AdaptHealth(US:AHCO)2025-11-04 21:55Financial Performance - Net revenue for Q3 2025 was $820.314 million, a slight increase from $805.858 million in Q3 2024, while net revenue for the nine months ended September 30, 2025, was $2.398568 billion, down from $2.40433 billion in the same period last year[19]. - Operating income for Q3 2025 was $61.730 million, compared to $63.487 million in Q3 2024, with a total operating income of $164.152 million for the nine months ended September 30, 2025, down from $166.065 million in the previous year[19]. - Net income attributable to AdaptHealth Corp. for Q3 2025 was $24.509 million, an increase from $22.859 million in Q3 2024, while net income for the nine months ended September 30, 2025, was $31.976 million, down from $40.160 million in the same period last year[19]. - The company reported a comprehensive income of $25.146 million for Q3 2025, compared to $20.732 million in Q3 2024[21]. - Net income for the nine months ended September 30, 2025, was $35,499, a decrease of 18.5% compared to $43,377 in 2024[27]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $453,538, compared to $488,057 for the same period in 2024, reflecting a decrease of approximately 7.1%[108]. - For the three months ended September 30, 2025, net income attributable to AdaptHealth Corp. was $24.5 million, compared to $22.9 million for the same period in 2024, representing an increase of 7.2%[165]. - Basic net income per share for the three months ended September 30, 2025, was $0.17, up from $0.16 in the same period of 2024, reflecting a growth of 6.3%[165]. Revenue Breakdown - Insurance revenue for the three months ended September 30, 2025, was $503.6 million, up from $490.1 million in 2024, reflecting a growth of 2.5%[77]. - Government revenue for the three months ended September 30, 2025, increased to $217.7 million from $208.3 million in 2024, marking a growth of 2.0%[77]. - Patient pay revenue for the three months ended September 30, 2025, decreased to $99.0 million from $107.5 million in 2024, a decline of 7.0%[77]. - Total net revenue from fixed monthly equipment reimbursements increased to $282.5 million for the three months ended September 30, 2025, compared to $262.3 million in 2024, a growth of 7.7%[103]. - Sleep Health segment generated $354.8 million in net revenue for the three months ended September 30, 2025, up from $335.8 million in 2024, reflecting a growth of 5.9%[103]. - Respiratory Health segment reported net revenue of $177.0 million for the three months ended September 30, 2025, compared to $164.2 million in 2024, marking an increase of 7.8%[103]. - Diabetes Health segment's net revenue was $150.1 million for the three months ended September 30, 2025, up from $141.1 million in 2024, indicating a growth of 6.9%[103]. - Wellness at Home segment saw a decline in net revenue to $138.4 million for the three months ended September 30, 2025, down from $164.8 million in 2024, a decrease of 16.0%[103]. Assets and Liabilities - Total assets as of September 30, 2025, were $4.383523 billion, a decrease from $4.486947 billion as of December 31, 2024[17]. - Total liabilities as of September 30, 2025, were $2.758672 billion, down from $2.908829 billion as of December 31, 2024[17]. - Cash and cash equivalents decreased to $80.357 million as of September 30, 2025, from $109.747 million as of December 31, 2024[17]. - As of September 30, 2025, total stockholders' equity amounted to $1,624,851,000, with an accumulated deficit of $530,202,000[23]. - The company experienced a decrease in the accumulated deficit, which improved to $(530.202) million as of September 30, 2025, from $(562.178) million as of December 31, 2024[17]. - Long-term debt as of September 30, 2025, was $1,760,180,000, down from $1,981,171,000 on December 31, 2024[133]. Cash Flow and Investments - Net cash provided by operating activities increased to $418,587, up 6.1% from $391,424 in the prior year[27]. - The company incurred a net cash used in investing activities of $178,722, a decrease of 20% compared to $223,403 in 2024[27]. - Cash at the end of the period was $80,357, down from $100,180 in the previous year, representing a decrease of 19.8%[27]. - The company made payments for business acquisitions totaling $18,561 in 2025, with no such payments reported in 2024[27]. - The company reported a gain on the sale of businesses amounting to $32,225 in 2025[27]. Expenses and Costs - General and administrative expenses for Q3 2025 were $90.111 million, slightly up from $87.313 million in Q3 2024[19]. - Total depreciation and amortization, including patient equipment depreciation, was $284,421, an increase of 3.4% from $274,797 in 2024[27]. - Labor costs for the nine months ended September 30, 2025, were $552,851, with the highest contribution from Sleep Health at $248,507[106]. - The company reported a total patient equipment depreciation of $253,711 for the nine months ended September 30, 2025, compared to $240,774 for the same period in 2024, indicating an increase of approximately 5.4%[113]. - The company recognized an income tax expense of $10.6 million for the three months ended September 30, 2025, compared to $8.1 million in 2024, marking a 30.9% increase[175]. Equity and Stock - The weighted average common shares outstanding for Q3 2025 were 135.345 million, compared to 134.303 million in Q3 2024[19]. - The balance of common stock increased to 135,425 shares by September 30, 2025, up from 134,602 shares at the end of December 2024[23]. - The Company recognized equity-based compensation expense of $16.7 million during the nine months ended September 30, 2025, compared to $10.6 million for the same period in 2024[158]. - The Company granted 1,579,775 shares of restricted stock units to employees during the nine months ended September 30, 2025, with a grant-date fair value of $16.9 million[152]. - At September 30, 2025, there was $35.8 million of unrecognized compensation expense related to equity-based compensation awards, expected to be recognized over a weighted-average period of 2.0 years[160]. Legal and Compliance - The Company is under investigation by the U.S. Attorney's Office for the Southern District of New York regarding potential false claims related to ventilator billing from January 1, 2015, to the present, but the office does not currently intend to pursue claims against the Company[181]. - A class action complaint was filed against the Company by the Allegheny County Employees' Retirement System, alleging violations of federal securities laws related to billing practices for diabetes products and compliance programs[183]. - The Company is cooperating with multiple investigations regarding potential false claims related to billing for humidifiers and respiratory devices, with investigations ongoing as of March 2025[191][192]. - The Company intends to vigorously defend against allegations in the Wu Derivative Complaint, which relates to the same issues as the Allegheny County Complaint[186]. - The settlement related to the Allegheny County Consolidated Complaint is expected to consist of a cash payment primarily funded by the Company's insurance carriers, pending court approval[184].