AdaptHealth Q1 operating income misses estimates on expansion costs

Adapthealth

05/05/2026 12:26

Overview

US home medical equipment provider's Q1 revenue rose 5.4%, beating analyst expectations

Q1 operating income and pretax profit missed analyst expectations

Elevated labor costs from major expansion weighed on Q1 results; costs expected to normalize by Q2

Outlook

Company raises 2026 net revenue guidance to $3.45 bln-$3.52 bln

Company maintains 2026 adjusted EBITDA guidance at $680 mln-$730 mln

Company maintains 2026 free cash flow guidance at $175 mln-$225 mln

Result Drivers

EXPANSION COSTS - Elevated labor expenses from rapid expansion to serve a new strategic partner weighed on Q1 results; majority of these costs are expected to normalize by Q2, per management

ORGANIC GROWTH - Organic revenue grew 9.1% with growth across all reportable segments, driven by the new strategic partnership and expansion, according to management

Company press release: ID:nBw5bYtT3a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$819.80 mln
$796.62 mln (8 Analysts)
Q1 EPS
-$0.12
Q1 Net Income Attributable To AdaptHealth
-$16.04 mln
Q1 Operating Income
Miss
$5.49 mln
$26.09 mln (8 Analysts)
Q1 Pretax Profit
Miss
-$20.11 mln
$4.34 mln (5 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "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 $13.50, about 3.5% above its May 4 closing price of $13.04

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 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.)