Shares declined 5.1% following a cautious outlook on the ventilation segment driven by near-term patient census pressure due to new compliance requirements. Despite solid growth in sleep and maternal health, investors appear concerned about margin and growth headwinds embedded in the ventilation dynamics.

• Revenue grew 28% year over year to $75.4 million, largely driven by a 57% increase in PAP therapy patients, now totaling nearly 36,000.
• Maternal health expanded beyond legacy markets with just under 4,000 new patients served, demonstrating scalable platform leverage.
• Ventilation patient census declined to 12,089 due to higher turnover driven by stricter compliance evaluation points under new Medicare coverage determination (NCD) rules—cited as a near-term headwind rather than a demand issue.
• Compliance among active ventilator patients has improved nearly 20% since NCD implementation, indicating some operational progress but ongoing challenges remain.
• Management acknowledged inherent risks in compliance framework, which can lead to interruptions in life-sustaining therapy access; this regulatory uncertainty and operational complexity likely weighed on investor sentiment.