AdaptHealth cuts 2026 free cash flow outlook to $50M–$75M
myAPP had more than 615,000 registered users, up approximately 88% from year-end 2025, and its AI mask-fitting tool completed more than 12,600 scans.
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.
Form Type
8-K
Rhea-AI Filing Summary
AdaptHealth Corp. (AHCO) reported third-quarter 2026 net revenue of $745.6 million, up 10.9% from the prior-year quarter, with 12.8% organic revenue growth across each reportable segment. Adjusted EBITDA was $141.9 million, down 2.9%; a $184.8 million pre-tax goodwill impairment largely contributed to the reported net loss.
For fiscal 2026, the company revised continuing-operations revenue guidance, excluding Diabetes Health, to $2.88 billion–$2.90 billion from $2.85 billion–$2.89 billion, and Adjusted EBITDA guidance to $510 million–$525 million from $490 million–$520 million. Free cash flow guidance was lowered to $50 million–$75 million from $80 million–$120 million; it includes cash flows from continuing and discontinued operations. Year-to-date free cash flow was $2.6 million versus $140.1 million in the comparable 2025 period.
AdaptHealth cleared the Hart-Scott-Rodino waiting period for its pending Diabetes Health sale for $235.0 million in cash. The transaction is on track to close in early 2027, subject to certain regulatory approvals and customary closing conditions. Year-to-date operating cash flow was $395.6 million versus $418.6 million in the comparable 2025 period.
1 point · 0 major2 major · 2 points
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 pointThird-quarter net revenue rose 10.9% to $745.6 million.
Negative
- Major pointPre-tax goodwill impairment of $184.8 million largely drove the quarterly net loss. 23% of market cap
- Major point. Forward-looking: it has not happened yet and may not happen.2026 free-cash-flow guidance was reduced to $50–$75 million from $80–$120 million.
Filing Explained
At September 30, 2026, AdaptHealth reported cash of
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Third-quarter net revenue: $745.6 million
Organic revenue growth: 12.8%
Adjusted EBITDA: $141.9 million
+5 more
8 metrics
Third-quarter net revenue
$745.6 million
Quarter ended September 30, 2026; up 10.9% from the prior-year quarter
Organic revenue growth
12.8%
Third quarter 2026; growth across each reportable segment
Adjusted EBITDA
$141.9 million
Third quarter 2026; down 2.9% from the prior-year quarter
Pre-tax goodwill impairment
$184.8 million
Third quarter 2026
Cash flow from operations
$395.6 million
Nine months ended September 30, 2026; compared with $418.6 million in 2025
Free cash flow
$2.6 million
Nine months ended September 30, 2026; compared with $140.1 million in 2025
Diabetes Health sale consideration
$235.0 million in cash
Pending sale; on track to close in early 2027, subject to conditions
Fiscal 2026 free cash flow guidance
$50 million to $75 million
Includes cash flows from continuing and discontinued operations; revised from $80 million to $120 million
Key Terms
Adjusted EBITDA, organic revenue, free cash flow, capitated agreement, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $141.9 million compared to $146.1 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
organic revenue financial
"Organic revenue growth of 12.8%"
Organic revenue is the sales a company generates from its regular business activities after stripping out extra effects like revenue added or lost from buying or selling other businesses and from currency swings. Think of it as measuring how much a store’s own customers increased spending, not growth from opening new stores or temporary price moves; investors use it to judge the true strength and sustainability of a company’s core demand.
free cash flow financial
"free cash flow was $2.6 million year-to-date 2026"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
capitated agreement technical
"exclusive capitated agreement with a large national integrated delivery network"
A capitated agreement is a healthcare payment arrangement where a provider or health system receives a fixed amount per patient (often per month) to cover a defined set of services, regardless of how many services the patient uses. Like a subscription fee, it shifts financial risk toward the provider while giving predictable revenue streams, so investors watch these deals for their effects on margins, cash flow stability, and incentives to manage care costs.
Hart-Scott-Rodino waiting period regulatory
"Cleared the Hart-Scott-Rodino waiting period"
A period after parties file a pre‑merger notification under the Hart‑Scott‑Rodino Antitrust Improvements Act during which they must wait before closing a covered merger, acquisition, or other change of control. The filing notifies the U.S. Federal Trade Commission and Department of Justice so they can review competitive effects; the standard waiting period is 30 calendar days (15 days for certain cash tender offers and bankruptcy transactions), and it can be prolonged if regulators issue a “second request” for more information or grant early termination of the waiting period. The rule applies only when the transaction meets statutory size and other filing thresholds.
Earnings Snapshot
Net revenue: $745.6 million · Guidance included
Third quarter ended September 30, 2026; cash flow figures are year to date through September 30, 2026
Net revenue
$745.6 million
Up 10.9% from $672.4 million in the third quarter of 2025
Adjusted EBITDA
$141.9 million
Down 2.9% from $146.1 million in the third quarter of 2025
Cash flow from operations
$395.6 million
Compared with $418.6 million for the nine months ended September 30, 2025
Free cash flow
$2.6 million
Compared with $140.1 million for the nine months ended September 30, 2025
Guidance
Fiscal 2026 continuing-operations guidance, excluding Diabetes Health, is net revenue of $2.88 billion to $2.90 billion (previously $2.85 billion to $2.89 billion) and Adjusted EBITDA of $510 million to $525 million (previously $490 million to $520 million); free cash flow, which includes continuing and discontinued operations, is $50 million to $75 million (previously $80 million to $120 million).
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were AHCO’s third-quarter 2026 revenue and Adjusted EBITDA?
AdaptHealth reported $745.6 million in net revenue, up 10.9% from the third quarter of 2025, and $141.9 million in Adjusted EBITDA, down 2.9%.
What is AHCO’s fiscal 2026 financial guidance?
AdaptHealth revised continuing-operations guidance, excluding Diabetes Health, to $2.88 billion to $2.90 billion in net revenue and $510 million to $525 million in Adjusted EBITDA. Free cash flow guidance is $50 million to $75 million and includes cash flows from continuing and discontinued operations.
When is AHCO’s Diabetes Health sale expected to close?
The $235.0 million cash sale is on track to close in early 2027, subject to certain regulatory approvals and customary closing conditions. AdaptHealth cleared the Hart-Scott-Rodino waiting period.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||||||||
(Address of principal executive offices and zip code) | ||||||||||||||
( | ||||||||||||||
(Registrant's telephone number, including area code) | ||||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written 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)) | |||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
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.
The following information is furnished pursuant to Regulation FD.
On November 3, 2026, AdaptHealth Corp. (the "Company") issued a press release (the “Press Release”) announcing financial results for the quarter ended September 30, 2026. A copy of the Press Release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Item 2.02 (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by reference in such filing.
Item 9.01 - Financial Statements and Exhibits
(d) Exhibits
Exhibit No. | Description | |||||||
99.1 | Press Release dated November 3, 2026 announcing the earnings results for the quarter ended September 30, 2026. | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
Dated: November 3, 2026
AdaptHealth Corp. | |||||
By: | /s/ Harriss T. Currie | ||||
Name: | Harriss T. Currie | ||||
Title: | Chief Financial Officer | ||||
Exhibit 99.1
FOR IMMEDIATE RELEASE
ADAPTHEALTH CORP. ANNOUNCES THIRD QUARTER 2026 RESULTS
CONSHOHOCKEN, Pa. – November 3, 2026 - AdaptHealth Corp. (NASDAQ: AHCO) (“AdaptHealth” or the “Company”), a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services, announced today financial results for the third quarter ended September 30, 2026.
Third Quarter Business Highlights
•Made solid progress in the second full quarter of the Company’s exclusive capitated agreement with a large national integrated delivery network, with utilization lower than peak levels and reduced labor costs driving a sequential improvement in contract profitability.
•Cleared the Hart-Scott-Rodino waiting period for the pending sale of the Company’s Diabetes Health business for $235.0 million in cash, with the transaction on track to close in early 2027, subject to certain regulatory approvals and other customary closing conditions.
•Signed preferred-provider agreements with four health systems, and broadened its capitated portfolio through two smaller agreements with regional health plans, one new and one expanded.
•Grew registered myAPP users to more than 615,000, up approximately 88% from year-end 2025, and completed more than 12,600 patient scans with its AI-powered mask-fitting tool.
Third Quarter Results
All comparisons are to the quarter ended September 30, 2025 unless otherwise stated. The amounts presented below reflect the Company’s continuing operations, except for cash flow from operations and free cash flow, which include the cash flows from continuing operations and discontinued operations, see below for further discussion.
•Net revenue was $745.6 million compared to $672.4 million, an increase of 10.9%.
•Organic revenue growth of 12.8%, with growth across each of the Company’s reportable segments.
•Net loss attributable to AdaptHealth Corp. was $168.2 million compared to net income of $10.2 million, largely resulting from a $184.8 million pre-tax write down of goodwill.
•Adjusted EBITDA was $141.9 million compared to $146.1 million, a decrease of 2.9%.
•Cash flow from operations was $395.6 million year-to-date 2026, a decrease from $418.6 million during the comparable period in 2025, and free cash flow was $2.6 million year-to-date 2026, compared to $140.1 million during the comparable period in 2025.
Management Commentary
“In the third quarter, we delivered strong organic revenue growth and exceeded our guidance for revenue, Adjusted EBITDA and free cash flow,” said Suzanne Foster, Chief Executive Officer. “Our capitated partnership made a positive contribution to enterprise Adjusted EBITDA, driven by a tighter labor model and lower costs to serve. We also continue to move toward closing the sale of our Diabetes Health business, bringing us closer to a more focused portfolio built
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around Sleep Health, Respiratory Health and Wellness-at-Home. The business is stabilizing as we work through a period of transformation, and we look forward to carrying that momentum into 2027.”
Financial Outlook
The Company is revising its financial guidance for fiscal year 2026 on a continuing operations basis, which excludes the Diabetes Health business, except for free cash flow, which includes the cash flows from continuing operations and discontinued operations, as follows:
•Net revenue of $2.88 billion to $2.90 billion, from $2.85 billion to $2.89 billion
•Adjusted EBITDA of $510 million to $525 million, from $490 million to $520 million
•Free cash flow of $50 million to $75 million, from $80 million to $120 million
Conference Call
Management will host a teleconference today, Tuesday, November 3, 2026, at 8:30 am ET to discuss the results and business activities with analysts and investors.
Interested parties may participate in the call by dialing:
•800-274-8461 (Domestic) or
•203-518-9814 (International)
When prompted, reference Conference ID: AHCO3Q26
To access the Webcast, please go to the Company’s Investor Relations page at https://adapthealth.com/investorrelations/
Following the live call, a replay will be available for six months on the Company's website, www.adapthealth.com, under "Investor Relations."
About AdaptHealth Corp.
AdaptHealth is a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services. The Company operates under three reportable segments that align with its product categories: (i) Sleep Health, (ii) Respiratory Health, and (iii) Wellness at Home. The Sleep Health segment provides sleep therapy equipment, supplies and related services (including CPAP and BiLevel services) to individuals for the treatment of obstructive sleep apnea. The Respiratory Health segment provides oxygen and home mechanical ventilation equipment and supplies and related chronic therapy services to individuals for the treatment of respiratory diseases, such as chronic obstructive pulmonary disease and chronic respiratory failure. The Wellness at Home segment provides home medical equipment and services to patients in their homes including those who have been discharged from acute care and other facilities. The segment tailors a service model to patients who are adjusting to new lifestyles or navigating complex disease states by providing essential medical supplies and durable medical equipment.
In July 2026, AdaptHealth entered into a definitive agreement to sell the Diabetes Health business for $235.0 million in cash, subject to customary purchase price adjustments. As a result of this transaction, the Diabetes Health business met the criteria to be reported as discontinued operations. Therefore, AdaptHealth has reported the results of the Diabetes Health business, including the results of operations, and related assets and liabilities, as discontinued operations for all periods presented herein.
The Company is proud to partner with an extensive and highly diversified network of referral sources, including acute care hospitals, sleep labs, pulmonologists, skilled nursing facilities, and clinics. AdaptHealth services beneficiaries of Medicare, Medicaid, and commercial insurance payors, reaching approximately 4.8 million patients annually in all 50 states through its network of approximately 660 locations in 48 states.
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Forward-Looking Statements
This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics and projections of market opportunity and expectations and the Company’s acquisition pipeline. These statements are based on various assumptions and on the current expectations of AdaptHealth management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on, by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company.
These forward-looking statements are subject to a number of risks and uncertainties, including the outcome of judicial and administrative proceedings to which the Company may become a party or governmental investigations to which the Company may become subject that could interrupt or limit the Company’s operations, result in adverse judgments, settlements or fines and create negative publicity; changes in the Company’s customers’ preferences, prospects and the competitive conditions prevailing in the healthcare sector. A further description of such risks and uncertainties can be found in the Company’s filings with the Securities and Exchange Commission. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently knows or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause the Company’s assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Use of Non-GAAP Financial Information and Financial Guidance
The Company uses EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, free cash flow and organic revenue, which are financial measures that are not in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, to analyze its financial results and believes that they are useful to investors, as a supplement to U.S. GAAP measures. In addition, the Company’s ability to incur additional indebtedness and make investments under its existing credit agreement is governed, in part, by its ability to satisfy tests based on a variation of Adjusted EBITDA.
The Company believes Adjusted EBITDA and Adjusted EBITDA Margin are useful to investors in evaluating the Company’s financial performance. The Company uses Adjusted EBITDA as the profitability measure in its incentive compensation plans that have a profitability component and to evaluate acquisition opportunities, where it is most often used for purposes of contingent consideration arrangements.
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin should not be considered as measures of financial performance under U.S. GAAP, and the items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing financial performance. Accordingly, these key business metrics have limitations as an analytical tool. They should not be considered as an alternative to net income or any other performance measures derived in accordance with U.S. GAAP or as an alternative to cash flows from operating activities as a measure of the Company’s liquidity.
The Company uses free cash flow, which is a financial measure that is not in accordance with U.S. GAAP, in its operational and financial decision-making and believes free cash flow is useful to investors because similar measures are frequently used by securities analysts, investors, ratings agencies and other interested parties to evaluate the Company's
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competitors and to measure the ability of companies to service their debt. The Company's presentation of free cash flow should not be construed as a measure of liquidity or discretionary cash available to the Company to fund its cash needs, including investing in the growth of its business and meeting its obligations.
Free cash flow should not be considered as a measure of financial performance under U.S. GAAP. Accordingly, this key business metric has limitations as an analytical tool. It should not be considered as an alternative to any performance measures derived in accordance with U.S. GAAP or as an alternative to cash flows from operating activities as a measure of the Company’s liquidity.
The Company uses organic revenue, which is a financial measure that is not in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, to analyze its financial results and believes that it is useful to investors, as a supplement to U.S. GAAP measures. The change in net revenue from organic revenue is reported as organic revenue as a percentage of prior period total reported net revenue. Management believes organic revenue is meaningful to investors as it provides appropriate visibility into how the Company changes organically—that is, within its existing operations using its own resources.
Organic revenue is defined as all changes in reported net revenues from the comparable period presented, excluding: (1) increases in net revenue in the current period from acquisitions attributable to businesses and/or assets the Company has owned for less than one year based on the month of acquisition. This excludes the acquisition of assets from previous providers to facilitate the transition of patients related to newly awarded at-risk capitated contracts, since the revenue related to these agreements is earned organically; and (2) decreases in net revenue from dispositions existing in the prior period from divested product lines, services, and/or businesses for which there is no revenue recognized in the current period.
This release contains non-GAAP financial guidance. There is no reliable or reasonably estimable comparable GAAP measure for the Company’s non-GAAP financial guidance because the Company is not able to reliably predict the impact of certain items that typically have one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of future operating results. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods. As a result, reconciliation of the non-GAAP financial guidance to the most directly comparable GAAP measure is not available without unreasonable effort. In addition, the Company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors. The variability of the specified items may have a significant and unpredictable impact on the Company’s future GAAP results.
In addition, the Company’s financial guidance in this release excludes the impact of any potential additional future strategic acquisitions and any items that have not yet been identified and quantified. The financial guidance is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release.
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ADAPTHEALTH CORP.
Condensed Consolidated Balance Sheets (Unaudited)
| (in thousands) | September 30, 2026 | December 31, 2025 | ||||||||||||
| Assets | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash | $ | 80,687 | $ | 106,136 | ||||||||||
| Accounts receivable | 395,866 | 370,897 | ||||||||||||
| Inventory | 111,897 | 114,893 | ||||||||||||
| Prepaid and other current assets | 73,508 | 100,619 | ||||||||||||
| Current assets held for sale - discontinued operations | 177,131 | 36,354 | ||||||||||||
| Total current assets | 839,089 | 728,899 | ||||||||||||
| Equipment and other fixed assets, net | 646,895 | 503,193 | ||||||||||||
| Operating lease right-of-use assets | 121,244 | 111,968 | ||||||||||||
| Finance lease right-of-use assets | 39,366 | 52,300 | ||||||||||||
| Goodwill | 2,158,313 | 2,457,627 | ||||||||||||
| Identifiable intangible assets, net | 29,902 | 35,774 | ||||||||||||
| Deferred income taxes, net | 302,997 | 267,786 | ||||||||||||
| Other assets | 62,903 | 19,119 | ||||||||||||
| Noncurrent assets held for sale - discontinued operations | — | 139,911 | ||||||||||||
| Total Assets | $ | 4,200,709 | $ | 4,316,577 | ||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable and accrued expenses | $ | 600,674 | $ | 553,700 | ||||||||||
| Current portion of long-term debt | 16,250 | 20,313 | ||||||||||||
| Current portion of operating lease obligations | 36,543 | 30,728 | ||||||||||||
| Current portion of finance lease obligations | 18,281 | 17,702 | ||||||||||||
| Contract liabilities | 67,182 | 59,339 | ||||||||||||
| Other liabilities | 5,305 | 30,106 | ||||||||||||
| Liabilities held for sale - discontinued operations | 580 | 504 | ||||||||||||
| Total current liabilities | 744,815 | 712,392 | ||||||||||||
| Long-term debt, less current portion | 1,867,607 | 1,715,983 | ||||||||||||
| Operating lease obligations, less current portion | 90,173 | 85,470 | ||||||||||||
| Finance lease obligations, less current portion | 21,076 | 32,604 | ||||||||||||
| Other long-term liabilities | 243,805 | 243,804 | ||||||||||||
| Total Liabilities | 2,967,476 | 2,790,253 | ||||||||||||
| Total Stockholders' Equity | 1,233,233 | 1,526,324 | ||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,200,709 | $ | 4,316,577 | ||||||||||
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ADAPTHEALTH CORP.
Consolidated Statements of Operations (Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| (in thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net revenue | $ | 745,648 | $ | 672,367 | $ | 2,165,828 | $ | 1,974,014 | |||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
| Cost of net revenue | 630,841 | 533,849 | 1,851,183 | 1,594,130 | |||||||||||||||||||
| General and administrative expenses | 88,661 | 88,143 | 278,638 | 268,301 | |||||||||||||||||||
| Depreciation and amortization, excluding patient equipment depreciation | 9,316 | 7,002 | 24,433 | 21,330 | |||||||||||||||||||
| Goodwill impairment | 184,751 | — | 328,987 | — | |||||||||||||||||||
| Total costs and expenses | 913,569 | 628,994 | 2,483,241 | 1,883,761 | |||||||||||||||||||
| Gain on sale of businesses | — | — | (6,269) | (32,225) | |||||||||||||||||||
| Gain on deconsolidation of subsidiary | (12,002) | — | (12,002) | — | |||||||||||||||||||
| Operating (loss) income | (155,919) | 43,373 | (299,142) | 122,478 | |||||||||||||||||||
| Interest expense, net | 28,600 | 25,380 | 80,403 | 81,312 | |||||||||||||||||||
| Loss on extinguishment of debt | — | — | 1,322 | — | |||||||||||||||||||
| (Loss) income from continuing operations before income taxes | (184,519) | 17,993 | (380,867) | 41,166 | |||||||||||||||||||
| Income tax (benefit) expense | (17,494) | 6,519 | (45,886) | 36,813 | |||||||||||||||||||
| Net (loss) income from continuing operations | (167,025) | 11,474 | (334,981) | 4,353 | |||||||||||||||||||
| Net income from discontinued operations, net of tax | 14,259 | 14,276 | 34,623 | 31,146 | |||||||||||||||||||
| Net (loss) income | (152,766) | 25,750 | (300,358) | 35,499 | |||||||||||||||||||
| Income attributable to noncontrolling interest | 1,221 | 1,241 | 3,598 | 3,523 | |||||||||||||||||||
| Net (loss) income attributable to AdaptHealth Corp. | $ | (153,987) | $ | 24,509 | $ | (303,956) | $ | 31,976 | |||||||||||||||
| Weighted average common shares outstanding - basic | 136,396 | 135,345 | 136,101 | 135,048 | |||||||||||||||||||
| Weighted average common shares outstanding - diluted | 136,396 | 137,211 | 136,101 | 137,102 | |||||||||||||||||||
| Basic net (loss) income per share: | |||||||||||||||||||||||
| Continuing operations | $ | (1.23) | $ | 0.07 | $ | (2.49) | $ | 0.01 | |||||||||||||||
| Discontinued operations | 0.10 | 0.10 | 0.25 | 0.21 | |||||||||||||||||||
| Basic net (loss) income per share | $ | (1.13) | $ | 0.17 | $ | (2.24) | $ | 0.22 | |||||||||||||||
| Diluted net (loss) income per share: | |||||||||||||||||||||||
| Continuing operations | $ | (1.23) | $ | 0.07 | $ | (2.49) | $ | 0.01 | |||||||||||||||
| Discontinued operations | 0.10 | 0.10 | 0.25 | 0.21 | |||||||||||||||||||
| Diluted net (loss) income per share | $ | (1.13) | $ | 0.17 | $ | (2.24) | $ | 0.22 | |||||||||||||||
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ADAPTHEALTH CORP.
Consolidated Statements of Cash Flows (Unaudited)
| Nine Months Ended September 30, | ||||||||||||||
| (in thousands) | 2026 | 2025 | ||||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net (loss) income | $ | (300,358) | $ | 35,499 | ||||||||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization, including patient equipment depreciation | 343,665 | 284,421 | ||||||||||||
| Goodwill impairment | 328,987 | — | ||||||||||||
| Equity-based compensation | 13,254 | 16,738 | ||||||||||||
| Reduction in the carrying amount of operating lease right-of-use assets | 32,050 | 22,946 | ||||||||||||
| Reduction in the carrying amount of finance lease right-of-use assets | 14,909 | 10,942 | ||||||||||||
| Deferred income tax (benefit) expense | (33,424) | 47,167 | ||||||||||||
| Loss on extinguishment of debt | 1,322 | — | ||||||||||||
| Amortization of deferred financing costs | 5,369 | 4,437 | ||||||||||||
| Gain on deconsolidation of subsidiary | (12,002) | — | ||||||||||||
| Gain on sale of businesses | (6,269) | (32,225) | ||||||||||||
| Other | 1,472 | 3,000 | ||||||||||||
| Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||||||||
| Accounts receivable | (24,969) | 22,142 | ||||||||||||
| Inventory | (4,948) | (9,749) | ||||||||||||
| Prepaid and other assets | 26,743 | (75,059) | ||||||||||||
| Operating lease obligations | (30,809) | (23,474) | ||||||||||||
| Operating liabilities | 40,621 | 111,802 | ||||||||||||
| Net cash provided by operating activities | 395,613 | 418,587 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Purchases of equipment and other fixed assets | (392,981) | (278,492) | ||||||||||||
| Payments for business acquisitions, net of cash acquired | (127,422) | (18,561) | ||||||||||||
| Proceeds from the sale of businesses, net of cash disposed | 6,269 | 117,175 | ||||||||||||
| Proceeds from the sale of assets | 1,439 | — | ||||||||||||
| Investment in joint venture | (2,000) | — | ||||||||||||
| Receipt of contingent consideration from the sale of assets | — | 1,156 | ||||||||||||
| Net cash used in investing activities | (514,695) | (178,722) | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Proceeds from borrowings on long-term debt and lines of credit | 900,000 | — | ||||||||||||
| Repayments on long-term debt and lines of credit | (755,031) | (225,000) | ||||||||||||
| Repayments of finance lease obligations | (12,925) | (12,179) | ||||||||||||
| Proceeds received in connection with employee stock purchase plan | 1,338 | 1,210 | ||||||||||||
| Payments relating to the Tax Receivable Agreement | (26,846) | (25,045) | ||||||||||||
| Payments of debt financing costs | (5,444) | — | ||||||||||||
| Distributions to noncontrolling interests | (3,821) | (5,426) | ||||||||||||
| Payments for tax withholdings from vesting of restricted stock units and stock option exercises | (3,427) | (2,604) | ||||||||||||
| Payments of deferred purchase price from acquisitions | (211) | (211) | ||||||||||||
| Net cash provided by (used in) financing activities | 93,633 | (269,255) | ||||||||||||
| Net decrease in cash | (25,449) | (29,390) | ||||||||||||
| Cash at beginning of period | 106,136 | 109,747 | ||||||||||||
| Cash at end of period | $ | 80,687 | $ | 80,357 | ||||||||||
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ADAPTHEALTH CORP.
Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA
This press release presents AdaptHealth’s EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2026 and 2025.
AdaptHealth defines EBITDA as net income (loss) from continuing operations, plus interest expense, net, income tax expense (benefit), and depreciation and amortization, including patient depreciation.
AdaptHealth defines Adjusted EBITDA as EBITDA (as defined above), plus equity-based compensation expense, goodwill impairment, gain on deconsolidation of subsidiary, gain on sale of businesses, restructuring expenses, loss on extinguishment of debt, litigation settlement expense, and certain other non-recurring items of expense or income.
The following unaudited table presents the reconciliation of net income (loss) from continuing operations to EBITDA and Adjusted EBITDA, and the reconciliation of net income (loss) from continuing operations as a percentage of net revenue to Adjusted EBITDA Margin, for the three months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | ||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| (in thousands, except percentages) | Dollars | Revenue Percentage | Dollars | Revenue Percentage | ||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Net (loss) income from continuing operations | $ | (167,025) | (22.4)% | $ | 11,474 | 1.7% | ||||||||||||||
| Interest expense, net | 28,600 | 3.8% | 25,380 | 3.8% | ||||||||||||||||
| Income tax (benefit) expense | (17,494) | (2.3)% | 6,519 | 1.0% | ||||||||||||||||
| Depreciation and amortization, including patient equipment depreciation | 116,800 | 15.7% | 92,228 | 13.7% | ||||||||||||||||
| EBITDA | (39,119) | (5.2)% | 135,601 | 20.2% | ||||||||||||||||
| Equity-based compensation expense (a) | 986 | 0.1% | 5,191 | 0.8% | ||||||||||||||||
| Goodwill impairment (b) | 184,751 | 24.8% | — | —% | ||||||||||||||||
| Gain on deconsolidation of subsidiary (c) | (12,002) | (1.6)% | — | —% | ||||||||||||||||
| Other non-recurring expenses, net (d) | 7,288 | 0.9% | 5,298 | 0.7% | ||||||||||||||||
| Adjusted EBITDA | $ | 141,904 | 19.0% | $ | 146,090 | 21.7% | ||||||||||||||
| Adjusted EBITDA Margin | 19.0% | 21.7% | ||||||||||||||||||
| (a) | Represents equity-based compensation expense for awards granted to employees and non-employee directors. | |||||||
| (b) | Represents non-cash goodwill impairment charges as a result of the fair values of the Company's Respiratory Health and Wellness at Home reporting units being less than their respective carrying values. | |||||||
| (c) | Represents a pre-tax gain associated with the deconsolidation of the Company's former wholly-owned eCommerce subsidiary. | |||||||
| (d) | The 2026 period consists of $5.1 million of consulting expenses associated with asset dispositions, $1.6 million of severance related to the Company's former Chief Financial Officer, and $0.6 million of other non-recurring expenses. The 2025 period consists of $1.7 million of consulting expenses associated with a reorganization project, $1.2 million write-off of assets, $0.6 million of consulting expenses associated with asset dispositions, and $1.8 million of other non-recurring expenses. | |||||||
The following unaudited table presents the reconciliation of net income (loss) from continuing operations to EBITDA and Adjusted EBITDA, and the reconciliation of net income (loss) from continuing operations as a percentage of net revenue to Adjusted EBITDA Margin, for the nine months ended September 30, 2026 and 2025:
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ADAPTHEALTH CORP.
| Nine Months Ended September 30, | ||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| (in thousands, except percentages) | Dollars | Revenue Percentage | Dollars | Revenue Percentage | ||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Net (loss) income from continuing operations | $ | (334,981) | (15.5)% | $ | 4,353 | 0.2% | ||||||||||||||
| Interest expense, net | 80,403 | 3.7% | 81,312 | 4.1% | ||||||||||||||||
| Income tax (benefit) expense | (45,886) | (2.1)% | 36,813 | 1.9% | ||||||||||||||||
| Depreciation and amortization, including patient equipment depreciation | 332,483 | 15.4% | 268,094 | 13.6% | ||||||||||||||||
| EBITDA | 32,019 | 1.5% | 390,572 | 19.8% | ||||||||||||||||
| Equity-based compensation expense (a) | 12,750 | 0.6% | 16,393 | 0.8% | ||||||||||||||||
| Goodwill impairment (b) | 328,987 | 15.2% | — | —% | ||||||||||||||||
| Gain on deconsolidation of subsidiary (c) | (12,002) | (0.6)% | — | —% | ||||||||||||||||
| Gain on sale of businesses (d) | (6,269) | (0.3)% | (32,225) | (1.6)% | ||||||||||||||||
| Restructuring expenses (e) | 6,070 | 0.3% | — | —% | ||||||||||||||||
| Loss on extinguishment of debt (f) | 1,322 | 0.1% | — | —% | ||||||||||||||||
| Litigation settlement expense (g) | 500 | —% | — | —% | ||||||||||||||||
| Other non-recurring expenses, net (h) | 15,085 | 0.7% | 20,439 | 1.0% | ||||||||||||||||
| Adjusted EBITDA | $ | 378,462 | 17.5% | $ | 395,179 | 20.0% | ||||||||||||||
| Adjusted EBITDA Margin | 17.5% | 20.0% | ||||||||||||||||||
| (a) | Represents equity-based compensation expense for awards granted to employees and non-employee directors. | |||||||
| (b) | Represents non-cash goodwill impairment charges as a result of the fair values of the Company's Respiratory Health and Wellness at Home reporting units being less than their respective carrying values. | |||||||
| (c) | Represents a pre-tax gain associated with the deconsolidation of the Company's former wholly-owned eCommerce subsidiary. | |||||||
| (d) | Represents pre-tax gains associated with the dispositions of two businesses within the Company's Wellness at Home segment. | |||||||
| (e) | Represents expenses related to a cost savings plan that was implemented in June 2026. | |||||||
| (f) | Represents third-party fees and the write-off of unamortized deferred financing costs in connection with the refinancing of the Company's credit agreement. | |||||||
| (g) | Represents an estimated expense to settle a shareholder derivative complaint. | |||||||
| (h) | The 2026 period consists of $9.3 million of consulting expenses associated with asset dispositions, $2.1 million of transaction costs associated with acquisitions, $1.6 million of severance related to the Company's former Chief Financial Officer, and $2.1 million of other net non-recurring expenses. The 2025 period consists of $9.8 million of consulting expenses associated with asset dispositions (of which $5.1 million relates to contingent success fees from the sales of businesses), $2.3 million of consulting expenses associated with systems implementation activities, $1.7 million of consulting expenses associated with a reorganization project, $1.4 million of transaction costs associated with acquisitions, $1.2 million write-off of assets, and $4.0 million of other non-recurring expenses. | |||||||
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ADAPTHEALTH CORP.
Free Cash Flow
This press release presents AdaptHealth’s free cash flow for the three and nine months ended September 30, 2026 and 2025.
AdaptHealth defines free cash flow as net cash provided by operating activities less cash paid for purchases of equipment and other fixed assets.
The following unaudited table reconciles net cash provided by operating activities to free cash flow for the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| (in thousands) | September 30, | September 30, | ||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 156,589 | $ | 161,066 | $ | 395,613 | $ | 418,587 | ||||||||||||||||||
| Purchases of equipment and other fixed assets | (105,525) | (94,242) | (392,981) | (278,492) | ||||||||||||||||||||||
| Free cash flow | $ | 51,064 | $ | 66,824 | $ | 2,632 | $ | 140,095 | ||||||||||||||||||
Contacts
AdaptHealth Corp.
Harriss T. Currie
Chief Financial Officer
Luke Montgomery, CFA
Senior Vice President, Investor Relations
IR@adapthealth.com
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