AdaptHealth Corp. (NASDAQ: AHCO)

AdaptHealth Corp. is a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services. The company operates under four reportable segments aligned with its product categories: Sleep Health, Respiratory Health, Diabetes Health, and Wellness at Home. As of December 31, 2025, AdaptHealth serviced approximately 4.3 million patients annually across all 50 states through a network of about 640 locations in 48 states.

AdaptHealth generates revenue through the sale and rental of home medical equipment and medical supplies, as well as related services. For resupply and one-time sale products, which include consumables such as PAP masks, continuous glucose monitors, diabetes management supplies, wound care products, and incontinence supplies, the company receives a single payment upon sale, accounting for approximately 63% of net revenue for the year ended December 31, 2025. AdaptHealth also receives fixed monthly payments for certain durable medical equipment like oxygen and home mechanical ventilation equipment, PAP equipment, and hospital beds, representing approximately 33% of net revenue. Additionally, the company earns per member per month fees under at-risk capitation arrangements with third-party payors, contributing approximately 4.0% of net revenue for the same period.

The company operates through the following segments: Sleep Health, Respiratory Health, Diabetes Health, and Wellness at Home.

• Sleep Health: This segment provides sleep therapy equipment, supplies, and related services including continuous positive airway pressure and BiLevel devices to individuals for the treatment of obstructive sleep apnea. The segment focuses on delivering products such as CPAP and BiPAP machines, masks, and associated accessories directly to patients’ homes. Services include setup, patient education, and ongoing support to ensure therapy adherence and effectiveness.

• Respiratory Health: This segment provides oxygen and home mechanical ventilation equipment and supplies, along with related chronic therapy services to individuals for the treatment of respiratory diseases such as chronic obstructive pulmonary disease and chronic respiratory failure. The segment offers stationary and portable oxygen concentrators, ventilators, and associated accessories. It also includes respiratory therapy services such as patient assessment, equipment training, and ongoing clinical support to manage long-term respiratory conditions.

• Diabetes Health: This segment provides medical devices including continuous glucose monitors and insulin pumps, along with related services to patients for the treatment of diabetes. The segment supplies devices such as Dexcom G6, Dexcom G7, Medtronic MiniMed, and Tandem t:slim insulin pumps, as well as associated supplies like sensors, transmitters, and infusion sets. Services include device setup, patient training, data monitoring, and ongoing clinical support to help patients manage their glucose levels effectively.

• Wellness at Home: This segment provides home medical equipment and services to patients in their homes, particularly those discharged from acute care or other facilities adjusting to new lifestyles or managing complex disease states. The segment offers essential medical supplies and durable medical equipment such as hospital beds, wheelchairs, walkers, commodes, and wound care products. Services include delivery, setup, patient education, and coordination with healthcare providers to support safe transitions to home care and ongoing disease management.

AdaptHealth competes in a fragmented and highly competitive home medical equipment market against large national providers such as Accendra Health, Lincare Holdings Inc., Rotech Healthcare Inc., Cardinal Health Inc., and Quipt Home Medical Corp., as well as regional and product-specific competitors. The company believes it holds a competitive advantage through its integrated technology platform, which enables automated workflows, e-prescribing capabilities, and seamless coordination between patients, physicians, and payors. Its focus on quality patient care, service responsiveness, and strong referral source relationships further strengthens its market position.

AdaptHealth serves beneficiaries of Medicare, Medicaid, and commercial insurance payors, acquiring patients primarily through referrals from acute care hospitals, sleep laboratories, pulmonologist and endocrinologist offices, skilled nursing facilities, hospice operators, and primary care providers. The company also gains patients through capitated arrangements with managed care providers. No single referral source accounted for a material portion of annual net revenue as of December 31, 2025, reflecting a diversified and broad-based customer acquisition model.