In 2025, AdaptHealth closed the largest capitated contract in the industry's history, positioning itself for significant revenue growth. The company implemented a new operating model aimed at standardizing workflows and improving service delivery, centralizing order intake in Sleep Health and extending the approach to ventilators. Operational changes and AI pilots are expected to improve margins to around 20% by Q2 2026.
Cyborg Score Rationale
AdaptHealth's 24.8% annualized revenue growth over the last five years was excellent, beating the average healthcare company. However, recent results include a $127.99 million goodwill impairment and upfront spending to stand up the capitated deal, sharpening near-term focus on execution risk. The company is at an inflection point with significant upside potential if execution succeeds.
Top Insights
Management projects 6% to 8% revenue growth in 2026, with a 5%–6% contribution from the new capitated agreement and 2.5%–3.5% from the rest of the business
The company set patient census records for Sleep Health, Respiratory Health, and Wellness at Home, and a patient retention record for Diabetes Health
AdaptHealth received a favorable CMS outcome on competitive bidding, with its core sleep and respiratory products excluded from the next round, providing longer-term stability
Digital patient engagement expanded significantly, with myApp users more than doubling to 327,300 from the fourth quarter of 2024
Named Competitors
Home Medical Equipment Distribution — Competitors in sleep therapy, respiratory, and diabetes management equipment
Integrated Healthcare Delivery — Home healthcare and equipment service providers
DME Suppliers — Durable medical equipment and oxygen therapy providers
Recent Developments
(February 2026) Reported Q4 2025 results with goodwill impairment and provided 2026 revenue guidance of $3.44-3.51 billion
(January 2026) Acquired HME provider in Hawaii expanding operations to 48th state with $47.6 million deal
(February 2026) Secured favorable CMS competitive bidding outcome excluding core sleep and respiratory products from next round
(December 2025) Centralized order intake processes resulting in improved service setup times
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