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what it is
AdaptHealth delivers home medical equipment and supplies to patients in all 50 states.
how it gets paid
FY2025 net revenue was ~$3.245B (-0.5% YoY). Sleep Health remained the largest segment at ~$1.31B (~40% of sales—round from segment tables in the release).
why growth slowed
Revenue fell 0.5% last year. Recent earnings comparisons have been pressured by a combination of macroeconomic headwinds.
what just happened
Q4 2025 net revenue printed ~$846.3M (down 1.2% YoY) but was still ahead of the ~$829M consensus band—while GAAP EPS was a $(0.76) miss vs. much smaller positive street models once impairments land.
At a glance
B+ balance sheet — decent shape, but not bulletproof
5/100 earnings predictability — expect surprises
18.6x trailing p/e — priced about right
7.0% return on capital — nothing to write home about
xvary composite: 48/100 — below average
What they do
AdaptHealth delivers home medical equipment and supplies to patients in all 50 states.
~4.3 million patients versus ~10,500 employees is a lot of reach for a reimbursement‑sensitive business. Your sleep machine, oxygen gear, and diabetes supplies turn into recurring chores, not one-time sales. That is why switching providers hurts operationally even when GAAP swings.
How they make money
~$3.245B
FY2025 net revenue · -0.5% vs. prior year
Sleep Health
$1.31B
Respiratory Health
$0.64B
Wellness at Home
$0.64B
Diabetes Health
$0.61B
The products that matter
renting and supplying CPAP equipment
Sleep Health
$1.3B disclosed segment revenue
This $1.3B segment is the center of gravity. If sleep-therapy volumes or reimbursement rates wobble, the whole story feels it.
largest segment
home oxygen and respiratory support
Respiratory Health
$640M disclosed segment revenue
At $640M, this is one of the few areas management described as relatively flat on adjusted EBITDA through the first nine months of 2025. Flat counted as good news.
stabilizer
supplying diabetes monitoring products
Diabetes Health
$608M disclosed segment revenue
This $608M business adds real scale, but it sits inside a company still fighting competition and divested-line pressure. Helpful, not heroic.
scale, not savior
Key numbers
~$3.245B
FY2025 net revenue
That is the FY2025 net revenue print from the Feb. 24, 2026 release—big enough to matter, still down slightly year over year before you even get to GAAP noise.
~19%
FY2025 Adj. EBITDA margin
FY2025 Adjusted EBITDA was ~$616.7M on ~$3.245B revenue (~19% margin)—a non‑GAAP lens management emphasizes; do not confuse it with GAAP operating income after impairments.
$1.8B
long-term debt
Debt equals 56% of capital. That is a heavy load when GAAP earnings can swing on impairments—pair it with cash generation and Adj. EBITDA trends from the release.
~4.3M
patients reached
Company language: reaching approximately 4.3 million patients annually across all 50 states—scale plus reimbursement complexity.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 10 / 100
- long-term debt $1.8B (56% of capital)
- net profit margin 5.3% — keeps 5 cents of every dollar in revenue
- return on equity 9% — $0.09 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in AHCO 3 years ago → it's now worth $4,810.
The index would have given you $14,770.
source: institutional data · total return
What just happened
mixed quarter
Q4 2025 net revenue ~$846.3M (~2% ahead of the ~$829M consensus) while GAAP diluted EPS was $(0.76) after impairments.
Feb. 24, 2026 release: Q4 net loss attributable to AdaptHealth ~$(102.8)M vs. net income ~$50.3M prior‑year quarter; periods include a non‑cash $128.0M goodwill impairment. Q4 Adjusted EBITDA ~$163.1M (down ~18.7% YoY) reflected a $14.5M legal settlement and >$10M of strategic capitated‑contract investments per management commentary.
$846.3M
q4 net revenue
$(0.76)
gaap diluted eps
$163.1M
q4 adj. EBITDA
the number that mattered
The $128M goodwill impairment is the GAAP headline—without reconciling non‑GAAP EBITDA and cash flow, revenue “beats” can still feel like a loss quarter on screen.
-
fourth-quarter and full-year 2025 results posted feb. 24, 2026 (FY2025 net revenue ~$3.245B; includes $128M goodwill impairment).macro headwinds, competition, and divested lines still show up in year-over-year compares—read organic revenue (+1.7% FY2025) alongside GAAP noise.
-
in fact, all of the company’s primary operating segments posted declines in adjusted ebitda during the first nine months of 2025, with the exception of respiratory health, which was relatively flat.
-
FY2026 guidance from the same release: net revenue $3.44B–$3.51B; Adjusted EBITDA $680M–$730M; free cash flow $175M–$225M.GAAP EPS can still miss “adjusted” street models when impairments and settlements land—use the same GAAP vs non-GAAP label your data feed uses.
-
the company appears poised for some improvement in 2026.
-
leadership is targeting a significant recovery in top-line growth next year (6%-8%), which assumes accelerated gains across its core portfolios, a reduced impact from divested product lines, and new revenue from its capitated contract.the last mentioned refers to a 5year deal that adapthealth inked in early august to become the exclusive provider of home medical equipment for a major national healthcare system. the company also expects adjusted ebitda margin to be about 50 basis points better this year, compared to 2025. however, persistent competitive headwinds and potential tariff-related pressures are downside risks that investors should be monitoring.
sources: AdaptHealth (Feb. 24, 2026) · Nasdaq (PR mirror)
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What could go wrong
the #1 risk is missing the promised 6%–8% 2026 growth rebound.
med
2026 turnaround miss
Management is pointing to 6%–8% revenue growth next year after a 2025 setup that still implied revenue down about 1% at the midpoint. That is a real swing.
If growth lands well below that range, the stock stops being a recovery story and goes back to being a shrinking distributor with a cheap multiple.
med
balance sheet pressure
Long-term debt is $1.8B, or 56% of capital. That is more than the company's roughly $1B market cap.
Leverage works fine when cash generation holds. FY2025 was a GAAP net loss year after impairment—there is not much room for another operational stumble.
med
reimbursement and compliance friction
This company lives in billing codes, insurer approvals, and regulated medical-gas operations. Small process problems matter more in a low-margin model.
A business that keeps only 4 cents on each revenue dollar does not have much cushion for reimbursement pressure, compliance costs, or supply inflation.
med
securities class action overhang
The company is dealing with a securities class action lawsuit alleging federal securities law violations. Legal overhangs rarely help sentiment in a story already built on trust repair.
We are not inventing a damage figure here. The real cost can be cash, distraction, or both.
Between ~$1.8B of long-term debt, FY2025 GAAP losses after impairment, and FY2026 guidance that implies a real top-line step-up, AdaptHealth does not have much cushion for another operational miss.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
the next results release
2025 is closed—now track execution against FY2026 guidance: ~$3.44B–$3.51B net revenue and ~$680M–$730M Adjusted EBITDA (Feb. 24, 2026 release).
trend
whether 2026 growth is real or just a slide-deck promise
Management is targeting 6%–8% revenue growth next year. That is the core turnaround claim now attached to the stock.
metric
margin improvement of 50 basis points
That is half a percentage point. In a business with a 4.1% net margin, even small improvement matters more than the headline sounds.
risk
whether weakness stops spreading across segments
Through the first nine months of 2025, every primary operating segment except respiratory posted adjusted EBITDA declines. You want that list getting shorter, fast.
Analyst rankings
short-term outlook
average
Momentum score 3. In human-speak, analysts are not seeing a near-term edge either way.
risk profile
below average
Stability score 4 means the stock is shakier than most. Defensive healthcare this is not.
chart momentum
top 20%
Technical score 2 says the chart has been better than the business. Welcome to turnaround trading.
earnings predictability
5 / 100
Analysts have a hard time pinning down the numbers here. That usually means your thesis needs more humility and a wider range of outcomes.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 111 buyers vs. 99 sellers in 3q2025. total institutional holdings: 0.1B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$4
$14
$10
current price
$9
target midpoint · 12% from current · 3-5yr high: $25 (+145% · 26% ann'l return)
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