AdaptHealth (NASDAQ:AHCO) Announces Earnings Results

Key Points

• AdaptHealth reported a quarterly EPS of ($0.12), missing the consensus of $0.01, but revenue of $819.8M beat estimates and rose 5.4% YoY with 9.1% organic growth—driven in part by the company's largest-ever patient transition to become exclusive provider for over 10 million members.
• Profitability and cash metrics disappointed: adjusted EBITDA of $121.2M missed guidance (hurt by ~$12M in elevated labor), free cash flow was negative $27.5M due to $121.2M of inventory-driven CapEx, and net leverage climbed to about 3.0x, while the stock fell ~13.3% on the news.
• Management completed a $1.1B refinancing extending maturities to 2031 and boosting liquidity to support disciplined tuck‑in M&A, and insider Richard M. Cashin Jr. materially increased his stake with an 820,528‑share purchase.

AdaptHealth (NASDAQ:AHCO - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported ($0.12) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.01 by ($0.13), FiscalAI reports. AdaptHealth had a negative net margin of 2.18% and a positive return on equity of 3.42%. The business had revenue of $819.80 million during the quarter, compared to the consensus estimate of $796.63 million. During the same period in the previous year, the business posted ($0.05) earnings per share. AdaptHealth's revenue was up 5.4% compared to the same quarter last year.

Here are the key takeaways from AdaptHealth's conference call:

• Completed the largest patient transition in HME history, becoming the exclusive provider for more than 10 million new members (capitated membership ~15M) via 35 de novo locations, which contributed ~500 bps of the quarter's organic growth.
• Q1 net revenue was $819.8M (+5.4% YoY) and beat guidance by about $22M, with 9.1% organic growth and broad-based strength (Sleep Health +13.3%, record PAP starts).
• Adjusted EBITDA of $121.2M missed guidance by ~$7M due to $12M of elevated labor costs ( ~$8M variable to accelerate the transition and ~$4M in wages/benefits), and free cash flow was negative $27.5M driven by $121.2M of CapEx to stock inventory, while net leverage rose to ~3.0x.
• Completed a $1.1B refinancing that extends maturities to 2031, lowers cost of debt, increases revolver capacity and includes a delayed draw to fund redemption of 2028 notes, giving greater financial flexibility for disciplined tuck‑in M&A.
• AI and digital investments reached milestones — conversational AI handling live calls and 25% touchless scheduling, and the patient portal surpassed 412k users — with management saying material margin benefits are expected over the back half of 2026 and into 2027.

AdaptHealth Trading Down 13.3%

Shares of NASDAQ AHCO traded down $1.74 during midday trading on Tuesday, reaching $11.30. 733,320 shares of the stock were exchanged, compared to its average volume of 1,265,460. The business has a 50-day simple moving average of $11.20 and a two-hundred day simple moving average of $10.36. The company has a market capitalization of $1.54 billion, a price-to-earnings ratio of -20.59, a P/E/G ratio of 1.52 and a beta of 1.57. AdaptHealth has a 12 month low of $7.95 and a 12 month high of $13.43. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.02 and a quick ratio of 0.81.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on AHCO shares. Jefferies Financial Group reaffirmed a "hold" rating and issued a $11.00 price objective on shares of AdaptHealth in a research note on Monday, April 20th. Weiss Ratings cut shares of AdaptHealth from a "hold (c-)" rating to a "sell (d)" rating in a research note on Wednesday, February 25th. Wall Street Zen cut shares of AdaptHealth from a "buy" rating to a "hold" rating in a research note on Saturday, February 28th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $13.00 price objective on shares of AdaptHealth in a research note on Wednesday, February 25th. Finally, Leerink Partners reduced their price objective on shares of AdaptHealth from $13.00 to $12.00 and set an "outperform" rating on the stock in a research note on Thursday, February 26th. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $13.00.

Insider Buying and Selling at AdaptHealth

In other news, major shareholder Richard M. Cashin, Jr. purchased 820,528 shares of AdaptHealth stock in a transaction dated Tuesday, March 10th. The shares were bought at an average cost of $9.73 per share, with a total value of $7,983,737.44. Following the completion of the transaction, the insider directly owned 14,638,708 shares in the company, valued at $142,434,628.84. This trade represents a 5.94% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders have acquired 2,494,518 shares of company stock worth $24,352,291 over the last quarter. Company insiders own 1.55% of the company's stock.

Hedge Funds Weigh In On AdaptHealth

Hedge funds and other institutional investors have recently made changes to their positions in the company. PNC Financial Services Group Inc. lifted its position in AdaptHealth by 22.3% in the 4th quarter. PNC Financial Services Group Inc. now owns 7,003 shares of the company's stock valued at $70,000 after acquiring an additional 1,279 shares in the last quarter. Tower Research Capital LLC TRC lifted its position in AdaptHealth by 318.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 9,592 shares of the company's stock valued at $90,000 after acquiring an additional 7,297 shares in the last quarter. Tidal Investments LLC bought a new stake in AdaptHealth in the 2nd quarter valued at $96,000. CIBC Bancorp USA Inc. bought a new stake in AdaptHealth in the 3rd quarter valued at $97,000. Finally, Cerity Partners LLC bought a new stake in AdaptHealth in the 2nd quarter valued at $104,000. 82.67% of the stock is owned by institutional investors.

AdaptHealth Company Profile

AdaptHealth, Inc operates as a leading provider of home medical equipment (HME) and related services in the United States. The company focuses on delivering respiratory care, mobility solutions and bathroom safety products to patients with chronic and acute medical needs. Through its comprehensive service offerings, AdaptHealth aims to enhance quality of life and clinical outcomes for patients who require long-term support outside of a hospital setting.

The company's respiratory portfolio includes products such as continuous positive airway pressure (CPAP) devices, oxygen concentrators, ventilators, and associated supplies for patients with sleep apnea, COPD and other pulmonary conditions.

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