Key Highlights

  • AHCO shares rose 8.53% pre-market to $6.41 after third-quarter results.
  • Net Revenue was $745.6 million, up 10.9%, with organic growth of 12.8%.
  • 2026 Adjusted EBITDA guidance raised to $510 million to $525 million.

AdaptHealth (NASDAQ:AHCO) shares rose 8.53% to $6.41 in pre-market today, up $0.50 from the prior close of $5.91, which followed a 1.72% gain on Monday. The company reported third-quarter net revenue of $745.6 million, up 10.9% from $672.4 million and just shy of the $746.4 million consensus. Organic revenue grew 12.8%, with growth across each reportable segment. The shares are near their 52-week low of $5.21, after the prior quarter's large miss and a one-day drop of roughly 38%.

AdaptHealth is a Conshohocken, Pennsylvania-based provider of home medical equipment, medical supplies and related services. It operates Sleep Health, Respiratory Health and Wellness at Home segments through about 660 locations in 48 states, reaching approximately 4.8 million patients annually.

Goodwill Write-Down Drives a Net Loss as Adjusted EBITDA Dips

Net loss attributable to AdaptHealth was $168.2 million, compared with Net Income of $10.2 million, largely resulting from a $184.8 million pre-tax write-down of goodwill. Adjusted EBITDA was $141.9 million, compared with $146.1 million, a decrease of 2.9%.

Year-to-date Cash Flow from operations was $395.6 million, compared with $418.6 million, and free cash flow was $2.6 million, compared with $140.1 million. Cash was $80.7 million at September 30.

Capitated Contract Progress and the Diabetes Health Sale

In the second full quarter of its exclusive capitated agreement with a large national integrated delivery network, utilization was below peak levels and reduced labor costs drove a sequential improvement in contract profitability. The company signed preferred-provider agreements with four health systems and added two smaller capitated agreements with regional health plans.

The Hart-Scott-Rodino Waiting Period has cleared for the pending sale of the Diabetes Health Business for $235.0 million in cash, with the transaction on track to close in early 2027, subject to regulatory approvals and customary conditions. Registered myAPP users grew to more than 615,000, up approximately 88% from year-end 2025, and the AI-powered mask-fitting tool completed more than 12,600 patient scans.

On a continuing operations basis, which excludes Diabetes Health, the company now expects 2026 net revenue of $2.88 billion to $2.90 billion, from $2.85 billion to $2.89 billion, compared with an analyst estimate of roughly $2.955 billion. Adjusted EBITDA is guided to $510 million to $525 million, from $490 million to $520 million. Free cash flow, which includes discontinued operations, is guided to $50 million to $75 million, from $80 million to $120 million.

Diabetes Health Closing and Capitated Contract Profitability Are the Next Markers

AdaptHealth paired revenue growth and a higher outlook for revenue and Adjusted EBITDA with a Goodwill write-down and a lower free cash flow range. The next items to follow are the teleconference today, regulatory approvals for the early-2027 closing of the Diabetes Health sale and contract profitability under the capitated agreement.