AdaptHealth (NASDAQ:AHCO) Issues Quarterly Earnings Results, Misses Expectations By $1.16 EPS

AdaptHealth (NASDAQ:AHCO) issued its quarterly earnings data on Tuesday. The company reported ($0.99) EPS for the quarter, missing the consensus estimate of $0.17 by ($1.16), Briefing.com reports. AdaptHealth had a positive return on equity of 2.76% and a negative net margin of 2.42%.The business had revenue of $600.38 million for the quarter, compared to analyst estimates of $846.77 million. During the same period in the previous year, the business posted $0.10 EPS. The business’s quarterly revenue was down 7.5% compared to the same quarter last year.

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 Stock Down 38.0%

Shares of NASDAQ:AHCO traded down $4.12 during midday trading on Tuesday, reaching $6.71. The company had a trading volume of 18,979,247 shares, compared to its average volume of 1,456,361. AdaptHealth has a 1-year low of $6.14 and a 1-year high of $13.43. The stock 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. The business’s 50 day moving average price is $10.29 and its 200 day moving average price is $10.68.

Analyst Ratings Changes

A number of analysts recently issued reports on AHCO shares. UBS Group lowered their target price on AdaptHealth from $15.00 to $14.00 and set a “buy” rating for the company in a research note on Wednesday, May 6th. Jefferies Financial Group raised shares of AdaptHealth from a “hold” rating to a “buy” rating and lifted their price target for the company from $11.00 to $13.00 in a research note on Tuesday, July 21st. Weiss Ratings reissued a “sell (d)” rating on shares of AdaptHealth in a research report on Friday, May 22nd. Canaccord Genuity Group raised their price objective on shares of AdaptHealth from $14.00 to $16.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Finally, Wall Street Zen raised shares of AdaptHealth from a “hold” rating to a “buy” rating in a research report on Sunday, June 14th. Seven research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $14.14.

Key AdaptHealth News

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

Insiders Place Their Bets

In other AdaptHealth news, insider Russell E. Schuster III sold 11,275 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $10.06, for a total value of $113,426.50. Following the completion of the transaction, the insider directly owned 136,538 shares in the company, valued at $1,373,572.28. This trade represents a 7.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.95% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On AdaptHealth

Several large investors have recently made changes to their positions in the stock. Corient Private Wealth LLC increased its holdings 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 last quarter. Mariner LLC bought a new position in shares of AdaptHealth in the 4th quarter valued at about $126,000. Ieq Capital LLC grew its position in shares of AdaptHealth by 47.9% in the 4th quarter. Ieq Capital LLC now owns 15,856 shares of the company’s stock valued at $158,000 after acquiring an additional 5,138 shares during the period. EntryPoint Capital LLC increased its stake in shares of AdaptHealth by 24.6% during the 4th quarter. EntryPoint Capital LLC now owns 15,919 shares of the company’s stock worth $159,000 after purchasing an additional 3,142 shares during the last quarter. Finally, Vident Advisory LLC increased its stake in shares of AdaptHealth by 17.9% during the 2nd quarter. Vident Advisory LLC now owns 17,737 shares of the company’s stock worth $167,000 after purchasing an additional 2,694 shares during the last quarter. Institutional investors and hedge funds own 82.67% of the company’s stock.

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.