AdaptHealth Corp. Announces Fourth Quarter and Full-Year 2024 Results and Provides 2025 Outlook

Rhea-AI Summary

AdaptHealth Corp. (NASDAQ: AHCO) announced its fourth quarter and full-year 2024 results along with its 2025 outlook. For full-year 2024, the company reported net revenue of $3.26 billion (up 1.9%), net income of $90.4 million (compared to a loss of $678.9 million in 2023), and Adjusted EBITDA of $688.7 million (up 2.7%). Cash flow from operations increased to $541.8 million, with free cash flow of $235.8 million.

Fourth quarter 2024 results showed a slight revenue decrease of 0.2% to $856.6 million, while net income was $50.3 million compared to a loss in Q4 2023. The company reached an agreement to sell certain incontinence assets in its Wellness at Home segment.

For fiscal year 2025, AdaptHealth provided guidance of:

• Net revenue of $3.22 billion to $3.36 billion
• Adjusted EBITDA of $670 million to $710 million
• Free cash flow of $180 million to $220 million

CEO Suzanne Foster highlighted progress on the company's strategic initiatives, including the One Adapt initiative, AI application, increasing clinical relevance, organic growth, and balance sheet strengthening.

Positive

• Net income attributable to AdaptHealth improved to $90.4 million in 2024 from a $678.9 million loss in 2023
• Full-year revenue increased 1.9% to $3.26 billion
• Adjusted EBITDA grew 2.7% to $688.7 million for full-year 2024
• Cash flow from operations increased to $541.8 million from $480.7 million
• Free cash flow improved to $235.8 million from $143.2 million
• Q4 free cash flow increased to $73.1 million from $66.6 million

Negative

• Q4 revenue decreased 0.2% to $856.6 million
• Q4 Adjusted EBITDA decreased 2.0% to $200.6 million
• Q4 cash flow from operations decreased to $150.4 million from $155.3 million
• 2025 free cash flow guidance of $180-220 million represents a potential decrease from 2024's $235.8 million

Insights

Financial Analyst

AdaptHealth's Q4 and full-year 2024 results reveal a significant financial turnaround with mixed forward indicators that merit careful investor attention. The company's transformation from a $678.9 million loss in 2023 to $90.4 million profit in 2024 represents a fundamental improvement in operational efficiency, though revenue growth remains modest at just 1.9%.

The most compelling aspect of these results is the company's dramatically improved cash generation. Free cash flow surged 64.7% to $235.8 million, substantially outpacing both revenue and EBITDA growth. This cash flow expansion provides management with enhanced financial flexibility for debt reduction, strategic investments, or potential shareholder returns.

The Q4 performance shows some concerning trends with revenue declining slightly (-0.2%) and Adjusted EBITDA dropping 2.0% year-over-year. This sequential weakening in the final quarter raises questions about momentum heading into 2025, particularly as the company's guidance suggests potential flattening of growth. The projected 2025 revenue range of $3.22-3.36 billion encompasses scenarios from a slight decline to modest growth compared to 2024's $3.26 billion.

The divestiture of incontinence assets signals ongoing portfolio optimization, likely aimed at focusing resources on higher-margin or faster-growing segments. However, without segment-specific performance data, it's difficult to determine which business lines are driving growth or experiencing challenges.

Management's emphasis on the "One Adapt" initiative and increased application of AI and automation suggests a strategic focus on operational efficiency rather than aggressive revenue expansion. This aligns with the strong cash flow improvements despite modest top-line growth, indicating successful margin enhancement efforts.

For investors, the key question remains whether AdaptHealth can accelerate organic growth while maintaining its improved profitability and cash generation. The company's extensive network serving 4.2 million patients across all 50 states provides a solid foundation, but the muted 2025 guidance suggests the transformation remains a work in progress.

Healthcare Operations Analyst

AdaptHealth's 2024 results reveal a dramatic financial rehabilitation that deserves investor attention. The company has engineered a remarkable turnaround from a $678.9 million loss in 2023 to $90.4 million profit in 2024, while simultaneously generating a 64.7% increase in free cash flow to $235.8 million.

This profitability transformation appears driven by operational efficiency improvements rather than revenue expansion, as evidenced by the modest 1.9% top-line growth. The substantial cash flow enhancement likely stems from improved working capital management and more disciplined capital expenditures, demonstrating management's focus on financial fundamentals over aggressive expansion.

The company's decision to divest certain incontinence assets from its Wellness at Home segment represents strategic portfolio refinement, potentially shedding lower-margin or capital-intensive business lines. This aligns with the broader healthcare industry trend toward specialization and focus on core competencies with stronger reimbursement profiles.

However, concerning signals emerge from Q4 results, with revenue declining 0.2% and Adjusted EBITDA dropping 2.0% year-over-year. This sequential weakening raises questions about momentum heading into 2025, especially as the company's guidance suggests potential flattening with revenue projected between $3.22-3.36 billion compared to 2024's $3.26 billion.

The "One Adapt" initiative appears focused on operational integration and standardization across the company's approximately 660 locations, likely aimed at eliminating redundancies from previous acquisitions. Similarly, the AI and automation push suggests a focus on reducing administrative costs in areas like billing, inventory management, and patient communication – critical efficiency levers in the healthcare-at-home sector where margins are pressured by Medicare reimbursement constraints.

For investors, the key question is whether AdaptHealth can leverage its improved financial foundation to accelerate organic growth while navigating the complex reimbursement landscape. The company's extensive footprint serving 4.2 million patients provides scale advantages, but the muted guidance suggests management remains cautious about near-term growth prospects despite their operational improvements.

PLYMOUTH MEETING, Pa.--(BUSINESS WIRE)-- AdaptHealth Corp. (NASDAQ: AHCO) (“AdaptHealth” or the “Company”), a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services, announced today financial results for the fourth quarter and fiscal year ended December 31, 2024.

Full Year 2024 Results and Highlights

All comparisons are to the year ended December 31, 2023.

• Net revenue was $3,261.0 million compared to $3,200.2 million, an increase of 1.9%.
• Net income attributable to AdaptHealth Corp. was $90.4 million compared to a net loss attributable to AdaptHealth Corp. of $678.9 million.
• Adjusted EBITDA was $688.7 million compared to $670.8 million, an increase of 2.7%.
• Cash flow from operations was $541.8 million, an increase from $480.7 million, and free cash flow was $235.8 million, an increase from $143.2 million.
• In the fourth quarter, the Company reached a definitive agreement to sell certain incontinence assets in its Wellness at Home segment to a third party.

Fourth Quarter 2024 Results and Highlights

All comparisons are to the quarter ended December 31, 2023.

• Net revenue was $856.6 million compared to $858.2 million, a decrease of 0.2%.
• Net income attributable to AdaptHealth Corp. was $50.3 million compared to a net loss attributable to AdaptHealth Corp. of $254.5 million.
• Adjusted EBITDA was $200.6 million compared to $204.6 million, a decrease of 2.0%.
• Cash flow from operations was $150.4 million, a decrease from $155.3 million, and free cash flow was $73.1 million, an increase from $66.6 million.

Guidance for Fiscal Year 2025

The Company is providing its financial guidance for fiscal year 2025, as follows:

• Net revenue of $3.22 billion to $3.36 billion;
• Adjusted EBITDA of $670 million to $710 million;
• Free cash flow of $180 million to $220 million

Management Commentary

“Over the course of the second half of 2024, we continued to make progress on our five areas of focus, which include our One Adapt initiative, accelerating the application of AI and automation, increasing our clinical relevance, delivering organic growth, and strengthening our balance sheet,” said Suzanne Foster, Chief Executive Officer of AdaptHealth. “The progress we have made helped drive our solid fourth quarter results and, more importantly, is strengthening our foundation for long-term success and growth.”

Conference Call

Management will host a teleconference today, Tuesday, February 25, 2025, at 8:30 am ET to discuss the results and business activities with analysts and investors.

Interested parties may participate in the call by dialing:

• (800) 245-3047 (Domestic) or
• (203) 518-9765 (International)

When prompted, reference Conference ID: AHCO4Q24

Webcast registration: Click Here

Following the live call, a replay will be available for six months on the Company’s website, www.adapthealth.com, under “Investor Relations.”

About AdaptHealth Corp.

AdaptHealth is a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services. The Company operates under four reportable segments that align with its product categories: (i) Sleep Health, (ii) Respiratory Health, (iii) Diabetes Health, and (iv) Wellness at Home. The Sleep Health segment provides sleep therapy equipment, supplies and related services (including CPAP and BiLevel services) to individuals for the treatment of obstructive sleep apnea. The Respiratory Health segment provides oxygen and home mechanical ventilation equipment and supplies and related chronic therapy services to individuals for the treatment of respiratory diseases, such as chronic obstructive pulmonary disease and chronic respiratory failure. The Diabetes Health segment provides medical devices, including continuous glucose monitors and insulin pumps, and related services to patients for the treatment of diabetes. The Wellness at Home segment provides home medical equipment and services to patients in their homes including those who have been discharged from acute care and other facilities. The segment tailors a service model to patients who are adjusting to new lifestyles or navigating complex disease states by providing essential medical supplies and durable medical equipment.

The Company is proud to partner with an extensive and highly diversified network of referral sources, including acute care hospitals, sleep labs, pulmonologists, skilled nursing facilities, and clinics. AdaptHealth services beneficiaries of Medicare, Medicaid, and commercial insurance payors, reaching approximately 4.2 million patients annually in all 50 states through its network of approximately 660 locations in 47 states.

Forward-Looking Statements

This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics and projections of market opportunity and expectations and the Company’s acquisition pipeline. These statements are based on various assumptions and on the current expectations of AdaptHealth management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on, by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company.

These forward-looking statements are subject to a number of risks and uncertainties, including the outcome of judicial and administrative proceedings to which the Company may become a party or governmental investigations to which the Company may become subject that could interrupt or limit the Company’s operations, result in adverse judgments, settlements or fines and create negative publicity; changes in the Company’s customers’ preferences, prospects and the competitive conditions prevailing in the healthcare sector. A further description of such risks and uncertainties can be found in the Company’s filings with the Securities and Exchange Commission. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently knows or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause the Company’s assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Use of Non-GAAP Financial Information and Financial Guidance

The Company uses EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and free cash flow, which are financial measures that are not in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, to analyze its financial results and believes that they are useful to investors, as a supplement to U.S. GAAP measures. In addition, the Company’s ability to incur additional indebtedness and make investments under its existing credit agreement is governed, in part, by its ability to satisfy tests based on a variation of Adjusted EBITDA.

The Company believes Adjusted EBITDA and Adjusted EBITDA Margin are useful to investors in evaluating the Company’s financial performance. The Company uses Adjusted EBITDA as the profitability measure in its incentive compensation plans that have a profitability component and to evaluate acquisition opportunities, where it is most often used for purposes of contingent consideration arrangements.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin should not be considered as measures of financial performance under U.S. GAAP, and the items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing financial performance. Accordingly, these key business metrics have limitations as an analytical tool. They should not be considered as an alternative to net income or any other performance measures derived in accordance with U.S. GAAP or as an alternative to cash flows from operating activities as a measure of the Company’s liquidity.

The Company uses free cash flow, which is a financial measure that is not in accordance with U.S. GAAP, in its operational and financial decision-making and believes free cash flow is useful to investors because similar measures are frequently used by securities analysts, investors, ratings agencies and other interested parties to evaluate the Company's competitors and to measure the ability of companies to service their debt. The Company's presentation of free cash flow should not be construed as a measure of liquidity or discretionary cash available to the Company to fund its cash needs, including investing in the growth of its business and meeting its obligations.

Free cash flow should not be considered as a measure of financial performance under U.S. GAAP. Accordingly, this key business metric has limitations as an analytical tool. It should not be considered as an alternative to any performance measures derived in accordance with U.S. GAAP or as an alternative to cash flows from operating activities as a measure of AdaptHealth’s liquidity.

This release contains non-GAAP financial guidance. There is no reliable or reasonably estimable comparable GAAP measure for the Company’s non-GAAP financial guidance because the Company is not able to reliably predict the impact of certain items that typically have one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of future operating results. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods. As a result, reconciliation of the non-GAAP financial guidance to the most directly comparable GAAP measure is not available without unreasonable effort. In addition, the Company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors. The variability of the specified items may have a significant and unpredictable impact on the Company’s future GAAP results.

In addition, the Company’s financial guidance in this release excludes the impact of any potential additional future strategic acquisitions and any items that have not yet been identified and quantified. The financial guidance is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release.

ADAPTHEALTH CORP.
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)		December 31, 2024			December 31, 2023
Assets
Current assets:
Cash		$	109,747		$	77,132
Accounts receivable			408,019			388,910
Inventory			139,842			113,642
Prepaid and other current assets			45,432			69,338
Assets held for sale			52,748			—
Total current assets			755,788			649,022
Equipment and other fixed assets, net			474,556			495,101
Operating lease right-of-use assets			105,999			110,465
Finance lease right-of-use assets			37,801			31,962
Goodwill			2,675,166			2,724,958
Identifiable intangible assets, net			105,548			130,160
Deferred tax assets			314,505			345,854
Other assets			17,584			21,128
Total Assets		$	4,486,947		$	4,508,650
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses		$	437,985		$	391,994
Current portion of long-term debt			16,250			53,368
Current portion of operating lease obligations			29,945			29,270
Current portion of finance lease obligations			14,315			9,122
Contract liabilities			34,944			38,570
Warrant liability			—			4,021
Other liabilities			26,505			10,654
Liabilities held for sale			7,043			—
Total current liabilities			566,987			536,999
Long-term debt, less current portion			1,964,921			2,094,614
Operating lease obligations, less current portion			80,275			85,529
Finance lease obligations, less current portion			24,630			22,746
Other long-term liabilities			272,016			302,093
Total Liabilities			2,908,829			3,041,981
Total Stockholders' Equity			1,578,118			1,466,669
Total Liabilities and Stockholders' Equity		$	4,486,947		$	4,508,650

ADAPTHEALTH CORP.
Consolidated Statements of Operations (Unaudited)
		Three Months Ended								Twelve months ended
(in thousands, except per share data)		December 31,								December 31,
			2024				2023				2024				2023
Net revenue		$	856,645			$	858,234			$	3,260,975			$	3,200,177
Costs and expenses:
Cost of net revenue			664,435				656,905				2,579,882				2,576,110
General and administrative expenses			83,521				88,721				359,238				334,594
Depreciation and amortization, excluding patient equipment depreciation			11,022				11,491				45,045				57,087
Goodwill impairment			—				318,921				13,078				830,787
Total costs and expenses			758,978				1,076,038				2,997,243				3,798,578
Operating income (loss)			97,667				(217,804	)			263,732				(598,401	)
Interest expense, net			29,729				33,486				126,668				130,299
Loss on extinguishment of debt			—				—				2,273				—
Change in fair value of warrant liability			(2,221	)			(2,596	)			(4,021	)			(34,482	)
Other (income) loss, net			(552	)			22,992				2,793				29,566
Income (loss) before income taxes			70,711				(271,686	)			136,019				(723,784	)
Income tax expense (benefit)			19,308				(18,111	)			41,239				(49,004	)
Net income (loss)			51,403				(253,575	)			94,780				(674,780	)
Income attributable to noncontrolling interest			1,141				928				4,358				4,115
Net income (loss) attributable to AdaptHealth Corp.		$	50,262			$	(254,503	)		$	90,422			$	(678,895	)
Weighted average common shares outstanding - basic			134,575				132,990				133,756				134,156
Weighted average common shares outstanding - diluted			136,534				132,990				135,531				134,418
Basic net income (loss) per share		$	0.34			$	(1.91	)		$	0.62			$	(5.06	)
Diluted net income (loss) per share		$	0.34			$	(1.91	)		$	0.61			$	(5.31	)

ADAPTHEALTH CORP.
Consolidated Statements of Cash Flows (Unaudited)
(in thousands)		Twelve Months Ended December 31,
			2024				2023
Cash flows from operating activities:
Net income (loss)		$	94,780			$	(674,780	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization, including patient equipment depreciation			365,334				382,783
Goodwill impairment			13,078				830,787
Equity-based compensation			14,880				22,468
Change in fair value of warrant liability			(4,021	)			(34,482	)
Reduction in the carrying amount of operating lease right-of-use assets			32,848				31,873
Reduction in the carrying amount of finance lease right-of-use assets			11,100				5,938
Deferred income tax expense (benefit)			32,049				(62,595	)
Change in fair value of interest rate swaps, net of reclassification adjustment			(367	)			(1,801	)
Amortization of deferred financing costs			5,666				5,234
Loss on extinguishment of debt			2,273				—
Payment of contingent consideration from an acquisition			(1,850	)			—
Other			2,128				350
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable			(26,217	)			(28,862	)
Inventory			(28,065	)			15,531
Prepaid and other assets			27,325				(20,305	)
Operating lease obligations			(32,934	)			(32,428	)
Operating liabilities			33,832				40,955
Net cash provided by operating activities			541,839				480,666
Cash flows from investing activities:
Purchases of equipment and other fixed assets			(306,055	)			(337,463	)
Payments for business acquisitions, net of cash acquired			(9,536	)			(19,687	)
Proceeds from the sale of assets			5,316				—
Payments for cost method investments			—				(128	)
Net cash used in investing activities			(310,275	)			(357,278	)
Cash flows from financing activities:
Proceeds from borrowings on long-term debt and lines of credit			253,477				50,000
Repayments on long-term debt and lines of credit			(423,477	)			(95,000	)
Repayments of finance lease obligations			(9,865	)			(6,769	)
Payments for shares purchased under share repurchase program			—				(29,275	)
Payments for tax withholdings from restricted stock vestings and stock option exercises			(2,066	)			(5,843	)
Payments of contingent consideration and deferred purchase price from acquisitions			(5,298	)			(2,535	)
Payments relating to the Tax Receivable Agreement			(1,432	)			(3,224	)
Payments of debt financing costs			(6,429	)			—
Distributions to noncontrolling interests			(5,600	)			(2,500	)
Proceeds from the exercise of stock options			742				587
Proceeds received in connection with employee stock purchase plan			999				2,031
Net cash used in financing activities			(198,949	)			(92,528	)
Net increase in cash			32,615				30,860
Cash at beginning of period			77,132				46,272
Cash at end of period		$	109,747			$	77,132

Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

This press release presents AdaptHealth’s EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin for the three and twelve months ended December 31, 2024 and 2023.

AdaptHealth defines EBITDA as net income (loss) attributable to AdaptHealth Corp., plus net income (loss) attributable to noncontrolling interests, interest expense, net, income tax expense (benefit), and depreciation and amortization, including patient equipment depreciation.

AdaptHealth defines Adjusted EBITDA as EBITDA (as defined above), plus equity-based compensation expense, change in fair value of the warrant liability, goodwill impairment, loss on extinguishment of debt, litigation settlement expense, and certain other non-recurring items of expense or income.

AdaptHealth defines Adjusted EBITDA Margin as Adjusted EBITDA (as defined above) as a percentage of net revenue.

The following unaudited table presents the reconciliation of net income (loss) attributable to AdaptHealth Corp., to EBITDA and Adjusted EBITDA, and the reconciliation of net income (loss) attributable to AdaptHealth Corp. as a percentage of net revenue to Adjusted EBITDA Margin, for the three months December 31, 2024 and 2023:

		Three Months Ended December 31,
		2024					2023
		(Unaudited)
(in thousands, except percentages)		Dollars			Revenue Percentage		Dollars			Revenue Percentage
Net income (loss) attributable to AdaptHealth Corp.		$	50,262		5.9%		$	(254,503	)	(29.7)%
Income attributable to noncontrolling interest			1,141		0.1%			928		0.1%
Interest expense, net			29,729		3.5%			33,486		3.9%
Income tax expense (benefit)			19,308		2.3%			(18,111	)	(2.1)%
Depreciation and amortization, including patient equipment depreciation			90,537		10.6%			92,364		10.8%
EBITDA			190,977		22.4%			(145,836	)	(17.0)%
Equity-based compensation expense (a)			4,266		0.5%			5,184		0.6%
Change in fair value of warrant liability (b)			(2,221	)	(0.3)%			(2,596	)	(0.3)%
Goodwill impairment (c)			—		—%			318,921		37.2%
Litigation settlement expense (d)			—		—%			25,140		2.9%
Other non-recurring expenses, net (e)			7,578		0.8%			3,806		0.4%
Adjusted EBITDA		$	200,600		23.4%		$	204,619		23.8%
Adjusted EBITDA Margin					23.4%					23.8%

	(a)		Represents equity-based compensation expense for awards granted to employees and non-employee directors.
	(b)		Represents non-cash gains for the changes in the estimated fair value of the warrant liability. The warrants expired on November 8, 2024.
	(c)		The 2023 period includes non-cash goodwill impairment charges as a result of the fair value of the Company’s reporting unit at that time being less than it's carrying value.
	(d)		The 2023 period includes a charge relating to a previously disclosed securities class action lawsuit, net of contributions from the Company’s insurers.
	(e)		The 2024 period consists of $4.2 million of consulting expenses associated with systems implementation activities, $1.6 million of consulting expenses associated with asset dispositions, $1.0 million of expenses associated with litigation, $0.5 million of severance charges, and $0.3 million of other non-recurring expenses. The 2023 period consists of $1.7 million of consulting expenses associated with systems implementation activities, $1.4 million of expenses associated with litigation, $0.8 million of severance charges, $0.6 million of lease termination costs associated with a cost management program, $0.3 million of transaction costs, and $1.5 million of other non-recurring expenses, offset by income of $2.5 million related to changes in AdaptHealth's estimated liability related to its Tax Receivable Agreement.

The following unaudited table presents the reconciliation of net income (loss) attributable to AdaptHealth Corp., to EBITDA and Adjusted EBITDA, and the reconciliation of net income (loss) attributable to AdaptHealth Corp. as a percentage of net revenue to Adjusted EBITDA Margin, for the twelve months ended December 31, 2024 and 2023:

		Twelve Months Ended December 31,
		2024					2023
		(Unaudited)
(in thousands, except percentages)		Dollars			Revenue Percentage		Dollars			Revenue Percentage
Net income (loss) attributable to AdaptHealth Corp.		$	90,422		2.8%		$	(678,895	)	(21.2)%
Income attributable to noncontrolling interest			4,358		0.1%			4,115		0.1%
Interest expense, net			126,668		3.9%			130,299		4.1%
Income tax expense (benefit)			41,239		1.3%			(49,004	)	(1.5)%
Depreciation and amortization, including patient equipment depreciation			365,334		11.1%			382,783		12.0%
EBITDA			628,021		19.2%			(210,702	)	(6.5)%
Equity-based compensation expense (a)			14,880		0.5%			22,468		0.7%
Change in fair value of warrant liability (b)			(4,021	)	(0.1)%			(34,482	)	(1.1)%
Goodwill impairment (c)			13,078		0.4%			830,787		26.0%
Loss on extinguishment of debt (d)			2,273		0.1%			—		—%
Litigation settlement expense (e)			3,338		0.1%			25,140		0.8%
Other non-recurring expenses, net (f)			31,088		0.9%			37,584		1.1%
Adjusted EBITDA		$	688,657		21.1%		$	670,795		21.0%
Adjusted EBITDA Margin					21.1%					21.0%

	(a)		Represents equity-based compensation expense for awards granted to employees and non-employee directors.
	(b)		Represents non-cash gains for the changes in the estimated fair value of the warrant liability. The warrants expired on November 8, 2024.
	(c)		The 2024 period includes non-cash goodwill impairment charges relating to the disposition of certain immaterial custom rehab technology assets. The 2023 period includes non-cash goodwill impairment charges as a result of the fair value of the Company’s reporting unit at that time being less than it's carrying value.
	(d)		Represents lender fees and the write-off of unamortized deferred financing costs in connection with the refinancing of the Company's credit agreement.
	(e)		The 2024 period includes a $2.4 million charge for the change in fair value of the shares of Common Stock of the Company that were issued in July 2024 following final court approval of a previously disclosed securities class action lawsuit, as well as an expense of $0.9 million to settle a shareholder derivative complaint. The 2023 period includes a charge relating to a previously disclosed securities class action lawsuit, net of contributions from the Company’s insurers.
	(f)		The 2024 period consists of $13.9 million of consulting expenses associated with systems implementation activities, $4.5 million of consulting expenses associated with asset dispositions, $4.2 million of expenses associated with litigation, $3.9 million of severance charges (primarily related to the separation of the Company's former President), $2.7 million write-down of assets, and $1.9 million of other non-recurring expenses. The 2023 period consists of $13.9 million of expenses associated with litigation, $7.1 million of severance charges (of which $2.9 million relates to the separation of the Company's former CEO), $5.6 million of consulting expenses associated with systems implementation activities, $5.2 million of consulting expenses associated with cost savings initiatives, $4.8 million of lease termination costs associated with a cost management program, $1.0 million of transaction costs and expenses related to integration efforts related to acquisitions, $0.9 million of net impairments of operating lease right-of-use assets as a result of vacating the leased facilities, and $1.6 million of other non-recurring expenses, offset by income of $2.5 million related to changes in AdaptHealth's estimated liability related to its Tax Receivable Agreement.

Free Cash Flow

This press release presents AdaptHealth’s free cash flow for the three and twelve months ended December 31, 2024 and 2023.

AdaptHealth defines free cash flow as net cash provided by operating activities less cash paid for purchases of equipment and other fixed assets.

The following unaudited table reconciles net cash provided by operating activities to the free cash flow measure for the three and twelve months ended December 31, 2024 and 2023:

		Three Months Ended								Twelve Months Ended
(in thousands)		December 31,								December 31,
			2024				2023				2024				2023
		(Unaudited)
Net cash provided by operating activities		$	150,415			$	155,266			$	541,839			$	480,666
Purchases of equipment and other fixed assets			(77,336	)			(88,647	)			(306,055	)			(337,463	)
Free cash flow		$	73,079			$	66,619			$	235,784			$	143,203

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250225434670/en/

AdaptHealth Corp.

Jason Clemens, CFA

Chief Financial Officer

Luke Montgomery

Senior Vice President, Investor Relations

IR@adapthealth.com

Source: AdaptHealth Corp.

FAQ

What were AdaptHealth's (AHCO) full-year 2024 financial results?

AdaptHealth reported full-year 2024 net revenue of $3.26 billion (up 1.9%), net income of $90.4 million (compared to a loss in 2023), and Adjusted EBITDA of $688.7 million (up 2.7%). Cash flow from operations was $541.8 million with free cash flow of $235.8 million.

What is AdaptHealth's (AHCO) financial guidance for 2025?

For 2025, AdaptHealth projects net revenue of $3.22-3.36 billion, Adjusted EBITDA of $670-710 million, and free cash flow of $180-220 million.

Did AdaptHealth (AHCO) sell any assets in Q4 2024?

Yes, in Q4 2024, AdaptHealth reached a definitive agreement to sell certain incontinence assets in its Wellness at Home segment to a third party.

How did AdaptHealth's (AHCO) Q4 2024 performance compare to Q4 2023?

AdaptHealth's Q4 2024 revenue decreased 0.2% to $856.6 million, Adjusted EBITDA decreased 2.0% to $200.6 million, while net income improved to $50.3 million compared to a $254.5 million loss in Q4 2023.

What are AdaptHealth's (AHCO) strategic focus areas mentioned in the Q4 2024 report?

CEO Suzanne Foster highlighted five focus areas: the One Adapt initiative, accelerating AI and automation application, increasing clinical relevance, delivering organic growth, and strengthening the balance sheet.