Free cash flow generation is inconsistent, with margins ranging from -6.5% to 19.6% and capital intensity remaining high, as evidenced by CapEx/Revenue ratios reaching 16.5% in 2025Q1.
| Cash from Operations | 506.24M | 601.77M | 541.84M | 480.67M | 373.87M | 275.68M | 195.63M | 60.42M | 68.43M | 45.93M |
| Operating CF Margin % | - | 18.55% | 16.62% | 15.02% | 12.59% | 11.23% | 18.52% | 11.41% | 19.82% | 23.85% |
| Operating CF Growth % | -84.85% | 11.06% | 12.73% | 28.57% | 35.62% | 40.92% | 223.8% | -11.7% | 48.98% | - |
| Net Income | -79.63M | -66.04M | 94.78M | -678.89M | 73.13M | 158.15M | -194.09M | 12.24M | 2.09M | -690 |
| Depreciation & Amortization | 421.25M | 381.93M | 365.33M | 420.59M | 351.18M | 258.05M | 82.44M | 11.28M | 50.61M | 27.82M |
| Stock-Based Compensation | 11.27M | 21.88M | 14.88M | 22.47M | 22.4M | 25.32M | 18.67M | 11.07M | 884K | 48.75K |
| Deferred Taxes | 42.34M | 47.16M | 32.05M | -62.59M | 18.04M | 22.38M | -21.1M | 895.3K | -2.88M | 0 |
| Other Non-Cash Items | 23.96M | 150.26M | 60.85M | 804.2M | 17.12M | -34.92M | 232.8M | 43.12M | 65.91M | 12.02M |
| Working Capital Changes | 70.68M | 66.58M | -26.06M | -25.11M | -108M | -153.31M | 76.91M | -18.19M | 429.32K | 690 |
| Change in Receivables | 25.35M | 30.99M | -26.22M | -28.86M | -209K | -29.69M | -29.52M | -11.81M | -21.34M | -3.04M |
| Change in Inventory | -28.4M | -11.49M | -28.07M | 15.53M | -6.3M | -14.92M | -19.43M | -14.26M | 2.31M | 1.14M |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8.78M | -19.73K | 0 |
| Cash from Investing | -207.6M | -303.19M | -310.27M | -357.28M | -411.17M | -1.82B | -815.7M | -386K | -248.87M | -15.08M |
| Capital Expenditures | -286.8M | -382.39M | -306.06M | -337.46M | -391.42M | -203.31M | -39.76M | -21.33M | -9.95M | -6.85M |
| CapEx % of Revenue | 10.03% | 11.78% | 9.39% | 10.55% | 13.18% | 8.28% | 3.76% | 4.03% | 2.88% | 3.56% |
| Acquisitions | -124.12M | -42.38M | -9.54M | -19.69M | -19.02M | -1.62B | -769.34M | 569K | -86.33M | -8.51M |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 203.32M | 121.58M | 5.32M | 0 | 0 | 0 | 0 | 20.38M | -238.92M | 280.51K |
| Cash from Financing | -246.15M | -302.19M | -198.95M | -92.53M | -66.05M | 1.6B | 643.15M | -13.89M | 251.33M | 119.82K |
| Debt Issued (Net) | -154.32M | -268.48M | -179.87M | -51.77M | -36.18M | 1.4B | 354.74M | 205.66M | -174.24K | -29.69M |
| Equity Issued (Net) | -108K | 1.21M | 0 | -29.27M | -13.99M | 278.85M | 323.33M | 101.29M | 250M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -250M | 0 | 0 |
| Share Repurchases | -755K | 0 | 0 | -29.27M | -13.99M | 0 | -44.27M | -23.71M | 0 | 25K |
| Other Financing | -91.72M | -34.92M | -19.08M | -11.48M | -15.88M | -75.68M | -34.92M | -70.84M | 1.51M | -573.96K |
| Net Change in Cash | -5.69M | -3.61M | 32.62M | 30.86M | -103.36M | 49.66M | 23.08M | -875K | 827.28K | -3.56M |
| Free Cash Flow | 219.44M | 219.38M | 235.78M | 143.2M | -17.56M | 72.37M | 155.88M | 39.09M | 58.48M | 39.08M |
| FCF Margin % | 7.67% | 6.76% | 7.23% | 4.47% | -0.59% | 2.95% | 14.76% | 7.38% | 16.94% | 20.29% |
| FCF Growth % | -20.08% | -6.96% | 64.65% | 915.69% | -124.26% | -53.57% | 298.81% | -33.16% | 49.64% | - |
| FCF per Share | 1.62 | 1.62 | 1.74 | 1.07 | -0.13 | 0.54 | 2.97 | 0.54 | 1.87 | 1.25 |
| FCF Conversion (FCF/Net Income) | -2.76x | -8.50x | 5.99x | -0.71x | 5.39x | 1.77x | -1.21x | -2.83x | 32.80x | -66277.97x |
| Interest Paid | 0 | 0 | 122.07M | 126.23M | 108.89M | 73.63M | 35.77M | 23.07M | 0 | 0 |
| Taxes Paid | 0 | 0 | 14.14M | 14.76M | 14.95M | 14.79M | 7.48M | 1.32M | 0 | 0 |
Regulatory Reimbursement Compression
According to reported financial data, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -22.98 in 2024Q1 to 11.04 in 2025Q2, suggesting that GAAP earnings are currently poor indicators of the company's actual cash-generating capacity.
The persistent gap between net income and operating cash flow appears driven by significant non-cash charges, primarily depreciation and amortization, which consistently exceed net income. This divergence implies that the company's reported profitability is heavily influenced by accounting conventions rather than operational cash generation.
As reported in recent filings, AdaptHealth's free cash flow trajectory remains inconsistent, with quarterly margins fluctuating between -6.5% and 19.6%, indicating that the company struggles to maintain a stable conversion of its revenue base into discretionary cash flow after accounting for necessary capital expenditures.
The volatility in FCF margins suggests that the company's cash flow is highly sensitive to the timing of equipment purchases and reimbursement cycles. Investors should monitor whether the recent stabilization in FCF is sustainable or merely a temporary result of reduced capital intensity in specific periods.
Based on the provided cash flow statements, AdaptHealth maintains a high capital intensity, with CapEx/Revenue ratios frequently exceeding 10% and reaching 16.5% in 2025Q1, reflecting the ongoing need to refresh its rental equipment fleet and invest in digital infrastructure to support its logistics model.
The substantial level of capital expenditure relative to revenue suggests that the company's business model is inherently asset-heavy. This high maintenance requirement may continue to constrain free cash flow, as the company must constantly reinvest to replace aging medical devices and maintain its service capabilities.
Analysis of quarterly cash flow data reveals significant swings in working capital, with changes ranging from a $77.7M outflow in 2024Q1 to a $62.8M inflow in 2024Q2, highlighting the operational challenges inherent in managing complex medical billing and insurance reimbursement cycles.
These fluctuations suggest that the company's cash flow is highly vulnerable to delays in insurance collections and inventory management. The lack of a consistent working capital trend warrants further investigation into the effectiveness of the company's billing and collection processes.
Quick answers to the most common questions about buying AHCO stock.
AdaptHealth Corp. (AHCO) generated $601.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
AdaptHealth Corp. (AHCO) generated $219.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
AdaptHealth Corp. (AHCO) spent $382.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.