Business Context and Reporting Period
Company: Accendra Health, Inc. (formerly Owens & Minor, Inc.)
Filing Type: Form 10-K (Annual Report)
Period Ended: December 31, 2025
Business Overview: Accendra Health is a leading nationwide provider of products, technology, and services supporting health beyond the hospital, operating under the Apria and Byram Healthcare brands. The company focuses on home respiratory therapy, sleep therapy, diabetes treatment, and medical supplies.
Major Corporate Event: On December 31, 2025, the Company completed the sale of its Products & Healthcare Services (P&HS) business to Dominion Healthcare Acquisition Corporation for approximately $375 million in cash. The Company retained a 5% equity interest. Consequently, the P&HS business is reported as discontinued operations, and Accendra Health now operates as a single-segment entity.
Key Financial Metrics
| Metric | 2025 (Continuing Ops) | 2024 (Continuing Ops) | Change |
|---|---|---|---|
| Net Revenue | $2,762.0 million | $2,680.1 million | +3.1% |
| Operating Income (Loss) | $27.5 million | $(217.7) million | Improvement |
| Net Loss (Continuing Ops) | $(102.7) million | $(350.7) million | Improvement |
| Net Loss (Total) | $(1,100.6) million | $(362.7) million | Worsened (due to discontinued ops) |
| Adjusted EBITDA | $374.8 million | $370.5 million | +1.2% |
| Free Cash Flow (Non-GAAP) | $98.3 million | $96.4 million | +2.0% |
| Total Debt (Principal) | $2.1 billion | $2.1 billion | Flat |
| Cash & Equivalents | $282.0 million | $27.6 million | +922.7% |
Note: Total Net Loss for 2025 includes a $998.0 million loss from discontinued operations related to the P&HS sale.
Material Changes vs. Prior Period
- Discontinued Operations: The sale of the P&HS business resulted in a $998.0 million loss from discontinued operations in 2025, primarily due to a $799.0 million loss on classification to held-for-sale and a $106.4 million goodwill impairment charge specific to the divested unit.
- Continuing Operations Performance: Continuing operations improved significantly from a $350.7 million loss in 2024 to a $102.7 million loss in 2025. This improvement was driven by the absence of the $307.1 million goodwill impairment charge recorded in 2024 and revenue growth of $82.0 million.
- One-Time Charges: 2025 results were negatively impacted by an $80.0 million transaction breakage fee paid to terminate the proposed acquisition of Rotech Healthcare and $18.3 million in transaction financing fees.
- Liquidity: Cash and cash equivalents increased to $282.0 million from $27.6 million, largely due to proceeds from the P&HS sale ($342.4 million) and the sale of patient service equipment ($78.0 million).
Guidance, Outlook, Risks, and Contingencies
Management Commentary and Outlook
Management expects the sale of the P&HS business to allow for a focus on the higher-growth, higher-margin Accendra Health business. Proceeds from the sale are intended to repay indebtedness. The company anticipates continued revenue growth in sleep therapy, ostomy, and urology categories.
Key Risks and Contingencies
- Payor Contract Termination: A large commercial payor terminated contracts representing $322.0 million (12% of 2025 net revenue), including nearly all capitation revenue ($231.0 million). Transitions are expected to continue through the first half of 2026.
- Debt Obligations: The company has $2.1 billion in aggregate principal indebtedness. Term Loan A and the Revolving Credit Facility mature in March 2027. Term Loan B and Senior Notes mature in 2029 and 2030. Refinancing risk is a material concern.
- Regulatory Environment: The company faces stringent regulations regarding Medicare/Medicaid reimbursement, fraud and abuse laws (Anti-Kickback, Stark Law, False Claims Act), and data privacy (HIPAA, CCPA). A Corporate Integrity Agreement (CIA) with the HHS OIG is expected to close in 2026.
- Goodwill Impairment: While no impairment was recorded in 2025 continuing operations, the company notes that further declines in market capitalization or failure to meet business plans could trigger future impairment charges.
- Tax Contingency: As of December 31, 2025, the company owed $35.0 million related to an IRS Notice of Proposed Adjustment (NOPA) regarding transfer pricing for tax years 2015-2018, including $11.0 million in accrued interest.
Investor Verification Checklist
- Payor Concentration: Verify the status of the $322 million contract termination and the timeline for customer transitions to the successor provider.
- Debt Maturity Wall: Assess the company's ability to refinance or repay the $250 million current debt maturity and the $280 million due in 2027 (Term Loan A and Revolver).
- Discontinued Operations Finality: Confirm the final purchase price adjustments for the P&HS sale and the status of the $65 million cap on separation cost reimbursements to the purchaser.
- Receivables Sale Program: Review the terms of the Amended Receivables Sale Program ($150 million capacity) and its impact on working capital and DSO.
- Tax Liability: Monitor the resolution of the IRS NOPA matter and the $35 million liability.