Accendra Health (ACH) investor relations material

Executive summary

• Q1 2026 results aligned with expectations, marking the first full quarter as a standalone home-based care company after separation from Owens & Minor, with transition services and separation activities progressing on schedule.

• Achieved Q1 2026 net revenue of $628M, down from $674M in Q1 2025, reflecting the impact of a terminated large commercial payor contract and changes in collection rates and volume growth.

• Substantial completion of exit from a large commercial payer, with a smooth handover and minimized transition costs.

• Announced a $1.5 billion balance sheet optimization transaction with creditor commitments to strengthen liquidity, extend maturities, and reduce leverage.

• Strategic initiatives in sleep therapy and operational streamlining are driving growth and efficiency.

Financial highlights

• Net revenue for Q1 2026 was $627.8 million, down from $673.9 million in Q1 2025, with revenue down 6.8% year-over-year but up 1% excluding a major payer exit.

• Adjusted EBITDA for Q1 2026 was $58 million, down from $96 million in Q1 2025, in line with expectations.

• Free cash flow for Q1 2026 was negative $2 million, reflecting typical seasonal softness and significant one-time items.

• Extraordinary payments included $19 million to the IRS and $22 million in legal and advisory fees for the P&HS divestiture.

• Net debt remained flat at $1.77 billion; $337 million in cash and $195 million available under the revolving credit facility.

Outlook and guidance

• Affirmed 2026 outlook for revenue and adjusted EBITDA, with expectations for greater revenue growth and at least 65% of adjusted EBITDA in Q3 and Q4.

• FY26E Adjusted EBITDA (minus patient service equipment capex) projected at $218M, supporting operating stability and growth investments.

• Annualized cash interest expense expected to increase by about $40 million due to refinancing, with half impacting the second half of 2026.

• Sustained free cash flow profile expected to provide liquidity and strategic flexibility.

• Outlook based on assumptions regarding market conditions, consumer demand, supply chain stability, and interest rates.