Accendra Health (NYSE: ACH) unveils $1.5B balance sheet overhaul with Q1 results
Rhea-AI Filing Summary
Accendra Health reported a first-quarter 2026 net loss from continuing operations of $6.5 million, or $0.08 per share, on net revenue of $627.8 million, down from $673.9 million a year earlier. Operating income was $17.1 million, but higher interest expense contributed to the loss.
Non-GAAP results weakened, with adjusted net loss of $3.1 million versus adjusted net income of $23.2 million and adjusted EBITDA of $58.4 million versus $96.0 million. Free cash flow turned slightly negative at $(2.0) million. Cash rose to $336.9 million, while net debt remained high at $1.77 billion.
The company also announced commitments from existing creditors for a more than $1.5 billion comprehensive balance sheet optimization transaction intended to extend debt maturities, reduce total leverage and reset its capital structure as it continues its shift to a pure play home-based care business.
Positive
- Creditor-backed $1.5B balance sheet transaction: The company has commitments from existing creditors for a more than $1.5 billion comprehensive optimization intended to pay off 2027 maturities, extend its revolver and reduce total leverage.
- Stronger liquidity position: Cash and cash equivalents increased to $336.9 million at March 31, 2026, from $282.0 million at year-end 2025, providing additional flexibility ahead of the planned capital structure reset.
Negative
- Weaker earnings and cash generation: Net revenue declined from $673.9 million to $627.8 million, adjusted EBITDA fell from $96.0 million to $58.4 million, and free cash flow deteriorated from $35.6 million to a $(2.0) million outflow.
- High leverage and interest burden: Net debt stood at $1.77 billion and quarterly interest expense reached $32.3 million, exceeding operating income of $17.1 million and contributing to a continuing-operations loss.
Insights
Leverage remains high, but a committed $1.5B capital structure reset is a major step.
Accendra Health ended March 31, 2026 with total debt of $2.10 billion, cash of $336.9 million and net debt of $1.77 billion, alongside a total deficit of $464.8 million. Interest expense of $32.3 million exceeded operating income, driving a loss.
The company has commitments from existing creditors for a more than $1.5 billion balance sheet optimization transaction. Management highlights paying off 2027 maturities, extending its revolving credit facility and reducing leverage, which would directly address near-term refinancing pressure and liquidity needs if executed as described.
Given current high leverage and a large current portion of long-term debt of $581.3 million, successful completion of this transaction will be important to support the transition to a pure home-based care model and to ease the burden of interest costs disclosed for the quarter.
Quarterly earnings softened, with revenue and non-GAAP profitability both down year over year.
For Q1 2026, net revenue declined to $627.8 million from $673.9 million. Loss from continuing operations widened to $6.5 million from $3.8 million, as interest expense rose to $32.3 million and operating income slipped modestly.
Non-GAAP metrics weakened further: adjusted net result swung to a $(3.1) million loss from $23.2 million income, and adjusted EBITDA fell to $58.4 million from $96.0 million. Free cash flow moved from $35.6 million to a small outflow of $2.0 million, despite stronger cash balances.
Management affirmed full-year 2026 guidance for net revenue and adjusted EBITDA, tying its outlook to assumptions about market conditions, demand, supply chain stability and interest rates. Execution on cost controls and the planned capital structure changes will influence how results track against that guidance.
8-K Event Classification
Key Figures
Key Terms
balance sheet optimization transaction financial
Adjusted EBITDA financial
free cash flow financial
exit and realignment (income) charges financial
non-GAAP financial measures financial
Earnings Snapshot
The company affirmed its prior guidance for full-year 2026 net revenue and adjusted EBITDA, without providing comparable GAAP guidance.
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) | ||
Post Office Box 27626, | |||
Richmond, Virginia | 23261-7626 | ||
(Mailing address of principal | |||
executive offices) | (Zip Code) |
Registrant’s telephone number, including area code
10900 Nuckols Road, Suite 400, Glen Allen, Virginia, 23060
(Former name, former address and former fiscal year, if changes since last report)
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 May 11, 2026, Accendra Health, Inc. (the “Company”) issued a press release regarding its financial results for the first quarter ended March 31, 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 May 11, 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.
OWENS & MINOR, INC. | ||||
Date: May 11, 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 First Quarter 2026 Financial Results and Announces Comprehensive Balance Sheet Optimization Transaction
Commitments in Place from Existing Creditors to Strengthen Balance Sheet, Extend Maturities, and Reduce Leverage
RICHMOND, VA – May 11, 2026 – Accendra Health, Inc. (NYSE: ACH) today reported financial results for the first quarter ended March 31, 2026, and announced a more than $1.5 billion comprehensive balance sheet optimization transaction with commitments from existing creditors that will strengthen the balance sheet, significantly extend maturities and reduce total leverage. Unless otherwise noted, the results herein reflect the Company’s continuing operations, which represent what was previously the Patient Direct segment and certain functional operations.
“Our first quarter results were aligned with our expectations as we continue our transformation into a pure play home based care company. We are also pleased to report that transition services and other separation activity related to our divestiture of Owens & Minor are on track and going according to schedule,” said Edward A. Pesicka, President & Chief Executive Officer, Accendra Health.
“Also, this morning we announced the receipt of commitments from existing creditors that will allow us to conduct a holistic reset of our capital structure and establish the long-term foundation for Accendra Health. Key benefits include paying off our 2027 maturities, a multi-year extension of our revolving credit facility, meaningful debt reduction, and other maturity extensions. This comprehensive solution should provide the business with the appropriate level of liquidity and allows for strategic and financial flexibility for our future,” Pesicka concluded.
The Company plans to effectuate the balance sheet optimization transaction in the near term. Further details on the transactions are available in supplemental slides included on Form 8-K filed with the Securities & Exchange Commission this morning.
Details on First Quarter 2026 Results
First Quarter Results(1)
($ in millions, except per share data) | | 1Q26 | | 1Q25 | ||
Net Revenue | | $ | 627.8 | | $ | 673.9 |
| | | | | | |
Loss from continuing operations, net of tax, GAAP | | $ | (6.5) | | $ | (3.8) |
Adj. net (loss) income from continuing operations, Non-GAAP | | $ | (3.1) | | $ | 23.2 |
| | | | | | |
Adj. EBITDA, Non-GAAP | | $ | 58.4 | | $ | 96.0 |
Free cash flow, Non-GAAP | | $ | (2.0) | | $ | 35.6 |
| | | | | | |
Loss from continuing operations, net of tax per common share, GAAP | | $ | (0.08) | | $ | (0.05) |
Adj. net (loss) income from continuing operations per share, Non-GAAP | | $ | (0.04) | | $ | 0.29 |
(1) Reconciliations of the differences between the non-GAAP financial measures presented in this release and their most directly comparable GAAP financial measures are included in the tables below.
1
2026 Continuing Operations Financial Outlook
The company is affirming its prior guidance for net revenue and adjusted EBITDA for the full year 2026.
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 First Quarter 2026 Financial Results
Accendra Health will host a conference call for investors and analysts on Monday, May 11, 2026, at 8:30 a.m. E.T. Participants may access the call via the toll-free dial-in number at 1-888-300-2035, or the toll dial-in number at 1-646-517-7437. The conference ID access code is 1058917. All interested stakeholders are encouraged to access the simultaneous live webcast by visiting the Investor Relations page of the Accendra Health website available at investors.accendrahealth.com/events-and-presentations/. A replay of the webcast can be accessed following the presentation at the link provided above.
Safe Harbor
This release is intended to be disclosure through methods reasonably designed to provide broad, non-exclusionary distribution to the public in compliance with the SEC’s Fair Disclosure Regulation. This release contains certain “forward looking” statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, the statements in this release regarding our future prospects and performance, including our expectations with respect to our financial performance, our 2026 financial results, our expectations regarding the performance of our business following the completion of the sale of the Products & Healthcare Services business, the adverse impact of failing to consummate all or part of the balance sheet optimization transaction on the terms described herein or at all, our cost saving initiatives, future indebtedness and growth, industry trends, as well as statements related to our expectations regarding the performance of our business, including our ability to address macro and market conditions. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements. Investors should refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 20, 2026, including the section captioned “Item 1A. Risk Factors,” as applicable, and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with or furnished to the SEC, for a discussion of certain known risk factors that could cause the Company’s actual results to differ materially from its current estimates. These filings are available at www.accendrahealth.com. Given these risks and uncertainties, the Company can give no assurance that any forward-looking statements will, in fact, transpire and, therefore, cautions investors not to place undue reliance on them. The Company specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
About Accendra Health
Accendra Health, Inc. (NYSE: ACH) is a leading nationwide provider of products, technology and services that support health beyond the hospital for millions of people each year. We connect patients, providers, and insurers, delivering innovative solutions that help promote better health outcomes and improve quality of life for people living with chronic, complex health conditions. Backed by the industry-leading expertise of our Apria and Byram brands, Accendra Health is reimagining the future of home-based care. To learn more about our broad portfolio of essentials for diabetes, sleep health, wound care, respiratory care, urology and ostomy, visit www.accendrahealth.com.
2
Accendra Health, Inc.
Condensed Consolidated Statements of Operations (unaudited)
(dollars in thousands, except per share data)
| | Three Months Ended March 31, | ||||
| | 2026 | | 2025 | ||
Net revenue | | $ | 627,780 | | $ | 673,884 |
Operating costs and expenses: | | | | | | |
Cost of net revenue | | | 349,752 | | | 354,642 |
Selling, general and administrative expenses | | | 255,226 | | | 262,370 |
Acquisition-related charges and intangible amortization | | | 29,229 | | | 23,456 |
Exit and realignment (income) charges, net | | | (23,552) | | | 13,625 |
Total operating costs and expenses | | | 610,655 | | | 654,093 |
Operating income | |
| 17,125 | |
| 19,791 |
Interest expense, net | | | 32,348 | | | 24,214 |
Other expense, net | | | 1,023 | | | 975 |
Loss from continuing operations before income taxes | |
| (16,246) | |
| (5,398) |
Income tax benefit | |
| (9,778) | |
| (1,588) |
Loss from continuing operations, net of tax | | | (6,468) | | | (3,810) |
Loss from discontinued operations, net of tax | | | — | | | (21,172) |
Net loss | | $ | (6,468) | | $ | (24,982) |
| | | | | | |
Basic loss per common share | | | | | | |
Loss from continuing operations, net of tax | | $ | (0.08) | | $ | (0.05) |
Loss from discontinued operations, net of tax | | | — | | | (0.27) |
Net loss | | $ | (0.08) | | $ | (0.32) |
| | | | | | |
Diluted loss per common share | |
| | |
| |
Loss from continuing operations, net of tax | | $ | (0.08) | | $ | (0.05) |
Loss from discontinued operations, net of tax | | | — | | | (0.27) |
Net loss | | $ | (0.08) | | $ | (0.32) |
3
Accendra Health, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(dollars in thousands)
| | | | | | |
| | March 31, 2026 | | December 31, 2025 | ||
Assets | | | | | | |
Current assets | | | | | | |
Cash and cash equivalents | | $ | 336,880 | | $ | 281,989 |
Accounts receivable, net | |
| 103,703 | |
| 95,907 |
Inventories, net | |
| 65,285 | |
| 74,435 |
Other current assets | |
| 82,632 | |
| 95,540 |
Total current assets | |
| 588,500 | |
| 547,871 |
Patient service equipment and other fixed assets, net of accumulated depreciation and amortization of $180,939 and $207,595 | |
| 227,732 | |
| 256,161 |
Operating lease assets | |
| 101,967 | |
| 109,099 |
Goodwill | |
| 1,228,140 | |
| 1,228,140 |
Intangible assets, net | |
| 107,236 | |
| 136,465 |
Other assets, net | |
| 162,407 | |
| 174,025 |
Total assets | | $ | 2,415,982 | | $ | 2,451,761 |
Liabilities and deficit | |
| | |
| |
Current liabilities | |
| | |
| |
Accounts payable | | $ | 374,824 | | $ | 363,565 |
Accrued payroll and related liabilities | |
| 33,403 | |
| 69,426 |
Current portion of long-term debt | | | 581,250 | | | 250,000 |
Other current liabilities | |
| 213,627 | |
| 264,084 |
Total current liabilities | |
| 1,203,104 | |
| 947,075 |
Long-term debt, excluding current portion | |
| 1,521,941 | |
| 1,799,876 |
Operating lease liabilities, excluding current portion | |
| 67,466 | |
| 70,317 |
Other liabilities | |
| 88,236 | |
| 95,471 |
Total liabilities | |
| 2,880,747 | |
| 2,912,739 |
Total deficit | |
| (464,765) | |
| (460,978) |
Total liabilities and deficit | | $ | 2,415,982 | | $ | 2,451,761 |
4
Accendra Health, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(dollars in thousands)
| | Three Months Ended March 31, | ||||
| | 2026 | | 2025 | ||
Operating activities: |
| | |
| | |
Net loss | | $ | (6,468) | | $ | (24,982) |
Loss from discontinued operations, net of tax | | | — | | | 21,172 |
Adjustments to reconcile net loss to cash used for operating activities: | |
| | |
| |
Depreciation and amortization | |
| 61,742 | |
| 42,902 |
Share-based compensation expense | |
| 3,090 | |
| 4,421 |
Deferred income tax expense (benefit) | |
| 2,571 | |
| (4,395) |
Changes in operating lease right-of-use assets and lease liabilities | |
| 122 | |
| 827 |
Gain from sale and dispositions of patient service equipment | |
| (55,509) | |
| (5,353) |
Changes in operating assets and liabilities: | |
| | | | |
Accounts receivable, net | |
| (7,796) | |
| 4,745 |
Inventories, net | |
| 9,150 | |
| (6,319) |
Accounts payable | |
| 8,775 | |
| 16,124 |
Net change in other assets and liabilities | | | (69,174) | | | (18,065) |
Other, net | | | 3,420 | | | 401 |
Cash used for operating activities from discontinued operations | | | — | | | (66,544) |
Cash used for operating activities | |
| (50,077) | |
| (35,066) |
Investing activities: | |
| | |
| |
Additions to patient service equipment ($41,343 and $44,484) and other fixed assets | |
| (41,646) | | | (45,793) |
Proceeds from sale of patient service equipment | |
| 96,415 | |
| 16,884 |
Additions to computer software | |
| (844) | |
| (2,329) |
Other, net | |
| — | |
| (410) |
Cash used for investing activities from discontinued operations | | | — | | | (16,552) |
Cash provided by (used for) investing activities | |
| 53,925 | |
| (48,200) |
Financing activities: | |
| | |
| |
Borrowings under Revolving Credit Facility | | | 269,100 | | | 776,984 |
Repayments under Revolving Credit Facility | | | (217,600) | | | (679,484) |
Repurchase of common stock | | | — | | | (1,503) |
Other, net | |
| (416) | |
| (146) |
Cash used for financing activities from discontinued operations | | | — | | | (3,073) |
Cash provided by financing activities | |
| 51,084 | |
| 92,778 |
Effect of exchange rate changes on cash and cash equivalents | |
| (41) | |
| 542 |
Net increase in cash and cash equivalents | |
| 54,891 | |
| 10,054 |
Cash and cash equivalents at beginning of period | |
| 281,989 | |
| 49,382 |
Cash and cash equivalents at end of period | | $ | 336,880 | | $ | 59,436 |
Supplemental disclosure of cash flow information: | |
| | |
| |
Income taxes paid, net | | $ | 20,042 | | $ | 125 |
Interest paid | | $ | 29,446 | | $ | 27,487 |
Noncash investing activity: | |
| | |
| |
Unpaid purchases of patient service equipment and other fixed assets at end of period | | $ | 71,997 | | $ | 81,085 |
5
Accendra Health, Inc.
Net Loss Per Common Share (unaudited)
(dollars in thousands, except per share data)
| | Three Months Ended March 31, | ||||
| | 2026 | | 2025 | ||
Loss from continuing operations, net of tax | | $ | (6,468) | | $ | (3,810) |
Loss from discontinued operations, net of tax | | | — | | | (21,172) |
Net loss | | $ | (6,468) | | $ | (24,982) |
| |
| | |
| |
Weighted average shares outstanding - basic | | | 76,432 | | | 77,272 |
Dilutive shares | | | — | | | — |
Weighted average shares outstanding - diluted | | | 76,432 | | | 77,272 |
| | | | | | |
Basic loss per common share | | | | | | |
Loss from continuing operations, net of tax | | $ | (0.08) | | $ | (0.05) |
Loss from discontinued operations, net of tax | | | — | | | (0.27) |
Net loss | | $ | (0.08) | | $ | (0.32) |
| | | | | | |
Diluted loss per common share: | | | | | | |
Loss from continuing operations, net of tax | | $ | (0.08) | | $ | (0.05) |
Loss from discontinued operations, net of tax | | | — | | | (0.27) |
Net loss | | $ | (0.08) | | $ | (0.32) |
Share-based awards for the three months ended March 31, 2026 and 2025 of approximately 1.3 million and 1.8 million shares were excluded from the calculation of net loss per diluted common share as the effect would be anti-dilutive.
6
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 per common share to non-GAAP measures used by management.
| | Three Months Ended March 31, | ||||
| | 2026 | | 2025 | ||
Loss from continuing operations, net of tax, as reported (GAAP) | | $ | (6,468) | | $ | (3,810) |
Pre-tax adjustments: | |
| | |
| |
Acquisition-related charges and intangible amortization (1) | |
| 29,229 | |
| 23,456 |
Exit and realignment (income) charges, net (2) | |
| (23,552) | |
| 13,625 |
Litigation and related charges (3) | | | 64 | | | 270 |
Other (6) | |
| 409 | |
| 424 |
Income tax benefit on pre-tax adjustments (8) | |
| (2,828) | |
| (10,732) |
(Loss) income from continuing operations, net of tax, adjusted (non-GAAP) (Adjusted Net Income) | | $ | (3,146) | | $ | 23,233 |
| | | | | | |
Loss from continuing operations, net of tax per common share, as reported (GAAP) | | $ | (0.08) | | $ | (0.05) |
After-tax adjustments: | |
| | |
| |
Acquisition-related charges and intangible amortization (1) | |
| 0.20 | |
| 0.22 |
Exit and realignment (income) charges, net (2) | |
| (0.16) | |
| 0.12 |
Litigation and related charges (3) | | | — | | | — |
Other (6) | | | — | | | — |
(Loss) income from continuing operations, net of tax, per common share, adjusted (non-GAAP) (Adjusted EPS) | | $ | (0.04) | | $ | 0.29 |
7
Accendra Health, Inc.
GAAP/Non-GAAP Reconciliations (unaudited), continued
(dollars in thousands)
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 March 31, | ||||
| | 2026 | | 2025 | ||
Loss from continuing operations, net of tax, as reported (GAAP) | | $ | (6,468) | | $ | (3,810) |
Income tax benefit | |
| (9,778) | |
| (1,588) |
Interest expense, net | |
| 32,348 | |
| 24,214 |
Acquisition-related charges and intangible amortization (1) | | | 29,229 | | | 23,456 |
Exit and realignment (income) charges, net (2) | | | (23,552) | | | 13,625 |
Litigation and related charges (3) | | | 64 | | | 270 |
Other depreciation and amortization (4) | | | 32,513 | | | 35,336 |
Stock compensation (5) | | | 3,604 | | | 4,091 |
Other (6) | |
| 409 | |
| 424 |
Adjusted EBITDA (non-GAAP) | | | 58,369 | | | 96,018 |
Non-cash convert to sale write off expense (7) | |
| 10,416 | |
| 11,531 |
Patient service equipment capital expenditures | |
| (41,343) | |
| (44,484) |
Interest paid | | | (29,446) | | | (27,487) |
Free cash flow (non-GAAP) | | $ | (2,004) | | $ | 35,578 |
| March 31, | | December 31, | ||
| 2026 | | 2025 | ||
Total debt, as reported (GAAP) | $ | 2,103,191 | | $ | 2,049,876 |
Cash and cash equivalents |
| (336,880) | |
| (281,989) |
Net debt (non-GAAP) | $ | 1,766,311 | | $ | 1,767,887 |
The following items have been excluded in our non-GAAP financial measures:
(1) Acquisition-related charges and intangible amortization for the three months ended March 31, 2025 includes $16 million of acquisition-related costs related to the terminated acquisition of Rotech, which consisted primarily of legal and professional fees. Acquisition-related charges and intangible amortization also include 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, such as 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) During the three months ended March 31, 2026 exit and realignment (income) charges, net was $(24) million and primarily included a $(52) million gain on sales of patient service equipment in response to the contract termination with a commercial Payor, net separation costs incurred after the P&HS Sale of $26 million and charges related to IT and other strategic initiatives of $2.0 million. Exit and realignment charges, net were $14 million for the three months ended March 31, 2025 and primarily included professional fees associated with strategic initiatives of $6.2 million and wind-down costs of Fusion5 of $6.8 million. These costs are not normal recurring, cash operating expenses necessary for the Company to operate its business on an ongoing basis.
8
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.
CONTACT:
Investors
Will Parrish
Vice President, Strategy, Corporate Development, & Investor Relations
Investor.Relations@accendra.com
Media
Darla Turner
media@accendra.com
ACH-CORP
ACH-IR
SOURCE: Accendra Health, Inc.
9
Exhibit 99.2
| First Quarter 2026 Continuing Operations Supplemental Slides May 11, 2026 |
| p. 2 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. 3 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, the adverse impact of failing to consummate all or part of the balance sheet optimization transaction on the terms described herein or at all, our cost saving initiatives, future indebtedness and growth, industry trends, as well as statements related to our expectations regarding the performance of our business, including our ability to address macro and market conditions. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements. Investors should refer to the Accendra Health, Inc.’s (the Company)’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 20, 2026, including the section captioned “Item 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. 4 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. No Offer or Solicitation This presentation is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote, consent or approval in any jurisdiction in connection with the offers to exchange the Company’s existing notes, or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. In particular, this presentation is not an offer of securities for sale into the United States. The new notes to be offered in the offers to exchange have not been registered under the Securities Act or any state securities laws, and unless so registered, the new notes may not be offered or sold in the United States or to any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. |
| p. 5 Accendra’s Broad Product Mix and Diversified Payor Portfolio Support a Resilient Earnings Profile Diverse Earnings Profile 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. |
| p. 6 Historical Total Company(1) 19% 47% 4% 14% -% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% FY25A FY25A Gross Profit Margin % Adj. EBITDA Margin % Gross Profit Margin % Adj. EBITDA Margin % Higher Margin Profile Post P&HS Divestiture Continuing Operations(2) (1) Reflects total Company results which is a non-GAAP financial measure and a reconciliation to the most comparable GAAP equivalent financial measure is described on slides 16 and 17 (2) Reflects FY25A financial performance excluding the impact of discontinued operations related to the P&HS business. (3) Adjusted EBITDA is a non-GAAP financial measure and 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 February 19, 2026. (3) (3) |
| p. 7 P&HS Net Operating and Investing Cash Flows(1) P&HS Cash Flow Observations P&HS was a significant consumer of cash in recent years, driven by: Declining P&HS revenue & profitability Very large and volatile working capital swings Significant historical and needed future investment in both opex and capex (1) Reflects FY24A and FY25A financial performance attributable to discontinued operations related to the P&HS business, the sale of which was completed on December 31, 2025. ($18) ($55) $18 ($256) ~($1) ($311) ($350) ($300) ($250) ($200) ($150) ($100) ($50) $- $50 FY24A FY25A P&HS Net Investing Cash Flows P&HS Net Operating Cash Flows Historical P&HS Cash Consumption Divesting P&HS Has Removed a Major Source of Historical Cash Consumption and Cash Flow Volatility Accendra Health post P&HS divestiture is well positioned to deliver more stable and higher quality free cash flow $ millions |
| p. 8 Durable Post-Investment Earnings Support Accendra Health’s Long-Term Value Creation Adjusted EBITDA (–) PSE Capex Adjusted EBITDA (-) PSE Capex Observations Post-Investment Earnings Power FY25A(1) FY26E (Outlook Midpoint)(2) Adjusted EBITDA (non-GAAP) $375 $345 (+) Non-Cash Convert to Sale Write-Off Expense(3) 47 29 (-) PSE Capex (189) (155) Adjusted EBITDA (–) PSE Capex (non-GAAP) $233 $218 Adjusted EBITDA (–) PSE Capex Bridge $233 $218 $- $50 $100 $150 $200 $250 $300 FY25A FY26E 8.4% 8.4% Adjusted EBITDA (-) PSE Capex reflects Accendra Health’s true earnings capacity available after investment in patient service equipment (PSE) required to support patient volume growth and PSE maintenance needs. (4) Accendra Health’s projected Adjusted EBITDA (-) PSE Capex is anticipated to support operating stability and investment in growth initiatives, underpinning long-term value creation Sustained underlying free cash flow profile supports liquidity and provides meaningful strategic flexibility $ millions $ millions (1) FY25A is presented on a continuing operations basis. (2) Excludes one-time cash items, including those detailed on slide 12 as well as any future Purchaser Separation Costs associated with the P&HS divestiture. (3) Represents the non-cash write-off expense in cost of net revenue of the remaining book value of patient service equipment upon conversion from a rental asset to a sale. (4) Adjusted EBITDA is a non-GAAP financial measure and 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 February 19, 2026. Note: amounts may not sum due to rounding |
| p. 9 Q1 2026 Adjusted EBITDA and Free Cash Flow Three Months Ended March 31, 2026 Loss from continuing operations, net of tax, as reported (GAAP) $ (6) Income tax benefit (10) Interest expense, net 32 Acquisition-related charges and intangible amortization 29 Exit and realignment income, net (24) Other depreciation and amortization 33 Stock compensation 4 Adjusted EBITDA (non-GAAP) 58 Non-cash convert to sale write off expense 10 Patient service equipment capital expenditures (41) Interest paid (29) Free cash flow (non-GAAP) $ (2) $ 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 May 11, 2026. |
| p. 10 $674 $628 Q1 2025 Actual Large Commercial Payor Volume Growth Collection Rate Q1 2026 Actual Net Revenue Supplemental Information $ millions |
| p. 11 $96 $58 Q1 2025 Actual Large Commercial Payor Net of Cost Reductions Volume / Mix Manufacturer Cost Increases & Inflation Collection Rate Q1 2026 Actual 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 May 11, 2026 |
| p. 12 The items above are notable one-time cash (outflows)/inflows which are included in our Statement of Cash Flows in our first quarter 2026 Form 10-Q but which are excluded from Free Cash Flow shown on slide 9 due to their one-time nature. $ millions Cash Flow Supplemental Information Three Months Ended March 31, 2026 Payments for settled portion of historical P&HS-driven IRS matter (19) Payments for legal, advisory, and other fees and expenses related to the closing of the divestiture of P&HS (22) Cash proceeds from sale of patient service equipment and other assets stemming from the exit of a large commercial payor 82 |
| p. 13 Comprehensive Balance Sheet Optimization Summary Addresses near-term maturities and roughly doubles weighted average life to ~5.5 years Reduces funded debt through the exchange offers Enhances liquidity runway with a go-forward RCF sized to the business Supports free cash flow through maturity extension Locks in attractive pricing on new money and exchange debt Key Transaction Benefits for Company Transaction Summary Accendra Health announced a ~$1.5B comprehensive balance sheet optimization with the support from existing creditors The transaction includes: o Amending / extending the 2027 Revolving Credit Facility into a right-sized facility of up to $300M due 2030, subject to a springing maturity 91 days inside intervening maturities of certain indebtedness in excess of $25.0 million o Refinancing the ~$326M 2027 Term Loan A with new money 1L secured notes o Exchanging existing 2029 Senior Notes into new 1L / 2L secured notes and existing 2030 Senior Notes into new 2L secured notes o Discount capture reduces total debt by up to ~$115M (assuming full participation in the exchange offers) o Attractive interest rates o New 1L secured notes of up to $539M at 9.00% due 2032 o New 2L secured notes of up to $702M at 9.75% due 2033 |
| p. 14 3/31/2026 Illustrative Pro Forma $450M Revolving Credit Facility 255 Term Loan A 326 Term Loan B 511 511 Unsecured Notes Due 2029 479 Unsecured Notes Due 2030 552 New $300M Revolving Credit Facility - New 1L Notes 539 New 2L Notes 702 Total Funded Debt $ 2,123 $ 1,752 Funded Debt Reduction (1) (1) (1) (1) Balance Sheet Cash and up to ~$115M of Discount Capture Drive up to $370M+ Funded Debt Reduction (1) Illustrative pro forma balances presented assume 100% participation in public notes exchanges and imply $326M from new money 1L Notes, $213M from exchanged 1L Notes, and $702M from exchanged 2L Notes. $ millions |
| p. 15 Enhanced Maturity Profile $450 $326 $511 $479 $552 $- $250 $500 $750 $1,000 2026 2027 2028 2029 2030 2031 2032 2033 $450M Revolving Credit Facility Term Loan A Term Loan B Unsecured Notes Due 2029 Unsecured Notes Due 2030 $300 $511 $539 $702 $- $250 $500 $750 $1,000 2026 2027 2028 2029 2030 2031 2032 2033 New $300M Revolving Credit Facility Term Loan B New 1L Notes New 2L Notes (2) Pre-Transaction Maturity Profile Illustrative Pro-Forma Maturity Profile $ millions $ millions (2) Weighted Average Life: ~2.7 years Weighted Average Life: ~5.5 years (1) (1) $511 $300 $539 $702 $990 $776 $552 (1) Illustrates total facility capacity. (2) Pro forma balances presented assume 100% participation in public notes exchange. |
| p. 16 GAAP to Non-GAAP Reconciliations $ millions Net loss, as reported (GAAP) $ (1,101) Loss from discontinued operations, net of tax 998 Income tax provision 1 Interest expense, net 107 Acquisition-related charges and intangible amortization (1) 96 Transaction breakage fee (2) 80 Exit and realignment charges, net (3) 18 Transaction financing fees, net (4) 18 Litigation and related charges (5) 2 Other depreciation and amortization (6) 141 Stock compensation (7) 12 Other (8) 2 Adjusted EBITDA from continuing operations (non-GAAP) 375 Adjusted EBITDA from discontinued operations (non-GAAP) 50 Total Adjusted EBITDA (non-GAAP) $ 424 $ millions Net revenue, as reported (GAAP) $ 2,762 Net revenue from discontinued operations (9) 7,910 Total net revenue (Non-GAAP) $ 10,672 $ millions Net revenue, as reported (GAAP) $ 2,762 Cost of net revenue, as reported (GAAP) 1,473 Gross profit from continuing operations (GAAP) 1,289 Gross profit from discontinued operations (10) 783 Total gross profit (Non-GAAP) $ 2,072 December 31, 2025 Year Ended December 31, 2025 Year Ended December 31, 2025 Year Ended |
| p. 17 GAAP to Non-GAAP Reconciliations, continued The following items have been excluded in our non-GAAP financial measures: (1) Acquisition-related charges and intangible amortization for the year ended December 31, 2025 includes $22 million of acquisition-related costs 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, 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 includes a cash payment to Rotech of $80 million on June 5, 2025, for the termination of the Rotech Acquisition. (3) Exit and realignment charges, net were $18 million and included professional fees associated with strategic initiatives of $8.4 million, severance associated with strategic realignments of $5.4 million, a $4.8 million gain on sale of patient service equipment in response to the contract termination with a commercial Payor and IT strategic initiatives and other of $1.5 million. These charges 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 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 certain legal matters. These costs do not occur in the ordinary course of our business, 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. Stock compensation includes a $4.0 million benefit associated with updated expected achievement for our performance share awards. (8) Other includes interest costs and net actuarial losses related to our frozen noncontributory, unfunded retirement plan for certain retirees in the United States. (9) Represents net revenue from discontinued operations as disclosed in Note 3 in the Notes to Consolidated Financial Statements in our Form 10-K for the year ended December 31, 2025. (10) Represents gross profit from discontinued operations as disclosed in Note 3 in the Notes to Consolidated Financial Statements in our Form 10-K for the year ended December 31, 2025. |
