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1. Company Snapshot

1.a. Company Description

AdaptHealth Corp., together with its subsidiaries, provides home medical equipment (HME), medical supplies, and home and related services in the United States.The company provides sleep therapy equipment, supplies, and related services, such as CPAP and bi-PAP services to individuals suffering from obstructive sleep apnea; medical devices and supplies, including continuous glucose monitors and insulin pumps to patients for the treatment of diabetes; HME to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home; and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy, and nutritional supply needs.It serves beneficiaries of Medicare, Medicaid, and commercial insurance payors.


AdaptHealth Corp.is headquartered in Plymouth Meeting, Pennsylvania.

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1.b. Last Insights on AHCO

AdaptHealth Corp.'s recent performance was driven by strong Q4 earnings and revenue beat, exceeding expectations with a quarterly earnings of $0.39 per share. The company reported a record 12.3% operating income margin, driven by its focus on sleep therapy equipment and respiratory health segments, which command the best margins. The Q4 2024 results also led to a 30% stock surge, indicating a positive trend. Additionally, the company's strong cash flow generation and potential for future growth have been highlighted by analysts, making it an attractive option for value investors.

1.c. Company Highlights

2. AdaptHealth Posts Solid Q3 2025 Earnings, Driven by Organic Growth

AdaptHealth reported a 1.8% increase in revenue to $820.3 million, with organic growth at 5.1%, driven by strength across all four reportable segments. Adjusted EBITDA was $170.1 million, up 3.5% from the prior year quarter, and adjusted EBITDA margin was 20.7%, up 30 basis points from 20.4% in Q3 2024. The company's actual EPS came out at $0.22, slightly below estimates of $0.24. The company's cash flow from operations was $161.1 million, with capEx of $94.2 million and free cash flow of $66.8 million.

Publication Date: Nov -29

📋 Highlights
  • Revenue Growth & Organic Performance:: Net revenue rose 1.8% to $820.3M, with 5.1% organic growth driven by all four segments, including a 7% increase in Sleep new starts.
  • Adjusted EBITDA & Margin Expansion:: Adjusted EBITDA reached $170.1M (+3.5 YoY), with margins improving 30 bps to 20.7%, reflecting operational efficiency gains.
  • Debt Reduction Progress:: $50M debt reduction in Q3 2025, totaling $225M year-to-date, signaling improved financial flexibility and disciplined capital management.
  • Capitated Agreement Infrastructure:: $1,200 employees, 30 locations, and 300 vehicles will be deployed to support a new exclusive capitated contract, targeting 2026 revenue ramp-up.
  • 2025–2026 Guidance:: Full-year 2025 revenue growth projected at 6–8%, with 2026 adjusted EBITDA margin expected to improve by 50 bps, driven by operational efficiencies and new contract benefits.

Operational Highlights

The company reported significant operational progress, including a 7% increase in Sleep new starts and record patient census in both Sleep and Respiratory Health. Suzanne Foster, CEO, noted that the company is moving quickly to establish the infrastructure required to service its recently announced exclusive capitated agreement with a large integrated delivery network, which will require approximately 1,200 employees, 30 locations, and 300 vehicles.

Guidance and Outlook

Jason Clemens, CFO, provided guidance for the remainder of 2025 and 2026, stating that the company expects revenue growth of 6% to 8% over full year 2025, with adjusted EBITDA margin expected to be approximately 50 basis points better than 2025. For 2026, the company expects revenue growth of 6% to 8%, with modest growth in Sleep, normalization in Respiratory, and steady and stable revenue in Diabetes and Wellness.

Valuation and Growth Prospects

With a P/E Ratio of 15.9 and an EV/EBITDA of 2.47, the market appears to have a relatively optimistic view of the company's growth prospects. Analysts estimate next year's revenue growth at 6.5%, which is within the company's guidance range. The company's ROIC of 3.93% and ROE of 5.18% indicate a relatively modest return on capital, but the Free Cash Flow Yield of 16.3% suggests a attractive return for investors. As the company continues to execute on its operational efficiency initiatives and expand its capitated agreements, investors will be watching to see if the company can deliver on its growth promises.

3. NewsRoom

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HALPER SADEH LLC ENCOURAGES LIVE NATION ENTERTAINMENT, INC. SHAREHOLDERS TO CONTACT THE FIRM TO DISCUSS THEIR RIGHTS

Dec -05

Source: prnewswire.com

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Traders Buy Large Volume of Call Options on AdaptHealth (NASDAQ:AHCO)

Dec -04

Source: defenseworld.net

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AdaptHealth Corp. $AHCO Shares Sold by Ensign Peak Advisors Inc

Dec -01

Source: defenseworld.net

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AdaptHealth Corp. (AHCO) Presents at UBS Global Healthcare Conference 2025 Transcript

Nov -11

Source: seekingalpha.com

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AdaptHealth Corp. (AHCO) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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AdaptHealth Corp. (AHCO) Misses Q3 Earnings Estimates

Nov -04

Source: zacks.com

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Halper Sadeh LLC Encourages AdaptHealth Corp. Shareholders to Contact the Firm to Discuss Their Rights

Oct -27

Source: businesswire.com

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New Strong Sell Stocks for September 22nd

Sep -22

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.09%)

6. Segments

Sleep

Expected Growth: 12%

AdaptHealth Corp's Sleep segment growth is driven by increasing demand for sleep therapy and respiratory products, expansion into new markets, strategic acquisitions, and investments in digital health technologies. Additionally, the growing prevalence of sleep disorders, such as sleep apnea, and the need for remote patient monitoring solutions also contribute to the segment's 12% growth.

Diabetes

Expected Growth: 13%

AdaptHealth Corp's 13% growth in Diabetes segment is driven by increasing demand for continuous glucose monitoring systems, expanding insulin pump market, and growing adoption of digital health technologies. Additionally, rising prevalence of diabetes, aging population, and favorable reimbursement policies contribute to the segment's growth.

Respiratory

Expected Growth: 11%

AdaptHealth Corp.'s Respiratory segment growth is driven by increasing demand for home-based care, aging population, and rising prevalence of chronic respiratory diseases. Additionally, the company's strategic acquisitions, expanded product offerings, and investments in digital health technologies are contributing to the 11% growth rate.

Other

Expected Growth: 10%

AdaptHealth Corp's 10% growth is driven by increasing demand for home healthcare services, expansion into new markets, strategic acquisitions, and investments in technology and operational efficiencies. Additionally, the company's diversified product offerings and strong relationships with healthcare providers contribute to its growth momentum.

Home Medical Equipment

Expected Growth: 15%

AdaptHealth Corp's Home Medical Equipment segment growth is driven by increasing demand for home-based care, aging population, and chronic disease prevalence. Additionally, the shift towards value-based care, expansion of Medicare Advantage, and investments in digital health technologies are contributing to the 15% growth rate.

Supplies to the Home

Expected Growth: 13%

AdaptHealth Corp's 13% growth in Supplies to the Home segment is driven by increasing demand for home healthcare, expansion of product offerings, and strategic acquisitions. Additionally, the company's focus on patient-centric care, investments in digital infrastructure, and partnerships with healthcare providers have contributed to this growth.

7. Detailed Products

Respiratory Therapy

AdaptHealth Corp. offers a range of respiratory therapy products and services, including oxygen therapy, non-invasive ventilation, and sleep therapy.

Sleep Therapy

The company provides sleep therapy products and services, including CPAP and BiPAP machines, masks, and accessories.

Mobility and Rehabilitation

AdaptHealth Corp. offers a range of mobility and rehabilitation products, including wheelchairs, walkers, and orthotics.

Wound Care

The company provides wound care products and services, including negative pressure wound therapy and debridement.

Enteral Nutrition

AdaptHealth Corp. offers enteral nutrition products and services, including tube feeding supplies and nutritional formulas.

Home Medical Equipment

The company provides a range of home medical equipment, including hospital beds, wheelchairs, and oxygen concentrators.

8. AdaptHealth Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

AdaptHealth Corp. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's focus on providing specialized medical equipment and services, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

AdaptHealth Corp.'s customers are largely dependent on the company's products and services, giving them limited bargaining power. Additionally, the company's diversified customer base reduces the impact of any single customer's bargaining power.

Bargaining Power Of Suppliers

AdaptHealth Corp. relies on a diverse range of suppliers, reducing the bargaining power of any single supplier. However, the company's dependence on certain suppliers for critical components may give them some bargaining power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the medical equipment and services industry, including regulatory hurdles and the need for significant capital investment.

Intensity Of Rivalry

The medical equipment and services industry is highly competitive, with many established players competing for market share. AdaptHealth Corp. must continually innovate and improve its offerings to maintain its competitive position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 59.99%
Debt Cost 6.17%
Equity Weight 40.01%
Equity Cost 9.67%
WACC 7.58%
Leverage 149.91%

11. Quality Control: AdaptHealth Corp. passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Hyperfine

A-Score: 4.7/10

Value: 6.8

Growth: 7.4

Quality: 4.0

Yield: 0.0

Momentum: 9.0

Volatility: 0.7

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Treace Medical Concepts

A-Score: 4.4/10

Value: 7.4

Growth: 3.3

Quality: 4.6

Yield: 0.0

Momentum: 8.0

Volatility: 3.0

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AdaptHealth

A-Score: 4.3/10

Value: 8.0

Growth: 6.4

Quality: 3.7

Yield: 0.0

Momentum: 4.0

Volatility: 3.7

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Apyx Medical

A-Score: 3.9/10

Value: 6.8

Growth: 2.9

Quality: 3.6

Yield: 0.0

Momentum: 9.5

Volatility: 0.7

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CVRx

A-Score: 3.5/10

Value: 6.8

Growth: 4.7

Quality: 3.8

Yield: 0.0

Momentum: 5.0

Volatility: 1.0

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Cytosorbents

A-Score: 3.4/10

Value: 7.6

Growth: 4.7

Quality: 3.9

Yield: 0.0

Momentum: 3.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.27$

Current Price

10.27$

Potential

-0.00%

Expected Cash-Flows