AHCO · AdaptHealth Corp.

AdaptHealth delivered Q1 2026 results with net revenue of $819.8 million, a 5.4% increase from $777.9 million in the prior year quarter, driven by 9.1% organic growth across all four reportable segments: Sleep Health, Respiratory Health, Diabetes Health, and Wellness at Home. This performance was bolstered by the largest de novo expansion in home medical equipment industry history, securing exclusive provision to over 10 million members of a new strategic partner, though it incurred $12.0 million in elevated labor expenses—mostly variable and expected to normalize by Q2 end. Adjusted EBITDA declined 5.3% to $121.2 million, reflecting these costs, while GAAP net loss widened to $16.0 million from $7.2 million. Cash from operations was $93.7 million, with free cash flow at negative $27.5 million due to expansion-related investments. Management, led by CEO Suzanne Foster, highlighted broad-based growth and scale optimization efforts. The company raised FY2026 net revenue guidance by $10 million to $3.45-$3.52 billion while maintaining Adjusted EBITDA at $680-$730 million and free cash flow at $175-$225 million. Strategic moves included a $1.1 billion senior secured credit facility refinancing in April 2026, reducing debt costs and amortization, and disposing of custom rehabilitation assets to focus on core Sleep and Respiratory Health. Leadership transition saw COO Toby Scott Barnhart's termination without cause on May 4, 2026, with severance per his agreement, and internal promotion of Chief Business Systems Officer Daniel McFadden to COO, with no compensation changes or related-party issues.