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AdaptHealth Corp.
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$818M
Market Cap
15.6
P/E
1.06
PEG
5.9%
ROCE
-4.3%
ROE
1.25
D/E
6.3%
OPM
-54.1%
% from 52W High
20
α RS
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📈 Price History
Ratio Health
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About

AdaptHealth Corp., together with its subsidiaries, distributes home medical equipment (HME), medical supplies, and home and related services in the United States. It operates through Sleep Health, Respiratory Health, Diabetes Health, and Wellness at Home segments. The company offers sleep therapy equipment, supplies, and related services, such as continuous positive airway pressure and BiLevel services to individuals suffering from obstructive sleep apnea; oxygen and home mechanical ventilation equipment and supplies and related chronic therapy services; and medical devices, including continuous glucose monitors and insulin pumps for the treatment of diabetes; HME to patients discharged from acute care and other facilities; and other HME devices and supplies. It also provides PAP machines, wheelchairs, hospital beds, oxygen concentrators, ventilators, insulin pumps, diabetes management and wound care supplies, orthopedic bracing, breast pumps and supplies, walkers, commodes, enteral supplies, and incontinence supplies. The company services beneficiaries of Medicare, Medicaid, and commercial insurance payors. AdaptHealth Corp. was founded in 2012 and is headquartered in Conshohocken, Pennsylvania.

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⭐ Superinvestors Holding AHCO
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 228.4K $2.7M 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED AdaptHealth completed largest HME patient transition in Q1 2026, revenue $819.8M
Revenue & Profitability
First quarter 2026 net revenue was $819.8 million, up 5.4% year-over-year (9.1% organic growth). Adjusted EBITDA was $121.2 million (14.8% margin), $7 million below guidance due to $12 million in elevated labor costs from the capitated transition. Free cash flow was negative $27.5 million, driven by $121.2 million in capital expenditures for inventory startup. Full year 2026 guidance: revenue $3.45-$3.52 billion, adjusted EBITDA $680-$730 million, free cash flow $175-$225 million.
Outlook
Management sees favorable industry dynamics for scaled operators, with increasing payer interest in capitated arrangements to align incentives and lower costs. The regulatory environment is evolving to root out fraud and abuse, benefiting compliant companies like AdaptHealth. Demand for sleep therapy is expected to grow as awareness of OSA rises (80% undiagnosed), supported by home sleep studies and wearable devices. A mild flu season impacted respiratory volumes but wasn't quantified.
Growth Drivers
Key growth drivers include the new capitated contract (contributing ~500 bps organic growth in Q1), strong performance in Sleep Health (PAP new starts at record levels), Respiratory Health (oxygen new starts up 12.8%), and Diabetes Health (resupply improvements). The company is expanding geographically via de novo locations and plans to leverage its existing footprint for future capitated wins. Tuck-in acquisitions in Sleep and Respiratory are targeted for attractive geographies.
Balance Sheet & CapEx
Q1 2026 capital expenditures were $121.2 million, primarily for patient equipment startup inventory to support the new capitated contract. CapEx is expected to normalize in the back half of the year, with free cash flow turning strongly positive in Q3 and Q4 (each ~$100 million). The company is investing in AI and digital platforms, moving beyond pilot to live operations in scheduling and resupply. Full year free cash flow guidance is maintained at $175-$225 million.
Margins
Adjusted EBITDA margin was 14.8% in Q1 2026 due to elevated labor costs from the capitated transition. Q2 2026 is guided at approximately 19% margin, driven by a full quarter of high-margin capitated revenue and cost controls. Full year 2026 midpoint implies just over 20% margin. Management expects to hold and slightly improve margins into 2027 as transition-related labor costs are eliminated and technology benefits scale.
Key Risks
Risks flagged include elevated labor costs from the capitated transition ($12 million in Q1), which management expects to normalize by Q3. The transition required accelerated go-live, leading to duplication of onboarding and heavier variable labor. No changes in sleep apnea coverage among payers were noted. The company highlighted the complexity of implementing capitated agreements and the need for nationwide coverage and technology.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-04
Organic growth reached 16% with strong gains in Sleep and Respiratory Health, but profitability was pressured by West Coast contract inefficiencies and a sudden supplier price hike. Strategic divestitures and restructuring are expected to improve margins and focus future growth.
Q1 2026 Q1 2026 2026-05-05
Revenue and organic growth exceeded guidance, driven by a major capitated contract and strong segment performance. Labor and startup costs impacted Q1 margins, but normalization and full contract ramp are expected to boost profitability and cash flow in the coming quarters.
Q4 2025 Q4 2025 2026-02-24
2025 saw record patient census, strong operational improvements, and the launch of the largest industry capitated contract, driving revenue and margin growth. Guidance for 2026 anticipates 6–8% revenue growth, margin expansion, and continued debt reduction, supported by technology and strategic acquisitions.
Q3 2025 Q3 2025 2025-11-04
Q3 2025 delivered strong organic growth, record patient census in key segments, and improved profitability, driven by operational enhancements and new exclusive capitated contracts. Debt reduction and investments in technology and infrastructure position the company for accelerated growth in 2026.
Q2 2025 Q2 2025 2025-08-05
Q2 2025 saw stable revenue and strong free cash flow, with a major five-year capitation contract set to drive future growth. Segment performance was mixed, but momentum is building, especially in sleep and diabetes health. Net leverage improved, and guidance for 2025 was reaffirmed.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
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Information Sources:
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