CONSHOHOCKEN, PA — AdaptHealth (Nasdaq: AHCO) raised its 2026 revenue outlook after reporting first-quarter sales growth tied to a major expansion of its home medical equipment operations, though higher labor costs and refinancing-related expenses weighed on profitability.
The company reported first-quarter net revenue of $819.8 million, up 5.4% from $777.9 million a year earlier. Organic revenue growth was 9.1%, with gains across all reporting segments, according to the company.
AdaptHealth posted a net loss attributable to the company of $16.0 million for the quarter ended March 31, compared with a net loss of $7.2 million in the prior-year period.
Adjusted EBITDA fell 5.3% to $121.2 million from $127.9 million, while operating cash flow declined slightly to $93.7 million from $95.5 million. Free cash flow was negative $27.5 million, compared with negative $0.1 million a year earlier.
The company attributed part of the earnings pressure to roughly $12 million in elevated labor expenses connected to what it described as the largest de novo expansion in the history of the home medical equipment industry. AdaptHealth said the expansion positioned the company as the exclusive provider for more than 10 million members tied to a new strategic partner.
Suzanne Foster indicated the company exceeded its first-quarter revenue guidance while managing transition-related operating costs tied to the expansion.
In April, AdaptHealth completed a $1.1 billion refinancing of its senior secured credit facility, a move the company said reduced near-term amortization obligations and lowered its weighted average borrowing costs. The refinancing also provides capital to redeem the company’s 6.125% senior notes due 2028 after call premium restrictions expire in August.
The company also completed the sale of its remaining custom rehabilitation assets in April as part of a strategy to focus more heavily on sleep and respiratory health operations.
AdaptHealth increased its full-year 2026 revenue guidance by $10 million and now expects annual revenue between $3.45 billion and $3.52 billion.
The company maintained its forecast for adjusted EBITDA of $680 million to $730 million and free cash flow of $175 million to $225 million.
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