Accendra Health (ACH) Q2 2025 earnings summary

Executive summary

• The Products & Healthcare Services (P&HS) segment is classified as discontinued operations and held for sale, with a $649M loss and $106M goodwill impairment recognized; focus shifts to the higher-margin Patient Direct business, which showed solid growth in Q2 2025.

• Patient Direct is projected to generate $2.76–$2.82 billion in revenue and $376–$382 million in adjusted EBITDA for 2025, reflecting disciplined growth and favorable market trends.

• The terminated Rotech acquisition resulted in $80M in breakage fees and $18M in related financing costs in Q2 2025, excluded from non-GAAP results.

• Leadership expresses confidence in Patient Direct's future, citing favorable demographics and scale.

Financial highlights

• Q2 2025 revenue from continuing operations was $681.9M, up 3.3% year-over-year; year-to-date revenue was $1.36B, up 4.4%.

• Q2 adjusted EBITDA was $96.6M (14.2% margin), up from $91.1M (13.8%) in Q2 2024; year-to-date adjusted EBITDA was $192.7M (14.2% margin), up from $160.3M (12.3%).

• Adjusted net income for Q2 was $20.5M ($0.26/share), up from $19.3M ($0.25/share) last year; year-to-date adjusted net income was $43.7M ($0.55/share), up from $21.9M ($0.28/share).

• GAAP net loss from continuing operations was $(83.8)M for Q2 2025, compared to $(6.7)M in Q2 2024, driven by one-time charges.

• Net debt at June 30, 2025 was $1.94B, up $126M since year-end 2024, mainly due to Rotech-related outlays.

Outlook and guidance

• 2025 guidance for continuing operations: revenue of $2.76–$2.82B, adjusted net income per share of $1.02–$1.07, adjusted EBITDA of $376–$382M, and adjusted net income of $81–$85M.

• H2 2025 expected revenue: $1.40–$1.46B; adjusted net income: $0.47–$0.52/share; adjusted EBITDA: $183–$189M.

• Interest expense anticipated at $97–$100M; net capital expenditures at $135–$145M; adjusted effective tax rate estimated at 29.5%–30.5%.

• Stranded costs are expected to rise temporarily post-divestiture before declining as a percentage of revenue.

• The loss of a major commercial payor contract, representing 12% of net revenue, is expected to have a net neutral impact through 2025, with most effects in 2026.