AHCO earnings call summary

Prepared Highlights

• Q1 2026 net revenue $819.8M, +5.4% YoY; organic growth 9.1% (500bps from new capitated contract, 400bps from base business) (CEO, CFO)
• Sleep Health net revenue $358.5M, +13.3% YoY; PAP new starts set new record (CEO)
• Respiratory Health net revenue $178.1M, +7.6% YoY; oxygen new starts +12.8% (CEO)
• Diabetes Health net revenue $142.2M, +2.4% YoY; resupply results strong (CEO)
• Wellness at Home net revenue $141.0M; reported -10.3% (due to $35.8M disposed revenue); organic growth 11.0% (CEO)
• Capitated revenue $74.9M, 9.2% of total revenue; capitated membership ~15M, up 7x YoY (CEO, CFO)
• Adjusted EBITDA $121.2M, margin 14.8%; missed guidance by ~$7M due to $12M elevated labor costs ($8M variable, $4M wages/benefits) (CFO, CEO)
• CapEx $121.2M (patient equipment start-up for new contract); FCF -$27.5M (CFO)
• Free cash flow $93.7M, flat YoY (CFO)
• Net debt ~$1.84B; net leverage 3.0x (up from 2.75x Q4 2025) (CFO)
• Official guidance:
  • FY2026: net revenue $3.45B–$3.52B (raised by $10M); adjusted EBITDA $680M–$730M; FCF $175M–$225M (CFO)
  • Q2 2026: net revenue $840M–$860M; adj. EBITDA margin ~19% (CFO)
• Mgmt quotes:
  • "The opening months of 2026 has set the stage for what will be a defining year for AdaptHealth." (CEO)
  • "No HME company had ever taken on a capitated contract of this scale from an incumbent." (CEO)
  • "Currently, up to 80% of individuals with obstructive sleep apnea are undiagnosed." (CEO)
  • "Scheduling that was entirely manual a year ago is now 25% touchless." (CEO)
  • "We are raising our full year net revenue projection by $10 million to $3.45 billion to $3.52 billion." (CFO)

Prepared Metrics

Q&A Batch (1–5 of 5)

Q1 — Pito Chickering

• Topic: 有机增长拆分及EBITDA ramp路径
• Key points:
  • 核心业务（排除新型capitated合同）有机增长约4%