AdaptHealth Q2 Earnings: Revenue Flat YoY, Stock Drops Despite Strong Profit Beat

AdaptHealth Corp. reported Q2 CY2025 revenue of $800.4 million, flat year on year, in line with analyst estimates. The company's GAAP profit was $0.10 per share, significantly above analyst estimates. However, its full-year revenue guidance of $3.22 billion at the midpoint came in 0.6% below analyst estimates. The stock dropped despite the company's momentum and strong performance.

AdaptHealth Corp. (AHCO) reported its second-quarter (Q2) 2025 financial results, showing mixed performance with revenue flat year-on-year and a GAAP profit per share significantly above analyst estimates. The company's Q2 net revenue of $800.4 million was in line with analyst estimates [3]. Despite this, the stock dropped following the announcement.

The company reported a GAAP profit of $0.10 per share, significantly above analyst estimates of $0.06 [2]. However, its full-year revenue guidance of $3.22 billion at the midpoint came in 0.6% below analyst estimates of $3.24 billion [2]. This discrepancy may have contributed to the stock's decline.

AdaptHealth's Q2 net income attributable to the company was $14.7 million, down from $19.4 million in the same period last year. Adjusted EBITDA was $155.5 million, a 5.9% decrease from $165.3 million in Q2 2024 [3]. The company also reported a year-to-date cash flow from operations of $257.5 million, up from $247.0 million in the comparable period in 2024 [3].

The company has been actively participating in investor conferences and announcements, providing updates on its business activities and strategic initiatives [1]. In March 2025, AdaptHealth participated in three major investor conferences in Miami, where it discussed its growth prospects and financial performance [1]. The company also announced its participation in upcoming investor conferences in Austin and New York in May 2025 [1].

AdaptHealth's Q2 2025 results show mixed performance, with a decline in revenue and a wider net loss. However, the company has been focusing on strategic initiatives such as the One Adapt initiative, AI application, increasing clinical relevance, and balance sheet strengthening [1]. The company has also been actively disposing of certain assets to reduce debt and strengthen its balance sheet [1].

Analysts have a strong consensus rating for AdaptHealth, with a Strong Buy recommendation and an average price target of $13.33 [1]. Truist Financial analyst David S. Macdonald, who covers the Healthcare sector and has a 61.26% success rate, reiterates his Buy rating with a price target of $13.00 [1].

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/AHCO-Q/pressreleases/33087398/truist-financial-sticks-to-its-buy-rating-for-adapthealth-ahco/
[2] https://seekingalpha.com/news/4478271-adapthealth-corp-gaap-eps-of-0_10-misses-by-0_04-revenue-of-800_37m-misses-by-3_43m
[3] https://www.tradingview.com/news/tradingview:4fb2d3123bc9c:0-adapthealth-corp-announces-second-quarter-2025-results/