AdaptHealth crushes 2025 targets with $3.2B revenue and bold expansion plans

AdaptHealth Corp. (AHCO) has reported robust financial news for 2025, exceeding its own projections in multiple areas. The company also announced plans for continued growth, supported by a significant new contract and strategic acquisitions. Management now anticipates steady revenue increases over the next few years.

The company's 2025 net revenue reached $3.245 billion, surpassing earlier estimates. Free cash flow also came in well above expectations at $219.4 million, while adjusted EBITDA hit $616.7 million. These figures were bolstered by a $14.5 million legal settlement and $10 million in accelerated onboarding costs.

Operational performance improved significantly, with key metrics like days sales outstanding, patient setup times, and call answer rates reaching or nearing record levels. The company also saw its highest-ever patient census in sleep and respiratory health. However, diabetes segment revenue declined due to shifts in payer mix and stable patient numbers.

AdaptHealth expanded its reach in 2025 by acquiring a Hawaii-based business generating over $1 million in monthly revenue. This move added a new state to its coverage. Looking ahead, the company expects a temporary free cash flow deficit in the first quarter of 2026 due to contract-related expenses.

Management projects 6%-8% revenue growth by 2026, driven by a new capitated contract. The previously announced five-year, $1 billion exclusive deal with a major national health system—serving over 10 million members—is expected to bring in at least $200 million in new annual revenue once fully operational.

AdaptHealth's 2025 results underscore strong financial and operational performance, despite challenges in its diabetes segment. The company's expansion into Hawaii and the upcoming $1 billion contract position it for further growth. Management remains confident in achieving its revenue targets over the next few years.