AdaptHealth Corp lowered its full-year adjusted EBITDA guidance by $55 million, citing a $40 million second-half impact from a missed West Coast capitated contract and a $30 million hit from a major manufacturer's contract termination and immediate price increase. The company also announced a definitive agreement to sell its diabetes business for $235 million, recorded a $144.2 million non-cash goodwill impairment related to that divestiture, and expanded its capitated relationship with Humana to 33 states plus D.C. and South Florida, transitioning 478,000 new members. Organic growth reached 16% with record volume gains, and a new AI-powered mask fitting tool achieved a 92% conversion rate in its first two weeks, driving a 56% increase in MyApp adoption. A workforce restructuring is expected to deliver $19 million in annualized savings, while free cash flow was negative $20.9 million in the second quarter due to $166.2 million in capital expenditures.
Adapthealth CorpCut full-year EBITDA guidance by $55 million due to contract and pricing headwinds, and recorded a $144.2 million goodwill impairment.
Humana IncExpanded capitated relationship with AdaptHealth to 33 states plus D.C. and South Florida, transitioning 478,000 new members.