ACH · Accendra Health, Inc.

Accendra Health's Q1 2026 results reflect its transformation into a pure-play home-based care company following the divestiture of the Products & Healthcare Services (P&HS) business, completed December 31, 2025. Continuing operations net revenue declined 6.8% YoY to $627.8 million, driven by the absence of P&HS and impacts from a terminated large commercial payor contract, partially offset by volume growth. GAAP operating income was $17.1 million, down slightly from $19.8 million YoY, with higher interest expense of $32.3 million contributing to a $6.5 million net loss. Adjusted EBITDA fell to $58.4 million from $96.0 million, reflecting manufacturer cost increases, inflation, and collection rate pressures, net of cost reductions. CEO Edward Pesicka noted results aligned with expectations, with transition services from the Owens & Minor divestiture on track. Free cash flow was negative $2.0 million versus positive $35.6 million YoY, impacted by one-time items like IRS payments and divestiture fees, excluded from normalized views. Balance sheet shows cash up to $336.9 million from $282.0 million at year-end, with total debt at $2.1 billion. The centerpiece is a >$1.5 billion balance sheet optimization with existing creditors: amending/extending RCF to $300M due 2030, refinancing $326M 2027 Term Loan A with 9% 1L notes due 2032, exchanging 2029/2030 notes into 9%/9.75% 1L/2L notes due 2032/2033, reducing funded debt up to $370M via $115M discount capture. This extends weighted average life from 2.7 to 5.5 years, pays off 2027 maturities, and enhances liquidity. The company affirmed FY2026 net revenue and adjusted EBITDA guidance, signaling confidence in stabilized operations and post-investment earnings power.