AdaptHealth (AHCO) J.P. Morgan 2026 Global Leveraged Finance Conference summary

Market overview and growth

• Sleep Apnea remains underdiagnosed, with only 20% of 33–34 million Americans receiving treatment, but wearables are increasing detection rates.

• The U.S. Sleep Apnea market is expected to grow at a low to mid-single digit rate.

• The company holds about 25% of the U.S. CPAP market and continues to gain share, with record census and setup numbers anticipated by 2026.

• Expansion is focused on the West Coast, with new de novo locations and recent acquisitions, including Hawaii.

• Capitated contracts and payer relationships are driving geographic and market expansion.

Operational processes and technology

• CPAP patients are set up by respiratory therapists and receive initial supplies, with adherence closely monitored in the first 90 days.

• Adherence is supported by hundreds of sleep coaches and technology-driven outreach, including an app and AI chatbots.

• The company achieves over 80% adherence, above the industry average of 70%.

• Speed to setup has improved from 17 to 9 days, aided by digital tools and streamlined workflows.

• Technology is integrated with payer contracts to optimize resupply and patient engagement.

Revenue model and margins

• Medicare CPAP rental yields $60/month for 13 months, with average resupply orders of $200, occurring about three times per year.

• Respiratory products follow a similar model but over 36 months, with lower resupply importance.

• Adjusted EBITDA margins for sleep and respiratory are in the high 20% range, with gross margins around 60% for resupply.

• Capitated contracts provide predictable revenue streams and are priced to maintain enterprise-level margins.