AdaptHealth lowers outlook as new contract, manufacturer costs pressure margins

CONSHOHOCKEN, Pa. – AdaptHealth expanded two key payer relationships in the second quarter, completing the first full quarter under a capitated agreement with a large national integrated delivery network and signing a new agreement with Humana OneHome in South Florida and Texas to service about 478,000 members.

AdaptHealth says that the complexity of getting the first contract fully at run rate, coupled with an unexpected price increase from one of its manufacturers, impacted its margins in the second quarter and led the company to lower its full-year outlook.

“We are moving quickly to address the cost pressures introduced by our rapid growth, and we believe these actions will make us a stronger, more efficient company,” said Suzanne Foster, CEO.

AdaptHealth’s revised guidance includes a $55 million impact related to the first contract and a $30 million impact from the manufacturer price increase.

The company’s second quarter results:

• Net revenue was $740.3 million compared to $657.1 million, an increase of 12.7%
• Organic revenue growth of 15.9%, with growth across each of the company’s reportable segments
• Net loss attributable to AdaptHealth Corp. was $145.3 million compared to net income of $4.2 million, largely resulting from a $144.2 million pre-tax write down of goodwill
• Adjusted EBITDA was $132.0 million compared to $136.4 million, a decrease of 3.2%
• Cash flow from operations was $239.0 million year-to-date 2026, a decrease from $257.5 million during the comparable period in 2025, and free cash flow was negative $48.4 million year-to-date 2026, compared to $73.3 million during the comparable period in 2025

The company’s revised full-year guidance:

• Net revenue of $2.85 billion to $2.89 billion
• Adjusted EBITDA of $490 million to $520 million
• Free cash flow of $80 million to $120 million

AdaptHealth also highlighted:

• Subsequent to quarter end, it has entered into a joint venture that combines the company's e-commerce asset with a leading e-commerce sleep retailer and adds a home sleep test capability to help reach the vast undiagnosed OSA population
• It grew registered myAPP users to more than 512,000, up 56% from year end 2025, and launched an AI-powered mask-fitting tool
• Completed a workforce restructuring, generating $19 million in annualized savings while maintaining full operational delivery across all functions

Related: Cardinal Health will acquire the diabetes business of AdaptHealth.