Accendra Health Q2 Loss Widens, Cash Dwindles to $7.7M After Debt Overhaul
ACH is trading near its 52-week low of $1.3 (0.8% above the low) on elevated volume (4.7× avg).
Summary
Accendra Health reported a Q2 loss of $1.16/share on declining revenue, with cash reserves falling to just $7.7 million. The company completed a debt restructuring that extended maturities but increased interest costs, and it faces ongoing separation costs from the P&HS sale.
Key Events · Earnings and Guidance · ACH
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Q2 Loss of $1.16/Share
Net loss from continuing operations was $89.1 million, or $1.16 per share, compared to a loss of $1.09 per share a year ago. Revenue declined 10.1% to $613.2 million, driven by the loss of a major commercial payor contract.
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Cash Plummets to $7.7 Million
Cash and cash equivalents fell from $282 million at year-end 2025 to just $7.7 million at June 30, 2026. Operating activities used $76.1 million in the first six months, including $24 million in P&HS sale costs and a $19 million tax payment.
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Debt Restructuring Completed
In June 2026, the company exchanged nearly all of its unsecured notes for new 9.000% first-lien notes due 2032 and 9.750% second-lien notes due 2033, extinguishing the Term Loan A. The transaction resulted in a $17.3 million loss on modification and extinguishment of debt.
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Liquidity Reliant on Revolver and Receivables Sales
With cash nearly depleted, the company has $271 million available under its reduced $300 million revolving credit facility and continues to sell receivables under a $150 million program. No debt maturities are due until 2029.
Analysis · ACH · Trade & Services
Accendra Health's Q2 results reveal deepening losses and a sharp cash burn. Revenue fell 10% to $613M, and the net loss reached $89M, or $1.16 per share. Cash plunged to just $7.7M from $282M at year-end, driven by negative operating cash flow of $76M and heavy debt restructuring costs. The company completed a major debt exchange in June, pushing out maturities but at the cost of higher interest rates (9%–9.75%) and a $17M modification loss. While the restructuring removes near-term default risk, the liquidity position is precarious — the company is relying on a reduced $300M revolver and receivables sales to fund operations. The stock trades near its 52-week low of $1.30, reflecting the market's concern about the sustainability of the business.
At the time of this filing, ACH was trading at $1.31 on NYSE in the Trade & Services sector, with a market capitalization of approximately $214.4M. The 52-week trading range was $1.30 to $7.10. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.