AdaptHealth Raises 2026 Adjusted EBITDA Outlook With Diabetes Sale Pending

The Tip Desk · November 10, 2026 · 3 min read

The home medical equipment provider posted $745.6 million of third-quarter revenue and lifted continuing-operations Adjusted EBITDA guidance to $510 million–$525 million. A $184.8 million pre-tax goodwill write-down contributed to a $154.0 million net loss attributable to AdaptHealth.

AdaptHealth Corp. (AHCO) reported net revenue of $745.6 million for the third quarter ended September 30, 2026, up 10.9% from $672.4 million a year earlier, and said it exceeded its guidance for revenue, Adjusted EBITDA and free cash flow. A $184.8 million pre-tax goodwill write-down contributed to a net loss attributable to AdaptHealth of $154.0 million.

Organic revenue growth slowed to 12.8% from 15.9% in the second quarter, after 9.1% in the first quarter. The company said growth continued across each of its reportable segments.

Adjusted EBITDA was $141.9 million, down 2.9% from $146.1 million a year earlier, with Adjusted EBITDA margin of 19.0% versus 21.7%. Sequentially, Adjusted EBITDA rose from $132.0 million in the second quarter, after $121.2 million in the first quarter.

Net loss attributable to AdaptHealth Corp. was $154.0 million, versus net income of $24.5 million a year earlier, largely from a $184.8 million pre-tax goodwill write-down. The company said the non-cash impairment resulted from the fair values of the Respiratory Health and Wellness at Home reporting units being less than their carrying values. A $144.2 million pre-tax goodwill write-down had been recorded in the second quarter.

Chief Executive Officer Suzanne Foster said the exclusive capitated partnership made a positive contribution to enterprise Adjusted EBITDA, driven by a tighter labor model and lower costs to serve. The company said the second full quarter of that agreement with a large national integrated delivery network saw utilization lower than peak levels and reduced labor costs driving a sequential improvement in contract profitability.

In July 2026, AdaptHealth entered a definitive agreement to sell the Diabetes Health business for $235.0 million in cash, subject to customary purchase price adjustments. The Hart-Scott-Rodino waiting period cleared, and the company said the transaction is on track to close in early 2027, subject to certain regulatory approvals and other customary closing conditions. Diabetes Health is now reported as discontinued operations.

The company also signed preferred-provider agreements with four health systems and broadened its capitated portfolio through two smaller agreements with regional health plans, one new and one expanded. Registered myAPP users grew to more than 615,000, up approximately 88% from year-end 2025, after more than 512,000 users in the second quarter. AdaptHealth completed more than 12,600 patient scans with its AI-powered mask-fitting tool.

Free cash flow was $51.1 million in the third quarter, down from $66.8 million a year earlier. For the nine months ended September 30, cash flow from operations was $395.6 million, down from $418.6 million in the comparable 2025 period, and free cash flow was $2.6 million versus $140.1 million a year earlier. Cash was $80.7 million at September 30.

On a continuing-operations basis, which excludes Diabetes Health except for free cash flow, the company revised fiscal 2026 guidance to net revenue of $2.88 billion to $2.90 billion, from $2.85 billion to $2.89 billion; Adjusted EBITDA of $510 million to $525 million, from $490 million to $520 million; and free cash flow of $50 million to $75 million, from $80 million to $120 million.

Foster said the business is stabilizing as the company works through a period of transformation, and that it looks forward to carrying that momentum into 2027.