Accendra Health, Inc.

What they do

Accendra Health (formerly Owens & Minor) operates as a single segment providing home respiratory therapy, obstructive sleep apnea treatment, and other home medical equipment and disposable medical supplies. It generates revenue through fee-for-service and capitation contracts with government and commercial payors, selling and renting products directly to patients and home health agencies. The company's brands include Apria and Byram Healthcare.

Revenue drivers

• Home respiratory therapy — Includes home oxygen and non-invasive ventilation services, a core part of the product offering.
• Obstructive sleep apnea treatment — Provides CPAP and bi-level positive airway pressure devices and patient support services.
• Other home medical equipment and supplies — Includes ostomy, wound care (including negative pressure wound therapy), urology, and incontinence products.
• Payer mix — Revenue comes from Medicare, Medicaid, commercial insurers, managed care plans, and direct patient payments; a large commercial payor represented 12% of 2025 net revenue.

Recent performance

For Q2 2026, net revenue was $613.2 million, down from $681.9 million in Q2 2025. GAAP loss from continuing operations was $89.1 million in Q2 2026 versus $83.8 million in the prior year quarter. Adjusted EBITDA decreased to $60.1 million from $96.6 million. The company reduced total debt by $385 million in Q2 2026. Revenue declined partly due to the wind-down of contracts with a large commercial payor.

Strategy

Management is focused on completing the separation from Owens & Minor and resetting the cost base, having eliminated over $125 million in annualized operating expense tied to the exiting commercial payor. Growth initiatives include the nationwide rollout of a 'Sleep Center of Excellence' and new commercial agreements. The company completed a balance sheet optimization in June 2026 that reset its debt maturity profile. CEO Ed Pesicka plans to retire by end of 2026, with a succession process underway.

Risks

• Customer concentration — A large commercial payor represented 12% of 2025 net revenue and is terminating contracts, with transitions continuing into H1 2026.
• Negative equity — Shareholder equity was negative $550.9 million as of June 30, 2026, with total liabilities exceeding assets.
• Liquidity risk — Cash and equivalents were only $7.7 million as of June 30, 2026, down from $282.0 million at year-end 2025.
• Debt burden — Despite $385 million debt reduction, the company continues to carry significant long-term debt, with interest expense of $34.5 million in Q2 2026 and a $17.3 million loss on debt modification.

Outlook

For full-year 2026, the company guided revenue of $2.45-$2.55 billion, adjusted EBITDA of $300-$320 million, and free cash flow of breakeven to slightly positive. Management expects growth initiatives to start contributing in late 2026 and accelerate in 2027. The commercial payor wind-down is expected to continue through the first half of 2026, with minimal further impact anticipated.