Accendra Health, Inc.

In Q2 2026, adjusted EBITDA was just over $60 million, and adjusted EBITDA less patient service equipment CapEx was $16.3 million. Excluding the large commercial payor exit, revenue grew 2%, with sleep up about 5.5%, diabetes up 4%, and ostomy/urology posting high single-digit growth, while respiratory and wound were down year over year. Management said the collection-rate impact reduced income by about $10 million in Q2 and $20 million in the first half. Full-year 2026 guidance was lowered to revenue of $2.45 billion to $2.55 billion and adjusted EBITDA of $300 million to $320 million; free cash flow fully levered is now expected to be breakeven to slightly positive for 2026.

Ed Pesicka framed the quarter as disappointing operationally but still part of a broader transformation into a pure-play home-based health care business. He highlighted the retirement announcement, saying the company has already stabilized the business, navigated the pandemic and post-pandemic period, sold the P&HS segment, and completed balance sheet optimization. His tone was candid but constructive: he emphasized that new contracts, sleep initiatives, logistics changes, and cost reductions should help drive growth beginning in late 2026 and into 2027.

Jon Leon focused on the financial drag from collections, higher cost of net revenue, and delayed cost reductions. He quantified the adverse collections waterfall impact at approximately $10 million in Q2 and $20 million in the first half, and said Q2 cash interest included $12 million tied to accrued interest on exchanged notes. He also said total debt is now $1.72 billion, down by almost $400 million from the end of March, net debt is more than $55 million lower, and the weighted average life of debt has been extended to nearly 5.5 years with no maturities until 2029. He noted free cash flow should improve as EBITDA improves, with more of the benefit expected in Q4 than Q3, and said an ATM program and NOL rights plan are being put in place to support deleveraging and protect tax attributes.

Analysts pressed on the payor audit/collections issue, asking what specifically happened, whether it will affect second-half results, and whether Q4 is a normalized run rate. Management said the issue was not the number of audits but the surge in audited items, which created payment delays and diverted staff from automation work; they expect it to be resolved in Q3. Questions also focused on why cost-outs paused; management said they had already taken out more than $125 million of annualized cost and wanted the business to stabilize before doing more, and said the collection issue was separate. On the NOL rights plan, management said recent shareholder accumulation and a Section 382 review made it prudent to act now to protect more than $200 million of net operating loss carryforwards going into 2027.