Accendra Health Inc 10-Q for FY2026 Q3

Accendra Health Inc (ACH)

10-Q 2026-11-06 For: 2026-09-30

Added on November 06, 2026

About this 10-Q

Accendra Health Inc filed this 10-Q on November 6, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Accendra Health said net revenue declined $210 million, or 10.2%, for the nine months ended September 30, 2026, primarily due to terminated commercial Payor contracts. AI summary

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $601.78M; down 13.7% from $697.26M a year earlier
Net loss: $19.7M; compared with a net loss of $150.28M a year earlier
Diluted EPS: -$0.25; compared with -$1.94 a year earlier

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	Virginia		54-1701843
	(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

	4435 Waterfront Drive, Suite 300 Glen Allen, Virginia		23060
	(Address of principal executive offices)		(Zip Code)

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $2 par value per share		ACH		New York Stock Exchange


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐


Part I. Financial Information		Page

Item 1.	Financial Statements	3
	Condensed Consolidated Statements of Operations—Three and Nine Months Ended September 30, 2026 and 2025	3
	Condensed Consolidated Statements of Comprehensive Loss—Three and Nine Months Ended September 30, 2026 and 2025	4
	Condensed Consolidated Balance Sheets—September 30, 2026 and December 31, 2025	5
	Condensed Consolidated Statements of Cash Flows—Nine Months Ended September 30, 2026 and 2025	6
	Condensed Consolidated Statements of Changes in (Deficit) Equity—Three and Nine Months Ended September 30, 2026 and 2025	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	35

Part II. Other Information

Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 5.	Other Information	37
Item 6.	Exhibits	38
	Signatures	39


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
(in thousands, except per share data)		2026			2025			2026			2025
Net revenue		$	601,775		$	697,264		$	1,842,789		$	2,053,065
Operating costs and expenses:
Cost of net revenue			340,469			375,067			1,040,049			1,087,024
Selling, general and administrative expenses			249,463			265,838			748,248			796,061
Transaction breakage fee			—			—			—			80,000
Acquisition-related charges and intangible amortization			4,975			29,229			63,433			66,603
Exit and realignment charges, net			5,534			660			7,750			16,826
Total operating costs and expenses			600,441			670,794			1,859,480			2,046,514
Operating income (loss)			1,334			26,470			(16,691)			6,551
Interest expense, net			37,621			29,029			104,509			79,252
Loss on modification and extinguishment of debt			—			—			17,296			—
Transaction financing fees, net			—			—			—			18,288
Other expense, net			532			1,076			2,197			2,993
Loss from continuing operations before income taxes			(36,819)			(3,635)			(140,693)			(93,982)
Income tax (benefit) provision			(18,858)			1,972			(27,194)			(743)
Loss from continuing operations, net of tax			(17,961)			(5,607)			(113,499)			(93,239)
Loss from discontinued operations, net of tax			(1,738)			(144,669)			(1,738)			(951,077)
Net loss		$	(19,699)		$	(150,276)		$	(115,237)		$	(1,044,316)

Basic loss per common share:
Loss from continuing operations, net of tax		$	(0.23)		$	(0.07)		$	(1.48)		$	(1.21)
Loss from discontinued operations, net of tax			(0.02)			(1.87)			(0.02)			(12.34)
Net loss		$	(0.25)		$	(1.94)		$	(1.50)		$	(13.55)

Diluted loss per common share:
Loss from continuing operations, net of tax		$	(0.23)		$	(0.07)		$	(1.48)		$	(1.21)
Loss from discontinued operations, net of tax			(0.02)			(1.87)			(0.02)			(12.34)
Net loss		$	(0.25)		$	(1.94)		$	(1.50)		$	(13.55)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


		September 30,			December 31,
(in thousands, except per share data)		2026			2025
Assets
Current assets
Cash and cash equivalents		$	26,608		$	281,989
Accounts receivable, net			107,323			95,907
Inventories, net			82,103			74,435
Other current assets			57,886			95,540
Total current assets			273,920			547,871
Patient service equipment and other fixed assets, net of accumulated depreciation and amortization of $209,844 and $207,595			218,237			256,161
Operating lease assets			92,376			109,099
Goodwill			1,228,140			1,228,140
Intangible assets, net			73,032			136,465
Other assets, net			193,209			174,025
Total assets		$	2,078,914		$	2,451,761
Liabilities and (deficit) equity
Current liabilities
Accounts payable		$	381,885		$	363,565
Accrued payroll and related liabilities			32,706			69,426
Current portion of long-term debt			35,000			250,000
Other current liabilities			221,905			264,084
Total current liabilities			671,496			947,075
Long-term debt, excluding current portion			1,719,966			1,799,876
Operating lease liabilities, excluding current portion of $35,991 and $43,272			60,531			70,317
Other liabilities			195,151			95,471
Total liabilities			2,647,144			2,912,739
Commitments and contingencies
(Deficit) equity
Common stock, par value $2 per share; authorized - 200,000 shares; issued and outstanding - 76,924 shares and 76,388 shares			153,849			152,777
Paid-in capital			474,210			466,882
Accumulated deficit			(1,194,989)			(1,079,752)
Accumulated other comprehensive loss			(1,300)			(885)
Total deficit			(568,230)			(460,978)
Total liabilities and deficit		$	2,078,914		$	2,451,761


		Nine Months Ended September 30,
(in thousands)		2026			2025
Operating activities:
Net loss		$	(115,237)		$	(1,044,316)
Loss from discontinued operations, net of tax			1,738			951,077
Adjustments to reconcile net loss to cash used for operating activities:
Depreciation and amortization			166,361			149,988
Share-based compensation expense			9,207			9,125
Deferred income tax benefit			(50,789)			(17,042)
Changes in operating lease right-of-use assets and lease liabilities			(344)			4,535
Gain from sale of non-core asset			(32,544)			—
Gain from sale and dispositions of patient service equipment			(64,667)			(16,385)
Changes in operating assets and liabilities:
Accounts receivable, net			(11,416)			15,539
Inventories			(9,994)			3,734
Accounts payable			28,773			(20,284)
Accrued interest expense			19,204			4,697
Accrued payroll and related liabilities			(11,143)			(28,447)
Net change in other assets and liabilities			(25,669)			1,345
Other, net			3,025			6,159
Cash used for operating activities from discontinued operations			—			(189,701)
Cash used for operating activities			(93,495)			(169,976)
Investing activities:
Additions to patient service equipment ($123,648 and $143,790) and other fixed assets			(128,395)			(145,542)
Proceeds from sale of patient service equipment			125,042			53,369
Additions to computer software			(2,822)			(7,308)
Proceeds from sale of non-core asset			32,521			—
Other, net			2,100			(1,910)
Cash used for investing activities from discontinued operations			—			(39,190)
Cash provided by (used for) investing activities			28,446			(140,581)
Financing activities:
Borrowings under Revolving Credit Agreement			697,600			2,442,484
Repayments under Revolving Credit Agreement			(866,100)			(2,171,784)
Proceeds from debt issuance			1,237,315			—
Repayments of debt			(1,237,315)			—
Financing costs paid			(21,182)			—
Repurchase of common stock			—			(6,656)
Other, net			(610)			(3,375)
Cash provided by financing activities from discontinued operations			—			44,905
Cash (used for) provided by financing activities			(190,292)			305,574
Effect of exchange rate changes on cash and cash equivalents			(40)			1,767
Net decrease in cash and cash equivalents			(255,381)			(3,216)
Cash and cash equivalents at beginning of period			281,989			49,382
Cash and cash equivalents at end of period		$	26,608		$	46,166
Supplemental disclosure of cash flow information:
Income taxes paid, net		$	21,605		$	8,784
Interest paid		$	90,185		$	96,138
Noncash investing activity:
Unpaid purchases of patient service equipment and other fixed assets at end of period		$	61,862		$	71,823


				Common									Accumulated
		Common		Stock						(Accumulated Deficit)			Other
		Shares		($2 par			Paid-In			Retained			Comprehensive			Total
(in thousands, except per share data)		Outstanding		value)			Capital			Earnings			Loss			(Deficit) Equity
Balance, December 31, 2025		76,388		$	152,777		$	466,882		$	(1,079,752)		$	(885)		$	(460,978)
Net loss		—			—			—			(6,468)			—			(6,468)
Other comprehensive income		—			—			—			—			87			87
Share-based compensation expense, exercises and other		196			390			2,204			—			—			2,594
Balance, March 31, 2026		76,584			153,167			469,086			(1,086,220)			(798)			(464,765)
Net loss		—			—			—			(89,070)			—			(89,070)
Other comprehensive loss		—			—			—			—			(253)			(253)
Share-based compensation expense, exercises and other		321			642			2,508			—			—			3,150
Balance, June 30, 2026		76,905			153,809			471,594			(1,175,290)			(1,051)			(550,938)
Net loss		—			—			—			(19,699)			—			(19,699)
Other comprehensive loss		—			—			—			—			(249)			(249)
Share-based compensation expense, exercises and other		19			40			2,616			—			—			2,656
Balance, September 30, 2026		76,924		$	153,849		$	474,210		$	(1,194,989)		$	(1,300)		$	(568,230)

Balance, December 31, 2024		77,199		$	154,398		$	454,151		$	27,159		$	(49,344)		$	586,364
Net loss		—			—			—			(24,982)			—			(24,982)
Other comprehensive income		—			—			—			—			5,133			5,133
Share-based compensation expense, exercises and other		194			387			5,580			—			—			5,967
Shares repurchased and retired		(173)			(346)			—			(1,157)			—			(1,503)
Balance, March 31, 2025		77,220			154,439			459,731			1,020			(44,211)			570,979
Net loss		—			—			—			(869,058)			—			(869,058)
Other comprehensive income		—			—			—			—			13,992			13,992
Share-based compensation expense, exercises and other		630			1,260			6,970			—			—			8,230
Shares repurchased and retired		(653)			(1,306)			—			(3,847)			—			(5,153)
Balance, June 30, 2025		77,197			154,393			466,701			(871,885)			(30,219)			(281,010)
Net loss		—			—			—			(150,276)			—			(150,276)
Other comprehensive loss		—			—			—			—			(194)			(194)
Share-based compensation expense, exercises and other		102			205			1,768			—			—			1,973
Balance, September 30, 2025		77,299		$	154,598		$	468,469		$	(1,022,161)		$	(30,413)		$	(429,507)


		Three Months Ended September 30,				Nine Months Ended September 30,
		2026		2025		2026		2025
Net revenue		$	—	$	2,007,078	$	—	$	5,945,052
Cost of goods sold			—		1,818,935		—		5,349,578
Gross profit			—		188,143		—		595,474
Distribution, selling, and administrative expenses			—		186,885		—		596,240
Acquisition-related charges and intangible amortization			—		—		—		12,549
Exit and realignment charges, net			—		25,122		—		57,713
Goodwill impairment charge			—		—		—		106,389
Purchase price adjustment			6,719		—		6,719		—
Loss on classification to held for sale			—		122,500		—		771,640
Other operating expense, net			—		2,217		—		6,923
Operating loss			(6,719)		(148,581)		(6,719)		(955,980)
Interest expense, net			—		7,636		—		27,828
Other expense			—		269		—		799
Loss from discontinued operations before income taxes			(6,719)		(156,486)		(6,719)		(984,607)
Income tax benefit for discontinued operations			(4,981)		(11,817)		(4,981)		(33,530)
Loss from discontinued operations, net of tax		$	(1,738)	$	(144,669)	$	(1,738)	$	(951,077)


Year
2026 (remainder)	$	4,689
2027		13,872
2028		11,953
2029		11,953
2030		11,953
Thereafter		18,612
Total future amortization	$	73,032


		Total
Accrued exit and realignment costs, December 31, 2025		$	4,644
Provision for exit and realignment activities:
P&HS Sale separation costs, professional fees and other			21,981
Professional fees			378
IT and other strategic initiatives			1,990
Cash payments			(2,294)
Accrued exit and realignment costs, March 31, 2026			26,699
Provision for exit and realignment activities:
P&HS Sale separation costs, professional fees and other			21,841
Professional fees			2,128
IT and other strategic initiatives			1,014
Cash payments			(17,150)
Accrued exit and realignment costs, June 30, 2026			34,532
Provision for exit and realignment activities:
P&HS Sale separation costs, professional fees and other			34,409
Professional fees			1,397
IT and other strategic initiatives			2,910
Cash payments			(15,071)
Accrued exit and realignment costs, September 30, 2026		$	58,177

Accrued exit and realignment costs, December 31, 2024		$	6,732
Provision for exit and realignment activities:
Professional fees			6,176
IT strategic initiatives and other			304
Cash payments			(7,516)
Accrued exit and realignment costs, March 31, 2025			5,696
Provision for exit and realignment activities:
Professional fees			1,916
IT strategic initiatives and other			192
Cash payments			(6,119)
Accrued exit and realignment costs, June 30, 2025			1,685
Provision for exit and realignment activities:
Professional fees			111
IT strategic initiatives and other			437
Cash payments			(863)
Accrued exit and realignment costs, September 30, 2025		$	1,370


		September 30, 2026						December 31, 2025
		Carrying			Estimated			Carrying			Estimated
		Amount			Fair Value			Amount			Fair Value
Term Loan A		$	—		$	—		$	324,647		$	321,356
Revolving Credit Agreement			35,000			35,000			203,500			203,500
4.500% Senior Notes, due March 2029			338			239			475,077			327,261
Term Loan B			504,453			455,429			502,489			492,159
6.625% Senior Notes, due April 2030			4,170			2,485			544,163			348,901
9.000% Senior Secured Notes, due June 2032			520,503			459,554			—			—
9.750% Senior Secured Notes, due June 2033			690,502			250,011			—			—
Total debt			1,754,966			1,202,718			2,049,876			1,693,177
Less current maturities, including anticipated repayments			(35,000)			(35,000)			(250,000)			(250,000)
Long-term debt		$	1,719,966		$	1,167,718		$	1,799,876		$	1,443,177


Year
2026 (remainder)	$	35,000
2027		—
2028		—
2029		511,338
2030		4,170
2031		—
2032		539,250
2033		698,065


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
Diabetes	$	195,615	$	201,372	$	580,222	$	579,788
Sleep therapy		144,487		185,799		460,433		549,280
Home respiratory therapy		88,947		107,256		277,297		325,388
Ostomy		55,227		53,274		162,239		154,666
Wound care		41,603		48,001		121,239		141,469
Urology		28,710		28,976		89,796		85,815
Other		47,186		72,586		151,563		216,659
Net revenue	$	601,775	$	697,264	$	1,842,789	$	2,053,065


		December 31, 2025
Notional Amount		$	250,000
Derivative Assets Fair Value		$	1,338
Derivative Liabilities Fair Value		$	—
Maturity Date			March 2027
Classification			Other assets, net


		Three Months Ended
		September 30,						Change
(Dollars in thousands)		2026			2025			$			%
Diabetes		$	195,615		$	201,372		$	(5,757)		(2.9)	%
Sleep therapy			144,487			185,799			(41,312)		(22.2)	%
Home respiratory therapy			88,947			107,256			(18,309)		(17.1)	%
Ostomy			55,227			53,274			1,953		3.7	%
Wound care			41,603			48,001			(6,398)		(13.3)	%
Urology			28,710			28,976			(266)		(0.9)	%
Other			47,186			72,586			(25,400)		(35.0)	%
Net revenue		$	601,775		$	697,264		$	(95,489)		(13.7)	%


		Nine Months Ended
		September 30,						Change
(Dollars in thousands)		2026			2025			$			%
Diabetes		$	580,222		$	579,788		$	434		0.1	%
Sleep therapy			460,433			549,280			(88,847)		(16.2)	%
Home respiratory therapy			277,297			325,388			(48,091)		(14.8)	%
Ostomy			162,239			154,666			7,573		4.9	%
Wound care			121,239			141,469			(20,230)		(14.3)	%
Urology			89,796			85,815			3,981		4.6	%
Other			151,563			216,659			(65,096)		(30.0)	%
Net revenue		$	1,842,789		$	2,053,065		$	(210,276)		(10.2)	%


					Currency
		Retirement			Translation
		Plans			Adjustments			Derivatives			Total
Accumulated other comprehensive (loss) income, June 30, 2026		$	(1,811)		$	(146)		$	906		$	(1,051)
Other comprehensive income (loss) before reclassifications			42			22			—			64
Income tax			(11)			—			—			(11)
Other comprehensive income (loss) before reclassifications, net of tax			31			22			—			53
Amounts reclassified from accumulated other comprehensive income (loss)			—			—			(408)			(408)
Income tax			—			—			106			106
Amounts reclassified from accumulated other comprehensive income (loss), net of tax			—			—			(302)			(302)
Other comprehensive income (loss)			31			22			(302)			(249)
Accumulated other comprehensive (loss) income, September 30, 2026		$	(1,780)		$	(124)		$	604		$	(1,300)


(in thousands, except per share data)
Period	Total Number of Shares Purchased		Average Price Paid Per Share	Total Number of Shares Purchased as Part of Publicly Announced Program ⁽¹⁾		Approximate Dollar Value of Shares That May Yet be Purchased Under the Program ⁽²⁾
February 26-February 28, 2025	—	$	—	—	$	100,000
March 1-March 31, 2025	173	$	8.66	173	$	98,500
April 1-April 30, 2025	653	$	7.87	653	$	93,360
May 1-May 31, 2025	—	$	—	—	$	93,360
June 1-June 30, 2025	—	$	—	—	$	93,360
July 1-July 31, 2025	—	$	—	—	$	93,360
August 1-August 31, 2025	—	$	—	—	$	93,360
September 1-September 30, 2025	—	$	—	—	$	93,360
October 1-October 31, 2025	—	$	—	—	$	93,360
November 1-November 30, 2025	1,129	$	3.10	1,129	$	89,860
December 1-December 31, 2025	—	$	—	—	$	89,860
January 1-January 31, 2026	—	$	—	—	$	89,860
February 1-February 28, 2026	—	$	—	—	$	89,860
March 1-March 31, 2026	—	$	—	—	$	89,860
April 1-April 30, 2026	—	$	—	—	$	89,860
May 1-May 31, 2026	—	$	—	—	$	89,860
June 1-June 30, 2026	—	$	—	—	$	89,860
July 1-July 31, 2026	—	$	—	—	$	89,860
August 1-August 31, 2026	—	$	—	—	$	89,860
September 1-September 30, 2026	—	$	—	—	$	89,860
Total ⁽³⁾	1,955			1,955

3.1
3.1		Articles of Amendment designating Series C Cumulative Preferred Stock of Accendra Health, Inc., as filed with the Secretary of the Commonwealth of Virginia on August 10, 2026 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on August 10, 2026).

4.1		Section 382 Rights Agreement, dated as of August 10, 2026, between Accendra Health, Inc. and Computershare Trust Company, N.A., as rights agent (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on August 10, 2026).

10.1		Offer Letter, accepted September 16, 2026, between Accendra Health, Inc. and Kenneth Gardner-Smith (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on September 17, 2026).

10.2		Consulting Agreement, dated September 28, 2026, between Accendra Health, Inc. and Edward A. Pesicka (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K/A filed on September 28, 2026).

31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS		Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101)


	Accendra Health, Inc.
	(Registrant)

Date: November 5, 2026	/s/ Kenneth Gardner-Smith
	Kenneth Gardner-Smith
	President, Chief Executive Officer & Director

Date: November 5, 2026	/s/ Jonathan A. Leon
	Jonathan A. Leon
	Executive Vice President & Chief Financial Officer