Why AdaptHealth (AHCO) Stock Is Nosediving

What Happened?

Shares of healthcare services provider AdaptHealth Corp. (NASDAQ:AHCO) fell 16.4% in the afternoon session after its fourth-quarter 2025 report revealed a significant loss that overshadowed a revenue beat. While total revenue of $846.3 million surpassed analyst expectations, investors focused on substantial profitability challenges. The company posted a GAAP loss of $0.76 per share, which starkly missed Wall Street's consensus estimate for a $0.35 profit and reversed the $0.37 profit per share reported in the same quarter of the previous year. Highlighting the pressure on profits, the operating margin contracted to negative 8.7% from a positive 11.4% a year ago. Additionally, adjusted EBITDA, a measure of operational profitability, came in at $163.1 million, missing analyst forecasts by over 14%.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy AdaptHealth? Access our full analysis report here, it’s free.

What Is The Market Telling Us

AdaptHealth’s shares are quite volatile and have had 19 moves greater than 5% over the last year. But moves this big are rare even for AdaptHealth and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 12 months ago when the stock gained 28% on the news that the company reported strong fourth-quarter 2024 results with revenue surpassing forecasts and driving EPS well above Wall Street estimates. While full-year revenue guidance came in slightly below expectations, full-year EBITDA guidance exceeded projections. Overall, this quarter had some key positives.

AdaptHealth is down 11.1% since the beginning of the year, and at $8.60 per share, it is trading 24.5% below its 52-week high of $11.38 from February 2025. Investors who bought $1,000 worth of AdaptHealth’s shares 5 years ago would now be looking at an investment worth $266.55.

The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. Click here for access to our special report that reveals one profitable leader already riding this wave, it’s free.