AdaptHealth (AHCO)
NASDAQ:AHCO
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AdaptHealth
(NASDAQ:AHCO)
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Rating:61Neutral
Price Target:
$13.00
▲(2.69% Upside)
Action:ReiteratedDate:04/13/26
The score is held back mainly by weak and volatile financial performance (TTM revenue drop and net loss, with leverage still elevated), partially offset by strong cash flow generation. Technicals are supportive with positive momentum and price above key moving averages, while the latest earnings call points to improving 2026 growth and margins led by the capitated contract but with near-term cash flow and segment (Diabetes) risks. Valuation remains unattractive on a negative P/E, and the new credit facility modestly strengthens liquidity and flexibility.
Positive Factors
Strong cash generation
Consistent, sizable operating cash flow and positive free cash flow provide durable internal funding for capex, working capital and debt reduction. This cash conversion supports the company’s ability to invest in infrastructure and absorb onboarding costs while improving balance sheet flexibility over the medium term.
Negative Factors
Volatile revenue and profitability
Large swings in revenue and shifts to net losses make cash flow and earnings less predictable, complicating capital allocation and investor visibility. Structural volatility increases sensitivity to reimbursement shifts or cyclical demand, challenging sustainable margin improvement despite periodic EBITDA resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, sizable operating cash flow and positive free cash flow provide durable internal funding for capex, working capital and debt reduction. This cash conversion supports the company’s ability to invest in infrastructure and absorb onboarding costs while improving balance sheet flexibility over the medium term.
Read all positive factors
AdaptHealth (AHCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.72B
Dividend YieldN/A
Average Volume (3M)1.46M
Price to Earnings (P/E)―
Beta (1Y)0.48
Revenue Growth-0.23%
EPS GrowthN/A
CountryUS
Employees10,500
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.23
Shares Outstanding135,914,810
10 Day Avg. Volume1,013,490
30 Day Avg. Volume1,462,431
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)0.89
Price to Sales (P/S)0.41
P/FCF Ratio6.14
Enterprise Value/Market Cap2.05
Enterprise Value/Revenue1.24
Enterprise Value/Gross Profit19.20
Enterprise Value/Ebitda7.27
Forecast
1Y Price Target
$12.63Price Target Upside-0.24% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.99
Revenue Forecast (FY)$3.47B
AdaptHealth Business Overview & Revenue Model
Company Description
AdaptHealth Corp., together with its subsidiaries, provides home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, supplies, and related services, such as C...
How the Company Makes Money
AdaptHealth primarily makes money by providing home medical equipment, consumable supplies, and related services that are reimbursed by third-party payors. A major component of its revenue model is ongoing resupply and recurring utilization tied t...
AdaptHealth Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down income from various business segments, indicating which parts of the company are generating the most revenue and where growth opportunities or challenges may exist.
Breaks down income from various business segments, indicating which parts of the company are generating the most revenue and where growth opportunities or challenges may exist.
Data provided by:
The Fly
The FlyAdaptHealth Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presents a largely positive outlook driven by operational improvements, record patient census in key segments, strong adjusted EBITDA and free cash flow performance, meaningful debt reduction, credit upgrades, and a major capitated contract with successful early onboarding and clear revenue/margin upside in 2026. Offsetting risks include reported revenue declines due to dispositions, weakness and a goodwill impairment in the Diabetes segment, a one-time legal settlement and accelerated onboarding costs that pressure near-term working capital and leverage, and anticipated negative free cash flow and margin drag in Q1 2026 as the capitated contract ramps. Overall, the positive operational momentum, cash generation, strategic contract win and upwardly revised 2026 guidance outweigh the near-term financial headwinds and one-time charges.Positive Updates
Revenue Beat and Organic Growth
Full year 2025 net revenue of $3.245B and Q4 revenue of $846.3M both exceeded the midpoint of guidance; organic revenue growth was 1.7% for both the full year and Q4.
Negative Updates
Reported Revenue Slightly Down on a Reported Basis
Full year 2025 net revenue decreased 0.5% YoY on a reported basis; Q4 net revenue decreased 1.2% YoY on a reported basis (though organic +1.7%). Dispositions reduced FY revenue by $92.4M.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Beat and Organic Growth
Full year 2025 net revenue of $3.245B and Q4 revenue of $846.3M both exceeded the midpoint of guidance; organic revenue growth was 1.7% for both the full year and Q4.
Read all positive updates
Company Guidance
AdaptHealth guided 2026 net revenue of $3.44–3.51 billion (6–8% growth vs. 2025, ~7% at the midpoint), adjusted EBITDA of $680–730 million (midpoint implying ~20.3% adjusted EBITDA margin, ~1 ppt improvement vs. 2025) and free cash flow of $175–225 million; management expects organic growth of 7.5–9.5% partially offset by ~1.5% net revenue compression from acquisitions/dispositions, with 5–6% of 2026 growth attributable to the new capitated agreement and 2.5–3.5% from the rest of the business. They forecast Q1 revenue +2–3% year‑over‑year, a Q1 adjusted EBITDA margin of ~16% (carrying upfront capitated costs), Q1 free cash flow of negative $20–40 million, and a quarter‑by‑quarter capitated ramp that adds “a few points” each quarter to reach low‑double‑digit growth by Q4; roughly one‑third of full‑year free cash flow is expected in the first half. CapEx was ~12.3% of revenue in Q4 and management indicated that run‑rate is broadly sustainable as they absorb infrastructure costs.AdaptHealth Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
52
Neutral
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.24B | 3.26B | 3.20B | 2.97B | 2.45B |
| Gross Profit | 568.56M | 681.09M | 681.77M | 417.43M | 445.61M |
| EBITDA | 503.64M | 628.02M | -171.09M | 630.76M | 544.21M |
| Net Income | -70.79M | 90.42M | -678.89M | 69.32M | 156.18M |
Balance Sheet | |||||
| Total Assets | 4.32B | 4.49B | 4.51B | 5.22B | 5.25B |
| Cash, Cash Equivalents and Short-Term Investments | 106.14M | 109.75M | 77.13M | 46.27M | 149.63M |
| Total Debt | 1.90B | 2.13B | 2.29B | 2.33B | 2.37B |
| Total Liabilities | 2.79B | 2.91B | 3.04B | 3.06B | 3.18B |
| Stockholders Equity | 1.52B | 1.57B | 1.46B | 2.15B | 2.06B |
Cash Flow | |||||
| Free Cash Flow | 219.38M | 235.78M | 143.20M | -17.56M | 72.37M |
| Operating Cash Flow | 601.77M | 541.84M | 480.67M | 373.87M | 275.68M |
| Investing Cash Flow | -303.19M | -310.27M | -357.28M | -411.17M | -1.82B |
| Financing Cash Flow | -302.19M | -198.95M | -92.53M | -66.05M | 1.60B |
AdaptHealth Technical Analysis
Positive
12.66
Price Trends
10.72
Positive
10.40
Positive
9.83
Positive
Market Momentum
0.60
Negative
71.02
Negative
79.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AHCO, the sentiment is Positive. The current price of 12.66 is above the 20-day moving average (MA) of 11.82, above the 50-day MA of 10.72, and above the 200-day MA of 9.83, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 71.02 is Negative, neither overbought nor oversold. The STOCH value of 79.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AHCO.
AdaptHealth Risk Analysis
AdaptHealth disclosed 47 risk factors in its most recent earnings report. AdaptHealth reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AdaptHealth Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.51B | 25.04 | 17.36% | ― | 29.47% | 23.24% | |
61 Neutral | $1.72B | -3.28 | -4.63% | ― | -0.23% | ― | |
56 Neutral | $1.22B | 26.78 | 4.68% | 2.02% | 4.69% | -51.57% | |
56 Neutral | $1.80B | -95.98 | -13.44% | ― | 18.72% | 85.77% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $859.65M | -1.85 | -39.90% | ― | 4.99% | -7151.40% | |
45 Neutral | $1.42B | -7.22 | -141.98% | ― | 17.87% | -57.03% |
* Healthcare Sector Average
AHCO
AdaptHealth
12.66
5.33
72.71%
CNMD
Conmed
39.08
-8.23
-17.39%
IART
Integra Lifesciences
11.14
-4.05
-26.66%
UFPT
Ufp Technologies
202.38
-8.25
-3.92%
TNDM
Tandem Diabetes Care
20.61
4.22
25.75%
AXGN
AxoGen
38.50
23.32
153.62%
AdaptHealth Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
AdaptHealth Boosts Liquidity With New $1.1 Billion Credit Facility
Positive
Apr 13, 2026
On April 10, 2026, AdaptHealth LLC, a subsidiary of AdaptHealth Corp., entered into a new senior secured credit agreement totaling $1.1 billion, comprising a $325 million term loan, a $325 million delayed-draw term loan and a $450 million revolvin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.