AdaptHealth's fourth-quarter earnings fall short of expectations

LootboxPhobia · 2026-02-24T18:36:44+00:00

AdaptHealth Corp. reported a Q4 loss of $0.76 per share, below analyst expectations, but revenue reached $846.3 million, surpassing expectations. Despite revenue growth, poor profitability led to a decline in stock price. The company expects revenue and EBITDA to grow in fiscal year 2026, with the CEO emphasizing a shift in operational model.

LootboxPhobia

2026-02-24 18:36:44

Abstract generation in progress

Conshohocken, Pennsylvania - On Tuesday, AdaptHealth Corp. (NASDAQ: AHCO) reported a fourth-quarter loss of $0.76 per share, compared to analyst expectations of a $0.36 loss, missing by $1.12. However, revenue of $846.3 million exceeded the consensus estimate of $832.5 million. Revenue declined 1.2% year-over-year.

Despite beating revenue expectations, the company’s stock fell 0.29% in pre-market trading due to earnings falling short of expectations, reflecting investor concerns.

The company reported a 1.7% organic revenue growth this quarter, with patient surveys in sleep health, respiratory health, and home health segments reaching record levels.

Adjusted EBITDA for the quarter was $163.1 million, down 18.7% from $200.6 million a year earlier. This quarter included $14.5 million in legal settlement costs and over $10 million related to strategic investments in new per-member-per-month contracts.

The company also recorded a $128 million non-cash goodwill impairment charge this quarter.

For fiscal year 2026, AdaptHealth provided revenue guidance of $3.44 billion to $3.51 billion, with a midpoint of $3.475 billion, slightly above the analyst consensus of $3.44 billion. The company also expects adjusted EBITDA of $680 million to $730 million and free cash flow of $175 million to $225 million.

CEO Suzanne Foster stated, “We have transformed our operating model, laying the foundation for sustained growth. We completed the industry’s largest per-member-per-month contract in history.”

For the full fiscal year 2025, net revenue was $3.24 billion, down 0.5% from $3.26 billion in 2024, while adjusted EBITDA decreased 10.5% from $688.7 million to $616.7 million.

The company generated $601.8 million in operating cash flow and $219.4 million in free cash flow. AdaptHealth reduced its debt by $250 million in 2025 and received upgrades to its credit ratings from S&P and Moody’s.

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