AdaptHealth (AHCO) Financials

AdaptHealth’s Q2 2026 results show a business that continues to generate substantial operating cash flow, but profitability and asset quality remain under pressure. Revenue was $740.3 million, up approximately 12.7% from the restated $657.1 million reported in Q2 2025, although it declined 9.7% sequentially from $819.8 million in Q1 2026. Compared with Q2 2022 revenue of $727.6 million, the longer-term growth rate has been modest.

Profitability deteriorated sharply in the latest quarter. Gross profit fell to $104.2 million, producing a 14.1% gross margin compared with 20.6% in Q2 2025 and approximately 21.0% in Q2 2024. A $144.2 million impairment charge pushed operating income to a $137.8 million loss and net loss attributable to common shareholders to $133.9 million, or $0.99 per diluted share. This compares with net income attributable to common shareholders of $14.7 million, or $0.10 per share, in Q2 2025.

Cash generation was more resilient than reported earnings. Operating cash flow was $145.3 million in Q2 2026, compared with $162.0 million in Q2 2025 and $198.0 million in Q2 2024. However, capital spending and acquisitions consumed $209.0 million, resulting in negative free cash flow before financing. AdaptHealth financed much of this investment through $475.5 million of new debt while repaying $421.0 million. Cash ended the quarter at $43.3 million, while total reported liabilities increased to $3.0 billion and retained earnings declined to a deficit of $782.9 million.

• Revenue recovered year over year: Q2 2026 revenue increased to $740.3 million from $657.1 million in the restated Q2 2025 period, indicating continued demand for the company’s services despite the sequential decline.
• Operating cash flow remains strong: AdaptHealth generated $145.3 million of operating cash flow in Q2 2026 and has remained cash-flow positive in every supplied quarter, including periods with net losses.
• Liquidity improved modestly on a current-ratio basis: Current assets of $797.5 million exceeded current liabilities of $709.2 million, implying a current ratio of approximately 1.12, up from about 1.06 in Q2 2025.
• Debt refinancing supported near-term funding: The company issued $475.5 million of debt while repaying $421.0 million, producing $52.7 million of net financing inflow and helping fund substantial capital investments.
• Investment spending remains substantial: Property and equipment purchases totaled $166.2 million and acquisitions totaled $42.7 million in Q2 2026. These investments could support future growth, but their returns are not yet evident in the earnings data.
• Cash conversion is heavily influenced by noncash items: Operating cash flow substantially exceeded reported net income because of depreciation and other noncash adjustments. Investors should distinguish recurring cash generation from accounting gains or losses and impairment-related adjustments.
• Profitability weakened materially: Gross margin fell to 14.1% from 20.6% a year earlier, while operating expenses reached $242.0 million, more than double Q1 2026 levels because of the impairment charge.
• Large impairment charges highlight asset-quality risk: AdaptHealth recorded a $144.2 million impairment charge in Q2 2026, following a $128.0 million charge in Q4 2025. Goodwill declined to $2.37 billion from $2.65 billion in Q3 2025 and $3.04 billion in Q3 2023.
• The company remains unprofitable: Q2 2026 net loss attributable to common shareholders was $133.9 million, compared with profits in Q2 and Q3 2025. Retained earnings have fallen to a deficit of $782.9 million from a positive $12.8 million in Q2 2023.
• Leverage remains elevated: Short- and long-term debt totaled approximately $1.92 billion at quarter-end, excluding capital lease obligations. Total liabilities represented roughly 68% of total assets, and cash of $43.3 million was small relative to the company’s debt balance.