AdaptHealth Corp. Earnings Recaps
Q2 2026
Aug 6, 2026
AdaptHealth's shares plunged 40% following a disappointing outlook driven by significant margin compression and operational challenges related to its West Coast capitated contract, which is weighing heavily on near-term profitability.
Key takeaways
- Q2 net revenue from continuing operations grew 12.7% YoY to $740.3 million, driven by 15.9% organic growth.
- West Coast capitated contract added 10.7 points to organic growth but resulted in elevated costs and inefficiencies.
- Adjusted EBITDA margin contracted to 17.8%, impacted by $40 million in expected profitability headwinds from the West Coast contract.
- Elevated sleep resupply and enteral volumes created transitory and structural cost pressures.
- Management is implementing operational fixes including workflow alignment, technology adoption, and delivery model changes to stabilize margins.