AdaptHealth Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue for the quarter ended September 30, 2026, was $745.6 million, an increase of 10.9% year-over-year from $672.4 million.
• Organic revenue growth was 12.8%, with growth reported across all reportable segments.
• Net loss attributable to AdaptHealth Corp. was $168.2 million for the quarter, compared to net income of $10.2 million in the prior year period, primarily driven by a $184.8 million pre-tax goodwill write-down.
• Adjusted EBITDA was $141.9 million for the quarter, a decrease of 2.9% from $146.1 million in the prior year period.
• Year-to-date 2026 cash flow from operations was $395.6 million, down from $418.6 million in the comparable 2025 period.
• Year-to-date 2026 free cash flow was $2.6 million, a significant decrease from $140.1 million in the comparable 2025 period.
• Goodwill impairment for the nine months ended September 30, 2026, totaled $328.9 million, compared to $0 in the prior year.
• Total assets were $4.20 billion as of September 30, 2026, down from $4.32 billion as of December 31, 2025.
• Long-term debt, less current portion, was $1.87 billion as of September 30, 2026, up from $1.72 billion as of December 31, 2025.

Guidance and Future Outlook:

• The Company revised its fiscal year 2026 financial guidance on a continuing operations basis (excluding the Diabetes Health business).
• Revised net revenue guidance is $2.88 billion to $2.90 billion, up from the previous range of $2.85 billion to $2.89 billion.
• Revised Adjusted EBITDA guidance is $510 million to $525 million, up from the previous range of $490 million to $520 million.
• Revised free cash flow guidance is $50 million to $75 million, down from the previous range of $80 million to $120 million.
• Management indicated the business is stabilizing during its transformation period and expects to carry momentum into 2027.

Business Segments and Product Lines:

• The Company operates under three reportable segments: Sleep Health, Respiratory Health, and Wellness at Home.
• The second full quarter of the exclusive capitated agreement with a large national integrated delivery network showed sequential improvement in contract profitability, driven by utilization lower than peak levels and reduced labor costs.
• The Company signed preferred-provider agreements with four health systems.
• The capitated portfolio was broadened through two smaller agreements with regional health plans, one new and one expanded.
• Registered myAPP users grew to more than 615,000, an increase of approximately 88% from year-end 2025.
• The Company completed more than 12,600 patient scans using its AI-powered mask-fitting tool.

Market and Competitive Landscape:

• The Company serves approximately 4.8 million patients annually across all 50 states through a network of approximately 660 locations in 48 states.
• Referral sources include acute care hospitals, sleep labs, pulmonologists, skilled nursing facilities, and clinics.
• The Company services beneficiaries of Medicare, Medicaid, and commercial insurance payors.

Risks and Challenges:

• The Company reported a $184.8 million pre-tax goodwill impairment charge in the third quarter of 2026.
• The sale of the Diabetes Health business is subject to regulatory approvals and other customary closing conditions, with the transaction expected to close in early 2027.
• Forward-looking statements are subject to risks including judicial and administrative proceedings, governmental investigations, changes in customer preferences, and competitive conditions in the healthcare sector.

Management Commentary and Tone:

• Suzanne Foster, Chief Executive Officer, stated the Company delivered strong organic revenue growth and exceeded guidance for revenue, Adjusted EBITDA, and free cash flow.
• Management noted the capitated partnership made a positive contribution to enterprise Adjusted EBITDA, driven by a tighter labor model and lower costs to serve.
• Management expressed confidence in moving toward a more focused portfolio built around Sleep Health, Respiratory Health, and Wellness-at-Home following the pending sale of the Diabetes Health business.

Other Key Points:

• The Company cleared the Hart-Scott-Rodino waiting period for the sale of its Diabetes Health business for $235.0 million in cash.
• The Diabetes Health business was reported as discontinued operations for all periods presented.
• The Company recognized a pre-tax gain of $12.0 million associated with the deconsolidation of its former wholly-owned eCommerce subsidiary.
• The Company recognized a gain on sale of businesses of $6.3 million for the nine months ended September 30, 2026.
• The Company refinanced its credit agreement, incurring a loss on extinguishment of debt of $1.3 million for the nine months ended September 30, 2026.
• The Company paid $26.8 million in payments relating to the Tax Receivable Agreement for the nine months ended September 30, 2026.