AdaptHealth reported 10.9% year-over-year revenue growth in the third quarter, but Adjusted EBITDA edged lower and the company swung to a net loss, largely because of a goodwill write-down. The home medical equipment and services provider also reported progress on a planned $235 million cash sale of its Diabetes Health business and continued expansion of its health-system and capitated-care relationships.
Third-quarter results
- Revenue rose to $745.6 million from $672.4 million a year earlier. Organic revenue growth was 12.8%, with growth across all reportable segments.
- Net loss attributable to AdaptHealth was $168.2 million, compared with net income of $10.2 million in the prior-year quarter. The loss largely reflected a $184.8 million pre-tax goodwill write-down.
- Adjusted EBITDA was $141.9 million, down 2.9% from $146.1 million a year earlier. Management said the company exceeded its guidance for revenue, Adjusted EBITDA and free cash flow, though it did not provide the guidance figures in the announcement.
- Year-to-date cash flow from operations was $395.6 million, versus $418.6 million in the comparable 2025 period. Free cash flow was $2.6 million, down from $140.1 million. These cash-flow figures include continuing and discontinued operations; the reported revenue and earnings results reflect continuing operations.
Business developments
- AdaptHealth said its exclusive capitated agreement with a large national integrated delivery network was in its second full quarter. Utilization had eased from peak levels, and lower labor costs helped improve the contract’s profitability sequentially. The partnership made a positive contribution to company-wide Adjusted EBITDA in the quarter.
- The company signed preferred-provider agreements with four health systems and added two smaller regional health-plan arrangements—one new agreement and one expansion of an existing relationship.
- Registered users of AdaptHealth’s myAPP platform exceeded 615,000, about 88% above the year-end 2025 level. The company also completed more than 12,600 patient scans using its AI-powered mask-fitting tool.
- The planned sale of Diabetes Health for $235 million in cash cleared the Hart-Scott-Rodino waiting period. AdaptHealth said the deal remained on track to close in early 2027, subject to other regulatory approvals and customary closing conditions.
What changes for investors
The planned Diabetes Health sale would bring in cash and leave AdaptHealth with a more focused business portfolio once it closes. For the quarter, strong organic revenue growth coexisted with slightly lower Adjusted EBITDA, while the goodwill write-down drove the reported net loss. The year-to-date free-cash-flow figure was also substantially below the prior-year comparison.