📊 AHCO Key Takeaways
Is AdaptHealth Corp. (AHCO) a Good Investment?
AdaptHealth is fundamentally distressed with negative profitability (-2.0% net margin), critical debt servicing issues (0.1x interest coverage), and negative free cash flow despite positive operating cash flow. Weak liquidity (0.92x current ratio, only $48M cash) combined with flat revenue growth and $1.8B long-term debt creates severe financial stress.
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 $93.7M demonstrates core business generates cash
- Established revenue base of $819.8M in essential home health care services
- Debt-to-equity ratio of 1.21x is manageable relative to highly leveraged peers
- 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
- Interest coverage ratio of 0.1x indicates company cannot service debt from operating income—critical solvency risk
- Negative free cash flow of -$27.5M despite positive operating cash flow due to high capex, signaling cash burn
- Liquidity crisis with current ratio of 0.92x and minimal cash reserves ($48M) creating refinancing pressure
- Persistent unprofitability with -2.0% net margin and negative ROE/ROA indicating structural operational challenges
- Revenue stagnation (-0.5% YoY) with no visible growth trajectory in mature market
- 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
- Interest coverage ratio trajectory—must improve above 1.0x for viability
- Free cash flow and cash balance—monitor for covenant breaches or refinancing needs
- Net margin expansion—requires operational improvements to achieve profitability
- Revenue growth acceleration—flat performance is unsustainable given debt burden
- Interest coverage and long-term debt reduction
- Operating margin and free cash flow sustainability
AdaptHealth Corp. (AHCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
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 |
|---|---|---|---|
| Q1 2026 | $777.9M | -$7.2M | $-0.05 |
| 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 |
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 (STRONG SELL) and ChatGPT (SELL) with 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AHCO's key strengths?
Claude: Positive operating cash flow of $93.7M demonstrates core business generates cash. Established revenue base of $819.8M in essential home health care services. 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: Interest coverage ratio of 0.1x indicates company cannot service debt from operating income—critical solvency risk. Negative free cash flow of -$27.5M despite positive operating cash flow due to high capex, signaling cash burn. 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 $819.8M.
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 $-0.12.
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 May 2026, AdaptHealth Corp. has a SELL rating with 86% 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 -1.1% (sector avg: 16%), net margin of -2.0% (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 $93.7M, with capital expenditures of $121.2M. FCF margin is -3.4%.
How does AHCO compare to other Services stocks?
Vs Services sector averages: Net margin -2.0% (avg: 10%), ROE -1.1% (avg: 16%), current ratio 0.92 (avg: 1.5).