AdaptHealth Corp. (NASDAQ:AHCO) Reports Mixed Q3 2025 Results, Beats on Revenue but Misses on EPS

AdaptHealth Corp. (NASDAQ:AHCO) has announced its financial results for the third quarter of 2025, delivering a performance that presented a mixed picture for investors. The company surpassed revenue expectations but fell short on profitability, a dynamic that appears to be reflected in the stock's initial market reaction.

Earnings and Revenue Versus Estimates

The home healthcare equipment provider reported quarterly revenue of $820.3 million, a 1.8% increase compared to the same period last year. This figure came in above analyst estimates, which had projected sales of $815.3 million. On the bottom line, however, the company reported a GAAP profit of $0.16 per share, falling short of the $0.23 per share analysts had anticipated.

The key financial results versus estimates are summarized below:

• Reported Revenue: $820.3 million

• Estimated Revenue: $815.3 million

• Beat by: $5.0 million

• Reported GAAP EPS: $0.16

• Estimated GAAP EPS: $0.23

• Miss by: $0.07 per share

Market Reaction and Price Action

The market's response to this mixed report has been cautiously positive in the immediate aftermath. The stock was up approximately 2.55% in pre-market trading following the announcement. This suggests that investors may be placing greater emphasis on the revenue beat and the company's operational progress, choosing to look past the earnings per share miss. This short-term gain contrasts with the stock's performance over the last two weeks, which saw a decline of over 4%.

Operational and Financial Highlights

Beyond the headline earnings figures, AdaptHealth's press release highlighted several positive operational and financial developments from the quarter. The company continued its strategic shift towards value-based care, signing a new capitated agreement to serve approximately 170,000 members. Progress in digital patient engagement was also notable, with registered users for its myApp growing to 271,000, more than double the number from the third quarter of 2024.

From a balance sheet perspective, the company made significant strides in debt reduction, paying down $50 million in the quarter. This brings the total debt paid down year-to-date to $225 million, improving the company's net leverage ratio to 2.68x, moving closer to its target of 2.50x. The company also reported strong cash flow from operations of $418.6 million for the first nine months of the year.

Forward Outlook and Analyst Expectations

Looking ahead, AdaptHealth maintained its full-year financial guidance for 2025. The company continues to expect:

• Net revenue between $3.18 billion and $3.26 billion
• Adjusted EBITDA between $642 million and $682 million
• Free cash flow between $170 million and $190 million

The midpoint of the revenue guidance, $3.22 billion, is slightly below the current analyst consensus estimate of $3.29 billion for the full year. For the upcoming fourth quarter, analysts are projecting revenue of $864.8 million, which the company will need to meet or exceed to satisfy market expectations for the remainder of the fiscal year.

Conclusion

AdaptHealth's third-quarter results paint a picture of a company executing on its operational strategy, evidenced by solid organic growth, strategic partnership advancements, and a strengthened balance sheet. While the miss on earnings per share is a notable blemish, the market's initial positive reaction indicates that investors are currently more focused on the top-line strength and the company's strategic direction. The maintained guidance provides a level of certainty, though it sets a high bar for the fourth quarter to align with broader analyst sales expectations.

For a detailed look at historical earnings and future analyst estimates for AdaptHealth, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author has no position in any stock mentioned. Investors should conduct their own research and consider their individual financial circumstances before making any investment decisions.