Earnings Per Share

9 Months Ended

Sep. 30, 2025

Earnings Per Share ("EPS") is computed by dividing net income by the weighted average number of common shares outstanding during the period on a basic and diluted basis. The Company computes diluted net 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 units, outstanding stock options and outstanding preferred stock. See Note 12, Stockholders' Equity, for additional discussion of these potential dilutive securities.

Diluted net 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 income per share. Computation of diluted net 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 income per share were as follows (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Numerator
Net income attributable to AdaptHealth Corp.	$	24,509	$	22,859	$	31,976	$	40,160
Less: Earnings allocated to participating securities (1)	2,058		1,933		2,690		3,415
Net income for basic EPS	$	22,451	$	20,926	$	29,286	$	36,745
Change in fair value of warrant liability (2)	—		—		—		—
Net income for diluted EPS	$	22,451	$	20,926	$	29,286	$	36,745

Denominator (1) (2)
Basic weighted-average common shares outstanding	135,345		134,303		135,048		133,481
Add: Warrants (2)	—		—		—		—
Add: Stock options	206		301		215		245
Add: Unvested restricted stock units	1,660		1,926		1,839		1,715
Diluted weighted-average common shares outstanding	137,211		136,530		137,102		135,441

Basic net income per share	$	0.17	$	0.16	$	0.22	$	0.28
Diluted net income per share	$	0.16	$	0.15	$	0.21	$	0.27

(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.

(2)Under the treasury stock method, the impact on earnings from the change in fair value of the Company's warrant liability was excluded from the numerator, and the corresponding security was included in the denominator, for purposes of computing diluted net income per share if the effect of the adjustment was dilutive to EPS. For the three and nine months ended September 30, 2024, this adjustment was excluded from the computation of diluted net income per share since its inclusion would have been anti-dilutive. This adjustment was not applicable to the computation of diluted net income per share for the three and nine months ended September 30, 2025 since the warrants were not outstanding during those periods.

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 income per share for the three and nine months ended September 30, 2025 and 2024 because to do so would be antidilutive (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
Preferred Stock	12,406	12,406	12,406	12,406
Warrants	—	3,872	—	3,872
Stock options	739	2,128	730	2,184
Unvested restricted stock units	2,456	1,427	2,277	1,638
Total	15,601	19,833	15,413	20,100