Healthcare services provider AdaptHealth Corp. (NASDAQ: AHCO) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 1.8% year on year to $820.3 million. The company expects the full year’s revenue to be around $3.22 billion, close to analysts’ estimates. Its GAAP profit of $0.16 per share was 30.4% below analysts’ consensus estimates.
Is now the time to buy AdaptHealth? Find out by accessing our full research report, it’s free for active Edge members.
AdaptHealth (AHCO) Q3 CY2025 Highlights:
- Revenue: $820.3 million vs analyst estimates of $800.1 million (1.8% year-on-year growth, 2.5% beat)
- EPS (GAAP): $0.16 vs analyst expectations of $0.23 (30.4% miss)
- Adjusted EBITDA: $170.1 million vs analyst estimates of $167.2 million (20.7% margin, 1.7% beat)
- The company reconfirmed its revenue guidance for the full year of $3.22 billion at the midpoint
- EBITDA guidance for the full year is $662 million at the midpoint, above analyst estimates of $654.8 million
- Operating Margin: 7.5%, in line with the same quarter last year
- Free Cash Flow Margin: 8.1%, down from 10.5% in the same quarter last year
- Market Capitalization: $1.20 billion
Company Overview
With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ: AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, AdaptHealth grew its sales at an incredible 30.6% compounded annual growth rate. Its growth beat the average healthcare company and shows its offerings resonate with customers.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. AdaptHealth’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 2.1% over the last two years was well below its five-year trend. 
This quarter, AdaptHealth reported modest year-on-year revenue growth of 1.8% but beat Wall Street’s estimates by 2.5%.
Looking ahead, sell-side analysts expect revenue to grow 3.6% over the next 12 months, similar to its two-year rate. Although this projection implies its newer products and services will fuel better top-line performance, it is still below average for the sector.
Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend.
Operating Margin
AdaptHealth’s operating margin has been trending up over the last 12 months and averaged 1.9% over the last five years. The company’s higher efficiency is a breath of fresh air, but its suboptimal cost structure means it still sports lousy profitability for a healthcare business.
Analyzing the trend in its profitability, AdaptHealth’s operating margin of 8% for the trailing 12 months may be around the same as five years ago, but it has increased by 19.4 percentage points over the last two years.
This quarter, AdaptHealth generated an operating margin profit margin of 7.5%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
AdaptHealth’s full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it’s at a critical moment in its life.
In Q3, AdaptHealth reported EPS of $0.16, up from $0.15 in the same quarter last year. Despite growing year on year, this print missed analysts’ estimates, but we care more about long-term EPS growth than short-term movements. Over the next 12 months, Wall Street expects AdaptHealth’s full-year EPS of $0.55 to grow 75.5%.
Key Takeaways from AdaptHealth’s Q3 Results
We enjoyed seeing AdaptHealth beat analysts’ revenue expectations this quarter. We were also glad its full-year EBITDA guidance slightly exceeded Wall Street’s estimates. On the other hand, its EPS missed. Overall, this was a mixed quarter. The stock traded up 2.5% to $9.33 immediately following the results.
Big picture, is AdaptHealth a buy here and now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
