The earnings call presented a mixed picture with solid growth and technological advancements in sleep and respiratory segments, successful debt reduction, and cash flow improvements. However, these positives were offset by significant challenges in the diabetes segment, leading to lowered guidance and operational restructuring. The sentiment is weighed down by the diabetes segment's performance issues.

Company Guidance

During the third quarter 2024 earnings call for AdaptHealth, the executives provided a detailed outlook on the company’s performance and future guidance. Revenue was reported at $805.9 million, showing a slight increase of 0.2% compared to the same period in 2023. The company highlighted growth in its sleep and respiratory product lines, which increased by 3.5% and 8.6% respectively. However, the diabetes segment saw a decline of 11.8%, prompting a downward adjustment in guidance for the remainder of the year. Adjusted EBITDA for the quarter stood at $164.3 million with a margin of 20.4%, improving slightly year-over-year. Free cash flow exceeded expectations at $84.8 million, leading to an increase in full-year guidance. AdaptHealth also announced a new multiyear target to reduce net leverage to 2.5 times. To address operational challenges, particularly in diabetes, the company initiated leadership changes and integrated its diabetes resupply operations with its successful sleep resupply center. The company is also exploring technology enhancements such as AI to improve efficiency, aiming to maintain its leadership in sleep and respiratory while addressing diabetes performance issues.

Sleep and Respiratory Growth

Sleep revenue increased by 3.5% and respiratory revenue increased by 8.6% compared to the previous year, maintaining solid performance in these key segments.

Successful Debt Reduction

AdaptHealth paid down an additional $50 million of debt and achieved a net leverage ratio of 2.87x, introducing a new multiyear net leverage target of 2.5x.

Technological Advancements

The company successfully implemented AI and automation to improve workflow accuracy to 99.6%, enhancing operational efficiency.

Refinancing and Strengthening Financial Position

Completed the refinancing of a $950 million senior secured credit facility, improving interest rate pricing and extending maturity to September 2029.

Positive Free Cash Flow

Free cash flow outperformed targets, reaching $84.8 million for the quarter, leading to an upward revision of full-year guidance.

---

AdaptHealth (AHCO) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

AHCO Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Mar 04, 2025	2024 (Q4)	0.28 / -	0.556	―	―	―
Nov 05, 2024	2024 (Q3)	0.19 / 0.22	0.415	-46.02% (-0.19)	―
Aug 06, 2024	2024 (Q2)	0.19 / 0.22	0.228	-5.26% (-0.01)	―
May 07, 2024	2024 (Q1)	0.06 / 0.09	0.051	82.35% (+0.04)	―
Feb 27, 2024	2023 (Q4)	0.19 / 0.56	0.054	929.63% (+0.50)	―
Nov 07, 2023	2023 (Q3)	0.20 / 0.41	0.22	88.64% (+0.19)
Aug 08, 2023	2023 (Q2)	0.13 / 0.23	0.182	25.27% (+0.05)
May 09, 2023	2023 (Q1)	0.10 / 0.05	0.203	-74.88% (-0.15)	―
Feb 27, 2023	2022 (Q4)	0.31 / 0.05	0.289	-81.31% (-0.23)
Nov 08, 2022	2022 (Q3)	0.31 / 0.22	0.341	-35.48% (-0.12)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

---

AHCO Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 05, 2024	$10.15	$9.18	-9.56%
Aug 06, 2024	$10.97	$8.66	-21.06%
May 07, 2024	$10.60	$9.76	-7.92%
Feb 27, 2024	$7.63	$10.00	+31.06%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

---