Financial Data and Key Metrics - Net revenue for Q2 2024 was 806million,a1.6322.4 million, up 6.5% year-over-year, with new starts increasing over 5% sequentially from Q1 [18] - Diabetes revenue was 151.2million,down17.7 million year-over-year, primarily due to tough comparables from 2023 [19] - Adjusted EBITDA for Q2 2024 was 165.3million,reflectingamarginof20.5116.7 million, outperforming the target of 94million[23]BusinessLinePerformance−Sleepbusinesssawstrongresupplydemand,withtheresupplycensusreachingover1.6millionpatients[18]−Diabetesrevenuefacedchallengesduetotimingofsystemconversionsin2023,butthecompanyexpectsapickupinthesecondhalfof2024[19]−Respiratoryrevenuegrew3.33.255 billion to 3.315billion,andadjustedEBITDAbetween660 million and $700 million [24] Other Important Information - The company is paying down debt, with a net leverage ratio now just under 3x, ahead of the goal to be under 3x by the end of 2024 [23] - The company is conducting low-cost AI experiments, which are showing promising results in customer and clinical documentation [14][15] Q&A Session Summary Question: Non-core assets and their potential impact - Non-core assets are those that do not support the company's focus on sleep, respiratory, and diabetes markets, and the company is evaluating their disposition [27][28] Question: Diabetes business trajectory and CGM performance - The company expects a pickup in pump and CGM revenue in the second half of 2024, driven by recent CGM compatibility launches [31][32] Question: Sleep business supply constraints - Supply constraints for sleep resupply products improved during Q2, and the company does not expect further issues for the rest of the year [43][44] Question: Investments and their impact on EBITDA guidance - The company made key investments in people and technology, which will impact Q3 EBITDA margin, but cost-out initiatives are expected to offset these in Q4 [51][52] Question: Diabetes revenue through pharmacy channels - Approximately 5% of diabetes revenue is going through pharmacy channels, with expectations for growth as the company expands its pharmacy distribution capabilities [54] Question: Respiratory revenue growth and capitated contracts - Respiratory revenue growth is driven by the Humana contract and market share gains, with the company maintaining a pipeline of incremental capitated deals [63][65] Question: Pharmacy channel infrastructure for diabetes products - The company is building infrastructure to support pharmacy distribution, with recent examples including Louisiana Medicaid [70][72]