Overview

* AdaptHealth ( AHCO ) Q3 revenue rose 1.8% yr/yr, beating analyst expectations

* Adjusted EBITDA for Q3 increased 3.5% yr/yr

* Company reduced debt by $50 mln in Q3, totaling $225 mln yr-to-date

Outlook

* Company maintains FY 2025 net revenue guidance of $3.18 bln to $3.26 bln

* AdaptHealth ( AHCO ) projects FY 2025 adjusted EBITDA of $642 mln to $682 mln

* Company expects FY 2025 free cash flow of $170 mln to $190 mln

Result Drivers

* NEW AGREEMENT - Signed exclusive capitated agreement with payor, expanding reach to 170,000 members

* DIGITAL ENGAGEMENT - Expanded digital patient engagement, increasing registered myApp users to 271,000 from 118,000

* DEBT REDUCTION - Reduced debt by $50 mln, contributing to a net leverage ratio of 2.68x

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $820.31 $799.60

Revenue mln mln (8

Analysts

)

Q3 Net $25.75

Income mln

Q3 Miss $61.73 $70.30

Operatin mln mln (7

g Income Analysts

)

Q3 Miss $36.35 $43.50

Pretax mln mln (5

Profit Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

* Wall Street's median 12-month price target for Adapthealth Corp ( AHCO ) is $13.00, about 30.1% above its November 3 closing price of $9.09

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)