AdaptHealth Corp. (AHCO) · Nov 3, 2026 · Earnings
Miss — Diluted EPS -$1.13 vs ~-$0.05 consensus; revenue $745.6M vs ~$725.9M
AdaptHealth’s third-quarter earnings beat revenue expectations and improved the capitated-contract story, but weak free cash flow and a goodwill impairment cloud the turnaround.
AdaptHealth is in the middle of a reset: it is concentrating on Sleep Health, Respiratory Health, and Wellness at Home while scaling large capitated healthcare-at-home contracts and preparing to sell Diabetes Health. The capitated model was already the central execution test entering this quarter, while the Diabetes Health divestiture was previously announced and therefore was not itself new.
The operating quarter was better than the headline loss suggests. Revenue reached $745.6 million, up 10.9% year over year, and exceeded the published consensus of roughly $725.9 million by about 2.7%. The company also said the capitated partnership improved sequentially as utilization normalized and labor costs fell.
But the GAAP earnings miss is substantial, not cosmetic. AdaptHealth reported a diluted loss of $1.13 per share versus a published consensus loss of about $0.05, while a $184.8 million goodwill impairment pushed continuing-operations EBITDA negative. The impairment is non-cash, but it signals that the carrying values of the Respiratory Health and Wellness at Home businesses no longer matched management’s valuation assumptions.
Management raised the profitability outlook but cut the cash-conversion outlook. Full-year continuing-operations revenue guidance moved to $2.88–$2.90 billion from $2.85–$2.89 billion, and Adjusted EBITDA to $510–$525 million from $490–$520 million. That is evidence the capitated contract is stabilizing faster than feared. But free-cash-flow guidance fell to $50–$75 million from $80–$120 million, consistent with year-to-date free cash flow of just $2.6 million versus $140.1 million a year earlier. The business is producing accounting-adjusted earnings, but considerably less cash after heavy equipment investment.
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Revenue (Financial Statements) | $745.6M (+10.9%) | $672.4M | $725.9M |
| Diluted EPS (Financial Statements) | $(1.13) | $0.17 | $(0.05) |
| Adjusted EBITDA (Adjusted EBITDA reconciliation) | $141.9M (-2.9%) | $146.1M | |
| Adjusted EBITDA margin (Adjusted EBITDA reconciliation) | 19.0% | 21.7% | |
| YTD free cash flow (Free cash flow table) | $2.6M | $140.1M | |
| Goodwill impairment (Income Statement) | $184.8M | — |
Bottom line: AdaptHealth is making genuine progress operationally, especially in the capitated contract, but the quarter does not yet prove a clean turnaround. Higher EBITDA guidance is offset by sharply weaker cash generation and a major impairment, leaving the overall read mixed with a slight negative tilt. عاش
Diabetes Health sale closing, expected early 2027
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