Accendra Health (ACH) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool Tue, May 12, 2026 at 12:38 AM GMT+7 28 min read ACH Image source: The Motley Fool. President & Chief Executive Officer — Edward Pesicka Chief Operating Officer — Perry Bernocchi Vice President, Investor Relations — Will Parrish Will Parrish: Thank you, operator, and good morning, everyone. I d like to welcome you to Accendra Health s First Quarter Earnings Call. Our comments on the call will be focused on the financial results of the first quarter of 2026, all of which are included in today s press release. The press release, along with the first 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 the call, we will make forward-looking statements that reflect the current views of sundra Health about our business, financial performance and future events. Matters addressed in these statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected or implied here today. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that our expectations, beliefs and projections will result or be achieved. Please refer to our SEC filings for a full description of these risks and uncertainties, including the Risk Factors section of our annual report on Form 10-K and quarterly reports on Form 10-Q. Any forward-looking statements that we make on this call in our earnings press release or in our supplemental slides are as of today, and we undertake no obligation to update these statements as a result of new information or future events except to the extent required by applicable law. In our discussion today, we will refer to non-GAAP financial measures and believe they might help investors to better understand our performance or business trends. Information about these measures and reconciliations to the most comparable GAAP financial measures are included in our press release. Today, I m joined by Ed Pesicka, Ascender Health s President and Chief Executive Officer; Jon Leon, the company s Chief Financial Officer; and Perry Bernocchi, the company s Chief Operating Officer. I will now turn the call over to Ed. Ed? Edward Pesicka: Thank you, Will. Good morning, everyone, and thank you for joining us on the call today. It is great to be reporting our first full quarter as a stand-alone pure-play home-based care company, Accendra Health s first quarter results were in line with our expectations and included key accomplishments in our transformation into a leaner, nimbler and higher-margin business, and we are excited about where we will go from here. . First, I am pleased to report that the transition services and separation activities from Owens & Minor are on track and going according to schedule, allowing Accendra Health to fully function as a completely independent company from Owens & Minor. And we are excited to be devoting all of our focus and energy to growing our leading position and capabilities in the home-based care space. Another update that I want to highlight is that as of the end of the first quarter, we have substantially completed the exit stemming from our previously disclosed transition away from a large commercial payor and the handover has gone as expected. With our team ensuring continuity of care for the patients, while also minimizing our cost to transition the business. To secure this smooth transition for patients, we engage with another industry player to sell them the substantial amount of Ascend owned equipment that was dedicated to the large commercial payors patients. And at the same time, we facilitated the transition of personnel, along with other variable and certain fixed costs from Accendra to that same industry player. This solution provided the best outcome for all stakeholders, particularly patients and also allowed us to quickly begin the rationalization of our corporate infrastructure as we pivot away from this large commercial payor. Again, while we never want to exit a customer relationship, we maintained our financial discipline throughout the contracting and transition process, and we are excited to have the vast majority of this exit behind us. I d also like to remind everyone that while we have exited our largest capitated agreement with this transition, we still have other smaller capitation agreements which are very attractive. Going forward, we will continue to be excited about pursuing both fee-for-service agreements as well as capitated agreements, which still can be very compelling under the right circumstances. Staying with our payors, I am happy to announce that we recently reached an agreement for an exclusive multiyear extension with our largest commercial payor for soft goods, such as ostomy, urology, diabetes, incontinence and others. This extens

Accendra Health (ACH) Q1 2026 Earnings Transcript

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Accendra Health (ACH) Q1 2026 Earnings Transcript

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