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olivLaw · US equity research

AdaptHealth Corp. AHCO

Services-Home Health Care Services · SIC 8082 · Vertical: Services-Home Health Care Services (SIC 8082)

7.31USD+16.40% · 1 dayClose 04 Nov 2026

AdaptHealth Corp. provides home medical equipment, supplies and related services to patients across the United States, focused on sleep, respiratory and home wellness care. In 2026 it is concentrating its portfolio by agreeing to sell its Diabetes Health business, while Q2 2026 net revenue rose 12.7% to 740.3 million USD.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, AdaptHealth Corp. (AHCO) stock was 7.31 USD (+16.40% on the day), with market capitalisation 998.0 m USD, beta 0.71, 52-week range 5.22–13.38 USD. Latest reported quarter (Q3 2026): revenue of 745.6 m USD (+10.9% YoY), net income of -154.0 m USD (−728.3% YoY), diluted EPS -1.13 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
998.0 m USD
shares as of 30 Oct 2026
P/E (TTM)
unavailable
Diluted EPS TTM -3.03 · TTM to 30 Sept 2026
E/P (TTM)
-41.51%
TTM to 30 Sept 2026
Dividend yield
unavailable
Beta (2y)
0.71
Volatility (1y) 71%
52-week range
5.2213.38

Price history

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Technical reading

RSI (14)
72.5
overbought (≥ 70)
Bollinger (20, 2)
5.50 – 6.75
above the upper band · %B 1.44 · band width 20.4%
SMA 50 / 200
5.93 / 9.15
mixed trend
MACD (12, 26, 9)
0.10 / 0.01
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+27.4%−1.1%+28.4 pp—
3 months+12.5%−0.5%+13.0 pp—
6 months−36.0%+4.4%−40.4 pp—
Year to date−26.6%+12.3%−38.9 pp—
1 year−31.5%+13.5%−45.0 pp+24.9%
3 years−13.7%+76.4%−90.1 pp+26.6%
5 years−70.7%+63.7%−134.4 pp—
Max drawdown (1y)
−61.0%
28 Apr 2026 → 10 Aug 2026
Max drawdown (5y)
−79.7%
08 Aug 2022 → 10 Aug 2026
Compound annual growth (5y)
−21.8%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
745.6 m USD
+10.9% YoY
Net income
-154.0 m USD
−728.3% YoY
Diluted EPS
-1.13
−764.7% YoY
net / operating
-20.7% / -20.9%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue856.6 m777.9 m657.1 m672.4 m1.3 bn819.8 m740.3 m745.6 m
Cost of revenue664.4 m657.4 m521.3 m533.8 m1.0 bn708.3 m636.1 m630.8 m
Operating income97.7 m23.2 m65.7 m43.4 m-31.6 m5.5 m-137.8 m-155.9 m
Depreciation & amortisation90.5 m94.3 m92.4 m ≈97.7 m ≈97.5 m106.5 m120.3 m ≈116.9 m ≈
Interest expense27.8 m———————
Pre-tax income70.7 m-5.2 m38.2 m18.0 m-56.3 m-20.1 m-165.3 m-184.5 m
Income tax19.3 m850.0 k32.8 m6.5 m14.1 m-5.2 m-21.2 m-17.5 m
Net income50.3 m-7.2 m14.7 m24.5 m-102.8 m-16.0 m-133.9 m-154.0 m
Diluted EPS0.37 ≈-0.050.100.17-0.79 ≈-0.12-0.99-1.13
Operating cash flow150.4 m95.5 m162.0 m ≈161.1 m ≈183.2 m93.7 m145.3 m ≈156.6 m ≈
Capex77.3 m95.6 m88.7 m ≈94.2 m ≈103.9 m121.2 m166.2 m ≈105.5 m ≈
Share repurchases0———————

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue345.3 m529.6 m1.1 bn2.5 bn3.0 bn3.2 bn3.3 bn3.2 bn
Revenue YoYunavailable+53.4%+99.5%+132.4%+21.0%+7.7%+1.9%−0.5%
Net income23.3 m-21.3 m-161.6 m156.2 m69.3 m-678.9 m90.4 m-70.8 m
Net income YoYunavailable−191.7%unavailableunavailable−55.6%−1,079.4%unavailable−178.3%
Diluted EPSunavailable-0.95-3.080.670.33-5.310.61-0.52
Diluted EPS YoYunavailableunavailableunavailableunavailable−50.7%−1,709.1%unavailable−185.2%
net %6.7%-4.0%-15.3%6.4%2.3%-21.2%2.8%-2.2%
Free cash flow58.5 m39.1 m155.9 m72.4 m-17.6 m143.2 m235.8 m219.4 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
106.1 m USD
Financial debt
1.7 bn USD
Net debt
1.6 bn USD
Equity
1.5 bn USD
Total assets
4.3 bn USD
Debt / equity
1.14x
Current ratio
1.02x
ROE
-4.6%
ROA
-1.6%
FCF margin
6.8%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
3.2 bn
2024
3.3 bn
2025
3.2 bn

SEC (XBRL)· 24 Feb 2026verified

Cost of revenue
2023
2.6 bn
2024
2.6 bn
2025
2.6 bn

SEC (XBRL)· 24 Feb 2026verified

Gross profit
2023
624.1 m ≈
2024
681.1 m ≈
2025
609.2 m ≈

SEC (XBRL)· 24 Feb 2026derived

Operating income
2023
-598.4 m
2024
263.7 m
2025
90.9 m

SEC (XBRL)· 24 Feb 2026verified

Depreciation & amortisation
2023
382.8 m
2024
365.3 m
2025
381.9 m

SEC (XBRL)· 24 Feb 2026verified

EBITDA
2023
-215.6 m ≈
2024
629.1 m ≈
2025
472.8 m ≈

SEC (XBRL)· 24 Feb 2026derived

Interest expense
2023
130.3 m
2024
124.7 m
2025
103.6 m

SEC (XBRL)· 24 Feb 2026verified

Pre-tax income
2023
-723.8 m
2024
136.0 m
2025
-15.2 m

SEC (XBRL)· 24 Feb 2026verified

Income tax
2023
-49.0 m
2024
41.2 m
2025
50.9 m

SEC (XBRL)· 24 Feb 2026verified

Net income
2023
-678.9 m
2024
90.4 m
2025
-70.8 m

SEC (XBRL)· 24 Feb 2026verified

Diluted EPS
2023
-5.31
2024
0.61
2025
-0.52

SEC (XBRL)· 24 Feb 2026verified

Weighted average diluted shares
2023
134.4 m
2024
135.5 m
2025
135.1 m

SEC (XBRL)· 24 Feb 2026verified

Balance sheet · USD

Cash
2023
77.1 m
2024
109.7 m
2025
106.1 m

SEC (XBRL)· 24 Feb 2026verified

Receivables
2023
388.9 m
2024
408.0 m
2025
370.9 m

SEC (XBRL)· 24 Feb 2026verified

Inventories
2023
113.6 m
2024
139.8 m
2025
114.9 m

SEC (XBRL)· 04 Aug 2026verified

Current assets
2023
649.0 m
2024
755.8 m
2025
728.9 m

SEC (XBRL)· 24 Feb 2026verified

Property, plant & equipment, net
2023
495.1 m
2024
474.6 m
2025
503.2 m

SEC (XBRL)· 04 Aug 2026verified

Goodwill
2023
2.7 bn
2024
2.7 bn
2025
2.5 bn

SEC (XBRL)· 04 Aug 2026verified

Intangibles (excl. goodwill)
2023
130.2 m
2024
105.5 m
2025
35.8 m

SEC (XBRL)· 04 Aug 2026verified

Total assets
2023
4.5 bn
2024
4.5 bn
2025
4.3 bn

SEC (XBRL)· 24 Feb 2026verified

Accounts payable
2023
211.5 m
2024
281.9 m
2025
352.4 m

SEC (XBRL)· 24 Feb 2026verified

Short-term debt
2023
53.4 m
2024
16.3 m
2025
20.3 m

SEC (XBRL)· 24 Feb 2026verified

Long-term debt
2023
2.1 bn
2024
2.0 bn
2025
1.7 bn

SEC (XBRL)· 24 Feb 2026verified

Current liabilities
2023
537.0 m
2024
567.0 m
2025
712.4 m

SEC (XBRL)· 24 Feb 2026verified

Total liabilities
2023
3.0 bn
2024
2.9 bn
2025
2.8 bn

SEC (XBRL)· 24 Feb 2026verified

Equity
2023
1.5 bn
2024
1.6 bn
2025
1.5 bn

SEC (XBRL)· 24 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
480.7 m
2024
541.8 m
2025
601.8 m

SEC (XBRL)· 24 Feb 2026verified

Capex
2023
337.5 m
2024
306.1 m
2025
382.4 m

SEC (XBRL)· 24 Feb 2026verified

Free cash flow
2023
143.2 m ≈
2024
235.8 m ≈
2025
219.4 m ≈

SEC (XBRL)· 24 Feb 2026derived

Investing cash flow
2023
-357.3 m
2024
-310.3 m
2025
-303.2 m

SEC (XBRL)· 24 Feb 2026verified

Financing cash flow
2023
-92.5 m
2024
-198.9 m
2025
-302.2 m

SEC (XBRL)· 24 Feb 2026verified

Share repurchases
2023
29.3 m
2024
0
2025
0

SEC (XBRL)· 24 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
-0.5%
computed by olivLawFY 2025
Revenue CAGR 3Y
3.0%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
25.2%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
-65.5%
computed by olivLawFY 2025
Net income growth (YoY)
-178.3%
computed by olivLawFY 2025
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
-185.2%
computed by olivLawFY 2025
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
-7.0%
computed by olivLawFY 2025

Profitability

Gross margin
15.7%
computed by olivLawTTM to 30 Sept 2026
EBITDA margin
3.4%
computed by olivLawTTM to 30 Sept 2026
EBIT margin
-8.9%
computed by olivLawTTM to 30 Sept 2026
Net margin
-11.4%
computed by olivLawTTM to 30 Sept 2026
FCF margin
2.3%
computed by olivLawTTM to 30 Sept 2026

Returns

ROE
-28.6%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
-9.5%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
unavailable
input data missing
ROCE
-9.3%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
1.5x
computed by olivLawbalance sheet at 30 Sept 2026
Interest coverage
-3.1x
computed by olivLawTTM to 30 Sept 2026

Liquidity

Current ratio
1.1x
computed by olivLawbalance sheet at 30 Sept 2026
Quick ratio
1.0x
computed by olivLawbalance sheet at 30 Sept 2026
Cash ratio
unavailable
input data missing

Cash

Operating cash flow
578.8 m USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
496.9 m USD
computed by olivLawTTM to 30 Sept 2026
Free cash flow
81.9 m USD
computed by olivLawTTM to 30 Sept 2026
FCF conversion
unavailable
insufficient data
Cash conversion
477.0%
computed by olivLawTTM to 30 Sept 2026

Efficiency

Days sales outstanding
40 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Days inventory outstanding
16 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Days payables outstanding
48 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Cash conversion cycle
8 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

Market and valuation

Market capitalisation
998.0 m USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-41.5%
computed by olivLawTTM to 30 Sept 2026
P/B
0.8x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
0.3x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
12.2x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
FCF yield
8.2%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
0.0%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 39.6% of at least 60%
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

7.31 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 998.0 m USD

Key indicators

Market capitalisation
998.0 m USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
unavailable
insufficient data
P/B
0.8x
computed by olivLawbalance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
ROE
-28.6%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
-11.4%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
-0.5%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

32/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 30 Oct 2026
Source: SEC (XBRL)published 03 Nov 2026
verified 1235derived 91

Score by group

40% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption

no valuation method could be computed

Multiple comparisons use the SIC vertical: Services-Home Health Care Services (SIC 8082)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 39.6% of at least 60%; valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality-11.4%0 (vs peers)16%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth3.0%25 (on a fixed band)21%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet-3.1x0 (on a fixed band)16%
Current ratio · Balance sheet1.1x27 (on a fixed band)11%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation8.2%100 (on a fixed band)21%
Shareholder yield (distributions) · Returns0.0%0 (on a fixed band)16%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet11/100 · 2/3 factors with a value
  • Growth· partial25/100 · 1/2 factors with a value
  • Quality· partial0/100 · 1/3 factors with a value
  • Returns· partial0/100 · 1/2 factors with a value
  • Valuation· partial100/100 · 1/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

AdaptHealth Corp. (AHCO). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: revenue 3.2 bn USD in 2025; YoY growth -0.5%; net margin -11.4%; ROE -28.6%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (score weight coverage: 39.6% of at least 60%; valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • FCF yield: 8.2%

What contradicts it

  • Net margin: -11.4%
  • Revenue CAGR 3Y: 3.0%
  • Interest coverage: -3.1x
  • Current ratio: 1.1x
  • Shareholder yield (distributions): 0.0%

Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Payout ratio (FCF).

Versus the vertical median

Services-Home Health Care Services (SIC 8082) · same industry (4-digit SIC) · compared with 5 companies

Multiples and returns vs the median

P/E
—
vertical median 22.8x
EV/EBITDA
—
vertical median 15.9x
P/S
0.3x
vertical median 1.2x
below median (−76.6%)
P/B
0.8x
vertical median 6.4x
below median (−87.2%)
ROE
-28.6%
vertical median 20.5%
below median (−239.3%)
Net margin
-11.4%
vertical median 7.4%
below median (−253.8%)
EBIT margin
-8.9%
vertical median 10.3%
below median (−186.6%)
Revenue YoY
-0.5%
vertical median 18.1%
below median (−102.7%)
Net debt/EBITDA
—
vertical median 2.1x
Dividend yield
—
vertical median —

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
BTSGBrightSpring Health Services, Inc.13.9 bn37.820.5%2.7%+28.2%+93% / unavailable
CHEChemed Corporation7.1 bn26.229.1%10.6%+4.1%+25% / −3%
OPCHOption Care Health, Inc.4.7 bn22.816.0%3.7%+13.0%+2% / +6%
AVAHAveanna Healthcare Holdings Inc.3.1 bn11.6199.6%10.6%unavailable+52% / +421%
ADUSAddus HomeCare Corp2.4 bn21.310.0%7.4%+23.2%+6% / +47%
AHCOAdaptHealth Corp.998.0 m—-28.6%-11.4%−0.5%−31% / −14%

1- and 3-year price returns: for AHCO from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 8-K (03 Nov 2026 · results), 10-Q (03 Nov 2026).

    In brief

    AdaptHealth Corp. provides home medical equipment, supplies and related services to patients across the United States, focused on sleep, respiratory and home wellness care. In 2026 it is concentrating its portfolio by agreeing to sell its Diabetes Health business, while Q2 2026 net revenue rose 12.7% to 740.3 million USD 3.

    SWOT

    Strengths

    • An integrated technology platform, a national location network, strong referral relationships and a diversified range of equipment and consumables 1.
    • Strong organic growth in the second quarter of 2026, supported by new capitated contracts and digital expansion of services 3.
    • Portfolio clarification through the planned sale of a business and a focus on core segments 3.

    Weaknesses

    • Reliance on a small number of suppliers for most equipment and consumables exposes the company to price and delivery shocks 1.
    • Capitated contracts where care costs can exceed fixed revenue have already weighed on margins in 2026 3.
    • Large goodwill write-downs signal difficulty in realising value from past acquisitions 3.

    Opportunities

    • A large undiagnosed sleep apnea population could be reached through the home sleep test partnership 3.
    • Consolidation of the HME market could bring acquisitions and new payor contracts as capacity grows 1.
    • Cost reduction from restructuring and automation could improve margins in the coming period 2.

    Threats

    • Reimbursement pressure from Medicare and private payors could reduce revenue per patient 1.
    • A cybersecurity incident could bring remediation costs, penalties and loss of patient trust 2.
    • Competition from non-HME players such as CVS and Amazon could pressure prices in consumables 1.

    Risks

    • Goodwill impairmenthigh

      A further goodwill write-down could weigh on net income if the performance of reporting units weakens 3.

    • Cybersecurity incidenthigh

      Unauthorised access to systems holding patient data could lead to litigation, penalties and unforeseen costs, although the company says a material impact is not reasonably likely 2.

    • Supplier dependencemedium

      Price increases or disruption at key suppliers could reduce margins, as a manufacturer price rise already did in 2026 3.

    • Capitated contract riskmedium

      If care costs exceed fixed payments, results could be hurt, as the West Coast contract difficulties showed 3.

    • Refinancing and debtlow

      If refinancing is not achieved on terms as favourable as before, interest costs could rise 1.

    Investment thesis

    What would need to be true (bull case)

    • If organic growth holds and restructuring lowers costs, the company could recover margin in its core segments 3.
    • The Diabetes Health sale could simplify the portfolio and provide cash to reduce debt 2.
    • Digital platform growth and myAPP user gains could support patient retention and operating efficiency 3.

    What would break the thesis

    • If the revised outlook reflects persistent cost pressure, margins could stay below expectations 3.
    • Dependence on complex capitated contracts and a limited supplier base could amplify operational shocks 1.
    • The cybersecurity incident and any resulting penalties could generate unforeseen costs over the medium term 2.

    What to watch

    • Closing of the Diabetes Health sale and use of proceedsQ1 2027
    • Actual effect of restructuring on costs and margins2027

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 8-K (03 Nov 2026 · results), 10-Q (03 Nov 2026).

    The business

    Revenue combines one-time sales of consumables, fixed monthly equipment reimbursements and at-risk capitation contracts, under which the company receives a fixed amount per member and bears the cost of care 1. Growth has come from acquisitions and new capitated contracts, and a large West Coast contract reached full run-rate in the second quarter of 2026 3.

    Segments

    Sleep Health

    The segment supplies equipment and consumables for obstructive sleep apnea, including CPAP and BiLevel services, and was the largest net sales revenue line in fiscal 2025 at about 1,040.4 million USD 1. It is kept as a core business after the Diabetes Health sale 3.

    Respiratory Health

    The segment provides oxygen and home mechanical ventilation equipment for diseases such as COPD and chronic respiratory failure 1. Fixed monthly equipment reimbursements form a large share of this segment's revenue 1.

    Wellness at Home

    The segment serves patients discharged from acute care and other facilities with home medical equipment and services, and some of its businesses were disposed of in fiscal 2025 1. It remains one of the three reportable segments after the 2026 change 2.

    Market context

    The US home medical equipment market is fragmented and highly competitive, and consolidation continues because technology investment and reimbursement cuts pressure smaller providers 1. Larger providers with integrated technology could gain share as a result 1.

    Demand depends on Medicare, Medicaid and private insurer reimbursement, and on referrals from hospitals, sleep labs and pulmonology practices 1. Federal and state regulation is strict, and non-compliance can bring significant penalties 1.

    Trends

    • Consolidation of the HME markettailwind

      Financial pressure on smaller providers and the advantage of large automated operators could favour companies like AdaptHealth in acquisitions and share gains 1.

    • Inflation and cost pressureheadwind

      Higher costs for materials, labour, shipping and fuel, including effects of the war with Iran on fuel prices, could compress margins if they cannot be passed on to customers 2.

    • Labour shortages and union activityheadwind

      Shortages of qualified staff and wage pressure could raise operating costs, and union activity could add further pressure 1.

    • Wider sleep apnea diagnosismixed

      Adding home sleep testing could help reach a large undiagnosed population if the new partnership meets its goals 3.

    Competitive position

    AdaptHealth competes with large national providers such as Lincare, Rotech, Cardinal Health and Quipt Home Medical, with regional providers such as DASCO, Viemed and Protech, and with product-specific providers such as Inogen and CCS Medical 1. It also competes with non-HME players such as CVS and Amazon 1.

    The key factors are quality of care, referral process efficiency, technology platform, reputation with physicians, payor contracts and ease of doing business 1. The company says it competes favourably on these factors 1.

    • Lincare Holdings

      National home respiratory equipment provider named by the company as a direct HME competitor 1.

    • Rotech Healthcare

      National home medical equipment provider competing in respiratory and sleep categories 1.

    • Cardinal Health

      Large medical distribution company that competes in delivering home equipment and supplies 1.

    • Quipt Home Medical

      National home medical equipment provider competing in the respiratory segment 1.

    News & filings

    In the press

    The latest news item in our archive is from 10 Sept 2026; the newest SEC filing is from 03 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

    SEC filings

    Sources

    1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / AdaptHealth Corp. · 24 Feb 2026
    2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / AdaptHealth Corp. · 04 Aug 2026
    3. [3] Form 8-K, results release (exhibit 99.1) · SEC / AdaptHealth Corp. · 04 Aug 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.