AdaptHealth (AHCO) Barclays 27th Annual Global Healthcare Conference 2025 summary

Business structure and growth segments

• Recently reorganized into four segments: sleep health (40% of revenue), respiratory health (20%), diabetes health (20%), and Wellness at Home (ancillary products and supplies).

• Sleep health targets a large, underdiagnosed market with steady demand growth, driven by increased awareness and technology adoption.

• Respiratory health focuses on COPD and advanced respiratory illnesses, with slow but steady revenue growth, often influenced by flu and COVID seasons.

• Diabetes health is a large, underdiagnosed market; recent operational missteps are being addressed, with progress shown in retention and resupply operations.

• Wellness at Home includes traditional DME and supplies, contributing ancillary revenue to core segments.

Financial outlook and investments

• Guiding for modest 1% top-line growth in 2025, with segment-specific expectations: respiratory and Wellness at Home up slightly, diabetes down, and sleep expected to perform well.

• Flat margins expected in 2025 due to investments in leadership and technology, with margin expansion targeted for 2026.

• Significant hiring of experienced med tech executives and ongoing technology investments, including AI for intake and data processing.

• AI initiatives aim to streamline intake processes, converting unstructured data into actionable information.

Segment-specific initiatives and trends

• Diabetes segment focused on improving retention and new patient starts, with operational changes leading to best retention in over two years.

• Sleep segment benefits from strong demand and increased adherence among patients using GLP-1s, with GLP-1s providing a modest tailwind.

• Respiratory segment's growth may exceed guidance due to a historically high flu season, though impact is mainly on new patient starts.