Second Quarter 2026
Filed Aug 10, 2026Accendra Health Reports Second Quarter 2026 Financial Results Reduced Total Debt By $385 Million In Second Quarter CEO Ed Pesicka Announces Intention To Retire By The End of 2026
Second-quarter net revenue, adjusted EBITDA, adjusted income from continuing operations, and free cash flow were lower than the prior-year period, while the Company reported a GAAP loss from continuing operations and negative free cash flow. The Company highlighted debt reduction, operating-expense actions, and growth initiatives expected to emerge in late 2026 and accelerate in 2027.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenueGAAP | $613.2 million | – | – |
| Cost of net revenueGAAP | $ 349,827 | – | – |
| Selling, general and administrative expensesGAAP | $ 243,560 | – | – |
| Transaction breakage feeGAAP | — | – | – |
| Acquisition-related charges and intangible amortizationGAAP | $ 29,229 | – | – |
| Exit and realignment charges, netGAAP | $ 25,768 | – | – |
| Total operating costs and expensesGAAP | $ 648,384 | – | – |
| Operating lossGAAP | $ (35,150) | – | – |
| Interest expense, netGAAP | $ 34,539 | – | – |
| Loss on modification and extinguishment of debtGAAP | $ 17,296 | – | – |
| Transaction financing fees, netGAAP | — | – | – |
| Other expense, netGAAP | $ 643 | – | – |
| Loss from continuing operations before income taxesGAAP | $ (87,628) | – | – |
| Income tax provision (benefit)GAAP | $ 1,442 | – | – |
| Loss from continuing operations, net of taxGAAP | $ (89.1) million | – | – |
| Loss from discontinued operations, net of taxGAAP | — | – | – |
| Net lossGAAP | $ (89,070) | – | – |
| Basic loss per common share, loss from continuing operations, net of taxGAAP | $ (1.16) | – | – |
| Basic net loss per common shareGAAP | $ (1.16) | – | – |
| Diluted loss per common share, loss from continuing operations, net of taxGAAP | $ (1.16) | – | – |
| Diluted net loss per common shareGAAP | $ (1.16) | – | – |
| Adjusted (loss) income from continuing operations, net of taxnon-GAAP | $ (14.3) million | – | – |
| Adjusted EBITDAnon-GAAP | $ 60.1 million | – | – |
| Free cash flownon-GAAP | $ (25.1) million | – | – |
| Adjusted (loss) income from continuing operations, net of tax, per common sharenon-GAAP | $ (0.19) | – | – |
| Six months ended June 30 net revenueGAAP | $1,241.0 million | – | – |
| Six months ended June 30 loss from continuing operations, net of taxGAAP | $ (95.5) million | – | – |
| Six months ended June 30 adjusted (loss) income from continuing operations, net of taxnon-GAAP | $ (17.4) million | – | – |
| Six months ended June 30 adjusted EBITDAnon-GAAP | $ 118.5 million | – | – |
| Six months ended June 30 free cash flownon-GAAP | $ (27.1) million | – | – |
| Six months ended June 30 loss from continuing operations, net of tax, per common shareGAAP | $ (1.25) | – | – |
| Six months ended June 30 adjusted (loss) income from continuing operations, net of tax, per common sharenon-GAAP | $ (0.23) | – | – |
full year 2026 outlook
- Revenue$2.45 billion - $2.55 billion
- NoteAdjusted EBITDA: $300 million - $320 million
- NoteFree cash flow: breakeven to slightly positive
What drove it
- The Company stated that it put a large commercial payor exit behind it.
- In the last six months, the Company stated it eliminated well over $125 million of annualized operating expense directly associated with the large commercial payor.
- Management cited the nationwide rollout of the Sleep Center of Excellence, new commercial agreements, and an increased emphasis on expense rationalization.
- Management said key growth initiatives and new strategic partnerships have topline and bottom line expansion opportunities that will begin to emerge in late 2026 and accelerate in 2027.
- The Company stated that its balance sheet optimization transaction closed in June and comprehensively reset its debt maturity profile.
Concerns
- Net revenue was $613.2 million in the second quarter of 2026 versus $681.9 million in the second quarter of 2025.
- Adjusted EBITDA was $60.1 million versus $96.6 million in the prior-year quarter.
- Adjusted (loss) income from continuing operations, net of tax was $ (14.3) million versus adjusted income of $20.5 million in the prior-year quarter.
- Free cash flow was $ (25.1) million versus $15.2 million in the prior-year quarter.
- Loss from continuing operations, net of tax was $ (89.1) million, compared with $ (83.8) million in the prior-year quarter.
- Interest expense, net was $ 34,539 versus $ 26,009 in the prior-year quarter.
- Cash and cash equivalents were $ 7,651 as of June 30, 2026.
- President and Chief Executive Officer Edward A. Pesicka intends to retire from his role by the end of 2026 and plans to step down from the Board of Directors before the year's end.
What to watch
- Execution following the large commercial payor exit and the stated operating-expense elimination.
- The nationwide rollout of the Sleep Center of Excellence and the timing of benefits from new commercial agreements and strategic partnerships.
- Progress toward the full-year 2026 outlook of $2.45 billion - $2.55 billion in revenue, $300 million - $320 million in adjusted EBITDA, and free cash flow of breakeven to slightly positive.
- Free cash flow performance after $ (25.1) million in the second quarter.
- Debt maturity-profile execution following the June balance sheet optimization transaction.
- The Board's selection of a successor to Edward A. Pesicka.
Balance sheet and cash flow
- Cash and cash equivalents: $ 7,651 as of June 30, 2026; $ 281,989 as of December 31, 2025.
- Accounts receivable, net: $ 120,082 as of June 30, 2026; $ 95,907 as of December 31, 2025.
- Inventories, net: $ 73,345 as of June 30, 2026; $ 74,435 as of December 31, 2025.
- Total current assets: $ 271,449 as of June 30, 2026; $ 547,871 as of December 31, 2025.
- Current portion of long-term debt: — as of June 30, 2026; $ 250,000 as of December 31, 2025.
- Long-term debt, excluding current portion: $ 1,718,063 as of June 30, 2026; $ 1,799,876 as of December 31, 2025.
- Total liabilities: $ 2,658,350 as of June 30, 2026; $ 2,912,739 as of December 31, 2025.
- Total deficit: $ (550,938) as of June 30, 2026; $ (460,978) as of December 31, 2025.
- The Company reported that it reduced outstanding debt by $385 million in the second quarter.
- Free cash flow: $ (25.1) million for the second quarter of 2026; $ 15.2 million for the second quarter of 2025.
Analysis
Accendra reported second-quarter net revenue of $613.2 million, compared with $681.9 million in the second quarter of 2025. The release attributes the operating reset to progress toward the complete separation from Owens & Minor and to placing a large commercial payor exit behind the Company. Management stated that it eliminated well over $125 million of annualized operating expense directly associated with that payor over the last six months.
Profitability remained under pressure. The Company reported a GAAP loss from continuing operations, net of tax of $ (89.1) million, compared with $ (83.8) million a year earlier, and adjusted (loss) income from continuing operations, net of tax of $ (14.3) million, compared with adjusted income of $20.5 million. Adjusted EBITDA was $60.1 million versus $96.6 million. The operating statement also reported $ 25,768 of exit and realignment charges, $ 29,229 of acquisition-related charges and intangible amortization, $ 17,296 of loss on modification and extinguishment of debt, and $ 34,539 of interest expense, net.
Cash generation was negative in the quarter, with non-GAAP free cash flow of $ (25.1) million compared with $15.2 million in the prior-year period. Cash and cash equivalents were $ 7,651 at June 30, 2026. Management emphasized balance sheet actions, reporting that it reduced outstanding debt by $385 million during the second quarter and closed a balance sheet optimization transaction in June. The balance sheet showed no current portion of long-term debt at June 30, 2026 and long-term debt, excluding current portion, of $ 1,718,063.
The Company updated full-year 2026 continuing-operations guidance to revenue of $2.45 billion - $2.55 billion, adjusted EBITDA of $300 million - $320 million, and free cash flow of breakeven to slightly positive. Management identified the Sleep Center of Excellence rollout, new commercial agreements, strategic partnerships, and expense rationalization as initiatives with expansion opportunities beginning in late 2026 and accelerating in 2027. The release also introduces a leadership transition: Edward A. Pesicka intends to retire as President and Chief Executive Officer by the end of 2026 and to leave the Board before year-end.
Management, verbatim
Throughout the second quarter, we moved farther along toward the complete separation from Owens & Minor while also putting a large commercial payor exit behind us. In the last six months, we have eliminated well over $125 million of annualized operating expense directly associated with this large commercial payor, and we are now beginning to reset our business for accelerated future growth. Additionally, we reduced outstanding debt by $385 million and comprehensively reset our debt maturity profile through our balance sheet optimization transaction which closed in June.
Edward A. Pesicka, President & Chief Executive Officer
We also saw continued progress on key growth initiatives and new strategic partnerships that have both topline and bottom line expansion opportunities that will begin to emerge in late 2026 and accelerate in 2027. These include the nationwide rollout of the Sleep Center of Excellence, new commercial agreements, and an increased emphasis on expense rationalization.
Edward A. Pesicka, President & Chief Executive Officer
Not in the filing
stated, not guessed- Reported gross profit and gross margin for the second quarter of 2026.
- Reported operating margin, net income margin, adjusted EBITDA margin, and free cash flow margin.
- Percentage year-over-year and quarter-over-quarter changes for reported metrics.
- Prior-quarter figures for second-quarter operating metrics.
- Revenue by segment and segment-level drivers.
- GAAP operating cash flow, capital expenditures, and a cash flow statement.
- Share repurchases, dividends, and other capital-return figures.
- Full-year 2026 guidance for gross margin, operating expenses, tax rate, GAAP earnings, and GAAP cash flow.
- Previous-quarter outlook figures needed to compare actual results with prior guidance.
- Reconciliations for adjusted EBITDA, adjusted income from continuing operations, and free cash flow, which were not included in the provided filing text.
- Details of total debt beyond the reported current portion of long-term debt and long-term debt, excluding current portion.
AlphAI analysis generated 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 cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.