Company Overview - AdaptHealth Corp. (AHCO) is experiencing significant attention from investors due to high implied volatility in its options market, particularly the Jan 16, 2026 $2.5 Call option [1] - The company currently holds a Zacks Rank of 5 (Strong Sell) within the Medical – Products industry, which is positioned in the top 36% of the Zacks Industry Rank [3] Analyst Sentiment - Over the past 60 days, no analysts have increased earnings estimates for AdaptHealth for the current quarter, while one analyst has decreased the estimates, resulting in a consensus estimate drop from 16 cents per share to 15 cents [3] Market Expectations - The high implied volatility suggests that options traders are anticipating a significant price movement for AdaptHealth shares, potentially indicating an upcoming event that could lead to a major rally or sell-off [2][4] - Options traders often seek to capitalize on high implied volatility by selling premium, aiming for the underlying stock to not move as much as expected by expiration [4]

Group 1 - U.S. stock futures are higher, with Dow futures gaining over 100 points [1] - Concentrix Corporation reported quarterly earnings of $2.70 per share, missing the analyst consensus estimate of $2.75, while quarterly revenue was $2.42 billion, exceeding the Street estimate of $2.38 billion [1] - Concentrix shares fell 8% to $50.70 in pre-market trading [1] Group 2 - CorMedix Inc. declined 14.2% to $12.83 after announcing an $85 million public offering [4] - Critical Metals Corp. fell 14.2% to $3.14 after a previous surge of over 32% [4] - AdaptHealth Corp. decreased 8.6% to $8.61 after gaining around 5% on the previous day [4] - USA Rare Earth, Inc. declined 8.4% to $11.65 [4] - Gold Fields Limited fell 5.1% to $22.60 [4] - OMS Energy Technologies Inc. decreased 4.6% to $6.80 [4]

Group 1 - Seeking Alpha welcomes Matthew J Smith as a new contributing analyst, encouraging others to share investment ideas for publication and potential earnings [1] - The platform offers opportunities for contributors to unlock exclusive access to SA Premium by submitting articles [1] Group 2 - The article does not provide any specific company or industry analysis, nor does it include any financial data or performance metrics [2][3]

AdaptHealth (AHCO) 2025 Conference May 21, 2025 08:00 AM ET Speaker0 Relations in the room. Thank you guys very much for joining us. Thanks for having us, Ben. Yeah. I just wanted to kinda recap some of the dynamics that are going on in the quarter. Diabetes revenue declined 8%, but it's largely as expected. We're doing a overhaul of that segment, but you noticed some better than expected sequential developments and setups. Maybe you can kinda walk us through what you're seeing and and kinda how we you're f ...

Financial Performance - Net revenue for the three months ended March 31, 2025, was $777,882, a decrease of 1% from $792,497 in the same period of 2024[20]. - Operating income decreased to $23,170 for Q1 2025, down 54% from $50,531 in Q1 2024[20]. - Net loss attributable to AdaptHealth Corp. was $7,207 for Q1 2025, compared to a net loss of $2,134 in Q1 2024, representing a significant increase in losses[20]. - The company reported a comprehensive loss of $6,754 for Q1 2025, compared to a comprehensive loss of $253 in Q1 2024[22]. - The net loss for the three months ended March 31, 2025, was $6,079,000, compared to a net loss of $1,109,000 for the same period in 2024[26]. - Adjusted EBITDA for the three months ended March 31, 2025, was $127,938,000, down from $158,485,000 in the same period of 2024, indicating a decline of about 19.3%[100]. - The diluted net loss per share for the three months ended March 31, 2025, was $(0.05), consistent with the diluted net loss per share for the same period in 2024[154]. Revenue Breakdown - For the three months ended March 31, 2025, total net revenue was $777.9 million, a decrease of 1.8% from $792.5 million in the same period of 2024[73]. - Insurance revenue for the three months ended March 31, 2025, was $454.2 million, down 6.0% from $483.4 million in 2024[73]. - Patient pay revenue increased by 14.0% to $126.2 million in Q1 2025, compared to $110.7 million in Q1 2024[73]. - Net sales revenue from Sleep Health segment was $241.2 million in Q1 2025, slightly up from $237.6 million in Q1 2024[75]. - Revenue from fixed monthly equipment reimbursements totaled $249.5 million in Q1 2025, down from $254.3 million in Q1 2024[75]. - The Sleep Health segment generated net revenue of $316,351,000 for the three months ended March 31, 2025, compared to $325,334,000 in 2024, a decrease of approximately 2.9%[95]. - The Wellness at Home segment reported net revenue of $157,206,000 for the three months ended March 31, 2025, slightly up from $156,044,000 in 2024[95]. Assets and Liabilities - Total assets as of March 31, 2025, were $4,437,350, a decrease from $4,486,947 as of December 31, 2024[18]. - Total liabilities decreased to $2,863,496 as of March 31, 2025, down from $2,908,829 at the end of 2024[18]. - The company’s accumulated deficit increased to $569,385 as of March 31, 2025, from $562,178 as of December 31, 2024[18]. - As of March 31, 2025, the assets held for sale amounted to $101,449,000, an increase from $52,748,000 as of December 31, 2024[84]. - The total liabilities held for sale increased to $17,514,000 as of March 31, 2025, from $7,043,000 as of December 31, 2024[84]. - Long-term debt as of March 31, 2025, totaled $1.941 billion, down from $1.965 billion as of December 31, 2024[124]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $53,650 as of March 31, 2025, from $109,747 as of December 31, 2024, indicating a liquidity contraction[18]. - Net cash provided by operating activities increased to $95,527,000 in Q1 2025, up from $49,035,000 in Q1 2024, representing a 95% increase[26]. - Cash at the end of the period was $53,650,000, down from $79,566,000 at the end of Q1 2024, indicating a decrease of approximately 32.6%[26]. - The company’s cash paid for interest was $45,969,000 in Q1 2025, down from $50,259,000 in Q1 2024, indicating a decrease of 8.6%[26]. Expenses - General and administrative expenses were $86,854 for Q1 2025, slightly down from $89,041 in Q1 2024[20]. - The company reported depreciation and amortization expenses of $94,345,000 for Q1 2025, slightly up from $92,876,000 in Q1 2024[26]. - The company incurred equity-based compensation expenses of $5,296,000 in Q1 2025, compared to $4,533,000 in Q1 2024, reflecting a 16.9% increase[26]. - The company recognized depreciation expense of $89.2 million for the three months ended March 31, 2025, compared to $87.3 million for the same period in 2024[85]. - The company incurred finance lease costs of $3,374,000 for amortization of right-of-use (ROU) assets in Q1 2025, which is an increase of 49.8% compared to $2,255,000 in Q1 2024[164]. - The company recorded an income tax expense of $0.9 million for the three months ended March 31, 2025, a significant decrease from $6.6 million in the same period of 2024[167]. Compliance and Legal Matters - The company has no material accruals related to lawsuits, claims, or investigations at this time, indicating a stable legal standing[171]. - The company is fully cooperating with multiple investigations regarding potential violations of the False Claims Act, but the impact on financial conditions remains uncertain[172][179][181]. Debt and Financing - The Company issued $600.0 million aggregate principal amount of 5.125% senior unsecured notes in August 2021, maturing on March 1, 2030[132]. - The Company recognized a loss of $0.7 million in other comprehensive income due to cash flow hedge accounting for the three months ended March 31, 2025[121]. - The Company made a voluntary repayment of $20.9 million on the 2024 Term Loan during the three months ended March 31, 2025[130]. - As of March 31, 2025, the outstanding borrowings under the 2024 Term Loan were $525.0 million, with a quarterly principal repayment requirement of $4.1 million through September 30, 2026, increasing to $8.1 million from December 31, 2026, through June 30, 2029[130]. - The maximum amount the Company could borrow under the 2024 Revolver while remaining compliant with financial debt covenants was $277.6 million[131].

Financial Data and Key Metrics Changes - First quarter revenue was $777.9 million, a decline of 1.8% from the prior year quarter, but exceeded the midpoint of guidance by $13.1 million [19][4] - Adjusted EBITDA for the first quarter was $127.9 million, down 19.3% year-over-year, with an adjusted EBITDA margin of 16.4% [5][22] - Free cash flow was negative $100,000, an improvement from negative $38.9 million in the prior year quarter [5][23] Business Line Data and Key Metrics Changes - **Sleep Health Segment**: Revenue decreased by 2.8% to $316.4 million, with new setups at approximately 113,000, slightly below expectations [20] - **Respiratory Health Segment**: Revenue increased by 3.3% to $165.5 million, driven by stronger oxygen new setups [21] - **Diabetes Health Segment**: Revenue declined by 8% to $138.8 million, but showed signs of recovery with improved new starts and the lowest attrition rate in two years [21][12] - **Wellness at Home Segment**: Revenue increased by 0.7% to $157.2 million, offsetting revenue lost from disposed assets [22] Market Data and Key Metrics Changes - The addressable markets within the four segments are growing in aggregate by mid-single digits, driven by an aging U.S. population and increasing prevalence of chronic conditions [8][6] - The company serves 4.2 million patients across over 660 locations in all 50 states, indicating a strong geographic footprint [8] Company Strategy and Development Direction - The company aims to deliver consistent, sustainable organic growth by focusing on its four core segments and enhancing patient service excellence [6][10] - There is a commitment to improving operational workflows and patient experience, particularly in the Diabetes Health segment [10][12] - The company is reducing debt and exiting non-core product lines to sharpen strategic focus [14][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage potential tariff impacts, indicating that current exposure is contained and manageable [15][16] - The company remains optimistic about the growth potential in the Diabetes Health segment and overall business despite current challenges [12][30] Other Important Information - The company has reduced its debt balance by $25 million in the first quarter, totaling $195 million over the last five quarters [13][24] - Full-year revenue expectations have been reduced by $40 million due to the sale of certain incontinence assets [25] Q&A Session Summary Question: Can you provide additional color on the improvement in the diabetes business? - Management noted positive movement in the pump business and sequential growth in new starts for continuous glucose monitors (CGMs) [28][29] Question: What is the situation with new starts in the sleep segment? - Management acknowledged a slight decline in new starts but emphasized confidence in addressing the issue through detailed plans [32][33] Question: Can you clarify the guidance changes related to asset sales? - The guidance change is exclusively for the incontinence asset sale, with no comments on the infusion asset sale until it is closed [29] Question: Are there opportunities for acquisitions in troubled markets? - Management confirmed ongoing M&A discussions and the potential for modest tuck-in acquisitions [60][59] Question: What is the company's exposure to tariffs for fiscal 2026? - Management indicated that they are feeling better about tariff exposure based on recent clarifications regarding product classifications [46][47] Question: How is the company positioned in the sleep market? - Management stated that improvements are needed in certain states to regain market share, with plans in place to address these challenges [54][55]

Group 1: Earnings Performance - AdaptHealth Corp. reported quarterly earnings of $0.01 per share, matching the Zacks Consensus Estimate, compared to $0.02 per share a year ago [1] - The company posted revenues of $777.88 million for the quarter, exceeding the Zacks Consensus Estimate by 1.72%, but down from $792.5 million year-over-year [2] - Over the last four quarters, AdaptHealth has surpassed consensus EPS estimates three times [1][2] Group 2: Stock Performance and Outlook - AdaptHealth shares have declined approximately 8.6% since the beginning of the year, while the S&P 500 has decreased by 3.9% [3] - The company's earnings outlook will be crucial for future stock movements, with current consensus EPS estimates at $0.28 for the coming quarter and $1.12 for the current fiscal year [4][7] - The current Zacks Rank for AdaptHealth is 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Medical - Products industry, to which AdaptHealth belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

Financial Supplement Q1 2025 Disclaimer This presentation contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management's current views concerning future business, events, trends, contingencies, financial performance, or financial condition, appear at various places in this communication and may use words like "aim," "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "forecast," "future," "goal, ...

AdaptHealth (AHCO) Q1 2025 Earnings Call May 06, 2025 08:30 AM ET Speaker0 Good day, everyone, and welcome to today's Adapt Health's First Quarter twenty twenty five Earnings Release. Today's speakers will be Suzanne Foster, Chief Executive Officer of Adapt Health and Jason Clements, Chief Financial Officer of Adapt Health. Before we begin, I'd like to remind everyone that statements included in this conference call and in the press release issued today may constitute forward looking statements within the m ...

[Q1 2025 Performance Overview](index=1&type=section&id=Q1%202025%20Performance%20Overview) [Financial & Operational Highlights](index=1&type=section&id=First%20Quarter%20Results%20and%20Highlights) AdaptHealth reported decreased Q1 2025 net revenue and Adjusted EBITDA, a wider net loss, but significantly improved cash flow from operations, alongside strategic asset dispositions Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $777.9M | $792.5M | -1.8% | | Net Loss | $7.2M | $2.1M | Widened | | Adjusted EBITDA | $127.9M | $158.5M | -19.3% | | Cash Flow from Operations | $95.5M | $49.0M | +94.9% | | Free Cash Flow | -$0.1M | -$38.9M | Improved | - The company closed an agreement to sell certain incontinence assets and signed a definitive agreement to sell certain infusion assets, both within the Wellness at Home segment[4](index=4&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management emphasized a focus on business improvement, debt reduction, and patient service, noting solid results, Diabetes Health segment improvement, and plans to leverage scale for organic growth - Management emphasized a focus on business improvement, debt reduction, and providing service to its **4.2 million patients**[5](index=5&type=chunk) - The Diabetes Health segment showed signs of improvement for the **second consecutive quarter**[5](index=5&type=chunk) - The company aims to leverage its geographic reach and operational scale to capture market share and drive sustainable organic growth across all four segments[5](index=5&type=chunk) [Financial Outlook](index=1&type=section&id=Financial%20Outlook) [Updated Fiscal Year 2025 Guidance](index=1&type=section&id=Updated%20Fiscal%20Year%202025%20Guidance) The company updated its full-year 2025 guidance, lowering net revenue and slightly reducing Adjusted EBITDA due to asset dispositions, while maintaining unchanged free cash flow guidance - Financial guidance for fiscal year 2025 was updated to account for the disposition of certain incontinence assets[6](index=6&type=chunk) Fiscal Year 2025 Guidance Update | Metric | Previous Guidance | Updated Guidance | | :--- | :--- | :--- | | Net Revenue | $3.22B - $3.36B | $3.18B - $3.32B | | Adjusted EBITDA | $670M - $710M | $665M - $705M | | Free Cash Flow | $180M - $220M | $180M - $220M (Unchanged) | [Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) AdaptHealth reported a Q1 2025 net revenue decrease to $777.9 million, a significant drop in operating income to $23.2 million due to higher costs, and a widened net loss of $7.2 million Q1 2025 Statement of Operations Highlights (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Revenue | $777,882 | $792,497 | | Operating Income | $23,170 | $50,531 | | Net Loss Attributable to AdaptHealth | $(7,207) | $(2,134) | | Diluted Net Loss Per Share | $(0.05) | $(0.02) | - Cost of net revenue increased to **$657.4 million** from **$635.0 million** in the prior year quarter[25](index=25&type=chunk) [Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, AdaptHealth reported total assets of $4.44 billion and liabilities of $2.86 billion, with cash decreasing to $53.7 million and assets held for sale significantly increasing to $101.4 million Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash | $53,650 | $109,747 | | Assets held for sale | $101,449 | $52,748 | | Total Assets | $4,437,350 | $4,486,947 | | Total Liabilities | $2,863,496 | $2,908,829 | | Total Stockholders' Equity | $1,573,854 | $1,578,118 | [Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company generated $95.5 million in cash from operating activities in Q1 2025, significantly offsetting $95.6 million used in investing activities and $56.0 million in financing activities, resulting in a net cash decrease of $56.1 million Q1 2025 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $95,527 | $49,035 | | Net cash used in investing activities | $(95,585) | $(87,891) | | Net cash (used in) provided by financing activities | $(56,039) | $41,290 | | Net (decrease) increase in cash | $(56,097) | $2,434 | [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like Adjusted EBITDA and Free Cash Flow to analyze financial results, believing they supplement U.S. GAAP for performance evaluation, internal compensation, and acquisition analysis [Reconciliation of Net Loss to Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) Q1 2025 Adjusted EBITDA decreased to $127.9 million (16.4% margin) from $158.5 million (20.0% margin) in Q1 2024, with reconciliation from net loss primarily adjusted for depreciation, interest, and equity-based compensation Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss attributable to AdaptHealth Corp. | $(7,207) | $(2,134) | | EBITDA | $117,515 | $130,849 | | **Adjusted EBITDA** | **$127,938** | **$158,485** | | **Adjusted EBITDA Margin** | **16.4%** | **20.0%** | [Reconciliation to Free Cash Flow](index=8&type=section&id=Reconciliation%20to%20Free%20Cash%20Flow) Free cash flow significantly improved to a near break-even negative $0.1 million in Q1 2025, driven by a substantial increase in cash from operations ($95.5 million) that nearly offset capital expenditures Free Cash Flow Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $95,527 | $49,035 | | Purchases of equipment and other fixed assets | $(95,585) | $(87,891) | | **Free cash flow** | **$(58)** | **$(38,856)** | [Company Overview](index=2&type=section&id=About%20AdaptHealth%20Corp.) [Business Description](index=2&type=section&id=Business%20Description) AdaptHealth is a national provider of healthcare-at-home solutions, operating through four segments (Sleep, Respiratory, Diabetes, Wellness at Home) and serving approximately 4.2 million patients annually across 50 states via 660 locations - The company operates through **four reportable segments**: Sleep Health, Respiratory Health, Diabetes Health, and Wellness at Home[9](index=9&type=chunk) - Serves approximately **4.2 million patients annually** in all **50 states** via a network of approximately **660 locations** in **47 states**[10](index=10&type=chunk) - Partners with a diverse network of referral sources, including acute care hospitals, sleep labs, pulmonologists, and skilled nursing facilities[10](index=10&type=chunk)