AdaptHealth: Business is stabilizing as company works through transition

CONSHOHOCKEN, Pa. – AdaptHealth reported net revenue of $745.6 million for the third quarter, a 10.9% increase compared to the same period last year.

Net loss 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, a 2.9% decrease.

“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, CEO. “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 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.”

AdaptHealth highlighted the following milestones in the third quarter:

• Made solid progress in the second full quarter of an 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 Diabetes Health business for $235 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 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.

AdaptHealth is revising its financial guidance for fiscal year 2026 to:

• Net revenue of $2.88 billion to $2.9 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