AdaptHealth

AHCO Q1 2025 Earnings

Reported May 6, 2025 at 7:07 AM ET · SEC Source

Q1 25 EPS

$-0.05

MISS 225.00%

Est. $0.04

Q1 25 Revenue

$777.9M

BEAT +1.71%

Est. $764.8M

vs S&P Since Q1 25

-22.0%

TRAILING MARKET

AHCO +9.2% vs S&P +31.3%

Market Reaction

Did AHCO Beat Earnings? Q1 2025 Results

AdaptHealth delivered a split verdict in Q1 2025, posting revenue of $777.88 million that edged past the $764.77 million consensus by 1.71% and surged 30.9% year-over-year, yet stumbled badly on the bottom line, reporting an EPS of -$0.05 against an … Read more AdaptHealth delivered a split verdict in Q1 2025, posting revenue of $777.88 million that edged past the $764.77 million consensus by 1.71% and surged 30.9% year-over-year, yet stumbled badly on the bottom line, reporting an EPS of -$0.05 against an expected $0.04, a miss of 225.00%. The earnings shortfall was rooted in meaningful profitability compression, with Adjusted EBITDA falling 19.3% to $127.94 million and margins contracting to 16.4% from 20.0% a year earlier, as higher costs of net revenue weighed heavily on operating income. A bright spot was cash flow from operations, which nearly doubled to $95.53 million, reflecting tighter working capital management. Strategically, AdaptHealth continued reshaping its portfolio through asset divestitures in its Wellness at Home segment, which prompted a modest trim to full-year guidance, with net revenue now expected between $3.18 billion and $3.32 billion and Adjusted EBITDA between $665 million and $705 million, while free cash flow guidance of $180 million to $220 million held firm. Reports of a new DME acquisition suggest the company is quietly balancing dispositions with selective growth moves.

Key Takeaways

  • Diabetes Health segment showed signs of improvement for second consecutive quarter
  • Operating cash flow nearly doubled year-over-year to $95.5 million
  • Cost of net revenue increased to $657.4 million from $635.0 million, pressuring margins
  • Adjusted EBITDA margin contracted to 16.4% from 20.0%
24/7 Wall St

AHCO YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

“Amid elevated uncertainty in the external environment, we at AdaptHealth have stayed the course, with a relentless focus on improving our business and providing exceptional service to the 4.2 million patients that depend on us.”

— Suzanne Foster, Q1 2025 Earnings Press Release