AdaptHealth (NASDAQ:AHCO) Issues Earnings Results

AdaptHealth (NASDAQ:AHCO) announced its quarterly earnings data on Tuesday. The company reported ($1.13) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($1.08), FiscalAI reports. AdaptHealth had a negative net margin of 7.07% and a positive return on equity of 3.36%. The business had revenue of $745.65 million during the quarter, compared to analyst estimates of $725.87 million. During the same quarter in the prior year, the company earned $0.16 earnings per share. The company’s quarterly revenue was down 9.1% on a year-over-year basis.

Here are the key takeaways from AdaptHealth’s conference call:

• Third-quarter results exceeded guidance: Revenue rose 10.9% year over year to $745.6 million, organic growth was 12.8%, and adjusted EBITDA was $141.9 million, helped by strong Sleep Health and resupply performance.
• The largest capitated contract improved materially, moving from a negative 4% margin in the second quarter to approximately 10% in the third quarter and a roughly 14% exit run rate. Management expects the contract to reach a 20% margin by the fourth quarter of 2027, excluding any potential pricing adjustment.
• AdaptHealth raised full-year revenue guidance to $2.88 billion-$2.90 billion and adjusted EBITDA guidance to $510 million-$525 million. The company also secured four preferred-provider agreements with large health systems and added two capitated contracts covering approximately 72,000 lives.
• Full-year free cash flow guidance was lowered to $55 million-$80 million, although management attributed the change primarily to pulling forward vendor payments to capture discounts. Net leverage remained approximately 3.05 times, above the company’s 2.5-times target.
• The Diabetes Health sale to Cardinal Health is expected to close in early 2027, with proceeds expected to be directed significantly toward debt reduction. The company is also managing Medline’s bed field action; it expects reimbursement from Medline, but repair and replacement work will continue over multiple quarters and could create short-term costs.

AdaptHealth Stock Up 6.3%

NASDAQ AHCO opened at $6.28 on Wednesday. The business has a fifty day moving average price of $5.90 and a two-hundred day moving average price of $9.12. The stock has a market capitalization of $856.22 million, a PE ratio of 16.89 and a beta of 1.36. The company has a debt-to-equity ratio of 1.37, a current ratio of 1.12 and a quick ratio of 0.98. AdaptHealth has a fifty-two week low of $5.21 and a fifty-two week high of $13.43.

Insider Transactions at AdaptHealth

In related news, Director Kenneth Samet acquired 23,500 shares of the stock in a transaction that occurred on Thursday, August 6th. The stock was acquired at an average cost of $6.38 per share, for a total transaction of $149,930.00. Following the transaction, the director directly owned 48,569 shares in the company, valued at $309,870.22. This trade represents a 93.74% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.95% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of analysts have recently commented on AHCO shares. UBS Group lowered their price target on AdaptHealth from $14.00 to $10.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. Robert W. Baird cut their target price on AdaptHealth from $10.00 to $9.00 and set an “outperform” rating on the stock in a research note on Thursday, September 17th. Weiss Ratings restated a “sell (d)” rating on shares of AdaptHealth in a research note on Wednesday, August 19th. Truist Financial lowered their target price on shares of AdaptHealth from $14.00 to $9.00 and set a “buy” rating on the stock in a report on Wednesday, August 5th. Finally, Canaccord Genuity Group set a $10.00 target price on AdaptHealth in a report on Wednesday, August 5th. 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 data from MarketBeat.com, AdaptHealth currently has a consensus rating of “Moderate Buy” and an average price target of $10.14.

Key Headlines Impacting AdaptHealth

Here are the key news stories impacting AdaptHealth this week:

• Positive Sentiment: AdaptHealth raised its 2026 adjusted EBITDA outlook to $510 million–$525 million and outlined a path to a 20% margin on its largest capitated contract by Q4 2027. The higher forecast and margin target may have helped support the stock. AdaptHealth outlines margin path and raises EBITDA outlook
• Positive Sentiment: Q3 revenue of $745.65 million topped analysts’ $725.87 million estimate, providing a bright spot in the quarterly report. AdaptHealth announces third-quarter 2026 results
• Negative Sentiment: The company reported a Q3 loss of $1.13 per share, far worse than the consensus expected loss of $0.05. Revenue also fell 9.1% year over year, raising concerns about current earnings performance despite the sales beat. AdaptHealth Q3 earnings results

About AdaptHealth

AdaptHealth Corp. (NASDAQ: AHCO) is a provider of home medical equipment, supplies and related healthcare services in the United States. The company helps patients manage chronic conditions and recover from illness or injury outside of traditional healthcare facilities, working with individuals, caregivers, physicians and payers.

Its products and services include respiratory equipment and supplies, oxygen therapy, sleep therapy devices such as continuous positive airway pressure systems, diabetes management products, mobility and accessibility equipment, and other durable medical equipment.