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Aug 10, 2026, 6:50 AM ETHealthcare

Accendra Health — Second Quarter 2026 Earnings Summary

ACHACCENDRA HEALTH INC
Source

Financial Performance

  • Net revenue for the second quarter of 2026 was $613.2 million, a decrease from $681.9 million in the same period of 2025; year-to-date (YTD) revenue was $1,241.0 million compared to $1,355.8 million in 2025.
  • GAAP loss from continuing operations, net of tax, was $89.1 million for the quarter (vs. $83.8 million in 2025) and $95.5 million YTD (vs. $87.6 million in 2025).
  • Adjusted (loss) income from continuing operations, net of tax (Non-GAAP), was $(14.3) million for the quarter (vs. $20.5 million in 2025) and $(17.4) million YTD (vs. $43.7 million in 2025).
  • Adjusted EBITDA (Non-GAAP) was $60.1 million for the quarter (vs. $96.6 million in 2025) and $118.5 million YTD (vs. $192.7 million in 2025).
  • Free cash flow (Non-GAAP) was $(25.1) million for the quarter (vs. $15.2 million in 2025) and $(27.1) million YTD (vs. $50.7 million in 2025).
  • GAAP loss per share (diluted) was $(1.16) for the quarter and $(1.25) YTD; Adjusted Non-GAAP loss per share was $(0.19) for the quarter and $(0.23) YTD.
  • Total debt was $1,718.1 million as of June 30, 2026, down from $2,049.9 million as of December 31, 2025, representing a reduction of $385 million in the second quarter.
  • Cash and cash equivalents were $7.7 million as of June 30, 2026, down from $282.0 million as of December 31, 2025.
  • Interest expense, net, was $34.5 million for the quarter and $66.9 million YTD.
  • Loss on modification and extinguishment of debt was $17.3 million for the quarter and YTD.

Guidance and Future Outlook

  • Full-year 2026 revenue guidance is updated to a range of $2.45 billion to $2.55 billion.
  • Full-year 2026 Adjusted EBITDA guidance is updated to a range of $300 million to $320 million.
  • Full-year 2026 Free cash flow guidance is updated to breakeven to slightly positive.
  • The company expects topline and bottom-line expansion opportunities from new strategic partnerships and growth initiatives to emerge in late 2026 and accelerate in 2027.
  • The company is unable to provide GAAP guidance for free cash flow or adjusted EBITDA due to the unpredictability of restructuring and acquisition charges.

Business Segments and Product Lines

  • Results reflect the Company's continuing operations, which represent the previously named Patient Direct segment and certain functional operations.
  • The company is moving toward complete separation from Owens & Minor.
  • The company has exited a large commercial payor contract, eliminating over $125 million of annualized operating expenses associated with the payor in the last six months.
  • Growth initiatives include the nationwide rollout of the Sleep Center of Excellence.
  • The company is emphasizing expense rationalization.

Market and Competitive Landscape

  • The company is resetting its business for accelerated future growth following the commercial payor exit and separation from Owens & Minor.
  • New commercial agreements have been secured as part of growth initiatives.
  • The company operates as a leading nationwide provider of products, technology, and services supporting health beyond the hospital, utilizing Apria and Byram brands.

Risks and Challenges

  • Forward-looking statements involve risks including market conditions, consumer demand, supply chain stability, and interest rates.
  • GAAP results may be significantly impacted by unpredictable restructuring and acquisition charges.
  • The company faces risks related to the selection and appointment of a successor President and CEO.
  • Litigation and related charges are inherently unpredictable in timing and amount.

Management Commentary and Tone

  • CEO Edward A. Pesicka stated the company is "resetting our business for accelerated future growth" after eliminating significant operating expenses and reducing debt.
  • Pesicka noted progress on key growth initiatives and strategic partnerships with topline and bottom-line expansion opportunities.
  • The company completed a balance sheet optimization transaction in June to comprehensively reset its debt maturity profile.
  • Management indicated they are beginning to see the benefits of expense rationalization and payor exit.

Other Key Points

  • President & CEO Edward A. Pesicka announced his intention to retire from his role and step down from the Board of Directors by the end of 2026.
  • The Board has a succession planning process in place and will select a successor in the coming months.
  • The company reduced outstanding debt by $385 million in the second quarter through a balance sheet optimization transaction.
  • The company incurred $25.8 million in exit and realignment charges, net, in the second quarter, primarily related to the commercial payor contract termination and P&HS sale.
  • The company incurred $29.2 million in acquisition-related charges and intangible amortization in the second quarter.
  • The company reported a $17.3 million loss on modification and extinguishment of debt in the second quarter, including $16 million in third-party fees and $0.8 million in recognition of previously deferred debt issuance costs.
  • The company paid $49.9 million in interest during the second quarter.
  • The company reported a $60.1 million Adjusted EBITDA for the quarter, down from $96.6 million in the prior year period.
Accendra Health — Second Quarter 2026 Earnings Summary