The earnings call presented a mixture of positive developments and challenges. The announcement of a major new contract and improvements in key segments are significant positives. However, these are offset by revenue declines, reduced EBITDA guidance, and potential future challenges from CMS rule changes.

Company Guidance -

Q3 2025

In the second quarter of 2025, AdaptHealth reported revenue of $800.4 million, with an adjusted EBITDA of $155.5 million and an adjusted EBITDA margin of 19.4%. The company achieved a free cash flow of $73.3 million, exceeding expectations and aligning with its full-year guidance. AdaptHealth highlighted a new five-year contract worth over $1 billion, which will cover medical equipment and supplies for a major healthcare system, expected to contribute at least $200 million in annual revenue once fully ramped. The company continued to reduce its net debt, which stood at $1.8 billion by the quarter's end, with a net leverage ratio of 2.81x. Despite updating its 2025 adjusted EBITDA guidance to a range of $642 million to $682 million, it maintained its free cash flow guidance between $170 million and $190 million. The company also focused on non-acquired growth, particularly in its Respiratory and Sleep Health segments, and implemented technology initiatives to enhance profitability and operational efficiency.

New Capitated Agreement

AdaptHealth signed a definitive agreement to become the exclusive provider of home medical equipment for a major national healthcare system, potentially generating over $1 billion in revenue over five years. The deal will elevate capitated revenue to at least 10% of total revenue.

Improvement in Sleep and Respiratory Segments

Sleep Health segment net revenue increased by 0.9% to $334.7 million, and Respiratory Health segment net revenue increased by 5.6% to $170.5 million. Sleep Health starts were 128,000, the highest in two years, and Respiratory Health set a new second quarter record with an oxygen census of 329,000 patients.

Debt Reduction and Financial Health

AdaptHealth reduced its debt by $150 million in Q2 2025 and by $345 million over the last six quarters. The company's net leverage ratio is 2.81x, tracking towards a target of 2.5x.

Technological Advancements

The company is leveraging AI and technology to improve efficiency in order intake, call handling, and patient self-service, which is expected to improve productivity and reduce administrative burdens.

AdaptHealth (AHCO) Earnings, Revenues Date & History

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AHCO Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 11, 2025	2025 (Q3)	0.26 / -	0.224	―	―	―
Aug 05, 2025	2025 (Q2)	0.16 / 0.22	0.216	0.93% (<+0.01)
May 06, 2025	2025 (Q1)	0.05 / 0.03	0.093	-70.97% (-0.07)
Feb 25, 2025	2024 (Q4)	0.28 / 0.43	0.556	-23.20% (-0.13)	―
Nov 05, 2024	2024 (Q3)	0.19 / 0.22	0.415	-46.02% (-0.19)	―
Aug 06, 2024	2024 (Q2)	0.19 / 0.22	0.228	-5.26% (-0.01)	―
May 07, 2024	2024 (Q1)	0.05 / 0.09	0.051	82.35% (+0.04)	―
Feb 27, 2024	2023 (Q4)	0.19 / 0.56	0.054	929.63% (+0.50)	―
Nov 07, 2023	2023 (Q3)	0.20 / 0.41	0.22	88.64% (+0.19)
Aug 08, 2023	2023 (Q2)	0.13 / 0.23	0.182	25.27% (+0.05)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

AHCO Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 05, 2025	$9.11	$10.11	+10.98%
May 06, 2025	$8.70	$8.85	+1.72%
Feb 25, 2025	$8.55	$10.64	+24.44%
Nov 05, 2024	$10.15	$9.18	-9.56%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.