AdaptHealth Corp. (NASDAQ:AHCO) shares plunged nearly 13% in pre-market trading after the home medical equipment provider reported second-quarter 2026 results that fell short of Wall Street expectations and sharply reduced its financial outlook for the year.
The weaker-than-expected performance was accompanied by lower guidance for revenue, adjusted EBITDA and free cash flow.
Earnings and Revenue Miss Forecasts
AdaptHealth reported a quarterly loss of $0.99 per share, compared with analyst expectations for earnings of $0.15 per share.
Revenue totalled $740.3 million, missing the consensus estimate of $848.89 million. Despite the shortfall, sales were 12.7% higher than the $657.1 million reported in the same quarter last year.
The company also recorded organic revenue growth of 15.9% across all of its business segments.
CEO Points to Strong Demand but Margin Pressure
Chief Executive Officer Suzanne Foster said demand remained robust despite operational challenges.
“The company delivered 15.9% organic growth, with record volume gains across the business,” Foster said, adding that “the complexity of that transition has impacted our margins.”
Company Cuts Full-Year Outlook
AdaptHealth significantly lowered its fiscal 2026 guidance.
The company now expects revenue of between $2.85 billion and $2.89 billion, well below the analyst consensus estimate of approximately $3.486 billion.
Management also reduced its adjusted EBITDA forecast to a range of $490 million to $520 million and lowered its free cash flow guidance to between $80 million and $120 million.
Multiple Factors Weigh on Outlook
The revised guidance reflects a number of headwinds affecting the business.
AdaptHealth said the sale of its Diabetes Health business, which is now classified as discontinued operations, will reduce reported revenue by approximately $100 million, including $60 million of corporate overhead that will remain with the company.
Additional pressures include a $55 million impact from a capitated contract on the U.S. West Coast, approximately $30 million in manufacturer price increases and a further $15 million related to other portfolio actions.
Impairment Charge Drives Net Loss
Adjusted EBITDA declined 3.2% year over year to $132.0 million from $136.4 million.
The company reported a net loss of $145.3 million, compared with net income of $4.2 million in the prior-year period.
The deterioration was primarily driven by a goodwill impairment charge of $144.2 million.
Following the end of the quarter, AdaptHealth entered into a definitive agreement to sell its Diabetes Health business for $235.0 million in cash and announced the creation of a joint venture combining its eCommerce assets with a leading sleep products retailer.
AdaptHealth stock price
