AdaptHealth Q2 revenue misses estimates
AdaptHealth Q2 revenue misses estimates
Overview
U.S. healthcare-at-home provider's Q2 revenue grew 12.7% yr/yr but missed analyst expectations
Q2 operating income was negative and missed analyst estimates, impacted by goodwill impairment
Company agreed to sell Diabetes Health business for $235 mln in cash to refocus portfolio
Outlook
Company now sees 2026 net revenue of $2.85 bln to $2.89 bln
Company expects 2026 adjusted EBITDA of $490 mln to $520 mln
Company lowers 2026 outlook due to contract margin pressure and manufacturer price increase
Result Drivers
CAPITATED CONTRACTS - Co said new and expanded capitated agreements, including with a large national integrated delivery network and Humana OneHome, drove record volume gains and organic revenue growth
MARGIN PRESSURE - Co said transition complexity from West Coast capitated partnership and an unexpected manufacturer price increase negatively impacted margins and led to lower full-year outlook
GOODWILL IMPAIRMENT - Co recorded a $144.2 mln pre-tax goodwill write-down, which contributed to the Q2 net loss
Company press release: ID:nBwkrJ5Ba
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $740.31 mln | $848.63 mln (8 Analysts) |
Q2 Loss Per Share |
| $0.99 |
|
Q2 Net Loss |
| $132.72 mln |
|
Q2 Operating Income | Miss | -$137.80 mln | $52.47 mln (7 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"
Wall Street's median 12-month price target for Adapthealth Corp is $14.00, about 29.3% above its August 3 closing price of $10.83
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)