Segment Information (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Segment Reporting Information, by Segment

The following tables present segment net revenue, significant segment expenses, and other segment items that are included in the Company’s reported measure of segment profit or loss for the three and nine months ended September 30, 2025 and 2024 (in thousands):


	Three Months Ended September 30, 2025
	Sleep Health		Respiratory Health		Diabetes Health		Wellness at Home		Total
Net revenue	$	354,836	176,996		150,075		138,407		$	820,314
Less:
Cost of product and supplies (a)	115,602		32,722		110,497		61,664		320,485
Labor cost (a) (b)	86,410		56,426		12,860		31,624		187,320
Other operating expenses (a) (c)	34,442		15,565		2,090		10,244		62,341
Other segment items (d)	33,894		17,231		14,594		14,393		80,112
Adjusted EBITDA	$	84,488	$	55,052	$	10,034	$	20,482	$	170,056


	Three Months Ended September 30, 2024
	Sleep Health		Respiratory Health		Diabetes Health		Wellness at Home		Total
Net revenue	$	335,804	164,179		141,072		164,803		$	805,858
Less:
Cost of product and supplies (a)	106,327		31,689		104,703		77,301		320,020
Labor cost (a) (b)	79,612		53,867		11,727		36,558		181,764
Other operating expenses (a) (c)	32,098		15,180		1,726		11,781		60,785
Other segment items (d)	31,240		15,996		15,605		16,191		79,032
Adjusted EBITDA	$	86,527	$	47,447	$	7,311	$	22,972	$	164,257


	Nine Months Ended September 30, 2025
	Sleep Health		Respiratory Health		Diabetes Health		Wellness at Home		Total
Net revenue	$	1,005,876	512,927		433,880		445,885		$	2,398,568
Less:
Cost of product and supplies (a)	329,664		98,493		323,992		212,965		965,114
Labor cost (a) (b)	248,507		166,979		38,947		98,418		552,851
Other operating expenses (a) (c)	99,921		45,714		6,034		34,589		186,258
Other segment items (d)	98,895		52,250		42,933		46,729		240,807
Adjusted EBITDA	$	228,889	$	149,491	$	21,974	$	53,184	$	453,538


	Nine Months Ended September 30, 2024
	Sleep Health		Respiratory Health		Diabetes Health		Wellness at Home		Total
Net revenue	$	992,693	485,828		443,117		482,692		$	2,404,330
Less:
Cost of product and supplies (a)	315,829		88,916		312,523		232,617		949,885
Labor cost (a) (b)	236,079		155,520		37,666		108,693		537,958
Other operating expenses (a) (c)	96,022		40,936		7,719		36,283		180,960
Other segment items (d)	98,065		51,340		46,551		51,514		247,470
Adjusted EBITDA	$	246,698	$	149,116	$	38,658	$	53,585	$	488,057

(a)These expense categories align with the segment-level information that is regularly provided to the CODM and are considered significant to the segment in accordance with ASU No. 2023-07, Segment Reporting ("Topic 280"). The expense categories included in the tables above exclude amounts for patient equipment depreciation since these amounts are not reflected in the segment measure of profit or loss. Refer to the section below, titled Patient Equipment Depreciation, for discussion of such amounts.

(b)Excludes salaries, labor and benefits for corporate employees. Salaries, labor and benefits for corporate employees are included within Other segment items.

(c)Other operating expenses primarily include costs relating to rent and occupancy, facilities, fleet, and other operating costs.

(d)Other segment items include allocated costs related to various general and administrative functions, including revenue cycle management, customer service, technology and communications, sales and marketing, billings and

collections, accounting and finance, executive administration, human resources, information technology and legal and compliance.

The following table presents a reconciliation of total Adjusted EBITDA to consolidated income before income taxes for the three and nine months ended September 30, 2025 and 2024 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Total Adjusted EBITDA	$	170,056	$	164,257	$	453,538	$	488,057
Interest expense, net	(25,380)		(31,429)		(81,312)		(96,939)
Depreciation and amortization, including patient equipment depreciation	(97,716)		(90,759)		(284,421)		(274,797)
Equity-based compensation expense (a)	(5,311)		(863)		(16,738)		(10,614)
Change in fair value of warrant liability (b)	—		2,243		—		1,800
Goodwill impairment (c)	—		—		—		(13,078)
Gain on sale of businesses (d)	—		—		32,225		—
Loss on extinguishment of debt (e)	—		(2,273)		—		(2,273)
Litigation settlement expense (f)	—		—		—		(3,345)
Other non-recurring expenses, net (g)	(5,299)		(9,148)		(20,452)		(23,503)
Income before income taxes	$	36,350	$	32,028	$	82,840	$	65,308

(a)Represents equity-based compensation expense for awards granted to employees and non-employee directors.

(b)Represents non-cash gains for the change in the estimated fair value of the warrant liability. See Note 12, Stockholders' Equity – Warrants, for additional discussion of the non-cash gains. These warrants expired on November 8, 2024.

(c)Represents non-cash goodwill impairment charges relating to an immaterial business disposal during 2024.

(d)Represents the pre-tax gain associated with the dispositions of two businesses within the Company's Wellness at Home segment. See Note 4, Disposals, for additional discussion of such gain.

(e)Represents lender fees and the write-off of unamortized deferred financing costs in connection with the refinancing of the Company's credit agreement.

(f)The expense for the nine months ended September 30, 2024 consists of a $2.4 million charge for the change in fair value of shares of Common Stock of the Company that were issued in July 2024 following final court approval of a previously disclosed securities settlement, as well as an expense of $0.9 million to settle a shareholder derivative complaint.

(g)The expense for the nine months ended September 30, 2025 consists of $9.8 million of consulting expenses associated with asset dispositions (of which $5.1 million relates to contingent success fees from the sales of businesses), $2.3 million of consulting expenses associated with systems implementation activities, $1.7 million of consulting expenses associated with a reorganization project, $1.4 million of transaction costs associated with acquisitions, $1.2 million write-off of assets, and $4.1 million of other non-recurring expenses. The expense for the nine months ended September 30, 2024 consists of $9.7 million of consulting expenses associated with systems implementation activities, $3.3 million of severance charges (primarily related to the separation of the Company's former President), $3.3 million of expenses associated with litigation, $2.9 million of consulting expenses associated with asset dispositions, $2.7 million write-down of assets, and $1.6 million of other non-recurring expenses.

The following table presents the amounts of patient equipment depreciation by reportable segment for the three and nine months ended September 30, 2025 and 2024 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Patient equipment depreciation:
Sleep Health	$	38,251	$	39,584	$	115,048	$	124,514
Respiratory Health	35,885		24,486		96,801		68,301
Diabetes Health	2,391		2,022		6,961		5,978
Wellness at Home	11,088		13,404		34,901		41,981
Total patient equipment depreciation (1)	$	87,615	$	79,496	$	253,711	$	240,774

(1)Patient equipment depreciation is included in Cost of net revenue in the accompanying consolidated statements of operations. Patient equipment depreciation is not reflected in the segment measure of profit or loss but the CODM regularly reviews this information by reportable segment.