AdaptHealth Reports $777.9 Million Revenue with Increased Net Loss in Q1 2025

AdaptHealth Corp. reported a net revenue of $777.9 million for the first quarter of 2025, a decrease of 1.8% from $792.5 million in the same period last year. The decline was attributed to a drop in revenue from its Diabetes Health segment, which fell by 8.0% due to shifts in patient sourcing and lower sales of insulin pumps. The Sleep Health segment also saw a decrease of 2.8%, while the Respiratory Health segment experienced a modest increase of 3.3%. Overall, the company recorded a net loss of $7.2 million, compared to a loss of $2.1 million in the prior year, reflecting a significant increase in operational costs.

Total costs and expenses rose to $754.7 million, up from $742.0 million in the previous year, primarily driven by a 3.5% increase in the cost of net revenue, which reached $657.4 million. This increase was largely due to inflationary pressures affecting product costs and labor expenses. General and administrative expenses decreased slightly to $86.9 million from $89.0 million, reflecting cost management efforts. The company did not incur any goodwill impairment charges in the current quarter, contrasting with a $6.5 million charge in the prior year.

AdaptHealth's operational metrics showed a patient count of approximately 4.2 million serviced annually across 660 locations in 47 states. The company continues to focus on enhancing its service offerings in its four reportable segments: Sleep Health, Respiratory Health, Diabetes Health, and Wellness at Home. The company has also been actively managing its inventory and operational efficiencies, with plans to implement a perpetual inventory system to better track medical equipment and supplies.

Looking ahead, AdaptHealth anticipates continued challenges from inflation and market dynamics but remains committed to leveraging its purchasing power and technology to mitigate these impacts. The company has made strategic decisions to enhance its operational framework, including a recent acquisition and the ongoing development of its digital platforms. AdaptHealth's management believes that its current cash position of approximately $53.7 million, along with expected operating cash flows, will support its operational and growth strategies in the near term.