AdaptHealth Corp.AHCO
AdaptHealth Corp. Earnings Per Share Disclosure
Earnings (Loss) Per Share
Earnings (Loss) Per Share ("EPS") is computed by dividing net (loss) income by the weighted average number of common shares outstanding during the period on a basic and diluted basis. The Company computes diluted net (loss) income per share using the more dilutive of the treasury stock method and the two-class method after giving effect to all potential dilutive Common Stock.
The Company’s potentially dilutive securities include potential common shares related to unvested restricted stock, outstanding stock options and outstanding preferred stock. See Note 13, Stockholders' Equity, for additional discussion of these potential dilutive securities.
Diluted net (loss) income per share considers the impact of potentially dilutive securities except when the potential common shares have an antidilutive effect. The Company’s outstanding preferred stock are considered participating securities, thus requiring the two-class method of computing diluted net (loss) income per share. Computation of diluted net (loss) income per share under the two-class method excludes from the numerator any dividends paid or owed on
participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator.
Computations of basic and diluted net (loss) income per share were as follows (in thousands, except per share data):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Numerator | |||||||||||||||||
| Net (loss) income attributable to AdaptHealth Corp. | $ | (70,794) | $ | 90,422 | $ | (678,895) | |||||||||||
Less: Earnings allocated to participating securities (1) | — | 7,675 | — | ||||||||||||||
| Net (loss) income for basic EPS | $ | (70,794) | $ | 82,747 | $ | (678,895) | |||||||||||
Change in fair value of warrant liability (2) | — | — | (34,482) | ||||||||||||||
| Net (loss) income for diluted EPS | $ | (70,794) | $ | 82,747 | $ | (713,377) | |||||||||||
Denominator (1) (2) | |||||||||||||||||
| Basic weighted-average common shares outstanding | 135,146 | 133,756 | 134,156 | ||||||||||||||
Add: Warrants (2) | — | — | 262 | ||||||||||||||
| Add: Stock options | — | 251 | — | ||||||||||||||
| Add: Unvested restricted stock | — | 1,524 | — | ||||||||||||||
| Diluted weighted-average common shares outstanding | 135,146 | 135,531 | 134,418 | ||||||||||||||
| Basic net (loss) income per share | $ | (0.52) | $ | 0.62 | $ | (5.06) | |||||||||||
| Diluted net (loss) income per share | $ | (0.52) | $ | 0.61 | $ | (5.31) | |||||||||||
(1)The Company's preferred stock are considered participating securities. Computation of EPS under the two-class method excludes from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. There were no amounts allocated to the participating securities during the years ended December 31, 2025 and 2023 due to the net losses reported in those periods.
(2)For the year ended December 31, 2023, the impact to earnings from the change in fair value of the Company’s warrant liability is excluded from the numerator, and the corresponding security is included in the denominator, for purposes of computing diluted net loss per share. This adjustment is included as the effect of the numerator and denominator adjustments for this derivative instrument is dilutive as a result of the non-cash gain recognized for the change in fair value of this instrument during the period. For the years ended December 31, 2025 and 2024, this adjustment was not applicable to the computation of diluted net (loss) income per share since the warrants were no longer outstanding as of December 31, 2025 and 2024. See Note 13, Stockholders' Equity, for additional details.
Due to the Company reporting a net loss attributable to AdaptHealth Corp. for the years ended December 31, 2025 and 2023, all potentially dilutive securities related to unvested restricted stock and outstanding stock options were excluded from the computation of diluted net loss per share for those periods as their inclusion would have been anti-dilutive.
The table below provides the weighted-average number of potential common shares associated with outstanding securities not included in the Company’s computation of diluted net (loss) income per share for the years ended December 31, 2025, 2024 and 2023 because to do so would be antidilutive (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Preferred Stock | 12,406 | 12,406 | 12,406 | ||||||||||||||
| Stock Options | 945 | 1,943 | 3,409 | ||||||||||||||
| Unvested restricted stock | 4,017 | 1,545 | 1,993 | ||||||||||||||
| Total | 17,368 | 15,894 | 17,808 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Mar 6, 2020 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.