ACH

Reduced Total Debt By $385 Million In Second QuarterCEO 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. 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. Use of Non-GAAP Measures This earnings release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). In general, the measures exclude items and charges that (i) management does not believe reflect the Company’s core business and relate more to strategic, multi-year corporate activities; or (ii) relate to activities or actions that may have occurred over multiple or in prior periods without predictable trends. Management uses these non-GAAP financial measures internally to evaluate the Company’s performance, evaluate the balance sheet, engage in financial and operational planning and determine incentive compensation. Management provides these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on its financial and operating results and in comparing the Company’s performance to that of its competitors. However, the non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The non-GAAP financial measures disclosed by the Company should not be considered substitutes for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth above should be carefully evaluated. ACH-CORP ACH-IR View source version on businesswire.com: https://www.businesswire.com/news/home/20260810826167/en/ Contacts Investors Will ParrishVice President, Strategy, Corporate Development, & Investor [email protected] Media Darla [email protected]

ICU Medical (ICUI) came out with quarterly earnings of $2.37 per share, beating the Zacks Consensus Estimate of $1.91 per share. This compares to earnings of $2.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +24.08%. A quarter ago, it was expected that this medical device maker would post earnings of $1.78 per share when it actually produced earnings of $1.97, delivering a surprise of +10.67%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. ICU Medical, which belongs to the Zacks Medical - Products industry, posted revenues of $547.88 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.33%. This compares to year-ago revenues of $543.57 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ICU Medical shares have added about 16.6% since the beginning of the year versus the S&P 500's gain of 12.8%. While ICU Medical has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ICU Medical was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.09 on $549.4 million in revenues for the coming quarter and $8.17 on $2.17 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Accendra Health (ACH), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This medical supply distributor is expected to post quarterly loss of $0.13 per share in its upcoming report, which represents a year-over-year change of -150%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Accendra Health's revenues are expected to be $631.2 million, down 7.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ICU Medical, Inc. (ICUI) : Free Stock Analysis Report Accendra Health, Inc. (ACH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

RICHMOND, Va., June 24, 2026--(BUSINESS WIRE)--Accendra Health, Inc. (NYSE: ACH) (the "Company") today announced the expiration and final results of the previously announced offers to exchange (the "Exchange Offers") any and all of the Company’s outstanding 4.500% Senior Notes due 2029 (the "2029 Notes") and 6.625% Senior Notes due 2030 (the "2030 Notes" and, together with the 2029 Notes, the "Existing Notes"). As of 5:00 P.M., New York City time, on June 23, 2026 (the "Expiration Time"), the Company received from Eligible Holders valid and unwithdrawn tenders and related Consents (as defined below), as reported by Epiq Corporate Restructuring, LLC (the "Exchange Agent" and "Information Agent"), representing approximately $478.3 million and $548.0 million in aggregate principal amount of 2029 Notes and 2030 Notes, respectively, or approximately 99.9% and 99.2% of the aggregate principal amount of 2029 Notes and 2030 Notes outstanding at the launch of the Exchange Offers, respectively. The Company’s obligation to accept for exchange Existing Notes validly tendered (and not validly withdrawn) pursuant to the Exchange Offers is subject to the satisfaction or, if permitted, waiver of, certain conditions set forth in the confidential offering memorandum and consent solicitation statement, dated May 22, 2026 (the "Offering Memorandum"). Capitalized terms used herein, but not otherwise defined, have the meanings ascribed to such terms in the Offering Memorandum. In connection with the Exchange Offers, the Company issued or expects to issue a total of: (i) $213.0 million in aggregate principal amount of First Lien Notes and (ii) $698.1 million in aggregate principal amount of Second Lien Notes, in exchange for the validly tendered and accepted Existing Notes, and issued $326.25 million in aggregate principal amount of First Lien Notes in the New Money Notes Issuance, for a total of $539.25 million First Lien Notes. The offering of the New Notes has not been registered with the Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended (the "Securities Act"), or any state or foreign securities laws. The Exchange Offers were only made to holders of Existing Notes that are (a) reasonably believed to be qualified institutional buyers in reliance on Rule 144A promulgated under the Securities Act or (b) non-U.S. persons, in transactions outside the United States, in reliance on Regulation S under the Securities Act (such holders, the "Eligible Holders"). Epiq Corporate Restructuring, LLC has been appointed as the Exchange Agent and the Information Agent for the Offers and Consent Solicitations. Questions concerning the Offers and the Consent Solicitations may be directed to the Exchange Agent and Information Agent, in accordance with the contact details shown on the back cover of the Offering Memorandum. Ducera Securities LLC has been engaged to act as our financial advisor for the Offers and Consent Solicitations. No Offer or Solicitation This press release is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote, consent or approval in any jurisdiction in connection with the Offers and Consent Solicitations, or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. In particular, this press release is not an offer of securities for sale into the United States. The New Notes offered in the Offers have not been registered under the Securities Act or any state securities laws, and unless so registered, New Notes may not be offered or sold in the United States or to any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. 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. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding our expectations regarding the Offers and Consent Solicitations, the future performance and financial results of the Company’s business and other non-historical statements. Some of these statements can be identified by terms and phrases such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. The Company cautions readers of this communication that such "forward-looking statements," wherever they occur in this communication or in other statements attributable to the Company, are necessarily estimates reflecting the judgment of the Company’s senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the "forward-looking statements." Factors that could cause the Company’s actual outcomes or results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" sections of our most recent Annual Report on Form 10-K for the period ended December 31, 2025, as such factors may be further updated from time to time in the Company’s other filings with the SEC. These reports are or will be accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this Current Report on Form 8-K and in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. ACH-CORP ACH-IR View source version on businesswire.com: https://www.businesswire.com/news/home/20260623793524/en/ Contacts InvestorsWill ParrishVice President, Strategy, Corporate Development, & Investor [email protected]

RICHMOND, Va., June 10, 2026--(BUSINESS WIRE)--Accendra Health, Inc. (NYSE: ACH) (the "Company") today announced the early results of the previously announced offers to exchange (the "Exchange Offers") any and all of the Company’s outstanding 4.500% Senior Notes due 2029 (the "2029 Notes") and 6.625% Senior Notes due 2030 (the "2030 Notes" and, together with the 2029 Notes, the "Existing Notes"). Eligible Holders of 2029 Notes that participate in the New Money Notes Issuance (as defined below) will be able to exchange such 2029 Notes for newly issued 9.000% Senior Secured First Lien Notes due 2032 (the "First Lien Notes") and newly issued 9.750% Senior Secured Second Lien Notes due 2033 (the "Second Lien Notes" and, together with the First Lien Notes, the "New Notes"). Eligible Holders of 2029 Notes that do not participate in the New Money Notes Issuance and Eligible Holders of 2030 Notes will be able to exchange such notes for Second Lien Notes. As of 5:00 P.M., New York City time, on June 9, 2026 (the "Early Exchange Time"), the Company received from Eligible Holders valid and unwithdrawn tenders and related Consents (as defined below), as reported by Epiq Corporate Restructuring, LLC (the "Exchange Agent" and "Information Agent"), representing approximately $478.3 million and $547.9 million in aggregate principal amount of 2029 Notes and 2030 Notes, respectively, or approximately 99.9% and 99.2% of the aggregate principal amount of 2029 Notes and 2030 Notes outstanding, respectively. In addition, as of the Early Exchange Time, the Company received the requisite consents (the "Consents") in its concurrent consent solicitations (the "Consent Solicitations") from Eligible Holders of the Existing Notes to adopt certain proposed amendments to the indentures governing each series of the Existing Notes (the "Existing Notes Indentures") to eliminate substantially all of the affirmative and negative covenants, eliminate certain events of default, modify covenants regarding mergers and consolidations and modify or eliminate certain other provisions contained in each of the Existing Notes Indentures, including provisions related to defeasance (collectively, the "Proposed Amendments"). The Company has entered into supplemental indentures with the trustees for the Existing Notes and the guarantors party thereto to give effect to the Proposed Amendments, which will become operative as of the Early Settlement Date. In connection with the Exchange Offer for the 2029 Notes, the Company also offered $326.25 million in aggregate principal amount of newly issued First Lien Notes for cash (the "New Money Notes Issuance" and, together with the Exchange Offers, collectively, the "Offers"). The New Notes will be issued by the Company and guaranteed on a senior secured basis by the Company’s existing and future wholly owned domestic subsidiaries (including each subsidiary guarantor of the Existing Notes). To be eligible to receive the New Money Participant Early Exchange Consideration, each Eligible Holder of 2029 Notes (other than the Backstop Parties (as defined below)) was required to tender all of its 2029 Notes at or prior to the Early Exchange Time and must deliver in cash their pro rata cash portion of $65.25 million in aggregate principal amount of First Lien Notes to the Exchange Agent by 5:00 P.M., New York City time, on June 10, 2026, unless extended (such time and date as it may be extended, the "Funding Date"). As previously announced, pursuant to a Commitment and Consent Letter (the "Commitment Agreement"), dated as of May 11, 2026, by and among the Company, certain holders of Existing Notes and certain of the Company’s existing lenders (collectively, the "Commitment Parties"), the Backstop Parties have agreed to purchase (i) their agreed percentage of an aggregate principal amount of $261.0 million of the New Money First Lien Notes, at a price equal to par, and (ii) up to an additional $65.25 million of First Lien Notes, at a price equal to par, to the extent such amount is not purchased in the New Money Notes Issuance by Eligible Holders of the 2029 Notes who are not Backstop Parties, subject to the consummation of the Offers and Consent Solicitations and the satisfaction of certain other conditions. Eligible Holders of 2029 Notes electing to participate in the Exchange Offer for 2029 Notes will receive different Exchange Consideration depending on their participant category: (a) Eligible Holders of 2029 Notes who elected to purchase their pro rata cash portion of New Money First Lien Notes by the Funding Date are referred to herein as "New Money Participants," (b) Eligible Holders of 2029 Notes who are Backstop Parties under the Commitment Agreement and tender their committed 2029 Notes are referred to herein as "Backstop Participants" and (c) Eligible Holders of 2029 Notes who are neither New Money Participants nor Backstop Participants are referred to herein as "Other Eligible Participants." All Eligible Holders of 2030 Notes will receive the same Exchange Consideration regardless of participant category. As of the Early Exchange Time, approximately $124.0 million in aggregate principal amount of 2029 Notes were tendered by New Money Participants (subject to payment of the New Money Notes Purchase Price by the Funding Date, as applicable), approximately $332.0 million in aggregate principal amount of 2029 Notes were tendered by Backstop Participants and approximately $22.3 million in aggregate principal amount of 2029 Notes were tendered by Other Eligible Participants. Each participating Eligible Holder must tender all of the Existing Notes it holds through The Depository Trust Company’s ("DTC") Automated Tender Offer Program ("ATOP"). The Company’s obligation to accept for exchange Existing Notes validly tendered (and not validly withdrawn) and to complete the New Money Notes Issuance pursuant to the Offers and related Consent Solicitations is subject to the satisfaction or, if permitted, waiver of, certain conditions set forth in the confidential offering memorandum and consent solicitation statement, dated May 22, 2026 (the "Offering Memorandum"). Capitalized terms used herein, but not otherwise defined, have the meanings ascribed to such terms in the Offering Memorandum. As of 5:00 P.M., New York City time, on June 9, 2026, the right to withdraw tenders of Existing Notes and related Consents expired. Accordingly, Existing Notes tendered for exchange at or before such time may not be validly withdrawn and Consents may no longer be revoked, unless required by applicable law or the Company determines in the future in its sole discretion to permit withdrawal and revocation rights. The Company further announced an amendment to the Offers, whereby the expected Early Settlement Date with respect to all Existing Notes tendered at or prior to the Early Exchange Time is expected to be June 15, 2026. Additionally, the Expiration Time has been extended to 5:00 P.M., New York City time, on June 23, 2026 and the Late Settlement Date is expected to be June 25, 2026. The New Notes and the offering thereof have not been registered with the Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended (the "Securities Act"), or any state or foreign securities laws. The Offers and Consent Solicitations are only being made, and the New Notes are only being offered and issued, to holders of Existing Notes that are (a) reasonably believed to be qualified institutional buyers in reliance on Rule 144A promulgated under the Securities Act or (b) non-U.S. persons, in transactions outside the United States, in reliance on Regulation S under the Securities Act (such holders, the "Eligible Holders"). Only Eligible Holders are authorized to receive or review the Offering Memorandum and to participate in the Offers. Copies of all the documents relating to the Offers and Consent Solicitations may be obtained from the Exchange Agent and Information Agent, subject to confirmation of eligibility through online procedures established by the Exchange Agent and Information Agent, by completing the Eligibility Letter at https://epiqworkflow.com/cases/AccendraEligibility or via email submission of the Eligibility Letter to [email protected], with a reference to "ACCENDRA" in the subject line. There will be no letter of transmittal for the Exchange Offers. The Offers are being made solely by the Offering Memorandum. Eligible Holders of the Existing Notes are urged to carefully read all of the information in, or incorporated by reference into, the Offering Memorandum, including the information presented under "Risk Factors" and "Forward-Looking Statements" before making any decision with respect to the Offers or the Consent Solicitations. None of the Company, its subsidiaries, the Exchange Agent, the Information Agent, the trustees under the Existing Notes Indentures and the indentures that will govern the New Notes, the collateral agents under the indentures that will govern the New Notes or any of their respective affiliates, makes any recommendation as to whether holders of Existing Notes should participate in the Offers or Consent Solicitations. Each Eligible Holder must make its own decision as to whether to participate in the Offers and whether to tender its Existing Notes and to deliver Consents. Epiq Corporate Restructuring, LLC has been appointed as the Exchange Agent and the Information Agent for the Offers and Consent Solicitations. Questions concerning the Offers and the Consent Solicitations may be directed to the Exchange Agent and Information Agent, in accordance with the contact details shown on the back cover of the Offering Memorandum. Ducera Securities LLC has been engaged to act as our financial advisor for the Offers and Consent Solicitations. No Offer or Solicitation This press release is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote, consent or approval in any jurisdiction in connection with the Offers and Consent Solicitations, or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. In particular, this press release is not an offer of securities for sale into the United States. The New Notes offered in the Offers have not been registered under the Securities Act or any state securities laws, and unless so registered, New Notes may not be offered or sold in the United States or to any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. 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. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding our expectations regarding the Offers and Consent Solicitations, the future performance and financial results of the Company’s business and other non-historical statements. Some of these statements can be identified by terms and phrases such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. The Company cautions readers of this communication that such "forward-looking statements," wherever they occur in this communication or in other statements attributable to the Company, are necessarily estimates reflecting the judgment of the Company’s senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the "forward-looking statements." Factors that could cause the Company’s actual results to differ materially from those expressed or implied in such forward-looking statements include, but are not limited to: the occurrence of any event, change or other circumstances that could give rise to the termination of the transaction; the failure to satisfy other conditions to completion of the transaction; risks related to disruption of management’s attention from the Company’s ongoing business operations due to the transaction; the effect of the announcement of the transaction on the Company’s relationships with its customers, suppliers and other third parties, as well as its operating results and business generally; the risk that the transaction will not be consummated in a timely manner; exceeding the expected costs of the transaction; and risks related to the Commitment Parties’ committed financing. Additional factors that could cause the Company’s actual outcomes or results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" sections of our most recent Annual Report on Form 10-K for the period ended December 31, 2025, as such factors may be further updated from time to time in the Company’s other filings with the SEC. These reports are or will be accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this Current Report on Form 8-K and in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. ACH-CORP ACH-IR View source version on businesswire.com: https://www.businesswire.com/news/home/20260610686582/en/ Contacts Investors Will ParrishVice President, Strategy, Corporate Development, & Investor [email protected]

Image source: The Motley Fool. May 11, 2026, 8:30 a.m. ET President & Chief Executive Officer — Edward Pesicka Chief Financial Officer — Jonathan Leon Chief Operating Officer — Perry Bernocchi Vice President, Investor Relations — Will Parrish Will Parrish: Thank you, operator, and good morning, everyone. I'd like to welcome you to Accendra Health's First Quarter Earnings Call. Our comments on the call will be focused on the financial results of the first quarter of 2026, all of which are included in today's press release. The press release, along with the first 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 the call, we will make forward-looking statements that reflect the current views of sundra Health about our business, financial performance and future events. 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 and we believe there is a reasonable basis for them. However, 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, and 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 and 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'm joined by Ed Pesicka, Ascender Health's President and Chief Executive Officer; Jon 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? Edward Pesicka: Thank you, Will. Good morning, everyone, and thank you for joining us on the call today. It is great to be reporting our first full quarter as a stand-alone pure-play home-based care company, Accendra Health's first quarter results were in line with our expectations and included key accomplishments in our transformation into a leaner, nimbler and higher-margin business, and we are excited about where we will go from here. . First, I am pleased to report that the transition services and separation activities from Owens & Minor are on track and going according to schedule, allowing Accendra Health to fully function as a completely independent company from Owens & Minor. And we are excited to be devoting all of our focus and energy to growing our leading position and capabilities in the home-based care space. Another update that I want to highlight is that as of the end of the first quarter, we have substantially completed the exit stemming from our previously disclosed transition away from a large commercial payor and the handover has gone as expected. With our team ensuring continuity of care for the patients, while also minimizing our cost to transition the business. To secure this smooth transition for patients, we engage with another industry player to sell them the substantial amount of Ascend owned equipment that was dedicated to the large commercial payors patients. And at the same time, we facilitated the transition of personnel, along with other variable and certain fixed costs from Accendra to that same industry player. This solution provided the best outcome for all stakeholders, particularly patients and also allowed us to quickly begin the rationalization of our corporate infrastructure as we pivot away from this large commercial payor. Again, while we never want to exit a customer relationship, we maintained our financial discipline throughout the contracting and transition process, and we are excited to have the vast majority of this exit behind us. I'd also like to remind everyone that while we have exited our largest capitated agreement with this transition, we still have other smaller capitation agreements which are very attractive. Going forward, we will continue to be excited about pursuing both fee-for-service agreements as well as capitated agreements, which still can be very compelling under the right circumstances. Staying with our payors, I am happy to announce that we recently reached an agreement for an exclusive multiyear extension with our largest commercial payor for soft goods, such as ostomy, urology, diabetes, incontinence and others. This extension of the long-standing partnership provides certainty for our business in the years ahead. In order to provide more clarity around our payor mix, we have provided you with Slide #5 that clearly shows the diversification of our commercial payor portfolio. As a reminder, with the notable exception of a large commercial payor discussed a moment ago, the vast majority of our commercial payor relationships are contracted at the individual state level and are then aggregated under the National parent organization in this slide for presentation purposes. Accordingly, we are well positioned with the diversified commercial payor portfolio with no major renewals on the horizon. In addition to the commercial payors just noted, approximately 20% of our revenue is from traditional Medicare. We are supportive of the government's recent efforts to eliminate fraud, waste and abuse, including the upcoming competitive bidding program. As one of the large national players in the market, we are proud of our ability to operate at scale as well as our track record of rigid compliance with government requirements while providing the highest quality of service to patients. Thus, we expect to continue to thrive in this new era. Next, I would like to provide an update on several of our strategic initiatives which are streamlining our business through centralization, standardization and automation with the goal of driving top line growth and reducing our overall cost profile, all while providing an industry-leading experience for patients. I'd like to start by highlighting our focus on sleep therapy. I'm pleased to report that our sleep Journey program continues to deliver anticipated results with the sleep supplies portion of our sleep therapy category delivering strong year-over-year growth. We are particularly proud of this initiative as it helps drive stronger fundamentals in the sleep supply category. -- in the form of higher revenue per order, lower patient attrition and better patient outcomes through higher therapy adherence rates. We expect this initiative to continue to drive higher patient therapy adherence through the efforts of our dedicated sleep coaches and other clinical initiatives. Building on the success of our sleep journey as well as our proven track record with our existing centers of excellence for other categories, we recently formed our Sleep Center of Excellence, which serves as a centralized and standardized expert-led team, which is responsible for the patient's first interaction with Accendra and the initiation of their PAP therapy. This program is building a trusted patient-first ecosystem that balances operational efficiency with compassionate care. Our dedicated team manages order process scheduling and patient onboarding to ensure consistent, high-quality start to each patient's therapy journey. Our Sleep Center Of Excellence is designed to cultivate patient satisfaction and loyalty by ensuring a consistent, high-quality patient experience that we expect will enhance provider confidence in our already strong brand by driving growth in our referral pipeline. This initiative has already seen a successful pilot in select markets during the first quarter, with a nationwide launch continuing in the second quarter. The combination of the sleep journey and our new Sleep Center Of Excellence will enable us to improve patient capture and patient adherence and to enhance the experience for all stakeholders, patients, providers and payors, which should result in improved growth in the sleep category. Finally, I would like to provide an update on our capital structure. In our press release this morning, we announced a comprehensive balance sheet optimization transaction, which will strengthen Accendra's balance sheet by paying off our 2027 maturities, significantly reduced total debt and meaningfully extend maturities, while also affording the company financial and strategic flexibility with ample liquidity. John will walk you through the details in a moment, but we believe that this comprehensive balance sheet optimization transaction lays the foundation for Accendra's long-term trajectory as a stand-alone business. With this behind us, it will enable us to devote 100% of our focus on the business. We are excited to remove any uncertainty about our 2027 maturity and any pressure they may have put on our overall valuation. Before I turn the call over to John, I would like to reiterate how transformative the last several months have been for Accendra and how excited we are for the future. Our business today is dramatically different than it was prior to the divestiture of Owens & Minor. If you look at Page 6 of the supplemental slides, you can see how we have transformed a company with gross margins in the 19% range and EBITDA margins of approximately 4% to a stand-alone home-based care business with nearly 50% gross margins and double-digit EBITDA margins. Additionally, if you move ahead to Slide 7, you can see how much of the earnings and consistent cash flow of what is now Accendra Health backstop the P&HS business consumption of cash in the recent periods. With the divestiture behind us, we look forward to enjoying a much cleaner and less volatile cash flow profile. In closing, we couldn't be more pleased with the transformation we have delivered over the past several months. And while we have much work ahead of us, we are excited about where Accendra Health is taking home-based care into the future. With that, I will hand the call over to Jon to discuss the financials. Jon? Jonathan Leon: Thanks, Ed, and good morning. My comments today will cover our first quarter results and outlook for the remainder of the year as well as the expected outcome of our current financing activity which will lead to a much improved simpler and longer-dated capital structure with plenty of liquidity for the business. I will specifically speak to the balance sheet optimization transaction that we announced in this morning's press release. Like recent quarters, unless otherwise stated, my remarks today will focus on the continuing operations. The continued operations financial statements represent the total of Accendra Health. Also, please note that any discussion about the financial results and outlook for the company will cover only non-GAAP financial measures. You can find GAAP to non-GAAP financial reconciliations in the press release followed a short time ago and residing on our website at accendralhealth.com. First quarter of 2026 was notable for the completion of a previously discussed large commercial payor exit and the initiation of our comprehensive balance sheet optimization activity. Operationally, the business performed to expectations, and as usually occurs, the third month of the quarter proved the strongest. Cash flow and debt levels also reflected what we expected and typically see in Q1, which is early in the year softness leading to greater strength in the back half of the year. Turning to Slide 10, the supplemental slides. You can see that we reported a revenue decline of 6.8% in the quarter, but excluding the impact of the aforementioned large commercial payor, growth would have been about 1%. The leading growth categories were sleep, excluding repair impact and urology, ostomy. A large sleeve category grew over 4%, and home respiratory sell about 4% and while the impact of a large commercial payor change is excluded. Diabetes was off slightly versus the prior year as growth in insulin pumps did not quite offset a drop in CGM. Overall, growth rates were not where they need to be, but we expect improvement throughout the year and are seeing positive signs across a number of categories. To facilitate the transition of the large commercial payor, we sold patient service equipment for cash proceeds of $82 million, resulting in a book gain of $52 million. The positive income statement impact of this onetime transaction is not included in our adjusted EBITDA for the quarter, as I'll discuss further on this call. If you look at Slide 11 you can see that Q1 adjusted EBITDA was $58 million, again, in line with expectations. We continue to see a lower year-over-year collection rate, inflationary product cost increases and higher health benefit expenses all of which were partially offset by our cost savings efforts. Of course, predivestiture stranded costs, elevated selling, general and administrative expenses lower than adjusted EBITDA. Cost reduction will continue to be a point of emphasis throughout the year. Cash flow demonstrates the typical seasonal softness, free cash flow is slightly negative in the quarter, following normal profitability, collection rate and working capital sequencing. Also, it should be recognized that we had extraordinary payments in the quarter of $19 million to the IRS to conclude tax matters related to international transfer pricing activity between 2015 and 2018, and $22 million of previously accrued expenses related to the P&HS divestiture. All this activity is detailed on Slide 12 of the supplemental slides. When looking at the cash flow statement, it's also important to note that, as I mentioned, the gains from the onetime sale of patient equipment related to the large commercial payor is an adjustment to income in the operating activity section of the cash flow statement. It is not included in adjusted EBITDA due to its onetime nature. And the cash received from these sales sits in the investing activity section of the cash flow statement. The vast majority of this activity occurred in Q1, and there will only be nominal amounts recorded in Q2. Net debt was essentially flat compared to where we ended 2025 at $1.77 billion, and the entire organization remains focused on debt reduction. At the end of the quarter, we had $337 million of cash on the balance sheet and $195 million of available capacity under our committed revolving credit facility continuing our pattern of maintaining very comfortable liquidity levels. And once again, we ended the quarter well in compliance with our jet covenants. Now as Ed mentioned, I want to discuss very exciting news on our capital structure. Pages 13 through 15 of the supplemental slides filed earlier this morning, further detail the balance sheet optimization process. We have received commitments from existing creditors that will allow us to conduct a holistic reset of our capital structure and a in a long-term foundation for Accendra. Key benefits include a multiyear extension of our revolving credit facility, paying off our 2027 maturities, extensions of our 2029 and 2030 notes through exchange offers for longer-dated new notes and meaningful debt reduction. This comprehensive solution will provide the business with the appropriate level of liquidity and offer financial flexibility for our future. We have received commitments from our revolver lenders, Term Loan B lenders and filing holders for the balance sheet optimization transaction. And of course, such commitments will be subject to customary closing additions for agreements of this type. As detailed on Slide 13, we will offer to all eligible holders of our existing notes, the ability to exchange for all notes for new secured notes. The exchanges will include first and second lien notes that will mature in 2032 and 2033, respectively. The offer for each series of existing nodes will be further described in the offering document that will be available to all eligible holders of the existing notes. These exchanges are expected to result in meaningful de-leveraging of up to about $115 million. Staying on Slide 13. In connection with the exchange process, we plan to retire our term Loan A due in 2027 with the issuance of the new first lien notes. Additionally, we plan to pay off our current revolving credit facility with cash and will be entering into a new $300 million committed revolving facility due in 2030. The consummation of all these financing transactions will remove concerns about near-term maturities by extending our maturity runway by doubling the weighted average life of the debt capital structure to approximately 5.5 years while ensuring plenty of liquidity for a business that has over 80% recurring revenue, all while advancing our commitment to de-leveraging. We look forward to the completion of these transactions in the coming weeks. This will be an enormously positive debt in having a better capital structure suited for Accendra strength. In conjunction with the announcement of the balance sheet optimization transaction, we would expect to file an Omnibus shelf registration. The company does not have a self-registration of President and in relation to the financing activity would be the most logical timing and it's simply a matter of prudent financial management and good corporate hygiene. We are affirming our 2026 outlook for revenue and adjusted EBITDA. The financing activity I just discussed will impact interest expense and obviously, free cash flow. We will be refinancing our existing lower coupon notes and while we're satisfied with the anticipated pricing of the new debt described above, we are estimating that annualized cash interest will be higher by about $40 million. We expect that approximately half of this incremental impact will occur starting in the second half of 2026. Finally, as we look ahead quarter-by-quarter, we see greater revenue growth in the latter months of the year, resulting in at least 65% of adjusted EBITDA coming in the third and fourth quarters. Following what we see as a decent in line quarter, we remain confident in the revenue growth ramping in the months ahead, better collection rates cost savings and consistently improving cash flow, and we will remain ever diligent on de-levering the balance sheet as quickly as possible. With that, I'll now turn the call back to the operator for Q&A. Operator? Operator: Thank you. [Operator Instructions] Your first question comes from the line of Kevin Caliendo with UBS. Kevin Caliendo: Sorry, I was on mute. I apologize. Congrats on getting this all done, guys. It's -- I'm sure it's quite laborious and really impressive that you got it over the finish line, so congratulations. . My question really is around free cash flow and how to think about it now post all this. Obviously, the higher interest expense and everything else. But when we talk about sort of operating cash flow and then free cash flow back to the entity, what are the expectations now for '26 and beyond and how to think about it. And I'm assuming we should just put it all to use in terms of paying down debt? Jonathan Leon: Absolutely, Kevin, it's Jon. By the way, -- anything we do generate will be used for debt reduction. -- getting the exact number is going to be a little bit shaky until we get through this financing probably sometime next month. We know what we have ahead of us. Obviously, we have to pay for this transaction. We got the scheduled money going out for the P&H separation, all of which was planned. But as I said in my remarks, about half of the $40 million of increased interest expense will hit us this year. Still good cash flow year still going towards all debt reduction, but coming with the exact number, we'll probably need another month or 2 before we can actually peg the forecast number for you. Kevin Caliendo: Got it. That's helpful. If I can just ask a fundamental question. Just in terms of diabetes, what you're seeing there, how the market is continuing to evolve how you feel like you're positioned there? Just love to get an update specifically on that, and I'll let others jump in after me. Edward Pesicka: Yes. Thanks, Kevin. This is Ed. If I think about diabetes, -- so in the quarter, we saw nice growth in insulin pump. We actually saw unit volume grow in CGM. We did see some price compression there when you look at the mix between DME and pharmacy. Let me talk a little bit more detail about DME versus pharmacy, -- so the pharmacy option has been in place for several years now. Now we're starting to get some empirical data that shows that when a patient uses the DME channel versus the pharmacy channel, we see adherence at much higher rates than what we see through a pharmacy channel. I think that is an opportunity for us to make sure that we're educating patients. We're educating the providers of the benefit of the DME channel. And that's really because the follow-up that we provide as a company, in addition to that, the follow-up with the provider that the patient has. So that's what we see when we see this trending out. We see it somewhat stabilizing the mix between DME and pharmacy. -- and then the opportunity to actually see the benefits of patients and physicians using a DME channel versus the pharmacy channel. Operator: Your next question comes from the line of Daniel Grosslight with Citigroup. Daniel Grosslight: I'll add my congrats to getting this debt restructuring close to over the line here. A couple of questions on Slide 6 of the investor presentation that you filed with the restructuring. For 2027, it looks like you're projecting out 4% revenue growth and 5% EBITDA growth around there. Is this how we should think about the normalized growth rate of the company kind of mid-single-digit revenue growth rate and a little bit of margin improvement each year? Or do you think that will accelerate in $20 million and beyond? And it also looks like unlevered free cash flow is about $20-ish million or so lower in '27 versus '26 in the presentation. So I'm curious if you can just comment on that and how we should be thinking about some of the working capital investments perhaps you're making in '27? Jonathan Leon: Daniel, it's John. So I will tell you the '27 numbers that we claimed this morning, certainly were the work product of a number of months of bottom-up numbers, but that we've got a few months ago. So I would certainly caution everybody on relying too much on those. And as we get into our normal budget cycle later this year, we'll update '27 in a more fulsome manner. But specific to your question, I would say the growth rates there are not a pretty decent proxy for what we would expect from the business was on a run rate basis going forward. Cash flow wise, yes, we're putting some money back into the business in '27 in respective years out there. So as we mentioned, Kevin, obviously, first commitment is always going to be that reduction to be good certain business to grow the business. So -- you're thinking about it correctly at a high level, but I would certainly caution everybody to not put too much on into those numbers. They're able to up for you detail, but obviously, we'll update '27 as we get into the latter part of this year. Daniel Grosslight: Okay. Great. And then I just had 1 on the Sleep journey and Sleep Center of Excellence, which is great to hear. I'm curious -- is that joint effort? Again, that's Sleep Journey and Sleep Center of Excellence. How many markets is that live in right now? And I'm wondering if you can speak to any specific stats in the markets that are live to in terms of adherence rates and conversion rates versus the markets that are not currently living. Edward Pesicka: Yes. So I'll start and then I'll let Perry provide a little additional detail on it. So on the sleep journey, that's been implemented over the past year. And then on the center of excellence focused on the sleep starts, that's starting to be rolled out now. Perry, why don't you cover a little bit more detail. . Perry Bernocchi: Yes. From a Sleep Journey perspective, as Ed mentioned, it's been in process for well over a year. Every quarter, we see improvement in our adherence rate by single-digit percentage points every additional quarter. So that has proven highly successful. So 1 is adherence -- and 2, our average order basket has also increased with the sleep journey with the sleep journey project. From a COE perspective, -- this has been initiated. It's in -- it is in 3 of our markets with full implementation across the entire network by the beginning of the fourth quarter. So it's a rolling process. And it's really to have an end-to-end optimization for both the patient and the prescriber and the payor. And so initiation of therapy in a centralized group, expert in handling sleep patients. From the early 2 markets, 3 markets that went live, we're seeing speed from referral to initiation of therapy, improve as well as all the other indices of improved adherence and market basket size. Operator: Your next question comes from the line of Michael Cherny with Leerink Partners. Ahmed Muhammad Rahat: I hope you guys are doing well. This is Ahmed Muhammed for Mike Cherny. As we think about the results in the quarter and the outlook for the year, appreciate all the color that you've given. But is there any further color you can give on what drove the results this quarter? And what's durable for the rest of the year across the various product categories? And 2 quick modeling questions. Is there anything to note on agents regarding the Optum onboarding? And when is the debt refinancing expected to be completed? Edward Pesicka: Okay. I'll start to unpack that a little bit. On the quarter, basically, we've seen the same dynamics by category that we've seen for the last several quarters. Our growth really led by categories like ostomy, urology. As we mentioned, the sleep business, absent, the large commercial payor change grew very nicely as well. And on the other side of the coin, diabetes, pumps did well, CGM, not quite as well as we would have hoped and in the other categories like home respiratory certainly underperformed our expectations as they have for the last few quarters. So all in all, a very similar string to what we've seen in the past. In terms of your question on Optum, those preferred provider agreements take a while to ramp. We would expect that to continue to ramp throughout 2026. But it's nothing that is going to be a dramatic change in the performance of the business this year. similar to other similar agreements that we've grown a law and recently, but they do take a while to ramp and need to sell into those. And that we should be modeling to thinking about those. And financing is I think was your last question, we'll be here launching the actual exchange offer in the next week or given the normal periods of time, you need to let those things stay in the market, we should be closing that transaction, I would say, third week, mid to late third week of June. Operator: Your next question comes from the line of Allen Lutz with Bank of America. . Allen Lutz: One for Jon. SG&A in the quarter was better than we expected. You called out benefits from cost-saving efforts. As we think about the trajectory of SG&A over the course of the year, how should we think about the 1Q run rate and what's embedded in the guide for the rest of the year? Jonathan Leon: Yes, I'll start and let Ed finish. I mean it certainly happened cost reduction remains a significant focus for us and will be throughout the year. Keeping in mind that with the large commercial payroll in golf, we have been very rigid about taking those costs out and costs related to it as well. But from a run rate perspective, I would say, I would like to do better than that for the rest of the year, but it's probably not a bad number to start with. Edward Pesicka: Yes, I think we would anticipate it does get better. If we think about the large customer we took the costs out, those costs came out in -- towards the end of February and towards the end of March in a 2-phase process. So we should be able to get additional benefit of those for the remainder of the year as they came out between February and towards the end of March. Allen Lutz: Very helpful. And now that you've exited the largest capitated agreement, can you frame how big the smaller capitated arrangements are as a percent of the business? And is there any way to talk about the relative margin structure today, excluding the largest capitated but just between fee-for-service and the residual capitated agreements on the books? Edward Pesicka: Yes. If we think about -- I mean, we had the chart in the exhibits that actually showed some of our larger payors. None of those are, I would say, capitated agreements and then you look at what's remaining. Any other capitated agreement would be very small. Nothing meaningful to fall into those top 5 or 6 category, 5 or 6 payors . And on the margin, I think it depends on it. It depends on the nature of it. It depends on the escalation of it. But -- when we look at capitated agreements, we are not opposed to them. We have them and we -- they are a significant opportunity for us. Perry, I don't know if you want to add a little additional color on it, feel free to do so. Perry Bernocchi: I think you've covered the cap agreements that we have today are the remaining cap agreements are small in nature. They're effective and efficient to run from an operational perspective. So they provide a very positive yield. We are pursuing capitated agreements in the marketplace today. The marketplace is dynamic. The payors are continuing to look at opportunities to reduce their networks and align with providers like in Accendra. So I think our opportunities to pursue smaller capitated agreements remains very positive. Operator: That concludes our question-and-answer session. I will now turn the conference back over to Edward for closing comments. . Edward Pesicka: Well, thank you, everyone, for the time today. If I reflect upon the last 4 to 5 months here as a company, a lot of accomplishments and the fact that, one, we have had the ability to sell our P&HS business. Two, the balance sheet optimization, which we just completed today now leaves us in the position as a leaner, more efficient company as we proceed going forward. With that, I look forward to the next several quarters to be able to have these dialogues, and we can continue to discuss the progress that the company is making. So thank you, everyone. Operator: That concludes today's call. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Accendra Health (ACH) Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue Decline: 6.8% decrease in the quarter; excluding large commercial payor impact, growth would have been about 1%. Adjusted EBITDA: $58 million, in line with expectations. Net Debt: $1.77 billion, essentially flat compared to the end of 2025. Cash on Balance Sheet: $337 million. Available Credit Facility: $195 million. Cash Proceeds from Equipment Sale: $82 million, resulting in a book gain of $52 million. Free Cash Flow: Slightly negative in the quarter. Debt Reduction Plan: Expected deleveraging of up to $115 million through exchange offers for new notes. Interest Expense Increase: Estimated annualized cash interest higher by about $40 million due to refinancing. Revenue from Traditional Medicare: Approximately 20% of total revenue. Sleep Category Growth: Over 4% growth, excluding large commercial payor impact. Home Respiratory Growth: About 4% growth, excluding large commercial payor impact. Warning! GuruFocus has detected 5 Warning Signs with ACH. Is ACH fairly valued? Test your thesis with our free DCF calculator. Release Date: May 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Accendra Health Inc (NYSE:ACH) successfully completed its transition to a standalone, home-based care company, enhancing its focus and operational efficiency. The company reported strong year-over-year growth in its sleep therapy category, driven by initiatives like the Sleep Journey program and the new Sleep Center of Excellence. Accendra Health Inc (NYSE:ACH) secured a multi-year extension with its largest commercial payor for soft goods, providing business certainty for the future. The company executed a comprehensive balance sheet optimization transaction, significantly reducing total debt and extending maturities, which strengthens its financial position. Accendra Health Inc (NYSE:ACH) maintained a diversified commercial payor portfolio with no major renewals on the horizon, ensuring stability in its revenue streams. The company experienced a 6.8% revenue decline in the first quarter, primarily due to the exit from a large commercial payor. Accendra Health Inc (NYSE:ACH) faced challenges with lower year-over-year collection rates, inflationary product cost increases, and higher health benefit expenses. The diabetes category underperformed expectations, with growth in insulin pumps not fully offsetting a drop in continuous glucose monitors (CGMs). The company anticipates higher annualized cash interest expenses by about $40 million due to refinancing activities, impacting free cash flow. Accendra Health Inc (NYSE:ACH) continues to face seasonal cash flow softness, with free cash flow slightly negative in the first quarter. Q: How should we think about free cash flow post-restructuring, considering the higher interest expense? A: Jonathan Leon, CFO, explained that any generated cash flow will be used for debt reduction. The exact number is uncertain until the financing is complete, but about half of the $40 million increased interest expense will impact this year. The company expects a good cash flow year, focused on debt reduction, with more precise forecasts available in a month or two. Q: Can you provide an update on the diabetes market and Accendra's positioning? A: Edward Pesicka, CEO, noted growth in insulin pumps and unit volume for CGMs, despite some price compression. He highlighted the benefits of the DME channel over pharmacy, citing higher adherence rates due to better follow-up and education for patients and providers. Q: Regarding the 2027 projections, should we expect mid-single-digit revenue growth and margin improvement? A: Jonathan Leon, CFO, stated that the growth rates are a decent proxy for future expectations, though the numbers will be updated later this year. The company plans to reinvest in the business, with a focus on debt reduction and growth. Q: How is the Sleep Journey and Sleep Center of Excellence progressing, and what are the results so far? A: Edward Pesicka, CEO, and Perry Bernocchi, COO, explained that the Sleep Journey has been in place for over a year, improving adherence rates and order sizes. The Sleep Center of Excellence is being rolled out, with full implementation expected by the fourth quarter, showing improved therapy initiation and adherence in early markets. Q: Can you provide more details on SG&A trajectory and cost-saving efforts? A: Jonathan Leon, CFO, and Edward Pesicka, CEO, emphasized ongoing cost reduction efforts, particularly following the exit of a large commercial payor. They expect SG&A to improve throughout the year, benefiting from cost reductions implemented in February and March. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Commitments in Place from Existing Creditors to Strengthen Balance Sheet, Extend Maturities, and Reduce Leverage RICHMOND, Va., May 11, 2026--(BUSINESS WIRE)--Accendra Health, Inc. (NYSE: ACH) today reported financial results for the first quarter ended March 31, 2026, and announced a more than $1.5 billion comprehensive balance sheet optimization transaction with commitments from existing creditors that will strengthen the balance sheet, significantly extend maturities and reduce total leverage. 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. "Our first quarter results were aligned with our expectations as we continue our transformation into a pure play home based care company. We are also pleased to report that transition services and other separation activity related to our divestiture of Owens & Minor are on track and going according to schedule," said Edward A. Pesicka, President & Chief Executive Officer, Accendra Health. "Also, this morning we announced the receipt of commitments from existing creditors that will allow us to conduct a holistic reset of our capital structure and establish the long-term foundation for Accendra Health. Key benefits include paying off our 2027 maturities, a multi-year extension of our revolving credit facility, meaningful debt reduction, and other maturity extensions. This comprehensive solution should provide the business with the appropriate level of liquidity and allows for strategic and financial flexibility for our future," Pesicka concluded. The Company plans to effectuate the balance sheet optimization transaction in the near term. Further details on the transactions are available in supplemental slides included on Form 8-K filed with the Securities & Exchange Commission this morning. Details on First Quarter 2026 Results 2026 Continuing Operations Financial Outlook The company is affirming its prior guidance for net revenue and adjusted EBITDA for the full year 2026. Although the Company provides guidance for adjusted EBITDA (which is a non-GAAP financial measure), 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 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 First Quarter 2026 Financial Results Accendra Health will host a conference call for investors and analysts on Monday, May 11, 2026, at 8:30 a.m. 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, the adverse impact of failing to consummate all or part of the balance sheet optimization transaction on the terms described herein or at all, 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. The following items have been excluded in our non-GAAP financial measures: (1) Acquisition-related charges and intangible amortization for the three months ended March 31, 2025 includes $16 million of acquisition-related costs related to the terminated acquisition of Rotech, which consisted primarily of legal and professional fees. Acquisition-related charges and intangible amortization also include amortization of intangible assets established during acquisition method of accounting for business combinations. Acquisition-related charges consist primarily of one-time costs related to acquisitions, including transaction costs necessary to consummate acquisitions, such as advisory fees and legal fees, director and officer tail insurance expense, as well as transition costs, such as severance and retention bonuses, information technology (IT) integration costs and professional fees. These amounts are highly dependent on the size and frequency of acquisitions and are being excluded to allow for a more consistent comparison with forecasted, current and historical results. (2) During the three months ended March 31, 2026 exit and realignment (income) charges, net was $(24) million and primarily included a $(52) million gain on sales of patient service equipment in response to the contract termination with a commercial Payor, net separation costs incurred after the P&HS Sale of $26 million and charges related to IT and other strategic initiatives of $2.0 million. Exit and realignment charges, net were $14 million for the three months ended March 31, 2025 and primarily included professional fees associated with strategic initiatives of $6.2 million and wind-down costs of Fusion5 of $6.8 million. These costs are not normal recurring, cash operating expenses necessary for the Company to operate its business on an ongoing basis. (3) Litigation and related charges includes settlement costs and related charges of legal matters. These costs do not occur in the ordinary course of our business, and are inherently unpredictable in timing and amount. (4) Other depreciation and amortization relates to patient service equipment and other fixed assets, excluding such amounts captured within exit and realignment (income) charges, net or acquisition-related charges. (5) Stock compensation includes share-based compensation expense related to our share-based compensation plans, excluding such amounts captured within exit and realignment (income) charges, net or acquisition-related charges and intangible amortization. (6) For the three months ended March 31, 2026 and 2025, other includes interest costs and net actuarial losses related to our frozen noncontributory, unfunded retirement plan for certain retirees in the United States (U.S.). (7) Non-cash convert to sale write off expense includes non-cash charges primarily for equipment converted from rental to sales, excluding such amounts captured within in exit & realignment (income) charges, net. This reflects the non-cash write-off of the remaining book value of patient service equipment at the time of sale. The purchase of patient service equipment is captured within capital expenditures and is subsequently charged to our statements of operations through normal depreciation and this non-cash convert to sale write off expense. This line item does not include non-cash write off expense associated with sales of patient service equipment in connection with the contract termination with a commercial Payor, as such amounts are captured within exit & realignment (income) charges, net. (8) These charges and income have been tax effected by determining the income tax rate depending on the amount of charges incurred in different tax jurisdictions and the deductibility of those charges for income tax purposes. Use of Non-GAAP Measures This earnings release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). In general, the measures exclude items and charges that (i) management does not believe reflect Accendra Health, Inc.’s (the Company) core business and relate more to strategic, multi-year corporate activities; or (ii) relate to activities or actions that may have occurred over multiple or in prior periods without predictable trends. Management uses these non-GAAP financial measures internally to evaluate the Company’s performance, evaluate the balance sheet, engage in financial and operational planning and determine incentive compensation. Management provides these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on its financial and operating results and in comparing the Company’s performance to that of its competitors. However, the non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The non-GAAP financial measures disclosed by the Company should not be considered substitutes for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth above should be carefully evaluated. ACH-CORP ACH-IR View source version on businesswire.com: https://www.businesswire.com/news/home/20260511344561/en/ Contacts Investors Will Parrish Vice President, Strategy, Corporate Development, & Investor Relations [email protected] Media Darla Turner [email protected]