AdaptHealth (NASDAQ:AHCO) Releases Quarterly Earnings Results

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

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 Performance

Shares of NASDAQ AHCO traded down $4.12 during trading hours on Tuesday, reaching $6.71. The stock had a trading volume of 18,975,417 shares, compared to its average volume of 1,456,361. The firm has a 50-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 price-to-earnings ratio of -10.82, a PEG ratio of 0.55 and a beta of 1.47. The company has a current ratio of 0.92, a quick ratio of 0.71 and a debt-to-equity ratio of 1.21. AdaptHealth has a fifty-two week low of $6.14 and a fifty-two week high of $13.43.

Analyst Ratings Changes

Several brokerages recently weighed in on AHCO. Robert W. Baird reduced their target price on shares of AdaptHealth from $18.00 to $15.00 and set an “outperform” rating on the stock in a report on Monday, July 6th. Canaccord Genuity Group increased their target price on AdaptHealth from $14.00 to $16.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. Truist Financial lifted their price target on AdaptHealth from $13.00 to $14.00 and gave the stock a “buy” rating in a report on Monday, April 13th. Wall Street Zen raised AdaptHealth from a “hold” rating to a “buy” rating in a research report on Sunday, June 14th. Finally, Jefferies Financial Group upgraded AdaptHealth from a “hold” rating to a “buy” rating and increased their price objective for the company from $11.00 to $13.00 in a report on Tuesday, July 21st. Seven analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average 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

Insider Buying and Selling

In other AdaptHealth news, insider Russell E. Schuster III sold 11,275 shares of the business’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 sale, the insider owned 136,538 shares in the company, valued at approximately $1,373,572.28. The trade was a 7.63% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.95% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On AdaptHealth

Institutional investors have recently modified their holdings of the business. Corient Private Wealth LLC grew its position in AdaptHealth by 8.6% during the 4th quarter. Corient Private Wealth LLC now owns 22,562 shares of the company’s stock worth $227,000 after purchasing an additional 1,794 shares during the last quarter. Mariner LLC purchased a new stake in shares of AdaptHealth in the fourth quarter valued at about $126,000. Ieq Capital LLC boosted its stake in shares of AdaptHealth by 47.9% during the fourth quarter. Ieq Capital LLC now owns 15,856 shares of the company’s stock worth $158,000 after buying an additional 5,138 shares during the period. EntryPoint Capital LLC boosted its stake in shares of AdaptHealth by 24.6% during the fourth quarter. EntryPoint Capital LLC now owns 15,919 shares of the company’s stock worth $159,000 after buying an additional 3,142 shares during the period. Finally, Vident Advisory LLC boosted its stake in shares of AdaptHealth by 17.9% during the second quarter. Vident Advisory LLC now owns 17,737 shares of the company’s stock worth $167,000 after buying an additional 2,694 shares during the period. 82.67% of the stock is owned by institutional investors and hedge funds.

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.