AdaptHealth (NASDAQ:AHCO) Releases Quarterly Earnings Results

AdaptHealth (NASDAQ:AHCO) announced its earnings results on Tuesday. The company reported ($0.99) earnings per share for the quarter, missing the consensus estimate of $0.17 by ($1.16), Briefing.com reports. The company had revenue of $600.38 million during the quarter, compared to analysts’ expectations of $846.77 million. AdaptHealth had a negative net margin of 2.42% and a positive return on equity of 2.76%. The company’s revenue for the quarter was down 7.5% compared to the same quarter last year. During the same quarter last year, the business posted $0.10 earnings per share.

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

• Organic revenue growth was strong, with second-quarter continuing-operations revenue up 12.7% year over year, or 15.9% organically; Sleep Health and Respiratory Health grew 15.5% and 14.1%, respectively.
• AdaptHealth is narrowing its focus to Sleep Health, Respiratory Health and core home medical equipment through the planned $235 million Diabetes Health sale, non-core Wellness at Home exits and an e-commerce joint venture. Management expects these actions to improve long-term growth and margins, while the divestiture proceeds will support debt reduction.
• Management reduced full-year 2026 Adjusted EBITDA guidance to $490 million-$520 million from $680 million-$730 million. The reset reflects $55 million of pressure from the West Coast capitated contract, a $30 million expected second-half impact from a supplier price increase, stranded corporate costs and portfolio actions.
• The West Coast capitated contract continues to face higher-than-expected Sleep resupply and enteral volumes, inefficient workflows and elevated labor and logistics costs; management estimates a $40 million second-half profitability impact and expects only gradual improvement toward a 20% margin target next year.
• Second-quarter free cash flow was negative $20.9 million after $166.2 million of capital expenditures supporting the capitated rollout, but the company expects $80 million-$120 million for the full year and plans to prioritize debt repayment while working toward 2.5 times net leverage.

AdaptHealth Price Performance

AHCO stock traded down $4.12 on Tuesday, reaching $6.71. 18,975,417 shares of the company’s stock were exchanged, compared to its average volume of 1,456,361. The stock has a fifty day moving average of $10.29 and a 200-day moving average of $10.68. The firm has a market cap of $911.96 million, a PE ratio of -10.82, a P/E/G ratio of 0.55 and a beta of 1.47. The company has a quick ratio of 0.71, a current ratio of 0.92 and a debt-to-equity ratio of 1.21. AdaptHealth has a twelve month low of $6.14 and a twelve month high of $13.43.

Trending Headlines about AdaptHealth

Here are the key news stories impacting AdaptHealth this week:

• Positive Sentiment: Second-quarter net revenue increased 12.7% year over year to $740.3 million, while organic revenue growth was 15.9%. AdaptHealth also agreed after quarter-end to sell its Diabetes Health business for $235 million in cash, which could improve liquidity and allow management to focus on its core operations. AdaptHealth Q2 revenue rises 12.7% as net loss widens
• Neutral Sentiment: Management said a West Coast capitated partnership reached full scale during the quarter, but the transition’s complexity affected margins. The earnings call is expected to provide additional detail on the partnership, the Diabetes Health sale and the path to improved cash generation. AdaptHealth Q2 2026 Earnings Call Transcript
• Negative Sentiment: AdaptHealth reported an adjusted loss of $0.10 per share, missing the $0.17 analyst consensus by $0.27; revenue declined 7.5% year over year according to one earnings report, reflecting conflicting presentation of operating metrics across reports. The company also posted a $145.3 million net loss, largely due to a $144.2 million pretax goodwill impairment, compared with $4.2 million of net income a year earlier. AdaptHealth quarterly earnings report
• Negative Sentiment: Fiscal 2026 revenue guidance was reduced to approximately $2.85 billion-$2.89 billion, well below the roughly $3.5 billion consensus estimate. Adjusted EBITDA fell 3.2% to $132 million, operating cash flow declined to $239 million year to date from $257.5 million, and free cash flow turned negative at $48.4 million versus positive $73.3 million last year.
• Negative Sentiment: Holzer & Holzer announced an investigation into whether AdaptHealth complied with federal securities laws following the guidance revision and weak cash-flow disclosure. Such an investigation adds legal and reputational risk, although no wrongdoing has been established. AHCO investor investigation announcement

Insider Activity at AdaptHealth

In other news, insider Russell E. Schuster III sold 11,275 shares of the company’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $10.06, for a total transaction of $113,426.50. Following the transaction, the insider directly owned 136,538 shares of the company’s stock, valued at $1,373,572.28. This represents a 7.63% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.95% of the company’s stock.

Institutional Trading of AdaptHealth

A number of institutional investors have recently added to or reduced their stakes in the stock. Corient Private Wealth LLC grew its position in AdaptHealth by 8.6% during the fourth quarter. Corient Private Wealth LLC now owns 22,562 shares of the company’s stock worth $227,000 after buying an additional 1,794 shares during the period. Millennium Management LLC boosted its stake in shares of AdaptHealth by 197.0% during the 4th quarter. Millennium Management LLC now owns 552,677 shares of the company’s stock worth $5,505,000 after acquiring an additional 366,566 shares in the last quarter. Man Group plc grew its holdings in shares of AdaptHealth by 24.3% in the 4th quarter. Man Group plc now owns 88,774 shares of the company’s stock worth $884,000 after acquiring an additional 17,371 shares during the period. Balyasny Asset Management L.P. grew its holdings in shares of AdaptHealth by 699.1% in the 4th quarter. Balyasny Asset Management L.P. now owns 118,942 shares of the company’s stock worth $1,185,000 after acquiring an additional 104,058 shares during the period. Finally, Guggenheim Capital LLC increased its stake in AdaptHealth by 350.1% in the 4th quarter. Guggenheim Capital LLC now owns 64,945 shares of the company’s stock valued at $647,000 after purchasing an additional 50,517 shares in the last quarter. Hedge funds and other institutional investors own 82.67% of the company’s stock.

Analyst Ratings Changes

A number of research firms recently weighed in on AHCO. Canaccord Genuity Group lifted their price objective on shares of AdaptHealth from $14.00 to $16.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. Truist Financial raised their target price on shares of AdaptHealth from $13.00 to $14.00 and gave the stock a “buy” rating in a research note on Monday, April 13th. UBS Group dropped their price target on shares of AdaptHealth from $15.00 to $14.00 and set a “buy” rating on the stock in a research note on Wednesday, May 6th. Wall Street Zen raised shares of AdaptHealth from a “hold” rating to a “buy” rating in a report on Sunday, June 14th. Finally, Royal Bank Of Canada raised their price objective on shares of AdaptHealth from $13.00 to $15.00 and gave the company an “outperform” rating in a research report on Monday, May 11th. Seven research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, AdaptHealth has an average rating of “Moderate Buy” and a consensus price target of $14.14.

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.