0001193125-26-213157
SEC filingSegment data reveals Care Partners revenue of $908.8M; total debt of $1.04B and VIE assets of $1.32B as of March 31, 2026.
Cash and cash equivalents were $478.4M at March 31, 2026, up from $429.5M at December 31, 2025. Total assets were $2.36B. Total debt stood at $1.04B, including $918.3M in Term Loans and $122.0M under the Revolver Loan. Net debt (cash less total debt) was $(561.9)M. The Company’s effective interest rate on total debt averaged 5.66% for Q1 2026. Goodwill increased $9.5M to $874.8M due to measurement period adjustments related to the Prospect acquisition. VIEs represented a significant portion: total VIE assets were $1.49B (including $150.4M in affiliates eliminated on consolidation) and VIE liabilities were $394.5M.
Purchase commitments are primarily debt obligations under the Second Amended and Restated Credit Agreement. Future maturities as of March 31, 2026: $47.9M due within one year, $137.6M in 1–3 years (2027+2028), and $866.7M beyond 3 years (2029+2030). Additional commitments include irrevocable standby letters of credit totaling $27.5M ($25.4M under the credit facility + $2.1M from affiliated IPAs) and surety bonds of $46.7M. Operating lease obligations total $46.5M in future minimum payments ($7.6M in remainder of 2026, $8.7M in 2027, $7.8M in 2028, $6.4M in 2029, $5.2M in 2030, and $10.9M thereafter).
During Q1 2026, the Company repurchased 124,747 shares of its common stock for $2.8M. No new authorization was announced. Dividends were minimal at $0.1M. No distributions to APC common shareholders were made. Debt change: net reduction of $12.0M (repayments of $12.0M, no new borrowings). Capital expenditures were $4.0M. Stock-based compensation was $9.9M.
Three reportable segments: Care Partners (Q1 2026 total revenue $909.7M, operating income $39.5M, margin 4.3%), Care Delivery ($85.1M, loss of $3.0M), and Care Enablement ($87.7M, income $20.2M, margin 23.0%). Revenue disaggregated by payer type: Commercial $85.4M, Medicare $608.1M, Medicaid $228.6M, Other third parties $43.0M. Major payers: Payer A contributed 20.9% of total revenue (Q1 2026), Payers B at 13.5%. No geographic mix disclosed.
Operating cash flow of $68.1M substantially exceeded net income of $13.1M, reflecting strong cash conversion. Key non-cash add-backs included $15.5M depreciation and amortization, $9.9M share-based compensation, and $1.1M amortization of debt issuance costs. A significant working capital inflow of $26.5M (net of acquisitions) drove the outperformance, partially offset by a $2.6M 'Other' adjustment. Capital expenditure intensity was low at $4.0M, representing about 6% of CFO. No free cash flow was stated; however, CFO covered capital returns ($2.9M buybacks + $0.1M dividends) by a wide margin. Financing activities included $12.0M debt repayment and no new borrowings. An anomaly: the substantial working capital swing ($26.5M net inflow vs. $(8.0)M prior year) warrants investigation, as it may reflect changes in payables or receivables management. Cash paid for interest increased to $14.7M from $7.4M, while taxes paid were minimal at $4.3M. Overall, cash generation quality appears robust.