Acquisitions

9 Months Ended

Sep. 30, 2025

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

The Company’s acquisitions are accounted for using the acquisition method pursuant to the requirements of FASB ASC Topic 805, Business Combinations ("ASC 805"), and are included in the Company’s consolidated financial statements since the respective acquisition date. See Note 1, General Information - Business Combinations, for more information on the Company's use of the acquisition method of accounting for business acquisitions.

During the nine months ended September 30, 2025, the Company acquired certain assets of two HME providers, each of which was accounted for as a business combination under ASC 805. The goodwill generated from these acquisitions is attributable to expected growth and cost synergies, as well as the expected contribution of each acquisition to the Company’s overall strategy. The goodwill recorded during the nine months ended September 30, 2025 is expected to be deductible for tax purposes. The total consideration paid for these two acquisitions consisted of cash payments of $18.6 million at closing.

The Company allocated the consideration paid to the net assets acquired based on their estimated acquisition date fair values. Based upon management’s evaluation, the consideration paid for all acquisitions during the nine months ended September 30, 2025 was allocated as follows during the period (in thousands):


Inventory	$	635
Equipment and other fixed assets	2,275
Operating lease right-of-use assets	824
Goodwill	15,651
Operating lease liabilities	(824)
Net assets acquired	$	18,561

The Company did not complete any acquisitions during the nine months ended September 30, 2024.

Net revenue and operating income since the respective acquisition date for the acquisitions described above were immaterial for the three and nine months ended September 30, 2025.