AdaptHealth Corp
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.07%.
Did AHCO Beat Earnings? Q2 2025 Results
AdaptHealth fell short of Wall Street expectations in Q2 2025, delivering earnings of $0.10 per share against a consensus estimate of $0.16, a miss of 36.79%, while revenue of $800.37 million edged just 0.43% below the $803.80 million forecast despite growing 34.5% year over year. The headline disappointment was driven largely by margin compression, as cost of net revenue climbed to $645.71 million even as top-line results softened, pushing Adjusted EBITDA down 5.9% to $155.54 million and squeezing the Adjusted EBITDA margin to 19.4% from 20.5% a year ago. A surge in income tax expense to $35.89 million, tied partly to gains on divested incontinence and infusion assets, further weighed on net income, which fell to $14.67 million from $19.43 million. On the forward-looking side, AdaptHealth narrowed its full-year revenue guidance to $3.18 billion to $3.26 billion while trimming its Adjusted EBITDA outlook to $642 million to $682 million, signaling continued near-term pressure even as management pointed to a new capitated partnership with a major national healthcare system as a long-term growth catalyst.
- New capitated partnership with a major national healthcare system
- Multiple initiatives to boost operating efficiency and expand profit margins
- Rapid progress in debt reduction and financial position strengthening
- Gain on sale of incontinence and infusion assets in Wellness at Home segment
“AdaptHealth's momentum continues to build. We delivered another quarter of solid results in the second quarter. We are driving revenue growth, underscored by today's milestone announcement of a new capitated partnership with a major national healthcare system. We are advancing multiple initiatives to boost operating efficiency, elevate the patient experience, and expand our profit margins. And we are making rapid progress reducing debt and fortifying our financial position. Step by step, we are executing on a focused plan to unlock the full value of our enterprise, guided by our dedication to providing exceptional service to the 4.2 million patients that depend on us.”
AdaptHealth CEO, on the earnings call
Forward Guidance & Outlook
AdaptHealth updated its fiscal year 2025 guidance: net revenue of $3.18 billion to $3.26 billion (narrowed from $3.15 billion to $3.29 billion), Adjusted EBITDA of $642 million to $682 million (lowered from $662 million to $702 million), and free cash flow of $170 million to $190 million (unchanged).
AHCO YoY Financials
Figures from SEC filings and company reports. Not investment advice.