Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-38399

AdaptHealth Corp.

(Exact name of registrant as specified in its charter)


Delaware			82-3677704
(State of Other Jurisdiction of incorporation or Organization)			(I.R.S. Employer Identification No.)

220 West Germantown Pike Suite 250, Plymouth Meeting, Pennsylvania			19462
(Address of principal executive offices)			(Zip code)

Registrant’s telephone number, including area code: (610) 424-4515

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name Of Each Exchange
On Which Registered

Common Stock, par value $0.0001 per share

AHCO

The Nasdaq Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.0405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer x	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
			Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of November 1, 2024, there were 134,554,889 shares of the Registrant’s Common Stock issued and outstanding.

ADAPTHEALTH CORP.

FORM 10-Q

TABLE OF CONTENTS


			Page Number
PART I FINANCIAL INFORMATION

Item 1. Interim Consolidated Financial Statements (Unaudited)

Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023			3

Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023			4

Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2024 and 2023			5

Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2024 and 2023			6

Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023			8

Notes to Interim Consolidated Financial Statements			9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			35

Item 3. Quantitative and Qualitative Disclosures About Market Risk			54

Item 4. Controls and Procedures			55


PART II OTHER INFORMATION			57

Item 1. Legal Proceedings			57

Item 1A. Risk Factors			57

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			57

Item 3. Defaults upon Senior Securities			57

Item 4. Mine Safety Disclosure			57

Item 5. Other Information			57

Item 6. Exhibits			57

Signatures			59

Table of Contents

CAUTIONARY STATEMENT

In this Quarterly Report on Form 10-Q, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part I Item 2, and the documents incorporated by reference herein, we make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations for future financial performance, business strategies or expectations for our business. These statements may be preceded by, followed by or include the words “may,” “might,” “will,” “will likely result,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target” or similar expressions.

These forward-looking statements are based on information available to us as of the date they were made, and involve a number of risks and uncertainties which may cause them to turn out to be wrong. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include:

•competition and the ability of our business to grow and manage profitable growth;

•fluctuations in the U.S. and/or global stock markets;

•the possibility that we may be adversely affected by other economic, business, and/or competitive factors;

•changes in applicable laws or regulations; and

•other risks and uncertainties set forth in this Form 10-Q.

Investors should carefully consider the foregoing factors and the other risks and uncertainties that may affect our business including those outlined under Item 1A, Risk Factors, in our most recent annual report on Form 10-K and our quarterly reports on Form 10-Q.

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PART I – FINANCIAL INFORMATION

Item 1. Interim Consolidated Financial Statements

ADAPTHEALTH CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

(UNAUDITED)


	September 30, 2024		December 31, 2023
Assets
Current assets:
Cash	$	100,180	$	77,132
Accounts receivable	401,215		388,910
Inventory	133,490		113,642
Prepaid and other current assets	48,906		69,338
Total current assets	683,791		649,022
Equipment and other fixed assets, net	474,922		495,101
Operating lease right-of-use assets	106,390		110,465
Finance lease right-of-use assets	38,769		31,962
Goodwill	2,707,282		2,724,958
Identifiable intangible assets, net	113,452		130,160
Deferred tax assets	328,106		345,854
Other assets	17,224		21,128
Total Assets	$	4,469,936	$	4,508,650
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses	$	430,371	$	391,994
Current portion of long-term debt	16,250		53,368
Current portion of operating lease obligations	30,276		29,270
Current portion of finance lease obligations	12,307		9,122
Contract liabilities	35,842		38,570
Warrant liability	2,221		4,021
Other liabilities	25,758		10,654
Total current liabilities	553,025		536,999
Long-term debt, less current portion	2,013,644		2,094,614
Operating lease obligations, less current portion	80,135		85,529
Finance lease obligations, less current portion	26,098		22,746
Other long-term liabilities	272,846		302,093
Total Liabilities	2,945,748		3,041,981
Commitments and contingencies (note 14)
Stockholders' Equity:
Common Stock, par value of $0.0001 per share, 300,000,000 shares authorized; 134,538,730 and 132,634,850 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively	13		13
Preferred Stock, par value of $0.0001 per share, 5,000,000 shares authorized; 124,060 shares issued and outstanding as of September 30, 2024 and December 31, 2023	1		1
Treasury stock, at cost (2,935,035 and 3,935,035 shares at September 30, 2024 and December 31, 2023, respectively)	(25,548)		(43,267)
Additional paid-in capital	2,152,605		2,149,951
Accumulated deficit	(612,440)		(652,600)
Accumulated other comprehensive income	1,625		4,356
Total stockholders' equity attributable to AdaptHealth Corp.	1,516,256		1,458,454
Noncontrolling interest in subsidiary	7,932		8,215
Total Stockholders' Equity	1,524,188		1,466,669
Total Liabilities and Stockholders' Equity	$	4,469,936	$	4,508,650

See accompanying notes to unaudited interim consolidated financial statements.

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ADAPTHEALTH CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net revenue	$	805,858	$	804,031	$	2,404,330	$	2,341,943
Costs and expenses:
Cost of net revenue	681,866		693,488		2,036,532		2,022,281
General and administrative expenses	49,242		45,198		154,632		142,797
Depreciation and amortization, excluding patient equipment depreciation	11,263		14,515		34,023		45,596
Goodwill impairment (note 5)	—		511,866		13,078		511,866
Total costs and expenses	742,371		1,265,067		2,238,265		2,722,540
Operating income (loss)	63,487		(461,036)		166,065		(380,597)
Interest expense, net	31,429		32,306		96,939		96,813
Loss on extinguishment of debt	2,273		—		2,273		—
Change in fair value of warrant liability (note 10)	(2,243)		(9,160)		(1,800)		(31,886)
Other loss, net	—		3,317		3,345		6,574
Income (loss) before income taxes	32,028		(487,499)		65,308		(452,098)
Income tax expense (benefit)	8,073		(34,578)		21,931		(30,893)
Net income (loss)	23,955		(452,921)		43,377		(421,205)
Income attributable to noncontrolling interest	1,096		1,155		3,217		3,187
Net income (loss) attributable to AdaptHealth Corp.	$	22,859	$	(454,076)	$	40,160	$	(424,392)

Weighted average common shares outstanding - basic	134,303		134,825		133,481		134,549
Weighted average common shares outstanding - diluted	136,530		134,982		135,441		135,202

Basic net income (loss) per share (note 11)	$	0.16	$	(3.37)	$	0.28	$	(3.15)
Diluted net income (loss) per share (note 11)	$	0.15	$	(3.43)	$	0.27	$	(3.37)

See accompanying notes to unaudited interim consolidated financial statements.

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ADAPTHEALTH CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(IN THOUSANDS)

(UNAUDITED)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net income (loss)	$	23,955	$	(452,921)	$	43,377	$	(421,205)
Other comprehensive income (loss):
(Loss) gain on interest rate swap agreements, inclusive of reclassification adjustment, net of tax	(3,223)		66		(2,731)		(285)
Comprehensive income (loss)	20,732		(452,855)		40,646		(421,490)

Income attributable to noncontrolling interest	1,096		1,155		3,217		3,187
Comprehensive income (loss) attributable to AdaptHealth Corp.	$	19,636	$	(454,010)	$	37,429	$	(424,677)

See accompanying notes to unaudited interim consolidated financial statements.

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ADAPTHEALTH CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(IN THOUSANDS)

(UNAUDITED)


	Common Stock			Preferred Stock			Treasury Stock			Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive income		Noncontrolling interest in subsidiary		Total
	Shares	Amount		Shares	Amount		Shares	Amount
Balance, December 31, 2023	132,635	$	13	124	$	1	3,935	$	(43,267)	$	2,149,951	$	(652,600)	$	4,356	$	8,215	$	1,466,669
Equity-based compensation	300	—		—	—		—	—		4,533		—		—		—		4,533
Exercise of stock options	177	—		—	—		—	—		545		—		—		—		545
Payments for tax withholdings from restricted stock vesting	—	—		—	—		—	—		(1,072)		—		—		—		(1,072)
Common Stock issued in connection with employee stock purchase plan	83	—		—	—		—	—		607		—		—		—		607
Net (loss) income	—	—		—	—		—	—		—		(2,134)		—		1,025		(1,109)
Change in fair value of interest rate swaps, inclusive of reclassification adjustment	—	—		—	—		—	—		—		—		856		—		856
Balance, March 31, 2024	133,195	$	13	124	$	1	3,935	$	(43,267)	$	2,154,564	$	(654,734)	$	5,212	$	9,240	$	1,471,029
Equity-based compensation	182	—		—	—		—	—		5,218		—		—		—		5,218
Payments for tax withholdings from restricted stock vesting	—	—		—	—		—	—		(261)		—		—		—		(261)
Distribution to non-controlling interest	—	—		—	—		—	—		—		—		—		(3,500)		(3,500)
Net income	—	—		—	—		—	—		—		19,435		—		1,096		20,531
Change in fair value of interest rate swaps, inclusive of reclassification adjustment	—	—		—	—		—	—		—		—		(364)		—		(364)
Balance, June 30, 2024	133,377	$	13	124	$	1	3,935	$	(43,267)	$	2,159,521	$	(635,299)	$	4,848	$	6,836	$	1,492,653
Equity-based compensation	79	—		—	—		—	—		863		—		—		—		863
Exercise of stock options	44	—		—	—		—	—		198		—		—		—		198
Payments for tax withholdings from restricted stock vesting and stock option exercises	—	—		—	—		—	—		(400)		—		—		—		(400)
Common Stock issued in connection with employee stock purchase plan	39	—		—	—		—	—		392		—		—		—		392
Issuance of Settlement Shares	1,000	—		—	—		(1,000)	17,719		(7,969)		—		—		—		9,750
Net income	—	—		—	—		—	—		—		22,859		—		1,096		23,955
Change in fair value of interest rate swaps, inclusive of reclassification adjustment	—	—		—	—		—	—		—		—		(3,223)		—		(3,223)
Balance, September 30, 2024	134,539	$	13	124	$	1	2,935	$	(25,548)	$	2,152,605	$	(612,440)	$	1,625	$	7,932	$	1,524,188

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	Common Stock			Preferred Stock			Treasury Stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive income		Noncontrolling interest in subsidiary		Total
	Shares	Amount		Shares	Amount		Shares	Amount
Balance, December 31, 2022	134,435	$	13	124	$	1	751	$	(13,992)	$	2,130,148	$	26,295	$	8,693	$	6,600	$	2,157,758
Equity-based compensation	292	—		—	—		—	—		5,916		—		—		—		5,916
Payments for tax withholdings from restricted stock vesting	—	—		—	—		—	—		(1,883)		—		—		—		(1,883)
Common Stock issued in connection with employee stock purchase plan	53	—		—	—		—	—		1,021		—		—		—		1,021
Shares purchased under share repurchase program	(632)	—		—	—		632	(9,224)		—		—		—		—		(9,224)
Net income	—	—		—	—		—	—		—		15,707		—		968		16,675
Change in fair value of interest rate swaps, inclusive of reclassification adjustment	—	—		—	—		—	—		—		—		(2,805)		—		(2,805)
Balance, March 31, 2023	134,148	$	13	124	$	1	1,383	$	(23,216)	$	2,135,202	$	42,002	$	5,888	$	7,568	$	2,167,458
Equity-based compensation	156	—		—	—		—	—		6,847		—		—		—		6,847
Exercise of stock options	214	—		—	—		—	—		—		—		—		—		—
Payments for tax withholdings from restricted stock vesting and stock option exercises	—	—		—	—		—	—		(2,229)		—		—		—		(2,229)
Distribution to non-controlling interest	—	—		—	—		—	—		—		—		—		(2,500)		(2,500)
Net income	—	—		—	—		—	—		—		13,977		—		1,064		15,041
Change in fair value of interest rate swaps, inclusive of reclassification adjustment	—	—		—	—		—	—		—		—		2,454		—		2,454
Balance, June 30, 2023	134,518	$	13	124	$	1	1,383	$	(23,216)	$	2,139,820	$	55,979	$	8,342	$	6,132	$	2,187,071
Equity-based compensation	176	—		—	—		—	—		4,521		—		—		—		4,521
Exercise of stock options	215	—		—	—		—	—		538		—		—		—		538
Payments for tax withholdings from restricted stock vesting and stock option exercises	—	—		—	—		—	—		(513)		—		—		—		(513)
Common Stock issued in connection with employee stock purchase plan	82	—		—	—		—	—		1,010		—		—		—		1,010
Net income	—	—		—	—		—	—		—		(454,076)		—		1,155		(452,921)
Change in fair value of interest rate swaps, inclusive of reclassification adjustment	—	—		—	—		—	—		—		—		66		—		66
Balance, September 30, 2023	134,991	$	13	124	$	1	1,383	$	(23,216)	$	2,145,376	$	(398,097)	$	8,408	$	7,287	$	1,739,772

See accompanying notes to unaudited interim consolidated financial statements.

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ADAPTHEALTH CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS) (UNAUDITED)


	Nine Months Ended September 30,
	2024		2023
Cash flows from operating activities:
Net income (loss)	$	43,377	$	(421,205)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization, including patient equipment depreciation	274,797		290,419
Goodwill impairment	13,078		511,866
Equity-based compensation	10,614		17,284
Change in fair value of warrant liability	(1,800)		(31,886)
Reduction in the carrying amount of operating lease right-of-use assets	24,902		26,309
Reduction in the carrying amount of finance lease right-of-use assets	7,927		3,821
Deferred income tax expense (benefit)	18,664		(37,033)
Change in fair value of interest rate swaps, net of reclassification adjustment	(367)		(1,394)
Amortization of deferred financing costs	4,247		3,926
Loss on extinguishment of debt	2,273		—
Payment of contingent consideration from an acquisition	(1,850)		—
Other	569		350
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	(12,305)		(10,043)
Inventory	(21,474)		12,769
Prepaid and other assets	23,656		10,956
Operating lease obligations	(25,212)		(26,959)
Operating liabilities	30,328		(23,780)
Net cash provided by operating activities	391,424		325,400
Cash flows from investing activities:
Purchases of equipment and other fixed assets	(228,719)		(248,816)
Proceeds from the sale of assets	5,316		—
Payments for business acquisitions, net of cash acquired	—		(17,917)
Payments for cost method investments	—		(128)
Net cash used in investing activities	(223,403)		(266,861)
Cash flows from financing activities:
Proceeds from borrowings on long-term debt and lines of credit	253,477		50,000
Repayments on long-term debt and lines of credit	(373,477)		(75,000)
Repayments of finance lease obligations	(8,261)		(4,558)
Payments for shares purchased under share repurchase program	—		(9,224)
Proceeds from the exercise of stock options	742		538
Proceeds received in connection with employee stock purchase plan	999		2,031
Payments relating to the Tax Receivable Agreement	(1,432)		(3,202)
Payments of debt financing costs	(6,429)		—
Distributions to noncontrolling interest	(3,500)		(2,500)
Payments for tax withholdings from restricted stock vesting and stock option exercises	(1,794)		(5,253)
Payments of contingent consideration and deferred purchase price from acquisitions	(5,298)		(1,500)
Net cash used in financing activities	(144,973)		(48,668)
Net increase in cash	23,048		9,871
Cash at beginning of period	77,132		46,272
Cash at end of period	$	100,180	$	56,143
Supplemental disclosures:
Cash paid for interest	$	112,519	$	113,083
Cash paid for income taxes, net of refunds	13,015		5,727
Noncash investing and financing activities:
Unpaid equipment and other fixed asset purchases at end of period	46,720		32,481
Assets subject to operating lease obligations	24,604		8,179
Operating lease obligations	(24,604)		(8,179)
Write-off of assets subject to operating lease obligations	(3,631)		—
Write-off of operating lease obligations	3,631		—
Assets subject to finance lease obligations	15,665		19,726
Finance lease obligations	(15,665)		(19,726)
Deferred purchase price in connection with acquisitions	—		50

See accompanying notes to unaudited interim consolidated financial statements.

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ADAPTHEALTH CORP. AND SUBSIDIARIES

Notes to Interim Consolidated Financial Statements (Unaudited)

(1) General Information

AdaptHealth Corp. and subsidiaries ("AdaptHealth" or the "Company") is a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment ("HME"), medical supplies, and related services. AdaptHealth focuses primarily on providing (i) sleep therapy equipment, supplies and related services (including CPAP and bi PAP services) to individuals suffering from obstructive sleep apnea ("OSA"), (ii) medical devices and supplies to patients for the treatment of diabetes (including continuous glucose monitors ("CGM") and insulin pumps), (iii) home medical equipment to patients discharged from acute care and other facilities, (iv) oxygen and related chronic therapy services in the home, and (v) other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy and nutritional supply needs. AdaptHealth services beneficiaries of Medicare, Medicaid and commercial insurance payors.

The interim consolidated financial statements are unaudited, but reflect all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Interim results are not necessarily indicative of the results for a full year.

There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

(a) Basis of Presentation

The interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). In the opinion of management, the interim consolidated financial statements include all necessary adjustments for a fair presentation of the financial position and results of operations for the periods presented.

(b) Basis of Consolidation

The accompanying interim consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash.

(d) Accounting Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and reported amounts of revenues and expenses during the reporting period. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management estimates relate to revenue recognition and the valuation of accounts receivable (implicit price concession), income taxes and the tax receivable agreement, equity-based compensation, warrant liability, long-lived assets, including goodwill and identifiable intangible assets, and contingencies. Actual results could differ from those estimates.

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ADAPTHEALTH CORP. AND SUBSIDIARIES

Notes to Interim Consolidated Financial Statements (Unaudited) (Continued)

(e) Valuation of Goodwill

The Company has a significant amount of goodwill on its balance sheet that resulted from the business acquisitions the Company has made. Goodwill is not amortized, rather, it is assessed for impairment annually and also upon the occurrence of a triggering event or change in circumstances indicating a possible impairment. Such triggering events potentially warranting an annual or interim goodwill impairment assessment include, among other factors, declines in historical or projected revenue, operating income or cash flows, and sustained decreases in the Company’s stock price or market capitalization. Such changes in circumstance can include, among others, changes in the legal environment, reimbursement environment, operating performance, and/or future prospects. The Company performs its annual impairment assessment of goodwill during the fourth quarter of each year. The impairment assessment can be performed on either a quantitative or qualitative basis. The Company first assesses qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment analysis. If determined necessary, the Company applies the quantitative impairment test to identify and measure the amount of impairment, if any. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors, such as estimates of a reporting unit's fair value, including the revenue growth rates, discount rate, and control premium used to estimate the reporting unit's fair value, and judgment about impairment triggering events. As a result, there can be no assurance that the estimates and assumptions made for purposes of the annual or interim goodwill impairment test will prove to be accurate predictions of the future.

(f) Long-Lived Assets

The Company’s long-lived assets, such as equipment and other fixed assets, operating lease right-of-use assets, finance lease right-of-use assets and definite-lived identifiable intangible assets, are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

Definite-lived identifiable intangible assets consist of tradenames, payor contracts, contractual rental agreements and developed technology. These assets are amortized using the straight-line method over their estimated useful lives, which reflects the pattern in which the economic benefits of the assets are expected to be consumed. In addition to consideration of impairment upon the events or changes in circumstances described above, management regularly evaluates the remaining useful lives of its long-lived assets. The following table summarizes the useful lives of the Company’s identifiable intangible assets:


Tradenames			5 to 10 years
Payor contracts			10 years
Developed technology			5 years

The Company did not recognize any impairment charges on long-lived assets for the nine months ended September 30, 2024 and 2023.

(g) Equity-based Compensation

The Company accounts for its equity-based compensation in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 718, Compensation - Stock Compensation, which establishes accounting for share-based awards exchanged for employee services and requires companies to expense the estimated fair value of these awards over the requisite employee service period. Equity-based compensation expense related to these grants is included within general and administrative expenses and cost of net revenue in the accompanying consolidated statements of operations. The Company measures and recognizes equity-based compensation expense for such awards based on their estimated fair values on the date of grant. For share-based awards with service only or service and performance conditions, the value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period in the Company’s consolidated financial statements. For share-based awards with only a service condition, equity-based compensation expense is recognized on a straight-line basis over the requisite service period. For awards with performance conditions, equity-based compensation expense is recognized straight-line on a tranche-by-tranche basis over

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the employees’ requisite service period subject to management’s estimation of the probability of vesting of such awards. If management determines that the performance conditions are no longer probable of achievement, the Company will reverse the previously recognized equity-based compensation expense in the period of determination. For awards with market conditions, the grant-date fair value is estimated using a monte-carlo simulation analysis, which is recognized straight-line on a tranche-by-tranche basis over the employees’ requisite service period regardless of whether or the extent to which the awards ultimately vest. The Company does not estimate forfeitures in connection with its accounting for equity-based compensation, and instead accounts for forfeitures as they occur. See Note 10, Stockholders’ Equity, for additional information regarding the Company’s equity-based compensation expense.

(h) Business Segment

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”) for the purposes of allocating resources and evaluating financial performance. The Company’s CODM is its Chief Executive Officer, who reviewed the financial information for the periods covered in this report on a consolidated level for purposes of allocating resources and evaluating financial performance, and as such, as of September 30, 2024, the Company’s operations constitute one operating segment and one reportable segment.

(i) Accounting for Leases

The Company accounts for its leases in accordance with FASB ASC Topic 842, Leases ("ASC 842"). ASC 842 requires the Company to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use ("ROU") asset on its consolidated balance sheet for most leases, and disclose key information about leasing arrangements. ASC 842 applies to a number of arrangements to which the Company is a party.

Generally, upon the commencement of a lease, the Company will record a lease liability and a ROU asset. However, the Company has elected, for all underlying leases with initial terms of twelve months or less (known as short-term leases), to not recognize a lease liability or ROU asset. Lease liabilities are initially recorded at lease commencement as the present value of future lease payments. ROU assets are initially recorded at lease commencement as the initial amount of the lease liability, together with the following, if applicable: (i) initial direct costs incurred by the lessee and (ii) lease payments made to the lessor net of lease incentives received, prior to lease commencement.

Over the lease term, the Company generally increases its lease liabilities using the effective interest method and decreases its lease liabilities for lease payments made. For finance leases, amortization and interest expense are recognized separately in the consolidated statements of operations, with amortization expense generally recorded on a straight-line basis over the lease term and interest expense recorded using the effective interest method. For operating leases, a single lease cost is generally recognized in the consolidated statements of operations on a straight-line basis over the lease term unless an impairment has been recorded with respect to a leased asset. Lease costs for short-term leases not recognized in the consolidated balance sheets are recognized in the consolidated statements of operations on a straight-line basis over the lease term. Variable lease costs not initially included in the lease liability and ROU asset impairment charges are expensed as incurred. ROU assets are assessed for impairment, similar to other long-lived assets.

See Note 12, Leases, for additional information.

(j) Recently Issued Accounting Pronouncements Not Yet Adopted

In March 2024, the FASB issued Accounting Standards update "ASU" No. 2024-02, Codification Improvements-Amendments to Remove References to the Concepts Statements, which removes various references to concepts statements from the FASB Accounting Standards Codification. This ASU is effective for the Company beginning in the first quarter of fiscal year 2026, with early adoption permitted. The Company does not expect that the new guidance will have a material impact on its consolidated financial statements, and intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2026.

In March 2024, the FASB issued ASU No. 2024-01, Compensation-Stock Compensation ("Topic 718"), which provides illustrative guidance to help entities determine whether profits interest and similar awards should be accounted for as share-based payment arrangements within the scope of ASC 718. ASU 2024-01 is effective for annual periods beginning

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after December 15, 2024, and interim periods within those annual periods. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes ("Topic 740"). This ASU improves the transparency of income tax disclosures by requiring public business entities to disclose specific categories in the annual rate reconciliation as well as disclose income tax expense (or benefit) and the amount of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective on a prospective basis for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements and related disclosures.

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting ("Topic 280"), which requires disclosure of incremental segment information, including significant segment expenses that are regularly provided to the chief operating decision maker and to disclose how reported measures of segment profit or loss are used in assessing segment performance and allocating resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements and related disclosures.

In August 2023, the FASB issued ASU No. 2023-05, Business Combinations-Joint Venture Formations ("Topic 805-60"), which requires that all entities that qualifies as either a joint venture or a corporate joint venture are required to apply a new basis of accounting. Specifically, the ASU provides that a joint venture or a corporate joint venture must initially measure its assets and liabilities at fair value on the formation date. ASU 2023-05 is effective for all joint ventures that are formed on or after January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements and related disclosures.

In March 2024, the SEC issued its final climate disclosure rule, which requires registrants to provide climate-related disclosures in their annual reports and registration statements. The new disclosure requirements will be effective for the Company beginning with its annual report for the year ending December 31, 2025. In April 2024, the SEC stayed its final climate rule to allow for a judicial review of pending legal challenges. The Company is currently evaluating the impact these rules will have on its consolidated financial statements and related disclosures and will monitor the litigation progress relating to these rules for possible impacts on the disclosure requirements under the rules.

(2) Revenue Recognition and Accounts Receivable

Revenue Recognition

The Company generates revenues for services and related products that the Company provides to patients for home medical equipment, related supplies, and other items. The Company’s revenues are recognized in the period in which services and related products are provided to customers and are recorded either at a point in time for the sale of supplies and disposables, over the fixed monthly service period for equipment, or in the month in which eligible members are entitled to receive healthcare services in connection with at-risk capitation arrangements.

Revenues are recognized when control of the promised good or service is transferred to customers, in an amount that reflects the consideration to which the Company expects to receive from patients or under reimbursement arrangements with Medicare, Medicaid and third-party payors, in exchange for those goods and services.

The Company determines the transaction price based on contractually agreed-upon amounts or rates, referred to as explicit price concessions, adjusted for estimates of variable consideration, such as implicit price concessions, based on historical reimbursement experience. The Company utilizes the expected value method to determine the amount of variable consideration, including implicit and explicit price concessions, that should be included to arrive at the transaction price, using contractual agreements and historical reimbursement experience. The Company applies constraint to the transaction price, such that net revenue is recorded only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in the future. If actual amounts of consideration ultimately received differ from the Company’s estimates, the Company adjusts these estimates, which would affect net revenue in the period such adjustments become known.

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Sales revenue is recognized upon transfer of control of products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenues for the sale of sleep therapy equipment supplies (including CPAP resupply products), home medical equipment and related supplies (including wheelchairs, hospital beds and infusion pumps), diabetic medical devices and supplies (including CGM and insulin pumps), and other HME products and supplies are recognized when control of the promised good or service is transferred to customers, which is generally upon shipment for direct to consumer medical devices and supplies and upon delivery to the home for home medical equipment.

The Company provides certain equipment to patients which is reimbursed periodically in fixed monthly payments for as long as the patient is using the equipment and medical necessity continues (in certain cases, the fixed monthly payments are capped at a certain amount). The equipment provided to the patient is based upon medical necessity as documented by prescriptions and other documentation received from the patient’s physician. The patient generally does not negotiate or select the manufacturer or model of the equipment prescribed by their physician and delivered by the Company. Once initial delivery of this equipment is made to the patient for initial setup, a monthly billing process is established based on the initial setup service date. The Company recognizes the fixed monthly revenue ratably over the service period as earned, less estimated adjustments, and defers revenue for the portion of the monthly bill that is unearned. No separate revenue is earned from the initial setup process. Included in fixed monthly revenue are unbilled amounts for which the revenue recognition criteria had been met as of period-end but were not yet billed to the payor. The estimate of net unbilled fixed monthly revenue recognized is based on historical trends and estimates of future collectability.

The Company receives a per member per month (“PMPM”) fee under certain at-risk capitation arrangements, which refers to a model in which the Company receives a PMPM fee from the third-party payor, and is responsible for managing a range of healthcare services and associated costs of its members. In at-risk capitation arrangements, the Company is responsible for the cost of contracted healthcare services required by those members in accordance with the terms of each agreement. Capitated revenue contracts with payors are generally multi-year arrangements and have a single monthly stand ready performance obligation to provide all aspects of necessary medical care to members for the contracted period in accordance with the scope of the agreements. The Company recognizes revenue in the month in which eligible members are entitled to receive healthcare services during the contract term. The Company’s revenue recognized under its capitation arrangements by core product line for the three and nine months ended September 30, 2024 is included in the table below. The Company’s revenue recognized under its capitation arrangements for the three and nine months ended September 30, 2023 is included in net sales revenue and net revenue from fixed monthly equipment reimbursements by core product line in the table below, which was immaterial for those periods.

The Company’s billing system contains payor-specific price tables that reflect the fee schedule amounts in effect or contractually agreed upon by various government and commercial insurance payors for each item of equipment or supply provided to a customer. Revenues are recorded based on the applicable fee schedule. The Company has established a contractual allowance, referred to as an explicit price concession, to account for adjustments that result from differences between the payment amount received and the expected realizable amount. If the payment amount received differs from the net realizable amount, an adjustment is recorded to revenues in the period that these payment differences are determined. The Company reports revenues in its consolidated financial statements net of such adjustments.

The Company recognizes revenue in the consolidated statements of operations and contract assets on the consolidated balance sheets only when services have been provided. Since the Company has performed its obligation under the contract, it has unconditional rights to the consideration recorded as contract assets and therefore classifies those billed and unbilled contract assets as accounts receivable.

Fixed monthly payments that the Company receives from customers in advance of providing services represent contract liabilities. Such payments primarily relate to patients who are billed monthly in advance and are recognized over the period as earned.

The Company disaggregates net revenue from contracts with customers by payor type and by core product lines. The Company believes that disaggregation of net revenue into these categories depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The payment terms and conditions within the Company’s revenue-generating contracts vary by payor type and payor source.

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The composition of net revenue by payor type for the three and nine months ended September 30, 2024 and 2023 are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Insurance	$	490,072	$	486,136	$	1,461,224	$	1,397,748
Government	208,309		220,351		617,653		618,860
Patient pay	107,477		97,544		325,453		325,335
Net revenue	$	805,858	$	804,031	$	2,404,330	$	2,341,943

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The composition of net revenue by core product lines for the three and nine months ended September 30, 2024 and 2023 are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net sales revenue:
Sleep	$	237,537	$	227,005	$	696,424	$	656,311
Diabetes	137,099		157,328		431,339		464,893
Supplies to the home	43,534		48,349		132,447		143,227
Respiratory	8,148		8,164		23,723		24,284
HME	24,331		27,095		75,916		82,895
Other	60,044		64,184		173,389		174,403
Total net sales revenue	$	510,693	$	532,125	$	1,533,238	$	1,546,013

Net revenue from fixed monthly equipment reimbursements:
Sleep	$	81,530	$	88,387	$	244,273	$	256,092
Diabetes	2,438		2,609		7,099		10,326
Respiratory	140,930		142,919		417,061		423,531
HME	24,551		25,087		70,472		71,402
Other	12,866		12,904		36,074		34,579
Total net revenue from fixed monthly equipment reimbursements	$	262,315	$	271,906	$	774,979	$	795,930

Net revenue from capitated revenue arrangements:
Sleep	$	7,380	$	—	$	21,408	$	—
Diabetes	1,535		$	—	4,679		—
Supplies to the home	3,246		$	—	9,536		—
Respiratory	14,939		$	—	44,521		—
HME	4,115		$	—	11,325		—
Other	1,635		$	—	4,644		—
Total net revenue from capitated revenue arrangements	$	32,850	$	—	$	96,113	$	—

Total net revenue:
Sleep	$	326,447	$	315,392	$	962,105	$	912,403
Diabetes	141,072		159,937		443,117		475,219
Supplies to the home	46,780		48,349		141,983		143,227
Respiratory	164,017		151,083		485,305		447,815
HME	52,997		52,182		157,713		154,297
Other	74,545		77,088		214,107		208,982
Total net revenue	$	805,858	$	804,031	$	2,404,330	$	2,341,943

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Accounts Receivable

Due to the continuing changes in the healthcare industry and third-party reimbursement environment, certain estimates are required to record accounts receivable at their net realizable values. Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. The complexity of third-party billing arrangements and laws and regulations governing Medicare and Medicaid may result in adjustments to amounts originally recorded.

The Company performs a periodic analysis to review the valuation of accounts receivable and collectability of outstanding balances. Management’s evaluation takes into consideration such factors as historical cash collections experience, business and economic conditions, trends in healthcare coverage, other collection indicators and information about specific receivables. The Company’s evaluation also considers the age and composition of the outstanding amounts in determining their estimated net realizable value.

Receivables are considered past due when not collected by established due dates. Specific patient balances are written off after collection efforts have been followed and the account has been determined to be uncollectible. Revisions in receivable estimates are considered implicit price concession adjustments and are recognized as an adjustment to net revenue in the period of revision. The Company does not have any material bad debt expense.

Included in accounts receivable are earned but unbilled accounts receivables. Billing delays, ranging from several days to several weeks, can occur due to the Company’s policy of compiling required payor specific documentation prior to billing for its services rendered. As of September 30, 2024 and December 31, 2023, the Company’s unbilled accounts receivable was $29.9 million and $68.4 million, respectively.

(3) Acquisitions

The Company’s acquisitions are accounted for using the acquisition method pursuant to the requirements of FASB ASC Topic 805, Business Combinations, and are included in the Company’s consolidated financial statements since the respective acquisition date.

The Company did not complete any acquisitions during the nine months ended September 30, 2024. During the nine months ended September 30, 2023, the Company acquired 100% of the equity interests of three providers of home medical equipment ("HME") and acquired certain assets of the home medical equipment businesses of two providers of HME. The following table summarizes the consideration paid at closing for all acquisitions during the nine months ended September 30, 2023 (in thousands):


Cash	$	18,173
Deferred payments	50
Total	$	18,223

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The Company allocated the consideration paid to the net assets acquired based on their estimated acquisition date fair values. Based upon management’s evaluation, the consideration paid for all acquisitions during the nine months ended September 30, 2023 was allocated as follows during the period (in thousands):


Cash	$	256
Accounts receivable	1,798
Inventory	1,413
Prepaid and other current assets	10
Equipment and other fixed assets	9,008
Operating lease right-of-use assets	5,506
Finance lease right-of-use assets	200
Goodwill	7,297
Accounts payable and accrued expenses	(713)
Other current liabilities	(846)
Operating lease liabilities	(5,506)
Finance lease liabilities	(200)
Net assets acquired	$	18,223

Net revenue and operating income in the period of acquisition since the respective acquisition dates for the acquisitions described above were immaterial for the three and nine months ended September 30, 2023.

(4) Equipment and Other Fixed Assets

Equipment and other fixed assets as of September 30, 2024 and December 31, 2023 are as follows (in thousands):


	September 30, 2024		December 31, 2023
Patient medical equipment	$	815,523	$	791,349
Computers and software	93,014		85,509
Delivery vehicles	33,638		35,021
Other	22,737		20,203
Gross carrying value	964,912		932,082
Less accumulated depreciation	(489,990)		(436,981)
Equipment and other fixed assets, net	$	474,922	$	495,101

For the three months ended September 30, 2024 and 2023, the Company recognized depreciation expense of $85.2 million and $90.3 million, respectively. For the nine months ended September 30, 2024 and 2023, the Company recognized depreciation expense of $258.1 million and $263.4 million, respectively.

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(5) Goodwill and Identifiable Intangible Assets

Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The change in the carrying amount of goodwill for the nine months ended September 30, 2024 was as follows (in thousands):


	Gross carrying amount
Balance at December 31, 2023	$	2,724,958
Goodwill impairment	(13,078)
Write off from sale of assets	(4,598)
Balance at September 30, 2024	$	2,707,282

Management is required to perform an assessment of the recoverability of goodwill on an annual basis and upon the identification of a triggering event. Triggering events potentially warranting an interim goodwill impairment assessment include, among other factors, declines in historical or projected revenue, operating results or cash flows, and sustained decreases in the Company’s stock price or market capitalization. While management cannot predict if or when future goodwill impairments may occur, a non-cash goodwill impairment charge could have a material adverse effect on the Company’s operating results, net assets and the Company’s cost of, or access to, capital. The Company did not identify any triggering events indicating a possible impairment of goodwill at September 30, 2024.

During the nine months ended September 30, 2023, the Company experienced a decline in its market capitalization as a result of a sustained decrease in the Company’s stock price and also revised its financial projections. The Company considered these items to represent a triggering event and performed a goodwill impairment test as of September 30, 2023. Based on the results of the test performed as of that date, it was concluded that the estimated fair value of the Company’s reporting unit was less than its carrying value, as such, the Company recognized a non-cash goodwill impairment charge of $511.9 million during the three and nine months ended September 30, 2023.

The non-cash goodwill impairment charges included in the table above, includes $6.6 million and $6.5 million recognized during the three months ended March 31, 2024 and June 30, 2024, respectively, related to the disposition of certain immaterial custom rehab technology assets, which closed in the third quarter of 2024. The Company recognized an immaterial loss as a result of this transaction.

Identifiable intangible assets that are separable and have determinable useful lives are valued separately and amortized over the period which reflects the pattern in which the economic benefits of the assets are expected to be consumed. Identifiable intangible assets consisted of the following at September 30, 2024 and December 31, 2023 (in thousands):


	September 30, 2024
			Weighted-Average Remaining Life (Years)
Tradenames, net of accumulated amortization of $47,927	$	64,873	6.0
Payor contracts, net of accumulated amortization of $34,366	47,634		5.8
Developed technology, net of accumulated amortization of $5,355	945		0.8
Identifiable intangible assets, net	$	113,452

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	December 31, 2023
			Weighted-Average Remaining Life (Years)
Tradenames, net of accumulated amortization of $38,314	$	74,486	6.6
Payor contracts, net of accumulated amortization of $28,216	53,784		6.6
Developed technology, net of accumulated amortization of $4,410	1,890		1.5
Identifiable intangible assets, net	$	130,160

Amortization expense related to identifiable intangible assets, which is included in depreciation and amortization, excluding patient equipment depreciation, in the accompanying statements of operations was $5.6 million and $16.7 million for the three and nine months ended September 30, 2024, respectively, and was $7.0 million and $27.0 million for the three and nine months ended September 30, 2023, respectively.

Future amortization expense related to identifiable intangible assets is estimated to be as follows (in thousands):


Twelve months ending September 30,
2025	$	21,828
2026	19,618
2027	18,190
2028	17,936
2029	17,936
Thereafter	17,944
Total	$	113,452

The Company did not recognize any impairment charges related to identifiable intangible assets during the nine months ended September 30, 2024 and 2023.

(6) Fair Value of Assets and Liabilities

FASB ASC Topic 820, Fair Value Measurements and Disclosures ("ASC 820"), creates a single definition of fair value, establishes a framework for measuring fair value in U.S. GAAP and expands disclosures about fair value measurements. Assets and liabilities adjusted to fair value in the balance sheet are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Level inputs, as defined by ASC 820, are as follows:


Level input						Input Definition
Level 1						Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
Level 2						Inputs, other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date.
Level 3						Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.

The following table presents the valuation of the Company’s financial assets and liabilities as of September 30, 2024 and December 31, 2023 measured at fair value on a recurring basis. The fair value estimates presented herein are based on

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information available to management as of September 30, 2024 and December 31, 2023. These estimates are not necessarily indicative of the amounts the Company could ultimately realize.


(in thousands)	Level 1		Level 2		Level 3
September 30, 2024
Assets
Interest rate swap agreements-short term	$	—	$	2,115	$	—
Interest rate swap agreements-long term	—		71		—
Total assets measured at fair value	$	—	$	2,186	$	—

Liabilities
Warrant liability	—		—		2,221
Total liabilities measured at fair value	$	—	$	—	$	2,221


(in thousands)	Level 1		Level 2		Level 3
December 31, 2023
Assets
Interest rate swap agreements-short term	$	—	$	4,482	$	—
Interest rate swap agreements-long term	—		986		—
Total assets measured at fair value	$	—	$	5,468	$	—

Liabilities
Acquisition-related contingent consideration-short term	$	—	$	—	$	6,850
Warrant liability	—		—		4,021
Total liabilities measured at fair value	$	—	$	—	$	10,871

Interest Rate Swaps

The Company uses interest rate swap agreements to manage interest rate risk by converting a portion of its variable rate borrowings to a fixed rate and recognizes these derivative instruments as either assets or liabilities in the accompanying consolidated balance sheets at fair value. The valuation of these derivative instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair value of the Company’s interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash payments receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. To comply with the provisions of FASB ASC Topic 820, Fair Value Measurement, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with the Company’s derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and the respective counterparties. The Company has determined that the significance of the impact of the credit valuation adjustments made to its derivative contracts, which determination was based on the fair value of each individual contract, was not significant to the overall valuation. As a result, all of the Company’s derivatives held as of September 30, 2024 and December 31, 2023 were classified as Level 2 of the fair value hierarchy. See Note 7, Derivative Instruments and Hedging Activities, for additional information regarding the Company’s derivative instruments.

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Notes to Interim Consolidated Financial Statements (Unaudited) (Continued)

Acquisition-Related Contingent Consideration

The Company estimates the fair value of acquisition-related contingent consideration liabilities by applying the income approach using a probability-weighted discounted cash flow model. This fair value measurement is based on significant inputs not observed in the market and thus represents a Level 3 measurement. Level 3 instruments are valued based on unobservable inputs that are supported by little or no market activity and reflect the Company’s own assumptions in measuring fair value. Each period, the Company evaluates the fair value of acquisition-related contingent consideration obligations and records any changes in the fair value of such liabilities in other income/loss in the Company’s consolidated statements of operations. At December 31, 2023, contingent consideration liabilities of $6.9 million was included in other current liabilities in the accompanying consolidated balance sheets. There were no contingent consideration liabilities as of September 30, 2024. A reconciliation of the Company’s contingent consideration liabilities related to acquisitions for the nine months ended September 30, 2024 and 2023 is as follows (in thousands):


Nine Months Ended September 30, 2024	Beginning Balance		Payments		Change in Fair Value		Ending Balance
Contingent consideration - Level 3 liabilities	$	6,850	$	(6,850)	$	—	$	—
Nine Months Ended September 30, 2023
Contingent consideration - Level 3 liabilities	$	7,500	$	—	$	350	$	7,850

Warrant Liability

The warrant liability represents the estimated fair value of the Company’s outstanding private warrants. The fair value of the private warrants was estimated using the Black-Scholes option pricing model. See Note 10, Stockholders' Equity, for additional discussion of the warrant liability and the material assumptions leveraged for the pricing model.

Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis

During the nine months ended September 30, 2024 and 2023, other than the non-cash goodwill impairment charge discussed in Note 5, Goodwill and Identifiable Intangible Assets, there were no fair value measurements on a non-recurring basis for the Company’s non-financial assets.

(7) Derivative Instruments and Hedging Activities

The Company records all derivatives on its consolidated balance sheet at fair value. As of September 30, 2024, the Company had outstanding interest rate derivatives with third parties in which the Company pays a fixed interest rate and receives a rate equal to the one-month Secured Overnight Financing Rate ("Term SOFR"). The notional amount associated with the Company's interest rate swap agreements that were outstanding as of September 30, 2024 was $250 million and have a maturity date in January 2026. The Company has designated its swaps as effective cash flow hedges of interest rate risk. Accordingly, changes in the fair value of the interest rate swaps are recognized as a component of accumulated other comprehensive income within stockholders’ equity and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings.

The table below presents the fair value of the Company’s derivatives related to its interest rate swap agreements, which are designated as hedging instruments, as well as their classification in the consolidated balance sheets at September 30, 2024 and December 31, 2023 (in thousands):


	September 30, 2024		December 31, 2023
Balance Sheet Location	Asset
Prepaid and other current assets	$	2,115	$	4,482
Other assets	71		986
Total	$	2,186	$	5,468

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During the three months ended September 30, 2024 and 2023, as a result of the effect of cash flow hedge accounting, the Company recognized a loss, net of tax, of $3.2 million, and a gain, net of tax, of $0.5 million, respectively, in other comprehensive income. In addition, during the three months ended September 30, 2023, $0.4 million was reclassified from other comprehensive income and recognized as a reduction to interest expense, net, in the accompanying consolidated statements of operations. There was no such reclassification during the three months ended September 30, 2024. During the nine months ended September 30, 2024 and 2023, as a result of the effect of cash flow hedge accounting, the Company recognized a loss, net of tax, of $2.4 million, and a gain, net of tax, of $1.1 million, respectively, in other comprehensive income. In addition, during the nine months ended September 30, 2024 and 2023, $0.4 million and $1.4 million, respectively, was reclassified from other comprehensive income and recognized as a reduction to interest expense, net, in the accompanying consolidated statements of operations.

(8) Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of September 30, 2024 and December 31, 2023 consisted of the following (in thousands):


	September 30, 2024		December 31, 2023
Accounts payable	$	266,476	$	211,504
Employee-related accruals	58,606		47,462
Accrued interest	9,990		29,327
Litigation reserves	3,935		57,340
Other	91,364		46,361
Total	$	430,371	$	391,994

As previously disclosed, in February 2024, the Company learned that a cyber security threat actor had gained access to some of the information technology systems of Change Healthcare, a subsidiary of UnitedHealth Group, with which one of the Company’s third-party software providers interfaces in connection with the Company’s claims processing activity. UnitedHealth Group isolated the impacted systems upon learning of this threat and Change Healthcare suspended its claims processing activity with the Company’s software provider. The Company participated in the Optum Temporary Funding Assistance Program which was designed to provide short-term cash flow relief to providers impacted by the disruption in Change Healthcare’s services. As of September 30, 2024, the Company received $40.7 million under this program which is included in the Other category in the table above. The Company repaid the $40.7 million in October 2024. The Company has not incurred any fees, interest or other associated costs for participating in the program.

(9) Debt

The following is a summary of long term-debt as of September 30, 2024 and December 31, 2023 (in thousands):


	September 30, 2024		December 31, 2023
Term loan	$	600,000	$	720,000
Senior unsecured notes	1,450,000		1,450,000
Unamortized deferred financing fees	(20,106)		(22,018)
	2,029,894		2,147,982
Current portion	(16,250)		(53,368)
Long-term portion	$	2,013,644	$	2,094,614

On September 13, 2024, the Company entered into an amendment to its then existing credit agreement (as amended, the “2024 Credit Agreement”). Prior to the amendment, the outstanding borrowings under the Company's then existing term loan were $650 million. In connection with the amendment, the outstanding borrowings of certain existing lenders totaling $178.5 million were repaid in full, and such amount was borrowed from the remaining existing lenders. The 2024 Credit

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Agreement includes a $650 million term loan (the "2024 Term Loan"), and $300 million in revolving credit commitments (the "2024 Revolver", and together with the 2024 Term Loan, the "2024 Credit Facility") with a $55 million letter of credit sublimit. The 2024 Credit Facility matures in September 2029. However, if the 6.125% Senior Notes (as defined below) have not been refinanced (to extend the maturity date to a date that is later than December 13, 2029) or repaid in full, on or prior to December 31, 2027, then the 2024 Credit Facility will mature on May 1, 2028; and, if the 4.625% Senior Notes (as defined below) have not been refinanced (to extend the maturity date to a date that is later than December 13, 2029) or repaid in full, on or prior to December 31, 2028, then the 2024 Credit Facility will mature on May 1, 2029. At the option of the Company, amounts borrowed under the 2024 Credit Facility bear interest at variable rates based upon either the Base Rate (as defined in the 2024 Credit Agreement), payable quarterly, or Term SOFR (as defined in the 2024 Credit Agreement), payable monthly or every three months depending on the interest period selected. Interest periods for Term SOFR loans are available for one, three, or six months at the option of the Company. Base Rate loans accrue interest at a per annum rate equal to the sum of (a) the Base Rate determined on each day (subject to a zero percent floor), plus an applicable margin ranging from 0.50% to 2.25% per annum based on the Company's Consolidated Senior Secured Leverage Ratio (as defined in the 2024 Credit Agreement). Term SOFR loans accrue interest at a per annum rate equal to the sum of (a) Term SOFR for the applicable interest period (subject to a zero percent floor), plus (b) an applicable margin ranging from 1.50% to 3.25% per annum based on the Company's Consolidated Senior Secured Leverage Ratio. The 2024 Revolver carries a commitment fee during the term of the 2024 Credit Agreement ranging from 0.25% to 0.50% per annum of the actual daily undrawn portion of the 2024 Revolver depending upon the Company's Consolidated Senior Secured Leverage Ratio. In connection with the 2024 Credit Agreement, the Company paid financing costs of $6.4 million. Further, in connection with executing the 2024 Credit Agreement, the Company recognized a loss on debt extinguishment of $2.3 million consisting of lender fees and the write off of unamortized deferred financing costs related to the Company’s then existing credit agreement, which is included in Loss on extinguishment of debt in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2024.

Under the 2024 Credit Agreement, the Company is subject to a number of restrictive covenants that, among other things, impose operating and financial restrictions on the Company. Financial covenants include a Consolidated Total Leverage Ratio and a Consolidated Interest Coverage Ratio, both as defined in the 2024 Credit Agreement. The 2024 Credit Agreement also contains certain customary events of default, including, among other things, failure to make payments when due thereunder, failure to observe or perform certain covenants, cross-defaults, bankruptcy and insolvency-related events, and non-compliance with healthcare laws. The Company was in compliance with the applicable covenants in the 2024 Credit Agreement as of September 30, 2024.

Any borrowing under the 2024 Credit Agreement may be repaid, in whole or in part, at any time and from time to time without premium or penalty, other than customary breakage costs, and any amounts repaid under the 2024 Revolver may be reborrowed. Mandatory prepayments are required under the 2024 Revolver when borrowings and letter of credit usage exceed the total commitments for revolving credit loans. Mandatory prepayments are also required in connection with certain dispositions of assets and receipt of certain insurance proceeds or condemnation awards to the extent proceeds thereof are not reinvested, and unpermitted debt transactions.

Term Loan

As of September 30, 2024, the outstanding borrowings under the 2024 Term Loan requires quarterly principal repayments of $4.1 million through September 30, 2026, increasing to $8.1 million from December 31, 2026 through June 30, 2029, and the remaining unpaid principal balance is due in September 2029. In September 2024, the Company made a voluntary repayment on the 2024 Term Loan of $50.0 million. At September 30, 2024, there was $600.0 million outstanding under the 2024 Term Loan. The per annum interest rate under the 2024 Term Loan was 6.60% at September 30, 2024.

Revolving Credit Facility

The Company had no borrowings under the 2024 Revolver. At September 30, 2024, there was $22.4 million outstanding under letters of credit. Borrowings under the 2024 Revolver may be used for working capital and other general corporate purposes, including for capital expenditures and acquisitions permitted under the 2024 Credit Agreement. At September 30, 2024, based on the financial debt covenants under the 2024 Credit Agreement, the maximum amount the Company could borrow under the 2024 Revolver and remain in compliance with the financial debt covenants under the agreement was $277.6 million.

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Senior Unsecured Notes

In August 2021, the Company issued $600.0 million aggregate principal amount of 5.125% senior unsecured notes (the “5.125% Senior Notes”). The 5.125% Senior Notes will mature on March 1, 2030. Interest on the 5.125% Senior Notes is payable on March 1st and September 1st of each year. The 5.125% Senior Notes will be redeemable at AdaptHealth’s option, in whole or in part, at any time on or after March 1, 2025, and the redemption price for the 5.125% Senior Notes if redeemed during the 12 months beginning (i) March 1, 2025 is 102.563%, (ii) March 1, 2026 is 101.281%, (iii) March 1, 2027 and thereafter is 100.000%, in each case together with accrued and unpaid interest. AdaptHealth may also redeem some or all of the 5.125% Senior Notes before March 1, 2025 at a redemption price of 100% of the principal amount of the 5.125% Senior Notes, plus a “make-whole” premium, together with accrued and unpaid interest. In addition, AdaptHealth may redeem up to 40% of the original aggregate principal amount of the 5.125% Senior Notes before March 1, 2025 with the proceeds from certain equity offerings at a redemption price equal to 105.125% of the principal amount of the 5.125% Senior Notes, together with accrued and unpaid interest. Furthermore, AdaptHealth may be required to make an offer to purchase the 5.125% Senior Notes upon the sale of certain assets or upon specific kinds of changes of control.

In January 2021, the Company issued $500.0 million aggregate principal amount of 4.625% senior unsecured notes (the “4.625% Senior Notes”). The 4.625% Senior Notes will mature on August 1, 2029. Interest on the 4.625% Senior Notes is payable on February 1st and August 1st of each year. The 4.625% Senior Notes will be redeemable at AdaptHealth’s option, in whole or in part, at any time on or after February 1, 2024, and the redemption price for the 4.625% Senior Notes if redeemed during the 12 months beginning (i) February 1, 2024 is 102.313%, (ii) February 1, 2025 is 101.156%, and (iii) February 1, 2026 and thereafter is 100.000% in each case together with accrued and unpaid interest. AdaptHealth may also redeem some or all of the 4.625% Senior Notes before February 1, 2024 at a redemption price of 100% of the principal amount of the 4.625% Senior Notes, plus a “make-whole” premium, together with accrued and unpaid interest. In addition, AdaptHealth may redeem up to 40% of the original aggregate principal amount of the 4.625% Senior Notes before February 1, 2024 with the proceeds from certain equity offerings at a redemption price equal to 104.625% of the principal amount of the 4.625% Senior Notes, together with accrued and unpaid interest. Furthermore, AdaptHealth may be required to make an offer to purchase the 4.625% Senior Notes upon the sale of certain assets or upon specific kinds of changes of control.

In July 2020, the Company issued $350.0 million aggregate principal amount of 6.125% senior unsecured notes (the “6.125% Senior Notes”). The 6.125% Senior Notes will mature on August 1, 2028. Interest on the 6.125% Senior Notes is payable on February 1st and August 1st of each year. The 6.125% Senior Notes will be redeemable at AdaptHealth’s option, in whole or in part, at any time on or after August 1, 2023, and the redemption price for the 6.125% Senior Notes if redeemed during the 12 months beginning (i) August 1, 2023 is 103.063%, (ii) August 1, 2024 is 102.042%, (iii) August 1, 2025 is 101.021% and (iv) August 1, 2026 and thereafter is 100.000%, in each case together with accrued and unpaid interest. AdaptHealth may also redeem some or all of the 6.125% Senior Notes before August 1, 2023 at a redemption price of 100% of the principal amount of the 6.125% Senior Notes, plus a “make-whole” premium, together with accrued and unpaid interest. In addition, AdaptHealth may redeem up to 40% of the original aggregate principal amount of the 6.125% Senior Notes before August 1, 2023 with the proceeds from certain equity offerings at a redemption price equal to 106.125% of the principal amount of the 6.125% Senior Notes, together with accrued and unpaid interest. Furthermore, AdaptHealth may be required to make an offer to purchase the 6.125% Senior Notes upon the sale of certain assets or upon specific kinds of changes of control.

(10) Stockholders' Equity

Under the Company's Third Amended and Restated Certificate of Incorporation, there are 300,000,000 shares of authorized Common Stock and 5,000,000 shares of authorized Preferred Stock. Holders of Common Stock are entitled to one vote for each share. The shares of Preferred Stock shall be issued with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors.

Treasury Stock

In May 2022, the Company’s board of directors authorized a share repurchase program for up to $200.0 million of the Company’s Common Stock, which expired on December 31, 2023 (the "Share Repurchase Program"). The timing and actual number of shares repurchased depended upon market conditions and other factors. Shares of the Company’s Common Stock were repurchased from time to time on the open market through privately negotiated transactions or otherwise. During the nine months ended September 30, 2023, the Company purchased 631,953 shares of the Company’s Common Stock for

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$9.2 million under the Share Repurchase Program, which is reflected in Treasury Stock in the accompanying consolidated statements of stockholders’ equity. During the three months ended September 30, 2024, as discussed in Note 14, Commitments and Contingencies, the Company issued 1 million shares from its Treasury Stock in connection with a litigation settlement.

Warrants

As of September 30, 2024, the Company had 3,871,557 warrants outstanding, which have an expiration date of November 8, 2024. Each warrant is exercisable into one share of Common Stock at a price of $11.50 per share. The exercise price and number of shares of Common Stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a share dividend, or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for the issuance of Common Stock at a price below its exercise price. There were no warrants exercised during the nine months ended September 30, 2024 and 2023.

The Company classifies its warrants as a liability in its consolidated balance sheets because of certain terms included in the corresponding warrant agreement. The estimated fair value of the warrants is recorded as a liability, with such fair value reclassified to stockholders’ equity upon the exercise of such warrants. Prior to exercise, the change in the estimated fair value of such warrants each period is recognized as a non-cash charge or gain in the Company’s consolidated statements of operations.

A reconciliation of the changes in the warrant liability during the nine months ended September 30, 2024 and 2023 was as follows (in thousands):


Estimated fair value of warrant liability at December 31, 2023	$	4,021
Change in estimated fair value of the warrant liability	(1,800)
Estimated fair value of warrant liability at September 30, 2024	$	2,221

Estimated fair value of warrant liability at December 31, 2022	$	38,503
Change in estimated fair value of the warrant liability	(31,886)
Estimated fair value of warrant liability at September 30, 2023	$	6,617

The warrant liability is classified as a current liability as of September 30, 2024 and December 31, 2023 in the accompanying consolidated balance sheets since the expiration date of the warrants is less than one year as of such dates.

Equity-based Compensation

In connection with the Company’s 2019 Stock Incentive Plan (the "2019 Plan"), the Company provides equity-based compensation to attract and retain employees while also aligning employees’ interest with the interests of its stockholders. The 2019 Plan permits the grant of various equity-based awards to selected employees and non-employee directors. On June 20, 2024, the stockholders of the Company approved an amendment and restatement of the 2019 Plan to increase the number of shares of Common Stock of the Company reserved under the 2019 Plan by 8,350,000 shares, to permit the grant of up to 18,350,000 shares of Common Stock, subject to certain adjustments and limitations. At September 30, 2024, 7,206,885 shares of the Company’s Common Stock were available for issuance under the 2019 Plan.

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Notes to Interim Consolidated Financial Statements (Unaudited) (Continued)

Stock Options

There were no stock options granted during the nine months ended September 30, 2024 and 2023. The following table provides the activity regarding the Company’s outstanding stock options during the nine months ended September 30, 2024 that were granted in connection with the 2019 Plan (in thousands, except per share data):


	Number of Options	Weighted-Average Grant Date Fair Value per Share		Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Term
Outstanding, December 31, 2023	2,219	$	3.75	$	19.36	5.1 Years
Expired	(735)	$	4.58	$	23.38
Outstanding, September 30, 2024	1,484	$	3.34	$	17.38	0.9 Years

The following table provides the activity for all outstanding stock options during the nine months ended September 30, 2024 (in thousands, except per share data):


	Number of Options	Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Term
Outstanding, December 31, 2023	3,409	$	14.90	4.9 Years
Exercised	(245)	$	3.97
Expired	(735)	$	23.38
Outstanding, September 30, 2024	2,429	$	13.43	2.3 Years

During the nine months ended September 30, 2024 and 2023, 207,002 and 200,000 stock options were exercised resulting in $0.7 million and $0.5 million of cash proceeds received by the Company and the issuance of 207,002 and 200,000 shares of the Company’s Common Stock, respectively. During the nine months ended September 30, 2024 and 2023, 38,014 and 1,341,770 stock options were exercised on a cashless basis resulting in the issuance of 13,509 and 228,466 shares of the Company's Common Stock, respectively.

Restricted Stock

During the nine months ended September 30, 2024, the Company granted the following shares of restricted stock and restricted stock units:

•1,881,690 shares of restricted stock to various employees which vest ratably over the two or three-year periods following the vesting commencement dates, subject to the employees’ continuous employment through the applicable vesting dates. The grant-date fair value of these awards was $16.7 million

•52,326 shares of restricted stock to an employee which vested on the two-month anniversary following the applicable vesting commencement dates. The grant-date fair value of these awards was $0.5 million

•122,663 shares of restricted stock to the Company's non-employee directors which vest approximately one year following the grant date. The grant-date fair value of these awards was $1.2 million.

•1,047,291 shares of performance-vested restricted stock units ("Performance RSUs") to certain employees of the Company which will vest on the three-year period following the vesting commencement dates subject to the achievement of specified goals relative to the Company’s three-year relative total shareholder return ("Relative TSR") performance versus the Company’s defined peer group (the "Peer Group"), which is considered a market

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condition, and is also subject to the employees’ continuous employment through the vesting dates. The grant-date fair value of these awards, using a Monte-Carlo simulation analysis, was $19.2 million. The payout of shares on the vesting dates are as follows based on the Company’s Relative TSR versus the Peer Group (for performance between the stated goals noted below, straight-line interpolation will be applied):

•Less than 25th Percentile – No payout

•Greater than or equal to 25th Percentile – 50% of Performance RSUs

•Equal to 50th Percentile – 100% of Performance RSUs

•Greater than or equal to 75th Percentile – 200% of Performance RSUs

Activity related to the Company’s non-vested restricted stock grants for the nine months ended September 30, 2024 is presented below (in thousands, except per share data):


	Number of Shares of Restricted Stock	Weighted-Average Grant Date Fair Value per Share
Non-vested balance, December 31, 2023	2,068	$	19.16
Granted	3,104	$	12.13
Vested	(754)	$	37.25
Forfeited	(1,023)	$	15.73
Non-vested balance, September 30, 2024	3,395	$	14.02

Equity-Based Compensation Expense

The Company recognized equity-based compensation expense of $0.9 million during the three months ended September 30, 2024, of which $0.4 million and $0.5 million is included in general and administrative expenses and cost of net revenue, respectively, in the accompanying consolidated statements of operations. The Company recognized equity-based compensation expense of $4.5 million during the three months ended September 30, 2023, of which $3.5 million and $1.0 million is included in general and administrative expenses and cost of net revenue, respectively, in the accompanying consolidated statements of operations.

The Company recognized equity-based compensation expense of $10.6 million during the nine months ended September 30, 2024, of which $8.4 million and $2.2 million is included in general and administrative expenses and cost of net revenue, respectively, in the accompanying consolidated statements of operations. The Company recognized equity-based compensation expense of $17.3 million during the nine months ended September 30, 2023, of which $15.8 million and $1.5 million is included in general and administrative expenses and cost of net revenue, respectively, in the accompanying consolidated statements of operations.

At September 30, 2024, there was $31.1 million of unrecognized compensation expense related to equity-based compensation awards, which is expected to be recognized over a weighted-average period of 2.2 years.

As previously disclosed, by mutual agreement with the Company, the Company's former President resigned from all positions held with the Company on August 31, 2024 and the parties agreed that he will serve as a non-executive member of the board of directors until December 31, 2024. In connection with his termination of employment on August 31, 2024, 311,018 restricted stock units subject to time-based vesting conditions and 391,408 restricted stock units subject to performance-based vesting conditions that were unvested at the time of his resignation were forfeited. As a result of these forfeitures, during the three and nine months ended September 30, 2024, the Company reversed $3.3 million of previously recognized equity-based compensation expense, which was recognized as a reduction to general and administration expenses in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2024.

As previously disclosed, by mutual agreement with the Company, effective June 30, 2023, Stephen Griggs resigned as Chief Executive Officer of the Company. In connection with Mr. Griggs’ separation, the Company accelerated the vesting of 78,130 unvested stock options and 143,739 unvested shares of restricted stock which were subject to time-based vesting

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conditions only. In addition, the Company modified the vesting conditions for 159,555 shares of Performance RSU's to allow for vesting based on the achievement of the applicable Relative TSR, but no longer requires continuous employment through the applicable vesting date. In connection with the accelerated vesting and modification, the Company recognized $4.0 million of equity-based compensation expense, which is included in general and administrative expenses in the accompanying consolidated statements of operations for the nine months ended September 30, 2023.

(11) Earnings (Loss) Per Share

Earnings (Loss) Per Share ("EPS") is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period on a basic and diluted basis. The Company computes diluted net income (loss) per share using the more dilutive of the treasury stock method and the two-class method after giving effect to all potential dilutive common stock.

The Company’s potentially dilutive securities include potential common shares related to outstanding warrants, unvested restricted stock, outstanding stock options and outstanding preferred stock. See Note 10, Stockholders' Equity, for additional discussion of these potential dilutive securities.

Diluted net income (loss) per share considers the impact of potentially dilutive securities except when the potential common shares have an antidilutive effect. The Company’s outstanding preferred stock are considered participating securities, thus requiring the two-class method of computing diluted net income (loss) per share. Computation of diluted net income (loss) per share under the two-class method excludes from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator.

Computations of basic and diluted net income (loss) per share were as follows (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator
Net income (loss) attributable to AdaptHealth Corp.	$	22,859	$	(454,076)	$	40,160	$	(424,392)
Less: Earnings allocated to participating securities (1)	1,933		—		3,415		—
Net income (loss) for basic EPS	$	20,926	$	(454,076)	$	36,745	$	(424,392)
Change in fair value of warrant liability (2)	—		(9,160)		—		(31,886)
Net income (loss) for diluted EPS	$	20,926	$	(463,236)	$	36,745	$	(456,278)

Denominator (1) (2)
Basic weighted-average common shares outstanding	134,303		134,825		133,481		134,549
Add: Warrants (2)	—		157		—		653
Add: Stock options	301		—		245		—
Add: Unvested restricted stock	1,926		—		1,715		—
Diluted weighted-average common shares outstanding	136,530		134,982		135,441		135,202

Basic net income (loss) per share	$	0.16	$	(3.37)	$	0.28	$	(3.15)
Diluted net income (loss) per share	$	0.15	$	(3.43)	$	0.27	$	(3.37)

(1)The Company’s preferred stock are considered participating securities. Computation of EPS under the two-class method excludes from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator.

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(2)For the three and nine months ended September 30, 2023, the impact to earnings from the change in fair value of the Company’s warrant liability is excluded from the numerator, and the corresponding security is included in the denominator, for purposes of computing diluted net loss per share. This adjustment is included as the effect of the numerator and denominator adjustment for this derivative instrument is dilutive as a result of the non-cash gain recognized for the change in fair value of this instrument during these periods. For the three and nine months ended September 30, 2024, this adjustment is excluded from the computation of diluted net income per share under the treasury stock method since its inclusion would have been anti-dilutive.

The table below provides the weighted-average number of potential common shares associated with outstanding securities not included in the Company’s computation of diluted net income (loss) per share for the three and nine months ended September 30, 2024 and 2023 because to do so would be antidilutive (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Preferred Stock	12,406	12,406	12,406	12,406
Warrants	3,872	—	3,872	—
Stock options	2,128	3,420	2,184	3,420
Unvested restricted stock	1,427	2,057	1,638	2,057
Total	19,833	17,883	20,100	17,883

(12) Leases

The Company leases its operating locations and office facilities under noncancelable lease agreements which expire at various dates through May 2038. Some of these lease agreements include an option to renew at the end of the term. The Company also leases certain office facilities on a month-to-month basis. In some instances, the Company is also required to pay its pro rata share of real estate taxes and utility costs in connection with the premises. Some of the leases contain fixed annual increases of minimum rent.

The Company’s leases frequently allow for lease payments that could vary based on factors such as inflation and the incurrence of contractual charges such as those for common area maintenance or utilities.

Renewal and/or early termination options are common in the lease arrangements, particularly with respect to real estate leases. The Company’s right-of-use ("ROU") assets and lease liabilities generally include periods covered by renewal options and exclude periods covered by early termination options (based on the conclusion that it is reasonably certain that the Company will exercise such renewal options and not exercise such early termination options).

The Company is also party to certain sublease arrangements related to real estate leases, where the Company acts as the lessee and intermediate lessor.

The Company leases certain of its vehicles through finance leases. The finance lease obligations represent the present value of minimum lease payments under the respective agreement, payable monthly at various interest rates.

The following table presents information about lease costs and expenses and sublease income for the three and nine months ended September 30, 2024 and 2023 (in thousands). The amounts below, with the exception of interest on lease liabilities, are included in cost of net revenue in the accompanying consolidated statements of operations for the periods presented. The interest on lease liabilities is included in interest expense, net in the accompanying consolidated statements of operations for the periods presented.

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Notes to Interim Consolidated Financial Statements (Unaudited) (Continued)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Operating lease costs	$	10,791	$	11,114	$	33,521	$	32,186
Finance lease costs:
Amortization of ROU assets	$	3,064	$	1,739	$	7,857	$	4,746
Interest on lease liabilities	$	663	$	—	$	1,721	$	—
Other lease costs and income:
Variable leases costs (1)	$	6,392	$	5,373	$	18,458	$	15,932
Sublease income	$	101	$	358	$	638	$	1,145

(1)Amounts represent variable costs incurred that were not included in the initial measurement of the lease liability such as common area maintenance and utilities costs associated with leased real estate.

The following table provides the weighted average remaining lease terms and weighted average discount rates for the Company’s leases as of September 30, 2024 and December 31, 2023:


	September 30, 2024		December 31, 2023
Weighted average remaining lease term, weighted based on lease liability balances:
Operating leases	5.1 years		5.6 years
Finance leases	3.2 years		3.6 years
Weighted average discount rate, weighted based on remaining balance of lease payments:
Operating leases	4.8	%	4.4	%
Finance leases	6.8	%	6.7	%

The following table provides the undiscounted amount of future cash flows related to the Company’s operating and finance leases, as well as a reconciliation of such undiscounted cash flows to the amounts included in the Company’s lease liabilities as of September 30, 2024 (in thousands):


	Operating Leases		Finance Leases
2024	$	9,150	$	3,726
2025	33,517		14,360
2026	25,954		13,098
2027	17,717		9,431
2028	13,603		2,221
Thereafter	26,096		—
Total future undiscounted lease payments	$	126,037	$	42,836
Less: amount representing interest	(15,626)		(4,431)
Present value of future lease payments (lease liability)	$	110,411	$	38,405

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ADAPTHEALTH CORP. AND SUBSIDIARIES

Notes to Interim Consolidated Financial Statements (Unaudited) (Continued)

The following table provides certain cash flow and supplemental non-cash information related to the Company’s lease liabilities for the nine months ended September 30, 2024 and 2023, respectively (in thousands):


	Nine Months Ended September 30,
Cash paid for amounts included in the measurement of lease liabilities:	2024		2023
Operating cash payments for operating leases	$	31,130	$	32,045
Financing cash payments for finance leases	$	8,261	$	4,558
Lease liabilities arising from obtaining right-of-use assets:
Operating leases	$	24,604	$	8,179
Finance leases	$	15,665	$	19,726

(13) Income Taxes

The Company is subject to U.S. federal, state, and local income taxes. For the three months ended September 30, 2024 and 2023, the Company recorded income tax expense of $8.1 million and an income tax benefit of $34.6 million, respectively. For the nine months ended September 30, 2024 and 2023, the Company recorded income tax expense of $21.9 million and an income tax benefit of $30.9 million, respectively. For the nine months ended September 30, 2024, the Company recognized a $1.0 million income tax benefit, and corresponding increase to net deferred tax assets, related to non-cash goodwill impairment charges totaling $13.1 million. For the three and nine months ended September 30, 2023, the Company recognized a $39.9 million discrete income tax benefit, and corresponding increase to net deferred tax assets, related to a non-cash goodwill impairment charge of $511.9 million. See Note 5, Goodwill and Identifiable Intangible Assets, for additional details.

As of September 30, 2024 and December 31, 2023, the Company had an unrecognized tax benefit of $3.2 million and $6.6 million, respectively.

Tax Receivable Agreement

AdaptHealth Corp. is party to a Tax Receivable Agreement ("TRA") with certain current and former members of AdaptHealth Holdings LLC, a Delaware limited liability company ("AdaptHealth Holdings"). The TRA provides for the payment by AdaptHealth Corp. of 85% of the tax savings, if any, that AdaptHealth Corp. realizes (or is deemed to realize in certain circumstances) as a result of (i) certain tax attributes of the corresponding sellers existing prior to the Business Combination; (ii) certain increases in tax basis resulting from exchanges of New AdaptHealth Units and shares of Class B Common Stock; (iii) imputed interest deemed to be paid by the Company as a result of payments it makes under the TRA; and (iv) certain increases in tax basis resulting from payments the Company makes under the TRA. Under the TRA, the benefits deemed realized by the Company as a result of the increase in tax basis attributable to the AdaptHealth Holdings members generally will be computed by comparing the actual income tax liability of the Company to the amount of such taxes that the Company would have been required to pay had there been no such increase in tax basis.

At September 30, 2024, the Company's liability relating to the TRA was $290.2 million, of which $24.3 million and $265.9 million is included in other current liabilities and other long-term liabilities, respectively, in the accompanying consolidated balance sheets. At December 31, 2023, the Company’s liability relating to the TRA was $291.6 million, of which $1.5 million and $290.1 million is included in other liabilities and other long-term liabilities, respectively, in the accompanying consolidated balance sheets.

(14) Commitments and Contingencies

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Notes to Interim Consolidated Financial Statements (Unaudited) (Continued)

quarterly and adjusts accordingly to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information. At this time, the Company has no material accruals related to lawsuits, claims, investigations and proceedings, except as disclosed below. While there can be no assurance, based on the Company’s evaluation of information currently available, the Company’s management believes any liability that may ultimately result from resolution of such loss contingencies will not have a material adverse effect on the Company’s financial conditions or results of operations. However, the Company’s assessment may be affected by limited information. Accordingly, the Company’s assessment may change in the future based upon availability of new information and further developments in the proceedings of such matters. The results of legal proceedings are inherently uncertain, and material adverse outcomes are possible. Professional legal fees are expensed as they are incurred.

On July 29, 2021, Robert Charles Faille Jr., a purported shareholder of the Company, filed a purported class action complaint against the Company and certain of its current and former officers in the United States District Court for the Eastern District of Pennsylvania for alleged violations of the federal securities laws arising from allegedly false and misleading statements and/or failures to disclose material information regarding changes made to the methodology used to calculate the Company’s organic growth trajectory. On October 14, 2021, the court appointed Delaware County Employees Retirement System and the Bucks County Employees Retirement System as Lead Plaintiffs. On November 22, 2021, Lead Plaintiffs filed a consolidated complaint against the Company and certain of its current and former officers and directors on behalf of shareholders that purchased or otherwise acquired the Company’s stock and options between November 8, 2019 and July 16, 2021 (as to the complaint, the “Consolidated Complaint”; as to the action, the “Consolidated Class Action”). The Consolidated Complaint generally alleged that the defendants violated federal securities laws by making allegedly false and misleading statements and/or failing to disclose material information regarding changes made to the methodology used to calculate the Company’s organic growth trajectory and the Company’s former Co-CEO’s alleged tax fraud arising from certain past private activity. The Consolidated Complaint sought unspecified damages. On January 20, 2022, the defendants filed a motion to dismiss the Consolidated Complaint, which the court denied on June 9, 2022. On June 7, 2023, the court entered an order staying the Consolidated Class Action pending the outcome of a private mediation between the parties.

On February 26, 2024, the defendants entered into a stipulation and agreement of settlement with the Lead Plaintiffs (the “Securities Settlement”). On March 5, 2024, the court granted preliminary approval of the settlement. On July 10, 2024, the court entered a judgment approving the class action settlement. The judgment certified the putative class for settlement purpose, found that the settlement is fair, reasonable, and adequate in all respects, and subject to certain exclusions and limitations, released claims on behalf of the settlement class that were asserted or could have been asserted in the Consolidated Class Action against the defendants. The Company’s portion of the settlement consists of (i) $32.2 million of cash from the Company’s insurance carriers; (ii) $17.8 million of cash from the Company; (iii) 1 million shares of the Company’s Common Stock (the “Settlement Shares”), which had a fair value of $7.3 million recognized at December 31, 2023; and (iv) the implementation of certain corporate governance reforms. All of the aforementioned cash consideration has been paid consistent with the Securities Settlement during the nine months ended September 30, 2024.

During the nine months ended September 30, 2024, prior to the court approval of the class action settlement on July 10, 2024, the Company recognized a pre-tax expense of $2.4 million for the change in fair value of the Settlement Shares, which is included in other loss, net in the accompanying consolidated statements of operations. In July 2024, the Company issued the Settlement Shares from available Treasury Stock. In connection with the issuance, the Company eliminated the outstanding $9.7 million liability through a reduction to Treasury Stock and Additional paid-in capital of $17.7 million and $8.0 million, respectively.

On March 7, 2024, the Company entered into a settlement agreement with its directors and officers liability insurers to resolve a proceeding that the Company filed in Delaware Superior Court concerning coverage in connection with the Consolidated Class Action and the Derivative Action discussed immediately below. The insurance settlement exhausted $35.0 million in D&O coverage limits available to the Company for the policy period from November 8, 2020 to November 8, 2021.

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Notes to Interim Consolidated Financial Statements (Unaudited) (Continued)

corporate assets and unjust enrichment. Finally, the Derivative Complaint alleges that certain of the individual defendants violated Section 14(a) of the Securities Exchange Act by allegedly negligently issuing, causing to be issued, and participating in the issuance of materially misleading statements to stockholders in the Company’s Proxy Statements on Schedule DEF 14A in connection with a Special Meeting of Stockholders, held on March 3, 2021, and the 2021 Annual Meeting of Stockholders, held on July 27, 2021. The Derivative Complaint seeks, among other things, an award of money damages.

On March 4, 2022, the parties to the Derivative Action stipulated to stay the Derivative Action pending final resolution of the Consolidated Class Action. On March 7, 2022, the court so-ordered the parties’ stipulation.

On April 23, 2024, defendants entered into a stipulation and agreement of settlement with the Derivative Plaintiff. In exchange for full releases, the proposed settlement consists of (i) $0.9 million in attorneys’ fees and expenses, which will be funded with cash from the Company; and (ii) the implementation of corporate governance reforms separate from those negotiated in Securities Settlement. For the nine months ended September 30, 2024, the Company recorded a pre-tax expense of $0.9 million associated with the settlement, which is included in other loss, net in the accompanying consolidated statements of operations. As of September 30, 2024, the Company recorded a liability of $0.9 million relating to the settlement; such liability is included in accounts payable and accrued expenses in the accompanying consolidated balance sheets.

On June 25, 2024, the court granted preliminary approval of the settlement, and set the final approval hearing for November 13, 2024. Upon the effectiveness of the proposed settlement, the Company and its directors and officers as well as the other defendants named in the Derivative Complaint will be released from the claims that were asserted or could have been asserted in the Derivative Action, with certain limitations, by class members participating in the settlement. The Company has always maintained, and continues to believe, that it did not engage in any wrongdoing or otherwise commit any violation of federal or state securities laws or other laws. The settlement includes no admission of liability or wrongdoing and is subject to court approval. There can be no assurance that the settlement will be finalized and approved and, even if approved, whether the conditions to settlement will be satisfied, and the actual outcome of this matter may differ materially from the terms of the settlement described herein.

On May 2, 2022, the U.S. Attorney’s Office for the Southern District of New York issued a civil investigative demand to a subsidiary of the Company, pursuant to the False Claims Act, 31 U.S.C. § 3733 ("FCA") surrounding whether the subsidiary submitted false claims in violation of the FCA related to its billing of, and reimbursements from, federal health care programs for ventilators provided to patients from January 1, 2015 to the present. The Company is fully cooperating with the investigation. Given the stage of the investigation, it is not possible to determine whether it will have a material adverse effect on the Company.

On October 24, 2023, Allegheny County Employees’ Retirement System, a purported shareholder of the Company, filed a purported class action complaint against the Company and certain of its current and former officers, and certain underwriters in the United States District Court for the Eastern District of Pennsylvania. On January 23, 2024, the court entered an order appointing Allegheny County Employees' Retirement System, International Union of Operating Engineers, Local No. 793, Members Pension Benefit Trust of Ontario, and City of Tallahassee Pension Plan as Lead Plaintiffs. On May 14, 2024, Lead Plaintiffs filed a consolidated complaint against the Company and certain of its current and former officers and directors, and certain underwriters, on behalf of shareholders that purchased or otherwise acquired the Company’s stock between August 4, 2020 and November 7, 2023 (as to the complaint the “Allegheny County Consolidated Complaint”; as to the action, the “Allegheny County Consolidated Class Action”). The Allegheny County Consolidated Complaint alleges, among other things, that the defendants violated federal securities laws by making allegedly false and misleading statements and/or failing to disclose material information regarding (i) the Company’s billing practices with respect to its diabetes product category, and (ii) the Company’s compliance programs and integration with respect to acquired companies. The Allegheny County Consolidated Complaint seeks unspecified damages. On July 23, 2024, the defendants filed a motion to dismiss the Allegheny County Consolidated Complaint. Plaintiffs filed their opposition brief on October 1, 2024; and defendants’ reply brief is due to be filed on November 15, 2024.

The Company intends to vigorously defend against the allegations contained in the Allegheny County Complaint, but there can be no assurance that the defense will be successful.

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ADAPTHEALTH CORP. AND SUBSIDIARIES

Notes to Interim Consolidated Financial Statements (Unaudited) (Continued)

Derivative Complaint”; as to the action, the “Wu Derivative Action”). The Wu Derivative Complaint alleges, among other things, that the defendants breached their fiduciary duties and violated federal securities laws by making allegedly false and misleading statements and/or failing to disclose material information regarding the Company’s organic growth in its diabetes product category. The Wu Derivative Complaint also alleges claims for unjust enrichment, waste of corporate assets, abuse of control, and gross mismanagement. The Derivative Complaint seeks, among other things, an award of money damages.

On July 25, 2024, the parties to the Wu Derivative Action stipulated to stay the Wu Derivative Action pending final resolution of the Allegheny County Consolidated Class Action. On July 26, 2024, the court so-ordered the parties’ stipulation.

The Company intends to vigorously defend against the allegations contained in the Wu Derivative Complaint, but there can be no assurance that the defense will be successful.

On July 29, 2024, the U.S. Attorney’s Office for the District of South Carolina issued a civil investigative demand to the Company pursuant to the False Claims Act, 31 U.S.C. § 3733 ("FCA") surrounding whether the Company submitted false claims in violation of the FCA related to its billing of, and reimbursements from, federal health care programs for humidifiers that are integrated with CPAP devices and provided to patients from January 1, 2017 to the present.

The Company is fully cooperating with the investigation. Given the stage of the investigation, it is not possible to determine whether it will have a material adverse effect on the Company.

(15) Related Party Transactions

The Company and one of its former executive officers who is a current member of the board of directors and shareholder own an equity interest in a vendor of the Company that provides automated order intake software. The individual’s equity ownership is less than 1%. The expense related to this vendor was $3.8 million and $3.1 million for the three months ended September 30, 2024 and 2023, respectively, and $10.8 million and $8.0 million for the nine months ended September 30, 2024 and 2023, respectively. The Company accounts for this investment under the cost method of accounting based on its level of equity ownership. As of September 30, 2024 and December 31, 2023, the Company had an immaterial outstanding accounts payable balance to this vendor.

A director of the Company serves on the board of directors of a third-party payor that does business with the Company in the normal course of providing services to patients. Net revenue from this third-party payor was approximately 1.0% of the Company’s consolidated net revenue during the three and nine months ended September 30, 2024 and 2023. As of September 30, 2024 and December 31, 2023, the Company had an immaterial outstanding accounts receivable balance from this third-party payor.

A director of the Company is an employee of a beneficial owner of more than 5% of the Company’s Common Stock as of September 30, 2024. This beneficial owner is also a minority shareholder of a vendor that provides medical equipment and supplies to the Company in the normal course of business. Payments to this vendor were $22.5 million and $3.5 million for the three months ended September 30, 2024 and 2023, respectively, and $50.6 million and $24.1 million, for the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024 and December 31, 2023, the Company had an immaterial outstanding accounts payable balance to this vendor.

(16) Subsequent Events

The Company evaluated subsequent events for the period from September 30, 2024 through the date that the Company’s consolidated financial statements were available to be issued. Subsequent to September 30, 2024, the Company realigned its reportable segments as a result of recent organizational changes. Going forward, the Company will report financial results across the following four segments which reflect the way the Company's chief operating decision maker assesses performance and allocates resources: Sleep Health, Respiratory Health, Diabetes Health, and Wellness at Home. The Company will recast all prior periods presented to reflect this change in the December 31, 2024 Annual Report on Form 10-K, including in the notes to the consolidated financial statements.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with AdaptHealth Corp.’s (“AdaptHealth” or the “Company”) consolidated financial statements and the accompanying notes included in this report. All amounts presented are in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), except as noted. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations. Factors that could cause such differences include, but are not limited to, those discussed in Item 1A, “Risk Factors”, in our 2023 Annual Report on Form 10-K filed with the SEC on February 27, 2024. Certain amounts that appear in this section may not sum due to rounding.

AdaptHealth Corp. Overview

AdaptHealth is a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment (“HME”), medical supplies, and related services. The Company focuses primarily on providing (i) sleep therapy equipment, supplies and related services (including CPAP and bi PAP services) to individuals suffering from obstructive sleep apnea (“OSA”), (ii) medical devices and supplies to patients for the treatment of diabetes (including continuous glucose monitors and insulin pumps), (iii) home medical equipment to patients discharged from acute care and other facilities, (iv) oxygen and related chronic therapy services in the home, and (v) other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy and nutritional supply needs. The Company services beneficiaries of Medicare, Medicaid and commercial insurance payors. As of September 30, 2024, AdaptHealth serviced approximately 4.2 million patients annually in all 50 states through its network of approximately 670 locations in 47 states. The Company’s principal executive offices are located at 220 West Germantown Pike, Suite 250, Plymouth Meeting, Pennsylvania 19462.

Impact of Inflation

The cost to manufacture and distribute the equipment and products that AdaptHealth provides to patients is influenced by the cost of materials, labor, and transportation, including fuel costs. Current and future inflationary effects may be driven by, among other things, general inflationary cost increases, supply chain disruptions and governmental stimulus or fiscal policies. Increases in inflation could impact the overall demand for AdaptHealth’s products and services, availability of materials, its costs for labor, equipment and products, shipping, warehousing and other operational overhead and the margins it is able to realize on its products, all of which could have an adverse impact on AdaptHealth’s business, financial position, results of operations and cash flows. Additionally, it is not certain whether AdaptHealth would be able to pass increased costs onto customers to offset inflationary pressures. AdaptHealth has experienced inflationary pressure and higher costs as a result of increased cost of materials, labor and transportation. The increase in the cost of equipment and products is due in part to higher cost of shipping and general inflationary cost increases. Although there have been increases in inflation, AdaptHealth cannot predict whether these trends will continue. AdaptHealth’s mitigation efforts relating to these inflationary pressures include utilizing AdaptHealth’s purchasing power in negotiations with vendors and the increased use of technology to drive operating efficiencies and control costs, such as AdaptHealth’s digital platform for prescriptions, orders and delivery.

Key Components of Operating Results

Net Revenue. Net revenue is recognized for services and related products that AdaptHealth provides to patients for home healthcare equipment, medical supplies to the home and related services. AdaptHealth' s primary product lines are (i) sleep therapy equipment, supplies and related services (including CPAP and bi PAP services) to individuals suffering from OSA, (ii) medical devices and supplies to patients for the treatment of diabetes (including continuous glucose monitors and insulin pumps), (iii) home medical equipment to patients discharged from acute care and other facilities, (iv) oxygen and related chronic therapy services in the home, and (v) other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy and nutritional supply needs. Revenues are recognized either at a point in time for the sale of supplies and disposables, over the service period for equipment rental (including, but not limited to, CPAP machines, hospital beds, wheelchairs and other equipment), net of implicit price concessions for amounts estimated to be received from patients or under reimbursement arrangements with Medicare, Medicaid and other third-party payors, including private insurers, or in the month in which eligible members are entitled to receive healthcare services in connection with at-risk capitation arrangements. Certain trends or uncertainties that may have a material impact on revenue growth and operating results include the Company's ability to obtain new patient starts and to generate referrals from patient referral sources and the ability to meet the increased demand considering inflationary pressures.

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Cost of Net Revenue. Cost of net revenue primarily includes the cost of non-capitalized medical equipment and supplies, distribution expenses, labor costs, facilities and vehicle rental costs, revenue cycle management costs and depreciation for capitalized patient equipment. Distribution expenses represent the cost incurred to coordinate and deliver products and services to the patients. Included in distribution expenses are leasing, maintenance, licensing and fuel costs for the vehicle fleet; salaries, benefits and other costs related to drivers and dispatch personnel; and amounts paid to couriers.

General and Administrative Expenses. General and administrative expenses consist of corporate support costs including information technology, human resources, finance, contracting, legal, compliance, equity-based compensation, and other administrative costs.

Depreciation and Amortization, Excluding Patient Equipment Depreciation. Depreciation expense includes depreciation charges for capital assets other than patient equipment (which is included as part of the cost of net revenue). Amortization expense includes amortization of identifiable intangible assets.

Factors Affecting AdaptHealth’s Operating Results

AdaptHealth’s operating results and financial performance are influenced by certain unique events during the periods discussed herein, including the following:

Goodwill Impairment

AdaptHealth has a significant amount of goodwill on its balance sheet that resulted from the business acquisitions AdaptHealth has made. Goodwill is not amortized, rather, it is assessed for impairment annually and upon the occurrence of a triggering event or change in circumstances indicating a possible impairment. Such triggering events potentially warranting an annual or interim goodwill impairment assessment include, among other factors, declines in historical or projected revenue, operating income or cash flows, and sustained decreases in AdaptHealth's stock price or market capitalization. Such changes in circumstance can include, among others, changes in the legal environment, reimbursement environment, operating performance, and/or future prospects. AdaptHealth performs its annual impairment assessment of goodwill during the fourth quarter of each year. The impairment assessment can be performed on either a quantitative or qualitative basis. AdaptHealth first assesses qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment analysis. If determined necessary, AdaptHealth applies the quantitative impairment test to identify and measure the amount of impairment, if any. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors, such as estimates of a reporting unit's fair value, including the revenue growth rates, discount rate, and control premium used to estimate the reporting unit’s fair value, and judgment about impairment triggering events. As a result, there can be no assurance that the estimates and assumptions made for purposes of the annual or interim goodwill impairment test will prove to be accurate predictions of the future.

Seasonality

AdaptHealth’s business experiences some seasonality. Its patients are generally responsible for a greater percentage of the cost of their treatment or therapy during the early months of the year due to co-insurance, co-payments and deductibles, and therefore may defer treatment and services of certain therapies until meeting their annual deductibles. In addition, changes to employer insurance coverage often go into effect at the beginning of each calendar year which may impact eligibility requirements and delay or defer treatment. Also, net revenue generated by the Company’s diabetes product line is typically higher in the fourth quarter compared to the earlier part of the year due to the timing of when patients meet their annual deductibles and their associated reordering patterns. These factors may lead to lower net revenue and cash flow in the early part of the year versus the latter half of the year. Additionally, the increased incidence of respiratory infections during the winter season may result in initiation of additional respiratory services such as oxygen therapy for certain patient populations. AdaptHealth’s quarterly operating results may fluctuate significantly in the future depending on these and other factors.

Key Business Metrics

AdaptHealth focuses on Net revenue, EBITDA, Adjusted EBITDA and free cash flow as it reviews its performance. Refer to EBITDA, Adjusted EBITDA and free cash flow included in the Non-GAAP measures section below.

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Total net revenue is comprised of net sales revenue, net revenue from fixed monthly equipment reimbursements, and net revenue from capitated revenue arrangements. Net sales revenue consists of revenue recognized at a point in time for the sale of supplies and disposables. Net revenue from fixed monthly equipment reimbursements consists of revenue recognized over the service period for equipment (including, but not limited to, CPAP machines, oxygen concentrators, ventilators, hospital beds, wheelchairs and other equipment). Net revenue from capitated revenue arrangements consists of revenue recognized in the month in which eligible members are entitled to receive healthcare services in connection with at-risk capitation arrangements.


	Three Months Ended
	September 30, 2024				September 30, 2023
Net Revenue (dollars in thousands)	Dollars		Revenue Percentage		Dollars		Revenue Percentage
	(Unaudited)
Net sales revenue:
Sleep	$	237,537	29.5	%	$	227,005	28.2	%
Diabetes	137,099		17.0	%	157,328		19.6	%
Supplies to the home	43,534		5.4	%	48,349		6.0	%
Respiratory	8,148		1.0	%	8,164		1.0	%
HME	24,331		3.0	%	27,095		3.4	%
Other	60,044		7.5	%	64,184		8.0	%
Total net sales revenue	$	510,693	63.4	%	$	532,125	66.2	%

Net revenue from fixed monthly equipment reimbursements:
Sleep	$	81,530	10.1	%	$	88,387	11.0	%
Diabetes	2,438		0.3	%	2,609		0.3	%
Respiratory	140,930		17.5	%	142,919		17.8	%
HME	24,551		3.1	%	25,087		3.1	%
Other	12,866		1.5	%	12,904		1.6	%
Total net revenue from fixed monthly equipment reimbursements	$	262,315	32.5	%	$	271,906	33.8	%

Net revenue from capitated revenue arrangements:
Sleep	$	7,380	0.9	%	$	—	—	%
Diabetes	1,535		0.2	%	—		—	%
Supplies to the home	3,246		0.4	%	—		—	%
Respiratory	14,939		1.9	%	—		—	%
HME	4,115		0.5	%	—		—	%
Other	1,635		0.2	%	—		—	%
Total net revenue from capitated revenue arrangements	$	32,850	4.1	%	$	—	—	%

Total net revenue:
Sleep	$	326,447	40.5	%	$	315,392	39.2	%
Diabetes	141,072		17.5	%	159,937		19.9	%
Supplies to the home	46,780		5.8	%	48,349		6.0	%
Respiratory	164,017		20.4	%	151,083		18.8	%
HME	52,997		6.6	%	52,182		6.5	%
Other	74,545		9.2	%	77,088		9.6	%
Total net revenue	$	805,858	100.0	%	$	804,031	100.0	%

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	Nine Months Ended
	September 30, 2024				September 30, 2023
Net Revenue (dollars in thousands)	Dollars		Revenue Percentage		Dollars		Revenue Percentage
	(Unaudited)
Net sales revenue:
Sleep	$	696,424	29.0	%	$	656,311	28.0	%
Diabetes	431,339		17.9	%	464,893		19.9	%
Supplies to the home	132,447		5.5	%	143,227		6.1	%
Respiratory	23,723		1.0	%	24,284		1.0	%
HME	75,916		3.2	%	82,895		3.5	%
Other	173,389		7.2	%	174,403		7.5	%
Total net sales revenue	$	1,533,238	63.8	%	$	1,546,013	66.0	%

Net revenue from fixed monthly equipment reimbursements:
Sleep	$	244,273	10.2	%	$	256,092	10.9	%
Diabetes	7,099		0.3	%	10,326		0.5	%
Respiratory	417,061		17.3	%	423,531		18.1	%
HME	70,472		2.9	%	71,402		3.0	%
Other	36,074		1.5	%	34,579		1.5	%
Total net revenue from fixed monthly equipment reimbursements	$	774,979	32.2	%	$	795,930	34.0	%

Net revenue from capitated revenue arrangements:
Sleep	$	21,408	0.9	%	$	—	—	%
Diabetes	4,679		0.2	%	—		—	%
Supplies to the home	9,536		0.4	%	—		—	%
Respiratory	44,521		1.9	%	—		—	%
HME	11,325		0.5	%	—		—	%
Other	4,644		0.1	%	—		—	%
Total net revenue from capitated revenue arrangements	$	96,113	4.0	%	$	—	—	%

Total net revenue:
Sleep	$	962,105	40.1	%	$	912,403	38.9	%
Diabetes	443,117		18.4	%	475,219		20.4	%
Supplies to the home	141,983		5.9	%	143,227		6.1	%
Respiratory	485,305		20.2	%	447,815		19.1	%
HME	157,713		6.6	%	154,297		6.5	%
Other	214,107		8.8	%	208,982		9.0	%
Total net revenue	$	2,404,330	100.0	%	$	2,341,943	100.0	%

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Results of Operations

Comparison of Three Months Ended September 30, 2024 and Three Months Ended September 30, 2023.

The following table summarizes AdaptHealth’s consolidated results of operations for the three months ended September 30, 2024 and 2023:


	Three Months Ended September 30,
	2024			2023
	Dollars		Revenue Percentage	Dollars		Revenue Percentage		Increase/(Decrease)
(in thousands, except percentages)								Dollars		Percentage
	(unaudited)
Net revenue	$	805,858	100.0%	$	804,031	100.0%		$	1,827	0.2%
Costs and expenses:
Costs of net revenue:	681,866		84.6%	693,488		86.3%		(11,622)		(1.7)%
General and administrative expenses	49,242		6.1%	45,198		5.6%		4,044		8.9%
Depreciation and amortization, excluding patient equipment depreciation	11,263		1.4%	14,515		1.8%		(3,252)		(22.4)%
Goodwill impairment	—		—%	511,866		63.7	%	(511,866)		(100.0)	%
Total costs and expenses	742,371		92.1%	1,265,067		157.3%		(522,696)		(41.3)%
Operating income (loss)	63,487		7.9%	(461,036)		(57.3)%		524,523		(113.8)	%
Interest expense, net	31,429		3.9%	32,306		4.0%		(877)		(2.7)%
Loss on extinguishment of debt	2,273		0.3%	—		—%		2,273		—%
Change in fair value of warrant liability	(2,243)		(0.3)%	(9,160)		(1.1)	%	6,917		(75.5)%
Other loss, net	—		—%	3,317		0.4	%	(3,317)		(100.0)%
Income (loss) before income taxes	32,028		4.0%	(487,499)		(60.6)%		519,527		(106.6)	%
Income tax expense (benefit)	8,073		1.0%	(34,578)		(4.3)%		42,651		(123.3)%
Net income (loss)	23,955		3.0%	(452,921)		(56.3)%		476,876		(105.3)	%
Income attributable to noncontrolling interest	1,096		0.1%	1,155		0.1	%	(59)		(5.1)%
Net income (loss) attributable to AdaptHealth Corp.	$	22,859	2.8%	$	(454,076)	(56.5)%		$	476,935	(105.0)	%

Net Revenue. The comparability of AdaptHealth's net revenue between periods was impacted by certain factors as described below. The table below presents the items that impacted the change in AdaptHealth's net revenue between periods.


	Three Months Ended September 30,
	Variance 2024 vs. 2023
(in thousands, except percentages)	$		%
Revenue change driver:	(Unaudited)
Increase from non-acquired growth	$	1,474	0.2	%
Increase from acquisitions	353		—	%
Total change in net revenue	$	1,827	0.2	%

Net revenue for the three months ended September 30, 2024 and 2023 was $805.9 million and $804.0 million, respectively, an increase of $1.8 million, or 0.2%. The increase in net revenue was primarily driven by non-acquired growth of $1.5 million, as well as acquisitions, which increased revenue by $0.4 million. Net revenue from AdaptHealth's sleep product category increased by $11.1 million, or 3.5%, for the three months ended September 30, 2024 compared to the prior year period, primarily due to increased patient census driven by strong patient demand for sleep products, including CPAP

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resupply products. In addition, net revenue from AdaptHealth's respiratory product category increased by $12.9 million, or 8.6%, for the three months ended September 30, 2024 compared to the prior year period, primarily due to increased patient census driven by strong patient demand for respiratory products. These increases were partially offset by a decrease in net revenue from AdaptHealth's diabetes product category, which decreased by $18.9 million, or 11.8%, for the three months ended September 30, 2024 compared to the prior year period, primarily due to a shift in diabetes patients by certain large commercial insurance and other payors from DME suppliers to dual-benefit and pharmacy-only suppliers, and a decrease in CGM patient census.

For the three months ended September 30, 2024, net sales revenue (recognized at a point in time) comprised 63% of total net revenue, compared to 66% of total net revenue for the three months ended September 30, 2023. For the three months ended September 30, 2024, net revenue from fixed monthly equipment reimbursements comprised 33% of total net revenue, compared to 34% of total net revenue for the three months ended September 30, 2023. For the three months ended September 30, 2024, net revenue from capitated revenue arrangements comprised 4% of total net revenue. For the three months ended September 30, 2023, net revenue from capitated revenue arrangements was immaterial, and is included in net sales revenue and net revenue from fixed monthly equipment reimbursements by core product line.

Cost of Net Revenue.

The following table summarizes cost of net revenue for the three months ended September 30, 2024 and 2023:


	Three Months Ended September 30,
	2024				2023
	Dollars		Revenue Percentage		Dollars		Revenue Percentage		Increase/(Decrease)
(in thousands, except percentages)									Dollars		Percentage
	(unaudited)
Costs of net revenue:
Cost of products and supplies	$	319,160	39.6	%	$	331,448	41.2	%	$	(12,288)	(3.7)	%
Salaries, labor and benefits	197,600		24.5	%	197,030		24.5	%	570		0.3	%
Patient equipment depreciation	79,496		9.9	%	82,796		10.3	%	(3,300)		(4.0)	%
Other operating expenses	67,716		8.4	%	64,571		8.0	%	3,145		4.9	%
Rent and occupancy	17,894		2.2	%	17,643		2.2	%	251		1.4	%
Total cost of net revenue	$	681,866	84.6	%	$	693,488	86.3	%	$	(11,622)	(1.7)	%

Cost of net revenue for the three months ended September 30, 2024 and 2023 was $681.9 million and $693.5 million, respectively, a decrease of $11.6 million or 1.7%. The cost of products and supplies decreased by $12.3 million, primarily as a result of lower net sales revenue from AdaptHealth's diabetes product category, partially offset by general inflationary cost increases. Salaries, labor and benefits increased by $0.6 million, primarily due to annual merit increases, offset by a decrease in incentive-based compensation and the impact of cost savings actions implemented in the second half of 2023 resulting in headcount reductions. Patient equipment depreciation decreased by $3.3 million, primarily due to lower net revenue from fixed monthly equipment reimbursements, partially offset by higher medical equipment prices. The increase in other operating expenses was primarily due to higher distribution expenses, vehicle rental costs, equipment repair costs, and revenue cycle management costs.

General and Administrative Expenses. General and administrative expenses for the three months ended September 30, 2024 and 2023 were $49.2 million and $45.2 million respectively, an increase of $4.0 million or 8.9%. This increase is primarily due to higher professional and consulting fees, software costs, severance charges, and increased legal reserves, partially offset by lower equity-based compensation expense. General and administrative expenses as a percentage of net revenue was 6.1% in the 2024 period, compared to 5.6% in the 2023 period. General and administrative expenses in the 2024 period included $0.4 million of equity-based compensation expense and other non-recurring expenses of $8.4 million, consisting of $3.2 million of severance charges (primarily related to the separation of the Company's former President), $2.8 million of expenses associated with systems implementation activities, $1.9 million of other net expenses, primarily related to professional and consulting expenses, and $0.5 million of expenses associated with litigation. General and administrative expenses in the 2023 period included $3.5 million of equity-based compensation expense and other non-

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recurring expenses of $7.3 million, consisting of $2.9 million of expenses associated with litigation, $2.3 million of expenses associated with a cost savings program, $1.3 million of expenses associated with systems implementation activities, and $0.8 million of other expenses.

Depreciation and amortization, excluding patient equipment depreciation. Depreciation and amortization, excluding patient equipment depreciation, for the three months ended September 30, 2024 and 2023 was $11.3 million and $14.5 million, respectively, a decrease of $3.3 million, primarily related to lower intangible amortization expense.

Goodwill Impairment. The Company did not recognize an impairment to goodwill during the three months ended September 30, 2024. The Company performed a goodwill impairment test as of September 30, 2023, and based on the results of the test, it was concluded that the estimated fair value of the Company’s reporting unit was less than its carrying value, as such, the Company recognized a non-cash goodwill impairment charge of $511.9 million during the three months ended September 30, 2023. Refer to Note 5, Goodwill and Identifiable Intangible Assets, for additional details.

Interest Expense, net. Interest expense, net for the three months ended September 30, 2024 and 2023 was $31.4 million and $32.3 million, respectively, a decrease of $0.9 million. Interest expense related to AdaptHealth's credit agreement decreased $1.5 million in 2024 compared to 2023, primarily as a result of lower interest rates as well as lower average outstanding borrowings in 2024 compared to 2023. Interest expense on AdaptHealth's finance leases increased by $0.7 million in 2024 compared to 2023.

Change in Fair Value of Warrant Liability. AdaptHealth has outstanding warrants to purchase shares of Common Stock, as discussed in Note 10, Stockholders’ Equity, to the accompanying September 30, 2024 interim consolidated financial statements. These warrants are liability-classified, and the change in fair value of the warrant liability represents a non-cash gain in the 2024 and 2023 periods for the change in the estimated fair value of such liability during the respective periods. These warrants expire on November 8, 2024.

Loss on Extinguishment of Debt. Loss on extinguishment of debt for the three months ended September 30, 2024 consists of lender fees and the write-off of unamortized deferred financing costs in connection with AdaptHealth refinancing its credit facility in 2024. See Note 9, Debt, for additional information.

Other Loss, net. The Company did not record other income/loss activity during the three months ended September 30, 2024. Other loss, net for the three months ended September 30, 2023 consisted of $3.5 million of lease termination costs associated with a cost management program and a $0.3 million charge for the increase in the fair value of a contingent consideration liability related to an acquisition, offset by $0.5 million relating to the write-off of certain operating lease liabilities for closed locations.

Income Tax Expense/Benefit. Income tax expense and income tax benefit for the three months ended September 30, 2024 and 2023 was $8.1 million and $34.6 million, respectively. Income tax expense on ordinary income increased due to higher pre-tax income, net of warrant liability fair value adjustments.

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Comparison of Nine Months Ended September 30, 2024 and Nine Months Ended September 30, 2023.

The following table summarizes AdaptHealth’s consolidated results of operations for the nine months ended September 30, 2024 and 2023:


	Nine Months Ended September 30,
	2024				2023
	Dollars		Revenue Percentage		Dollars		Revenue Percentage		Increase/(Decrease)
(in thousands, except percentages)									Dollars		Percentage
	(unaudited)
Net revenue	$	2,404,330	100.0	%	$	2,341,943	100.0	%	$	62,387	2.7	%
Costs and expenses:
Cost of net revenue	2,036,532		84.7	%	2,022,281		86.4	%	14,251		0.7	%
General and administrative expenses	154,632		6.4	%	142,797		6.1	%	11,835		8.3	%
Depreciation and amortization, excluding patient equipment depreciation	34,023		1.4	%	45,596		1.9	%	(11,573)		(25.4)	%
Goodwill impairment	13,078		0.5	%	511,866		21.9	%	(498,788)		(97.4)	%
Total costs and expenses	2,238,265		93.1	%	2,722,540		116.3	%	(484,275)		(17.8)	%
Operating income (loss)	166,065		6.9	%	(380,597)		(16.3)	%	546,662		(143.6)	%
Interest expense, net	96,939		4.0	%	96,813		4.1	%	126		0.1	%
Loss on extinguishment of debt	2,273		0.1	%	—		—	%	2,273		—	%
Change in fair value of warrant liability	(1,800)		(0.1)	%	(31,886)		(1.4)	%	30,086		(94.4)	%
Other loss, net	3,345		0.1	%	6,574		0.3	%	(3,229)		(49.1)	%
Income (loss) before income taxes	65,308		2.7	%	(452,098)		(19.3)	%	517,406		(114.4)	%
Income tax expense (benefit)	21,931		0.9	%	(30,893)		(1.3)	%	52,824		(171.0)	%
Net income (loss)	43,377		1.8	%	(421,205)		(18.0)	%	464,582		(110.3)	%
Income attributable to noncontrolling interest	3,217		0.1	%	3,187		0.1	%	30		0.9	%
Net income (loss) attributable to AdaptHealth Corp.	$	40,160	1.7	%	$	(424,392)	(18.1)	%	$	464,552	(109.5)	%


	Nine Months Ended September 30,
	Variance 2024 vs. 2023
(in thousands, except percentages)	$		%
Revenue change driver:	(Unaudited)
Increase from non-acquired growth	$	59,439	2.5	%
Increase from acquisitions	2,948		0.1	%
Total change in net revenue	$	62,387	2.7	%

Net revenue for the nine months ended September 30, 2024 and 2023 was $2,404.3 million and $2,341.9 million, respectively, an increase of $62.4 million, or 2.7%. The increase in net revenue was primarily driven by non-acquired growth $59.4 million, as well as acquisitions, which increased revenue by $2.9 million. Net revenue from AdaptHealth's sleep product category increased by $49.7 million, or 5.4%, for the nine months ended September 30, 2024 compared to the prior year period, primarily due to increased patient census driven by strong patient demand for sleep products, including CPAP resupply products. In addition, net revenue from AdaptHealth's respiratory product category increased by $37.5 million, or 8.4%, for the nine months ended September 30, 2024 compared to the prior year period, primarily due to increased patient

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census driven by strong patient demand for respiratory products. These increases were partially offset by a decrease in net revenue from AdaptHealth's diabetes product category, which decreased by $32.1 million, or 6.8%, for the nine months ended September 30, 2024 compared to the prior year period, primarily due to a shift in diabetes patients by certain large commercial insurance and other payors from DME suppliers to dual-benefit and pharmacy-only suppliers, and lower net revenue from insulin pumps and supplies as a result of a shift toward more pumps being sold to patients through the pharmacy channel, as well as the effect from manufacturers bringing additional distribution business in-house and a decrease in CGM patient census.

For the nine months ended September 30, 2024, net sales revenue comprised 64% of total net revenue, compared to 66% of total net revenue for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, net revenue from fixed monthly equipment reimbursements comprised 32% of total net revenue, compared to 34% of total net revenue for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, net revenue from capitated revenue arrangements comprised 4% of total net revenue. For the nine months ended September 30, 2023, net revenue from capitated revenue arrangements was immaterial, and is included in net sales revenue and net revenue from fixed monthly equipment reimbursements by core product line.

Cost of Net Revenue.

The following table summarizes cost of net revenue for the nine months ended September 30, 2024 and 2023:


	Nine Months Ended September 30,
	2024				2023
	Dollars		Revenue Percentage		Dollars		Revenue Percentage		Increase/(Decrease)
(in thousands, except percentages)									Dollars		Percentage
	(unaudited)
Costs of net revenue:
Cost of products and supplies	$	947,980	39.4	%	$	966,021	41.2	%	$	(18,041)	(1.9)	%
Salaries, labor and benefits	593,752		24.7	%	582,827		24.9	%	10,925		1.9	%
Patient equipment depreciation	240,774		10.0	%	244,824		10.5	%	(4,050)		(1.7)	%
Other operating expenses	199,897		8.3	%	177,216		7.6	%	22,681		12.8	%
Rent and occupancy	54,129		2.3	%	51,393		2.2	%	2,736		5.3	%
Total cost of net revenue	$	2,036,532	84.7	%	$	2,022,281	86.4	%	$	14,251	0.7	%

Cost of net revenue for the nine months ended September 30, 2024 and 2023 was $2,036.5 million and $2,022.3 million, respectively, an increase of $14.3 million or 0.7%. The cost of products and supplies decreased by $18.0 million, primarily related to a decrease in net sales revenue from AdaptHealth's diabetes product category and the impact of credits received from a supplier related to certain product recalls which were recognized as a reduction to the cost of products and supplies, partially offset by general inflationary cost increases. Salaries, labor and benefits increased by $10.9 million, primarily due to increased benefits costs and annual merit increases, partially offset by cost savings actions implemented in the second half of 2023 resulting in headcount reductions. Patient equipment depreciation decreased by $4.1 million, primarily due to lower net revenue from fixed monthly equipment reimbursements, partially offset by higher medical equipment prices. The increase in other operating expenses was primarily due to higher distribution expenses, vehicle rental costs, equipment repair costs, and revenue cycle management costs.

General and Administrative Expenses. General and administrative expenses for the nine months ended September 30, 2024 and 2023 were $154.6 million and $142.8 million, respectively, an increase of $11.8 million or 8.3%. This increase is primarily due to higher professional and consulting fees, software costs, and increased legal reserves, partially offset by lower equity-based compensation expense and restructuring expenses related to a cost savings program that was implemented in 2023. General and administrative expenses as a percentage of net revenue was 6.4% in the 2024 period, compared to 6.1% in the 2023 period. General and administrative expenses in the 2024 period included $8.4 million of equity-based compensation expense and other non-recurring expenses of $20.9 million, consisting of $9.7 million of expenses associated with systems implementation activities, $3.3 million of expenses associated with litigation, $3.2 million of severance charges (of which $3.0 million relates to the separation of the Company's former President), and $4.8 million of

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other expenses, primarily related to professional and consulting expenses. General and administrative expenses in the 2023 period included $15.8 million of equity-based compensation expense and other non-recurring expenses of $24.8 million, consisting of $11.3 million of expenses associated with litigation, $8.5 million of expenses associated with the cost savings program, $3.9 million of expenses associated with systems implementation activities, and $1.1 million of other expenses.

Depreciation and amortization, excluding patient equipment depreciation. Depreciation and amortization, excluding patient equipment depreciation, for the nine months ended September 30, 2024 and 2023 was $34.0 million and $45.6 million, respectively, a decrease of $11.6 million, primarily related to lower intangible amortization expense.

Goodwill Impairment. The Company did not recognize an impairment to goodwill during the nine months ended September 30, 2024. The goodwill impairment charge for the nine months ended September 30, 2024 relates to the disposition of certain immaterial custom rehab technology assets during 2024. The Company performed a goodwill impairment test as of September 30, 2023, and based on the results of the test, it was concluded that the estimated fair value of the Company’s reporting unit was less than its carrying value, as such, the Company recognized a non-cash goodwill impairment charge of $511.9 million during the nine months ended September 30, 2023. Refer to Note 5, Goodwill and Identifiable Intangible Assets, for additional information.

Interest Expense, net. Interest expense, net for the nine months ended September 30, 2024 and 2023 was $96.9 million and $96.8 million, respectively, an increase of $0.1 million. Interest expense on AdaptHealth's finance leases increased by $1.7 million in 2024 compared to 2023. Interest expense related to AdaptHealth's credit agreement decreased $1.7 million in the 2024 period compared to the 2023 period, primarily as a result of lower interest rates as well as lower average outstanding borrowings in 2024 compared to 2023.

Loss on Extinguishment of Debt. Loss on extinguishment of debt for the nine months ended September 30, 2024 consists of lender fees and the write-off of unamortized deferred financing costs in connection with AdaptHealth refinancing its credit facility in 2024. See Note 9, Debt, for additional information.

Other Loss, net. Other loss for the nine months ended September 30, 2024 consisted of a pre-tax expense of $2.4 million for the change in fair value of shares of AdaptHealth's Common Stock that were issued in July 2024 following final court approval of the settlement of a previously disclosed securities class action lawsuit, as well as an expense of $0.9 million to settle a shareholder derivative complaint. See Note 14, Commitments and Contingencies, for additional information. Other loss, net for the nine months ended September 30, 2023 consisted of $4.1 million of lease termination costs associated with a cost management program, $1.4 million of impairments of operating lease right-of-use assets, $1.2 million of expenses associated with legal settlements, and a $0.3 million charge for the increase in the fair value of a contingent consideration liability related to an acquisition, offset by $0.5 million relating to the write-off of certain operating lease liabilities for closed locations.

Income Tax Expense / Benefit. Income tax expense and income tax benefit for the nine months ended September 30, 2024 and 2023 was $21.9 million and $30.9 million, respectively. The increase in income tax expense was primarily related to higher pre-tax income, net of warrant liability fair value adjustments and goodwill impairment charges.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

AdaptHealth uses EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin, which are financial measures that are not in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, to analyze its financial results and believes that they are useful to investors, as a supplement to U.S. GAAP measures. In addition, AdaptHealth’s ability to incur additional indebtedness and make investments under its existing credit agreement is governed, in part, by its ability to satisfy tests based on a variation of Adjusted EBITDA.

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AdaptHealth defines EBITDA as net income (loss) attributable to AdaptHealth Corp., plus net income (loss) attributable to noncontrolling interests, interest expense, net, income tax expense (benefit), and depreciation and amortization, including patient equipment depreciation.

AdaptHealth defines Adjusted EBITDA as EBITDA (as defined above), plus equity-based compensation expense, change in fair value of the warrant liability, goodwill impairment, loss on extinguishment of debt, litigation settlement expense, and certain other non-recurring items of expense or income.

AdaptHealth defines Adjusted EBITDA Margin as Adjusted EBITDA (as defined above) as a percentage of net revenue.

AdaptHealth believes Adjusted EBITDA and Adjusted EBITDA Margin are useful to investors in evaluating AdaptHealth’s financial performance. AdaptHealth uses Adjusted EBITDA as the profitability measure in its incentive compensation plans that have a profitability component and to evaluate acquisition opportunities, where it is most often used for purposes of contingent consideration arrangements.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin should not be considered as measures of financial performance under U.S. GAAP, and the items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing financial performance. Accordingly, these key business metrics have limitations as an analytical tool. They should not be considered as an alternative to net income or any other performance measures derived in accordance with U.S. GAAP or as an alternative to cash flows from operating activities as a measure of AdaptHealth’s liquidity.

The following unaudited table presents the reconciliation of net income (loss) attributable to AdaptHealth Corp. to EBITDA and Adjusted EBITDA, and the reconciliation of net income (loss) attributable to AdaptHealth Corp. as a percentage of net revenue to Adjusted EBITDA Margin, for the three months ended September 30, 2024 and 2023:


	Three Months Ended September 30,
	2024			2023
	(Unaudited)
(in thousands, except percentages)	Dollars		Revenue Percentage	Dollars		Revenue Percentage
Net income (loss) attributable to AdaptHealth Corp.	$	22,859	2.8%	$	(454,076)	(56.5)%
Income attributable to noncontrolling interest	1,096		0.1%	1,155		0.1%
Interest expense, net	31,429		3.9%	32,306		4.0%
Income tax expense (benefit)	8,073		1.0%	(34,578)		(4.2)%
Depreciation and amortization, including patient equipment depreciation	90,759		11.3%	97,310		12.1%
EBITDA	154,216		19.1%	(357,883)		(44.5)%
Equity-based compensation expense (a)	863		0.1%	4,521		0.5%
Change in fair value of warrant liability (b)	(2,243)		(0.3)%	(9,160)		(1.1)%
Goodwill impairment (c)	—		—%	511,866		63.7%
Loss on extinguishment of debt (d)	2,273		0.3%	—		—%
Other non-recurring expenses, net (e)	9,148		1.2%	11,823		1.4%
Adjusted EBITDA	$	164,257	20.4%	$	161,167	20.0%
Adjusted EBITDA Margin			20.4%			20.0%

(a)Represents equity-based compensation expense for awards granted to employees and non-employee directors.

(b)Represents a non-cash gain for the change in the estimated fair value of the warrant liability. See Note 10, Stockholders’ Equity, included in the accompanying notes to the interim consolidated financial statements for the three months ended September 30, 2024 for additional discussion of such non-cash gain.

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(c)Represents a non-cash goodwill impairment charge as a result of the fair value of the Company’s reporting unit being less than its carrying value. Refer to Note 5, Goodwill and Identifiable Intangible Assets, for additional discussion of such impairment charge.

(d)Represents lender fees and the write-off of unamortized deferred financing costs in connection with the refinancing of the Company's credit agreement. See Note 9, Debt, included in the accompanying notes to the interim consolidated financial statements for the three months ended September 30, 2024 for additional discussion of such refinancing.

(e)The 2024 period consists of $3.3 million of severance charges (primarily related to the separation of the Company's former President), $2.8 million of consulting expenses associated with systems implementation activities, $1.1 million write-down of assets, $0.5 million of expenses associated with litigation, and $1.5 million of other non-recurring expenses. The 2023 period consists of $3.6 million of lease termination costs associated with a cost management program, $2.9 million of expenses associated with litigation, $1.5 million of severance charges, $1.3 million of consulting expenses associated with systems implementation activities, and $2.5 million of other non-recurring expenses.


	Nine Months Ended September 30,
	2024			2023
	(Unaudited)
(in thousands, except percentages)	Dollars		Revenue Percentage	Dollars		Revenue Percentage
Net income (loss) attributable to AdaptHealth Corp.	$	40,160	1.7%	$	(424,392)	(18.1)%
Income attributable to noncontrolling interest	3,217		0.1%	3,187		0.1%
Interest expense, net	96,939		4.0%	96,813		4.1%
Income tax expense (benefit)	21,931		0.9%	(30,893)		(1.3)%
Depreciation and amortization, including patient equipment depreciation	274,797		11.5%	290,419		12.4%
EBITDA	437,044		18.2%	(64,866)		(2.8)%
Equity-based compensation expense (a)	10,614		0.4%	17,284		0.7%
Change in fair value of warrant liability (b)	(1,800)		(0.1)%	(31,886)		(1.4)%
Goodwill impairment (c)	13,078		0.5%	511,866		21.9%
Loss on extinguishment of debt (d)	2,273		0.1%	—		—%
Litigation settlement expense (e)	3,345		0.1%	—		—%
Other non-recurring expenses, net (f)	23,503		1.1%	33,778		1.5%
Adjusted EBITDA	$	488,057	20.3%	$	466,176	19.9%
Adjusted EBITDA Margin			20.3%			19.9%

(a)Represents equity-based compensation expense for awards granted to employees and non-employee directors.

(b)Represents a non-cash gain for the change in the estimated fair value of the warrant liability. See Note 10, Stockholders’ Equity, included in the accompanying notes to the interim consolidated financial statements for the three and nine months ended September 30, 2024 for additional discussion of such non-cash gain.

(c)The 2024 period includes non-cash goodwill impairment charges relating to the disposition of certain immaterial custom rehab technology assets. The 2023 period includes a non-cash goodwill impairment charge as a result of the fair value of the Company’s reporting unit being less than it's carrying value. Refer to Note 5, Goodwill and

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Identifiable Intangible Assets, included in the accompanying notes to the interim consolidated financial statements for additional discussion of such impairment charge.

(e)Represents a $2.4 million charge for the change in fair value of shares of Common Stock of the Company that were issued in July 2024 following final court approval of the previously disclosed Securities Settlement, as well as an expense of $0.9 million to settle a shareholder derivative complaint. See Note 14, Commitments and Contingencies, included in the accompanying notes to the interim consolidated financial statements for the three and nine months ended September 30, 2024 for additional information.

(f)The 2024 period consists of $9.7 million of consulting expenses associated with systems implementation activities, $3.3 million of severance charges (primarily related to the separation of the Company's former President), $3.3 million of expenses associated with litigation, $2.7 million write-down of assets, and $4.5 million of other non-recurring expenses. The 2023 period consists of $12.5 million of expenses associated with litigation, $6.3 million of severance charges (of which $2.9 million related to the separation of the Company's former CEO), $4.1 million of lease termination costs associated with a cost management program, $3.9 million of consulting expenses associated with systems implementation activities, $0.9 million of net impairments of operating lease right-of-use assets, and $6.1 million of other non-recurring expenses.

Free Cash Flow

AdaptHealth uses free cash flow, which is a financial measure that is not in accordance with U.S. GAAP, in its operational and financial decision-making and believes free cash flow is useful to investors because similar measures are frequently used by securities analysts, investors, ratings agencies and other interested parties to evaluate AdaptHealth's competitors and to measure the ability of companies to service their debt. AdaptHealth's presentation of free cash flow should not be construed as a measure of liquidity or discretionary cash available to AdaptHealth to fund its cash needs, including investing in the growth of its business and meeting its obligations.

Free cash flow should not be considered as a measure of financial performance under U.S. GAAP. Accordingly, this key business metric has limitations as an analytical tool. It should not be considered as an alternative to any performance measures derived in accordance with U.S. GAAP or as an alternative to cash flows from operating activities as a measure of AdaptHealth’s liquidity.

AdaptHealth defines free cash flow as net cash provided by operating activities less cash paid for purchases of equipment and other fixed assets. For further discussion on free cash flow, including a reconciliation from cash flows provided by operating activities, see Liquidity and Capital Resources - Free Cash Flow below.

Liquidity and Capital Resources

AdaptHealth’s principal sources of liquidity are its operating cash flows, borrowings under its credit agreements and other debt arrangements, and proceeds from equity issuances. AdaptHealth has used these funds to meet its capital requirements, which primarily consist of capital expenditures including patient equipment, product and supply costs, salaries, labor, benefits and other employee-related costs, third-party customer service, billing and collections and logistics costs, acquisitions and debt service, and to fund share repurchases. AdaptHealth’s future capital expenditure requirements will depend on many factors, including its patient volume and revenue growth rates.

AdaptHealth’s capital expenditures are made in advance of patients beginning service. Certain operating costs are incurred at the beginning of the equipment service period and during initial patient set up.

AdaptHealth believes that its expected operating cash flows, together with its existing cash and amounts available under its existing credit agreement, will continue to be sufficient to fund its operations and growth strategies for at least the next twelve months.

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AdaptHealth may seek additional equity or debt financing in connection with the growth of its business, primarily for acquisitions. In addition, economic conditions may cause disruption in the capital markets, which could make financing more difficult and/or expensive. In the event that additional financing is required from outside sources, AdaptHealth may not be able to raise it on acceptable terms or at all. If additional capital is unavailable when desired, AdaptHealth’s business, results of operations, and financial condition could be materially adversely affected.

As of September 30, 2024, AdaptHealth had approximately $100.2 million of cash.

In September 2024, AdaptHealth entered into an amendment to its then existing credit agreement (as amended, the "2024 Credit Agreement"). As of September 30, 2024, AdaptHealth had $600.0 million outstanding under the 2024 Credit Agreement. The 2024 Credit Agreement includes a $650 million term loan (the “2024 Term Loan”) and $300 million in revolving credit commitments with a $55.0 million letter of credit sublimit (the “2024 Revolver”, and together with the 2024 Term Loan, the "2024 Credit Facility"). The 2024 Credit Facility matures in September 2029. However, if the 6.125% Senior Notes (as defined below) have not been refinanced (to extend the maturity date to a date that is later than December 13, 2029) or repaid in full, on or prior to December 31, 2027, then the 2024 Credit Facility will mature on May 1, 2028; and, if the 4.625% Senior Notes (as defined below) have not been refinanced (to extend the maturity date to a date that is later than December 13, 2029) or repaid in full, on or prior to December 31, 2028, then the 2024 Credit Facility will mature on May 1, 2029. As of September 30, 2024, the outstanding borrowing under the 2024 Term Loan requires quarterly principal repayments of $4.1 million through September 30, 2026, increasing to $8.1 million from December 31, 2026 through June 30, 2029, and the remaining unpaid principal balance is due in September 2029. In September 2024, AdaptHealth made a voluntary repayment on the 2024 Term Loan of $50.0 million. At September 30, 2024, there was $600.0 million outstanding under the 2024 Term Loan. Borrowings under the 2024 Revolver may be used for working capital and other general corporate purposes, including for capital expenditures and acquisitions permitted under the 2024 Credit Agreement. AdaptHealth had no borrowings under the 2024 Revolver. At September 30, 2024, there was $22.4 million outstanding under letters of credit. As of the date of this filing, there were no outstanding borrowings under the 2024 Revolver. At September 30, 2024, based on the financial debt covenants under the 2024 Credit Agreement, the maximum amount AdaptHealth could borrow under the 2024 Revolver and remain in compliance with the financial debt covenants under the agreement was $277.6 million.

At the option of AdaptHealth, amounts borrowed under the 2024 Credit Agreement bear interest at variable rates based upon either the Base Rate (as defined in the 2024 Credit Agreement), payable quarterly, or Term SOFR (as defined in the 2024 Credit Agreement), payable monthly or every three months depending on the interest period selected. Interest periods for Term SOFR loans are available for one, three, or six months at the option of AdaptHealth. Base Rate loans accrue interest at a per annum rate equal to the sum of (a) the Base Rate determined on each day (subject to a zero percent floor), plus an applicable margin ranging from 0.50% to 2.25% per annum based on AdaptHealth's Consolidated Senior Secured Leverage Ratio (as defined in the 2024 Credit Agreement). Term SOFR loans accrue interest at a per annum rate equal to the sum of (a) Term SOFR for the applicable interest period (subject to a zero percent floor), plus (b) an applicable margin ranging from 1.50% to 3.25% per annum based on AdaptHealth's Consolidated Senior Secured Leverage Ratio. The 2024 Revolver carries a commitment fee during the term of the 2024 Credit Agreement ranging from 0.25% to 0.50% per annum of the actual daily undrawn portion of the 2024 Revolver depending upon AdaptHealth's Consolidated Senior Secured Leverage Ratio.

Under the 2024 Credit Agreement, AdaptHealth is subject to a number of restrictive covenants that, among other things, impose operating and financial restrictions on AdaptHealth. Financial covenants include a Consolidated Total Leverage Ratio and a Consolidated Interest Coverage Ratio, both as defined in the 2024 Credit Agreement. The 2024 Credit Agreement also contains certain customary events of default, including, among other things, failure to make payments when due thereunder, failure to observe or perform certain covenants, cross-defaults, bankruptcy and insolvency-related events, and non-compliance with healthcare laws. AdaptHealth was in compliance with the applicable covenants in the 2024 Credit Agreement as of September 30, 2024.

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At September 30, 2024, AdaptHealth had $1,450.0 million aggregate principal amount of unsecured senior notes outstanding. In August 2021, AdaptHealth issued $600.0 million aggregate principal amount of 5.125% senior unsecured notes (the “5.125% Senior Notes”). The 5.125% Senior Notes will mature on March 1, 2030. Interest on the 5.125% Senior Notes is payable on March 1st and September 1st of each year. The 5.125% Senior Notes will be redeemable at AdaptHealth’s option, in whole or in part, at any time on or after March 1, 2025, and the redemption price for the 5.125% Senior Notes if redeemed during the 12 months beginning (i) March 1, 2025 is 102.563%, (ii) March 1, 2026 is 101.281%, (iii) March 1, 2027 and thereafter is 100.000%, in each case together with accrued and unpaid interest. AdaptHealth may also redeem some or all of the 5.125% Senior Notes before March 1, 2025 at a redemption price of 100% of the principal amount of the 5.125% Senior Notes, plus a “make-whole” premium, together with accrued and unpaid interest. In addition, AdaptHealth may redeem up to 40% of the original aggregate principal amount of the 5.125% Senior Notes before March 1, 2025 with the proceeds from certain equity offerings at a redemption price equal to 105.125% of the principal amount of the 5.125% Senior Notes, together with accrued and unpaid interest. Furthermore, AdaptHealth may be required to make an offer to purchase the 5.125% Senior Notes upon the sale of certain assets or upon specific kinds of changes of control.

In January 2021, AdaptHealth issued $500.0 million aggregate principal amount of 4.625% senior unsecured notes (the “4.625% Senior Notes”). The 4.625% Senior Notes will mature on August 1, 2029. Interest on the 4.625% Senior Notes is payable on February 1st and August 1st of each year. The 4.625% Senior Notes will be redeemable at AdaptHealth’s option, in whole or in part, at any time on or after February 1, 2024, and the redemption price for the 4.625% Senior Notes if redeemed during the 12 months beginning (i) February 1, 2024 is 102.313%, (ii) February 1, 2025 is 101.156%, and (iii) February 1, 2026 and thereafter is 100.000% in each case together with accrued and unpaid interest. AdaptHealth may also redeem some or all of the 4.625% Senior Notes before February 1, 2024 at a redemption price of 100% of the principal amount of the 4.625% Senior Notes, plus a “make-whole” premium, together with accrued and unpaid interest. In addition, AdaptHealth may redeem up to 40% of the original aggregate principal amount of the 4.625% Senior Notes before February 1, 2024 with the proceeds from certain equity offerings at a redemption price equal to 104.625% of the principal amount of the 4.625% Senior Notes, together with accrued and unpaid interest. Furthermore, AdaptHealth may be required to make an offer to purchase the 4.625% Senior Notes upon the sale of certain assets or upon specific kinds of changes of control.

In July 2020, AdaptHealth issued $350.0 million aggregate principal amount of 6.125% senior unsecured notes (the “6.125% Senior Notes”). The 6.125% Senior Notes will mature on August 1, 2028. Interest on the 6.125% Senior Notes is payable on February 1st and August 1st of each year. The 6.125% Senior Notes will be redeemable at AdaptHealth’s option, in whole or in part, at any time on or after August 1, 2023, and the redemption price for the 6.125% Senior Notes if redeemed during the 12 months beginning (i) August 1, 2023 is 103.063%, (ii) August 1, 2024 is 102.042%, (iii) August 1, 2025 is 101.021% and (iv) August 1, 2026 and thereafter is 100.000%, in each case together with accrued and unpaid interest. AdaptHealth may also redeem some or all of the 6.125% Senior Notes before August 1, 2023 at a redemption price of 100% of the principal amount of the 6.125% Senior Notes, plus a “make-whole” premium, together with accrued and unpaid interest. In addition, AdaptHealth may redeem up to 40% of the original aggregate principal amount of the 6.125% Senior Notes before August 1, 2023 with the proceeds from certain equity offerings at a redemption price equal to 106.125% of the principal amount of the 6.125% Senior Notes, together with accrued and unpaid interest. Furthermore, AdaptHealth may be required to make an offer to purchase the 6.125% Senior Notes upon the sale of certain assets or upon specific kinds of changes of control.

As of September 30, 2024 and December 31, 2023, AdaptHealth had working capital of $130.8 million and $112.0 million, respectively. A significant portion of AdaptHealth’s current assets consists of accounts receivable from third-party payors that are responsible for payment for the products and services that AdaptHealth provides.

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Cash Flow. The following table presents selected data from AdaptHealth’s consolidated statements of cash flows for the nine months ended September 30, 2024 and 2023:


	Nine Months Ended September 30,
(in thousands)	2024		2023
	(unaudited)
Net cash provided by operating activities	$	391,424	$	325,400
Net cash used in investing activities	(223,403)		(266,861)
Net cash used in financing activities	(144,973)		(48,668)
Net increase in cash	23,048		9,871
Cash at beginning of period	77,132		46,272
Cash at end of period	$	100,180	$	56,143

Net cash provided by operating activities for the nine months ended September 30, 2024 and 2023 was $391.4 million and $325.4 million, respectively, an increase of $66.0 million. The increase was the result of a $464.6 million increase in net income, a net decrease of $428.8 million in non-cash charges, primarily from goodwill impairment charges, depreciation and amortization, the change in the estimated fair value of the warrant liability, deferred income taxes, and the reduction in the carrying amount of operating and finance lease right-of-use assets, a payment of $1.9 million for contingent consideration in connection with an acquisition, and a net $32.1 million increase resulting from the change in operating assets and liabilities, primarily from the change in accounts receivable, inventory and accounts payable and accrued expenses.

Net cash used in investing activities for the nine months ended September 30, 2024 and 2023 was $223.4 million and $266.9 million, respectively. The use of funds in the 2024 period consisted of $228.7 million for equipment and other fixed asset purchases, partially offset by $5.3 million of proceeds from the sale of assets. The use of funds in the 2023 period consisted of $248.8 million for equipment and other fixed asset purchases, $17.9 million for business acquisitions, and $0.1 million for other investments.

Net cash used in financing activities for the nine months ended September 30, 2024 and 2023 was $145.0 million and $48.7 million, respectively. Net cash used in financing activities for the 2024 period consisted of repayments of $381.7 million on long-term debt (primarily in connection with the refinancing of the Company's credit agreement) and finance lease liabilities, payments of $6.4 million for debt issuance costs, payments of $5.3 million for contingent consideration and deferred purchase price in connection with acquisitions, a payment of $3.5 million for a distribution to the noncontrolling interest, payments of $1.8 million for tax withholdings associated with equity-based compensation, and payments of $1.4 million in connection with the Company's liability relating to the TRA, offset by borrowings on long-term debt and lines of credit of $253.5 million, proceeds of $1.0 million in connection with the employee stock purchase plan and proceeds of $0.7 million relating to stock option exercises. Net cash used in financing activities for the 2023 period consisted of repayments of $79.6 million on long-term debt and finance lease liabilities payments of $9.2 million for Common Stock purchases under a share repurchase program, payments of $3.2 million in connection with the Company's liability relating to the TRA, payments of $5.3 million for tax withholdings associated with equity-based compensation and stock option exercises, a payment of $2.5 million for a distribution to the noncontrolling interest, and payments of $1.5 million for deferred purchase price in connection with acquisitions, offset by borrowings of long-term debt of $50.0 million, proceeds of $2.0 million in connection with the employee stock purchase plan and proceeds of $0.5 million relating to stock option exercises.

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Free Cash Flow

The following table reconciles net cash provided by operating activities to free cash flow, which is a non-GAAP measure, for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
	(Unaudited)
Net cash provided by operating activities	$	144,405	$	98,833	$	391,424	$	325,400
Purchases of equipment and other fixed assets	(59,556)		(77,086)		(228,719)		(248,816)
Free cash flow	$	84,849	$	21,747	$	162,705	$	76,584

Free cash flow was $84.8 million for the three months ended September 30, 2024 compared to $21.7 million for the three months ended September 30, 2023. The increase in free cash flow was due to higher net cash provided by operating activities, primarily due to a net increase in the source of cash from operating assets and liabilities. Free cash flow during the three months ended September 30, 2024 was positively impacted by cash collections of accounts receivable from certain pending claims related to the Change Healthcare cybersecurity incident (see further discussion below). The increase in free cash flow was also, to a lesser extent, due to a decrease in, and timing of, purchases of patient medical equipment for operating requirements.

Free cash flow was $162.7 million for the nine months ended September 30, 2024 compared to $76.6 million for the nine months ended September 30, 2023. The increase in free cash flow was due to higher net cash provided by operating activities, primarily from funds received in connection with AdaptHealth's participation in the Optum Temporary Funding Assistance Program (see further discussion below). The increase in free cash flow was also, to a lesser extent, due to a decrease in, and timing of, purchases of patient medical equipment for operating requirements.

As previously disclosed, in February 2024, AdaptHealth learned that a cyber security threat actor had gained access to some of the information technology systems of Change Healthcare, a subsidiary of UnitedHealth Group, with which one of AdaptHealth's third-party software providers interfaces in connection with AdaptHealth’s claims processing activity. UnitedHealth Group isolated the impacted systems upon learning of this threat and Change Healthcare suspended its claims processing activity with AdaptHealth’s software provider. AdaptHealth has worked with its software provider to identify and implement alternative processes to help maintain its claims processing activity. This incident impacted the timing of collection of certain accounts receivable. Pending claims from this incident peaked shortly following the data breach, however, all pending claims have been processed and the impacted accounts receivable balances have been substantially collected by September 30, 2024.

During the nine months ended September 30, 2024, AdaptHealth participated in the Optum Temporary Funding Assistance Program which was designed to provide short-term cash flow relief to providers impacted by the disruption in Change Healthcare’s services. As of September 30, 2024, AdaptHealth received $40.7 million under this program which was repaid in October 2024. AdaptHealth has not incurred any fees, interest or other associated costs for participating in the program.

Critical Accounting Policies and Estimates

The discussion and analysis of the Company’s financial condition and results of operations is based upon the Company’s consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of the Company’s consolidated financial statements requires its management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. The Company’s management bases its estimates, assumptions and judgments on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Different assumptions and judgments would change the estimates used in the preparation of the Company’s consolidated financial statements which, in

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turn, could change the results from those reported. In addition, actual results may differ from these estimates and such differences could be material to the Company’s financial position and results of operations.

Critical estimates are those that the Company’s management considers the most important to the portrayal of the Company’s financial condition and results of operations because they require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. The Company’s critical estimates in relation to its consolidated financial statements include those related to revenue recognition and valuation of goodwill. There have been no material changes in the Company’s critical accounting policies and critical estimates as compared to the critical accounting policies and critical estimates described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

Commitments and Contingencies

In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business that cover a wide range of matters. In accordance with FASB ASC Topic 450, Accounting for Contingencies, the Company records accruals for such loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If there is no probable estimate within a range of reasonably possible outcomes, the Company’s policy is to record at the low end of the range of such reasonably possible outcomes. Significant judgment is required to determine both probability and the estimated amount. The Company reviews its accruals at least quarterly and adjusts accordingly to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information. At this time, the Company has no material accruals related to lawsuits, claims, investigations and proceedings, except as disclosed below. While there can be no assurance, based on the Company’s evaluation of information currently available, the Company’s management believes any liability that may ultimately result from resolution of such loss contingencies will not have a material adverse effect on the Company’s financial conditions or results of operations. However, the Company’s assessment may be affected by limited information. Accordingly, the Company’s assessment may change in the future based upon availability of new information and further developments in the proceedings of such matters. The results of legal proceedings are inherently uncertain, and material adverse outcomes are possible. Professional legal fees are expensed as they are incurred.

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On December 6, 2021, a putative shareholder of the Company, Carol Hessler (the “Derivative Plaintiff”), filed a shareholder derivative complaint against certain current and former directors and officers of the Company in the United States District Court for the Eastern District of Pennsylvania (as to the complaint, the “Derivative Complaint”; as to the action, the “Derivative Action”). The Derivative Complaint generally alleges that the defendants breached their fiduciary duties owed to the Company by, among other things, allegedly causing or allowing misrepresentations and/or omissions regarding changes made to the methodology used to calculate the Company’s organic growth and the Company’s former Co-CEO’s alleged criminal activity and engaging in insider trading. The Derivative Complaint also alleges claims for waste of corporate assets and unjust enrichment. Finally, the Derivative Complaint alleges that certain of the individual defendants violated Section 14(a) of the Securities Exchange Act by allegedly negligently issuing, causing to be issued, and participating in the issuance of materially misleading statements to stockholders in the Company’s Proxy Statements on Schedule DEF 14A in connection with a Special Meeting of Stockholders, held on March 3, 2021, and the 2021 Annual Meeting of Stockholders, held on July 27, 2021. The Derivative Complaint seeks, among other things, an award of money damages.

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The Company intends to vigorously defend against the allegations contained in the Allegheny County Complaint, but there can be no assurance that the defense will be successful.

On March 20, 2024, a putative shareholder of the Company, Weiding Wu, filed a shareholder derivative complaint related to the allegations in the Allegheny County Complaint, and against certain current and former directors and officers of the Company in the United States District Court for the Eastern District of Pennsylvania (as to the complaint, the “Wu Derivative Complaint”; as to the action, the “Wu Derivative Action”). The Wu Derivative Complaint alleges, among other things, that the defendants breached their fiduciary duties and violated federal securities laws by making allegedly false and misleading statements and/or failing to disclose material information regarding the Company’s organic growth in its diabetes product category. The Wu Derivative Complaint also alleges claims for unjust enrichment, waste of corporate assets, abuse of control, and gross mismanagement. The Derivative Complaint seeks, among other things, an award of money damages.

The Company intends to vigorously defend against the allegations contained in the Wu Derivative Complaint, but there can be no assurance that the defense will be successful.

The Company is fully cooperating with the investigation. Given the stage of the investigation, it is not possible to determine whether it will have a material adverse effect on the Company.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our exposure to market risk relates to fluctuations in interest rates from borrowings under the 2024 Credit Agreement. As of September 30, 2024, there was $600.0 million outstanding under the 2024 Term Loan, $22.4 million outstanding under letters of credit, and based on the financial debt covenants under the 2024 Credit Agreement, the maximum amount the Company could borrow under the 2024 Revolver and remain in compliance with the financial debt covenants under the agreement was $277.6 million. Amounts borrowed under the 2024 Credit Agreement bear interest at variable rates determined in relation to the Base Rate (as defined) or Term SOFR (as defined), at our option. Due to the interest rates being variable, fluctuations in interest rates may impact our earnings. Based on our current level of debt, we estimate that a 100 basis point change in interest rates would have a $4.6 million annual impact on our net income (loss) before taxes.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of September 30, 2024. Disclosure controls and procedures are designed to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, during the period covered by this Quarterly Report, our disclosure controls and procedures were not effective due to material weaknesses in internal control over financial reporting, as further described below in Management’s Report on Internal Control Over Financial Reporting.

As previously disclosed in Part II, Item 9A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, management identified material weaknesses in internal control over financial reporting. The following material weaknesses in internal control over financial reporting were identified by the Company as of December 31, 2023:

•The Company uses a third-party service provider under a software as a service contract to initiate and process the majority of its revenue transactions. The service provider uses a subservice organization to consolidate and reformat transactional revenue data before it is recorded in the Company’s general ledger. The Company obtains from the service provider a System and Organization Controls (SOC) 1 Type 2 report as part of the evidence used in its evaluation of the Company’s internal control over financial reporting. Due to insufficient communication between the Company and the service provider regarding its expectations for controls over the activities of the subservice organization, the SOC 1 Type 2 report for the service provider did not provide evidence of design, implementation, and operating effectiveness of controls over the completeness and accuracy of the Company’s transactional revenue data processed by the subservice organization. The Company also did not design and implement such controls on its own. Substantially all manual and automated controls within the revenue process rely on the integrity of the information processed by the third-party service provider and its subservice organization and, therefore, are also considered to be ineffective.

•The Company did not design and implement a three-way match control (comparing the purchase order, delivery receipt, and invoice) over its procurement of medical equipment inventory through a third-party distribution channel. Specifically, because these procurement transactions are initiated through technology that is not integrated with the technology utilized for vendor invoice payments, the Company was not able to reconcile the quantities of the equipment invoiced by its vendors to the quantities actually received which could affect the completeness, existence, and accuracy of the Company’s cost of sales and the related accounts payable.

•The Company did not design and implement process-level controls over the determination of excess or obsolete medical equipment and other inventory balances. Specifically, the Company did not have a mechanism in place to track the movement and status of specific medical equipment and other inventory which could affect the valuation of its inventory.

Notwithstanding the identified material weaknesses, management, including our principal executive officer and principal financial officer, believes the interim consolidated financial statements included in this Quarterly Report on Form 10-Q fairly represent in all material respects our financial condition, results of operations and cash flows at and for the periods presented in accordance with U.S. GAAP.

Remediation of Previously Reported Material Weaknesses in Internal Control Over Financing Reporting

With respect to the material weaknesses that existed as of December 31, 2023, management continues to take steps to remediate such material weaknesses, including 1) working with the third-party service provider to ensure its SOC 1 Type 2 report includes evidence of implementation and testing of controls for all relevant sub-service providers impacting the revenue transactional data used by the Company, 2) completing the implementation of technology to bring the third-party distribution channel transaction information into one system to facilitate a three-way match of the purchase order, delivery

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receipt and invoice, 3) expanding the implementation of a perpetual inventory system to a larger number of Company locations, and 4) using the information from the perpetual inventory system to support the determination of excess or obsolete medical equipment and other inventory. While management has completed a risk assessment to identify controls, the material weaknesses cannot be considered remediated until the enhanced controls have been fully implemented and determined to be operating effectively for a sufficient period of time.

Changes in Internal Control over Financial Reporting

Except with respect to the changes in connection with the implementation of the initiatives to remediate the material weaknesses noted above, there were no changes in the Company’s internal control over financial reporting that occurred during the quarter ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

See Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations —Commitments and Contingencies”.

Item 1A. Risk Factors

Factors that could cause our actual results to differ materially from those in this report are any of the risks disclosed under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 27, 2024. Any of those factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

We had no sales of unregistered equity securities during the period covered by this report that were not previously reported in a Quarterly Report on Form 10-Q or a Current Report on Form 8-K. In connection with the securities settlement of the consolidated securities class action in the United States District Court for the Eastern District of Pennsylvania in the matter styled Delaware County Employees Retirement System, et al. v. AdaptHealth Corp. f/k/a DFB Healthcare Acquisitions Corp., et al., the Company issued one million shares of the Company’s common stock (the “Settlement Shares”) in July 2024. The Settlement Shares were issued without registration pursuant to a Section 3(a)(10) exemption from registration under the Securities Act of 1933 and the rules and regulations promulgated thereunder (see Note 14, Commitments and Contingencies).

There were no purchases of our Common Stock made during the three months ended September 30, 2024 by us or any of our “affiliated purchasers” as defined in Rule 10b-18(a)(3) under the Exchange Act.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

During the three months ended September 30, 2024, none of the Company's directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933).

Item 6. Exhibits

See Exhibit Index for documents filed or furnished herewith and incorporated herein by reference.

Table of Contents

EXHIBIT INDEX


Exhibit Number						Description
3.1						Fourth Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K, filed with the SEC on June 21, 2024).
3.2						Second Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 of the Company’s Current Report on Form 10-Q, filed with the SEC on August 6, 2024).
3.3						Certificate of Designation of Preferences, Rights and Limitations of Series B-1 Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on June 26, 2020).
10.1†						Transition Letter Agreement, between AdaptHealth Corp. and Joshua Parnes, dated July 2, 2024 (incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed with the SEC on July 3, 2024).
10.2†						Employment Agreement by and between AdaptHealth Corp. and Toby Scott Barnhar t (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the SEC on August 26, 2024).
10.3†						Transition Agreement by and between AdaptHealth Corp. and Shaw Rietkerk (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed with the SEC on August 26, 2024).
10.4						Fourth Amendment, dated as of September 13, 2024 to the Credit Agreement, dated as of January 20, 2021 among AdaptHealth LLC, the guarantors named therein, Regions Bank, as administrative agent and collateral agent and the lenders party thereto (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the SEC on September 16, 2024).
10.5†						Employment Agreement by and between AdaptHealth Corp. and Albert Prast (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the SEC on October 30, 2024).
31.1*						Certification of Chief Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*						Certification of Chief Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32**						Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS***						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH***						XBRL Taxonomy Extension Schema Document
101.CAL***						XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF***						XBRL Taxonomy Extension Definition Linkbase Document
101.LAB***						XBRL Taxonomy Extension Label Linkbase Document
101.PRE***						XBRL Taxonomy Extension Presentation Linkbase Document
Exhibit 104***						Cover Page Interactive Data File - The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

* Filed herewith.

** Furnished herewith.

*** XBRL (eXtensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

† Management contract or compensatory plan or arrangement.

Table of Contents

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	AdaptHealth Corp.

November 5, 2024	By:	/s/ Suzanne Foster
		Suzanne Foster
		Chief Executive Officer and Director
		(Principal Executive Officer)


November 5, 2024	By:	/s/ Jason Clemens
		Jason Clemens
		Chief Financial Officer
		(Principal Financial Officer)


November 5, 2024	By:	/s/ Christine E. Archbold
		Christine E. Archbold
		Chief Accounting Officer
		(Principal Accounting Officer)

Exhibit 31.1

CERTIFICATION

PURSUANT TO RULES 13A-14 AND 15D-14

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Suzanne Foster, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of AdaptHealth Corp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements and other financial information included in this report, fairly present, in all material respects, the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


November 5, 2024			/s/ Suzanne Foster
			Suzanne Foster
			Chief Executive Officer and Director
			(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION

PURSUANT TO RULES 13A-14 AND 15D-14

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Jason Clemens, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of AdaptHealth Corp.;

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


November 5, 2024			/s/ Jason Clemens
			Jason Clemens
			Chief Financial Officer
			(Principal Financial Officer)

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS REQUIRED BY

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of AdaptHealth Corp. (the “Company”) on Form 10-Q for the quarter ended September 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certify that to the best of our knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


November 5, 2024	/s/ Suzanne Foster	Chief Executive Officer and Director
	Suzanne Foster	(Principal Executive Officer)

November 5, 2024	/s/ Jason Clemens	Chief Financial Officer
	Jason Clemens	(Principal Financial Officer)

COVER - shares	9 Months Ended
COVER - shares	Sep. 30, 2024	Nov. 01, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-38399
Entity Registrant Name	AdaptHealth Corp.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-3677704
Entity Address, Address Line One	220 West Germantown Pike
Entity Address, Address Line Two	Suite 250
Entity Address, City or Town	Plymouth Meeting
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19462
City Area Code	610
Local Phone Number	424-4515
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	AHCO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		134,554,889
Amendment Flag	false
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001725255

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash	$ 100,180	$ 77,132
Accounts receivable	401,215	388,910
Inventory	133,490	113,642
Prepaid and other current assets	48,906	69,338
Total current assets	683,791	649,022
Equipment and other fixed assets, net	474,922	495,101
Operating lease right-of-use assets	106,390	110,465
Finance lease right-of-use assets	38,769	31,962
Goodwill	2,707,282	2,724,958
Identifiable intangible assets, net	113,452	130,160
Deferred tax assets	328,106	345,854
Other assets	17,224	21,128
Total Assets	4,469,936	4,508,650
Current liabilities:
Accounts payable and accrued expenses	430,371	391,994
Current portion of long-term debt	16,250	53,368
Current portion of operating lease obligations	30,276	29,270
Current portion of finance lease obligations	12,307	9,122
Contract liabilities	35,842	38,570
Warrant liability	2,221	4,021
Other liabilities	25,758	10,654
Total current liabilities	553,025	536,999
Long-term debt, less current portion	2,013,644	2,094,614
Operating lease obligations, less current portion	80,135	85,529
Finance lease obligations, less current portion	26,098	22,746
Other long-term liabilities	272,846	302,093
Total Liabilities	2,945,748	3,041,981
Commitments and contingencies (note 14)
Stockholders' Equity:
Common Stock, par value of $0.0001 per share, 300,000,000 shares authorized; 134,538,730 and 132,634,850 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively	13	13
Preferred Stock, par value of $0.0001 per share, 5,000,000 shares authorized; 124,060 shares issued and outstanding as of September 30, 2024 and December 31, 2023	1	1
Treasury stock, at cost (2,935,035 and 3,935,035 shares at September 30, 2024 and December 31, 2023, respectively)	(25,548)	(43,267)
Additional paid-in capital	2,152,605	2,149,951
Accumulated deficit	(612,440)	(652,600)
Accumulated other comprehensive income	1,625	4,356
Total stockholders' equity attributable to AdaptHealth Corp.	1,516,256	1,458,454
Noncontrolling interest in subsidiary	7,932	8,215
Total Stockholders' Equity	1,524,188	1,466,669
Total Liabilities and Stockholders' Equity	$ 4,469,936	$ 4,508,650

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common Stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, shares authorized (in shares)	300,000,000	300,000,000
Common Stock, shares issued (in shares)	134,538,730	132,634,850
Common Stock, shares outstanding (in shares)	134,538,730	132,634,850
Preferred Stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred Stock, shares issued (in shares)	124,060	124,060
Preferred Stock, shares outstanding (in shares)	124,060	124,060
Treasury stock, at cost (in shares)	2,935,035	3,935,035

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Net revenue	$ 805,858	$ 804,031	$ 2,404,330	$ 2,341,943
Revenue, Product and Service [Extensible Enumeration]	Health Care, Patient Service [Member]	Health Care, Patient Service [Member]	Health Care, Patient Service [Member]	Health Care, Patient Service [Member]
Costs and expenses:
Cost of net revenue	$ 681,866	$ 693,488	$ 2,036,532	$ 2,022,281
Cost, Product and Service [Extensible Enumeration]	Health Care, Patient Service [Member]	Health Care, Patient Service [Member]	Health Care, Patient Service [Member]	Health Care, Patient Service [Member]
General and administrative expenses	$ 49,242	$ 45,198	$ 154,632	$ 142,797
Depreciation and amortization, excluding patient equipment depreciation	11,263	14,515	34,023	45,596
Goodwill impairment (note 5)	0	511,866	13,078	511,866
Total costs and expenses	742,371	1,265,067	2,238,265	2,722,540
Operating income (loss)	63,487	(461,036)	166,065	(380,597)
Interest expense, net	31,429	32,306	96,939	96,813
Loss on extinguishment of debt	2,273	0	2,273	0
Change in fair value of warrant liability (note 10)	(2,243)	(9,160)	(1,800)	(31,886)
Other loss, net	0	3,317	3,345	6,574
Income (loss) before income taxes	32,028	(487,499)	65,308	(452,098)
Income tax expense (benefit)	8,073	(34,578)	21,931	(30,893)
Net income (loss)	23,955	(452,921)	43,377	(421,205)
Income attributable to noncontrolling interest	1,096	1,155	3,217	3,187
Net income (loss) attributable to AdaptHealth Corp.	$ 22,859	$ (454,076)	$ 40,160	$ (424,392)
Weighted average common shares outstanding - basic (in shares)	134,303	134,825	133,481	134,549
Weighted average common shares outstanding - diluted (in shares)	136,530	134,982	135,441	135,202
Basic net income (loss) per share (note 11) (in dollars per share)	$ 0.16	$ (3.37)	$ 0.28	$ (3.15)
Diluted net income (loss) per share (note 11) (in dollars per share)	$ 0.15	$ (3.43)	$ 0.27	$ (3.37)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 23,955	$ (452,921)	$ 43,377	$ (421,205)
Other comprehensive income (loss):
(Loss) gain on interest rate swap agreements, inclusive of reclassification adjustment, net of tax	(3,223)	66	(2,731)	(285)
Comprehensive income (loss)	20,732	(452,855)	40,646	(421,490)
Income attributable to noncontrolling interest	1,096	1,155	3,217	3,187
Comprehensive income (loss) attributable to AdaptHealth Corp.	$ 19,636	$ (454,010)	$ 37,429	$ (424,677)

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Preferred Stock	Treasury Stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive income	Noncontrolling interest in subsidiary
Common Stock, beginning balance (in shares) at Dec. 31, 2022		134,435,000
Preferred Stock, beginning balance (in shares) at Dec. 31, 2022			124,000
Treasury Stock, beginning balance (in shares) at Dec. 31, 2022				751,000
Balance at beginning of period at Dec. 31, 2022	$ 2,157,758	$ 13	$ 1	$ (13,992)	$ 2,130,148	$ 26,295	$ 8,693	$ 6,600
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation (in shares)		292,000
Equity-based compensation	5,916				5,916
Payments for tax withholdings from restricted stock vesting and stock option exercises	(1,883)				(1,883)
Common Stock issued in connection with employee stock purchase plan (in shares)		53,000
Common Stock issued in connection with employee stock purchase plan	1,021				1,021
Shares purchased under share repurchase program (in shares)		632,000		632,000
Shares purchased under share repurchase program	(9,224)			$ (9,224)
Net (loss) income	16,675					15,707		968
Change in fair value of interest rate swaps, inclusive of reclassification adjustment	(2,805)						(2,805)
Common Stock, ending balance (in shares) at Mar. 31, 2023		134,148,000
Preferred Stock, ending balance (in shares) at Mar. 31, 2023			124,000
Treasury Stock, ending balance (in shares) at Mar. 31, 2023				1,383,000
Balance at end of period at Mar. 31, 2023	2,167,458	$ 13	$ 1	$ (23,216)	2,135,202	42,002	5,888	7,568
Common Stock, beginning balance (in shares) at Dec. 31, 2022		134,435,000
Preferred Stock, beginning balance (in shares) at Dec. 31, 2022			124,000
Treasury Stock, beginning balance (in shares) at Dec. 31, 2022				751,000
Balance at beginning of period at Dec. 31, 2022	2,157,758	$ 13	$ 1	$ (13,992)	2,130,148	26,295	8,693	6,600
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options	$ 500
Shares purchased under share repurchase program (in shares)	631,953
Shares purchased under share repurchase program	$ (9,200)
Net (loss) income	(421,205)
Common Stock, ending balance (in shares) at Sep. 30, 2023		134,991,000
Preferred Stock, ending balance (in shares) at Sep. 30, 2023			124,000
Treasury Stock, ending balance (in shares) at Sep. 30, 2023				1,383,000
Balance at end of period at Sep. 30, 2023	1,739,772	$ 13	$ 1	$ (23,216)	2,145,376	(398,097)	8,408	7,287
Common Stock, beginning balance (in shares) at Mar. 31, 2023		134,148,000
Preferred Stock, beginning balance (in shares) at Mar. 31, 2023			124,000
Treasury Stock, beginning balance (in shares) at Mar. 31, 2023				1,383,000
Balance at beginning of period at Mar. 31, 2023	2,167,458	$ 13	$ 1	$ (23,216)	2,135,202	42,002	5,888	7,568
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation (in shares)		156,000
Equity-based compensation	6,847				6,847
Exercise of stock options (in shares)		214,000
Payments for tax withholdings from restricted stock vesting and stock option exercises	(2,229)				(2,229)
Distribution to non-controlling interest	(2,500)							(2,500)
Net (loss) income	15,041					13,977		1,064
Change in fair value of interest rate swaps, inclusive of reclassification adjustment	2,454						2,454
Common Stock, ending balance (in shares) at Jun. 30, 2023		134,518,000
Preferred Stock, ending balance (in shares) at Jun. 30, 2023			124,000
Treasury Stock, ending balance (in shares) at Jun. 30, 2023				1,383,000
Balance at end of period at Jun. 30, 2023	2,187,071	$ 13	$ 1	$ (23,216)	2,139,820	55,979	8,342	6,132
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation (in shares)		176,000
Equity-based compensation	4,521				4,521
Exercise of stock options (in shares)		215,000
Exercise of stock options	538				538
Payments for tax withholdings from restricted stock vesting and stock option exercises	(513)				(513)
Common Stock issued in connection with employee stock purchase plan (in shares)		82,000
Common Stock issued in connection with employee stock purchase plan	1,010				1,010
Net (loss) income	(452,921)					(454,076)		1,155
Change in fair value of interest rate swaps, inclusive of reclassification adjustment	66						66
Common Stock, ending balance (in shares) at Sep. 30, 2023		134,991,000
Preferred Stock, ending balance (in shares) at Sep. 30, 2023			124,000
Treasury Stock, ending balance (in shares) at Sep. 30, 2023				1,383,000
Balance at end of period at Sep. 30, 2023	$ 1,739,772	$ 13	$ 1	$ (23,216)	2,145,376	(398,097)	8,408	7,287
Common Stock, beginning balance (in shares) at Dec. 31, 2023	132,634,850	132,635,000
Preferred Stock, beginning balance (in shares) at Dec. 31, 2023	124,060		124,000
Treasury Stock, beginning balance (in shares) at Dec. 31, 2023	3,935,035			3,935,000
Balance at beginning of period at Dec. 31, 2023	$ 1,466,669	$ 13	$ 1	$ (43,267)	2,149,951	(652,600)	4,356	8,215
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation (in shares)		300,000
Equity-based compensation	4,533				4,533
Exercise of stock options (in shares)		177,000
Exercise of stock options	545				545
Payments for tax withholdings from restricted stock vesting and stock option exercises	(1,072)				(1,072)
Common Stock issued in connection with employee stock purchase plan (in shares)		83,000
Common Stock issued in connection with employee stock purchase plan	607				607
Net (loss) income	(1,109)					(2,134)		1,025
Change in fair value of interest rate swaps, inclusive of reclassification adjustment	856						856
Common Stock, ending balance (in shares) at Mar. 31, 2024		133,195,000
Preferred Stock, ending balance (in shares) at Mar. 31, 2024			124,000
Treasury Stock, ending balance (in shares) at Mar. 31, 2024				3,935,000
Balance at end of period at Mar. 31, 2024	$ 1,471,029	$ 13	$ 1	$ (43,267)	2,154,564	(654,734)	5,212	9,240
Common Stock, beginning balance (in shares) at Dec. 31, 2023	132,634,850	132,635,000
Preferred Stock, beginning balance (in shares) at Dec. 31, 2023	124,060		124,000
Treasury Stock, beginning balance (in shares) at Dec. 31, 2023	3,935,035			3,935,000
Balance at beginning of period at Dec. 31, 2023	$ 1,466,669	$ 13	$ 1	$ (43,267)	2,149,951	(652,600)	4,356	8,215
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	245,000
Exercise of stock options	$ 700
Net (loss) income	$ 43,377
Common Stock, ending balance (in shares) at Sep. 30, 2024	134,538,730	134,539,000
Preferred Stock, ending balance (in shares) at Sep. 30, 2024	124,060		124,000
Treasury Stock, ending balance (in shares) at Sep. 30, 2024	2,935,035			2,935,000
Balance at end of period at Sep. 30, 2024	$ 1,524,188	$ 13	$ 1	$ (25,548)	2,152,605	(612,440)	1,625	7,932
Common Stock, beginning balance (in shares) at Mar. 31, 2024		133,195,000
Preferred Stock, beginning balance (in shares) at Mar. 31, 2024			124,000
Treasury Stock, beginning balance (in shares) at Mar. 31, 2024				3,935,000
Balance at beginning of period at Mar. 31, 2024	1,471,029	$ 13	$ 1	$ (43,267)	2,154,564	(654,734)	5,212	9,240
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation (in shares)		182,000
Equity-based compensation	5,218				5,218
Payments for tax withholdings from restricted stock vesting and stock option exercises	(261)				(261)
Distribution to non-controlling interest	(3,500)							(3,500)
Net (loss) income	20,531					19,435		1,096
Change in fair value of interest rate swaps, inclusive of reclassification adjustment	(364)						(364)
Common Stock, ending balance (in shares) at Jun. 30, 2024		133,377,000
Preferred Stock, ending balance (in shares) at Jun. 30, 2024			124,000
Treasury Stock, ending balance (in shares) at Jun. 30, 2024				3,935,000
Balance at end of period at Jun. 30, 2024	1,492,653	$ 13	$ 1	$ (43,267)	2,159,521	(635,299)	4,848	6,836
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation (in shares)		79,000
Equity-based compensation	863				863
Exercise of stock options (in shares)		44,000
Exercise of stock options	198				198
Payments for tax withholdings from restricted stock vesting and stock option exercises	(400)				(400)
Common Stock issued in connection with employee stock purchase plan (in shares)		39,000
Common Stock issued in connection with employee stock purchase plan	392				392
Issuance of Settlement Shares (in shares)		1,000,000		(1,000,000)
Issuance of Settlement Shares	9,750			$ 17,719	(7,969)
Net (loss) income	23,955					22,859		1,096
Change in fair value of interest rate swaps, inclusive of reclassification adjustment	$ (3,223)						(3,223)
Common Stock, ending balance (in shares) at Sep. 30, 2024	134,538,730	134,539,000
Preferred Stock, ending balance (in shares) at Sep. 30, 2024	124,060		124,000
Treasury Stock, ending balance (in shares) at Sep. 30, 2024	2,935,035			2,935,000
Balance at end of period at Sep. 30, 2024	$ 1,524,188	$ 13	$ 1	$ (25,548)	$ 2,152,605	$ (612,440)	$ 1,625	$ 7,932

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income (loss)	$ 43,377	$ (421,205)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization, including patient equipment depreciation	274,797	290,419
Goodwill impairment	13,078	511,866
Equity-based compensation	10,614	17,284
Change in fair value of warrant liability	(1,800)	(31,886)
Reduction in the carrying amount of operating lease right-of-use assets	24,902	26,309
Reduction in the carrying amount of finance lease right-of-use assets	7,927	3,821
Deferred income tax expense (benefit)	18,664	(37,033)
Change in fair value of interest rate swaps, net of reclassification adjustment	(367)	(1,394)
Amortization of deferred financing costs	4,247	3,926
Loss on extinguishment of debt	2,273	0
Payment of contingent consideration from an acquisition	(1,850)	0
Other	569	350
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	(12,305)	(10,043)
Inventory	(21,474)	12,769
Prepaid and other assets	23,656	10,956
Operating lease obligations	(25,212)	(26,959)
Operating liabilities	30,328	(23,780)
Net cash provided by operating activities	391,424	325,400
Cash flows from investing activities:
Purchases of equipment and other fixed assets	(228,719)	(248,816)
Proceeds from the sale of assets	5,316	0
Payments for business acquisitions, net of cash acquired	0	(17,917)
Payments for cost method investments	0	(128)
Net cash used in investing activities	(223,403)	(266,861)
Cash flows from financing activities:
Proceeds from borrowings on long-term debt and lines of credit	253,477	50,000
Repayments on long-term debt and lines of credit	(373,477)	(75,000)
Repayments of finance lease obligations	(8,261)	(4,558)
Payments for shares purchased under share repurchase program	0	(9,224)
Proceeds from the exercise of stock options	742	538
Proceeds received in connection with employee stock purchase plan	999	2,031
Payments relating to the Tax Receivable Agreement	(1,432)	(3,202)
Payments of debt financing costs	(6,429)	0
Distributions to noncontrolling interest	(3,500)	(2,500)
Payments for tax withholdings from restricted stock vesting and stock option exercises	(1,794)	(5,253)
Payments of contingent consideration and deferred purchase price from acquisitions	(5,298)	(1,500)
Net cash used in financing activities	(144,973)	(48,668)
Net increase in cash	23,048	9,871
Cash at beginning of period	77,132	46,272
Cash at end of period	100,180	56,143
Supplemental disclosures:
Cash paid for interest	112,519	113,083
Cash paid for income taxes, net of refunds	13,015	5,727
Noncash investing and financing activities:
Unpaid equipment and other fixed asset purchases at end of period	46,720	32,481
Assets subject to operating lease obligations	24,604	8,179
Operating lease obligations	(24,604)	(8,179)
Write-off of assets subject to operating lease obligations	(3,631)	0
Write-off of operating lease obligations	3,631	0
Assets subject to finance lease obligations	15,665	19,726
Finance lease obligations	(15,665)	(19,726)
Deferred purchase price in connection with acquisitions	$ 0	$ 50

General Information

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

General Information

(a) Basis of Presentation

(b) Basis of Consolidation

(d) Accounting Estimates

(e) Valuation of Goodwill

(f) Long-Lived Assets


Tradenames			5 to 10 years
Payor contracts			10 years
Developed technology			5 years

The Company did not recognize any impairment charges on long-lived assets for the nine months ended September 30, 2024 and 2023.

(g) Equity-based Compensation

(h) Business Segment

(i) Accounting for Leases

See Note 12, Leases, for additional information.

(j) Recently Issued Accounting Pronouncements Not Yet Adopted

Revenue Recognition and Accounts Receivable

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition and Accounts Receivable

Revenue Recognition

The composition of net revenue by payor type for the three and nine months ended September 30, 2024 and 2023 are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Insurance	$	490,072	$	486,136	$	1,461,224	$	1,397,748
Government	208,309		220,351		617,653		618,860
Patient pay	107,477		97,544		325,453		325,335
Net revenue	$	805,858	$	804,031	$	2,404,330	$	2,341,943

The composition of net revenue by core product lines for the three and nine months ended September 30, 2024 and 2023 are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net sales revenue:
Sleep	$	237,537	$	227,005	$	696,424	$	656,311
Diabetes	137,099		157,328		431,339		464,893
Supplies to the home	43,534		48,349		132,447		143,227
Respiratory	8,148		8,164		23,723		24,284
HME	24,331		27,095		75,916		82,895
Other	60,044		64,184		173,389		174,403
Total net sales revenue	$	510,693	$	532,125	$	1,533,238	$	1,546,013

Net revenue from fixed monthly equipment reimbursements:
Sleep	$	81,530	$	88,387	$	244,273	$	256,092
Diabetes	2,438		2,609		7,099		10,326
Respiratory	140,930		142,919		417,061		423,531
HME	24,551		25,087		70,472		71,402
Other	12,866		12,904		36,074		34,579
Total net revenue from fixed monthly equipment reimbursements	$	262,315	$	271,906	$	774,979	$	795,930

Net revenue from capitated revenue arrangements:
Sleep	$	7,380	$	—	$	21,408	$	—
Diabetes	1,535		$	—	4,679		—
Supplies to the home	3,246		$	—	9,536		—
Respiratory	14,939		$	—	44,521		—
HME	4,115		$	—	11,325		—
Other	1,635		$	—	4,644		—
Total net revenue from capitated revenue arrangements	$	32,850	$	—	$	96,113	$	—

Total net revenue:
Sleep	$	326,447	$	315,392	$	962,105	$	912,403
Diabetes	141,072		159,937		443,117		475,219
Supplies to the home	46,780		48,349		141,983		143,227
Respiratory	164,017		151,083		485,305		447,815
HME	52,997		52,182		157,713		154,297
Other	74,545		77,088		214,107		208,982
Total net revenue	$	805,858	$	804,031	$	2,404,330	$	2,341,943

Accounts Receivable

Acquisitions

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Acquisitions


Cash	$	18,173
Deferred payments	50
Total	$	18,223


Cash	$	256
Accounts receivable	1,798
Inventory	1,413
Prepaid and other current assets	10
Equipment and other fixed assets	9,008
Operating lease right-of-use assets	5,506
Finance lease right-of-use assets	200
Goodwill	7,297
Accounts payable and accrued expenses	(713)
Other current liabilities	(846)
Operating lease liabilities	(5,506)
Finance lease liabilities	(200)
Net assets acquired	$	18,223

Equipment and Other Fixed Assets

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Equipment and Other Fixed Assets

Equipment and other fixed assets as of September 30, 2024 and December 31, 2023 are as follows (in thousands):


	September 30, 2024		December 31, 2023
Patient medical equipment	$	815,523	$	791,349
Computers and software	93,014		85,509
Delivery vehicles	33,638		35,021
Other	22,737		20,203
Gross carrying value	964,912		932,082
Less accumulated depreciation	(489,990)		(436,981)
Equipment and other fixed assets, net	$	474,922	$	495,101

Goodwill and Identifiable Intangible Assets

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Identifiable Intangible Assets


	Gross carrying amount
Balance at December 31, 2023	$	2,724,958
Goodwill impairment	(13,078)
Write off from sale of assets	(4,598)
Balance at September 30, 2024	$	2,707,282


	September 30, 2024
			Weighted-Average Remaining Life (Years)
Tradenames, net of accumulated amortization of $47,927	$	64,873	6.0
Payor contracts, net of accumulated amortization of $34,366	47,634		5.8
Developed technology, net of accumulated amortization of $5,355	945		0.8
Identifiable intangible assets, net	$	113,452


	December 31, 2023
			Weighted-Average Remaining Life (Years)
Tradenames, net of accumulated amortization of $38,314	$	74,486	6.6
Payor contracts, net of accumulated amortization of $28,216	53,784		6.6
Developed technology, net of accumulated amortization of $4,410	1,890		1.5
Identifiable intangible assets, net	$	130,160

Future amortization expense related to identifiable intangible assets is estimated to be as follows (in thousands):


Twelve months ending September 30,
2025	$	21,828
2026	19,618
2027	18,190
2028	17,936
2029	17,936
Thereafter	17,944
Total	$	113,452

The Company did not recognize any impairment charges related to identifiable intangible assets during the nine months ended September 30, 2024 and 2023.

Fair Value of Assets and Liabilities

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities


Level input						Input Definition
Level 1						Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
Level 2						Inputs, other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date.
Level 3						Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.

information available to management as of September 30, 2024 and December 31, 2023. These estimates are not necessarily indicative of the amounts the Company could ultimately realize.


(in thousands)	Level 1		Level 2		Level 3
September 30, 2024
Assets
Interest rate swap agreements-short term	$	—	$	2,115	$	—
Interest rate swap agreements-long term	—		71		—
Total assets measured at fair value	$	—	$	2,186	$	—

Liabilities
Warrant liability	—		—		2,221
Total liabilities measured at fair value	$	—	$	—	$	2,221


(in thousands)	Level 1		Level 2		Level 3
December 31, 2023
Assets
Interest rate swap agreements-short term	$	—	$	4,482	$	—
Interest rate swap agreements-long term	—		986		—
Total assets measured at fair value	$	—	$	5,468	$	—

Liabilities
Acquisition-related contingent consideration-short term	$	—	$	—	$	6,850
Warrant liability	—		—		4,021
Total liabilities measured at fair value	$	—	$	—	$	10,871

Interest Rate Swaps

Acquisition-Related Contingent Consideration


Nine Months Ended September 30, 2024	Beginning Balance		Payments		Change in Fair Value		Ending Balance
Contingent consideration - Level 3 liabilities	$	6,850	$	(6,850)	$	—	$	—
Nine Months Ended September 30, 2023
Contingent consideration - Level 3 liabilities	$	7,500	$	—	$	350	$	7,850

Warrant Liability

Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis

Derivative Instruments and Hedging Activities

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities


	September 30, 2024		December 31, 2023
Balance Sheet Location	Asset
Prepaid and other current assets	$	2,115	$	4,482
Other assets	71		986
Total	$	2,186	$	5,468

Accounts Payable and Accrued Expenses

9 Months Ended

Sep. 30, 2024

Accounts Payable and Accrued Liabilities, Current [Abstract]

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of September 30, 2024 and December 31, 2023 consisted of the following (in thousands):


	September 30, 2024		December 31, 2023
Accounts payable	$	266,476	$	211,504
Employee-related accruals	58,606		47,462
Accrued interest	9,990		29,327
Litigation reserves	3,935		57,340
Other	91,364		46,361
Total	$	430,371	$	391,994

Debt

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Debt

The following is a summary of long term-debt as of September 30, 2024 and December 31, 2023 (in thousands):


	September 30, 2024		December 31, 2023
Term loan	$	600,000	$	720,000
Senior unsecured notes	1,450,000		1,450,000
Unamortized deferred financing fees	(20,106)		(22,018)
	2,029,894		2,147,982
Current portion	(16,250)		(53,368)
Long-term portion	$	2,013,644	$	2,094,614

Term Loan

Revolving Credit Facility

Senior Unsecured Notes

Stockholders' Equity

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Stockholders' Equity

Treasury Stock

Warrants

A reconciliation of the changes in the warrant liability during the nine months ended September 30, 2024 and 2023 was as follows (in thousands):


Estimated fair value of warrant liability at December 31, 2023	$	4,021
Change in estimated fair value of the warrant liability	(1,800)
Estimated fair value of warrant liability at September 30, 2024	$	2,221

Estimated fair value of warrant liability at December 31, 2022	$	38,503
Change in estimated fair value of the warrant liability	(31,886)
Estimated fair value of warrant liability at September 30, 2023	$	6,617

Equity-based Compensation

Stock Options


	Number of Options	Weighted-Average Grant Date Fair Value per Share		Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Term
Outstanding, December 31, 2023	2,219	$	3.75	$	19.36	5.1 Years
Expired	(735)	$	4.58	$	23.38
Outstanding, September 30, 2024	1,484	$	3.34	$	17.38	0.9 Years

The following table provides the activity for all outstanding stock options during the nine months ended September 30, 2024 (in thousands, except per share data):


	Number of Options	Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Term
Outstanding, December 31, 2023	3,409	$	14.90	4.9 Years
Exercised	(245)	$	3.97
Expired	(735)	$	23.38
Outstanding, September 30, 2024	2,429	$	13.43	2.3 Years

Restricted Stock

During the nine months ended September 30, 2024, the Company granted the following shares of restricted stock and restricted stock units:

•122,663 shares of restricted stock to the Company's non-employee directors which vest approximately one year following the grant date. The grant-date fair value of these awards was $1.2 million.

•Less than 25th Percentile – No payout

•Greater than or equal to 25th Percentile – 50% of Performance RSUs

•Equal to 50th Percentile – 100% of Performance RSUs

•Greater than or equal to 75th Percentile – 200% of Performance RSUs

Activity related to the Company’s non-vested restricted stock grants for the nine months ended September 30, 2024 is presented below (in thousands, except per share data):


	Number of Shares of Restricted Stock	Weighted-Average Grant Date Fair Value per Share
Non-vested balance, December 31, 2023	2,068	$	19.16
Granted	3,104	$	12.13
Vested	(754)	$	37.25
Forfeited	(1,023)	$	15.73
Non-vested balance, September 30, 2024	3,395	$	14.02

Equity-Based Compensation Expense

Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Computations of basic and diluted net income (loss) per share were as follows (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator
Net income (loss) attributable to AdaptHealth Corp.	$	22,859	$	(454,076)	$	40,160	$	(424,392)
Less: Earnings allocated to participating securities (1)	1,933		—		3,415		—
Net income (loss) for basic EPS	$	20,926	$	(454,076)	$	36,745	$	(424,392)
Change in fair value of warrant liability (2)	—		(9,160)		—		(31,886)
Net income (loss) for diluted EPS	$	20,926	$	(463,236)	$	36,745	$	(456,278)

Denominator (1) (2)
Basic weighted-average common shares outstanding	134,303		134,825		133,481		134,549
Add: Warrants (2)	—		157		—		653
Add: Stock options	301		—		245		—
Add: Unvested restricted stock	1,926		—		1,715		—
Diluted weighted-average common shares outstanding	136,530		134,982		135,441		135,202

Basic net income (loss) per share	$	0.16	$	(3.37)	$	0.28	$	(3.15)
Diluted net income (loss) per share	$	0.15	$	(3.43)	$	0.27	$	(3.37)


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Preferred Stock	12,406	12,406	12,406	12,406
Warrants	3,872	—	3,872	—
Stock options	2,128	3,420	2,184	3,420
Unvested restricted stock	1,427	2,057	1,638	2,057
Total	19,833	17,883	20,100	17,883

Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

The Company is also party to certain sublease arrangements related to real estate leases, where the Company acts as the lessee and intermediate lessor.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Operating lease costs	$	10,791	$	11,114	$	33,521	$	32,186
Finance lease costs:
Amortization of ROU assets	$	3,064	$	1,739	$	7,857	$	4,746
Interest on lease liabilities	$	663	$	—	$	1,721	$	—
Other lease costs and income:
Variable leases costs (1)	$	6,392	$	5,373	$	18,458	$	15,932
Sublease income	$	101	$	358	$	638	$	1,145

The following table provides the weighted average remaining lease terms and weighted average discount rates for the Company’s leases as of September 30, 2024 and December 31, 2023:


	September 30, 2024		December 31, 2023
Weighted average remaining lease term, weighted based on lease liability balances:
Operating leases	5.1 years		5.6 years
Finance leases	3.2 years		3.6 years
Weighted average discount rate, weighted based on remaining balance of lease payments:
Operating leases	4.8	%	4.4	%
Finance leases	6.8	%	6.7	%


	Operating Leases		Finance Leases
2024	$	9,150	$	3,726
2025	33,517		14,360
2026	25,954		13,098
2027	17,717		9,431
2028	13,603		2,221
Thereafter	26,096		—
Total future undiscounted lease payments	$	126,037	$	42,836
Less: amount representing interest	(15,626)		(4,431)
Present value of future lease payments (lease liability)	$	110,411	$	38,405


	Nine Months Ended September 30,
Cash paid for amounts included in the measurement of lease liabilities:	2024		2023
Operating cash payments for operating leases	$	31,130	$	32,045
Financing cash payments for finance leases	$	8,261	$	4,558
Lease liabilities arising from obtaining right-of-use assets:
Operating leases	$	24,604	$	8,179
Finance leases	$	15,665	$	19,726

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company is subject to U.S. federal, state, and local income taxes. For the three months ended September 30, 2024 and 2023, the Company recorded income tax expense of $8.1 million and an income tax benefit of $34.6 million, respectively. For the nine months ended September 30, 2024 and 2023, the Company recorded income tax expense of $21.9 million and an income tax benefit of $30.9 million, respectively. For the nine months ended September 30, 2024, the Company recognized a $1.0 million income tax benefit, and corresponding increase to net deferred tax assets, related to non-cash goodwill impairment charges totaling $13.1 million. For the three and nine months ended September 30, 2023, the Company recognized a $39.9 million discrete income tax benefit, and corresponding increase to net deferred tax assets, related to a non-cash goodwill impairment charge of $511.9 million. See Note 5, Goodwill and Identifiable Intangible Assets, for additional details. As of September 30, 2024 and December 31, 2023, the Company had an unrecognized tax benefit of $3.2 million and $6.6 million, respectively. Tax Receivable Agreement AdaptHealth Corp. is party to a Tax Receivable Agreement ("TRA") with certain current and former members of AdaptHealth Holdings LLC, a Delaware limited liability company ("AdaptHealth Holdings"). The TRA provides for the payment by AdaptHealth Corp. of 85% of the tax savings, if any, that AdaptHealth Corp. realizes (or is deemed to realize in certain circumstances) as a result of (i) certain tax attributes of the corresponding sellers existing prior to the Business Combination; (ii) certain increases in tax basis resulting from exchanges of New AdaptHealth Units and shares of Class B Common Stock; (iii) imputed interest deemed to be paid by the Company as a result of payments it makes under the TRA; and (iv) certain increases in tax basis resulting from payments the Company makes under the TRA. Under the TRA, the benefits deemed realized by the Company as a result of the increase in tax basis attributable to the AdaptHealth Holdings members generally will be computed by comparing the actual income tax liability of the Company to the amount of such taxes that the Company would have been required to pay had there been no such increase in tax basis. At September 30, 2024, the Company's liability relating to the TRA was $290.2 million, of which $24.3 million and $265.9 million is included in other current liabilities and other long-term liabilities, respectively, in the accompanying consolidated balance sheets. At December 31, 2023, the Company’s liability relating to the TRA was $291.6 million, of which $1.5 million and $290.1 million is included in other liabilities and other long-term liabilities, respectively, in the accompanying consolidated balance sheets.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business that cover a wide range of matters. In accordance with FASB ASC Topic 450, Accounting for Contingencies, the Company records accruals for such loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If there is no probable estimate within a range of reasonably possible outcomes, the Company’s policy is to record at the low end of the range of such reasonably possible outcomes. Significant judgment is required to determine both probability and the estimated amount. The Company reviews its accruals at least quarterly and adjusts accordingly to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information. At this time, the Company has no material accruals related to lawsuits, claims, investigations and proceedings, except as disclosed below. While there can be no assurance, based on the Company’s evaluation of information currently available, the Company’s management believes any liability that may ultimately result from resolution of such loss contingencies will not have a material adverse effect on the Company’s financial conditions or results of operations. However, the Company’s assessment may be affected by limited information. Accordingly, the Company’s assessment may change in the future based upon availability of new information and further developments in the proceedings of such matters. The results of legal proceedings are inherently uncertain, and material adverse outcomes are possible. Professional legal fees are expensed as they are incurred. On July 29, 2021, Robert Charles Faille Jr., a purported shareholder of the Company, filed a purported class action complaint against the Company and certain of its current and former officers in the United States District Court for the Eastern District of Pennsylvania for alleged violations of the federal securities laws arising from allegedly false and misleading statements and/or failures to disclose material information regarding changes made to the methodology used to calculate the Company’s organic growth trajectory. On October 14, 2021, the court appointed Delaware County Employees Retirement System and the Bucks County Employees Retirement System as Lead Plaintiffs. On November 22, 2021, Lead Plaintiffs filed a consolidated complaint against the Company and certain of its current and former officers and directors on behalf of shareholders that purchased or otherwise acquired the Company’s stock and options between November 8, 2019 and July 16, 2021 (as to the complaint, the “Consolidated Complaint”; as to the action, the “Consolidated Class Action”). The Consolidated Complaint generally alleged that the defendants violated federal securities laws by making allegedly false and misleading statements and/or failing to disclose material information regarding changes made to the methodology used to calculate the Company’s organic growth trajectory and the Company’s former Co-CEO’s alleged tax fraud arising from certain past private activity. The Consolidated Complaint sought unspecified damages. On January 20, 2022, the defendants filed a motion to dismiss the Consolidated Complaint, which the court denied on June 9, 2022. On June 7, 2023, the court entered an order staying the Consolidated Class Action pending the outcome of a private mediation between the parties. On February 26, 2024, the defendants entered into a stipulation and agreement of settlement with the Lead Plaintiffs (the “Securities Settlement”). On March 5, 2024, the court granted preliminary approval of the settlement. On July 10, 2024, the court entered a judgment approving the class action settlement. The judgment certified the putative class for settlement purpose, found that the settlement is fair, reasonable, and adequate in all respects, and subject to certain exclusions and limitations, released claims on behalf of the settlement class that were asserted or could have been asserted in the Consolidated Class Action against the defendants. The Company’s portion of the settlement consists of (i) $32.2 million of cash from the Company’s insurance carriers; (ii) $17.8 million of cash from the Company; (iii) 1 million shares of the Company’s Common Stock (the “Settlement Shares”), which had a fair value of $7.3 million recognized at December 31, 2023; and (iv) the implementation of certain corporate governance reforms. All of the aforementioned cash consideration has been paid consistent with the Securities Settlement during the nine months ended September 30, 2024. During the nine months ended September 30, 2024, prior to the court approval of the class action settlement on July 10, 2024, the Company recognized a pre-tax expense of $2.4 million for the change in fair value of the Settlement Shares, which is included in other loss, net in the accompanying consolidated statements of operations. In July 2024, the Company issued the Settlement Shares from available Treasury Stock. In connection with the issuance, the Company eliminated the outstanding $9.7 million liability through a reduction to Treasury Stock and Additional paid-in capital of $17.7 million and $8.0 million, respectively. On March 7, 2024, the Company entered into a settlement agreement with its directors and officers liability insurers to resolve a proceeding that the Company filed in Delaware Superior Court concerning coverage in connection with the Consolidated Class Action and the Derivative Action discussed immediately below. The insurance settlement exhausted $35.0 million in D&O coverage limits available to the Company for the policy period from November 8, 2020 to November 8, 2021. On December 6, 2021, a putative shareholder of the Company, Carol Hessler (the “Derivative Plaintiff”), filed a shareholder derivative complaint against certain current and former directors and officers of the Company in the United States District Court for the Eastern District of Pennsylvania (as to the complaint, the “Derivative Complaint”; as to the action, the “Derivative Action”). The Derivative Complaint generally alleges that the defendants breached their fiduciary duties owed to the Company by, among other things, allegedly causing or allowing misrepresentations and/or omissions regarding changes made to the methodology used to calculate the Company’s organic growth and the Company’s former Co-CEO’s alleged criminal activity and engaging in insider trading. The Derivative Complaint also alleges claims for waste of corporate assets and unjust enrichment. Finally, the Derivative Complaint alleges that certain of the individual defendants violated Section 14(a) of the Securities Exchange Act by allegedly negligently issuing, causing to be issued, and participating in the issuance of materially misleading statements to stockholders in the Company’s Proxy Statements on Schedule DEF 14A in connection with a Special Meeting of Stockholders, held on March 3, 2021, and the 2021 Annual Meeting of Stockholders, held on July 27, 2021. The Derivative Complaint seeks, among other things, an award of money damages. On March 4, 2022, the parties to the Derivative Action stipulated to stay the Derivative Action pending final resolution of the Consolidated Class Action. On March 7, 2022, the court so-ordered the parties’ stipulation. On April 23, 2024, defendants entered into a stipulation and agreement of settlement with the Derivative Plaintiff. In exchange for full releases, the proposed settlement consists of (i) $0.9 million in attorneys’ fees and expenses, which will be funded with cash from the Company; and (ii) the implementation of corporate governance reforms separate from those negotiated in Securities Settlement. For the nine months ended September 30, 2024, the Company recorded a pre-tax expense of $0.9 million associated with the settlement, which is included in other loss, net in the accompanying consolidated statements of operations. As of September 30, 2024, the Company recorded a liability of $0.9 million relating to the settlement; such liability is included in accounts payable and accrued expenses in the accompanying consolidated balance sheets. On June 25, 2024, the court granted preliminary approval of the settlement, and set the final approval hearing for November 13, 2024. Upon the effectiveness of the proposed settlement, the Company and its directors and officers as well as the other defendants named in the Derivative Complaint will be released from the claims that were asserted or could have been asserted in the Derivative Action, with certain limitations, by class members participating in the settlement. The Company has always maintained, and continues to believe, that it did not engage in any wrongdoing or otherwise commit any violation of federal or state securities laws or other laws. The settlement includes no admission of liability or wrongdoing and is subject to court approval. There can be no assurance that the settlement will be finalized and approved and, even if approved, whether the conditions to settlement will be satisfied, and the actual outcome of this matter may differ materially from the terms of the settlement described herein. On May 2, 2022, the U.S. Attorney’s Office for the Southern District of New York issued a civil investigative demand to a subsidiary of the Company, pursuant to the False Claims Act, 31 U.S.C. § 3733 ("FCA") surrounding whether the subsidiary submitted false claims in violation of the FCA related to its billing of, and reimbursements from, federal health care programs for ventilators provided to patients from January 1, 2015 to the present. The Company is fully cooperating with the investigation. Given the stage of the investigation, it is not possible to determine whether it will have a material adverse effect on the Company. On October 24, 2023, Allegheny County Employees’ Retirement System, a purported shareholder of the Company, filed a purported class action complaint against the Company and certain of its current and former officers, and certain underwriters in the United States District Court for the Eastern District of Pennsylvania. On January 23, 2024, the court entered an order appointing Allegheny County Employees' Retirement System, International Union of Operating Engineers, Local No. 793, Members Pension Benefit Trust of Ontario, and City of Tallahassee Pension Plan as Lead Plaintiffs. On May 14, 2024, Lead Plaintiffs filed a consolidated complaint against the Company and certain of its current and former officers and directors, and certain underwriters, on behalf of shareholders that purchased or otherwise acquired the Company’s stock between August 4, 2020 and November 7, 2023 (as to the complaint the “Allegheny County Consolidated Complaint”; as to the action, the “Allegheny County Consolidated Class Action”). The Allegheny County Consolidated Complaint alleges, among other things, that the defendants violated federal securities laws by making allegedly false and misleading statements and/or failing to disclose material information regarding (i) the Company’s billing practices with respect to its diabetes product category, and (ii) the Company’s compliance programs and integration with respect to acquired companies. The Allegheny County Consolidated Complaint seeks unspecified damages. On July 23, 2024, the defendants filed a motion to dismiss the Allegheny County Consolidated Complaint. Plaintiffs filed their opposition brief on October 1, 2024; and defendants’ reply brief is due to be filed on November 15, 2024. The Company intends to vigorously defend against the allegations contained in the Allegheny County Complaint, but there can be no assurance that the defense will be successful. On March 20, 2024, a putative shareholder of the Company, Weiding Wu, filed a shareholder derivative complaint related to the allegations in the Allegheny County Complaint, and against certain current and former directors and officers of the Company in the United States District Court for the Eastern District of Pennsylvania (as to the complaint, the “Wu Derivative Complaint”; as to the action, the “Wu Derivative Action”). The Wu Derivative Complaint alleges, among other things, that the defendants breached their fiduciary duties and violated federal securities laws by making allegedly false and misleading statements and/or failing to disclose material information regarding the Company’s organic growth in its diabetes product category. The Wu Derivative Complaint also alleges claims for unjust enrichment, waste of corporate assets, abuse of control, and gross mismanagement. The Derivative Complaint seeks, among other things, an award of money damages. On July 25, 2024, the parties to the Wu Derivative Action stipulated to stay the Wu Derivative Action pending final resolution of the Allegheny County Consolidated Class Action. On July 26, 2024, the court so-ordered the parties’ stipulation. The Company intends to vigorously defend against the allegations contained in the Wu Derivative Complaint, but there can be no assurance that the defense will be successful. On July 29, 2024, the U.S. Attorney’s Office for the District of South Carolina issued a civil investigative demand to the Company pursuant to the False Claims Act, 31 U.S.C. § 3733 ("FCA") surrounding whether the Company submitted false claims in violation of the FCA related to its billing of, and reimbursements from, federal health care programs for humidifiers that are integrated with CPAP devices and provided to patients from January 1, 2017 to the present. The Company is fully cooperating with the investigation. Given the stage of the investigation, it is not possible to determine whether it will have a material adverse effect on the Company.

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company and one of its former executive officers who is a current member of the board of directors and shareholder own an equity interest in a vendor of the Company that provides automated order intake software. The individual’s equity ownership is less than 1%. The expense related to this vendor was $3.8 million and $3.1 million for the three months ended September 30, 2024 and 2023, respectively, and $10.8 million and $8.0 million for the nine months ended September 30, 2024 and 2023, respectively. The Company accounts for this investment under the cost method of accounting based on its level of equity ownership. As of September 30, 2024 and December 31, 2023, the Company had an immaterial outstanding accounts payable balance to this vendor. A director of the Company serves on the board of directors of a third-party payor that does business with the Company in the normal course of providing services to patients. Net revenue from this third-party payor was approximately 1.0% of the Company’s consolidated net revenue during the three and nine months ended September 30, 2024 and 2023. As of September 30, 2024 and December 31, 2023, the Company had an immaterial outstanding accounts receivable balance from this third-party payor. A director of the Company is an employee of a beneficial owner of more than 5% of the Company’s Common Stock as of September 30, 2024. This beneficial owner is also a minority shareholder of a vendor that provides medical equipment and supplies to the Company in the normal course of business. Payments to this vendor were $22.5 million and $3.5 million for the three months ended September 30, 2024 and 2023, respectively, and $50.6 million and $24.1 million, for the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024 and December 31, 2023, the Company had an immaterial outstanding accounts payable balance to this vendor.

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company evaluated subsequent events for the period from September 30, 2024 through the date that the Company’s consolidated financial statements were available to be issued. Subsequent to September 30, 2024, the Company realigned its reportable segments as a result of recent organizational changes. Going forward, the Company will report financial results across the following four segments which reflect the way the Company's chief operating decision maker assesses performance and allocates resources: Sleep Health, Respiratory Health, Diabetes Health, and Wellness at Home. The Company will recast all prior periods presented to reflect this change in the December 31, 2024 Annual Report on Form 10-K, including in the notes to the consolidated financial statements.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net income (loss) attributable to AdaptHealth Corp.	$ 22,859	$ (454,076)	$ 40,160	$ (424,392)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

General Information (Policies)

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Consolidation

Concentration of Credit Risk

Accounting Estimates

Valuation of Goodwill

Long-Lived Assets


Tradenames			5 to 10 years
Payor contracts			10 years
Developed technology			5 years

Equity-based Compensation

Business Segment

Accounting for Leases

See Note 12, Leases, for additional information.

Recently Issued Accounting Pronouncements Not Yet Adopted

General Information (Tables)

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of useful lives of acquired intangible assets

The following table summarizes the useful lives of the Company’s identifiable intangible assets:


Tradenames			5 to 10 years
Payor contracts			10 years
Developed technology			5 years

Revenue Recognition and Accounts Receivable (Tables)

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of composition of net revenues by payor type and core service lines

The composition of net revenue by payor type for the three and nine months ended September 30, 2024 and 2023 are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Insurance	$	490,072	$	486,136	$	1,461,224	$	1,397,748
Government	208,309		220,351		617,653		618,860
Patient pay	107,477		97,544		325,453		325,335
Net revenue	$	805,858	$	804,031	$	2,404,330	$	2,341,943

The composition of net revenue by core product lines for the three and nine months ended September 30, 2024 and 2023 are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net sales revenue:
Sleep	$	237,537	$	227,005	$	696,424	$	656,311
Diabetes	137,099		157,328		431,339		464,893
Supplies to the home	43,534		48,349		132,447		143,227
Respiratory	8,148		8,164		23,723		24,284
HME	24,331		27,095		75,916		82,895
Other	60,044		64,184		173,389		174,403
Total net sales revenue	$	510,693	$	532,125	$	1,533,238	$	1,546,013

Net revenue from fixed monthly equipment reimbursements:
Sleep	$	81,530	$	88,387	$	244,273	$	256,092
Diabetes	2,438		2,609		7,099		10,326
Respiratory	140,930		142,919		417,061		423,531
HME	24,551		25,087		70,472		71,402
Other	12,866		12,904		36,074		34,579
Total net revenue from fixed monthly equipment reimbursements	$	262,315	$	271,906	$	774,979	$	795,930

Net revenue from capitated revenue arrangements:
Sleep	$	7,380	$	—	$	21,408	$	—
Diabetes	1,535		$	—	4,679		—
Supplies to the home	3,246		$	—	9,536		—
Respiratory	14,939		$	—	44,521		—
HME	4,115		$	—	11,325		—
Other	1,635		$	—	4,644		—
Total net revenue from capitated revenue arrangements	$	32,850	$	—	$	96,113	$	—

Total net revenue:
Sleep	$	326,447	$	315,392	$	962,105	$	912,403
Diabetes	141,072		159,937		443,117		475,219
Supplies to the home	46,780		48,349		141,983		143,227
Respiratory	164,017		151,083		485,305		447,815
HME	52,997		52,182		157,713		154,297
Other	74,545		77,088		214,107		208,982
Total net revenue	$	805,858	$	804,031	$	2,404,330	$	2,341,943

Acquisitions (Tables)

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Summary of consideration

The following table summarizes the consideration paid at closing for all acquisitions during the nine months ended September 30, 2023 (in thousands):


Cash	$	18,173
Deferred payments	50
Total	$	18,223

Summary of estimated fair values of the net assets acquired

Based upon management’s evaluation, the consideration paid for all acquisitions during the nine months ended September 30, 2023 was allocated as follows during the period (in thousands):


Cash	$	256
Accounts receivable	1,798
Inventory	1,413
Prepaid and other current assets	10
Equipment and other fixed assets	9,008
Operating lease right-of-use assets	5,506
Finance lease right-of-use assets	200
Goodwill	7,297
Accounts payable and accrued expenses	(713)
Other current liabilities	(846)
Operating lease liabilities	(5,506)
Finance lease liabilities	(200)
Net assets acquired	$	18,223

Equipment and Other Fixed Assets (Tables)

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Schedule of equipment and other fixed assets

Equipment and other fixed assets as of September 30, 2024 and December 31, 2023 are as follows (in thousands):


	September 30, 2024		December 31, 2023
Patient medical equipment	$	815,523	$	791,349
Computers and software	93,014		85,509
Delivery vehicles	33,638		35,021
Other	22,737		20,203
Gross carrying value	964,912		932,082
Less accumulated depreciation	(489,990)		(436,981)
Equipment and other fixed assets, net	$	474,922	$	495,101

Goodwill and Identifiable Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of change in the carrying amount of goodwill

The change in the carrying amount of goodwill for the nine months ended September 30, 2024 was as follows (in thousands):


	Gross carrying amount
Balance at December 31, 2023	$	2,724,958
Goodwill impairment	(13,078)
Write off from sale of assets	(4,598)
Balance at September 30, 2024	$	2,707,282

Schedule of identifiable intangible assets

Identifiable intangible assets consisted of the following at September 30, 2024 and December 31, 2023 (in thousands):


	September 30, 2024
			Weighted-Average Remaining Life (Years)
Tradenames, net of accumulated amortization of $47,927	$	64,873	6.0
Payor contracts, net of accumulated amortization of $34,366	47,634		5.8
Developed technology, net of accumulated amortization of $5,355	945		0.8
Identifiable intangible assets, net	$	113,452


	December 31, 2023
			Weighted-Average Remaining Life (Years)
Tradenames, net of accumulated amortization of $38,314	$	74,486	6.6
Payor contracts, net of accumulated amortization of $28,216	53,784		6.6
Developed technology, net of accumulated amortization of $4,410	1,890		1.5
Identifiable intangible assets, net	$	130,160

Schedule of future amortization expense related to identifiable intangible assets

Future amortization expense related to identifiable intangible assets is estimated to be as follows (in thousands):


Twelve months ending September 30,
2025	$	21,828
2026	19,618
2027	18,190
2028	17,936
2029	17,936
Thereafter	17,944
Total	$	113,452

Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Summary of financial assets and liabilities measured at fair value on a recurring basis

information available to management as of September 30, 2024 and December 31, 2023. These estimates are not necessarily indicative of the amounts the Company could ultimately realize.


(in thousands)	Level 1		Level 2		Level 3
September 30, 2024
Assets
Interest rate swap agreements-short term	$	—	$	2,115	$	—
Interest rate swap agreements-long term	—		71		—
Total assets measured at fair value	$	—	$	2,186	$	—

Liabilities
Warrant liability	—		—		2,221
Total liabilities measured at fair value	$	—	$	—	$	2,221


(in thousands)	Level 1		Level 2		Level 3
December 31, 2023
Assets
Interest rate swap agreements-short term	$	—	$	4,482	$	—
Interest rate swap agreements-long term	—		986		—
Total assets measured at fair value	$	—	$	5,468	$	—

Liabilities
Acquisition-related contingent consideration-short term	$	—	$	—	$	6,850
Warrant liability	—		—		4,021
Total liabilities measured at fair value	$	—	$	—	$	10,871

Reconciliation of contingent consideration liabilities

A reconciliation of the Company’s contingent consideration liabilities related to acquisitions for the nine months ended September 30, 2024 and 2023 is as follows (in thousands):


Nine Months Ended September 30, 2024	Beginning Balance		Payments		Change in Fair Value		Ending Balance
Contingent consideration - Level 3 liabilities	$	6,850	$	(6,850)	$	—	$	—
Nine Months Ended September 30, 2023
Contingent consideration - Level 3 liabilities	$	7,500	$	—	$	350	$	7,850

Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of fair value of derivative financial instruments as well as their classification on the consolidated balance sheets


	September 30, 2024		December 31, 2023
Balance Sheet Location	Asset
Prepaid and other current assets	$	2,115	$	4,482
Other assets	71		986
Total	$	2,186	$	5,468

Accounts Payable and Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2024

Accounts Payable and Accrued Liabilities, Current [Abstract]

Schedule of components accounts payable and accrued expenses

Accounts payable and accrued expenses as of September 30, 2024 and December 31, 2023 consisted of the following (in thousands):


	September 30, 2024		December 31, 2023
Accounts payable	$	266,476	$	211,504
Employee-related accruals	58,606		47,462
Accrued interest	9,990		29,327
Litigation reserves	3,935		57,340
Other	91,364		46,361
Total	$	430,371	$	391,994

Debt (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Schedule of summary of long term debt

The following is a summary of long term-debt as of September 30, 2024 and December 31, 2023 (in thousands):


	September 30, 2024		December 31, 2023
Term loan	$	600,000	$	720,000
Senior unsecured notes	1,450,000		1,450,000
Unamortized deferred financing fees	(20,106)		(22,018)
	2,029,894		2,147,982
Current portion	(16,250)		(53,368)
Long-term portion	$	2,013,644	$	2,094,614

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Schedule of changes in warrant liability

A reconciliation of the changes in the warrant liability during the nine months ended September 30, 2024 and 2023 was as follows (in thousands):


Estimated fair value of warrant liability at December 31, 2023	$	4,021
Change in estimated fair value of the warrant liability	(1,800)
Estimated fair value of warrant liability at September 30, 2024	$	2,221

Estimated fair value of warrant liability at December 31, 2022	$	38,503
Change in estimated fair value of the warrant liability	(31,886)
Estimated fair value of warrant liability at September 30, 2023	$	6,617

Schedule of stock option activity

The following table provides the activity regarding the Company’s outstanding stock options during the nine months ended September 30, 2024 that were granted in connection with the 2019 Plan (in thousands, except per share data):


	Number of Options	Weighted-Average Grant Date Fair Value per Share		Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Term
Outstanding, December 31, 2023	2,219	$	3.75	$	19.36	5.1 Years
Expired	(735)	$	4.58	$	23.38
Outstanding, September 30, 2024	1,484	$	3.34	$	17.38	0.9 Years

The following table provides the activity for all outstanding stock options during the nine months ended September 30, 2024 (in thousands, except per share data):


	Number of Options	Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Term
Outstanding, December 31, 2023	3,409	$	14.90	4.9 Years
Exercised	(245)	$	3.97
Expired	(735)	$	23.38
Outstanding, September 30, 2024	2,429	$	13.43	2.3 Years

Schedule of restricted stock activity

Activity related to the Company’s non-vested restricted stock grants for the nine months ended September 30, 2024 is presented below (in thousands, except per share data):


	Number of Shares of Restricted Stock	Weighted-Average Grant Date Fair Value per Share
Non-vested balance, December 31, 2023	2,068	$	19.16
Granted	3,104	$	12.13
Vested	(754)	$	37.25
Forfeited	(1,023)	$	15.73
Non-vested balance, September 30, 2024	3,395	$	14.02

Earnings (Loss) Per Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of calculation of basic and diluted earnings (loss) per share

Computations of basic and diluted net income (loss) per share were as follows (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator
Net income (loss) attributable to AdaptHealth Corp.	$	22,859	$	(454,076)	$	40,160	$	(424,392)
Less: Earnings allocated to participating securities (1)	1,933		—		3,415		—
Net income (loss) for basic EPS	$	20,926	$	(454,076)	$	36,745	$	(424,392)
Change in fair value of warrant liability (2)	—		(9,160)		—		(31,886)
Net income (loss) for diluted EPS	$	20,926	$	(463,236)	$	36,745	$	(456,278)

Denominator (1) (2)
Basic weighted-average common shares outstanding	134,303		134,825		133,481		134,549
Add: Warrants (2)	—		157		—		653
Add: Stock options	301		—		245		—
Add: Unvested restricted stock	1,926		—		1,715		—
Diluted weighted-average common shares outstanding	136,530		134,982		135,441		135,202

Basic net income (loss) per share	$	0.16	$	(3.37)	$	0.28	$	(3.15)
Diluted net income (loss) per share	$	0.15	$	(3.43)	$	0.27	$	(3.37)

Schedule of antidilutive securities excluded from computation of earnings (loss) per share


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Preferred Stock	12,406	12,406	12,406	12,406
Warrants	3,872	—	3,872	—
Stock options	2,128	3,420	2,184	3,420
Unvested restricted stock	1,427	2,057	1,638	2,057
Total	19,833	17,883	20,100	17,883

Leases (Tables)

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Lease costs and sublease income


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Operating lease costs	$	10,791	$	11,114	$	33,521	$	32,186
Finance lease costs:
Amortization of ROU assets	$	3,064	$	1,739	$	7,857	$	4,746
Interest on lease liabilities	$	663	$	—	$	1,721	$	—
Other lease costs and income:
Variable leases costs (1)	$	6,392	$	5,373	$	18,458	$	15,932
Sublease income	$	101	$	358	$	638	$	1,145

Weighted average remaining lease terms and weighted average discount rates

The following table provides the weighted average remaining lease terms and weighted average discount rates for the Company’s leases as of September 30, 2024 and December 31, 2023:


	September 30, 2024		December 31, 2023
Weighted average remaining lease term, weighted based on lease liability balances:
Operating leases	5.1 years		5.6 years
Finance leases	3.2 years		3.6 years
Weighted average discount rate, weighted based on remaining balance of lease payments:
Operating leases	4.8	%	4.4	%
Finance leases	6.8	%	6.7	%

Schedule of operating lease liability maturity


	Operating Leases		Finance Leases
2024	$	9,150	$	3,726
2025	33,517		14,360
2026	25,954		13,098
2027	17,717		9,431
2028	13,603		2,221
Thereafter	26,096		—
Total future undiscounted lease payments	$	126,037	$	42,836
Less: amount representing interest	(15,626)		(4,431)
Present value of future lease payments (lease liability)	$	110,411	$	38,405

Schedule of finance lease liability maturity


	Operating Leases		Finance Leases
2024	$	9,150	$	3,726
2025	33,517		14,360
2026	25,954		13,098
2027	17,717		9,431
2028	13,603		2,221
Thereafter	26,096		—
Total future undiscounted lease payments	$	126,037	$	42,836
Less: amount representing interest	(15,626)		(4,431)
Present value of future lease payments (lease liability)	$	110,411	$	38,405

Cash flow and supplemental non-cash information related to our lease liabilities


	Nine Months Ended September 30,
Cash paid for amounts included in the measurement of lease liabilities:	2024		2023
Operating cash payments for operating leases	$	31,130	$	32,045
Financing cash payments for finance leases	$	8,261	$	4,558
Lease liabilities arising from obtaining right-of-use assets:
Operating leases	$	24,604	$	8,179
Finance leases	$	15,665	$	19,726

General Information - Useful Lives Of Identifiable Intangible Assets (Details)	Sep. 30, 2024
Payor contracts
Property, Plant and Equipment [Line Items]
Useful lives of identifiable intangible assets (in years)	10 years
Developed technology
Property, Plant and Equipment [Line Items]
Useful lives of identifiable intangible assets (in years)	5 years
Minimum \| Tradenames
Property, Plant and Equipment [Line Items]
Useful lives of identifiable intangible assets (in years)	5 years
Maximum \| Tradenames
Property, Plant and Equipment [Line Items]
Useful lives of identifiable intangible assets (in years)	10 years

General Information - Narrative (Details)	9 Months Ended
General Information - Narrative (Details)	Sep. 30, 2024 USD ($) segment	Sep. 30, 2023 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Impairment of long-lived assets \| $	$ 0	$ 0
Number of segments, operating	1
Number of segments, reportable	1

Revenue Recognition and Accounts Receivable - Composition of Net Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Total net revenue	$ 805,858	$ 804,031	$ 2,404,330	$ 2,341,943
Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Total net revenue	510,693	532,125	1,533,238	1,546,013
Transferred Over Time, Non-Capitated Arrangement
Disaggregation of Revenue [Line Items]
Total net revenue	262,315	271,906	774,979	795,930
Transferred Over Time, Capitated Arrangement
Disaggregation of Revenue [Line Items]
Total net revenue	32,850	0	96,113	0
Sleep
Disaggregation of Revenue [Line Items]
Total net revenue	326,447	315,392	962,105	912,403
Sleep \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Total net revenue	237,537	227,005	696,424	656,311
Sleep \| Transferred Over Time, Non-Capitated Arrangement
Disaggregation of Revenue [Line Items]
Total net revenue	81,530	88,387	244,273	256,092
Sleep \| Transferred Over Time, Capitated Arrangement
Disaggregation of Revenue [Line Items]
Total net revenue	7,380	0	21,408	0
Diabetes
Disaggregation of Revenue [Line Items]
Total net revenue	141,072	159,937	443,117	475,219
Diabetes \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Total net revenue	137,099	157,328	431,339	464,893
Diabetes \| Transferred Over Time, Non-Capitated Arrangement
Disaggregation of Revenue [Line Items]
Total net revenue	2,438	2,609	7,099	10,326
Diabetes \| Transferred Over Time, Capitated Arrangement
Disaggregation of Revenue [Line Items]
Total net revenue	1,535	0	4,679	0
Supplies to the home
Disaggregation of Revenue [Line Items]
Total net revenue	46,780	48,349	141,983	143,227
Supplies to the home \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Total net revenue	43,534	48,349	132,447	143,227
Supplies to the home \| Transferred Over Time, Capitated Arrangement
Disaggregation of Revenue [Line Items]
Total net revenue	3,246	0	9,536	0
Respiratory
Disaggregation of Revenue [Line Items]
Total net revenue	164,017	151,083	485,305	447,815
Respiratory \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Total net revenue	8,148	8,164	23,723	24,284
Respiratory \| Transferred Over Time, Non-Capitated Arrangement
Disaggregation of Revenue [Line Items]
Total net revenue	140,930	142,919	417,061	423,531
Respiratory \| Transferred Over Time, Capitated Arrangement
Disaggregation of Revenue [Line Items]
Total net revenue	14,939	0	44,521	0
HME
Disaggregation of Revenue [Line Items]
Total net revenue	52,997	52,182	157,713	154,297
HME \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Total net revenue	24,331	27,095	75,916	82,895
HME \| Transferred Over Time, Non-Capitated Arrangement
Disaggregation of Revenue [Line Items]
Total net revenue	24,551	25,087	70,472	71,402
HME \| Transferred Over Time, Capitated Arrangement
Disaggregation of Revenue [Line Items]
Total net revenue	4,115	0	11,325	0
Other
Disaggregation of Revenue [Line Items]
Total net revenue	74,545	77,088	214,107	208,982
Other \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Total net revenue	60,044	64,184	173,389	174,403
Other \| Transferred Over Time, Non-Capitated Arrangement
Disaggregation of Revenue [Line Items]
Total net revenue	12,866	12,904	36,074	34,579
Other \| Transferred Over Time, Capitated Arrangement
Disaggregation of Revenue [Line Items]
Total net revenue	1,635	0	4,644	0
Insurance
Disaggregation of Revenue [Line Items]
Total net revenue	490,072	486,136	1,461,224	1,397,748
Government
Disaggregation of Revenue [Line Items]
Total net revenue	208,309	220,351	617,653	618,860
Patient pay
Disaggregation of Revenue [Line Items]
Total net revenue	$ 107,477	$ 97,544	$ 325,453	$ 325,335

Revenue Recognition and Accounts Receivable - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Unbilled revenue	$ 29.9	$ 68.4

Acquisitions - Narrative (Details) - Home Medical Equipment Provider Acquired In 2023	9 Months Ended
	Sep. 30, 2023 provider
Business Acquisition [Line Items]
Percentage of interest acquired	100.00%
Number of home medical equipment providers acquired	3

Acquisitions - Consideration Paid (Details) - Significant Acquisitions In 2023 $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Business Acquisition [Line Items]
Cash	$ 18,173
Deferred payments	50
Total	$ 18,223

Acquisitions - Net Assets Acquired (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Business Acquisition [Line Items]
Goodwill	$ 2,707,282	$ 2,724,958
Significant Acquisitions In 2023
Business Acquisition [Line Items]
Cash			$ 256
Accounts receivable			1,798
Inventory			1,413
Prepaid and other current assets			10
Equipment and other fixed assets			9,008
Operating lease right-of-use assets			5,506
Finance lease right-of-use assets			200
Goodwill			7,297
Accounts payable and accrued expenses			(713)
Other current liabilities			(846)
Operating lease liabilities			(5,506)
Finance lease liabilities			(200)
Net assets acquired			$ 18,223

Equipment and Other Fixed Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Gross carrying value	$ 964,912		$ 964,912		$ 932,082
Less accumulated depreciation	(489,990)		(489,990)		(436,981)
Equipment and other fixed assets, net	474,922		474,922		495,101
Depreciation expense	85,200	$ 90,300	258,100	$ 263,400
Patient medical equipment
Property, Plant and Equipment [Line Items]
Gross carrying value	815,523		815,523		791,349
Computers and software
Property, Plant and Equipment [Line Items]
Gross carrying value	93,014		93,014		85,509
Delivery vehicles
Property, Plant and Equipment [Line Items]
Gross carrying value	33,638		33,638		35,021
Other
Property, Plant and Equipment [Line Items]
Gross carrying value	$ 22,737		$ 22,737		$ 20,203

Goodwill and Identifiable Intangible Assets - Change in Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Goodwill [Roll Forward]
Beginning balance			$ 2,724,958		$ 2,724,958
Goodwill impairment	$ 0	$ (6,500)	$ (6,600)	$ (511,866)	(13,078)	$ (511,866)
Write off from sale of assets					(4,598)
Ending balance	$ 2,707,282				$ 2,707,282

Goodwill and Identifiable Intangible Assets - Narrative (Details) - USD ($)	3 Months Ended				9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment	$ 0	$ 6,500,000	$ 6,600,000	$ 511,866,000	$ 13,078,000	$ 511,866,000
Amortization of intangible assets	$ 5,600,000			$ 7,000,000.0	16,700,000	27,000,000.0
Impairment charges					$ 0	$ 0

Goodwill and Identifiable Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Total	$ 113,452	$ 130,160
Tradenames
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	47,927	38,314
Total	$ 64,873	$ 74,486
Weighted-Average Remaining Life (Years)	6 years	6 years 7 months 6 days
Payor contracts
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ 34,366	$ 28,216
Total	$ 47,634	$ 53,784
Weighted-Average Remaining Life (Years)	5 years 9 months 18 days	6 years 7 months 6 days
Developed technology
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ 5,355	$ 4,410
Total	$ 945	$ 1,890
Weighted-Average Remaining Life (Years)	9 months 18 days	1 year 6 months

Goodwill and Identifiable Intangible Assets - Future Amortization Expense of Identified Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
2025	$ 21,828
2026	19,618
2027	18,190
2028	17,936
2029	17,936
Thereafter	17,944
Total	$ 113,452	$ 130,160

Fair Value of Assets and Liabilities - Valuation of Financial Assets and Liabilities (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Level 1
Assets
Total assets measured at fair value	$ 0	$ 0
Liabilities
Total liabilities measured at fair value	0	0
Level 1 \| Acquisition-related contingent consideration-short term
Liabilities
Total liabilities measured at fair value		0
Level 1 \| Warrant liability
Liabilities
Total liabilities measured at fair value	0	0
Level 1 \| Interest rate swap agreements-short term
Assets
Total assets measured at fair value	0	0
Level 1 \| Interest rate swap agreements-long term
Assets
Total assets measured at fair value	0	0
Level 2
Assets
Total assets measured at fair value	2,186	5,468
Liabilities
Total liabilities measured at fair value	0	0
Level 2 \| Acquisition-related contingent consideration-short term
Liabilities
Total liabilities measured at fair value		0
Level 2 \| Warrant liability
Liabilities
Total liabilities measured at fair value	0	0
Level 2 \| Interest rate swap agreements-short term
Assets
Total assets measured at fair value	2,115	4,482
Level 2 \| Interest rate swap agreements-long term
Assets
Total assets measured at fair value	71	986
Level 3
Assets
Total assets measured at fair value	0	0
Liabilities
Total liabilities measured at fair value	2,221	10,871
Level 3 \| Acquisition-related contingent consideration-short term
Liabilities
Total liabilities measured at fair value		6,850
Level 3 \| Warrant liability
Liabilities
Total liabilities measured at fair value	2,221	4,021
Level 3 \| Interest rate swap agreements-short term
Assets
Total assets measured at fair value	0	0
Level 3 \| Interest rate swap agreements-long term
Assets
Total assets measured at fair value	$ 0	$ 0

Fair Value of Assets and Liabilities - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Contingent consideration liability	$ 0	$ 6,850	$ 7,850	$ 7,500

Fair Value of Assets and Liabilities - Contingent Consideration Rollforward (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Contingent Consideration Liability [Roll Forward]
Beginning Balance	$ 6,850	$ 7,500
Payments	(6,850)	0
Change in Fair Value	0	350
Ending Balance	$ 0	$ 7,850

Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Derivative [Line Items]
Amount reclassified from other comprehensive income	$ 0	$ 400,000	$ 400,000	$ 1,400,000
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	(Loss) gain on interest rate swap agreements, inclusive of reclassification adjustment, net of tax	(Loss) gain on interest rate swap agreements, inclusive of reclassification adjustment, net of tax	(Loss) gain on interest rate swap agreements, inclusive of reclassification adjustment, net of tax	(Loss) gain on interest rate swap agreements, inclusive of reclassification adjustment, net of tax
Cash Flow Hedging
Derivative [Line Items]
(Loss) gain on derivative, net of tax	$ (3,200,000)	$ 500,000	$ (2,400,000)	$ 1,100,000
Interest Rate Swap \| Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	$ 250,000,000		$ 250,000,000

Derivative Instruments and Hedging Activities - Financial Instruments (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Asset	$ 2,186	$ 5,468
Interest Rate Swap \| Prepaid and other current assets
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Asset	2,115	4,482
Interest Rate Swap \| Other assets
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Asset	$ 71	$ 986

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	1 Months Ended
	Oct. 31, 2024	Sep. 30, 2024	Dec. 31, 2023
Accounts Payable And Accrued Liabilities, Current [Line Items]
Accounts payable		$ 266,476	$ 211,504
Employee-related accruals		58,606	47,462
Accrued interest		9,990	29,327
Litigation reserves		3,935	57,340
Other		91,364	46,361
Total		430,371	$ 391,994
Subsequent Event
Accounts Payable And Accrued Liabilities, Current [Line Items]
Repayment of debt	$ 40,700
Change Healthcare
Accounts Payable And Accrued Liabilities, Current [Line Items]
Other		$ 40,700

Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Unamortized deferred financing fees	$ (20,106)	$ (22,018)
Net long-term debt	2,029,894	2,147,982
Current portion	(16,250)	(53,368)
Long-term portion	2,013,644	2,094,614
Term loan
Debt Instrument [Line Items]
Gross long-term debt	600,000	720,000
Senior unsecured notes
Debt Instrument [Line Items]
Gross long-term debt	$ 1,450,000	$ 1,450,000

Debt - Narrative (Details) - USD ($)		1 Months Ended				3 Months Ended		9 Months Ended
Debt - Narrative (Details) - USD ($)	Sep. 13, 2024	Sep. 30, 2024	Aug. 31, 2021	Jan. 31, 2021	Jul. 31, 2020	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 12, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Repayment of loan								$ 373,477,000	$ 75,000,000
Payments of financing costs								6,429,000	0
Loss on extinguishment of debt						$ 2,273,000	$ 0	2,273,000	$ 0
Term Loan 2021
Debt Instrument [Line Items]
Gross long-term debt										$ 650,000,000
Repayment of loan	$ 178,500,000
Term loan
Debt Instrument [Line Items]
Gross long-term debt		$ 600,000,000				$ 600,000,000		600,000,000			$ 720,000,000
Repayment of loan		$ 50,000,000
Borrowing capacity	650,000,000
Quarterly principal repayments								4,100,000
Increase to quarterly principal payment								$ 8,100,000
Credit facility interest rate		6.60%				6.60%		6.60%
2024 Revolver
Debt Instrument [Line Items]
Borrowing capacity	$ 300,000,000
Borrowings on lines of credit								$ 0
Remaining maximum borrowings available		$ 277,600,000				$ 277,600,000		277,600,000
2024 Revolver \| Minimum
Debt Instrument [Line Items]
Commitment fee (as a percent)	0.25%
2024 Revolver \| Maximum
Debt Instrument [Line Items]
Commitment fee (as a percent)	0.50%
Letter Of Credit 2024
Debt Instrument [Line Items]
Borrowing capacity	$ 55,000,000
Senior Notes 6.125 Percent Due 2028
Debt Instrument [Line Items]
Debt interest rate					6.125%
Face amount					$ 350,000,000.0
Percentage of original principal that may be redeemed					40.00%
Redemption price, as percent of principal, proceeds from equity offerings					106.125%
Senior Notes 6.125 Percent Due 2028 \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price, as percent of principal					103.063%
Senior Notes 6.125 Percent Due 2028 \| Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price, as percent of principal					102.042%
Senior Notes 6.125 Percent Due 2028 \| Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price, as percent of principal					101.021%
Senior Notes 6.125 Percent Due 2028 \| Debt Instrument, Redemption, Period Five
Debt Instrument [Line Items]
Redemption price, as percent of principal					100.00%
Senior unsecured notes
Debt Instrument [Line Items]
Gross long-term debt		1,450,000,000				1,450,000,000		1,450,000,000			$ 1,450,000,000
Debt interest rate				4.625%
Face amount				$ 500,000,000.0
Percentage of original principal that may be redeemed				40.00%
Redemption price, as percent of principal, proceeds from equity offerings				104.625%
Senior unsecured notes \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price, as percent of principal				102.313%
Senior unsecured notes \| Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price, as percent of principal				101.156%
Senior unsecured notes \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price, as percent of principal				100.00%
Senior unsecured notes \| Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price, as percent of principal				100.00%
Credit Agreement 2024
Debt Instrument [Line Items]
Payments of financing costs	$ 6,400,000
Loss on extinguishment of debt						2,300,000		2,300,000
Credit Agreement 2024 \| Minimum \| Base Rate
Debt Instrument [Line Items]
Rate margin (as a percent)	0.50%
Credit Agreement 2024 \| Minimum \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Rate margin (as a percent)	1.50%
Credit Agreement 2024 \| Maximum \| Base Rate
Debt Instrument [Line Items]
Rate margin (as a percent)	2.25%
Credit Agreement 2024 \| Maximum \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Rate margin (as a percent)	3.25%
Revolver Letter Of Credit Sublimit Maturing July 2025
Debt Instrument [Line Items]
Gross long-term debt		$ 22,400,000				$ 22,400,000		$ 22,400,000
Senior Unsecured Notes 5.125 Per Cent Due 2030
Debt Instrument [Line Items]
Debt interest rate			5.125%
Face amount			$ 600,000,000.0
Senior Unsecured Notes 5.125 Per Cent Due 2030 \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price, as percent of principal			102.563%
Senior Unsecured Notes 5.125 Per Cent Due 2030 \| Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price, as percent of principal			101.281%
Senior Unsecured Notes 5.125 Per Cent Due 2030 \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price, as percent of principal			100.00%
Percentage of original principal that may be redeemed			40.00%
Redemption price, as percent of principal, proceeds from equity offerings			105.125%
Senior Unsecured Notes 5.125 Per Cent Due 2030 \| Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price, as percent of principal			100.00%

Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands			3 Months Ended				9 Months Ended
	Aug. 31, 2024 shares	Jun. 30, 2023 shares	Sep. 30, 2024 USD ($) $ / shares shares	Mar. 31, 2024 USD ($)	Sep. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Sep. 30, 2024 USD ($) vote $ / shares shares	Sep. 30, 2023 USD ($) shares	Jun. 20, 2024 shares	Dec. 31, 2023 shares	May 31, 2022 USD ($)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common Stock, shares authorized (in shares)			300,000,000				300,000,000			300,000,000
Preferred Stock, shares authorized (in shares)			5,000,000				5,000,000			5,000,000
Number of votes per share \| vote							1
Amount of cash authorized for stock repurchase program \| $											$ 200,000
Number of shares purchased under repurchase program (in shares)								631,953
Value of shares repurchase \| $						$ 9,224		$ 9,200
Warrants outstanding (in shares)			3,871,557				3,871,557
Common stock for each warrant exercised (in shares)			1				1
Exercise price (in dollars per share) \| $ / shares			$ 11.50				$ 11.50
Warrants exercised in cashless transaction, number exercised (in shares)							0	0
Granted (in shares)							0	0
Number of shares issued for options exercised on a cash basis (in shares)							207,002	200,000
Exercise of stock options \| $			$ 198	$ 545	$ 538		$ 700	$ 500
Options exercised in cashless basis (in shares)							38,014	1,341,770
Options exercised cashless basis (in shares)							13,509	228,466
Equity-based compensation expense \| $			900		4,500		$ 10,600	$ 17,300
Unrecognized compensation expense \| $			31,100				$ 31,100
Recognition period (in years)							2 years 2 months 12 days
General and Administrative Expense
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Equity-based compensation expense \| $			400		3,500		$ 8,400	15,800
Cost of Sales
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Equity-based compensation expense \| $			500		$ 1,000		$ 2,200	1,500
Performance Percentage Less Than 25%
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Performance payout percentage							0.00%
Performance Percentage Greater Than or Equal to 25%
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Performance payout percentage							50.00%
Performance Percentage Equal to 50%
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Performance payout percentage							100.00%
Performance Percentage Greater Than or Equal to 75%
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Performance payout percentage							200.00%
Unvested restricted stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares)							3,104,000
Forfeited (in shares)							1,023,000
Various Employees \| Unvested restricted stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Grant date fair value \| $							$ 16,700
Granted (in shares)							1,881,690
Various Employees \| Unvested restricted stock \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period (in years)							2 years
Various Employees \| Unvested restricted stock \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period (in years)							3 years
Employee \| Unvested restricted stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Grant date fair value \| $							$ 500
Granted (in shares)							52,326
Vesting period (in years)							2 months
Non-Employee Directors \| Unvested restricted stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Grant date fair value \| $							$ 1,200
Granted (in shares)							122,663
Vesting period (in years)							1 year
Certain Employees \| Performance Based Restricted Stock Unit
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Grant date fair value \| $							$ 19,200
Granted (in shares)							1,047,291
Vesting period (in years)							3 years
Term of relative total shareholder return v. defined peer group (in years)							3 years
Prior CEO
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Equity-based compensation expense \| $								$ 4,000
Prior CEO \| Unvested restricted stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Accelerated vesting (in shares)		143,739
Prior CEO \| Performance Shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Increase in shares (in shares)		159,555
Prior CEO \| Stock options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Accelerated vesting (in shares)		78,130
Prior President
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Equity-based compensation expense \| $			$ (3,300)				$ (3,300)
Prior President \| Unvested restricted stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Forfeited (in shares)	311,018
Prior President \| Performance Shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Forfeited (in shares)	391,408
2019 Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock available for issuance (in shares)			7,206,885				7,206,885		8,350,000
Shares authorized for issuance (in shares)									18,350,000
Treasury Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares issued (in shares)			1,000,000

Stockholders' Equity - Warrants (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Warrant [Roll Forward]
Estimated fair value of warrant liability, beginning			$ 4,021	$ 38,503
Change in estimated fair value of the warrant liability	$ (2,243)	$ (9,160)	(1,800)	(31,886)
Estimated fair value of warrant liability, ending	$ 2,221	$ 6,617	$ 2,221	$ 6,617

Stockholders' Equity - Stock Option Activity (Details) shares in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024 $ / shares shares	Dec. 31, 2023 $ / shares shares
Number of Options
Outstanding at beginning of period (in shares) \| shares	3,409
Exercised (in shares) \| shares	(245)
Expired (in shares) \| shares	(735)
Outstanding at end of period (in shares) \| shares	2,429	3,409
Weighted-Average Exercise Price per Share
Outstanding at beginning of period (in dollars per share)	$ 14.90
Exercised (in dollars per share)	3.97
Expired (in dollars per share)	23.38
Outstanding at end of period (in dollars per share)	$ 13.43	$ 14.90
Weighted-Average Remaining Contractual Term
Weighted average remaining contractual term (in years)	2 years 3 months 18 days	4 years 10 months 24 days
2019 Incentive Plan
Number of Options
Outstanding at beginning of period (in shares) \| shares	2,219
Expired (in shares) \| shares	(735)
Outstanding at end of period (in shares) \| shares	1,484	2,219
Weighted-Average Grant Date Fair Value per Share
Outstanding at beginning of period (in dollars per share)	$ 3.75
Expired (in dollars per share)	4.58
Outstanding at end of period (in dollars per share)	3.34	$ 3.75
Weighted-Average Exercise Price per Share
Outstanding at beginning of period (in dollars per share)	19.36
Expired (in dollars per share)	23.38
Outstanding at end of period (in dollars per share)	$ 17.38	$ 19.36
Weighted-Average Remaining Contractual Term
Weighted average remaining contractual term (in years)	10 months 24 days	5 years 1 month 6 days

Stockholders' Equity - Restricted Stock (Details) - Unvested restricted stock shares in Thousands	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Number of Shares of Restricted Stock
Non-vested balance at beginning of period (in shares) \| shares	2,068
Granted (in shares) \| shares	3,104
Vested (in shares) \| shares	(754)
Forfeited (in shares) \| shares	(1,023)
Non-vested balance at end of period (in shares) \| shares	3,395
Weighted-Average Grant Date Fair Value per Share
Non-vested, grant date fair value at beginning of period (in dollars per share) \| $ / shares	$ 19.16
Granted (in dollars per share) \| $ / shares	12.13
Vested (in dollars per share) \| $ / shares	37.25
Forfeited (in dollars per share) \| $ / shares	15.73
Non-vested, grant date fair value at end of period (in dollars per share) \| $ / shares	$ 14.02

Earnings (Loss) Per Share - Basic and Diluted Earnings Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator
Net income (loss) attributable to AdaptHealth Corp.	$ 22,859	$ (454,076)	$ 40,160	$ (424,392)
Less: Earnings allocated to participating securities	1,933	0	3,415	0
Net income (loss) for basic EPS	20,926	(454,076)	36,745	(424,392)
Change in fair value of warrant liability	(2,243)	(9,160)	(1,800)	(31,886)
Net income (loss) for diluted EPS	$ 20,926	$ (463,236)	$ 36,745	$ (456,278)
Denominator
Basic weighted-average common shares outstanding (in shares)	134,303	134,825	133,481	134,549
Add: Warrants (in shares)	0	157	0	653
Diluted weighted-average common shares outstanding (in shares)	136,530	134,982	135,441	135,202
Basic net income (loss) per share (in dollars per share)	$ 0.16	$ (3.37)	$ 0.28	$ (3.15)
Diluted net income (loss) per share (in dollars per share)	$ 0.15	$ (3.43)	$ 0.27	$ (3.37)
Stock options
Denominator
Add: Stock options (in shares)	301	0	245	0
Unvested restricted stock
Denominator
Add: Unvested restricted stock (in shares)	1,926	0	1,715	0

Earnings (Loss) Per Share - Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded (in shares)	19,833	17,883	20,100	17,883
Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded (in shares)	12,406	12,406	12,406	12,406
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded (in shares)	3,872	0	3,872	0
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded (in shares)	2,128	3,420	2,184	3,420
Unvested restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded (in shares)	1,427	2,057	1,638	2,057

Leases - Lease Costs and Sublease Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating lease costs	$ 10,791	$ 11,114	$ 33,521	$ 32,186
Finance lease costs:
Amortization of ROU assets	3,064	1,739	7,857	4,746
Interest on lease liabilities	663	0	1,721	0
Other lease costs and income:
Variable leases costs	6,392	5,373	18,458	15,932
Sublease income	$ 101	$ 358	$ 638	$ 1,145

Leases - Weighted Average Remaining Lease Terms and Discount Rates (Details)	Sep. 30, 2024	Dec. 31, 2023
Weighted average remaining lease term, weighted based on lease liability balances:
Operating leases (in years)	5 years 1 month 6 days	5 years 7 months 6 days
Finance leases (in years)	3 years 2 months 12 days	3 years 7 months 6 days
Weighted average discount rate, weighted based on remaining balance of lease payments:
Operating leases	4.80%	4.40%
Finance leases	6.80%	6.70%

Leases - Lease Maturity (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Operating Leases
2024	$ 9,150
2025	33,517
2026	25,954
2027	17,717
2028	13,603
Thereafter	26,096
Total future undiscounted lease payments	126,037
Less: amount representing interest	(15,626)
Present value of future lease payments (lease liability)	110,411
Finance Leases
2024	3,726
2025	14,360
2026	13,098
2027	9,431
2028	2,221
Thereafter	0
Total future undiscounted lease payments	42,836
Less: amount representing interest	(4,431)
Present value of future lease payments (lease liability)	$ 38,405

Leases - Cash Flow and Supplemental Non-Cash Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash payments for operating leases	$ 31,130	$ 32,045
Financing cash payments for finance leases	8,261	4,558
Lease liabilities arising from obtaining right-of-use assets:
Operating leases	24,604	8,179
Finance leases	$ 15,665	$ 19,726

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Income Taxes
Income tax expense (benefit)	$ 8,073			$ (34,578)	$ 21,931	$ (30,893)
Increase in income tax benefit					1,000
Goodwill impairment	0	$ 6,500	$ 6,600	511,866	13,078	511,866
Discrete income tax benefit				$ 39,900		$ 39,900
Unrecognized tax benefits	3,200				$ 3,200		$ 6,600
Payout percentage					85.00%
Liability related to TRA	290,200				$ 290,200		291,600
Other Current Liabilities
Income Taxes
Liability related to TRA	24,300				24,300		1,500
Other Noncurrent Liabilities
Income Taxes
Liability related to TRA	$ 265,900				$ 265,900		$ 290,100

Commitments and Contingencies (Details) - USD ($) shares in Millions, $ in Millions			9 Months Ended	12 Months Ended
	Apr. 23, 2024	Feb. 26, 2024	Sep. 30, 2024	Dec. 31, 2023	Jul. 31, 2024	Mar. 07, 2024
Settled Litigation
Loss Contingencies [Line Items]
Receivable from insurance carriers		$ 32.2
Payment on legal proceeding		$ 17.8
Settlement shares (in shares)		1
Fair value of settlement shares				$ 7.3
Reclassification from liabilities to stockholders' equity					$ 9.7
Settled Litigation \| Treasury Stock
Loss Contingencies [Line Items]
Reclassification from liabilities to stockholders' equity					17.7
Settled Litigation \| Additional paid-in capital
Loss Contingencies [Line Items]
Reclassification from liabilities to stockholders' equity					$ 8.0
Pending Litigation
Loss Contingencies [Line Items]
Pre-tax expense			$ 2.4
Director and officer coverage limits available						$ 35.0
Pending Litigation \| Derivative Plaintiff
Loss Contingencies [Line Items]
Pre-tax expense	$ 0.9		0.9
Litigation reserves			$ 0.9

Related Party Transactions (Details) $ in Millions	3 Months Ended		9 Months Ended
Related Party Transactions (Details) $ in Millions	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) former_executive	Sep. 30, 2023 USD ($)
Vendor Two
Related Party Transactions
Number of former executives \| former_executive			1
Ownership interest, as a percent			1.00%
Expenses, related party	$ 3.8	$ 3.1	$ 10.8	$ 8.0
Third-Party Payor \| Maximum
Related Party Transactions
Net revenue related party	1.00%	1.00%	1.00%	1.00%
Vendor Three
Related Party Transactions
Ownership interest, as a percent			5.00%
Expenses, related party	$ 22.5	$ 3.5	$ 50.6	$ 24.1

Subsequent Events (Details) - segment	1 Months Ended	9 Months Ended
Subsequent Events (Details) - segment	Nov. 05, 2024	Sep. 30, 2024
Subsequent Event [Line Items]
Number of segments, reportable		1
Subsequent Event
Subsequent Event [Line Items]
Number of segments, reportable	4