Total liabilities | |
| 2,647,144 | |
| 2,912,739 |
Total deficit | |
| (568,230) | |
| (460,978) |
Total liabilities and deficit | | $ | 2,078,914 | | $ | 2,451,761 |
5
Accendra Health, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(dollars in thousands)
| | Three Months Ended September 30, | ||||
| | 2026 | | 2025 | ||
Operating activities: |
| | |
| | |
Net loss | | $ | (19,699) | | $ | (150,276) |
Loss from discontinued operations, net of tax | | | 1,738 | | | 144,669 |
Adjustments to reconcile net loss to cash used for operating activities: | |
| | |
| |
Depreciation and amortization | |
| 38,919 | |
| 64,100 |
Share-based compensation expense | |
| 2,113 | |
| (168) |
Deferred income tax benefit | |
| (5,300) | |
| (25,831) |
Changes in operating lease right-of-use assets and lease liabilities | |
| (479) | |
| 3,791 |
Gain from sale of non-core asset | | | (32,544) | | | — |
Gain from sale and dispositions of patient service equipment | |
| (5,888) | |
| (7,063) |
Changes in operating assets and liabilities: | |
| | | | |
Accounts receivable, net | |
| 12,759 | |
| (6,352) |
Inventories | |
| (11,084) | |
| 5,380 |
Accounts payable | |
| 22,001 | |
| (15,545) |
Accrued interest expense | | | 29,434 | | | 4,663 |
Accrued payroll and related liabilities | | | (9,126) | | | (7,277) |
Net change in other assets and liabilities | | | (36,513) | | | 36,650 |
Other, net | | | (3,743) | | | 1,101 |
Cash used for operating activities from discontinued operations | | | — | | | (220,362) |
Cash used for operating activities | |
| (17,412) | |
| (172,520) |
Investing activities: | |
| | |
| |
Additions to patient service equipment ($38,509 and $42,046) and other fixed assets | |
| (39,163) | | | (42,126) |
Proceeds from sale of patient service equipment | |
| 13,324 | |
| 18,365 |
Additions to computer software | |
| (916) | |
| (3,431) |
Proceeds from sale of non-core asset | | | 32,521 | | | — |
Cash used for investing activities from discontinued operations | | | — | | | (12,272) |
Cash provided by (used for) investing activities | |
| 5,766 | |
| (39,464) |
Financing activities: | |
| | |
| |
Borrowings under Revolving Credit Agreement | | | 149,000 | | | 812,300 |
Repayments under Revolving Credit Agreement | | | (114,000) | | | (676,600) |
Financing costs paid | | | (4,391) | | | — |
Other, net | |
| (7) | |
| (3,197) |
Cash provided by financing activities from discontinued operations | | | — | | | 48,594 |
Cash provided by financing activities | |
| 30,602 | |
| 181,097 |
Effect of exchange rate changes on cash and cash equivalents | |
| 1 | |
| (34) |
Net increase (decrease) in cash and cash equivalents | |
| 18,957 | |
| (30,921) |
Cash and cash equivalents at beginning of period (¹) | |
| 7,651 | |
| 77,087 |
Cash and cash equivalents at end of period (¹) | | $ | 26,608 | | $ | 46,166 |
Supplemental disclosure of cash flow information: | |
| | |
| |
Income taxes paid, net | | $ | 2,001 | | $ | 3,326 |
Interest paid | | $ | 10,861 | | $ | 30,293 |
Noncash investing activity: | |
| | |
| |
Unpaid purchases of patient service equipment and other fixed assets at end of period | | $ | 61,862 | | $ | 71,823 |
| (1) | This amount includes cash from discontinued operations of $13 million and $39 million as of September 30, 2025 and June 30, 2025. |
6
Accendra Health, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(dollars in thousands)
| | Nine Months Ended September 30, | ||||
| | 2026 | | 2025 | ||
Operating activities: | | | | | | |
Net loss | | $ | (115,237) | | $ | (1,044,316) |
Loss from discontinued operations, net of tax | | | 1,738 | | | 951,077 |
Adjustments to reconcile net loss to cash used for operating activities: | |
| | |
| |
Depreciation and amortization | |
| 166,361 | |
| 149,988 |
Share-based compensation expense | |
| 9,207 | |
| 9,125 |
Deferred income tax benefit | |
| (50,789) | |
| (17,042) |
Changes in operating lease right-of-use assets and lease liabilities | |
| (344) | |
| 4,535 |
Gain from sale of non-core asset | | | (32,544) | | | — |
Gain from sale and dispositions of patient service equipment | |
| (64,667) | |
| (16,385) |
Changes in operating assets and liabilities: | |
| | |
| |
Accounts receivable, net | |
| (11,416) | |
| 15,539 |
Inventories | |
| (9,994) | |
| 3,734 |
Accounts payable | |
| 28,773 | |
| (20,284) |
Accrued interest expense | | | 19,204 | |
| 4,697 |
Accrued payroll and related liabilities | | | (11,143) | |
| (28,447) |
Net change in other assets and liabilities | |
| (25,669) | |
| 1,345 |
Other, net | |
| 3,025 | |
| 6,159 |
Cash used for operating activities from discontinued operations | | | — | | | (189,701) |
Cash used for operating activities | |
| (93,495) | |
| (169,976) |
Investing activities: | |
| | |
| |
Additions to patient service equipment ($123,648 and $143,790) and other fixed assets | |
| (128,395) | |
| (145,542) |
Proceeds from sale of patient service equipment | |
| 125,042 | |
| 53,369 |
Additions to computer software | | | (2,822) | | | (7,308) |
Proceeds from sale of non-core asset | | | 32,521 | | | — |
Other, net | |
| 2,100 | |
| (1,910) |
Cash used for investing activities from discontinued operations | | | — | | | (39,190) |
Cash provided by (used for) investing activities | |
| 28,446 | |
| (140,581) |
Financing activities: | |
| | |
| |
Borrowings under Revolving Credit Agreement | | | 697,600 | | | 2,442,484 |
Repayments under Revolving Credit Agreement | | | (866,100) | | | (2,171,784) |
Proceeds from debt issuance | | | 1,237,315 | | | — |
Repayments of debt | |
| (1,237,315) | |
| — |
Financing costs paid | | | (21,182) | | | — |
Repurchase of common stock | |
| — | |
| (6,656) |
Other, net | |
| (610) | |
| (3,375) |
Cash provided by financing activities from discontinued operations | | | — | | | 44,905 |
Cash (used for) provided by financing activities | |
| (190,292) | |
| 305,574 |
Effect of exchange rate changes on cash and cash equivalents | |
| (40) | |
| 1,767 |
Net decrease in cash and cash equivalents | |
| (255,381) | |
| (3,216) |
Cash and cash equivalents at beginning of period (¹) | |
| 281,989 | |
| 49,382 |
Cash and cash equivalents at end of period (¹) | | $ | 26,608 | | $ | 46,166 |
Supplemental disclosure of cash flow information: | |
| | |
| |
Income taxes paid, net | | $ | 21,605 | | $ | 8,784 |
Interest paid | | $ | 90,185 | | $ | 96,138 |
Noncash investing activity: | |
| | |
| |
Unpaid purchases of patient service equipment and other fixed assets at end of period | | $ | 61,862 | | $ | 71,823 |
| (1) | This amount includes cash from discontinued operations of $13 million and $22 million as of September 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 September 30, | ||||
| | 2026 | | 2025 | ||
Loss from continuing operations, net of tax | | $ | (17,961) | | $ | (5,607) |
Loss from discontinued operations, net of tax | | | (1,738) | | | (144,669) |
Net loss | | $ | (19,699) | | $ | (150,276) |
| |
| | |
| |
Weighted average shares outstanding - basic | | | 76,909 | | | 77,288 |
Dilutive shares | | | — | | | — |
Weighted average shares outstanding - diluted | | | 76,909 | | | 77,288 |
| | | | | | |
Basic loss per common share | | | | | | |
Loss from continuing operations, net of tax | | $ | (0.23) | | $ | (0.07) |
Loss from discontinued operations, net of tax | | | (0.02) | | | (1.87) |
Net loss | | $ | (0.25) | | $ | (1.94) |
| | | | | | |
Diluted loss per common share: | | | | | | |
Loss from continuing operations, net of tax | | $ | (0.23) | | $ | (0.07) |
Loss from discontinued operations, net of tax | | | (0.02) | | | (1.87) |
Net loss | | $ | (0.25) | | $ | (1.94) |
Share-based awards of approximately 1.0 million for the three months ended September 30, 2026 and 2.3 million for the three months ended September 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)
| | Nine Months Ended September 30, | ||||
| | 2026 | | 2025 | ||
Loss from continuing operations, net of tax | | $ | (113,499) | | $ | (93,239) |
Loss from discontinued operations, net of tax | | | (1,738) | | | (951,077) |
Net loss | | $ | (115,237) | | $ | (1,044,316) |
| |
| | |
| |
Weighted average shares outstanding - basic | | | 76,745 | | | 77,069 |
Dilutive shares | | | — | | | — |
Weighted average shares outstanding - diluted | | | 76,745 | | | 77,069 |
| | | | | | |
Basic loss per common share | | | | | | |
Loss from continuing operations, net of tax | | $ | (1.48) | | $ | (1.21) |
Loss from discontinued operations, net of tax | | | (0.02) | | | (12.34) |
Net loss | | $ | (1.50) | | $ | (13.55) |
| | | | | | |
Diluted loss per common share: | | | | | | |
Loss from continuing operations, net of tax | | $ | (1.48) | | $ | (1.21) |
Loss from discontinued operations, net of tax | | | (0.02) | | | (12.34) |
Net loss | | $ | (1.50) | | $ | (13.55) |
Share-based awards of approximately 1.1 million for the nine months ended September 30, 2026 and 2.2 million for the nine months ended September 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 September 30, | | Nine Months Ended September 30, |
| ||||||||
| | 2026 | | 2025 | | 2026 | | 2025 |
| ||||
Loss from continuing operations, net of tax, as reported (GAAP) | | $ | (17,961) | | $ | (5,607) | | $ | (113,499) | | $ | (93,239) | |
Pre-tax adjustments: | |
| | |
| | |
| | |
| | |
Acquisition-related charges and intangible amortization (1) | |
| 4,975 | |
| 29,229 | |
| 63,433 | | | 66,603 | |
Transaction breakage fee (2) | | | — | | | — | | | — | | | 80,000 | |
Exit and realignment charges, net (3) | |
| 5,534 | |
| 660 | |
| 7,750 | | | 16,826 | |
Transaction financing fees, net (4) | | | — | | | — | | | — | | | 18,288 | |
Litigation and related charges (5) | | | — | | | 1,765 | | | 64 | | | 2,156 | |
Loss on modification and extinguishment of debt (8) | | | — | | | — | | | 17,296 | | | — | |
Other (9) | |
| 408 | |
| 424 | |
| 1,225 | | | 1,272 | |
Income tax benefit on pre-tax adjustments (11) | |
| (10,948) | |
| (6,608) | |
| (11,677) | | | (28,326) | |
(Loss) income from continuing operations, net of tax, adjusted (non-GAAP) (Adjusted Net (Loss) Income) | | $ | (17,992) | | $ | 19,863 | | $ | (35,408) | | $ | 63,580 | |
| | | | | | | | | | | | | |
Loss from continuing operations, net of tax per common share, as reported (GAAP) | | $ | (0.23) | | $ | (0.07) | | $ | (1.48) | | $ | (1.21) | |
After-tax adjustments: | |
| | |
| | |
| | |
| | |
Acquisition-related charges and intangible amortization (1) | |
| — | |
| 0.29 | |
| 0.72 | |
| 0.61 | |
Transaction breakage fee (2) | | | — | | | — | | | — | | | 1.04 | |
Exit and realignment charges, net (3) | |
| — | |
| 0.01 | |
| 0.09 | |
| 0.16 | |
Transaction financing fees, net (4) | | | — | | | — | | | — | | | 0.17 | |
Litigation and related charges (5) | | | — | | | 0.02 | | | — | | | 0.02 | |
Loss on modification and extinguishment of debt (8) | | | — | | | — | | | 0.20 | | | — | |
Other (9) | | | — | | | — | | | 0.01 | | | 0.01 | |
(Loss) income from continuing operations, net of tax, per common share, adjusted (non-GAAP) (Adjusted EPS) | | $ | (0.23) | | $ | 0.25 | | $ | (0.46) | | $ | 0.80 | |
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 September 30, | ||||
(Dollars in thousands) | | 2026 | | 2025 | ||
Loss from continuing operations, net of tax, as reported (GAAP) | | $ | (17,961) | | $ | (5,607) |
Income tax (benefit) provision | |
| (18,858) | |
| 1,972 |
Interest expense, net | |
| 37,621 | |
| 29,029 |
Acquisition-related charges and intangible amortization (1) | | | 4,975 | | | 29,229 |
Exit and realignment charges, net (3) | | | 5,534 | | | 660 |
Litigation and related charges (5) | | | — | | | 1,765 |
Other depreciation and amortization (6) | | | 33,943 | | | 34,870 |
Stock compensation (7) | | | 2,113 | | | (168) |
Other (9) | |
| 408 | |
| 424 |
Adjusted EBITDA (non-GAAP) | | | 47,775 | | | 92,174 |
Non-cash convert to sale write off expense (10) | |
| 7,436 | |
| 9,387 |
Patient service equipment capital expenditures | |
| (38,509) | |
| (42,046) |
Interest paid | | | (10,861) | | | (30,293) |
Free cash flow (non-GAAP) | | $ | 5,841 | | $ | 29,222 |
| | Nine Months Ended September 30, | ||||
(Dollars in thousands) | | 2026 | | 2025 | ||
Loss from continuing operations, net of tax, as reported (GAAP) | | $ | (113,499) | | $ | (93,239) |
Income tax benefit | |
| (27,194) | |
| (743) |
Interest expense, net | |
| 104,509 | |
| 79,252 |
Acquisition-related charges and intangible amortization (1) | | | 63,433 | | | 66,603 |
Transaction breakage fee (2) | | | — | | | 80,000 |
Exit and realignment charges, net (3) | | | 7,750 | | | 16,826 |
Transaction financing fees, net (4) | | | — | | | 18,288 |
Litigation and related charges (5) | | | 64 | | | 2,156 |
Other depreciation and amortization (6) | | | 102,927 | | | 105,628 |
Stock compensation (7) | | | 9,721 | | | 8,784 |
Loss on modification and extinguishment of debt (8) | | | 17,296 | | | — |
Other (9) | |
| 1,225 | |
| 1,272 |
Adjusted EBITDA (non-GAAP) | | | 166,232 | | | 284,827 |
Non-cash convert to sale write off expense (10) | |
| 26,333 | |
| 35,070 |
Patient service equipment capital expenditures | |
| (123,648) | |
| (143,790) |
Interest paid | | | (90,185) | | | (96,138) |
Free cash flow (non-GAAP) | | $ | (21,268) | | $ | 79,969 |
| September 30, | | June 30, | | December 31, | |||
(in thousands) | 2026 | | 2026 | | 2025 | |||
Total debt, as reported (GAAP) | $ | 1,754,966 | | $ | 1,718,063 | | $ | 2,049,876 |
Cash and cash equivalents |
| (26,608) | |
| (7,651) | |
| (281,989) |
Net debt (non-GAAP) | $ | 1,728,358 | | $ | 1,710,412 | | $ | 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:
12
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 Accendra Health, Inc.’s (the Company) 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.
ACH-CORP
ACH-IR
Contacts
Investors
Will Parrish
Vice President, Strategy, Corporate Development, & Investor Relations
Investor.Relations@accendra.com
Media
Darla Turner
media@accendra.com
SOURCE: Accendra Health, Inc.
13
Exhibit 99.2
| Third Quarter 2026 Continuing Operations Supplemental Slides November 5, 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, our ability to timely and effectively execute our value creation plan, including cost saving initiatives, future indebtedness and growth, industry trends, our ability to cure noncompliance with the New York Stock Exchange listing standards, 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. 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 ~$2.5B Revenue ~2.9 million Active Patients ~2,500 Commercial Payor Contracts |
| p. 6 $697 $(88) $(6) $(5) $(6) $6 $(6) $10 $602 Net Revenue Supplemental Information $ millions |
| p. 7 Adjusted EBITDA Supplemental Information(1) $ millions (1) Adjusted EBITDA is a non-GAAP financial measure a reconciliation to the most comparable GAAP equivalent financial measure is described in the Company’s Current Report on Form 8-K filed with the SEC on November 5, 2026. $92 $(20) $(4) $(1) $(13) $(6) $48 Q3 2025 Actual Large Commercial Payor Net of Cost Reductions Volume Manufacturer Cost Increases Inflation & Other Collection Rate Q3 2026 Actual |
| p. 8 Q3 & 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 financial measure is described in the Company’s Current Report on Form 8-K filed with the SEC on November 5, 2026. Totals may not sum due to rounding Three Months Ended September 30, 2026 Nine Months Ended September 30, 2026 Loss from continuing operations, net of tax, as reported (GAAP) $ (18) $ (113) Income tax (benefit) (19) (27) Interest expense, net 38 105 Acquisition-related charges and intangible amortization 5 63 Exit and realignment charges, net 6 8 Litigation and related charges - 0 Other depreciation and amortization 34 103 Stock compensation 2 10 Loss on modification and extinguishment of debt - 17 Other 0 1 Adjusted EBITDA (non-GAAP) 48 166 Non-cash convert to sale write off expense 7 26 Patient service equipment capital expenditures (39) (124) Interest paid (11) (90) Free cash flow (non-GAAP) $ 6 $ (21) Includes ~$35M of payments for PSE capex related to former large commercial payor which will not recur |
| p. 9 Cash Flow Supplemental Information In millions Three Months Ended September 30, 2026 Nine Months Ended September 30, 2026 Loss from continuing operations, net of tax, as reported (GAAP) $ (18) $ (113) Income tax benefit (19) (27) Interest expense, net 38 105 Acquisition-related charges and intangible amortization (1) 5 63 Exit and realignment charges, net (2) 6 8 Litigation and related charges (3) - 0 Other depreciation and amortization (4) 34 103 Stock compensation (5) 2 10 Loss on modification and extinguishment of debt (6) - 17 Other (7) 0 1 Adjusted EBITDA (non-GAAP) 48 166 Interest paid (11) (90) Income taxes paid, net, including $19 million IRS tax settlement (8) (2) (22) Cash payments related to the sale of P&HS, including $15 million of Purchaser Separation Costs paid to date (9) (8) (47) Exit & realignment cash payments - other separation-related costs, professional fees, and other strategic initiatives (10) (7) (11) Third-party debt modification fees reflected within cash used in operating activities (11) (12) (16) Proceeds from ordinary course sale of patient service equipment (reclass to investing activities) (12) (13) (40) Non-cash convert to sale write-off expense (13) 7 26 Changes in operating assets and liabilities: Accounts receivable, net 13 (11) Inventories (11) (10) Accounts payable, excluding changes in accrued exit & realignment in accounts payable (17) (22) Accrued payroll and related liabilities (9) (11) Other net changes 5 (5) Cash used for operating activities $ (17) $ (93) Adjusted EBITDA is a non-GAAP financial measure and the reconciliation to the most comparable GAAP equivalent financial measure is described in the Company's Current Report on Form 8-K filed with the SEC on November 5, 2026. Totals may not sum due to rounding |
| p. 10 Cash Flow Supplemental Information, continued The following are presented as reconciling items on the Cash Flow supplemental information slide: 1) Acquisition-related charges and intangible amortization includes amortization of intangible assets established during acquisition method of accounting for business combinations for the three and nine months ended September 30, 2026. 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) Exit and realignment charges, net were $5.5 million and $7.8 million for the three and nine months ended September 30, 2026 and primarily included a $(33) million gain on the sale of a non-core asset, $34 million and $82 million of P&HS Sale related costs, inclusive of reimbursable separation costs of $30 million and $65 million, $1.4 million and $3.9 million of professional fees and $2.9 million and $5.9 million of charges related to IT, and other strategic initiatives. Exit and realignment charges, net for the nine months ended September 30, 2026 also included a $(51) million gain on sales of patient service equipment in connection with the contract termination with the commercial Payor described above. These costs are not normal recurring, cash operating expenses necessary for the Company to operate its business on an ongoing basis. 3) 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. 4) 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. 5) 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. 6) 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. 7) For the three and nine months ended September 30, 2026, other includes interest costs and net actuarial losses related to our frozen noncontributory, unfunded retirement plan for certain retirees in the U.S. 8) Income taxes paid, net includes a $19 million payment made in March 2026 to the IRS to settle the 2015 through 2018 audit years, inclusive of $5.8 million of accrued interest. 9) Cash payments related to the sale of P&HS includes: • P&HS sale third-party closing costs of $24 million paid during the nine months ended September 30, 2026 recorded within discontinued operations reflects payments for professional and closing costs of the P&HS Sale that were recorded within the ‘Loss on classification to held for sale’ line item of discontinued operations during the year ended December 31, 2025. • Cash payments of $8 million made during the three and nine months ended September 30, 2026 for P&HS sale professional fees that were recorded within the ‘Exit and realignment, net’ line item, as presented in Note 4 of our Form 10-Q for the quarterly period ending September 30, 2026. • Reimbursable separation costs cash payments of $15 million made during the nine months ended September 30, 2026 to the Purchaser of the P&HS business for sale separation costs as presented in Note 4 in the Notes to Condensed Consolidated Financial Statements of our Form 10-Q for the quarterly period ending September 30, 2026. 10) Exit & realignment cash payments - other separation-related costs, professional fees, and other strategic initiatives relate to other cash payments made as presented in Note 4 in the Notes to Condensed Consolidated Financial Statements of our Form 10-Q for the quarterly period ending September 30, 2026. 11) Third-party debt modification fees reflected within cash used in operating activities includes payment of third-party fees in connection with the Balance Sheet Optimization Transaction for debt treated as a modification and recorded within the ‘Loss on modification and extinguishment of debt’ line item. 12) Proceeds from sale of patient equipment, excluding $85M in proceeds from sales in connection with the Payor contract termination, is a reconciling item from loss from continuing operations, net of tax and Adjusted EBITDA to cash used for operating activities as these cash proceeds are captured within net revenue and Adjusted EBITDA, but are excluded from cash used for operating activities and instead presented within cash flows provided by (used for) investing activities. 13) 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 net book value of patient service equipment at the time of sale. The purchase of patient service equipment is captured within capital expenditures and subsequently normal depreciation is recorded within our statements of operations. At the time of the sale the remaining net book value is recorded as a 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. |
| p. 11 GAAP to Non-GAAP Reconciliations (in millions) Loss from continuing operations, net of tax, as reported (GAAP) $ (18) $ (6) Income tax (benefit) provision (19) 2 Interest expense, net 38 29 Acquisition-related charges and intangible amortization (1) 5 29 Exit and realignment charges, net (3) 6 1 Litigation and related charges (5) — 2 Other depreciation and amortization (6) 34 35 Stock compensation (7) 2 (0) Other (9) 0 0 Adjusted EBITDA (non-GAAP) 48 92 Non-cash convert to sale write off expense (10) 7 9 Patient service equipment capital expenditures (39) (42) Interest paid (11) (30) Free cash flow (non-GAAP) $ 6 $ 29 Three Months Ended September 30, 2026 2025 Totals may not sum due to rounding |
| p. 12 GAAP to Non-GAAP Reconciliations (in millions) Loss from continuing operations, net of tax, as reported (GAAP) $ (113) $ (93) Income tax benefit (27) (1) Interest expense, net 105 79 Acquisition-related charges and intangible amortization (1) 63 67 Transaction breakage fee (2) — 80 Exit and realignment charges, net (3) 8 17 Transaction financing fees, net (4) — 18 Litigation and related charges (5) 0 2 Other depreciation and amortization (6) 103 106 Stock compensation (7) 10 9 Loss on modification and extinguishment of debt (8) 17 — Other (9) 1 1 Adjusted EBITDA (non-GAAP) 166 285 Non-cash convert to sale write off expense (10) 26 35 Patient service equipment capital expenditures (124) (144) Interest paid (90) (96) Free cash flow (non-GAAP) $ (21) $ 80 Nine Months Ended September 30, 2026 2025 Totals may not sum due to rounding |
| p. 13 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 nine months ended September 30, 2025 includes $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 nine months ended September 30, 2025 for the termination of the Rotech acquisition. 3) Exit and realignment charges, net were $5.5 million and $7.8 million for the three and nine months ended September 30, 2026 and primarily included a $(33) million gain on the sale of a non-core asset, $34 million and $82 million of P&HS Sale related costs, inclusive of reimbursable separation costs of $30 million and $65 million, $1.4 million and $3.9 million of professional fees and $2.9 million and $5.9 million of charges related to IT, and other strategic initiatives. Exit and realignment charges, net for the nine months ended September 30, 2026 also included a $(51) million gain on sales of patient service equipment in connection with the contract termination with the commercial Payor described above. Exit and realignment charges, net were $0.7 million and $17 million for the three and nine months ended September 30, 2025. These charges included professional fees associated with strategic initiatives of $0.1 million and $8.2 million, and charges related to IT strategic initiatives of $0.4 million and $0.9 million for the three and nine months ended September 30, 2025. For the nine months ended September 30, 2025, exit and realignment charges, net also included $6.8 million related to wind-down costs of Fusion5. 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 nine months ended September 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 nine months ended September 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. |
