Reduced Total Debt By $385 Million In Second Quarter
CEO Ed Pesicka Announces Intention To Retire By The End of 2026
RICHMOND, Va., August 10, 2026--(BUSINESS WIRE)--Accendra Health, Inc. (NYSE: ACH) (the Company) today reported financial results for the second quarter ended June 30, 2026. Unless otherwise noted, the results herein reflect the Company's continuing operations, which represent what was previously the Patient Direct segment and certain functional operations.
"Throughout the second quarter, we moved farther along toward the complete separation from Owens & Minor while also putting a large commercial payor exit behind us. In the last six months, we have eliminated well over $125 million of annualized operating expense directly associated with this large commercial payor, and we are now beginning to reset our business for accelerated future growth. Additionally, we reduced outstanding debt by $385 million and comprehensively reset our debt maturity profile through our balance sheet optimization transaction which closed in June," said Edward A. Pesicka, President & Chief Executive Officer, Accendra Health.
"We also saw continued progress on key growth initiatives and new strategic partnerships that have both topline and bottom line expansion opportunities that will begin to emerge in late 2026 and accelerate in 2027. These include the nationwide rollout of the Sleep Center of Excellence, new commercial agreements, and an increased emphasis on expense rationalization," Pesicka concluded.
Earlier today, the Company announced in a separate press release that President & CEO Edward A. Pesicka has informed the Board of Directors that he intends to retire from his role by the end of 2026. Pesicka also plans to step down from the Board of Directors before the year's end. The Board of Directors maintains a comprehensive succession planning process which has previously identified potential candidates with the capabilities to succeed Pesicka and will leverage that preparation to select his successor in the coming months. During this period, Pesicka will continue to lead the business, drive the execution of the Company's strategic priorities, and facilitate a smooth transition to the Company's next President and CEO once selected.
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Second Quarter Results(1) |
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YTD |
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YTD | ||||||
($ in millions, except per share data) |
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2Q26 |
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2Q25 |
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2026 |
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2025 | ||||||||
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Net Revenue |
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$ |
613.2 |
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$ |
681.9 |
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$ |
1,241.0 |
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$ |
1,355.8 |
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Loss from continuing operations, net of tax, GAAP |
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$ |
(89.1 |
) |
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$ |
(83.8 |
) |
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$ |
(95.5 |
) |
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$ |
(87.6 |
) |
Adj. (loss) income from continuing operations, net of tax, Non-GAAP |
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$ |
(14.3 |
) |
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$ |
20.5 |
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$ |
(17.4 |
) |
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$ |
43.7 |
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Adj. EBITDA, Non-GAAP |
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$ |
60.1 |
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$ |
96.6 |
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$ |
118.5 |
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$ |
192.7 |
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Free cash flow, Non-GAAP |
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$ |
(25.1 |
) |
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$ |
15.2 |
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$ |
(27.1 |
) |
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$ |
50.7 |
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Loss from continuing operations, net of tax, per common share, GAAP |
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$ |
(1.16 |
) |
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$ |
(1.09 |
) |
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$ |
(1.25 |
) |
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$ |
(1.14 |
) |
Adj. (loss) income from continuing operations, net of tax, per common share, Non-GAAP |
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$ |
(0.19 |
) |
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$ |
0.26 |
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$ |
(0.23 |
) |
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$ |
0.55 |
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(1) |
Reconciliations of the differences between the non-GAAP financial measures presented in this release and their most directly comparable GAAP financial measures are included in the tables below. |
2026 Continuing Operations Financial Outlook
The company is updating its prior financial guidance for the full year 2026, summarized below.
Revenue: $2.45 billion - $2.55 billion
Adjusted EBITDA: $300 million - $320 million
Free cash flow: Breakeven to slightly positive
Although the Company provides guidance for free cash flow and adjusted EBITDA (which are non-GAAP financial measures), it is not able to forecast the most directly comparable measures calculated and presented in accordance with GAAP without unreasonable effort. Certain elements of the composition of the GAAP amounts are not predictable, making it impracticable for the Company to forecast. Such elements include, but are not limited to, restructuring and acquisition charges which could have a significant and unpredictable impact on our GAAP results. As a result, no GAAP guidance or reconciliation of the Company's free cash flow or adjusted EBITDA guidance is provided. The outlook is based on certain assumptions, including, but not limited to market conditions, consumer demand, supply chain stability, interest rates, and other factors that are subject to the risk factors discussed in the Company's filings with the SEC.
Investor Conference Call for Second Quarter 2026 Financial Results
Accendra Health will host a conference call for investors and analysts on Monday, August 10, 2026, at 8:00AM E.T. Participants may access the call via the toll-free dial-in number at 1-888-300-2035, or the toll dial-in number at 1-646-517-7437. The conference ID access code is 1058917. All interested stakeholders are encouraged to access the simultaneous live webcast by visiting the Investor Relations page of the Accendra Health website available at investors.accendrahealth.com/events-and-presentations/. A replay of the webcast can be accessed following the presentation at the link provided above.
Safe Harbor
This release is intended to be disclosure through methods reasonably designed to provide broad, non-exclusionary distribution to the public in compliance with the SEC's Fair Disclosure Regulation. This release contains certain "forward looking" statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, the statements in this release regarding our future prospects and performance, including our expectations with respect to our financial performance, our 2026 financial results, our expectations regarding the performance of our business following the completion of the sale of the Products & Healthcare Services business, uncertainty about the time required to select and appoint the Company's next President and CEO, our cost saving initiatives, future indebtedness and growth, industry trends, as well as statements related to our expectations regarding the performance of our business, including our ability to address macro and market conditions. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements. Investors should refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 20, 2026, including the section captioned "Item 1A. Risk Factors," as applicable, and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with or furnished to the SEC, for a discussion of certain known risk factors that could cause the Company's actual results to differ materially from its current estimates. These filings are available at www.accendrahealth.com. Given these risks and uncertainties, the Company can give no assurance that any forward-looking statements will, in fact, transpire and, therefore, cautions investors not to place undue reliance on them. The Company specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
About Accendra Health
Accendra Health, Inc. (NYSE: ACH) is a leading nationwide provider of products, technology and services that support health beyond the hospital for millions of people each year. We connect patients, providers, and insurers, delivering innovative solutions that help promote better health outcomes and improve quality of life for people living with chronic, complex health conditions. Backed by the industry-leading expertise of our Apria and Byram brands, Accendra Health is reimagining the future of home-based care. To learn more about our broad portfolio of essentials for diabetes, sleep health, wound care, respiratory care, urology and ostomy, visit www.accendrahealth.com.
Accendra Health, Inc. Condensed Consolidated Statements of Operations (unaudited) (dollars in thousands, except per share data) | ||||||||
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Three Months Ended June 30, | ||||||
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2026 |
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2025 | ||||
Net revenue |
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$ |
613,234 |
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$ |
681,917 |
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Operating costs and expenses: |
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Cost of net revenue |
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349,827 |
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357,315 |
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Selling, general and administrative expenses |
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243,560 |
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267,853 |
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Transaction breakage fee |
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— |
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80,000 |
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Acquisition-related charges and intangible amortization |
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|
29,229 |
|
|
|
13,918 |
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Exit and realignment charges, net |
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|
25,768 |
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|
|
2,541 |
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Total operating costs and expenses |
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|
648,384 |
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|
|
721,627 |
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Operating loss |
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(35,150 |
) |
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|
(39,710 |
) |
Interest expense, net |
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|
34,539 |
|
|
|
26,009 |
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Loss on modification and extinguishment of debt |
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|
17,296 |
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|
|
— |
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Transaction financing fees, net |
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|
— |
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|
|
18,288 |
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Other expense, net |
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|
643 |
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|
942 |
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Loss from continuing operations before income taxes |
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(87,628 |
) |
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(84,949 |
) |
Income tax provision (benefit) |
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|
1,442 |
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|
(1,127 |
) |
Loss from continuing operations, net of tax |
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|
(89,070 |
) |
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|
(83,822 |
) |
Loss from discontinued operations, net of tax |
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— |
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|
|
(785,236 |
) |
Net loss |
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$ |
(89,070 |
) |
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$ |
(869,058 |
) |
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|
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Basic loss per common share |
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Loss from continuing operations, net of tax |
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$ |
(1.16 |
) |
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$ |
(1.09 |
) |
Loss from discontinued operations, net of tax |
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|
— |
|
|
|
(10.21 |
) |
Net loss |
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$ |
(1.16 |
) |
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$ |
(11.30 |
) |
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Diluted loss per common share |
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Loss from continuing operations, net of tax |
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$ |
(1.16 |
) |
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$ |
(1.09 |
) |
Loss from discontinued operations, net of tax |
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— |
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|
|
(10.21 |
) |
Net loss |
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$ |
(1.16 |
) |
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$ |
(11.30 |
) |
Accendra Health, Inc. Condensed Consolidated Statements of Operations (unaudited) (dollars in thousands, except per share data) | ||||||||
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Six Months Ended June 30, | ||||||
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|
2026 |
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2025 | ||||
Net revenue |
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$ |
1,241,014 |
|
|
$ |
1,355,801 |
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Operating costs and expenses: |
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|
|
|
|
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Cost of net revenue |
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|
699,579 |
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|
|
711,957 |
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Selling, general and administrative expenses |
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|
498,786 |
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|
|
530,223 |
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Transaction breakage fee |
|
|
— |
|
|
|
80,000 |
|
Acquisition-related charges and intangible amortization |
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|
58,458 |
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|
|
37,374 |
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Exit and realignment charges, net |
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|
2,216 |
|
|
|
16,166 |
|
Total operating costs and expenses |
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|
1,259,039 |
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|
|
1,375,720 |
|
Operating loss |
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|
(18,025 |
) |
|
|
(19,919 |
) |
Interest expense, net |
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|
66,887 |
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|
50,223 |
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Loss on modification and extinguishment of debt |
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|
17,296 |
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|
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— |
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Transaction financing fees, net |
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|
— |
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18,288 |
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Other expense, net |
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|
1,665 |
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|
|
1,917 |
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Loss from continuing operations before income taxes |
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|
(103,873 |
) |
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|
(90,347 |
) |
Income tax benefit |
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|
(8,336 |
) |
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|
(2,715 |
) |
Loss from continuing operations, net of tax |
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|
(95,537 |
) |
|
|
(87,632 |
) |
Loss from discontinued operations, net of tax |
|
|
— |
|
|
|
(806,408 |
) |
Net loss |
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$ |
(95,537 |
) |
|
$ |
(894,040 |
) |
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|
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Basic loss per common share |
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|
|
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|
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Loss from continuing operations, net of tax |
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$ |
(1.25 |
) |
|
$ |
(1.14 |
) |
Loss from discontinued operations, net of tax |
|
|
— |
|
|
|
(10.46 |
) |
Net loss |
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$ |
(1.25 |
) |
|
$ |
(11.60 |
) |
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|
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Diluted loss per common share |
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|
|
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Loss from continuing operations, net of tax |
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$ |
(1.25 |
) |
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$ |
(1.14 |
) |
Loss from discontinued operations, net of tax |
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|
— |
|
|
|
(10.46 |
) |
Net loss |
|
$ |
(1.25 |
) |
|
$ |
(11.60 |
) |
Accendra Health, Inc. Condensed Consolidated Balance Sheets (unaudited) (dollars in thousands) | ||||||||
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|
June 30, 2026 |
|
December 31, 2025 | ||||
Assets |
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|
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|
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Current assets |
|
|
|
|
|
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Cash and cash equivalents |
|
$ |
7,651 |
|
|
$ |
281,989 |
|
Accounts receivable, net |
|
|
120,082 |
|
|
|
95,907 |
|
Inventories, net |
|
|
73,345 |
|
|
|
74,435 |
|
Other current assets |
|
|
70,371 |
|
|
|
95,540 |
|
Total current assets |
|
|
271,449 |
|
|
|
547,871 |
|
Patient service equipment and other fixed assets, net of accumulated depreciation and amortization of $196,257 and $207,595 |
|
|
208,666 |
|
|
|
256,161 |
|
Operating lease assets |
|
|
97,008 |
|
|
|
109,099 |
|
Goodwill |
|
|
1,228,140 |
|
|
|
1,228,140 |
|
Intangible assets, net |
|
|
78,007 |
|
|
|
136,465 |
|
Other assets, net |
|
|
224,142 |
|
|
|
174,025 |
|
Total assets |
|
$ |
2,107,412 |
|
|
$ |
2,451,761 |
|
Liabilities and deficit |
|
|
|
|
|
| ||
Current liabilities |
|
|
|
|
|
| ||
Accounts payable |
|
$ |
352,798 |
|
|
$ |
363,565 |
|
Accrued payroll and related liabilities |
|
|
41,832 |
|
|
|
69,426 |
|
Current portion of long-term debt |
|
|
— |
|
|
|
250,000 |
|
Other current liabilities |
|
|
271,586 |
|
|
|
264,084 |
|
Total current liabilities |
|
|
666,216 |
|
|
|
947,075 |
|
Long-term debt, excluding current portion |
|
|
1,718,063 |
|
|
|
1,799,876 |
|
Operating lease liabilities, excluding current portion of $38,397 and $43,272 |
|
|
63,235 |
|
|
|
70,317 |
|
Other liabilities |
|
|
210,836 |
|
|
|
95,471 |
|
Total liabilities |
|
|
2,658,350 |
|
|
|
2,912,739 |
|
Total deficit |
|
|
(550,938 |
) |
|
|
(460,978 |
) |
Total liabilities and deficit |
|
$ |
2,107,412 |
|
|
$ |
2,451,761 |
|
Accendra Health, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (dollars in thousands) | ||||||||
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|
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Three Months Ended June 30, | ||||||
|
|
2026 |
|
2025 | ||||
Operating activities: |
|
|
|
|
|
| ||
Net loss |
|
$ |
(89,070 |
) |
|
$ |
(869,058 |
) |
Loss from discontinued operations, net of tax |
|
|
— |
|
|
|
785,236 |
|
Adjustments to reconcile net loss to cash (used for) provided by operating activities: |
|
|
|
|
|
| ||
Depreciation and amortization |
|
|
65,700 |
|
|
|
42,986 |
|
Share-based compensation expense |
|
|
4,004 |
|
|
|
4,872 |
|
Deferred income tax (benefit) provision |
|
|
(48,060 |
) |
|
|
13,184 |
|
Changes in operating lease right-of-use assets and lease liabilities |
|
|
13 |
|
|
|
(83 |
) |
Gain from sale and dispositions of patient service equipment |
|
|
(3,270 |
) |
|
|
(3,969 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
| ||
Accounts receivable, net |
|
|
(16,379 |
) |
|
|
17,146 |
|
Inventories |
|
|
(8,060 |
) |
|
|
4,673 |
|
Accounts payable |
|
|
(2,003 |
) |
|
|
(20,863 |
) |
Net change in other assets and liabilities |
|
|
67,772 |
|
|
|
(38,376 |
) |
Other, net |
|
|
3,347 |
|
|
|
4,657 |
|
Cash provided by operating activities from discontinued operations |
|
|
— |
|
|
|
97,205 |
|
Cash (used for) provided by operating activities |
|
|
(26,006 |
) |
|
|
37,610 |
|
Investing activities: |
|
|
|
|
|
| ||
Additions to patient service equipment ($43,796 and $57,260) and other fixed assets |
|
|
(47,586 |
) |
|
|
(57,623 |
) |
Proceeds from sale of patient service equipment |
|
|
15,303 |
|
|
|
18,120 |
|
Additions to computer software |
|
|
(1,062 |
) |
|
|
(1,548 |
) |
Other, net |
|
|
2,100 |
|
|
|
(1,500 |
) |
Cash used for investing activities from discontinued operations |
|
|
— |
|
|
|
(10,366 |
) |
Cash used for investing activities |
|
|
(31,245 |
) |
|
|
(52,917 |
) |
Financing activities: |
|
|
|
|
|
| ||
Borrowings under Revolving Credit Agreement |
|
|
279,500 |
|
|
|
853,200 |
|
Repayments under Revolving Credit Agreement |
|
|
(534,500 |
) |
|
|
(815,700 |
) |
Proceeds from debt issuance |
|
|
1,237,315 |
|
|
|
— |
|
Repayments of debt |
|
|
(1,237,315 |
) |
|
|
— |
|
Financing costs paid |
|
|
(16,791 |
) |
|
|
— |
|
Repurchase of common stock |
|
|
— |
|
|
|
(5,153 |
) |
Other, net |
|
|
(187 |
) |
|
|
(32 |
) |
Cash used for financing activities from discontinued operations |
|
|
— |
|
|
|
(616 |
) |
Cash (used for) provided by financing activities |
|
|
(271,978 |
) |
|
|
31,699 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
— |
|
|
|
1,259 |
|
Net (decrease) increase in cash and cash equivalents |
|
|
(329,229 |
) |
|
|
17,651 |
|
Cash and cash equivalents at beginning of period (¹) |
|
|
336,880 |
|
|
|
59,436 |
|
Cash and cash equivalents at end of period (¹) |
|
$ |
7,651 |
|
|
$ |
77,087 |
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
| ||
Income taxes (refunded) paid, net |
|
$ |
(438 |
) |
|
$ |
5,333 |
|
Interest paid |
|
$ |
49,878 |
|
|
$ |
38,358 |
|
Noncash investing activity: |
|
|
|
|
|
| ||
Unpaid purchases of patient service equipment and other fixed assets at end of period |
|
$ |
52,684 |
|
|
$ |
73,437 |
|
________________________ | |
(1) |
This amount includes cash from discontinued operations of $39 million and $30 million as of June 30, 2025 and March 31, 2025. |
Accendra Health, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (dollars in thousands) | ||||||||
|
|
|
|
|
|
| ||
|
|
Six Months Ended June 30, | ||||||
|
|
2026 |
|
2025 | ||||
Operating activities: |
|
|
|
|
|
| ||
Net loss |
|
$ |
(95,537 |
) |
|
$ |
(894,040 |
) |
Loss from discontinued operations, net of tax |
|
|
— |
|
|
|
806,408 |
|
Adjustments to reconcile net loss to cash (used for) provided by operating activities: |
|
|
|
|
|
| ||
Depreciation and amortization |
|
|
127,442 |
|
|
|
85,888 |
|
Share-based compensation expense |
|
|
7,094 |
|
|
|
9,293 |
|
Deferred income tax (benefit) provision |
|
|
(45,489 |
) |
|
|
8,789 |
|
Changes in operating lease right-of-use assets and lease liabilities |
|
|
135 |
|
|
|
744 |
|
Gain from sale and dispositions of patient service equipment |
|
|
(58,779 |
) |
|
|
(9,322 |
... |