📊 AHCO Key Takeaways
Is AdaptHealth Corp. (AHCO) a Good Investment?
AdaptHealth demonstrates deteriorating profitability with negative net income of -$70.8M and a concerning net margin of -2.2%, indicating the company is unprofitable despite $3.2B in revenue. The company faces severe financial stress with an interest coverage ratio of 0.9x (unable to cover interest from operating income), high leverage at 1.14x debt-to-equity, and weak liquidity with a current ratio of only 1.02x. While operating cash flow of $601.8M and free cash flow of $219.4M provide some operational relief, the underlying business fundamentals show deteriorating returns (negative ROE and ROA) that suggest structural profitability challenges.
AdaptHealth shows meaningful cash generation, but its core earnings profile remains weak: revenue is slightly declining, operating margin is thin at 2.8%, and net income remains negative. Financial risk is elevated by high leverage and sub-1x interest coverage, which limits resilience if operating performance does not improve. The business is not fundamentally broken, but current profitability and balance-sheet pressure outweigh the cash flow positives.
Why Buy AdaptHealth Corp. Stock? AHCO Key Strengths
- Positive operating cash flow of $601.8M demonstrates cash generation capability from core operations
- Free cash flow of $219.4M after capital expenditures provides buffer for debt service and strategic flexibility
- Moderate capital intensity with CapEx at 11.9% of revenue suggests efficient asset utilization
- Strong operating cash flow generation of $601.77M supports debt service and reinvestment capacity
- Positive free cash flow of $219.38M indicates the business can still produce cash after capital spending
- Large asset and equity base provides some balance-sheet support despite current earnings weakness
AHCO Stock Risks: AdaptHealth Corp. Investment Risks
- Net loss of $70.8M with negative 2.2% net margin indicates fundamental unprofitability and margin compression
- Interest coverage of 0.9x is dangerously low - operating income insufficient to cover interest expense, signaling distress
- High leverage (1.14x debt-to-equity) combined with $1.7B long-term debt and deteriorating profitability creates debt sustainability concerns
- Weak liquidity with current ratio of 1.02x and quick ratio of 0.81x limits financial flexibility
- Declining ROE (-4.7%) and ROA (-1.6%) indicate deteriorating returns on shareholder and asset capital
- Revenue essentially flat YoY (-0.5%) with no organic growth offset
- Negative net income and -2.2% net margin indicate weak underlying profitability
- Interest coverage of 0.9x suggests operating income is not comfortably covering interest expense
- Revenue declined 0.5% year over year, raising concern about growth quality and operating leverage
Key Metrics to Watch
- Net income trending - path to profitability critical; any further deterioration signals deeper issues
- Interest coverage ratio - must improve above 1.5x to demonstrate debt service sustainability
- Operating margin expansion - determine if 2.8% is a floor or will compress further
- Debt reduction progress - monitor whether FCF is deployed to reduce leverage below 1.0x
- Working capital management - track current ratio trend given tight 1.02x level
- Interest coverage and long-term debt reduction
- Operating margin and free cash flow sustainability
AdaptHealth Corp. (AHCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
AdaptHealth Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
AHCO Profit Margin, ROE & Profitability Analysis
AHCO vs Services Sector: How AdaptHealth Corp. Compares
How AdaptHealth Corp. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is AdaptHealth Corp. Stock Overvalued? AHCO Valuation Analysis 2026
Based on fundamental analysis, AdaptHealth Corp. shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
AdaptHealth Corp. Balance Sheet: AHCO Debt, Cash & Liquidity
AHCO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: AdaptHealth Corp.'s revenue has grown significantly by 33% over the 5-year period, indicating strong business expansion. The most recent EPS of $-5.31 indicates the company is currently unprofitable.
AHCO Revenue Growth, EPS Growth & YoY Performance
AHCO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $805.9M | $22.9M | $0.15 |
| Q2 2025 | $800.4M | $7.5M | $0.05 |
| Q1 2025 | $777.9M | -$2.1M | $-0.02 |
| Q3 2024 | $804.0M | $22.9M | $0.15 |
| Q2 2024 | $793.3M | $14.0M | $0.03 |
| Q1 2024 | $744.6M | -$2.1M | $-0.02 |
| Q3 2023 | $756.5M | $16.1M | $0.11 |
| Q2 2023 | $727.6M | $14.0M | $0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AdaptHealth Corp. Dividends, Buybacks & Capital Allocation
AHCO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for AdaptHealth Corp. (CIK: 0001725255)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AHCO
What is the AI rating for AHCO?
AdaptHealth Corp. (AHCO) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AHCO's key strengths?
Claude: Positive operating cash flow of $601.8M demonstrates cash generation capability from core operations. Free cash flow of $219.4M after capital expenditures provides buffer for debt service and strategic flexibility. ChatGPT: Strong operating cash flow generation of $601.77M supports debt service and reinvestment capacity. Positive free cash flow of $219.38M indicates the business can still produce cash after capital spending.
What are the risks of investing in AHCO?
Claude: Net loss of $70.8M with negative 2.2% net margin indicates fundamental unprofitability and margin compression. Interest coverage of 0.9x is dangerously low - operating income insufficient to cover interest expense, signaling distress. ChatGPT: Negative net income and -2.2% net margin indicate weak underlying profitability. Interest coverage of 0.9x suggests operating income is not comfortably covering interest expense.
What is AHCO's revenue and growth?
AdaptHealth Corp. reported revenue of $3.2B.
Does AHCO pay dividends?
AdaptHealth Corp. does not currently pay dividends.
Where can I find AHCO SEC filings?
Official SEC filings for AdaptHealth Corp. (CIK: 0001725255) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AHCO's EPS?
AdaptHealth Corp. has a diluted EPS of $-0.52.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AHCO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, AdaptHealth Corp. has a SELL rating with 81% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AHCO stock overvalued or undervalued?
Valuation metrics for AHCO: ROE of -4.7% (sector avg: 16%), net margin of -2.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy AHCO stock in 2026?
Our dual AI analysis gives AdaptHealth Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AHCO's free cash flow?
AdaptHealth Corp.'s operating cash flow is $601.8M, with capital expenditures of $382.4M. FCF margin is 6.8%.
How does AHCO compare to other Services stocks?
Vs Services sector averages: Net margin -2.2% (avg: 10%), ROE -4.7% (avg: 16%), current ratio 1.02 (avg: 1.5).