AdaptHealth (NASDAQ:AHCO – Get Free Report) released its quarterly earnings data on Tuesday. The company reported ($0.12) EPS for the quarter, missing the consensus estimate of $0.01 by ($0.13), FiscalAI reports. AdaptHealth had a negative net margin of 2.18% and a positive return on equity of 3.42%. The company had revenue of $819.80 million during the quarter, compared to analyst estimates of $796.63 million. During the same period in the previous year, the company posted ($0.05) EPS. The company’s quarterly revenue was up 5.4% compared to the same quarter last year.
Here are the key takeaways from AdaptHealth’s conference call:
- Completed the largest patient transition in HME history, becoming the exclusive provider for more than 10 million new members (capitated membership ~15M) via 35 de novo locations, which contributed ~500 bps of the quarter’s organic growth.
- Q1 net revenue was $819.8M (+5.4% YoY) and beat guidance by about $22M, with 9.1% organic growth and broad-based strength (Sleep Health +13.3%, record PAP starts).
- Adjusted EBITDA of $121.2M missed guidance by ~$7M due to $12M of elevated labor costs ( ~$8M variable to accelerate the transition and ~$4M in wages/benefits), and free cash flow was negative $27.5M driven by $121.2M of CapEx to stock inventory, while net leverage rose to ~3.0x.
- Completed a $1.1B refinancing that extends maturities to 2031, lowers cost of debt, increases revolver capacity and includes a delayed draw to fund redemption of 2028 notes, giving greater financial flexibility for disciplined tuck‑in M&A.
- AI and digital investments reached milestones — conversational AI handling live calls and 25% touchless scheduling, and the patient portal surpassed 412k users — with management saying material margin benefits are expected over the back half of 2026 and into 2027.
AdaptHealth Stock Performance
AHCO traded down $1.53 during trading on Tuesday, hitting $11.51. The stock had a trading volume of 1,305,501 shares, compared to its average volume of 1,265,057. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.02 and a quick ratio of 0.81. The company has a 50 day moving average price of $11.20 and a 200-day moving average price of $10.36. AdaptHealth has a one year low of $7.95 and a one year high of $13.43. The firm has a market cap of $1.56 billion, a price-to-earnings ratio of -20.93, a P/E/G ratio of 1.52 and a beta of 1.57.
Insiders Place Their Bets
Hedge Funds Weigh In On AdaptHealth
A number of hedge funds have recently bought and sold shares of AHCO. Deerfield Management Company L.P. raised its stake in AdaptHealth by 15.9% in the 3rd quarter. Deerfield Management Company L.P. now owns 11,477,730 shares of the company’s stock worth $102,726,000 after purchasing an additional 1,572,835 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in AdaptHealth by 7.0% in the 4th quarter. Dimensional Fund Advisors LP now owns 6,402,699 shares of the company’s stock valued at $63,773,000 after purchasing an additional 420,629 shares during the period. Geode Capital Management LLC grew its position in shares of AdaptHealth by 0.8% during the 4th quarter. Geode Capital Management LLC now owns 2,627,306 shares of the company’s stock worth $26,173,000 after purchasing an additional 19,998 shares in the last quarter. Iron Triangle Partners LP increased its holdings in shares of AdaptHealth by 35.6% during the fourth quarter. Iron Triangle Partners LP now owns 2,609,003 shares of the company’s stock worth $25,986,000 after purchasing an additional 684,871 shares during the period. Finally, Charles Schwab Investment Management Inc. increased its holdings in shares of AdaptHealth by 17.1% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,232,787 shares of the company’s stock worth $22,239,000 after purchasing an additional 326,820 shares during the period. 82.67% of the stock is owned by institutional investors.
Analysts Set New Price Targets
AHCO has been the topic of several analyst reports. Wall Street Zen lowered shares of AdaptHealth from a “buy” rating to a “hold” rating in a research report on Saturday, February 28th. Royal Bank Of Canada restated an “outperform” rating and set a $13.00 price objective on shares of AdaptHealth in a research note on Wednesday, February 25th. Truist Financial upped their target price on shares of AdaptHealth from $13.00 to $14.00 and gave the company a “buy” rating in a report on Monday, April 13th. Leerink Partners cut their target price on shares of AdaptHealth from $13.00 to $12.00 and set an “outperform” rating for the company in a research note on Thursday, February 26th. Finally, Weiss Ratings cut AdaptHealth from a “hold (c-)” rating to a “sell (d)” rating in a report on Wednesday, February 25th. Four investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $13.00.
Read Our Latest Stock Analysis on AdaptHealth
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.
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