AdaptHealth Corp.
For the period ended Sep 30, 2025. Filed Nov 4, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 4, 2025
AHCO$7.33-1.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001628280-25-037931
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capital Resources - Free Cash FlowCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0001628280-25-048944
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capital Resources - Free Cash FlowThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 188 previous paragraphs and 210 current paragraphs.
89 unchanged; 69 reworded; 50 added; 21 removed; 9 previous and 2 current paragraphs rearranged.
Tables are not compared: 22 previous and 22 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (50)
Current report
Net Revenue.
Current report
Change in Methodology for Reporting Net Revenue Change Drivers
Current report
Beginning with the quarter ended September 30, 2025, AdaptHealth has changed how it presents the drivers that contribute to the change in net revenue between periods. AdaptHealth will now present:
Current report
(a) Organic revenue: All changes in reported net revenue from the comparable period presented excluding the impacts from acquisition (b) and disposition (c).
Current report
(b) Acquisition: The change in net revenue attributable to businesses and/or assets AdaptHealth has owned for less than one year based on the month of acquisition.
Current report
(c) Disposition: Net revenue generated in the comparative prior year period from divested product lines, services, and/or businesses for which there is no revenue recognized in the comparative months within the current period presented.
Current report
This revised presentation eliminates the “change from non-acquired” driver previously reported. The “change from non-acquired” driver represented the change in net revenue excluding the impact of revenue of businesses and/or assets AdaptHealth owned for less than one year based on the month of acquisition. This revised presentation replaces the “change from non-acquired” driver by separating the unique drivers of change for “dispositions” and “organic ,” where “organic” excludes acquisitions and also excludes the impact of dispositions. Since there is no revenue generated from a divested business subsequent to the date of disposition, the impact to the change in net revenue will exist for only one year from the date of disposition. The “organic” driver measures how AdaptHealth changes organically—that is, within its existing operations using its own resources. The change in net revenue from organic revenue is reported as organic revenue as a percentage of prior period total reported net revenue. As a result of the increased impact on net revenue from recent disposition activity, AdaptHealth believes separating the “organic” and “disposition” drivers provides appropriate visibility into revenue trends and more closely aligns with how management currently evaluates the business subsequent to the increased disposition activity.
Current report
This revised presentation has no impact on AdaptHealth's historically reported U.S. GAAP net revenues for any period.
Current report
(a) All changes in reported net revenue from the comparable period presented excluding the impacts from acquisition (b) and disposition (c).
Current report
(b) The change in net revenue attributable to businesses and/or assets AdaptHealth has owned for less than one year based on the month of acquisition.
Current report
(c) Net revenue generated in the comparative prior year period from divested product lines, services, and/or businesses for which there is no revenue recognized in the comparative months within the current period presented.
Current report
Comparison of Nine Months Ended September 30, 2025 and Nine Months Ended September 30, 2024.
Current report
Net Revenue.
Current report
Change in Methodology for Reporting Net Revenue Change Drivers
Current report
Beginning with the quarter ended September 30, 2025, AdaptHealth has changed how it presents the drivers that contribute to the change in net revenue between periods. AdaptHealth will now present:
Current report
(a) Organic revenue: All changes in reported net revenue from the comparable period presented excluding the impacts from acquisition (b) and disposition (c).
Current report
(b) Acquisition: The change in net revenue attributable to businesses and/or assets AdaptHealth has owned for less than one year based on the month of acquisition.
Current report
(c) Disposition: Net revenue generated in the comparative prior year period from divested product lines, services, and/or businesses for which there is no revenue recognized in the comparative months within the current period presented.
Current report
This revised presentation eliminates the “change from non-acquired” driver previously reported. The “change from non-acquired” driver represented the change in net revenue excluding the impact of revenue of businesses and/or assets AdaptHealth owned for less than one year based on the month of acquisition. This revised presentation replaces the “change from non-acquired” driver by separating the unique drivers of change for “dispositions” and “organic ,” where “organic” excludes acquisitions and also excludes the impact of dispositions. Since there is no revenue generated from a divested business subsequent to the date of disposition, the impact to the change in net revenue will exist for only one year from the date of disposition. The “organic” driver measures how AdaptHealth changes organically—that is, within its existing operations using its own resources. The change in net revenue from organic revenue is reported as organic revenue as a percentage of prior period total reported net revenue. As a result of the increased impact on net revenue from recent disposition activity, AdaptHealth believes separating the “organic” and “disposition” drivers provides appropriate visibility into revenue trends and more closely aligns with how management currently evaluates the business subsequent to the increased disposition activity.
Current report
This revised presentation has no impact on AdaptHealth's historically reported U.S. GAAP net revenues for any period.
Current report
(a) All changes in reported net revenue from the comparable period presented excluding the impacts from acquisition (b) and disposition (c).
Current report
(b) The change in net revenue attributable to businesses and/or assets AdaptHealth has owned for less than one year based on the month of acquisition.
Current report
(c) Net revenue generated in the comparative prior year period from divested product lines, services, and/or businesses for which there is no revenue recognized in the comparative months within the current period presented.
Current report
Loss on Extinguishment of Debt. Loss on extinguishment of debt for the nine months ended September 30, 2024 consisted of lender fees and the write-off of unamortized deferred financing costs in connection with AdaptHealth refinancing its credit facility in 2024.
Current report
Organic Revenue
Current report
AdaptHealth uses organic revenue (as defined below), which is a financial measure that is not in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, to analyze its financial results and believes that it is useful to investors, as a supplement to U.S. GAAP measures. The change in net revenue from organic revenue is reported as organic revenue as a percentage of prior period total reported net revenue. Management believes organic revenue is meaningful to investors as it provides appropriate visibility into how AdaptHealth changes organically—that is, within its existing operations using its own resources.
Current report
Organic revenue is defined as all changes in reported net revenues from the comparable period presented, excluding:
Current report
•increases in net revenue in the current period from acquisitions attributable to businesses and/or assets AdaptHealth has owned for less than one year based on the month of acquisition (“Acquisition”); and
Current report
•decreases in net revenue from dispositions existing in the prior period from divested product lines, services, and/or businesses for which there is no revenue recognized in the current period (“Disposition”).
Current report
(c)Represents lender fees and the write-off of unamortized deferred financing costs in connection with the refinancing of the Company's credit agreement.
Current report
(d)Represents lender fees and the write-off of unamortized deferred financing costs in connection with the refinancing of the Company's credit agreement.
Current report
(1) Represents the significant segment expense categories disclosed in Note 6, Segment Information, in the accompanying notes to the interim consolidated financial statements for the three and nine months ended September 30, 2025 and 2024.
Current report
Net revenue from the Sleep Health segment increased by $19.0 million, or 5.7%, for the three months ended September 30, 2025 compared to the prior year period, primarily due to an increase in sleep sales revenue primarily from higher patient census from sales of CPAP resupply products.
Current report
Adjusted EBITDA from the Sleep Health segment decreased by $2.0 million or 2.4%, for the three months ended September 30, 2025 compared to the prior year period, primarily due to increased costs and expenses, partially offset by higher net revenue (as discussed above). The increase in the cost of products and supplies was primarily driven by increased sales of CPAP resupply products as well as general inflationary cost increases. The increase in labor cost was primarily due to merit and inflationary increases as well as increases in benefits costs. The increase in other operating expenses was primarily due to higher distribution expenses and software costs. The increase in other segment items was due to an increase in general and administrative expenses that were allocated to the segment.
Current report
(1) Represents the significant segment expense categories disclosed in Note 6, Segment Information, in the accompanying notes to the interim consolidated financial statements for the three and nine months ended September 30, 2025 and 2024.
Current report
Net revenue from the Respiratory Health segment increased by $12.8 million, or 7.8%, for the three months ended September 30, 2025 compared to the prior year period, due to higher fixed monthly equipment reimbursements primarily from higher patient census for oxygen equipment products.
Current report
Adjusted EBITDA from the Respiratory Health segment increased by $7.6 million or 16.0%, for the three months ended September 30, 2025 compared to the prior year period, due to higher net revenue (as discussed above), partially offset by increased costs and expenses. The increase in cost of products and supplies was primarily due to higher patient census for oxygen equipment products as well as general inflationary cost increases. The increase in labor cost was primarily due to merit and inflationary increases as well as increases in benefits costs. The increase in other segment items was due to an increase in general and administrative expenses that were allocated to the segment.
Current report
(1) Represents the significant segment expense categories disclosed in Note 6, Segment Information, in the accompanying notes to the interim consolidated financial statements for the three and nine months ended September 30, 2025 and 2024.
Current report
Net revenue from the Diabetes Health segment increased by $9.0 million, or 6.4%, for the three months ended September 30, 2025 compared to the prior year period, primarily due to growth in patient census resulting in increased sales of CGM products and insulin pumps and supplies.
Current report
(1) Represents the significant segment expense categories disclosed in Note 6, Segment Information, in the accompanying notes to the interim consolidated financial statements for the three and nine months ended September 30, 2025 and 2024.
Showing the first 40 of 50 passages. Open the source sections for the rest.
Removed paragraphs (21)
Previous report
(a) Represents the decrease in net revenue of businesses that AdaptHealth has owned for a year or more based on the month of acquisition, which management uses as a measure of how AdaptHealth organically grows or declines by increasing or decreasing net revenue within its existing operations using its own resources.
Previous report
Comparison of Six Months Ended June 30, 2025 and Six Months Ended June 30, 2024.
Previous report
(a) Represents the decrease in net revenue of businesses that AdaptHealth has owned for a year or more based on the month of acquisition, which management uses as a measure of how AdaptHealth organically grows or declines by increasing or decreasing net revenue within its existing operations using its own resources.
Previous report
The increase in other operating expenses was primarily due to higher distribution expenses, including increased vehicle rental costs and equipment repair costs.
Previous report
(1) Represents the significant segment expense categories disclosed in Note 6, Segment Information, in the accompanying notes to the interim consolidated financial statements for the three and six months ended June 30, 2025 and 2024.
Previous report
Adjusted EBITDA from the Sleep Health segment increased by $0.1 million or 0.2%, for the three months ended June 30, 2025 compared to the prior year period, primarily due to higher net revenue (as discussed above), partially offset by increased costs and expenses. The decrease in the cost of products and supplies was primarily due to product mix, offset by general inflationary cost increases. The increase in labor cost was primarily due to annual merit increases and increases in benefits costs. The decrease in other segment items was due to a decrease in general and administrative expenses that were allocated to the segment.
Previous report
(1) Represents the significant segment expense categories disclosed in Note 6, Segment Information, in the accompanying notes to the interim consolidated financial statements for the three and six months ended June 30, 2025 and 2024.
Previous report
(1) Represents the significant segment expense categories disclosed in Note 6, Segment Information, in the accompanying notes to the interim consolidated financial statements for the three and six months ended June 30, 2025 and 2024.
Previous report
Net revenue from the Diabetes Health segment decreased by $6.2 million, or 4.1%, for the three months ended June 30, 2025 compared to the prior year period, primarily due to a shift in payor mix from commercial insurance to government payors, partially offset by growth in CGM patient census.
Previous report
(1) Represents the significant segment expense categories disclosed in Note 6, Segment Information, in the accompanying notes to the interim consolidated financial statements for the three and six months ended June 30, 2025 and 2024.
Previous report
Net revenue from the Wellness at Home segment decreased by $11.6 million, or 7.2%, for the three months ended June 30, 2025 compared to the prior year period, primarily due to decreased revenues from the disposition of two businesses in the second quarter of 2025 as well as the disposition of certain custom rehab technology assets in the third quarter of 2024, partially offset by increased revenues from HME products and certain other product categories within this segment.
Previous report
Comparison of Six Months Ended June 30, 2025 and Six Months Ended June 30, 2024.
Previous report
(1) Represents the significant segment expense categories disclosed in Note 6, Segment Information, in the accompanying notes to the interim consolidated financial statements for the three and six months ended June 30, 2025 and 2024.
Previous report
Net revenue from the Sleep Health segment decreased by $5.8 million, or 0.9%, for thesix months ended June 30, 2025 compared to the prior year period, primarily due to a decrease in net revenue from fixed monthly equipment reimbursements from lower sleep rental products and related supplies, partially offset by an increase in sleep sales revenue primarily from higher patient census from sales of CPAP resupply products.
Previous report
(1) Represents the significant segment expense categories disclosed in Note 6, Segment Information, in the accompanying notes to the interim consolidated financial statements for the three and six months ended June 30, 2025 and 2024.
Previous report
Net revenue from the Respiratory Health segment increased by $14.3 million, or 4.4%, for thesix months ended June 30, 2025 compared to the prior year period, primarily due to higher fixed monthly equipment reimbursements primarily from higher patient census for oxygen equipment products.
Previous report
Adjusted EBITDA from the Respiratory Health segment decreased by $7.2 million or 7.1%, for thesix months ended June 30, 2025 compared to the prior year period, due to higher net revenue (as discussed above), offset by increased costs and expenses. The increase in cost of products and supplies was primarily due to the benefit received in thesix months ended June 30, 2024 related to credits received from a supplier related to certain product recalls which were recognized as a reduction to the cost of products and supplies, as well as general inflationary cost increases. The increase in labor cost was primarily due to annual merit increases and increases in benefits costs. The increase in other operating expenses was primarily due to higher distribution expenses and software costs. The decrease in other segment items was due to a decrease in general and administrative expenses that were allocated to the segment.
Previous report
(1) Represents the significant segment expense categories disclosed in Note 6, Segment Information, in the accompanying notes to the interim consolidated financial statements for the three and six months ended June 30, 2025 and 2024.
Previous report
Net revenue from the Diabetes Health segment decreased by $18.2 million, or 6.0%, for thesix months ended June 30, 2025 compared to the prior year period, primarily due to a shift in payor mix from commercial insurance to government payors, partially offset by growth in CGM patient census.
Previous report
(1) Represents the significant segment expense categories disclosed in Note 6, Segment Information, in the accompanying notes to the interim consolidated financial statements for the three and six months ended June 30, 2025 and 2024.
Previous report
Net revenue from the Wellness at Home segment decreased by $10.4 million, or 3.3%, for thesix months ended June 30, 2025 compared to the prior year period, primarily due to decreased revenues from the disposition of two businesses in the second quarter of 2025 as well as the disposition of certain custom rehab technology assets in the third quarter of 2024, partially offset by increased revenues from HME products and certain other product categories within this segment.
Reworded paragraphs (69)
Previous wording
The Company services beneficiaries of Medicare, Medicaid and commercial insurance payors. As of June 30, 2025, AdaptHealth serviced approximately 4.2 million patients annually in all 50 states through its network of approximately 630 locations in 47 states. The Company’s principal executive offices are located at 555 East North Lane, Suite 5075, Conshohocken, Pennsylvania 19428.
Current wording
The Company services beneficiaries of Medicare, Medicaid and commercial insurance payors. As of September 30, 2025, AdaptHealth serviced approximately 4.3 million patients annually in all 50 states through its network of approximately 640 locations in 47 states. The Company’s principal executive offices are located at 555 East North Lane, Suite 5075, Conshohocken, Pennsylvania 19428.
Previous wording
During thethree and six months ended June 30, 2024, the Company previously classified certain expenses, primarily related to revenue cycle management costs, as a component of Cost of net revenue in its Consolidated Statements of Operations. During thethree and six months ended June 30, 2025, the Company has classified these costs within General and administrative expenses to better align with common industry practice, and has reclassified these costs in its Consolidated Statements of Operations for thethree and six months ended June 30, 2024 to conform to the current period presentation. During thethree and six months ended June 30, 2024, the Company reclassified $42.3 million and $83.0 million, respectively, from Cost of net revenue to General and administrative expenses. The resulting reclassifications had no impact on the Company's historical reported net revenue, operating income (loss), or cash flows from operating activities, investing activities, and financing activities for thethree and six months ended June 30, 2024.
Current wording
During thethree and nine months ended September 30, 2024, the Company previously classified certain expenses, primarily related to revenue cycle management costs, as a component of Cost of net revenue in its Consolidated Statements of Operations. During thethree and nine months ended September 30, 2025, the Company has classified these costs within General and administrative expenses to better align with common industry practice, and has reclassified these costs in its Consolidated Statements of Operations for thethree and nine months ended September 30, 2024 to conform to the current period presentation. During thethree and nine months ended September 30, 2024, the Company reclassified $38.1 million and $121.1 million, respectively, from Cost of net revenue to General and administrative expenses. The resulting reclassifications had no impact on the Company's historical reported net revenue, operating income (loss), or cash flows from operating activities, investing activities, and financing activities for thethree and nine months ended September 30, 2024.
Previous wording
(a) Certain amounts previously reported within Cost of net revenue have been reclassified to General and administrative expenses in order to conform to the current year presentation. See Note 1(f), Reclassifications, included in the accompanying notes to the interim consolidated financial statements for thethree and six months ended June 30, 2025 and 2024 for additional discussion of such reclassification.
Current wording
(a) Certain amounts previously reported within Cost of net revenue have been reclassified to General and administrative expenses in order to conform to the current year presentation. See Note 1(f), Reclassifications, included in the accompanying notes to the interim consolidated financial statements for thethree and nine months ended September 30, 2025 and 2024 for additional discussion of such reclassification.
Previous wording
Net Revenue. The comparability of AdaptHealth's net revenue between periods was impacted by certain factors as described below. The table below presents the items that impacted the change in AdaptHealth's net revenue between periods.
Current wording
The comparability of AdaptHealth's net revenue between periods was impacted by certain factors as described below. The table below presents the items that impacted the change in AdaptHealth's net revenue between periods.
Previous wording
Net revenue from AdaptHealth's Sleep Health segment decreased by $5.8 million, or 0.9%, for thesix months ended June 30, 2025 compared to the prior year period, primarily due to a decrease in net revenue from fixed monthly equipment reimbursements from lower sleep rental products and related supplies, partially offset by an increase in sleep sales revenue primarily from higher patient census from sales of CPAP resupply products. Net revenue from AdaptHealth's Respiratory Health segment increased by $14.3 million, or 4.4%, for thesix months ended June 30, 2025 compared to the prior year period, primarily due to higher fixed monthly equipment reimbursements primarily from higher patient census for oxygen equipment products. Net revenue from AdaptHealth's Diabetes Health segment decreased by $18.2 million, or 6.0%, for thesix months ended June 30, 2025 compared to the prior year period, primarily due to a shift in payor mix from commercial insurance to government payors, partially offset by growth in CGM patient census. Net revenue from AdaptHealth's Wellness at Home segment decreased by $10.4 million, or 3.3% for thesix months ended June 30, 2025 compared to the prior year period, primarily due to decreased revenues from the disposition of two businesses in the second quarter of 2025 as well as the disposition of certain custom rehab technology assets in the third quarter of 2024, partially offset by increased revenues from HME products and certain other product categories within this segment.
Current wording
Net revenue from AdaptHealth's Sleep Health segment increased by $19.0 million, or 5.7%, for the three months ended September 30, 2025 compared to the prior year period, primarily due to an increase in sleep sales revenue primarily from higher patient census from sales of CPAP resupply products. Net revenue from AdaptHealth's Respiratory Health segment increased by $12.8 million, or 7.8%, for the three months ended September 30, 2025 compared to the prior year period, due to higher fixed monthly equipment reimbursements primarily from higher patient census for oxygen equipment products. Net revenue from AdaptHealth's Diabetes Health segment increased by $9.0 million, or 6.4%, for the three months ended September 30, 2025 compared to the prior year period, primarily due to growth in patient census resulting in increased sales of CGM products and insulin pumps and supplies. Net revenue from AdaptHealth's Wellness at Home segment decreased by $26.4 million, or 16.0% for the three months ended September 30, 2025 compared to the prior year period, primarily due to decreased revenues from the disposition of two businesses in the second quarter of 2025 as well as the disposition of certain custom rehab technology assets in the third quarter of 2024, partially offset by increased revenues from HME products and certain other product categories within this segment.
Previous wording
For the three months ended June 30, 2025, net sales revenue comprised 63.1% of total net revenue, compared to 64.1% of total net revenue for the three months ended June 30, 2024. For the three months ended June 30, 2025, net revenue from fixed monthly equipment reimbursements comprised 33.0% of total net revenue, compared to 32.0% of total net revenue for the three months ended June 30, 2024. For the three months ended June 30, 2025 and 2024, net revenue from capitated revenue arrangements comprised 3.9% of total net revenue.
Current wording
For the three months ended September 30, 2025, net sales revenue comprised 61.7% of total net revenue, compared to 63.4% of total net revenue for the three months ended September 30, 2024. For the three months ended September 30, 2025, net revenue from fixed monthly equipment reimbursements comprised 34.4% of total net revenue, compared to 32.6% of total net revenue for the three months ended September 30, 2024. For the three months ended September 30, 2025, net revenue from capitated revenue arrangements comprised 3.9% of total net revenue, compared to 4.0% of total net revenue for the three months ended September 30, 2024.
Previous wording
Certain amounts previously reported within these categories of Cost of net revenue have been reclassified to General and administrative expenses in order to conform to the current year presentation. See Note 1(f), Reclassifications, included in the accompanying notes to the interim consolidated financial statements for thethree and six months ended June 30, 2025 and 2024 for additional discussion of such reclassification.
Current wording
Certain amounts previously reported within these categories of Cost of net revenue have been reclassified to General and administrative expenses in order to conform to the current year presentation. See Note 1(f), Reclassifications, included in the accompanying notes to the interim consolidated financial statements for thethree and nine months ended September 30, 2025 and 2024 for additional discussion of such reclassification.
Previous wording
Cost of net revenue for the six months ended June 30, 2025 and 2024 was $1,303.2 million and $1,271.7 million, respect ively, an increase of $31.5 million or 2.5%. Costs of products and supplies increased by$14.8 million primarily as aresult of product mix and general inflationary cost increases, partially offset by lower net sales revenue. The increase in cost of products and supplies was also attributable to the benefit received in the six months ended June 30, 2024 related to credits received from a supplier related to certain product recalls which were recognized as a reduction to the cost of products and supplies. Salaries, labor and benefits increased by $9.7 million, primarily due to annual merit increases and increases in benefits costs. Patient equipment depreciation increased by $4.8 million, primarily due to higher medical equipment prices.
Current wording
Cost of net revenue for the three months ended September 30, 2025 and 2024 was $658.4 million and $643.8 million, respectively, an increase of $14.6 million or 2.3%. Costs of products and supplies increased by $0.5 million primarily as a result of product mix as well as general inflationary cost increases, partially offset by slightly lower net sales revenue. Salaries, labor and benefits increased by $5.4 million, primarily due to merit and inflationary increases as well as increases in benefits costs. Patient equipment depreci ation increased by $8.1 million, primarily due to accelerated depreciation on certain respiratory equipment resulting from a change in the estimated useful life of the assets, as well as higher fixed monthly equipment reimbursements and higher medical equipment prices.
Previous wording
General and Administrative Expenses. General and administrative expenses for the three months ended June 30, 2025 and 2024 were $97.4 million and $99.4 million respectively, a decrease of $1.9 million or 1.9%. This decrease is primarily due to lower consulting expenses and salaries, labor and benefits, partially offset by higher software costs, legal settlement costs and equity-based compensation. General and administrative expenses as a percentage of net revenue was 12.2% in the 2025 period, compared to 12.3% in the 2024 period. General and administrative expenses in the 2025 period included $4.5 million of equity-based compensation expense and other non-recurring expenses of $9.8 million, consisting of $6.9 million of consulting expenses associated with asset dispositions (of which $5.1 million relates to contingent success fees on the sales of businesses), $1.0 million of transaction costs associated with acquisitions, and $1.9 million of other expenses. General and administrative expenses in the 2024 period included $3.9 million of equity-based compensation expense and other non-recurring expenses of $9.4 million, consisting of $5.8 million of consulting expenses associated with systems implementation activities, $1.6 million of expenses associated with litigation, $0.3 million of consulting expenses associated with asset dispositions, and $1.7 million of other expenses.
Current wording
General and Administrative Expenses. General and administrative expenses for the three months ended September 30, 2025 and 2024 were $90.1 million and $87.3 million respectively, an increase of $2.8 million or 3.2%. This increase is primarily due to higher equity-based compensation and salaries, labor and benefits, partially offset by lower severance charges and legal settlement costs. General and administrative expenses as a percentage of net revenue was 11.0% in the 2025 period, compared to 10.8% in the 2024 period. General and administrative expenses in the 2025 period included $4.6 million of equity-based compensation expense and $5.4 million of other non-recurring expenses, consisting of $1.7 million of consulting expenses associated with a reorganization project, $1.2 million write-off of assets, $0.6 million of consulting expenses associated with asset dispositions, and $1.9 million of other expenses. General and administrative expenses in the 2024 period included less than $0.1 million of equity-based compensation expense and $8.3 million of other non-recurring expenses, consisting of $3.2 million of severance charges (primarily related to the separation of the Company's former President), $2.8 million of consulting expenses associated with systems implementation activities, $2.0 million of consulting expenses associated with asset dispositions, $0.5 million of expenses associated with litigation, partially offset by $0.2 million of other income.
Previous wording
Depreciation and amortization, excluding patient equipment depreciation. Depreciation and amortization, excluding patient equipment depreciation, for the six months ended June 30, 2025 and 2024 was $20.6 million and $22.8 million, respectively, a decrease of $2.2 million, primarily related to lower intangible amortization expense.
Current wording
Depreciation and amortization, excluding patient equipment depreciation. Depreciation and amortization, excluding patient equipment depreciation, for the three months ended September 30, 2025 and 2024 was $10.1 million and
Previous wording
Interest Expense, net. Interest expense, net for the three months ended June 30, 2025 and 2024 was $27.5 million and $33.0 million, respectively, a decrease of $5.5 million. Interest expense related to AdaptHealth's credit agreement decreased by $6.6 million in 2025 compared to 2024 as a result of lower interest rates as well as lower average outstanding borrowings in 2025 compared to 2024. This decrease was partially offset by an increase of $0.1 million related to AdaptHealth's finance leases in 2025 compared to 2024. In addition, the impact from AdaptHealth's interest rate swap agreements reduced interest expense by $0.9 million and $1.5 million in 2025 and 2024, respectively.
Current wording
Interest Expense, net. Interest expense, net for the three months ended September 30, 2025 and 2024 was $25.4 million and $31.4 million, respectively, a decrease of $6.0 million. Interest expense related to AdaptHealth's credit agreement decreased by $6.5 million in 2025 compared to 2024 as a result of lower interest rates as well as lower average outstanding borrowings in 2025 compared to 2024. This decrease was partially offset by the impact from AdaptHealth's interest rate swap agreements, which reduced interest expense by $0.9 million and $1.6 million in 2025 and 2024, respectively.
Previous wording
The following table summarizes AdaptHealth’s consolidated results of operations for the six months ended June 30, 2025 and 2024:
Current wording
The following table summarizes AdaptHealth’s consolidated results of operations for the nine months ended September 30, 2025 and 2024:
Previous wording
(a) Certain amounts previously reported within Cost of net revenue have been reclassified to General and administrative expenses in order to conform to the current year presentation. See Note 1(f), Reclassifications, included in the accompanying notes to the interim consolidated financial statements for thethree and six months ended June 30, 2025 and 2024 for additional discussion of such reclassification.
Current wording
(a) Certain amounts previously reported within Cost of net revenue have been reclassified to General and administrative expenses in order to conform to the current year presentation. See Note 1(f), Reclassifications, included in the accompanying notes to the interim consolidated financial statements for thethree and nine months ended September 30, 2025 and 2024 for additional discussion of such reclassification.
Previous wording
Net Revenue. The comparability of AdaptHealth's net revenue between periods was impacted by certain factors as described below. The table below presents the items that impacted the change in AdaptHealth's net revenue between periods.
Current wording
The comparability of AdaptHealth's net revenue between periods was impacted by certain factors as described below. The table below presents the items that impacted the change in AdaptHealth's net revenue between periods.
Previous wording
Net revenue from AdaptHealth's Sleep Health segment increased by $3.1 million, or 0.9%, for the three months ended June 30, 2025 compared to the prior year period, primarily due to an increase in sleep sales revenue primarily from higher patient census from sales of CPAP resupply products, partially offset by a decrease in net revenue from fixed monthly equipment reimbursements from lower sleep rental products and related supplies. Net revenue from AdaptHealth's Respiratory Health segment increased by $9.1 million, or 5.6%, for the three months ended June 30, 2025 compared to the prior year period, due to higher fixed monthly equipment reimbursements primarily from higher patient census for oxygen equipment products. Net revenue from AdaptHealth's Diabetes Health segment decreased by $6.2 million, or 4.1%, for the three months ended June 30, 2025 compared to the prior year period, primarily due to a shift in payor mix from commercial insurance to government payors, partially offset by growth in CGM patient census. Net revenue from AdaptHealth's Wellness at Home segment decreased by $11.6 million, or 7.2% for the three months ended June 30, 2025 compared to the prior year period, primarily due to decreased revenues from the disposition of two businesses in the second quarter of 2025 as well as the disposition of certain custom rehab technology assets in the third quarter of 2024, partially offset by increased revenues from HME products and certain other product categories within this segment.
Current wording
Net revenue from AdaptHealth's Sleep Health segment increased by $13.2 million, or 1.3%, for thenine months ended September 30, 2025 compared to the prior year period, primarily due to an increase in sleep sales revenue primarily from higher patient census from sales of CPAP resupply products, partially offset by a decrease in net revenue from fixed monthly equipment reimbursements from lower sleep rental products and related supplies. Net revenue from AdaptHealth's Respiratory Health segment increased by $27.1 million, or 5.6%, for the nine months ended September 30, 2025 compared to the prior year period, primarily due to higher fixed monthly equipment reimbursements primarily from higher patient census for oxygen equipment products. Net revenue from AdaptHealth's Diabetes Health segment decreased by $9.2 million, or 2.1%, for the nine months ended September 30, 2025 compared to the prior year period, primarily due to a shift in payor mix from commercial insurance to government payors, partially offset by growth in patient census for CGM products and insulin pumps and supplies. Net revenue from AdaptHealth's Wellness at Home segment decreased by $36.8 million, or 7.6% for the nine months ended September 30, 2025 compared to the prior year period, primarily due to decreased revenues from the disposition of two businesses in the second quarter of 2025 as well as the disposition of certain custom rehab technology assets in the third quarter of 2024, partially offset by increased revenues from HME products and certain other product categories within this segment.
Previous wording
For the six months ended June 30, 2025, net sales revenue comprised 63.4% of total net revenue, compared to 63.9% of total net revenue for the six months ended June 30, 2024. For the six months ended June 30, 2025, net revenue from fixed monthly equipment reimbursements comprised 32.6% of total net revenue, compared to 32.1% of total net revenue for the six months ended June 30, 2024. For thesix months ended June 30, 2025 and 2024, net revenue from capitated revenue arrangements comprised 4.0% of total net revenue.
Current wording
For the nine months ended September 30, 2025, net sales revenue comprised 62.8% of total net revenue, compared to 63.7% of total net revenue for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, net revenue from fixed monthly equipment reimbursements comprised 33.2% of total net revenue, compared to 32.2% of total net revenue for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, net revenue from capitated revenue arrangements comprised 4.0% of total net revenue, compared to 4.1% of total net revenue for thenine months ended September 30, 2024.
Previous wording
The following table summarizes cost of net revenue for the six months ended June 30, 2025 and 2024:
Current wording
The following table summarizes cost of net revenue for the nine months ended September 30, 2025 and 2024:
Previous wording
Certain amounts previously reported within these categories of Cost of net revenue have been reclassified to General and administrative expenses in order to conform to the current year presentation. See Note 1(f), Reclassifications, included in the accompanying notes to the interim consolidated financial statements for the three and six months ended June 30, 2025 and 2024 for additional discussion of such reclassification.
Current wording
Certain amounts previously reported within these categories of Cost of net revenue have been reclassified to General and administrative expenses in order to conform to the current year presentation. See Note 1(f), Reclassifications, included in the accompanying notes to the interim consolidated financial statements for the three and nine months ended September 30, 2025 and 2024 for additional discussion of such reclassification.
Previous wording
Cost of net revenue for the three months ended June 30, 2025 and 2024 was $645.7 million and $636.6 million, respectively, an increase of $9.1 million or 1.4%. Costs of products and supplies increased by $3.1 million primarily as a result of product mix and general inflationary cost increases, partially offset by lower net sales revenue. The increase in cost of products and supplies was also attributable to the benefit received in the three months ended June 30, 2024 related to credits received from a supplier related to certain product recalls which were recognized as a reduction to the cost of products and supplies. Salaries, labor and benefits increased by$3.6 million, primarily due to annual merit increases and increases in benefits costs. Patient equipment depreciation increased by $2.4 million, primarily due to higher medical equipment prices.
Current wording
Cost of net revenue for the nine months ended September 30, 2025 and 2024 was $1,961.5 million and $1,915.4 million, respectively, an increase of $46.1 million or 2.4%. Costs of products and supplies increased by $15.2 million primarily as aresult of product mix and general inflationary cost increases, partially offset by lower net sales revenue. The increase in cost of products and supplies was also attributable to the benefit received in the nine months ended September 30, 2024 related to credits received from a supplier related to certain product recalls which were recognized as a reduction to the cost of products and supplies. Salaries, labor and benefits increased by $15.0 million, primarily due to merit and inflationary increases as well as increases in benefits costs. Patient equipment depreciation increased by $12.9 million, primarily due to accelerated depreciation on certain respiratory equipment resulting from a change in the estimated useful life of the assets, as well as higher fixed monthly equipment reimbursements and higher medical equipment prices.
Previous wording
General and Administrative Expenses. General and administrative expenses for the six months ended June 30, 2025 and 2024 were $184.3 million and $188.4 million, respectively, a decrease of $4.1 million or 2.2%. This decrease is primarily due to lower salaries, labor and benefits and consulting costs, partially offset by higher software costs and equity-based compensation. General and administrative expenses as a percentage of net revenue was 11.6% in the 2025 period, compared to 11.8% in the 2024 period. General and administrative expenses in the 2025 period included$8.6 million of equity-based compensation expense and other non-recurring expenses of $14.9 million, consisting of $9.2 million of consulting expenses associated with asset dispositions (of which $5.1 million relates to contingent success fees on the sales of businesses), $2.0 million of consulting expenses associated with systems implementation activities, $1.1 million of transaction costs associated with acquisitions, and $2.5 million of other expenses. General and administrative expenses in the 2024 period included $7.2 million of equity-based compensation expense and other non-recurring expenses of $12.7 million, consisting of $6.9 million of consulting expenses associated with systems implementation activities,$2.8 million of expenses associated with litigation,$0.9 million of consulting expenses associated with asset dispositions, and$2.1 million of other expenses.
Current wording
General and Admi nistrative Expenses. General and administrative expenses for the nine months ended September 30, 2025 and 2024 were $274.4 million and $275.7 million, respectively, a decrease of $1.3 million or 0.5%. This decrease is primarily due to lower salaries, labor and benefits, severance charges, and consulting costs, partially offset by higher equity-based compensation and software costs. General and administrative expenses as a percentage of net revenue was 11.4% in the 2025 period, compared to 11.5% in the 2024 period. General and administrative expenses in the 2025 period included$13.2 million of equity-based compensation expenseand $20.2 million of other non-recurring expenses, consisting of $9.8 million of consulting expenses associated with asset dispositions (of which $5.1 million relates to contingent success fees on the sales of businesses), $2.2 million of consulting expenses associated with systems implementation activities, $1.7 million of consulting expenses associated with a reorganization project, $1.4 million of transaction costs associated with acquisitions, $1.2 million write-off of assets, and $3.9 million of other expenses. General and administrative expenses in the 2024 period included $7.2 million of equity-based compensation expense and $21.0 million of other non-recurring expenses, consisting of $9.7 million of consulting expenses associated with systems implementation activities,$3.3 million of expenses associated with litigation,$3.2 million of severance charges (primarily related to the separation of the Company's former President),$2.9 million of consulting expenses associated with asset dispositions, and $1.9 million of other expenses.
Previous wording
Depreciation and amortization, excluding patient equipment depreciation. Depreciation and amortization, excluding patient equipment depreciation, for the three months ended June 30, 2025 and 2024 was $10.2 million and $11.4 million, respectively, a decrease of $1.2 million, primarily related to lower intangible amortization expense.
Current wording
Depreciation and amortization, excluding patient equipment depreciation. Depreciation and amortization, excluding patient equipment depreciation, for the nine months ended September 30, 2025 and 2024 was $30.7 million and $34.0 million, respectively, a decrease of $3.3 million, primarily related to lower intangible amortization expense and lower depreciation from owned delivery vehicles.
Previous wording
Goodwill Impairment. The goodwill impairment charge for thesix months ended June 30, 2024 relates to an immaterial business disposal during 2024.
Current wording
Goodwill Impairment. The goodwill impairment charge for thenine months ended September 30, 2024 relates to an immaterial business disposal during 2024.
Previous wording
Gain on sale of businesses. The gain on sale of businesses for the three months ended June 30, 2025 relates to the disposition of two businesses within AdaptHealth's Wellness at Home segment. See Note 4, Disposals, for additional information.
Current wording
Gain on sale of businesses. The gain on sale of businesses for thenine months ended September 30, 2025 relates to the disposition of two businesses within AdaptHealth's Wellness at Home segment. See Note 4, Disposals, for additional information.
Previous wording
Interest Expense, net. Interest expense, net for the six months ended June 30, 2025 and 2024 was $55.9 million and $65.5 million, respectively, a decrease of $9.6 million. Interest expense related to AdaptHealth's credit agreement decreased by $12.2 million in 2025 compared to 2024 as a result of lower interest rates as well as lower average outstanding borrowings in 2025 compared to 2024. This decrease was partially offset by an increase of $0.5 million related to AdaptHealth's finance leases in 2025 compared to 2024. In addition, the impact from AdaptHealth's interest rate swap agreements reduced interest expense by $1.8 million and $3.6 million in 2025 and 2024, respectively.
Current wording
Interest Expense, net. Interest expense, net for the nine months ended September 30, 2025 and 2024 was $81.3 million and $96.9 million, respectively, a decrease of $15.6 million. Interest expense related to AdaptHealth's credit agreement decreased by $18.7 million in 2025 compared to 2024 as a result of lower interest rates as well as lower average outstanding borrowings in 2025 compared to 2024. This decrease was partially offset by an increase of $0.5 million related to AdaptHealth's finance leases in 2025 compared to 2024. In addition, the impact from AdaptHealth's interest rate swap agreements reduced interest expense by $2.7 million and $4.8 million in 2025 and 2024, respectively.
Previous wording
Change in Fair Value of Warrant Liability. During thesix months ended June 30, 2024, AdaptHealth had outstanding warrants to purchase shares of Common Stock, as discussed in Note 12, Stockholders’ Equity, to the accompanying June 30, 2025 interim consolidated financial statements. These warrants were liability-classified, and the change in fair value of the warrant liability represents a non-cash charge in the six months ended June 30, 2024 for the change in the estimated fair value of such liability during such period. These warrants expired on November 8, 2024.
Current wording
Change in Fair Value of Warrant Liability. During the nine months ended September 30, 2024, AdaptHealth had outstanding warrants to purchase shares of Common Stock, as discussed in Note 12, Stockholders’ Equity, to the accompanying September 30, 2025 interim consolidated financial statements. These warrants were liability-classified, and the change in fair value of the warrant liability represents a non-cash gain in the nine months ended June 30, 2024 for the change in the estimated fair value of such liability during such period. These warrants expired on November 8, 2024.
Previous wording
Other Loss, net. Other loss, net for the six months ended June 30, 2024 consisted of a pre-tax expense of $2.4 million for the change in fair value of shares of AdaptHealth's Common Stock that were issued in July 2024 following final court approval of the settlement of a previously disclosed securities class action lawsuit, as well as an expense of $0.9 million to settle a shareholder derivative complaint.
Current wording
Other Loss. Other loss for the nine months ended September 30, 2024 consisted of a pre-tax expense of $2.4 million for the change in fair value of shares of AdaptHealth's Common Stock that were issued in July 2024 following final court approval of the settlement of a previously disclosed securities class action lawsuit, as well as an expense of $0.9 million to settle a shareholder derivative complaint.
Previous wording
Income Tax Expense. Income tax expense for the three months ended June 30, 2025 and 2024 was $35.9 million and $7.2 million, respectively. Income tax expense on ordinary income decreased due to lower pre-tax income, net of gains recognized on the disposition of two businesses within the Wellness at Home segment. Additionally, for the three months ended June 30, 2025, AdaptHealth recognized a $27.4 million discrete income tax expense related to the dispositions. See Note 4, Disposals, for additional details.
Current wording
Income Tax Expense. Income tax expense for the nine months ended September 30, 2025 and 2024 was $47.3 million and $21.9 million, respectively. Income tax expense on ordinary income decreased due to lower pre-tax income, net of gains recognized on the disposition of two businesses within the Wellness at Home segment. Additionally, for the nine months ended September 30, 2025, AdaptHealth recognized a $27.4 million discrete income tax expense related to the dispositions. See Note 4, Disposals, for additional details.
Previous wording
AdaptHealth uses EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin, 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,
Current wording
AdaptHealth uses EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin, 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, AdaptHealth’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.
Previous wording
AdaptHealth defines Adjusted EBITDA as EBITDA (as defined above), plus equity-based compensation expense, change in fair value of the warrant liability, goodwill impairment, litigation settlement expense (gain), gain on sale of businesses, and certain other non-recurring items of expense or income.
Current wording
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, gain on sale of businesses, and certain other non-recurring items of expense or income.
Previous wording
(b)Represents a non-cash gain for the change in the estimated fair value of the warrant liability. See Note 12, Stockholders’ Equity, included in the accompanying notes to the interim consolidated financial statements for the three and six months ended June 30, 2025 for additional discussion of such non-cash gain. These warrants expired on November 8, 2024.
Current wording
(b)Represents a non-cash gain for the change in the estimated fair value of the warrant liability. See Note 12, Stockholders’ Equity, included in the accompanying notes to the interim consolidated financial statements for the three and nine months ended September 30, 2025 for additional discussion of such non-cash gain. These warrants expired on November 8, 2024.
Previous wording
(f)The 2025 period consists of $6.9 million of consulting expenses associated with asset dispositions (of which $5.1 million relates to contingent success fees from the sales of businesses), $1.0 million of transaction costs associated with acquisitions, and $2.1 million of other non-recurring expenses. The 2024 period consists of $5.8 million of consulting expenses associated with systems implementation activities, $1.6 million of expenses associated with litigation, a $0.9 million write-down of assets, $0.3 million of consulting expenses associated with asset dispositions, and $1.7 million of other non-recurring expenses.
Current wording
(d)The 2025 period consists of $1.7 million of consulting expenses associated with a reorganization project, $1.2 million write-off of assets, $0.6 million of consulting expenses associated with asset dispositions, and $1.8 million of other non-recurring expenses. The 2024 period consists of $3.3 million of severance charges (primarily related to the separation of the Company's former President), $2.8 million of consulting expenses associated with systems implementation activities, $2.0 million of consulting expenses associated with asset dispositions, $0.5 million of expenses associated with litigation, and a $1.1 million write-down of assets, partially offset by $0.6 million of other net non-recurring income.
Previous wording
The following unaudited table presents the reconciliation of net income attributable to AdaptHealth Corp. to EBITDA and Adjusted EBITDA, and the reconciliation of net income attributable to AdaptHealth Corp. as a percentage of net revenue to Adjusted EBITDA Margin, for thesix months ended June 30, 2025 and 2024:
Current wording
The following unaudited table presents the reconciliation of net income attributable to AdaptHealth Corp. to EBITDA and Adjusted EBITDA, and the reconciliation of net income attributable to AdaptHealth Corp. as a percentage of net revenue to Adjusted EBITDA Margin, for thenine months ended September 30, 2025 and 2024:
Previous wording
(b)Represents a non-cash charge for the change in the estimated fair value of the warrant liability. See Note 12, Stockholders’ Equity, included in the accompanying notes to the interim consolidated financial statements for the three and six months ended June 30, 2025 for additional discussion of such non-cash charge. These warrants expired on November 8, 2024.
Current wording
(b)Represents a non-cash gain for the change in the estimated fair value of the warrant liability. See Note 12, Stockholders’ Equity, included in the accompanying notes to the interim consolidated financial statements for the three and nine months ended September 30, 2025 for additional discussion of such non-cash gain. These warrants expired on November 8, 2024.
Previous wording
(d)Represents a $2.4 million charge for the change in fair value of shares of Common Stock of the Company that were issued in July 2024 following final court approval of a previously disclosed securities settlement, as well as an expense of $0.9 million to settle a shareholder derivative complaint.
Current wording
(e)Represents a $2.4 million charge for the change in fair value of shares of Common Stock of the Company that were issued in July 2024 following final court approval of a previously disclosed securities settlement, as well as an expense of $0.9 million to settle a shareholder derivative complaint.
Previous wording
(e)Represents pre-tax gains associated with the dispositions of two businesses within the Company's Wellness at Home segment. See Note 4, Disposals, for additional discussion of such gains.
Current wording
(f)Represents pre-tax gains associated with the dispositions of two businesses within the Company's Wellness at Home segment. See Note 4, Disposals, for additional discussion of such gains.
Previous wording
(f)The 2025 period consists of $9.2 million of consulting expenses associated with asset dispositions (of which $5.1 million relates to contingent success fees from the sales of businesses), $2.0 million of consulting expenses associated with systems implementation activities, $1.1 million of transaction costs associated with acquisitions, and $2.8 million of other non-recurring expenses. The 2024 period consists of $6.9 million of consulting expenses associated with systems implementation activities, $2.8 million of expenses associated with litigation, a $1.6 million write-down of assets, $0.9 million of consulting expenses associated with asset dispositions, and $2.2 million of other non-recurring expenses.
Current wording
(g)The 2025 period consists of $9.8 million of consulting expenses associated with asset dispositions (of which $5.1 million relates to contingent success fees from the sales of businesses), $2.3 million of consulting expenses associated with systems implementation activities, $1.7 million of consulting expenses associated with a reorganization project, $1.4 million of transaction costs associated with acquisitions, $1.2 million write-off of assets, and $4.1 million of other non-recurring expenses. The 2024 period consists of $9.7 million of consulting expenses associated with systems implementation activities, $3.3 million of severance charges (primarily related to the separation of the Company's former President), $3.3 million of expenses associated with litigation, $2.9 million of consulting expenses associated with asset dispositions, $2.7 million write-down of assets, and $1.6 million of other non-recurring expenses.
Previous wording
(a) See Note 6, Segment Information, in the accompanying notes to the interim consolidated financial statements for the three and six months ended June 30, 2025 and 2024 for a reconciliation of consolidated Adjusted EBITDA to consolidated income before income taxes.
Current wording
(a) See Note 6, Segment Information, in the accompanying notes to the interim consolidated financial statements for the three and nine months ended September 30, 2025 and 2024 for a reconciliation of consolidated Adjusted EBITDA to consolidated income before income taxes.
Previous wording
Adjusted EBITDA from the Diabetes Health segment decreased by $5.2 million or 48.5%, for the three months ended June 30, 2025 compared to the prior year period, due to lower net revenue (as discussed above), partially offset by decreased costs and expenses. The increase in the cost of products and supplies was primarily due to growth in CGM patient census and general inflationary cost increases. The decrease in other operating expenses was primarily due to lower rent and occupancy costs. The decrease in other segment items was due to a decrease in general and administrative expenses that were allocated to the segment.
Current wording
Adjusted EBITDA from the Diabetes Health segment increased by $2.7 million or 37.2%, for the three months ended September 30, 2025 compared to the prior year period, due to higher net revenue (as discussed above), partially offset by increased costs and expenses. The increase in the cost of products and supplies was primarily due to growth in CGM patient census and general inflationary cost increases. The increase in labor cost was primarily due to merit and inflationary increases as well as increases in benefits costs. The increase in other operating expenses was primarily due to higher distribution expenses and software costs, partially offset by lower rent and occupancy costs. The decrease in other segment items was due to a decrease in general and administrative expenses that were allocated to the segment.
Previous wording
Adjusted EBITDA from the Wellness at Home segment increased by $2.7 million or 15.2%, for the three months ended June 30, 2025 compared to the prior year period, due to lower costs and expenses, partially offset by lower net revenue (as discussed above). The decrease in total costs and expenses is primarily due to the disposition of two businesses in the second quarter of 2025 as well as the disposition of certain custom rehab technology assets in the third quarter of 2024.
Current wording
Adjusted EBITDA from the Wellness at Home segment decreased by $2.5 million or 10.8%, for the three months ended September 30, 2025 compared to the prior year period, due to lower net revenue (as discussed above), partially offset by lower costs and expenses. The decrease in total costs and expenses is primarily due to the disposition of two businesses in the second quarter of 2025, and to a lesser extent, the disposition of certain custom rehab technology assets in the third quarter of 2024.
Previous wording
The following table summarizes the performance of the Company’s reportable segments for thesix months ended June 30, 2025 and 2024:
Current wording
The following table summarizes the performance of the Company’s reportable segments for thenine months ended September 30, 2025 and 2024:
Showing the first 40 of 69 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
$11.3 million, respectively, a decrease of $1.2 million, primarily related to lower intangible amortization expense and lower depreciation from owned delivery vehicles.
Current report — wording carried from elsewhere
Income Tax Expense. Income tax expense for the three months ended September 30, 2025 and 2024 was $10.6 million and $8.1 million, respectively. Income tax expense on ordinary income increased due to higher pre-tax income.
Rearranged previous paragraphs (9)
Previous report — wording carried elsewhere
Goodwill Impairment. The goodwill impairment charge for the three months ended June 30, 2024 relates to an immaterial business disposal during 2024.
Previous report — wording carried elsewhere
Other Income. Other income for the three months ended June 30, 2024 consisted of a pre-tax gain of $1.8 million for the change in fair value of shares of AdaptHealth's Common Stock that were issued in July 2024 following final court approval of the settlement of a previously disclosed securities class action lawsuit.
Previous report — wording carried elsewhere
Gain on sale of businesses. The gain on sale of businesses for the six months ended June 30, 2025 relates to the disposition of two businesses within AdaptHealth's Wellness at Home segment. See Note 4, Disposals, for additional information.
Previous report — wording carried elsewhere
Income Tax Expense. Income tax expense for the six months ended June 30, 2025 and 2024 was $36.7 million and $13.9 million, respec tively. Income tax expense on ordinary income decreased due to lower pre-tax income, net of gains recognized on the disposition of two businesses within the Wellness at Home segment. Additionally, for the six months ended June 30, 2025, AdaptHealth recognized a $27.4 million discrete income tax expense related to the dispositions. See Note 4, Disposals, for additional details.
Previous report — wording carried elsewhere
AdaptHealth’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.
Previous report — wording carried elsewhere
(c)Represents a non-cash goodwill impairment charge relating to an immaterial business disposal during 2024.
Previous report — wording carried elsewhere
(d)Represents a pre-tax gain for the change in fair value of shares of Common Stock of the Company that were issued in July 2024 following final court approval of a previously disclosed securities settlement.
Previous report — wording carried elsewhere
(e)Represents pre-tax gains associated with the dispositions of two businesses within the Company's Wellness at Home segment. See Note 4, Disposals, for additional discussion of such gains.
Previous report — wording carried elsewhere
The Company is fully cooperating with the investigation. Given the stage of the investigation, it is not possible to determine whether it will have a material adverse effect on the Company.