AdaptHealth Corp. reported fourth‑quarter 2025 revenue of $846.3 million, surpassing the consensus range of $828.6 million to $848.2 million. The beat was driven by record patient census and organic growth of 1.7 percent, with Sleep Health revenue up 4.4 percent and Respiratory Health revenue up 7.8 percent, offsetting a 7.4 percent decline in Diabetes Health revenue.
Adjusted EBITDA for the quarter was $163.1 million, a decline of 18.7 percent year‑over‑year. The compression was largely due to a $14.5 million legal settlement, more than $10 million in strategic investments to accelerate a new capitated contract, and a $128 million non‑cash goodwill impairment charge. These one‑time and investment costs reduced margin expansion that would otherwise have been driven by the strong segment performance.
GAAP net loss per share was –$0.76, a miss against analyst expectations of $0.34 to $0.36. The loss reflects the goodwill impairment, the legal settlement, and the capital‑intensive investments required to launch the capitated contract, all of which were not part of the company’s core operating model.
For 2026, AdaptHealth guided revenue of $3.44 billion to $3.51 billion and adjusted EBITDA of $680 million to $730 million. The guidance signals confidence in the ramp‑up of the industry‑first capitated contract and the company’s debt‑reduction program, which has already lowered total debt by $250 million and earned credit rating upgrades from S&P and Moody’s.
Management highlighted the transition to a more integrated operating model and the strategic importance of the capitated contract. CEO Suzanne Foster said the company had “made significant strides toward building a stronger operational and financial foundation,” while CFO Jason Clemens noted that free cash flow would be negative in the first quarter of 2026 due to front‑loaded infrastructure costs. The mixed segment performance—strong growth in Sleep and Respiratory Health versus a decline in Diabetes Health—illustrates the company’s focus on high‑margin core services while managing legacy product challenges.
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