EBITDA GrowthThe stock is not expected to perform well until the company generates EBITDA growth and positive free cash flow, which is projected to occur in late 2025 and mid-2026.
Legal And Referral PressureACHC started seeing volume pressure, driven partly by the overhang of the federal investigation into its billing practices, coupled with negative media reports, which likely negatively impacted referral patterns.
Underperforming FacilitiesA small group of facilities is underperforming, creating a significant EBITDA headwind, and current trends are worse than previously forecasted.