Q2 2026 Accendra Health Inc Earnings Call Transcript
Key Points
- Revenue growth improved sequentially from Q1 to Q2, with sleep category growing 5.5% and diabetes growing 4%.
- Successfully renewed the largest soft good contract with the largest commercial payer, providing stability for years.
- Signed a new sole-source agreement with a regional health system and a broader enterprise-wide fee-for-service agreement with another payer.
- Completed balance sheet optimization in June, reducing total debt by nearly $400 million and extending debt maturity to 2029.
- Identified and eliminated more than $125 million in annualized costs, with additional cost reductions already executed in Q3.
- Second quarter results missed expectations due to revenue growth below forecast, timing of cost reductions, and slower collection rate recovery.
- Collection rate issues with certain commercial payers negatively impacted revenue and adjusted EBITDA by nearly $20 million in the first half of 2026.
- Respiratory and Wound categories continued to decline year-over-year, with no recovery expected until late 2026.
- Revised full-year 2026 revenue guidance down to $2.45-$2.55 billion and adjusted EBITDA to $300-$320 million.
- Free cash flow for 2026 is now expected to be breakeven to slightly positive, with cash balances low and reliance on revolver draws.
Good morning and thank you for standing by. Welcome to the Accendra Health second quarter 2026 earnings conference call. Please be advised that today's conference call is being recorded. (Operator Instructions)
I would now like to hand the conference call over to your first speaker today, Will Parrish, Vice President, Strategy, Corporate Development and Investor Relations.
Thank you, operator, and good morning, everyone. I'd like to welcome you to Accendra Health's second quarter earnings call. Our comments on the call will be focused on the financial results of the second quarter of 2026, all of which are included in today's press release. The press release, along with the second quarter 2026 supplemental slides, which we will refer to throughout the call are posted in the Investor Relations section of our website.
Please note that during this call, we will make forward-looking statements that reflect the current views of Accendra
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