AdaptHealth Corp. (AHCO) Stock

AdaptHealth Corp. (AHCO) is a Healthcare stock trading at $5.47 (as of 2026-08-25), with a market capitalization of $744.22M. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

AdaptHealth Corp. and its subsidiaries supply home medical equipment, medical supplies, and related home services in the United States, including sleep therapy equipment and services, diabetes devices and supplies, post-acute home medical equipment, and chronic therapies such as oxygen. The company serves Medicare, Medicaid, and commercial insurance beneficiaries.

Understand AdaptHealth Corp.: how it makes money

AdaptHealth rents and sells home medical equipment (CPAP machines, insulin pumps, oxygen concentrators) to insurance-covered patients in the U.S. The mix splits roughly two-thirds device sales from rental and a small capitated stream, with commercial and Medicare insurers driving most payment.

The P&L breaks even only when recurring capitated plus rental revenue exceeds the fixed labor and facilities base left behind by the legacy fee-for-service model; that crossover has not arrived at a 14% gross margin.

Revenue by segment (latest quarter)
Sales	$0.5B
Rental	$0.3B
Capitated	$0.0B

Business quality (Weak): Margins are deeply negative (operating margin 19% below zero) and leverage is rising, so the business grades Weak until the capitated transition fully lands.

Bull case

Capitated model hits scale: The capitated contract is fully operational across eight states and 35 new locations, and management expects additional partnership announcements soon, de-risking the shift from one-time device billing to per-patient monthly revenue.
EBITDA inflection in sight: Management guided second-quarter EBITDA above $160 million, implying the labor transition is clearing and the profit pool is beginning to re-expand after the capitated restructure.

Bear case

Labor costs still dragging: Transition-related labor expense totaled $12 million, including $8 million of variable labor, keeping the operating margin at negative 19% and the path to sustained profitability uncertain.
Leverage creeping higher: Net leverage rose to 3.0 times from 2.75 times in the prior quarter while free cash flow remains modest due to elevated CapEx, leaving little cushion if the transition slips another quarter.
Tech payoff is 2027: Management stated technology financial benefits are expected mainly in 2027 rather than immediately, so the AI-driven efficiency gains (25% touchless scheduling today) will not yet reduce the P&L drag this fiscal year.

Valuation — source: SEC EDGAR (first-party)
Price	$5.47
Market Cap	$744.22M
EV / EBITDA	7.5
Price / Book	0.54
Price / Sales	0.23
FCF Yield	4.9%
DCF Value (model)	$28.60
DCF Upside vs Price	422.9%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$3.24B
Net Margin	-2.2%
Revenue Growth (YoY)	-0.5%
EPS Growth (YoY)	-183.9%
FCF Growth (YoY)	-7.0%

Financial Health — source: SEC EDGAR
Altman Z-Score	0.78 (distress)
Piotroski F-Score	4/9 (moderate)

Valuation vs Sector & Industry
Sector P/E (Healthcare)	21.9
Industry P/E (Healthcare Services)	25.4

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	OEP CAPITAL ADVISORS, L.P. ($194.12M)
Institutional Holders Tracked	10
Congressional Trades (recent)	8

Company
Sector	Healthcare
Industry	Healthcare Services
CEO	Suzanne Foster
Employees	10,500
Country	US
IPO Date	2018-05-31

Related Companies (Healthcare Services; 8 comparable companies)

Data as of 2026-08-25.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.