second quarter 2026
Filed Aug 4, 2026AdaptHealth reported 12.7% net revenue growth and 15.9% organic revenue growth, while revising fiscal year 2026 guidance amid costs from a West Coast capitated-contract transition and a manufacturer price increase.
Revenue and organic growth were strong, but Adjusted EBITDA declined, the Company recorded a net loss largely tied to a goodwill write down, year-to-date free cash flow was negative, and fiscal year 2026 guidance was revised.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenueGAAP | $740.3 million | – | 12.7% |
| Organic revenue growthnon-GAAP | 15.9% | – | – |
| Net loss attributable to AdaptHealth Corp.GAAP | $145.3 million | – | – |
| Pre-tax write down of goodwillGAAP | $144.2 million | – | – |
| Adjusted EBITDAnon-GAAP | $132.0 million | – | decrease of 3.2% |
| Cash flow from operationsGAAP | $239.0 million year-to-date 2026 | – | a decrease |
| Free cash flownon-GAAP | negative $48.4 million year-to-date 2026 | – | – |
fiscal year 2026 outlook
- Revenue$2.85 billion to $2.89 billion
- NoteAdjusted EBITDA of $490 million to $520 million
- NoteFree cash flow of $80 million to $120 million
Capital returns
- Subsequent to quarter-end, redeemed the Company’s 6.125% Senior Notes due 2028 with the proceeds from the $325 million delayed draw term loan secured as part of the April 2026 refinancing.
What drove it
- Completed the first full quarter under the Company's exclusive capitated agreement with a large national integrated delivery network, with the contract now fully at run-rate.
- Signed a new capitated agreement with Humana OneHome in South Florida and Texas and completed the transition of approximately 478,000 members.
- Organic revenue growth was reported across each of the Company’s reportable segments.
- Registered myAPP users grew to more than 512,000, up 56% from year end 2025.
- Completed a workforce restructuring generating $19 million in annualized savings.
Concerns
- The complexity of the West Coast capitated-partnership transition impacted margins.
- An unexpected price increase from one of the Company’s manufacturers added cost pressure.
- Adjusted EBITDA decreased 3.2% to $132.0 million.
- Net loss attributable to AdaptHealth Corp. was $145.3 million, largely resulting from a $144.2 million pre-tax write down of goodwill.
- Free cash flow was negative $48.4 million year-to-date 2026.
- The revised Adjusted EBITDA guidance includes a $100 million impact from reporting the Diabetes Health business as discontinued operations, a $55 million impact related to the West Coast capitated contract, a $30 million impact from a manufacturer price increase, and a $15 million impact from other portfolio actions.
What to watch
- Completion of the proposed sale of the Diabetes Health business for $235.0 million in cash, subject to customary purchase price adjustments.
- The Company’s ability to eliminate roughly half of the $60 million of previously allocated corporate overhead that will remain in continuing operations within 12 months thereafter.
- Margin effects from the West Coast capitated contract as it operates at full scale.
- Execution of the workforce restructuring and the stated $19 million in annualized savings.
- The joint venture combining the Company’s eCommerce asset with a leading eCommerce sleep retailer and adding a home sleep test capability.
Balance sheet and cash flow
- Cash flow from operations was $239.0 million year-to-date 2026, compared to $257.5 million during the comparable period in 2025.
- Free cash flow was negative $48.4 million year-to-date 2026, compared to $73.3 million during the comparable period in 2025.
- In July 2026, AdaptHealth entered into a definitive agreement to sell the Diabetes Health business for $235.0 million in cash, subject to customary purchase price adjustments.
- The Company redeemed its 6.125% Senior Notes due 2028 with proceeds from the $325 million delayed draw term loan.
Analysis
AdaptHealth reported net revenue of $740.3 million, compared to $657.1 million, with 12.7% growth and organic revenue growth of 15.9%. Management stated that organic growth occurred across each reportable segment. The quarter included the first full quarter of the Company’s exclusive capitated agreement with a large national integrated delivery network, which was described as fully at run-rate, and a new Humana OneHome capitated agreement in South Florida and Texas involving approximately 478,000 members.
Profitability did not keep pace with revenue growth. Adjusted EBITDA was $132.0 million, compared to $136.4 million, a decrease of 3.2%. Management attributed pressure to the complexity of the West Coast capitated-partnership transition and an unexpected manufacturer price increase. The Company also completed a workforce restructuring that it said will generate $19 million in annualized savings.
GAAP results were affected by a $144.2 million pre-tax write down of goodwill. Net loss attributable to AdaptHealth Corp. was $145.3 million, compared to net income of $4.2 million. Cash generation also weakened on a year-to-date basis: cash flow from operations was $239.0 million year-to-date 2026 versus $257.5 million in the comparable 2025 period, while free cash flow was negative $48.4 million versus $73.3 million.
The Company is reshaping the portfolio around Sleep Health, Respiratory Health, and supporting Wellness-at-Home businesses. In July 2026, it entered into a definitive agreement to sell Diabetes Health for $235.0 million in cash, subject to customary purchase price adjustments, and will report the business as discontinued operations. The Company also entered an eCommerce sleep joint venture and redeemed its 6.125% Senior Notes due 2028 using proceeds from a $325 million delayed draw term loan.
Fiscal year 2026 guidance was revised to net revenue of $2.85 billion to $2.89 billion, Adjusted EBITDA of $490 million to $520 million, and free cash flow of $80 million to $120 million. Management identified the revised outlook’s Adjusted EBITDA effects as $100 million from the Diabetes Health discontinued-operations classification, $55 million from the West Coast capitated contract, $30 million from a manufacturer price increase, and $15 million from other portfolio actions. The $100 million discontinued-operations impact includes $60 million of previously allocated corporate overhead that will remain in continuing operations, of which the Company expects roughly half to be eliminated within 12 months thereafter.
Management, verbatim
In the second quarter, we delivered 15.9% organic growth, with record volume gains across the business. Also, in July we signed a definitive agreement to divest our Diabetes Health business, the most significant step yet in our multi-year effort to focus AdaptHealth on our core Sleep Health, Respiratory Health, and supporting Wellness-at-Home businesses. Our West Coast capitated partnership reached full scale in the quarter, and the complexity of that transition has impacted our margins. Together with an unexpected price increase from one of our manufacturers, this has led us to lower our full-year outlook. We are moving quickly to address the cost pressures introduced by our rapid growth, and we believe these actions will make us a stronger, more efficient company.
Suzanne Foster, Chief Executive Officer
Not in the filing
stated, not guessed- Segment revenue, segment prior-year revenue, and segment growth rates for Sleep Health, Respiratory Health, and Wellness at Home
- GAAP gross profit and gross margin
- Non-GAAP gross margin
- GAAP operating income or loss
- Non-GAAP operating income
- GAAP net income or loss per share
- Non-GAAP earnings per share
- Operating expenses
- Tax rate
- Cash balance
- Debt balance
- Capital expenditures
- Share repurchases
- Dividends
- Prior-quarter comparisons for reported financial metrics
- Prior standalone outlook section for comparison against prior guidance
AlphaAI 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.