Accendra Health (ACH) Q3 2025 earnings summary

Executive summary

• Announced definitive agreement to sell the Products & Healthcare Services (P&HS) segment to Platinum Equity for $375 million, retaining an equity interest, with the transaction expected to close in Q1 2026.

• Strategic shift positions the company as a pure-play home-based care business, focusing on the Patient Direct platform and long-term growth.

• Nationwide preferred provider agreements, including a new deal with Optum, are expected to drive organic growth in home-based care.

• Financial results were impacted by a $80 million transaction breakage fee and $18 million in transaction financing fees due to the terminated Rotech acquisition.

• Forward-looking statements reflect expectations for 2025 performance, including cost-saving initiatives and the anticipated segment sale.

Financial highlights

• Q3 2025 revenue from continuing operations was $697.3 million, up from $686.8 million in Q3 2024.

• Adjusted EBITDA for Q3 2025 was $92.2 million, down from $107.7 million in Q3 2024; year-to-date adjusted EBITDA was $285 million, up 6.3%.

• Adjusted net income per share for Q3 2025 was $0.25, compared to $0.36 in Q3 2024; year-to-date adjusted net income per share was $0.80 versus $0.64 last year.

• Basic and diluted loss per share from continuing operations was $(0.07) for Q3 2025.

• Net loss from discontinued operations was $145 million for Q3 2025, driven by goodwill impairment and loss on classification to held for sale.

Outlook and guidance

• Reaffirmed 2025 full-year guidance: revenue between $2.76–$2.82 billion, adjusted net income $1.02–$1.07 per share, and adjusted EBITDA $376–$382 million.

• Full-year revenue expected toward the bottom of the guidance range due to updated interest expense allocation.

• 2026 guidance not yet published; expect to provide details with Q4 results.

• The sale of the P&HS segment is expected to close in Q1 2026, with proceeds intended to repay $280 million in debt and focus on Patient Direct.

• Anticipates strong 2026 performance, with the loss of a large, low-margin customer contract offset by improved margins and cash flow.