third quarter 2026
Filed Nov 5, 2026Accendra Health reported third-quarter continuing-operations net revenue of $601.8 million, a GAAP loss from continuing operations of $18.0 million, adjusted EBITDA of $47.8 million, and full-year revenue expected at the bottom end of the prior $2.45 billion to $2.55 billion outlook range.
Third-quarter net revenue, adjusted EBITDA, adjusted income from continuing operations and free cash flow were lower than the prior-year period, while the Company guided full-year revenue to the bottom end of its prior range and said adjusted EBITDA could be as much as 30% below the $310 million midpoint of the prior outlook range.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenue, three months ended September 30GAAP | $601.8M | – | – |
| Cost of net revenue, three months ended September 30GAAP | 340,469 | – | – |
| Selling, general and administrative expenses, three months ended September 30GAAP | 249,463 | – | – |
| Acquisition-related charges and intangible amortization, three months ended September 30GAAP | 4,975 | – | – |
| Exit and realignment charges, net, three months ended September 30GAAP | 5,534 | – | – |
| Operating income, three months ended September 30GAAP | 1,334 | – | – |
| Interest expense, net, three months ended September 30GAAP | 37,621 | – | – |
| Loss from continuing operations, net of tax, three months ended September 30GAAP | −$17.96M | – | – |
| Adjusted net loss from continuing operations, three months ended September 30non-GAAP | −$17.99M | – | – |
| Net loss, three months ended September 30GAAP | −$19.70M | – | – |
| Diluted loss per common share from continuing operations, three months ended September 30GAAP | $ (0.23) | – | – |
| Adjusted EPS from continuing operations, three months ended September 30non-GAAP | $ (0.23) | – | – |
| Diluted net loss per common share, three months ended September 30GAAP | $ (0.25) | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | 47,775 | – | – |
| Free cash flow, three months ended September 30non-GAAP | $5.84M | – | – |
| Cash used for operating activities, three months ended September 30GAAP | (17,412) | – | – |
| Cash provided by investing activities, three months ended September 30GAAP | 5,766 | – | – |
| Net revenue, nine months ended September 30GAAP | $1.84B | – | – |
| Operating loss, nine months ended September 30GAAP | (16,691) | – | – |
| Loss from continuing operations, net of tax, nine months ended September 30GAAP | −$113.5M | – | – |
| Adjusted net loss from continuing operations, nine months ended September 30non-GAAP | −$35.41M | – | – |
| Net loss, nine months ended September 30GAAP | −$115.2M | – | – |
| Diluted loss per common share from continuing operations, nine months ended September 30GAAP | $ (1.48) | – | – |
| Adjusted EPS from continuing operations, nine months ended September 30non-GAAP | $ (0.46) | – | – |
| Adjusted EBITDA, nine months ended September 30non-GAAP | 166,232 | – | – |
| Free cash flow, nine months ended September 30non-GAAP | −$21.27M | – | – |
| Cash used for operating activities, nine months ended September 30GAAP | (93,495) | – | – |
| Cash provided by investing activities, nine months ended September 30GAAP | 28,446 | – | – |
| Cash and cash equivalents, September 30GAAP | $26.61M | – | – |
| Total debt, September 30GAAP | $1.75B | – | – |
| Net debt, September 30non-GAAP | $1.73B | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
full year 2026 outlook
- Revenueat the bottom end of the prior outlook range of $2.45 billion to $2.55 billion
- NoteAdjusted EBITDA could be as much as 30% lower than the $310 million midpoint of the prior outlook range.
- NoteNo GAAP guidance or reconciliation of the Company’s adjusted EBITDA guidance is provided.
Capital returns
- Repurchase of common stock, nine months ended September 30, 2026: —.
- Repurchase of common stock, nine months ended September 30, 2025: (6,656).
What drove it
- Results reflect continuing operations, representing what was previously the Patient Direct segment and certain functional operations.
- Exit and realignment charges, net for the three months ended September 30, 2026 primarily included a $(33) million gain on the sale of a non-core asset, $34 million of P&HS Sale related costs, inclusive of reimbursable separation costs of $30 million, $1.4 million of professional fees, and $2.9 million of charges related to IT and other strategic initiatives.
- Exit and realignment charges, net for the nine months ended September 30, 2026 also included a $(51) million gain on sales of patient service equipment in connection with a contract termination with a commercial Payor.
- The Company said it identified four key areas critical to its continued transformation and returning the business to profitability.
Concerns
- Third-quarter net revenue was $601,775 versus $697,264 in the prior-year period.
- Third-quarter adjusted EBITDA was 47,775 versus 92,174 in the prior-year period, and free cash flow was $ 5,841 versus $ 29,222.
- Loss from continuing operations, net of tax was $ (17,961) in the third quarter, compared with $ (5,607) in the prior-year period.
- Interest expense, net was 37,621 in the third quarter, versus 29,029 in the prior-year period.
- Cash and cash equivalents were $ 26,608 at September 30, 2026, compared with $ 281,989 at December 31, 2025.
- The Company stated that its results to date in 2026 had fallen well short of its expectations and potential.
- The Company referenced its ability to cure noncompliance with the New York Stock Exchange listing standards among forward-looking matters.
What to watch
- Execution and details of the value creation plan, which management said would be fully underway over the next several months.
- Delivery of full-year net revenue at the bottom end of the $2.45 billion to $2.55 billion prior outlook range.
- The magnitude of full-year adjusted EBITDA relative to the $310 million midpoint of the prior outlook range.
- Cash generation, patient service equipment capital expenditures, debt and liquidity following September 30, 2026 cash and cash equivalents of $ 26,608.
- Effects of the commercial Payor contract termination, P&HS Sale related costs, strategic initiatives, and turnaround actions.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026: $ 26,608; December 31, 2025: $ 281,989.
- Total debt at September 30, 2026: $ 1,754,966; June 30, 2026: $ 1,718,063; December 31, 2025: $ 2,049,876.
- Net debt at September 30, 2026: $ 1,728,358; June 30, 2026: $ 1,710,412; December 31, 2025: $ 1,767,887.
- Cash used for operating activities was (17,412) for the three months ended September 30, 2026 and (93,495) for the nine months ended September 30, 2026.
- Patient service equipment capital expenditures were (38,509) for the three months ended September 30, 2026 and (123,648) for the nine months ended September 30, 2026.
- Proceeds from sale of patient service equipment were 13,324 for the three months ended September 30, 2026 and 125,042 for the nine months ended September 30, 2026.
Analysis
Accendra Health’s continuing-operations revenue was $601,775 in the third quarter ended September 30, 2026, compared with $697,264 in the prior-year quarter. Operating income was 1,334, versus 26,470, while loss from continuing operations, net of tax was $ (17,961), compared with $ (5,607). The Company reported adjusted net loss from continuing operations of $ (17,992), compared with adjusted net income of $ 19,863, and adjusted EBITDA of 47,775 versus 92,174.
The nine-month figures likewise show weaker continuing-operations performance. Net revenue was $ 1,842,789 compared with $ 2,053,065, operating loss was (16,691) compared with operating income of 6,551, and loss from continuing operations was $ (113,499) compared with $ (93,239). Adjusted EBITDA for the nine-month period was 166,232 versus 284,827, while free cash flow was $ (21,268) versus $ 79,969.
Cash conversion and liquidity are central issues. Cash used for operating activities was (17,412) in the quarter and (93,495) for the nine months. Cash and cash equivalents were $ 26,608 at September 30, 2026, and total debt was $ 1,754,966, with net debt of $ 1,728,358. The Company also reported proceeds from the sale of patient service equipment of 125,042 for the nine months and patient service equipment capital expenditures of (123,648) over that period.
Reported results include meaningful strategic and transaction-related items. Third-quarter exit and realignment charges, net of 5,534 primarily included a $(33) million gain from the sale of a non-core asset, P&HS Sale related costs, professional fees, and IT and other strategic initiatives. Management said it is taking turnaround actions and expects its value creation plan to be fully underway over the next several months.
The full-year outlook points to a constrained finish to 2026. The Company expects net revenue at the bottom end of the prior $2.45 billion to $2.55 billion range and said adjusted EBITDA could be as much as 30% lower than the $310 million midpoint of the prior range. No GAAP adjusted EBITDA outlook or reconciliation was provided. The key reported items to monitor are implementation of the value creation plan, operating cash flow, debt and liquidity, and the effect of the commercial Payor contract termination and related patient service equipment sales.
Management, verbatim
Over the several weeks since I started, a number of themes have become clear to me. We have strong brands, favorable end markets, and a teammate population dedicated to our mission, Bringing Care To Life. It is equally clear to me that our results to date in 2026 have fallen well short of our expectations and potential. We have identified four key areas which are critical to our continued transformation and returning the business to the kind of profitability that our shareholders should expect
Kenny Gardner-Smith, President & Chief Executive Officer, Accendra Health
We are already taking action on our turnaround, and, over the next several months, we will have our value creation plan fully underway. The value creation plan is the cornerstone of returning the business to its potential, and we look forward to sharing details with all stakeholders in the coming months,
Kenny Gardner-Smith, President & Chief Executive Officer, Accendra Health
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Segment revenue, segment profitability, and segment growth metrics were not reported for the continuing-operations business.
- A prior-quarter comparison was not reported for revenue, operating income, earnings, adjusted EBITDA, free cash flow, or cash flow metrics.
- Explicit year-over-year percentage changes were not reported for the financial metrics.
- Full-year 2026 gross margin, operating expenses, tax rate, EPS, free cash flow, cash flow, and GAAP earnings guidance were not reported.
- Dividend information was not reported.
- A previous-release outlook section was not provided, so no actual-versus-prior-guidance comparison is included.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.