AdaptHealth (NASDAQ:AHCO) Issues Earnings Results, Misses Estimates By $1.10 EPS

AdaptHealth (NASDAQ:AHCO) posted its quarterly earnings results on Tuesday. The company reported ($0.76) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.34 by ($1.10), FiscalAI reports. The firm had revenue of $846.29 million for the quarter, compared to the consensus estimate of $832.51 million. AdaptHealth had a positive return on equity of 3.42% and a negative net margin of 2.18%.The business’s revenue was down 1.2% compared to the same quarter last year. During the same period last year, the company posted $0.34 earnings per share.

Here are the key takeaways from AdaptHealth’s conference call:

• Operational momentum: Patient census hit all-time records in Sleep, Respiratory and Wellness segments, driving organic revenue growth of 1.7% (Q4 and FY) and full‑year Adjusted EBITDA of $616.7M with Free Cash Flow of $219.4M.
• Largest capitated contract underway — early December go‑live in the Mid‑Atlantic (≈50k members) was smooth, the program will scale to serve ~10M patients when fully operational and management expects it to contribute ~5%–6% revenue growth in 2026 (after upfront onboarding costs).
• Balance sheet progress: $250M of debt paid down in 2025, year‑end net leverage ~2.75x (target 2.5x), recent S&P and Moody’s upgrades, and reduced interest expense, supporting continued financial flexibility.
• Near‑term headwinds and one‑offs: Q4 included a $14.5M legal settlement and ~$10M of accelerated onboarding costs; the company also took a $128M non‑cash goodwill impairment in Diabetes, Diabetes revenue declined 7.4% and Q1 2026 FCF is expected to be negative (-$20M to -$40M).
• 2026 outlook: Guidance calls for $3.44B–$3.51B revenue (6%–8% growth), Adjusted EBITDA $680M–$730M (~20.3% margin) and FCF $175M–$225M, with margins and cash flow expected to improve through the year as capitated revenue ramps.

AdaptHealth Trading Down 1.2%

Shares of AHCO stock opened at $9.22 on Thursday. AdaptHealth has a twelve month low of $7.11 and a twelve month high of $11.63. The stock’s fifty day simple moving average is $10.21 and its 200 day simple moving average is $9.66. The company has a quick ratio of 0.86, a current ratio of 1.02 and a debt-to-equity ratio of 1.15. The firm has a market capitalization of $1.25 billion, a P/E ratio of -16.77, a P/E/G ratio of 1.01 and a beta of 1.72.

Analysts Set New Price Targets

Several analysts have issued reports on AHCO shares. Leerink Partners restated an “outperform” rating and issued a $12.00 price objective on shares of AdaptHealth in a research note on Thursday. Wall Street Zen downgraded shares of AdaptHealth from a “strong-buy” rating to a “buy” rating in a research report on Saturday, February 14th. Zacks Research raised AdaptHealth from a “strong sell” rating to a “hold” rating in a research report on Thursday, January 1st. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $13.00 price objective on shares of AdaptHealth in a report on Wednesday. Finally, Canaccord Genuity Group boosted their price target on AdaptHealth from $14.00 to $15.00 and gave the company a “buy” rating in a research note on Thursday, November 6th. Five investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $13.80.

Insider Activity

In related news, Director David Solomon Williams III sold 5,000 shares of the firm’s stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $9.43, for a total value of $47,150.00. Following the completion of the transaction, the director owned 45,045 shares in the company, valued at $424,774.35. This trade represents a 9.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.55% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On AdaptHealth

Several institutional investors and hedge funds have recently added to or reduced their stakes in AHCO. Deerfield Management Company L.P. raised its stake in AdaptHealth by 15.9% during the 3rd quarter. Deerfield Management Company L.P. now owns 11,477,730 shares of the company’s stock worth $102,726,000 after buying an additional 1,572,835 shares during the period. Dimensional Fund Advisors LP lifted its holdings in shares of AdaptHealth by 15.6% in the 3rd quarter. Dimensional Fund Advisors LP now owns 5,982,070 shares of the company’s stock worth $53,537,000 after purchasing an additional 809,459 shares in the last quarter. Iron Triangle Partners LP grew its position in AdaptHealth by 35.6% in the 4th quarter. Iron Triangle Partners LP now owns 2,609,003 shares of the company’s stock valued at $25,986,000 after purchasing an additional 684,871 shares during the period. Lazard Asset Management LLC increased its stake in AdaptHealth by 1,246.3% during the 2nd quarter. Lazard Asset Management LLC now owns 686,720 shares of the company’s stock valued at $6,474,000 after purchasing an additional 635,713 shares in the last quarter. Finally, Invesco Ltd. increased its stake in AdaptHealth by 50.0% during the 2nd quarter. Invesco Ltd. now owns 1,906,074 shares of the company’s stock valued at $17,974,000 after purchasing an additional 634,973 shares in the last quarter. 82.67% of the stock is currently owned by institutional investors and hedge funds.

AdaptHealth Company Profile

AdaptHealth, Inc operates as a leading provider of home medical equipment (HME) and related services in the United States. The company focuses on delivering respiratory care, mobility solutions and bathroom safety products to patients with chronic and acute medical needs. Through its comprehensive service offerings, AdaptHealth aims to enhance quality of life and clinical outcomes for patients who require long-term support outside of a hospital setting.

The company’s respiratory portfolio includes products such as continuous positive airway pressure (CPAP) devices, oxygen concentrators, ventilators, and associated supplies for patients with sleep apnea, COPD and other pulmonary conditions.