AdaptHealth Q3 revenue beats estimates

Adapthealth

04/11/2025 12:12

Overview

AdaptHealth Q3 revenue rose 1.8% yr/yr, beating analyst expectations

Adjusted EBITDA for Q3 increased 3.5% yr/yr

Company reduced debt by $50 mln in Q3, totaling $225 mln yr-to-date

Outlook

Company maintains FY 2025 net revenue guidance of $3.18 bln to $3.26 bln

AdaptHealth projects FY 2025 adjusted EBITDA of $642 mln to $682 mln

Company expects FY 2025 free cash flow of $170 mln to $190 mln

Result Drivers

NEW AGREEMENT - Signed exclusive capitated agreement with payor, expanding reach to 170,000 members

DIGITAL ENGAGEMENT - Expanded digital patient engagement, increasing registered myApp users to 271,000 from 118,000

DEBT REDUCTION - Reduced debt by $50 mln, contributing to a net leverage ratio of 2.68x

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$820.31 mln
$799.60 mln (8 Analysts)
Q3 Net Income
$25.75 mln
Q3 Operating Income
Miss
$61.73 mln
$70.30 mln (7 Analysts)
Q3 Pretax Profit
Miss
$36.35 mln
$43.50 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 $13.00, about 30.1% above its November 3 closing price of $9.09

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBwbKXxt6a

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(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.)