Accendra Health, Inc. 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Accendra Health's second quarter 2026 results did not meet internal expectations, with revenue growth below forecast, delayed cost reductions, and slower recovery of collection rates impacting financial performance.
- Revenue excluding the large commercial payer exited in Q1 grew 2% year over year, driven by 5.5% growth in the sleep category and 4% growth in diabetes, while respiratory and wound categories declined year over year.
- Adjusted EBITDA for Q2 was just over $60 million, with a slight margin improvement from Q1, but adjusted EBITDA less patient service equipment CapEx was $16.3 million, down slightly due to higher CapEx related to sleep starts.
- The collection rate waterfall negatively impacted revenue and adjusted EBITDA by approximately $10 million in Q2 and $20 million in the first half of 2026, due to increased payer audits and inefficiencies in commercial payer processes.
- Accendra completed a balance sheet optimization in June, reducing total debt by nearly $400 million since March and extending debt maturities to 2029, with net debt down by over $55 million.
- The company sold a small non-core asset at the end of July and expects another sale in late Q3 or early Q4, providing incremental cash flow.
- President and CEO Ed Pesicka announced his intention to retire by the end of 2026 after nearly eight years, highlighting the company's transformation into a focused home-based health business and confidence in a successful CEO transition.
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Transcript
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Good morning. Thank you for standing by. Welcome to the Accendra Health second quarter 2026 earnings conference call. Please be advised that today's conference call is being recorded. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star, followed by the number 1 on your telephone keypad. If you'd like to withdraw your question, again, press star 1. Thank you. I would now like to hand the conference call over to your first speaker today, Will Parrish, Vice President, Strategy, Corporate Development, and Investor Relations.
Thank you, operator. Good morning, everyone. I'd like to welcome you to Accendra Health's second quarter earnings call. Our comments on the call will be focused on the financial results of the second quarter of 2026, all of which are included in today's press release. The press release, along with the second quarter 2026 supplemental slides, which we will refer to throughout the call, are posted in the investor relations section of our website. Please note that during this call, we will make forward-looking statements that reflect the current views of Accendra Health about our business, financial performance, and future events. The matters addressed in these statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected or implied here today. Our expectations, beliefs, and projections are expressed in good faith. We believe there is reasonable basis for them.
There can be no assurance that our expectations, beliefs, and projections will result or be achieved. Please refer to our SEC filings for a full description of these risks and uncertainties, including the risk factors section of our annual report on Form 10-K and quarterly reports on Form 10-Q. Any forward-looking statements that we make on this call, in our earnings press release, or in our supplemental slides are as of today. We undertake no obligation to update these statements as a result of new information or future events, except to the extent required by applicable law. In our discussion today, we will refer to non-GAAP financial measures. We believe they might help investors to better understand our performance or business trends. Information about these measures and reconciliations to the most comparable GAAP financial measures are included in our press release.
Today, I am joined by Ed Pesicka, Accendra Health's President and Chief Executive Officer, John Leon, the company's Chief Financial Officer, and Perry Bernocchi, the company's Chief Operating Officer. I will now turn the call over to Ed.
Ed? Thank you, Will. Good morning, everyone, and thank you for joining us on the call today.
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