AdaptHealth Corp. Announces Financial Report, Major Health Care Partnership

CONSHOHOCKEN, Pennsylvania—AdaptHealth Corp. has entered into a new agreement to become the exclusive provider of home medical equipment (HME) and supplies for a national system of hospitals and medical offices. The company made the announcement in a call reporting its second quarter earnings, which showed revenue and income down slightly, although the company called its performance “solid.”

AdaptHealth didn’t name the health system, but said that the five-year agreement is structured primarily as a capitation payment model and covers all of the system’s more than 10 million members. It said it would bring in more than $1 billion in revenue over the term of the contract.

“AdaptHealth’s momentum continues to build”, said AdaptHealth CEO SuzanneFoster. “We delivered another quarter of solid results in the second quarter. We are driving revenue growth, underscored by today’s milestone announcement of a new capitated partnership with a major national health care system.”

The agreement covers the national health care system’s Medicare Advantage, Medicaid Managed Care, and privately insured patients.

The company reported net income for the quarter that ended June 30, 2025, at $14.7 million, down from $19.4 million from the same quarter in 2024. Net revenue stayed close to flat and adjusted earnings before income, taxes, depreciation and amortization was down close to 6%. 

Officials said they were seeing continued growth in the respiratory segment, which they credited to sales incentive-based compensation changes introduced earlier in the year and streamlined order intake. 

Diabetes showed a third consecutive quarter of improvement in new starts and a good resupply rate; the company said it could resume growth in revenue in that area soon. For sleep, it emphasized improvements in patient scheduling and setup. 
Foster said there is concern about the Centers for Medicare & Medicaid’s proposed rule that would kick off competitive bidding, especially for continuous glucose monitoring systems and ostomy and urology supplies. 

“With many details still unfolding, the situation remains fluid, and it remains too early to quantify any potential impact,” she said, adding that the company is advocating on the topic.

Second Quarter Results and Highlights

• Net revenue was $800.4 million compared to $806.0 million, a decrease of 0.7%
• Net income attributable to AdaptHealth Corp. was $14.7 million compared to net income of $19.4 million
• Adjusted EBITDA was $155.5 million compared to $165.3 million, a decrease of 5.9%
• Cash flow from operations was $257.5 million year-to-date 2025, an increase from $247.0 million during the comparable period in 2024, and free cash flow was $73.3 million year-to-date 2025, compared to $77.9 million during the comparable period in 2024
• The company closed on its previously disclosed sales of certain incontinence assets and certain infusion assets in its Wellness at Home segment

The Company is updating previous financial guidance for fiscal year 2025, as follows:

• Net revenue of $3.18 billion to $3.26 billion, from $3.15 billion to $3.29 billion
• Adjusted EBITDA of $642 million to $682 million, from $662 million to $702 million
• Free cash flow of $170 million to $190 million, unchanged