AdaptHealth Conference Call Summary Company Overview - **Company**: AdaptHealth (Ticker: AHCO) - **Industry**: Durable Medical Equipment (DME) - **Key Segments**: CPAP for obstructive sleep apnea (OSA), diabetes management, respiratory therapies, and wellness at home [2][3] Key Points and Arguments Market Position and Growth - AdaptHealth is the largest DME operator in the U.S., supplying approximately 25% of the 6-7 million patients treated for OSA [3] - The market for OSA is underpenetrated, with estimates of 33-34 million Americans affected, indicating significant growth potential [3] - In Q2 2025, AdaptHealth set up 128,000 new CPAP patients, reflecting over 3% growth year-over-year [3] Business Segment Performance - **Sleep Segment**: Expected to maintain mid-single-digit growth, potentially reaching 5% if diabetes returns to growth [4] - **Respiratory Segment**: Anticipated growth of 3-3.5%, with current performance exceeding expectations despite a softer flu season [4] - **Diabetes Segment**: After operational changes, the segment is showing improvement with record retention levels, aiming to return to growth mode [5] - **Wellness at Home**: Completed two significant dispositions in Q2, using proceeds to reduce debt [6] Financial Outlook - Top-line organic revenue growth is projected at 3-4%, with potential contributions from tuck-in M&A [7] - A significant contract with a major healthcare system is expected to generate at least $200 million annually, with adjusted EBITDA margins of 20-21% [8] - Anticipated improvements in EBITDA due to accounting changes and cost reductions from AI and automation investments [9][10] Competitive Landscape and Regulatory Environment - The DME market is expected to consolidate further, with competitive bidding reducing the number of operators [13][19] - AdaptHealth believes it is well-positioned to win contracts in the upcoming competitive bidding rounds, with a focus on service level agreements to enhance payer relationships [14][16] - The diabetes segment will face new competitive pricing dynamics, with fewer operators expected to win contracts [21][22] Innovation and Market Dynamics - Concerns exist regarding alternative therapies impacting CPAP usage, but demand for sleep apnea treatment remains strong [37][39] - The company is monitoring the impact of new technologies and wearables on patient detection and adherence [38] Cash Flow and Capital Deployment - Free cash flow generation is projected to remain between 6-7% of revenue, with ongoing debt reduction and modest M&A activities planned [44] - The company aims to achieve a leverage target of 2.5 times EBITDA by mid-2026 [43] Investor Insights - The transformation towards increased free cash flow generation is a key focus, with strategic dispositions aimed at improving financial health [48][50] - Anticipated tax benefits from equipment purchases and bonus depreciation will enhance cash flow in the coming years [50] Additional Important Points - AdaptHealth's competitive advantage lies in its scale and technology, allowing it to offer better service and pricing compared to smaller operators [15][16] - The company is committed to continuous improvement in service delivery and operational efficiency [14][15] - The management team has undergone significant changes to enhance performance in the diabetes segment, with a focus on sales and retention strategies [33][34]

ResMed Conference Call Summary Company Overview - **Company**: ResMed (NYSE:RMD) - **Industry**: Digital health and medical devices, focusing on sleep health, breathing health, and healthcare technology delivered at home - **Headquarters**: San Diego, California - **Founded**: 1989 - **Market Presence**: Sold 30 million cloud-connectable medical devices in 140 countries, with 23 billion nights of respiratory medical data collected [5][6] Core Strategies and Goals - **ResMed 2030 Strategy**: Aims to improve 500 million lives by 2030 through innovative products and services [6][7] - **Recent Achievements**: Changed 154 million lives in the last 12 months with devices and software [7] - **Product Development**: Focus on creating the smallest, quietest, and most comfortable devices, with a strong emphasis on cloud connectivity and intelligence [7][10] Financial Performance - **Free Cash Flow**: Generated over $1.7 billion in free cash flow in the last 12 months [9] - **Gross Margin Improvement**: Achieved 230 basis points year-on-year gross margin accretion in Q4 and 150 basis points quarter-on-quarter [9][10] - **Net Operating Profit Margins**: Currently in the range of 33-34% [10] Innovation and Product Development - **New Products**: Launched innovative products like the AirTouch N30i and AirFit F40, incorporating fabric into patient interfaces [11] - **Acquisitions**: Acquired Ectosense for its home sleep testing technology and Virtuox for home sleep apnea testing [12][57] - **Research Utilization**: Leveraging 23 billion nights of data to improve products and contribute to peer-reviewed research [13][14] Market Dynamics and Competitive Landscape - **Tariff Relief**: ResMed products benefit from tariff relief under the Nairobi Protocol, ensuring no tariffs on products made in various locations [12] - **Competitor Landscape**: Competitors have been affected by recalls, but ResMed remains confident in its market position and growth potential [47][48] - **Market Growth**: The device market is expected to grow mid-single digits, with ResMed aiming to exceed this through demand generation efforts [58] Patient Engagement and Adherence - **Adherence Rates**: Connected devices have increased adherence from 50% to 73%, and with app usage, adherence can reach 87% [14][20] - **GLP-1 Drug Impact**: Patients on GLP-1 weight loss drugs are 11% more likely to start CPAP therapy and show higher resupply rates [24][25] - **Patient Empowerment**: Focus on educating patients about access to equipment and the importance of adherence to therapy [20][23] Research and Development - **Investment in R&D**: ResMed invests 6-7% of revenues back into research and development to drive innovation [55] - **Future Growth**: Aiming for double-digit basis point improvements in gross margins annually through supply chain optimization and product innovation [63][64] Conclusion - ResMed is positioned as a leader in the digital health space, with a strong focus on innovation, patient engagement, and financial performance. The company is actively working to expand its market presence and improve patient outcomes through its 2030 strategy and ongoing product development initiatives.

Financial Data and Key Metrics Changes - The company reported record FRE of $323 million, an 18% increase year over year, with a FRE margin of 48% for the first half [7][22] - Total AUM reached a record $465 billion, with first half inflows totaling $28 billion and $51 billion over the last twelve months, reflecting a 12% organic growth rate [23][24] - Management fees for the quarter were $590 million, a 7% increase year to date, while capital market fees were $48 million in the second quarter, more than double from last year [22][23] Business Line Data and Key Metrics Changes - Carlyle Alpinvest experienced a record quarter with fee revenues up more than 50% and FRE nearly doubling over the past year [17] - Global Credit delivered strong performance with FRE of $111 million, a 37% year over year increase, and asset-backed finance AUM up 40% year over year [25][26] - The U.S. Buyout funds appreciated approximately 20% over the past twelve months, while the tenth vintage U.S. Real Estate fund closed at $9 billion, nearly 15% larger than its predecessor [13][27] Market Data and Key Metrics Changes - The macro environment showed improved sentiment, with equity markets near record highs and increased M&A activity due to reduced uncertainty from tariff negotiations and tax policy [9][10] - The company deployed $26 billion in 2025, up almost 50% year over year, indicating strong demand for private capital [10][11] Company Strategy and Development Direction - The company is focused on expanding its wealth management capabilities, with a partnership with UBS to provide private equity secondary solutions for their international wealth clients [20][110] - The strategic emphasis is on leveraging brand recognition and diversification of the platform to enhance growth in wealth management and private equity [111][112] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, expecting full year FRE growth of approximately 10%, up from a prior outlook of 6% [30] - The leadership transition is seen as a natural evolution to enhance operational scale and agility in executing the company's strategy [21][88] Other Important Information - The company returned nearly $15 billion to investors over the last twelve months, which is three times the industry average [11][29] - The firm is actively pursuing opportunities in the capital markets, generating over $230 million in fees over the last twelve months, with expectations for further growth as M&A and IPO activities increase [20][21] Q&A Session Summary Question: Drivers of FRE growth and future guidance - Management indicated that the revised outlook reflects strong momentum across the platform, with organic growth at Alpinvest being exceptional [41][42] Question: Retail commentary and fundraising potential - Management highlighted the systematic strategy for engaging wealth clients and the expected positive impact of the upcoming CPAP launch [52][56] Question: Outlook for the credit business - The company sees significant growth potential in the credit business, particularly in private credit and asset-based finance, driven by increasing demand for capital [66][67] Question: Near-term outlook for Alpenvest and Solutions business - Management noted that the business has evolved to generate consistent growth, with CAPM being a significant driver [73][76] Question: Capital markets fees growth and strategy - The company expects capital markets fees to continue growing, driven by organic opportunities and the scale of the platform [101][106] Question: Wealth products and future vision - Management emphasized the importance of brand recognition and diversification in driving success in wealth management [110][112]

Financial Data and Key Metrics Changes - The company reported record FRE of $323 million, an 18% increase year over year, with a FRE margin of 48% for the first half [6][19] - Total DE for the first six months was $2.5 per share, marking a record start for the firm [19] - Management fees reached $590 million for the quarter, a 7% increase year over year, while capital market fees were $48 million, more than double last year [20][19] - Firm-wide AUM ended the quarter at $465 billion, with inflows totaling $28 billion for the first half and $51 billion over the last twelve months, reflecting a 12% organic growth rate [20][6] Business Line Data and Key Metrics Changes - Global Credit and Carlyle Alpinvest delivered record FRE, together accounting for 55% of firm-wide FRE, up from less than 30% two years ago [21] - Carlyle Alpinvest FRE reached a record $68 million for the second quarter, with year-to-date FRE of $134 million, up more than 80% [21] - Global Credit FRE was $111 million for the quarter, a 37% year-over-year increase, with strong capital markets activity driving performance [22][23] - The U.S. Buyout funds appreciated approximately 20% over the past twelve months, with the tenth vintage U.S. Real Estate fund closing at $9 billion, nearly 15% larger than its predecessor [11][24] Market Data and Key Metrics Changes - The macro environment showed improved sentiment, with markets functioning well and activity accelerating, particularly in M&A and deal activity [7][8] - The company deployed $26 billion in 2025, up almost 50% year over year, indicating strong demand for private capital [8] - Asset-backed finance AUM increased by 40% year over year, reflecting significant growth in this area [14] Company Strategy and Development Direction - The company is focused on leveraging its global brand and diversified investment platform to drive growth, particularly in wealth management and capital markets [16][17] - A partnership with UBS was launched to provide private equity secondary solutions for their international wealth clients, expected to be a strong growth driver [17] - The company aims to enhance its capabilities in credit and private equity, with a focus on organic growth and strategic partnerships [58][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's momentum and performance, expecting full-year FRE growth of approximately 10%, up from a prior outlook of 6% [26] - The company anticipates full-year inflows of $50 billion, compared to a previous estimate of $40 billion, indicating strong fundraising momentum [26] - Management highlighted the importance of collaboration across the Carlyle platform to drive better outcomes and performance [78] Other Important Information - The company returned nearly $15 billion to investors over the last twelve months, significantly exceeding the industry average [10][25] - Leadership appointments were announced, including John Ruddett as Co-President and Justin Bluff as the new CFO, aimed at enhancing operational scale and agility [18][26] Q&A Session All Questions and Answers Question: Drivers of FRE growth and outlook for 2026 - Management noted that the revised outlook reflects strong momentum across the platform, with organic growth at Alpinvest being exceptional [39][40] - They acknowledged the desire for longer-term guidance but emphasized the unpredictability of forecasting five years ahead [36][41] Question: Retail commentary and fundraising potential - Management discussed the systematic strategy for engaging wealth globally, highlighting the importance of brand recognition and partnerships [48][49] Question: Credit business growth outlook - Management emphasized the convergence of insurance and private credit as a significant growth opportunity, with a focus on collaborative partnerships [58][60] Question: Near-term outlook for Alpenvest and Solutions business - Management expressed confidence in consistent growth for Alpenvest, driven by new fund launches and partnerships [71][73] Question: Transition back to global private equity and collaboration - Management highlighted the strong collaborative culture within Carlyle and the exceptional performance of the corporate private equity business [78][81] Question: Net IRR of CP7 and realization performance - Management indicated that CP7 is not expected to be the best fund, but performance improvements are being made, with a focus on driving realizations [91][92] Question: Capital markets fees growth and strategy - Management discussed the strategic development of capital markets fees, emphasizing high-quality revenue streams and organic growth opportunities [98][102] Question: Wealth products and future product development - Management outlined the importance of client-centric solutions in the wealth space, with a focus on developing products that meet long-term needs [127][128]

Investment Ratings - ResMed (RMD AU) is rated Overweight (OW) with a price target of A$45.00 [24][30] - Sonic Healthcare (SHL AU) is rated Neutral (N) with a price target of A$29.00 [30][32] Core Insights - ResMed is expected to benefit from rising awareness of obstructive sleep apnoea, leading to increased demand for CPAP treatments [2][12] - Sonic Healthcare faces funding pressures that are likely to undermine its margin expansion potential [6][15] Summary by Sections ResMed - **Earnings Growth**: ResMed's earnings are projected to be approximately 5% ahead of consensus due to expected gross margin improvements and stronger revenue growth [4][12] - **Margin Expansion**: The company is on track to achieve further gross margin increases supported by production efficiency and favorable currency movements [3][24] - **Valuation**: ResMed trades at a 23x FY26E PE, which is below its historical average, indicating potential undervaluation [5][24] Sonic Healthcare - **Funding Pressures**: Sonic Healthcare is experiencing reimbursement pressures in key markets, particularly Germany and Australia, which are expected to negatively impact revenues [6][10] - **US Operations**: The US business has underperformed, and challenges are anticipated to persist in 2025 [7][9] - **Long-term Margin Decline**: Sonic's pathology margins have been in long-term decline, attributed to expansion into lower-margin markets and a tight funding environment [10][15]

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]

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 [18][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% [21][5] - Free cash flow was negative $100,000, an improvement from negative $38.9 million in the prior year quarter [5][22] Business Line Data and Key Metrics Changes - **Sleep Health Segment**: Revenue decreased 2.8% to $316.4 million, with new setups at approximately 113,000, slightly below expectations [19][18] - **Respiratory Health Segment**: Revenue increased 3.3% to $165.5 million, driven by stronger oxygen new setups during a severe flu season [20][18] - **Diabetes Health Segment**: Revenue declined 8% to $138.8 million, but showed signs of recovery with improved new starts and the lowest attrition rate in two years [20][12] - **Wellness at Home Segment**: Revenue increased 0.7% to $157.2 million, offsetting revenue lost from disposed assets [21] Market Data and Key Metrics Changes - The addressable markets within the four segments are believed to be growing in aggregate by mid-single digits, driven by an aging U.S. population and increasing prevalence of chronic conditions [6][7] - The company serves 4.2 million patients across over 660 locations in all 50 states, indicating a broad geographic footprint [7] 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][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage potential impacts from international trade policies and tariffs, indicating that current exposure is contained [15][16] - The company remains optimistic about the future of its Diabetes Health segment, citing improvements in processes and patient service [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][23] - Full-year revenue expectations have been reduced by $40 million due to the sale of certain incontinence assets [24] 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 a second consecutive quarter of growth in new starts for continuous glucose monitors (CGMs) [28][30] Question: What is the situation with new starts in the sleep segment? - Management acknowledged a slight decline in new starts but emphasized that it is not due to external factors, and plans are in place to address performance in certain geographies [32][34] 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][30] Question: What are the expectations for the second quarter? - Management expects flat revenue year-over-year with adjusted EBITDA margins between 18.3% and 19.3%, impacted by previous revenue mix shifts [36][38] Question: Are there opportunities for acquisitions in troubled markets? - Management confirmed ongoing M&A discussions and the potential for modest tuck-in acquisitions to enhance market position [62][63]

Financial Data and Key Metrics Changes - Fourth quarter revenue was effectively flat year-over-year but exceeded the midpoint of guidance by 3%, with Sleep Health and Respiratory Health segments showing growth while Diabetes Health contracted [6][30] - Adjusted EBITDA for the fourth quarter contracted 2% year-over-year but was above the high end of guidance, with an adjusted EBITDA margin of 23.4%, slightly down from 23.8% in the prior year [7][38] - Free cash flow for the fourth quarter was $73 million, up 10% year-over-year and well above guidance [7][40] Business Line Data and Key Metrics Changes - Sleep Health revenue increased 3.4% year-over-year to $356.5 million, with new starts surpassing 120,000 for the third consecutive quarter [31] - Respiratory Health revenue was $165.3 million, up 1% year-over-year, with a record oxygen census of over 330,000 patients [33] - Diabetes Health revenue decreased 7.3% year-over-year to $171.3 million, but showed sequential growth of $30.2 million over the third quarter [34] - Wellness at Home revenue was $163.5 million, down 0.8% year-over-year, primarily due to the sale of certain custom rehab assets [35] Market Data and Key Metrics Changes - Full year 2024 net revenue was $3.26 billion, growing 1.9% year-over-year despite pressures from divestitures and reimbursement changes [30] - Sleep Health segment grew 4.5%, Respiratory Health grew 6.0%, while Diabetes Health declined 6.9% for the full year [30] Company Strategy and Development Direction - The company is focusing on five areas: One Adapt initiative, AI and automation, clinical relevance, organic growth, and strengthening the balance sheet [8][24] - A new segment structure was implemented to enhance visibility into customer needs and improve service excellence [12] - The company aims to lead in innovation within the home health industry and expand the value delivered to patients [13][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's progress and the potential for growth, particularly in the Sleep Health and Respiratory Health segments [5][51] - The company anticipates 2025 to be a transition year for growth, with expectations for accelerated growth in 2026 and beyond [51] Other Important Information - The company reduced debt by $170 million over the past year, with a net leverage ratio of 2.8x at year-end 2024 [24][42] - The company expects 2025 revenue guidance of $3.22 billion to $3.36 billion, reflecting a slight decline to modest growth [46] Q&A Session Summary Question: Can you talk more about the conversations with carriers over additional capitated arrangements? - Management confirmed ongoing discussions with various proposed capitated arrangements and noted a strong relationship with Humana, which has been complimentary about performance [55][56] Question: Can you discuss your working capital outlook and cash flow improvement? - Management expressed satisfaction with free cash flow performance in 2024 and expects continued improvement in days sales outstanding and inventory management [57][59] Question: What are your thoughts on the Diabetes business contribution to 2025 guidance? - Management indicated that while there are improving trends, they are cautious about committing to growth in the Diabetes segment until proven [66][68] Question: Can you elaborate on the changes made in the Diabetes resupply outreach program? - Management highlighted the implementation of a new leadership team and a focus on better patient outreach, which has led to improved retention and reduced attrition [86][90] Question: What is the impact of the purchase versus rental revenue situation? - Management explained that the shift is primarily in the Sleep segment, with revenue being recognized differently due to changes in reimbursement practices [100][102] Question: Can you provide updates on the capitated contract with Humana? - Management confirmed that the extension of the Humana contract was a positive development, with both parties satisfied with the ongoing relationship [109][111]

Financial Data and Key Metrics Changes - Fourth quarter revenue was effectively flat year-over-year but exceeded the high end of guidance by 3% [6][30] - Adjusted EBITDA for the fourth quarter contracted 2% year-over-year but was above guidance [7][36] - Free cash flow for the fourth quarter was $73 million, up 10% from the prior year [7][39] Business Line Data and Key Metrics Changes - Sleep Health revenue increased 3.4% year-over-year in Q4 [6][31] - Respiratory Health revenue increased 1% year-over-year in Q4 [6][33] - Diabetes Health revenue decreased 7.3% year-over-year in Q4, but showed sequential growth of $30.2 million over Q3 [6][34] - Wellness at Home revenue declined 0.8% year-over-year in Q4 [6][35] Market Data and Key Metrics Changes - For full year 2024, net revenue grew 1.9% to $3.26 billion, with notable growth in Sleep Health (4.5%) and Respiratory Health (6.0%) [30] - The company reported a net leverage ratio of 2.79 times at year-end 2024, down from 3.16 times at the end of 2023 [42] Company Strategy and Development Direction - The company is focusing on five areas: One Adapt initiative, AI and automation, clinical relevance, organic growth, and strengthening the balance sheet [8][24] - A new segment structure was implemented to enhance visibility and accountability [12][28] - The company aims to lead in innovation within the home health industry and improve patient experience through automation and AI [13][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to manage patient care and expand its role in healthcare [17][22] - The company anticipates 2025 to be a transition year for growth, with expectations for accelerated growth in 2026 and beyond [51] Other Important Information - The company reduced debt by $170 million in the past year, including $50 million in Q4 [24][42] - A multi-year extension of the capitated contract with Humana was announced [23] Q&A Session Summary Question: Can you talk more about the conversations with carriers over additional capitated arrangements? - Management confirmed ongoing discussions and a strong relationship with Humana, with positive performance reviews [55][56] Question: Can you discuss your working capital outlook and cash flow improvement? - Management indicated progress in working capital and expects stable or improved days sales outstanding (DSO) in 2025 [57][58] Question: What are your thoughts on the Diabetes business contribution to 2025 guidance? - Management noted stable revenue for pump supplies and cautious optimism for growth in the Diabetes segment [66][68] Question: Can you elaborate on the changes made in the Diabetes resupply outreach program? - Management highlighted the implementation of a new leadership team and improved patient outreach strategies [87][92] Question: How was the sales quota initiative received by the sales force? - Management reported a positive response from the sales team, which has improved forecasting and accountability [95][96] Question: Can you provide insights on the purchase versus rental revenue dynamics? - Management explained the impact of changes in reimbursement structures, particularly in the sleep business [102][103] Question: What is the expected impact of the 75/25 reimbursement model for 2025? - Management indicated a stable reimbursement environment with no significant changes expected [106][118]