AHCO — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop
AdaptHealth grew Q2 2026 revenue 12.7% to $740.3M on new capitated contracts, but adjusted EBITDA margin fell to 17.8%, a $144.2M goodwill charge drove a net loss, free cash flow turned negative, and it cut 2026 guidance while selling Diabetes Health for $235M.
- Revenue
- $740M
- +12.7% YoY
- Net income
- -$145M
- Diluted EPS
- $-1.07
- Operating margin
- -18.6%
This period vs a year ago
- Same period last year
- This period
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Q2 2026: revenue up 12.7%, profit squeezed by a big new contract, guidance cut and Diabetes sold
AdaptHealth rents and sells home medical equipment (CPAP sleep-apnea machines and their masks and supplies, home oxygen, hospital beds, wheelchairs) to about 4.8 million patients a year, paid mostly by private insurers and Medicare/Medicaid. In the second quarter of 2026, revenue from continuing operations rose 12.7% to $740.3 million, but the company reported a net loss from continuing operations of $145.3 million (−$1.07 per share), against a $4.2 million profit a year earlier. Most of that loss is a $144.2 million non-cash goodwill write-down. Below that charge, the underlying profit also fell: adjusted EBITDA (earnings before interest, tax, depreciation and amortization, excluding one-off items; the company's main profit measure) dropped 3.2% to $132.0 million, and its margin fell from 20.8% to 17.8% of revenue.
The main cause is a large new "capitated" contract with a West Coast health system that reached full scale this quarter. Under capitation, AdaptHealth receives a fixed monthly fee per covered member instead of billing each item, so revenue arrives quickly but AdaptHealth bears the cost of serving every patient. In July the company agreed to sell its Diabetes Health business (glucose monitors and insulin pumps) to Cardinal Health for $235 million, and it cut its full-year outlook.
At a glance
- Organic revenue growth was 15.9% (growth from the existing business, excluding acquisitions and businesses sold). That is fast for home medical equipment, and almost all of it came from capitated contracts.
- Adjusted EBITDA margin fell 3.0 points to 17.8%. The company added revenue but kept less of each dollar, because labor, delivery and equipment costs for the new contract grew faster than the fees it brings in.
- Free cash flow was −$48.4 million for the first half, compared with +$73.3 million a year earlier. Spending on patient equipment for the new contracts outran the cash the business generated.
The numbers
Figures are for continuing operations (Diabetes Health is excluded from both years), in US$ millions except per-share figures.
| Metric | Q2 2026 |
|---|