AdaptHealth Corp.

Previous wording

The following discussion should be read in conjunction with AdaptHealth Corp.’s (“AdaptHealth” or the “Company”) consolidated financial statements and the accompanying notes included in this report. All amounts presented are in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), except as noted. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations. Factors that could cause such differences include, but are not limited to, those discussed in Item 1A, “Risk Factors”, in our 2025 Annual Report on Form 10-K filed with the SEC on February 24, 2026 and in our Quarterly Report on Form 10-Q for the three months ended March 31, 2026 filed with the SEC on May 5, 2026. Certain amounts that appear in this section may not sum due to rounding.

Current wording

The following discussion should be read in conjunction with AdaptHealth Corp.’s (“AdaptHealth” or the “Company”) consolidated financial statements and the accompanying notes included in this report. All amounts presented are in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), except as noted. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations. Factors that could cause such differences include, but are not limited to, those discussed in Item 1A, “Risk Factors”, in our 2025 Annual Report on Form 10-K filed with the SEC on February 24, 2026 and in our Quarterly Reports on Form 10-Q for the three months ended March 31, 2026 and June 30, 2026 filed with the SEC on May 5, 2026 and August 4, 2026, respectively. Certain amounts that appear in this section may not sum due to rounding.

Previous wording

The Company services beneficiaries of Medicare, Medicaid and commercial insurance payors. As of June 30, 2026, AdaptHealth serviced approximately 4.8 million patients annually in all 50 states through its network of approximately 670 locations in 48 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, 2026, AdaptHealth serviced approximately 4.8 million patients annually in all 50 states through its network of approximately 660 locations in 48 states. The Company’s principal executive offices are located at 555 East North Lane, Suite 5075, Conshohocken, Pennsylvania 19428.

Previous wording

In June 2026, the Company's board of directors approved the divestiture of the Company's Diabetes Health business. In July 2026, the Company entered into an agreement to sell the Diabetes Health business for $235.0 million in cash, subject to customary purchase price adjustments. The transaction is expected to close in the first quarter of 2027, subject to regulatory review under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions. The Diabetes Health business provides medical devices, including continuous glucose monitors and insulin pumps, and related services to patients for the treatment of diabetes. As a result of this transaction, the Diabetes Health business met the criteria to be reported as discontinued operations. Therefore, the Company has reported the results of the Diabetes Health business, including the results of operations, and related assets and liabilities, as discontinued operations for all periods presented herein. Accordingly, the Company no longer reports Diabetes Health as a reportable segment.

Current wording

On July 19, 2026, the Company entered into a definitive agreement to sell the Diabetes Health business for $235.0 million in cash, subject to customary purchase price adjustments. The transaction is expected to close in the first quarter of 2027, subject to certain regulatory approvals and other customary closing conditions, including the expiration of termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, which expired prior to September 30, 2026. The Diabetes Health business provides medical devices, including continuous glucose monitors and insulin pumps, and related services to patients for the treatment of diabetes. As a result of this transaction, the Diabetes Health business met the criteria to be reported as discontinued operations. Therefore, the Company has reported the results of the Diabetes Health business, including the results of operations, and related assets and liabilities, as discontinued operations for all periods presented herein. Accordingly, the Company no longer reports Diabetes Health as a reportable segment.

Previous wording

In accordance with U.S. GAAP, the financial position and results of operations of the Diabetes Health business are presented as assets and liabilities held for sale and discontinued operations and, as such, have been excluded from continuing operations for all periods presented. All discussion, unless otherwise noted, reflects the continuing operations of

Current wording

In accordance with U.S. GAAP, the financial position and results of operations of the Diabetes Health business are presented as assets and liabilities held for sale and discontinued operations and, as such, have been excluded from continuing operations for all periods presented. All discussion, unless otherwise noted, reflects the continuing operations of AdaptHealth. See Note 5, Held for Sale and Discontinued Operations, in the accompanying notes to the interim consolidated financial statements, for additional information regarding discontinued operations and assets and liabilities held for sale.

Previous wording

In June 2026, management approved a plan aimed at reducing costs, streamlining operations, and optimizing resources, which included headcount reductions and the wind down of an immaterial business. The total costs associated with this plan is expected to be approximately $7.0 million, and the Company expects to realize annual savings of approximately $26.8 million as a result of these actions. The actions regarding the headcount reductions were substantially complete as of June 30, 2026. The Company expects the actions related to the wind down of an immaterial business to be completed by the fourth quarter of 2027.

Current wording

In June 2026, management approved a plan aimed at reducing costs, streamlining operations, and optimizing resources, which included headcount reductions and the wind down of an immaterial business. The total costs associated with this plan were $6.1 million, and the Company expects to realize annual savings of approximately $26.8 million as a result of these actions. The actions regarding the headcount reductions were complete as of September 30, 2026.

Previous wording

Following detection, the Company promptly terminated the unauthorized access and implemented containment measures, including disabling the compromised user account, resetting affected credentials, and implementing additional security measures. The Company continues to review and enhance its safeguards, policies, procedures, training, and internal access controls. The Company is notifying affected individuals and others as required by law. The Company has also taken steps intended to mitigate the risk of dissemination of the exfiltrated data.

Current wording

Following detection, the Company promptly terminated the unauthorized access and implemented containment measures, including disabling the compromised user account, resetting affected credentials, and implementing additional security measures. The Company continues to review and enhance its safeguards, policies, procedures, training, and internal access controls. The Company has notified affected individuals and others as required by law. The Company has also taken steps intended to mitigate the risk of dissemination of the exfiltrated data.

Previous wording

Net revenue from AdaptHealth's Sleep Health segment increased by $51.8 million, or 15.5%, for the three months ended June 30, 2026 compared to the prior year period, primarily due to a capitated revenue contract that was entered into in the third quarter of 2025. The increase was also attributable to increased net sales revenue primarily from higher patient census from sales of PAP resupply products, as well as increased net revenue from fixed monthly equipment reimbursements from higher sleep rental products. Net revenue from AdaptHealth's Respiratory Health segment increased by $24.0 million, or 14.1%, for the three months ended June 30, 2026 compared to the prior year period, primarily due to a capitated revenue contract that was entered into in the third quarter of 2025, and to a lesser extent, higher fixed monthly equipment reimbursements from higher patient census for oxygen equipment products. Net revenue from AdaptHealth's Wellness at Home segment increased by $7.5 million, or 4.9% for the three months ended June 30, 2026 compared to the prior year period, primarily due to a capitated revenue contract that was entered into in the third quarter of 2025, and to a lesser extent, higher fixed monthly equipment reimbursements, partially offset by decreased net sales revenues from the disposition of certain incontinence and infusion businesses during 2025.

Current wording

Net revenue from AdaptHealth's Sleep Health segment increased by $39.0 million, or 11.0%, for the three months ended September 30, 2026 compared to the prior year period, primarily due to timing of the transition of patients related to a capitated revenue contract that was entered into in the third quarter of 2025. Net revenue from AdaptHealth's Respiratory Health segment increased by $13.8 million, or 7.8%, for the three months ended September 30, 2026 compared to the prior year period, primarily due to the capitated revenue contract discussed above. Net revenue from AdaptHealth's Wellness at Home segment increased by $20.4 million, or 14.5% for the three months ended September 30, 2026 compared to the prior year period, primarily due to the capitated revenue contract discussed above, partially offset by decreased net sales revenues from the disposition of an immaterial business during the first quarter of 2026.

Previous wording

For the three months ended June 30, 2026, net sales revenue comprised 48.4% of total net revenue, compared to 55.5% of total net revenue for the three months ended June 30, 2025. For the three months ended June 30, 2026, net revenue from fixed monthly equipment reimbursements comprised 37.7% of total net revenue, compared to 39.8% of total net revenue for the three months ended June 30, 2025. For the three months ended June 30, 2026, net revenue from capitated revenue arrangements comprised 13.9% of total net revenue, compared to 4.7% of total net revenue for the three months ended June 30, 2025.

Current wording

For the three months ended September 30, 2026, net sales revenue comprised 47.5% of total net revenue, compared to 53.8% of total net revenue for the three months ended September 30, 2025. For the three months ended September 30, 2026, net revenue from fixed monthly equipment reimbursements comprised 37.7% of total net revenue, compared to 41.5% of total net revenue for the three months ended September 30, 2025. For the three months ended September 30, 2026, net revenue from capitated revenue arrangements comprised 14.8% of total net revenue, compared to 4.7% of total net revenue for the three months ended September 30, 2025.

Previous wording

Cost of net revenue for the six months ended June 30, 2026 and 2025 was $1,220.3 million and $1,060.3 million, respectively, an increase of $160.1 million or 15.1%. Refer to the section below titled “Segment Results of Operations” for a discussion of the changes in cost of products and supplies, salaries, labor and benefits, rent and occupancy, and other operating expenses. Patient equipment depreciation increased by $39.0 million, primarily due to an increase in patient medical equipment acquired during 2026 to support capitated revenue arrangements.

Current wording

Cost of net revenue for the three months ended September 30, 2026 and 2025 was $630.8 million and $533.8 million, respectively, an increase of $97.0 million or 18.2%. Refer to the section below titled “Segment Results of Operations” for a discussion of the changes in cost of products and supplies, salaries, labor and benefits, rent and occupancy, and other operating expenses. Patient equipment depreciation increased by $22.3 million, primarily due to an increase in patient medical equipment acquired during 2026 to support capitated revenue arrangements.

Previous wording

General and Administrative Expenses. General and administrative expenses for the three months ended June 30, 2026 and 2025 were $96.1 million and $95.3 million respectively, an increase of $0.8 million or 0.9%. This increase is primarily due to higher software costs, restructuring expenses, insurance-related costs, salaries, labor and benefits, and equity-based compensation, partially offset by lower consulting costs, legal fees, and marketing fees.

Current wording

General and Administrative Expenses. General and administrative expenses for the three months ended September 30, 2026 and 2025 were $88.7 million and $88.1 million respectively, an increase of $0.5 million or 0.6%. This slight increase is primarily due to higher software costs, consulting costs, and insurance-related costs, offset by lower equity-based compensation, legal fees, and marketing expenses.

Previous wording

Depreciation and amortization, excluding patient equipment depreciation. Depreciation and amortization, excluding patient equipment depreciation, for the three months ended June 30, 2026 and 2025 was $7.9 million and $7.1 million, respectively, an increase of $0.9 million, primarily related to higher depreciation attributable to delivery vehicles.

Current wording

Depreciation and amortization, excluding patient equipment depreciation. Depreciation and amortization, excluding patient equipment depreciation, for the three months ended September 30, 2026 and 2025 was $9.3 million and $7.0 million, respectively, an increase of $2.3 million, primarily related to higher depreciation attributable to delivery vehicles and software.

Previous wording

Goodwill impairment. AdaptHealth performed a quantitative goodwill impairment test for each of its reporting units during the second quarter of 2026. The impairment test indicated that the estimated fair values of AdaptHealth's Respiratory Health and Wellness at Home reporting units were less than their respective carrying values, and as such, AdaptHealth recognized non-cash goodwill impairment charges totaling $144.2 million during the three months ended June 30, 2026. See Note 8, Goodwill and Identifiable Intangible Assets, for additional details.

Current wording

Goodwill impairment. AdaptHealth performed a quantitative goodwill impairment test for each of its reporting units during the third quarter of 2026. The impairment test indicated that the estimated fair values of AdaptHealth's Respiratory Health and Wellness at Home reporting units were less than their respective carrying values, and as such, AdaptHealth recognized non-cash goodwill impairment charges totaling $184.8 million during the three months ended September 30, 2026. See Note 8, Goodwill and Identifiable Intangible Assets, for additional details.

Previous wording

Interest expense, net. Interest expense, net for the three months ended June 30, 2026 and 2025 was $26.2 million and $27.5 million, respectively, a decrease of $1.3 million. Interest expense related to AdaptHealth's debt decreased by $1.7 million in 2026 compared to 2025 as a result of lower average outstanding borrowings in 2026 compared to 2025, and to a lesser extent, lower interest rates.

Current wording

Interest expense, net. Interest expense, net for the three months ended September 30, 2026 and 2025 was $28.6 million and $25.4 million, respectively, an increase of $3.2 million. Interest expense related to AdaptHealth's debt increased by $0.1 million in 2026 compared to 2025 as a result of higher average outstanding borrowings in 2026 compared to 2025, partially offset by lower interest rates. The increase was also due to the impact from AdaptHealth's interest rate swap agreements, which reduced interest expense by $0.9 million in 2025.

Previous wording

Income Tax (Benefit) Expense. Income tax benefit and income tax expense for the three months ended June 30, 2026 and 2025 was $21.2 million and $32.8 million, respectively. Income tax expense on ordinary income decreased due to lower pre-tax income. For the three months ended June 30, 2026, AdaptHealth recognized a $15.5 million discrete income tax benefit, and corresponding increase to net deferred tax assets, related to non-cash goodwill impairment charges totaling $144.2 million. Additionally, for the three months ended June 30, 2025, AdaptHealth recognized a $27.4 million discrete income tax expense related to the dispositions of two businesses within the Wellness at Home segment.

Current wording

Income Tax (Benefit) Expense. Income tax benefit and income tax expense for the three months ended September 30, 2026 and 2025 was $17.5 million and $6.5 million, respectively. Income tax expense on ordinary income decreased due to lower pre-tax income. For the three months ended September 30, 2026, AdaptHealth recognized a $17.4 million discrete income tax benefit, and corresponding increase to net deferred tax assets, related to non-cash goodwill impairment charges totaling $184.8 million. Additionally, for the three months ended September 30, 2025, AdaptHealth recognized a $27.4 million discrete income tax expense related to the dispositions of two businesses within the Wellness at Home segment.

Previous wording

The following table summarizes AdaptHealth’s results of operations for the six months ended June 30, 2026 and 2025:

Current wording

The following table summarizes AdaptHealth’s results of operations for the nine months ended September 30, 2026 and 2025:

Previous wording

Net revenue from AdaptHealth's Sleep Health segment increased by $93.9 million, or 14.4%, for thesix months ended June 30, 2026 compared to the prior year period, primarily due to a capitated revenue contract that was entered into in the third quarter of 2025. The increase was also attributable to increased net sales revenue primarily from higher patient census from sales of PAP resupply products, as well as increased net revenue from fixed monthly equipment reimbursements from higher sleep rental products. Net revenue from AdaptHealth's Respiratory Health segment increased by $36.6 million, or 10.9%, for the six months ended June 30, 2026 compared to the prior year period, primarily due to a capitated revenue contract that was entered into in the third quarter of 2025, and to a lesser extent, higher fixed monthly equipment reimbursements from higher patient census for oxygen equipment products. Net revenue from AdaptHealth's Wellness at Home segment decreased by $12.0 million, or 3.8% for the six months ended June 30, 2026 compared to the prior year period, primarily due to decreased net sales revenues from the disposition of certain incontinence and infusion businesses during 2025, partially offset by an increase in net revenues from a capitated revenue contract that was entered into in the third quarter of 2025, and to a lesser extent, higher fixed monthly equipment reimbursements.

Current wording

Net revenue from AdaptHealth's Sleep Health segment increased by $132.9 million, or 13.2%, for thenine months ended September 30, 2026 compared to the prior year period, primarily due to a capitated revenue contract that was entered into in the third quarter of 2025. The increase was also attributable to increased net revenue from fixed monthly equipment reimbursements from higher sleep rental products, as well as increased net sales revenue primarily from higher patient census from sales of PAP resupply products. Net revenue from AdaptHealth's Respiratory Health segment increased by $50.4 million, or 9.8%, for the nine months ended September 30, 2026 compared to the prior year period, primarily due to a capitated revenue contract that was entered into in the third quarter of 2025, and to a lesser extent, higher fixed monthly equipment reimbursements from higher patient census for oxygen equipment products. Net revenue from AdaptHealth's Wellness at Home segment increased by $8.5 million, or 1.9% for the nine months ended September 30, 2026 compared to the prior year period, primarily due to an increase in net revenues from a capitated revenue contract that was entered into in the third quarter of 2025, and to a lesser extent, higher fixed monthly equipment reimbursements, partially offset by decreased net sales revenues from the disposition of certain incontinence and infusion businesses during 2025.

Previous wording

For the six months ended June 30, 2026, net sales revenue comprised 48.9% of total net revenue, compared to 56.0% of total net revenue for the six months ended June 30, 2025. For the six months ended June 30, 2026, net revenue from fixed monthly equipment reimbursements comprised 38.6% of total net revenue, compared to 39.1% of total net revenue for the six months ended June 30, 2025. For the six months ended June 30, 2026, net revenue from capitated revenue arrangements comprised 12.5% of total net revenue, compared to 4.9% of total net revenue for the six months ended June 30, 2025.

Current wording

For the nine months ended September 30, 2026, net sales revenue comprised 48.4% of total net revenue, compared to 55.3% of total net revenue for the nine months ended September 30, 2025. For the nine months ended September 30, 2026, net revenue from fixed monthly equipment reimbursements comprised 38.3% of total net revenue, compared to 39.9% of total net revenue for the nine months ended September 30, 2025. For the nine months ended September 30, 2026, net revenue from capitated revenue arrangements comprised 13.3% of total net revenue, compared to 4.8% of total net revenue for the nine months ended September 30, 2025.

Previous wording

The following table summarizes cost of net revenue for the six months ended June 30, 2026 and 2025:

Current wording

The following table summarizes cost of net revenue for the nine months ended September 30, 2026 and 2025:

Previous wording

Cost of net revenue for the three months ended June 30, 2026 and 2025 was $636.1 million and $521.3 million, respectively, an increase of $114.8 million or 22.0%. Refer to the section below titled “Segment Results of Operations” for a discussion of the changes in cost of products and supplies, salaries, labor and benefits, rent and occupancy, and other operating expenses. Patient equipment depreci ation increased by $26.9 million, primarily due to an increase in patient medical equipment acquired during 2026 to support capitated revenue arrangements.

Current wording

Cost of net revenue for the nine months ended September 30, 2026 and 2025 was $1,851.2 million and $1,594.1 million, respectively, an increase of $257.1 million or 16.1%. Refer to the section below titled “Segment Results of Operations” for a discussion of the changes in cost of products and supplies, salaries, labor and benefits, rent and occupancy, and other operating expenses. Patient equipment depreciation increased by $61.3 million, primarily due to an increase in patient medical equipment acquired during 2026 to support capitated revenue arrangements.

Previous wording

General and Admi nistrative Expenses. General and administrative expenses for the six months ended June 30, 2026 and 2025 were $190.0 million and $180.2 million, respectively, an increase of $9.8 million or 5.5%. This increase is primarily due to higher software costs, salaries, labor and benefits, insurance-related costs, restructuring expenses, and equity-based compensation, partially offset by lower consulting costs, legal fees, and marketing fees.

Current wording

This increase is primarily due to higher software costs, salaries, labor and benefits, insurance-related costs, and restructuring expenses, partially offset by lower consulting costs, marketing expenses, legal fees, and equity-based compensation.

Previous wording

Depreciation and amortization, excluding patient equipment depreciation. Depreciation and amortization, excluding patient equipment depreciation, for the six months ended June 30, 2026 and 2025 was $15.1 million and $14.3 million, respectively, an increase of $0.8 million, primarily related to higher depreciation attributable to delivery vehicles.

Current wording

Depreciation and amortization, excluding patient equipment depreciation. Depreciation and amortization, excluding patient equipment depreciation, for the nine months ended September 30, 2026 and 2025 was $24.4 million and $21.3 million, respectively, an increase of $3.1 million, primarily related to higher depreciation attributable to delivery vehicles.

Previous wording

Goodwill impairment. AdaptHealth performed a quantitative goodwill impairment test for each of its reporting units during the second quarter of 2026. The impairment test indicated that the estimated fair values of AdaptHealth's Respiratory Health and Wellness at Home reporting units were less than their respective carrying values, and as such, AdaptHealth recognized non-cash goodwill impairment charges totaling $144.2 million during thesix months ended June 30, 2026. See Note 8, Goodwill and Identifiable Intangible Assets, for additional details.

Current wording

Goodwill impairment. AdaptHealth performed quantitative goodwill impairment tests for each of its reporting units during the second and third quarters of 2026. The impairment tests indicated that the estimated fair values of AdaptHealth's Respiratory Health and Wellness at Home reporting units were less than their respective carrying values, and as such, AdaptHealth recognized non-cash goodwill impairment charges totaling $329.0 million during the nine months ended September 30, 2026. See Note 8, Goodwill and Identifiable Intangible Assets, for additional details.

Previous wording

Loss on extinguishment of debt. The loss on extinguishment of debt for thesix months ended June 30, 2026 relates to third-party fees and the write-off of unamortized deferred financing costs in connection with the refinancing of the Company's credit agreement. See Note 12, Debt, for additional discussion of the refinancing.

Current wording

Loss on extinguishment of debt. The loss on extinguishment of debt for the nine months ended September 30, 2026 relates to third-party fees and the write-off of unamortized deferred financing costs in connection with the refinancing of the Company's credit agreement. See Note 12, Debt, for additional discussion of the refinancing.

Previous wording

Gain on sale of businesses. The gain for thethree months ended June 30, 2026 relates to the receipt of a contingent payment from the disposition of a business that occurred in 2025. The gain for the three months ended June 30, 2025 relates to the disposition of two businesses within AdaptHealth's Wellness at Home segment.

Current wording

Gain on sale of businesses. The gain for the nine months ended September 30, 2026 relates to the receipt of a contingent payment from the disposition of a business that occurred in 2025. The gain for the nine months ended September 30, 2025 relates to the disposition of two businesses within AdaptHealth's Wellness at Home segment.

Previous wording

Interest expense, net. Interest expense, net for the six months ended June 30, 2026 and 2025 was $51.8 million and $55.9 million, respectively, a decrease of $4.1 million. Interest expense related to AdaptHealth's debt decreased by $5.1 million in 2026 compared to 2025 as a result of lower average outstanding borrowings in 2026 compared to 2025, and to a lesser extent, lower interest rates. This decrease was partially offset by the impact from AdaptHealth's interest rate swap agreements, which reduced interest expense by $0.1 million and $1.8 million in 2026 and 2025, respectively.

Current wording

Interest expense, net. Interest expense, net for the nine months ended September 30, 2026 and 2025 was $80.4 million and $81.3 million, respectively, a decrease of $0.9 million. Interest expense related to AdaptHealth's debt decreased by $4.9 million in 2026 compared to 2025 primarily as a result of lower average interest rates. This decrease was partially offset by the impact from AdaptHealth's interest rate swap agreements, which reduced interest expense by $0.1 million and $2.7 million in 2026 and 2025, respectively.

Previous wording

Income Tax (Benefit) Expense. Income tax benefit and income tax expense for the six months ended June 30, 2026 and 2025 was $28.4 million and $30.3 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. For the six months ended June 30, 2026, AdaptHealth recognized a $15.5 million discrete income tax benefit, and corresponding increase to net deferred tax assets, related to non-cash goodwill impairment charges totaling $144.2 million. Additionally, for the six months ended June 30, 2025, AdaptHealth recognized a $27.4 million discrete income tax expense related to the dispositions of two businesses within the Wellness at Home segment.

Current wording

Income Tax (Benefit) Expense. Income tax benefit and income tax expense for the nine months ended September 30, 2026 and 2025 was $45.9 million and $36.8 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. For the nine months ended September 30, 2026, AdaptHealth recognized a $32.8 million discrete income tax benefit, and corresponding increase to net deferred tax assets, related to non-cash goodwill impairment charges totaling $329.0 million. Additionally, for the nine months ended September 30, 2025, AdaptHealth recognized a $27.4 million discrete income tax expense related to the dispositions of two businesses within the Wellness at Home segment.

Previous wording

AdaptHealth defines Adjusted EBITDA as EBITDA (as defined above), plus equity-based compensation expense, litigation settlement expense, gain on sale of businesses, restructuring expenses, loss on extinguishment of debt, goodwill impairment, and other non-recurring items of expense or income.

Current wording

AdaptHealth defines Adjusted EBITDA as EBITDA (as defined above), plus equity-based compensation expense, goodwill impairment, gain on deconsolidation of subsidiary, gain on sale of businesses, restructuring expenses, loss on extinguishment of debt, litigation settlement expense, and certain other non-recurring items of expense or income.

Previous wording

(e)Represents non-cash goodwill impairment charges as a result of the fair values of the Company's Respiratory Health and Wellness at Home reporting units being less than their respective carrying values. See Note 8, Goodwill and Identifiable Intangible Assets, for additional information.

Current wording

(b)Represents non-cash goodwill impairment charges as a result of the fair values of the Company's Respiratory Health and Wellness at Home reporting units being less than their respective carrying values. See Note 8, Goodwill and Identifiable Intangible Assets, for additional information.

Previous wording

The following unaudited table presents the reconciliation of net loss from continuing operations to EBITDA and Adjusted EBITDA, and the reconciliation of net loss from continuing operations as a percentage of net revenue to Adjusted EBITDA Margin, for thesix months ended June 30, 2026 and 2025:

Current wording

The following unaudited table presents the reconciliation of net loss from continuing operations to EBITDA and Adjusted EBITDA, and the reconciliation of net loss from continuing operations as a percentage of net revenue to Adjusted EBITDA Margin, for thenine months ended September 30, 2026 and 2025:

Previous wording

(f)Represents non-cash goodwill impairment charges as a result of the fair values of the Company's Respiratory Health and Wellness at Home reporting units being less than their respective carrying values. See Note 8, Goodwill and Identifiable Intangible Assets, for additional information.

Current wording

(b)Represents non-cash goodwill impairment charges as a result of the fair values of the Company's Respiratory Health and Wellness at Home reporting units being less than their respective carrying values. See Note 8, Goodwill and Identifiable Intangible Assets, for additional information.

Previous wording

(b)Represents pre-tax gains associated with the dispositions of two businesses within the Company's Wellness at Home segment.

Current wording

(d)Represents pre-tax gains associated with the dispositions of two businesses within the Company's Wellness at Home segment.

Previous wording

(c)Represents expenses related to a cost savings plan that was implemented in June 2026. See Note 19, Restructuring Charges, for additional information.

Current wording

(e)Represents expenses related to a cost savings plan that was implemented in June 2026. See Note 19, Restructuring Charges, for additional information.

Previous wording

(d)Represents third-party fees and the write-off of unamortized deferred financing costs in connection with the refinancing of the Company's credit agreement. See Note 12, Debt, for additional discussion of the refinancing.

Current wording

(f)Represents third-party fees and the write-off of unamortized deferred financing costs in connection with the refinancing of the Company's credit agreement. See Note 12, Debt, for additional discussion of the refinancing.

Previous wording

(b)Represents an estimated expense to settle a shareholder derivative complaint.

Current wording

(g)Represents an estimated expense to settle a shareholder derivative complaint.

Previous wording

(f)The 2026 period consists of $2.7 million of consulting expenses associated with asset dispositions, $1.4 million of transaction costs associated with acquisitions, and $1.5 million of other non-recurring expenses. 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.

Current wording

(h)The 2026 period consists of $9.3 million of consulting expenses associated with asset dispositions, $2.1 million of transaction costs associated with acquisitions, $1.6 million of severance related to the Company's former Chief Financial Officer, and $2.1 million of other net non-recurring expenses. 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,

Previous wording

(a) See Note 7, Segment Information, in the accompanying notes to the interim consolidated financial statements for the three and six months ended June 30, 2026 and 2025 for a reconciliation of consolidated Adjusted EBITDA to consolidated (loss) income from continuing operations before income taxes.

Current wording

(a) See Note 7, Segment Information, in the accompanying notes to the interim consolidated financial statements for the three and nine months ended September 30, 2026 and 2025 for a reconciliation of consolidated Adjusted EBITDA to consolidated (loss) income from continuing operations before income taxes.

Previous wording

Adjusted EBITDA from the Sleep Health segment decreased by $3.4 million or 4.6%, for the three months ended June 30, 2026 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 due to an increase in sales revenue and general inflationary cost increases. The increase in labor cost was primarily due to increased headcount, including variable labor to support a capitated revenue agreement entered into in the third quarter of 2025, as well as increases from merit and benefits costs, and inflationary increases. The increase in other operating expenses was primarily due to higher distribution-related expenses, facilities costs and marketing and advertising costs. The increase in other segment items was due to an increase in general and administrative expenses that were allocated to the segment.

Current wording

Adjusted EBITDA from the Sleep Health segment decreased by $6.3 million or 8.2%, for the three months ended September 30, 2026 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 due to an increase in capitated revenue as well as the increased prices from a key supplier. The increase in labor cost was primarily due to increased headcount, including variable labor to support a capitated revenue agreement entered into in the third quarter of 2025, as well as increases from merit and benefits costs, and inflationary increases. The increase in other operating expenses was primarily due to higher distribution-related expenses and facilities costs. The increase in other segment items was due to an increase in general and administrative expenses that were allocated to the segment.

Previous wording

Adjusted EBITDA from the Respiratory Health segment increased by $7.8 million or 17.2%, for the three months ended June 30, 2026 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 and general inflationary cost increases. The increase in labor cost was primarily due to increased headcount, including variable labor to support a capitated revenue agreement entered into in the third quarter of 2025, as well as increases from merit and benefits costs, and inflationary increases. The increase in other operating expenses was primarily due to higher distribution-related expenses, facilities costs and marketing and advertising costs.

Current wording

Adjusted EBITDA from the Respiratory Health segment increased by $5.0 million or 9.7%, for the three months ended September 30, 2026 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 and general inflationary cost increases. The increase in other operating expenses was primarily due to higher distribution-related expenses and facilities costs.

Previous wording

Adjusted EBITDA from the Wellness at Home segment decreased by $18.3 million or 60.5%, for the six months ended June 30, 2026 compared to the prior year period, due to lower net revenue (as discussed above), and to a lesser extent, higher costs and expenses. The decrease in the cost of products and supplies was primarily due to the disposition of certain incontinence and infusion businesses during 2025, partially offset by an increase in costs from a capitated revenue agreement entered into in the third quarter of 2025. The increase in labor cost was primarily due to increased headcount to support a capitated revenue agreement entered into in the third quarter of 2025, and to a lesser extent, increased merits and benefits costs, partially offset by a reduction in labor cost due to the disposition of certain incontinence and infusion businesses during 2025. The increase in other operating expenses was primarily due to higher distribution-related expenses, facilities costs and marketing and advertising 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 Wellness at Home segment decreased by $2.8 million or 16.0%, for the three months ended September 30, 2026 compared to the prior year period, due to higher costs and expenses, partially offset by higher net revenue (as discussed above). The increase in the cost of products and supplies was primarily due to an increase in costs from a capitated revenue contract entered into in the third quarter of 2025. The increase in labor cost was primarily due to increased headcount to support a capitated revenue agreement entered into in the third quarter of 2025, and to a lesser extent, increased merits and benefits costs. The increase in other operating expenses was primarily due to higher distribution-related expenses and facilities costs.

Previous wording

The following table summarizes the performance of the Company’s reportable segments for thesix months ended June 30, 2026 and 2025:

Current wording

The following table summarizes the performance of the Company’s reportable segments for thenine months ended September 30, 2026 and 2025: