AdaptHealth crushes 2025 targets and raises 2026 growth forecast

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AdaptHealth crushes 2025 targets and raises 2026 growth forecast

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Christine Miller
Christine Miller
2 Min.

AdaptHealth crushes 2025 targets and raises 2026 growth forecast

AdaptHealth Corp. (AHCO) has reported robust financial news for 2025, surpassing its own revenue and cash flow targets. The company also raised its growth forecast for 2026, citing a new capitated contract and faster expansion than expected. These updates follow a year of operational improvements, including AI-driven efficiency gains and strategic acquisitions.

In 2025, AdaptHealth generated $3.25 billion in net revenue, exceeding its guidance midpoints. Adjusted EBITDA reached $616.7 million, while free cash flow hit $219.4 million—both figures surpassed earlier projections. The company also benefited from a $14.5 million legal settlement and $10 million in accelerated onboarding costs during the year.

The diabetes segment saw a revenue decline in 2025 due to shifts in payer mix and a stable patient census. However, other areas thrived, with sleep and respiratory health achieving record patient numbers. Management attributed this growth to operational efficiency, including AI pilots that cut order processing and patient call times.

Looking ahead, AdaptHealth now expects 2026 revenue to grow by 6%-8%, up from previous estimates. This optimism stems from a new capitated contract and a quicker-than-expected ramp-up. The recent Hawaii acquisition also expands the company's reach, adding new state coverage and supporting West Coast contract transitions.

AdaptHealth's 2025 performance highlights strong financial health and operational progress. The company's revised 2026 outlook reflects confidence in its growth strategy, backed by new contracts and technology-driven improvements. Further details on workforce changes or current employee numbers remain undisclosed.