AdaptHealth Reports $800.4 Million Revenue with Mixed Segment Performance in Q2 2025

AdaptHealth Corp. reported a net revenue of $800.4 million for the three months ended June 30, 2025, a slight decrease of 0.7% compared to $806.0 million in the same period last year. For the six months ended June 30, 2025, the company generated $1.58 billion in revenue, down 1.3% from $1.60 billion in the prior year. The decline in revenue was attributed to a combination of factors, including a decrease in net revenue from fixed monthly equipment reimbursements and a shift in payor mix, particularly in the Diabetes Health segment, which saw a 4.1% drop in revenue.

The company's operating income for the second quarter increased significantly to $79.3 million, up 52.3% from $52.0 million in the previous year. This improvement was driven by a gain of $32.2 million from the sale of two businesses within the Wellness at Home segment. However, net income attributable to AdaptHealth Corp. fell to $14.7 million, a 24.5% decrease from $19.4 million in the same quarter of 2024, primarily due to a substantial increase in income tax expense, which rose to $35.9 million from $7.2 million.

AdaptHealth's operational metrics showed a mixed performance across its segments. The Sleep Health segment reported a modest revenue increase of 0.9%, while the Respiratory Health segment saw a 5.6% rise in revenue, attributed to higher patient census for oxygen equipment. Conversely, the Diabetes Health segment experienced a revenue decline of 4.1%, and the Wellness at Home segment's revenue decreased by 7.2%, largely due to the aforementioned business dispositions.

In terms of strategic developments, AdaptHealth completed two acquisitions during the first half of 2025, totaling $18.6 million, which are expected to contribute to future growth. The company also disposed of two businesses, generating gross proceeds of $120.8 million. As of June 30, 2025, AdaptHealth serviced approximately 4.2 million patients annually across 630 locations in 47 states, reflecting its continued geographic expansion and market presence.

Looking ahead, AdaptHealth anticipates ongoing challenges related to inflation and market conditions, which may impact its operational costs and revenue growth. The company is focused on leveraging its purchasing power and technology to mitigate these pressures. Despite the recent declines in revenue and net income, AdaptHealth remains committed to its growth strategy and aims to enhance its service offerings in the healthcare-at-home sector.