AdaptHealth (NASDAQ:AHCO) Issues Quarterly Earnings Results

AdaptHealth (NASDAQ:AHCO) issued its quarterly earnings results on Tuesday. The company reported ($0.12) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.01 by ($0.13), FiscalAI reports. AdaptHealth had a negative net margin of 2.42% and a positive return on equity of 2.76%. The business had revenue of $819.80 million during the quarter, compared to analyst estimates of $796.63 million. During the same quarter in the previous year, the firm posted ($0.05) earnings per share. The firm’s quarterly revenue was up 5.4% on a year-over-year basis.

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 2.8%

Shares of AdaptHealth stock opened at $11.42 on Thursday. The company has a debt-to-equity ratio of 1.21, a quick ratio of 0.81 and a current ratio of 0.92. The firm has a 50-day moving average of $11.25 and a 200-day moving average of $10.39. AdaptHealth has a 52-week low of $7.95 and a 52-week high of $13.43. The stock has a market cap of $1.55 billion, a PE ratio of -18.42, a PEG ratio of 1.35 and a beta of 1.57.

Insider Transactions at AdaptHealth

In other AdaptHealth news, major shareholder Richard M. Cashin, Jr. bought 447,100 shares of the stock in a transaction dated Friday, March 20th. The shares were bought at an average cost of $9.91 per share, with a total value of $4,430,761.00. Following the completion of the acquisition, the insider owned 16,312,698 shares of the company’s stock, valued at $161,658,837.18. This trade represents a 2.82% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Over the last ninety days, insiders have bought 2,494,518 shares of company stock valued at $24,352,291. Insiders own 1.55% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of AHCO. Deerfield Management Company L.P. increased its holdings in AdaptHealth by 15.9% in the 3rd quarter. Deerfield Management Company L.P. now owns 11,477,730 shares of the company’s stock valued at $102,726,000 after buying an additional 1,572,835 shares during the period. Dimensional Fund Advisors LP increased its stake in AdaptHealth by 15.6% in the third quarter. Dimensional Fund Advisors LP now owns 5,982,070 shares of the company’s stock valued at $53,537,000 after acquiring an additional 809,459 shares during the last quarter. Iron Triangle Partners LP increased its stake in AdaptHealth by 35.6% in the fourth quarter. Iron Triangle Partners LP now owns 2,609,003 shares of the company’s stock valued at $25,986,000 after acquiring an additional 684,871 shares during the last quarter. Lazard Asset Management LLC raised its position in AdaptHealth by 1,246.3% during the second quarter. Lazard Asset Management LLC now owns 686,720 shares of the company’s stock valued at $6,474,000 after purchasing an additional 635,713 shares in the last quarter. Finally, Invesco Ltd. lifted its stake in AdaptHealth by 50.0% during the second quarter. Invesco Ltd. now owns 1,906,074 shares of the company’s stock worth $17,974,000 after purchasing an additional 634,973 shares during the last quarter. Institutional investors and hedge funds own 82.67% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms recently issued reports on AHCO. Royal Bank Of Canada reiterated an “outperform” rating and set a $13.00 target price on shares of AdaptHealth in a report on Wednesday, February 25th. Leerink Partners lowered their price target on AdaptHealth from $13.00 to $12.00 and set an “outperform” rating on the stock in a research report on Thursday, February 26th. Wall Street Zen cut AdaptHealth from a “buy” rating to a “hold” rating in a research note on Saturday, February 28th. UBS Group decreased their target price on shares of AdaptHealth from $15.00 to $14.00 and set a “buy” rating for the company in a research note on Wednesday. Finally, Robert W. Baird set a $18.00 price target on shares of AdaptHealth in a research report on Wednesday. Five research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $14.00.

About AdaptHealth

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.