AdaptHealth 2025 Q3 Earnings Beats Revenue Estimates with 7.5% Net Income Growth

AdaptHealth (AHCO) reported Q3 2025 earnings on Nov 4, 2025, delivering revenue that exceeded analyst expectations while reaffirming full-year guidance. The company’s stock surged post-earnings, reflecting optimism about operational improvements and debt reduction progress.

Revenue

AdaptHealth’s total revenue rose 1.8% year-over-year to $820.31 million in Q3 2025, driven by 5.1% organic growth across all segments. Sleep Health led with $354.84 million in revenue, while Respiratory Health and Diabetes Health contributed $177 million and $150.07 million, respectively. The Wellness at Home segment added $138.41 million, rounding out the $820.31 million in total net revenue.

Earnings/Net Income

Adjusted EBITDA grew 3.5% to $170.1 million (20.7% margin), and net income increased 7.5% to $25.75 million. While GAAP EPS of $0.16 missed analyst estimates, the company’s profitability and cash flow metrics demonstrated operational strength.

Post-Earnings Price Action Review

AdaptHealth’s stock price surged 10.68% during the latest trading day, 12.67% for the week, and 17.38% month-to-date. The rally reflects investor confidence in the company’s debt reduction progress, digital engagement growth, and capitated contract expansion. Management’s reaffirmation of 2025 guidance and 6–8% 2026 revenue growth targets further fueled optimism, despite the GAAP EPS miss.

CEO Commentary

Suzanne Foster, CEO, highlighted Q3 as a milestone quarter, emphasizing operational improvements, a $50 million debt reduction, and securing a capitated agreement for 170,000 members. She underscored the company’s focus on digital patient engagement, with myApp users reaching 271,000, and its strategic alignment for sustainable growth.

Guidance

AdaptHealth maintained 2025 guidance: net revenue of $3.18–$3.26 billion, Adjusted EBITDA of $642–$682 million, and free cash flow of $170–$190 million. The company remains on track for its net leverage target of 2.50x despite year-to-date free cash flow of $140.1 million.

Additional News

1. Capitated Contract Expansion: AdaptHealth secured an exclusive agreement to serve 170,000 members under a new capitated model, signaling long-term growth potential.

2. Debt Reduction: The company reduced debt by $50 million in Q3, achieving a net leverage ratio of 2.68x and $225 million in total year-to-date reductions.

3. Digital Engagement: myApp user growth more than doubled to 271,000 in the past year, reflecting progress in patient-centric digital infrastructure.

AdaptHealth’s strategic focus on capitated contracts, debt management, and digital transformation positions it to capitalize on the growing home healthcare market.

<img src="https://cdn.ainvest.com/aigc/hxcmp/images/compress-qwen_generated_1762343242955.jpg.png" style="max-width:100%;">