Accendra Health Inc (NYSE:ACH) reported financial results for the fourth quarter of 2025, delivering a mixed performance against Wall Street expectations. The company, which recently completed the sale of its Products & Healthcare Services business, posted revenue and adjusted earnings that fell short of analyst forecasts, contributing to a notable decline in its share price in after-hours trading.
Earnings Snapshot: A Miss on Key Metrics
For the quarter ended December 31, 2025, Accendra Health reported revenue from continuing operations of $709.0 million. This represented a modest 2.0% increase over the prior-year quarter but came in below the analyst consensus estimate of approximately $721.9 million.
On the profitability front, the company reported an adjusted net income from continuing operations of $16.7 million, or $0.21 per share. This non-GAAP earnings figure also missed the mark, falling short of the $0.223 per share analysts had anticipated.
The key quarterly results versus estimates are summarized below:
- Reported Revenue: $709.0 million
- Vs. Estimate: ~$721.9 million
- Variance: -1.8%
- Reported Adj. EPS: $0.21
- Vs. Estimate: $0.223
- Variance: -5.8%
Market Reaction and Recent Performance
The market's immediate reaction to the earnings miss was negative. Following the release, ACH shares fell approximately 6% in after-hours trading. This pullback contrasts with the stock's recent positive momentum, which had seen gains of around 15.9% over the past month leading into the report.
The sharp after-hours decline suggests investors were disappointed by the company's inability to meet quarterly expectations during a period of significant corporate transition.
Strategic Shift and Full-Year Context
The earnings release underscored a major transformation for Accendra Health. The company finalized the sale of its Products & Healthcare Services (P&HS) business to Owens & Minor on December 31, 2025. This completes its strategic shift to focus solely on its "Patient Direct" segment, which includes the Apria and Byram home healthcare supply and equipment businesses.
For the full year 2025, the continuing operations (now representing the standalone Accendra Health) showed stability:
- Net revenue grew 3% to $2.76 billion.
- Adjusted EBITDA was $374.8 million, slightly up from $370.5 million in 2024.
- The company generated $154 million in operating cash flow.
President and CEO Edward Pesicka framed the quarter as the start of a "next chapter," emphasizing the goal of creating a "leaner, more nimble company" positioned for sustainable growth.
2026 Outlook vs. Analyst Expectations
Looking ahead, management provided financial guidance for 2026, which offers a point of comparison with existing Wall Street forecasts.
The company's outlook for its continuing operations is as follows:
- Revenue: Between $2.55 billion and $2.65 billion.
- Adjusted EBITDA: Between $335 million and $355 million.
- Free Cash Flow: Between $90 million and $110 million.
Notably, the midpoint of the revenue guidance range ($2.6 billion) is below the current analyst consensus estimate of $2.63 billion for 2026 sales. The provided EBITDA range also suggests potential pressure on profitability margins in the coming year as the company operates independently.
Conclusion
Accendra Health's fourth-quarter results highlight the challenges of navigating a major corporate divestiture while meeting quarterly financial targets. The misses on both revenue and earnings per share, coupled with a 2026 revenue outlook that trails analyst expectations, have dampened investor enthusiasm, as evidenced by the significant after-hours sell-off. The coming quarters will be critical as the market assesses whether the newly streamlined Accendra Health can deliver on its promise of more consistent cash flows and long-term value creation in the home healthcare market.
For a detailed look at historical earnings and future analyst estimates for Accendra Health, visit the earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
