Why AdaptHealth’s latest results matter for investors

AdaptHealth (AHCO) recently reported full year 2025 results that shifted from profit to a net loss, alongside a sizeable goodwill impairment and fresh 2026 revenue guidance. This gives investors several moving pieces to assess.

For 2025, AdaptHealth reported sales of US$3.24b compared with US$3.26b a year earlier, while net income swung to a loss of US$70.79m from net income of US$90.42m in the prior year.

The company also recorded an unaudited goodwill impairment of US$127.99m in the fourth quarter, a non cash charge that reduces reported earnings but does not directly affect cash on hand or cash flow in the period.

Alongside these results, management issued 2026 net revenue guidance of US$3.44b to US$3.51b. This provides the market with a sense of the expected scale for the business over the coming year.

AdaptHealth’s latest update comes after a weaker patch for the shares, with a 30 day share price return of 10.89% and a 1 year total shareholder return decline of 9.27%, while the 5 year total shareholder return decline of 75.16% shows the longer term drag. This hints that recent goodwill impairment charges and the move to a net loss are weighing on sentiment, even as new acquisitions and 2026 revenue guidance keep some investors focused on future scale.

If this earnings reset has you reassessing the sector, it could be a good moment to look at healthcare names exposed to artificial intelligence, starting with our screener of 32 healthcare AI stocks.

With the shares down over 9% in the past year and trading below some analyst estimates of value, you have to ask: is AdaptHealth now offering a discount entry point, or is the market already factoring in its growth prospects?

Most Popular Narrative: 44.2% Undervalued

At a last close of $9.49 against a most-followed fair value of $17.00, the AdaptHealth narrative is framing a sizeable gap the market has yet to close.

The convergence of telehealth, remote patient monitoring, and DME, accelerated by AdaptHealth's tech-enabled care model, will unlock untapped high-growth verticals as chronic disease management increasingly moves into the home, opening lucrative recurring revenue streams and supporting multi-year revenue and EBITDA growth well ahead of current Street models.

Curious what kind of revenue mix and margin profile could justify that gap to $17.00. The narrative leans on faster earnings growth and richer profitability than consensus. The full story sets out how those assumptions, plus a specific earnings multiple, tie together.

Result: Fair Value of $17.00 (UNDERVALUED)

However, you still need to weigh risks such as tighter CMS reimbursement and the execution challenge of large capitated contracts, which could pressure margins and cash generation.

Next Steps

If this mix of risks and optimism leaves you on the fence, it is worth looking at the numbers yourself and moving quickly to shape your own view. A good place to start is 3 key rewards.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.