ACCENDRA HEALTH INC/VA/ 10-Q

Item 1. Financial Statements Owens & Minor, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands, except per share data) ​ 2025 2024 2025 2024 Net revenue ​ $ 697,264 ​ $ 686,846 ​ $ 2,053,065 ​ $ 1,985,089 Operating costs and expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cost of net revenue ​ 375,067 ​ 355,075 ​ 1,087,024 ​ 1,037,700 Selling, general and administrative expenses ​ 265,838 ​ 272,322 ​ 796,061 ​ 812,453 Transaction breakage fee ​ — ​ ​ — ​ 80,000 ​ ​ — Acquisition-related charges and intangible amortization ​ 29,229 ​ 14,855 ​ 66,603 ​ 42,905 Exit and realignment charges, net ​ ​ 660 ​ ​ 13,515 ​ ​ 16,826 ​ ​ 37,062 Total operating costs and expenses ​ ​ 670,794 ​ ​ 655,767 ​ ​ 2,046,514 ​ ​ 1,930,120 Operating income ​ 26,470 ​ 31,079 ​ 6,551 ​ 54,969 Interest expense, net ​ 29,029 ​ 28,953 ​ 79,252 ​ 79,949 Transaction financing fees, net ​ ​ — ​ ​ — ​ ​ 18,288 ​ ​ — Other expense, net ​ 1,076 ​ 1,168 ​ 2,993 ​ 2,869 (Loss) income from continuing operations before income taxes ​ ( 3,635 ) ​ 958 ​ ( 93,982 ) ​ ( 27,849 ) Income tax provision (benefit) ​ 1,972 ​ ( 303 ) ​ ( 743 ) ​ ( 8,974 ) (Loss) income from continuing operations, net of tax ​ ​ ( 5,607 ) ​ ​ 1,261 ​ ​ ( 93,239 ) ​ ​ ( 18,875 ) Loss from discontinued operations, net of tax ​ ​ ( 144,669 ) ​ ​ ( 14,031 ) ​ ​ ( 951,077 ) ​ ​ ( 47,695 ) Net loss ​ $ ( 150,276 ) ​ $ ( 12,770 ) ​ $ ( 1,044,316 ) ​ $ ( 66,570 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic loss per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ (Loss) income from continuing operations, net of tax ​ $ ( 0.07 ) ​ $ 0.02 ​ $ ( 1.21 ) ​ $ ( 0.25 ) Loss from discontinued operations, net of tax ​ ​ ( 1.87 ) ​ ​ ( 0.19 ) ​ ​ ( 12.34 ) ​ ​ ( 0.62 ) Net loss ​ $ ( 1.94 ) ​ $ ( 0.17 ) ​ $ ( 13.55 ) ​ $ ( 0.87 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted loss per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Loss) income from continuing operations, net of tax ​ $ ( 0.07 ) ​ $ 0.02 ​ $ ( 1.21 ) ​ $ ( 0.25 ) Loss from discontinued operations, net of tax ​ ​ ( 1.87 ) ​ ​ ( 0.18 ) ​ ​ ( 12.34 ) ​ ​ ( 0.62 ) Net loss ​ $ ( 1.94 ) ​ $ ( 0.16 ) ​ $ ( 13.55 ) ​ $ ( 0.87 ) ​ See accompanying notes to unaudited condensed consolidated financial statements. ​ ​ ​ 3 Table of Contents Owens & Minor, Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive (Loss) Income (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) ​ 2025 2024 ​ 2025 2024 Net loss ​ $ ( 150,276 ) ​ $ ( 12,770 ) ​ $ ( 1,044,316 ) ​ $ ( 66,570 ) Other comprehensive income (loss), net of tax: ​ ​ ​ ​ ​ ​ ​ ​ Currency translation adjustments ​ 262 ​ 25,966 ​ 20,992 ​ 7,398 Change in unrecognized net periodic pension costs ​ 100 ​ 265 ​ 983 ​ 699 Change in gains and losses on derivative instruments ​ ( 556 ) ​ ( 4,905 ) ​ ( 3,044 ) ​ ( 3,697 ) Total other comprehensive (loss) income, net of tax ​ ( 194 ) ​ 21,326 ​ 18,931 ​ 4,400 Comprehensive (loss) income ​ $ ( 150,470 ) ​ $ 8,556 ​ $ ( 1,025,385 ) ​ $ ( 62,170 ) ​ See accompanying notes to unaudited condensed consolidated financial statements. ​ ​ ​ 4 Table of Contents Owens & Minor, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, (in thousands, except per share data) ​ 2025 2024 Assets ​ ​ Current assets ​ ​ Cash and cash equivalents ​ $ 32,837 ​ $ 27,572 Accounts receivable, net ​ 202,731 ​ 218,270 Inventories ​ 63,847 ​ 67,581 Other current assets ​ 68,129 ​ 82,240 Current assets held for sale - discontinued operations ​ 1,764,129 ​ 1,625,354 Total current assets ​ 2,131,673 ​ 2,021,017 Patient service equipment and other fixed assets, net ​ 259,729 ​ 249,283 Operating lease assets ​ 119,093 ​ 126,928 Goodwill ​ 1,228,140 ​ 1,228,140 Intangible assets, net ​ 165,694 ​ 210,056 Other assets, net ​ 131,897 ​ 89,539 Noncurrent assets held for sale - discontinued operations ​ ​ — ​ ​ 731,193 Total assets ​ $ 4,036,226 ​ $ 4,656,156 Liabilities and equity ​ ​ Current liabilities ​ ​ Accounts payable ​ $ 339,728 ​ $ 359,927 Accrued payroll and related liabilities ​ 45,231 ​ 73,678 Current portion of long-term debt ​ ​ 280,000 ​ ​ 42,866 Other current liabilities ​ 455,203 ​ 294,685 Current liabilities held for sale - discontinued operations ​ 1,345,805 ​ ​ 1,080,896 Total current liabilities ​ 2,465,967 ​ 1,852,052 Long-term debt, excluding current portion ​ 1,835,261 ​ 1,798,393 Operating lease liabilities, excluding current portion ​ 81,352 ​ 89,466 Deferred income taxes, net ​ — ​ 19,436 Other liabilities ​ 83,153 ​ 72,551 Noncurrent liabilities held for sale - discontinued operations ​ — ​ 237,894 Total liabilities ​ 4,465,733 ​ 4,069,792 Commitments and contingencies ​ ​ Equity ​ ​ Common stock, par value $ 2 per share; authorized - 200,000 shares; issued and outstanding - 77,299 shares and 77,199 shares ​ 154,598 ​ 154,398 Paid-in capital ​ 468,469 ​ 454,151 (Accumulated deficit) retained earnings ​ ( 1,022,161 ) ​ 27,159 Accumulated other comprehensive loss ​ ( 30,413 ) ​ ( 49,344 ) Total (deficit) equity ​ ( 429,507 ) ​ 586,364 Total liabilities and equity ​ $ 4,036,226 ​ $ 4,656,156 ​ See accompanying notes to unaudited condensed consolidated financial statements. ​ ​ ​ 5 Table of Contents Owens & Minor, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, (in thousands) ​ 2025 2024 Operating activities: ​ ​ ​ ​ ​ ​ Net loss ​ $ ( 1,044,316 ) ​ $ ( 66,570 ) Adjustments to reconcile net loss to cash (used for) provided by operating activities: ​ ​ Depreciation and amortization ​ 184,651 ​ 199,588 Goodwill impairment charge ​ ​ 106,389 ​ ​ — Loss on classification to held for sale ​ ​ 771,640 ​ ​ — Share-based compensation expense ​ 17,330 ​ 19,281 Loss on extinguishment of debt ​ — ​ 311 Deferred income tax benefit ​ ( 53,762 ) ​ ( 15,119 ) Changes in operating lease right-of-use assets and lease liabilities ​ 249 ​ 7,156 Gain from sale and dispositions of patient service equipment and other fixed assets ​ ( 16,385 ) ​ ( 37,682 ) Changes in operating assets and liabilities: ​ ​ ​ Accounts receivable, net ​ 111,500 ​ ( 60,887 ) Inventories ​ ( 146,351 ) ​ ( 132,433 ) Accounts payable ​ ( 10,680 ) ​ 164,261 Net change in other assets and liabilities ​ ( 98,763 ) ​ 4,719 Other, net ​ 8,522 ​ 7,869 Cash (used for) provided by operating activities ​ ( 169,976 ) ​ 90,494 Investing activities: ​ ​ Additions to patient service equipment and other fixed assets ​ ( 177,823 ) ​ ( 148,031 ) Proceeds from sale of patient service equipment and other fixed assets ​ 53,369 ​ 84,759 Additions to computer software ​ ( 14,217 ) ​ ( 8,695 ) Other, net ​ ( 1,910 ) ​ 7,738 Cash used for investing activities ​ ( 140,581 ) ​ ( 64,229 ) Financing activities: ​ ​ Borrowings under amended Receivables Financing Agreement ​ — ​ 1,286,400 Repayments under amended Receivables Financing Agreement ​ — ​ ( 1,286,400 ) Borrowings under Revolving Credit Facility ​ ​ 2,442,484 ​ ​ — Repayments under Revolving Credit Facility ​ ​ ( 2,171,784 ) ​ ​ — Repayments of debt ​ — ​ ( 211,447 ) Repurchase of common stock ​ ​ ( 6,656 ) ​ ​ — Other, net ​ 41,530 ​ ( 13,060 ) Cash provided by (used for) financing activities ​ 305,574 ​ ( 224,507 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash ​ 1,767 ​ 408 Net decrease in cash, cash equivalents and restricted cash ​ ( 3,216 ) ​ ( 197,834 ) Cash, cash equivalents and restricted cash at beginning of period ​ 49,382 ​ 272,924 Cash, cash equivalents and restricted cash at end of period ​ $ 46,166 ​ $ 75,090 Supplemental disclosure of cash flow information: ​ ​ Income taxes paid, net ​ $ 8,784 ​ $ 7,610 Interest paid ​ $ 96,138 ​ $ 104,278 Noncash investing activity: ​ ​ ​ Unpaid purchases of patient service equipment and other fixed assets at end of period ​ $ 71,823 ​ $ 75,176 See accompanying notes to unaudited condensed consolidated financial statements. ​ ​ ​ 6 Table of Contents Owens & Minor, Inc. and Subsidiaries Condensed Consolidated Statements of Changes in Equity (Deficit) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common ​ ​ ​ ​ Accumulated ​ ​ ​ ​ Common ​ Stock ​ ​ ​ ​ Retained ​ Other ​ ​ ​ ​ ​ Shares ​ ( $ 2 par ​ Paid-In ​ Earnings ​ Comprehensive ​ Total (in thousands, except per share data) ​ Outstanding ​ value) ​ Capital ​ (Accumulated Deficit) ​ Loss ​ Equity (Deficit) Balance, December 31, 2024 77,199 ​ $ 154,398 ​ $ 454,151 ​ $ 27,159 ​ $ ( 49,344 ) ​ $ 586,364 Net loss — ​ — ​ — ​ ( 24,982 ) ​ — ​ ( 24,982 ) Other comprehensive income — ​ — ​ — ​ — ​ 5,133 ​ 5,133 Share-based compensation expense, exercises and other 194 ​ 387 ​ 5,580 ​ — ​ — ​ 5,967 Shares repurchased and retired ​ ( 173 ) ​ ​ ( 346 ) ​ ​ — ​ ​ ( 1,157 ) ​ ​ — ​ ​ ( 1,503 ) Balance, March 31, 2025 77,220 ​ 154,439 ​ 459,731 ​ 1,020 ​ ( 44,211 ) ​ 570,979 Net loss — ​ — ​ — ​ ( 869,058 ) ​ — ​ ( 869,058 ) Other comprehensive income — ​ — ​ — ​ — ​ 13,992 ​ 13,992 Share-based compensation expense, exercises and other 630 ​ 1,260 ​ 6,970 ​ — ​ — ​ 8,230 Shares repurchased and retired ​ ( 653 ) ​ ​ ( 1,306 ) ​ ​ — ​ ​ ( 3,847 ) ​ ​ — ​ ​ ( 5,153 ) Balance, June 30, 2025 77,197 ​ ​ 154,393 ​ ​ 466,701 ​ ​ ( 871,885 ) ​ ​ ( 30,219 ) ​ ​ ( 281,010 ) Net loss — ​ — ​ — ​ ( 150,276 ) ​ — ​ ( 150,276 ) Other comprehensive loss — ​ — ​ — ​ — ​ ( 194 ) ​ ( 194 ) Share-based compensation expense, exercises and other 102 ​ 205 ​ 1,768 ​ — ​ — ​ 1,973 Balance, September 30, 2025 77,299 ​ $ 154,598 ​ $ 468,469 ​ $ ( 1,022,161 ) ​ $ ( 30,413 ) ​ $ ( 429,507 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2023 76,546 ​ $ 153,092 ​ $ 434,185 ​ $ 389,845 ​ $ ( 31,818 ) ​ $ 945,304 Net loss — ​ — ​ — ​ ( 21,886 ) ​ — ​ ( 21,886 ) Other comprehensive loss — ​ — ​ — ​ — ​ ( 11,619 ) ​ ( 11,619 ) Share-based compensation expense, exercises and other ( 97 ) ​ ( 195 ) ​ 4,402 ​ — ​ — ​ 4,207 Balance, March 31, 2024 76,449 ​ 152,897 ​ 438,587 ​ 367,959 ​ ( 43,437 ) ​ 916,006 Net income — ​ — ​ — ​ ( 31,913 ) ​ — ​ ( 31,913 ) Other comprehensive loss — ​ — ​ — ​ — ​ ( 5,307 ) ​ ( 5,307 ) Share-based compensation expense, exercises and other 599 ​ 1,199 ​ 1,855 ​ — ​ — ​ 3,054 Balance, June 30, 2024 77,048 ​ ​ 154,096 ​ ​ 440,442 ​ ​ 336,046 ​ ​ ( 48,744 ) ​ ​ 881,840 Net loss — ​ — ​ — ​ ( 12,770 ) ​ — ​ ( 12,770 ) Other comprehensive income — ​ — ​ — ​ — ​ 21,326 ​ 21,326 Share-based compensation expense, exercises and other 14 ​ 27 ​ 5,307 ​ — ​ — ​ 5,334 Balance, September 30, 2024 77,062 ​ $ 154,123 ​ $ 445,749 ​ $ 323,276 ​ $ ( 27,418 ) ​ $ 895,730 ​ See accompanying notes to unaudited condensed consolidated financial statements. ​ ​ ​ 7 Table of Contents Owens & Minor, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (unaudited) (in thousands, except per share data, unless otherwise indicated) Note 1—Summary of Significant Accounting Policies Basis of Presentation and Consolidation. The unaudited condensed consolidated financial statements include the accounts of Owens & Minor, Inc. and the subsidiaries it controls (the Company, we, us, or our) and contain all adjustments necessary to conform with United States (U.S.) generally accepted accounting principles (GAAP). All significant intercompany accounts and transactions have been eliminated. The results of operations for interim periods are not necessarily indicative of the results expected for the full year. In connection with the anticipated sale of our Products & Healthcare Services (P&HS) segment as detailed in the discontinued operations and assets held-for-sale section below, we determined that our continuing operations’ business activities comprise a single operating and reporting segment. This determination is in accordance with ASC No. 280, Segment Reporting . Revision of Prior Period Consolidated Financial Statements . We revised our prior period financial statements to correct for a prior period accounting error that impacted our beginning retained earnings balance and total equity. The error, which was discovered during the first quarter of 2025, related to the over accrual of accounts payable that had accumulated over multiple years. We assessed the materiality of the error, both quantitatively and qualitatively, in accordance with the SEC’s Staff Accounting Bulletin No. 99, and concluded that the error was not material to any of our previously reported financial statements based upon the nature of the error, including the immaterial annual quantitative impacts to prior period condensed consolidated statements of operations. Accordingly, the error was corrected through beginning retained earnings as of the earliest balance sheet date presented. The cumulative impact of the error correction on our retained earnings and total equity as of the earliest balance sheet date presented, was an increase of $ 21 million. The error also resulted in a cumulative $ 23 million reduction to accounts payable, a $ 1.6 million increase to other current liabilities, and a $ 0.5 million increase to other liabilities as of December 31, 2023. Reclassifications. Certain prior period amounts have been reclassified to conform to current year presentation. Discontinued Operations and Assets Held-for-Sale. On February 28, 2025, we announced that we were actively engaged in discussions regarding the anticipated sale of our P&HS segment. On October 7, 2025, we, entered into an Equity Purchase Agreement, (the Purchase Agreement) by and among the Company, Dominion Healthcare Acquisition Corporation, a Delaware corporation (the Purchaser), and Dominion Healthcare Holdings, L.P., a Delaware limited partnership (Purchaser Parent) to sell the P&HS segment, for an aggregate of $ 375 million in cash, subject to certain adjustments for cash, indebtedness, net working capital and transaction expenses. We will retain a 5 % equity interest in the P&HS segment. The Purchaser will be required to pay us a termination fee under certain specified circumstances of $ 9.4 million or $ 19 million depending on the stage of regulatory approval and other criteria. The sale is subject to customary closing conditions, including the Hart Scott Rodino Act and other regulatory approvals, and is expected to close in the first quarter of 2026. The P&HS segment was initially classified as discontinued operations and assets held for sale as of June 30, 2025. In accordance with GAAP, the financial position and results of operations of the P&HS segment are presented as discontinued operations and, as such, have been excluded from continuing operations for all periods presented. With the exception of Note 3, the Notes to the Condensed Consolidated Financial Statements reflect the continuing operations of Owens & Minor, Inc. unless otherwise noted. See Note 3 for additional information regarding discontinued operations and assets held for sale. ​ Use of Estimates. The preparation of consolidated financial statements in conformity with GAAP requires us to make assumptions and estimates that affect reported amounts and related disclosures. Significant estimates are used for, 8 Table of Contents but are not limited to, variable consideration, depreciation and amortization, goodwill valuation, valuation of intangible assets and other long-lived assets, estimated fair values of the net assets acquired in business combinations, self-insurance liabilities, tax liabilities, defined benefit obligations, share-based compensation and other contingencies. Actual results may differ from these estimates. ​ Cash and Cash Equivalents. Cash and cash equivalents include cash and marketable securities with an original maturity or maturity at acquisition of three months or less. Cash and cash equivalents are stated at cost. Nearly all of our cash and cash equivalents are held in cash depository accounts in major banks in the U.S. Cash that has restrictions on its availability to us would be classified as restricted cash. There was no restricted cash as of September 30, 2025 and December 31, 2024. The following table provides a reconciliation of cash and cash equivalents reported within the accompanying condensed consolidated balance sheets that sum to the total of those same amounts presented in the accompanying condensed consolidated statements of cash flows. ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 December 31, 2024 Cash and cash equivalents ​ $ 32,837 ​ $ 27,572 Cash and cash equivalents of held for sale - discontinued operations ​ 13,329 ​ 21,810 Total cash and cash equivalents ​ $ 46,166 ​ $ 49,382 ​ Book overdrafts represent the amount of outstanding checks issued in excess of related bank balances and are included in accounts payable in our condensed consolidated balance sheets, as they are similar to trade payables and are not subject to finance charges or interest. Changes in book overdrafts are classified as operating activities in our condensed consolidated statements of cash flows. Accounts Receivable, Net. Due to the nature of our industry and the reimbursement environment in which we operate, certain estimates are required to record net revenues and accounts receivable at their net realizable values, including estimating variable consideration. Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. Specifically, the complexity of many third-party billing arrangements, contractual terms, and the uncertainty of reimbursement amounts for certain services may result in adjustments to amounts originally recorded. Such adjustments are typically identified and recorded at the point of cash application, claim amount or account review. Included in accounts receivable were earned but unbilled receivables of $ 33 million as of September 30, 2025 and $ 30 million as of December 31, 2024. Delays, ranging from a single day to several weeks, between the date of service and billing can occur due to delays in obtaining certain required payor-specific documentation from internal and external sources. Earned but unbilled receivables are aged from date of service and are considered in our analysis of historical performance and collectability. Inventories. Inventories, which primarily include medical supplies to be sold to customers , are determined using the first-in, first-out or weighted-average cost method at the lower of cost or net realizable value. We periodically evaluate whether inventory valuation allowance adjustments are required. In our evaluation, we review for obsolete inventory and slow-moving inventory which includes consideration of recent sales trends. We write down inventories which are considered excess and obsolete as a result of these assessments within cost of net revenue. Shifts in market trends and conditions, as well as changes in customer or payor preferences and behavior could affect the value of our inventories. Patient Service Equipment and Other Fixed Assets, Net . Patient service equipment consists of medical equipment rented to customers, primarily on a month-to-month basis, as well as equipment that may be sold. Patient service equipment depreciation expense is classified in our condensed consolidated statements of operations within cost of net revenue for equipment rented to customers. Other fixed assets, net are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense for financial reporting purposes is generally computed on a straight-line method over the estimated useful lives of the assets. In general, the estimated useful lives for computing depreciation are one to 10 years for patient service equipment, and up to 15 years for other fixed assets. Straight-line and 9 Table of Contents accelerated methods of depreciation are used for income tax purposes. Normal maintenance and repairs are expensed as incurred, and renovations and betterments are capitalized. We suspend depreciation and amortization on assets that are held for sale. ​ Leases. We account for all of our lease arrangements, including for real estate, trucks, and patient service equipment, as operating leases. We enter into non-cancelable agreements to lease most of our office, branch and warehouse facilities with remaining terms generally ranging from one to six years . Certain building leases include renewal options which the exercise of is at our sole discretion. We generally do not include options to renew (or terminate) in our lease term, as part of our right-of-use assets and lease liabilities, as we generally do not have leases for which we believe we are reasonably certain to exercise those options. Leases with a term of 12 months or less are not recorded on the condensed consolidated balance sheets; we recognize lease expense for these leases on a straight-line basis over the lease term. The depreciable lives of right-of-use assets are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. We elected the practical expedient to not separate lease and non-lease components for our leases. Operating lease assets and liabilities are recognized at commencement date based on the present value of unpaid lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments. We use the implicit rate when readily determinable. The right-of-use assets also include adjustments for any lease payments made and lease incentives received. Goodwill. We account for acquired businesses using the acquisition method of accounting, which requires that the assets acquired and liabilities assumed be recorded at the date of acquisition at their respective fair values. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. We evaluate goodwill for impairment annually, as of October 1, and if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Qualitative factors are first assessed to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined that it is more likely than not the fair value does not exceed the carrying amount, then a quantitative test is performed. Intangible Assets, Net. Intangible assets acquired through purchases or business combinations are stated at fair value at the acquisition date and net of accumulated amortization in the condensed consolidated balance sheets. Intangible assets, consisting primarily of customer relationships, customer contracts and tradenames are amortized over their estimated useful lives. In determining the useful life of an intangible asset, we consider our historical experience in renewing or extending similar arrangements. Intangible assets are generally amortized over one to 15 years based on their pattern of economic benefit or on a straight-line basis. We suspend amortization on assets that are held for sale. Computer Software. We develop and purchase software for internal use. Software development costs incurred during the application development stage are capitalized. Once the software has been installed and tested, and is ready for use, additional costs incurred in connection with the software are expensed as incurred. Capitalized computer software costs are amortized over the estimated useful life of the software, usually between three and 10 years . Capitalized computer software costs are included in other assets, net, in the condensed consolidated balance sheets. Unamortized software at September 30, 2025 and December 31, 2024 was $ 15 million and $ 26 million. Long-Lived Asset Impairment Evaluation. Long-lived assets, which include patient service equipment, finite-lived intangible assets, right-of-use assets, unamortized software costs, and other fixed assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of long-lived assets may not be recoverable. We assess long-lived assets for the potential impairments by comparing the carrying value of an asset, or group of related assets, to their estimated undiscounted future cash flows. 10 Table of Contents Self-Insurance Liabilities. We are self-insured for certain teammate healthcare, workers’ compensation and automobile liability costs; however, we maintain insurance for individual losses exceeding certain limits. Liabilities are estimated for healthcare costs using current and historical claims data. Liabilities for workers’ compensation and automobile liability claims are estimated using historical claims data and loss development factors. If the underlying facts and circumstances of existing claims change or the historical trends are not indicative of future trends, then we may be required to adjust the liability and related expense accordingly. Self-insurance liabilities are included in other current liabilities and other liabilities in the condensed consolidated balance sheets and were $ 27 million at September 30, 2025 and December 31, 2024. Revenue Recognition. Revenues are primarily recognized under fee-for-service arrangements for sales of supplies, equipment and other items we sell to customers and equipment we rent to customers. Revenue for sales of products, including equipment and supplies, is recognized when control of the promised goods is transferred to customers and is presented net of applicable sales taxes. Revenue generated from equipment that we rent to customers is primarily recognized as earned on a straight-line basis over the non-cancellable rental period, typically one month, and commences on delivery of the equipment to the customers. Fee-for-service arrangement revenues are recorded only to the extent it is probable that a significant reversal will not occur in the future as amounts may include implicit price concessions under reimbursement arrangements with third-party payors, including private insurers under both commercial and Medicare Advantage plans, prepaid health plans, Medicare, Medicaid and customers. Revenue is recognized under a portfolio approach, as we expect that this approach would not differ materially from considering each contract or performance obligation separately. We use the expected value method in determining the variable consideration as part of determining the sales transaction price using historical reimbursement experience, historical sales returns, and other operating trends. Payment terms and conditions vary by contract. Sales of equipment and supplies inclusive of amounts recognized under capitation arrangements for the three and nine months ended September 30, 2025 were $ 528 million and $ 1.5 billion and $ 517 million and $ 1.5 billion for the three and nine months ended September 30, 2024. Rental revenues inclusive of amounts recognized under capitation arrangements for the three and nine months ended September 30, 2025 were $ 169 million and $ 510 million and $ 170 million and $ 508 million for the three and nine months ended September 30, 2024. Certain revenues are recognized under arrangements with third-party payors for which we stand ready to provide all necessary healthcare services to members for the period of the stand ready obligation which generally extends beyond one year. These agreements are generally referred to as capitation arrangements. Revenue is recognized over the month that the members are entitled to healthcare services using the monthly contractual rate for each covered member. The actual number of covered members may vary each month. Capitation payments are typically received in the month members are entitled to healthcare services. Revenue for these agreements amounted to $ 61 million and $ 182 million for the three and nine months ended September 30, 2025 and $ 60 million and $ 178 million for the three and nine months ended September 30, 2024. The following table summarizes net revenue by product category: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 Diabetes ​ $ 201,372 ​ $ 202,761 ​ $ 579,788 ​ $ 577,112 Sleep therapy ​ ​ 185,799 ​ ​ 177,153 ​ ​ 549,280 ​ ​ 519,427 Home respiratory therapy ​ ​ 107,256 ​ ​ 108,968 ​ ​ 325,388 ​ ​ 327,463 Ostomy ​ ​ 53,274 ​ ​ 50,555 ​ ​ 154,666 ​ ​ 142,181 Wound care ​ ​ 48,001 ​ ​ 51,475 ​ ​ 141,469 ​ ​ 141,868 Urology ​ ​ 28,976 ​ ​ 27,748 ​ ​ 85,815 ​ ​ 78,382 Other ​ 72,586 ​ ​ 68,186 ​ 216,659 ​ ​ 198,656 Net revenue ​ $ 697,264 ​ $ 686,846 ​ $ 2,053,065 ​ $ 1,985,089 ​ 11 Table of Contents The following table summarizes net revenue by payor type: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 Commercial payors (1) ​ $ 560,826 ​ $ 559,319 ​ $ 1,655,182 ​ $ 1,612,359 Medicare ​ ​ 126,785 ​ ​ 117,388 ​ ​ 368,839 ​ ​ 342,429 Medicaid ​ ​ 9,653 ​ ​ 10,139 ​ ​ 29,044 ​ ​ 30,301 Net revenue ​ $ 697,264 ​ $ 686,846 ​ $ 2,053,065 ​ $ 1,985,089 (1) Commercial payors includes revenue from Medicare Advantage plans. Cost of Net Revenue . Cost of net revenue includes the cost of products sold, patient service equipment depreciation expense, and other costs which are primarily personnel costs related to the set-up and utilization of equipment. Cost of product sold includes non-cash expenses primarily for equipment converted from rental to sales in the amount of $ 11 million and $ 35 million for the three and nine months ended September 30, 2025 and $ 7.9 million and $ 23 million for the three and nine months ended September 30, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ 2025 2024 ​ 2025 2024 Cost of product sold ​ $ 337,649 ​ $ 317,445 ​ $ 974,554 ​ $ 921,312 Patient service equipment depreciation ​ ​ 31,694 ​ ​ 31,303 ​ ​ 95,260 ​ ​ 95,342 Other costs ​ ​ 5,724 ​ ​ 6,327 ​ ​ 17,210 ​ ​ 21,046 Cost of net revenue ​ $ 375,067 ​ $ 355,075 ​ $ 1,087,024 ​ $ 1,037,700 ​ Selling, General and Administrative (SG&A) Expenses. SG&A expenses include compensation costs, expenses for selling and administrative functions, shipping and handling costs and certain depreciation and amortization expense. Shipping and Handling. Shipping and handling costs are included in SG&A expenses in the condensed consolidated statements of operations and include costs to store, move, and prepare products for shipment, as well as costs to deliver products to customers. Shipping and handling costs totaled $ 74 million and $ 213 million for the three and nine months ended September 30, 2025 and $ 68 million and $ 205 million for the three and nine months ended September 30, 2024. Share-Based Compensation. We account for share-based compensation to teammates at fair value and recognize the related expense primarily in SG&A expenses over the service period for awards expected to vest. The fair value of non-vested performance shares is dependent upon our assessment of the probability of achievement of financial targets for the performance period. Income Taxes. We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are provided if it is more likely than not that a deferred tax asset will not be realized. When we have claimed tax benefits that may be challenged by a tax authority, an estimate of the effect of these uncertain tax positions is recorded. It is our policy to provide for uncertain tax positions and related interest and penalties based upon an assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. To the extent that the tax outcome of these uncertain tax positions changes, based on our assessment, such changes in estimate may impact the income tax provision in the period in which such determination is made. 12 Table of Contents Fair Value Measurements. Fair value is determined based on assumptions that a market participant would use in pricing an asset or liability. The assumptions used are in accordance with a three-tier hierarchy, defined by GAAP, that draws a distinction between market participant assumptions based on (i) observable inputs such as quoted prices in active markets (Level 1), (ii) inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2) and (iii) unobservable inputs that require the use of present value and other valuation techniques in the determination of fair value (Level 3). The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and accrued payroll and related liabilities reported in the condensed consolidated balance sheets approximate fair value due to the short-term nature of these instruments. The estimated fair value of our reporting unit determined during a quantitative review of goodwill utilizes unobservable inputs (Level 3).The fair value of debt is estimated based on quoted market prices or dealer quotes for the identical liability when traded as an asset in an active market (Level 1) or, if quoted market prices or dealer quotes are not available, on the borrowing rates currently available for loans with similar terms, credit ratings, and average remaining maturities (Level 2). See Note 8 for the fair value of debt. The fair value of our derivative contracts is determined based on the present value of expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Observable Level 2 inputs are used to determine the present value of expected future cash flows. See Note 10 for the fair value of derivatives. Our acquisitions may include contingent consideration as part of the purchase price. The fair value of contingent consideration is estimated as of the acquisition date and at the end of each subsequent reporting period based on the present value of the contingent payments to be made using a weighted probability of possible payments (Level 3). Subsequent changes in fair value are recorded as adjustments to acquisition-related charges and intangible amortization within the consolidated statements of operations. Acquisition-Related Charges and Intangible Amortization. Acquisition-related charges consist primarily of one-time costs related to the terminated acquisition of Rotech Healthcare Holdings Inc. (Rotech), which consisted primarily of legal and professional fees. For the nine months ended September 30, 2025, we incurred $ 22 million of acquisition-related costs. For the three and nine months ended September 30, 2024, we incurred $ 6.5 million and $ 10 million of acquisition-related costs related to the expected acquisition of Rotech Healthcare Holdings Inc. (Rotech), which consisted primarily of legal and professional fees. Acquisition-related charges and intangible amortization also include amortization of intangible assets established during acquisition method of accounting for business combinations. These amounts are highly dependent on the size and frequency of acquisitions. Transaction Breakage Fee. As previously disclosed, on July 22, 2024, we entered into an Agreement and Plan of Merger (the Merger Agreement) pursuant to which we agreed to acquire Rotech subject to the terms and conditions within the Merger Agreement. On June 3, 2025, the Company, Rotech and Hitchcock Merger Sub Inc. (Merger Sub) mutually agreed to terminate the Merger Agreement and entered into a mutual termination agreement (the Termination Agreement). In accordance with the terms of the Termination Agreement, we incurred and made a cash payment to Rotech of $ 80 million during the nine months ended September 30, 2025. Exit and Realignment Charges, Net. Exit and realignment charges, net consist of costs associated with optimizing our operations including significant changes to certain processes to increase net revenue and lower costs along with costs related to IT strategic initiatives and other strategic actions. These costs include, but are not limited to, professional fees, severance and other costs to streamline functions and processes. Costs associated with exit and realignment activities are recorded at their fair value when incurred. Liabilities are established at the cease-use date for remaining contractual obligations discounted using a credit-adjusted risk-free rate of interest. We evaluate these assumptions quarterly and adjust the liabilities accordingly. Severance benefits are generally recorded when payment is considered probable and reasonably estimable. These costs are not normal, cash operating expenses necessary for the Company to operate its business on an ongoing basis. 13 Table of Contents Note 2—Significant Concentration Risks During the nine months ended September 30, 2025, our two largest commercial payors represented approximately 23 % and 14 % of our net revenue, derived from multiple separately managed contracts. Revenue reimbursed under arrangements with Medicare and state Medicaid programs was approximately 19 % of our net revenue for the nine months ended September 30, 2025. The largest commercial payor recently notified us that it intends to terminate certain of our contracts with them. The terminated agreements reflected $ 242 million or 12 % of our net revenue, including $ 173 million of capitation revenue, which represents nearly all of our capitation revenue, for the nine months ended September 30, 2025. During the nine months ended September 30, 2025, three suppliers each contributed between 10 % and 25 % of our patient service equipment and supplies purchases collectively accounting for approximately 48 % of our total purchases. Note 3—Discontinued Operations and Assets Held-for-Sale On February 28, 2025, we announced that we were actively engaged in discussions regarding the anticipated sale of our P&HS segment. On October 7, 2025, we entered into the Purchase Agreement by and among the Company, the Purchaser, and Purchaser Parent to sell the P&HS segment, for an aggregate of $ 375 million in cash, subject to certain adjustments for cash, indebtedness, net working capital and transaction expenses. We will retain a 5 % equity interest in the P&HS segment. The Purchaser will be required to pay us a termination fee under certain specified circumstances of $ 9.4 million or $ 19 million depending on the stage of regulatory approval and other criteria. The sale is subject to customary closing conditions, including the Hart Scott Rodino Act and other regulatory approvals, and is expected to close in the first quarter of 2026. In accordance with GAAP, the financial position and results of operations of the P&HS segment are presented as discontinued operations and assets held for sale and, as such, have been excluded from continuing operations for all periods presented. The P&HS segment was initially classified as discontinued operations and assets held for sale as of June 30, 2025. Accordingly, the results of operations from our P&HS segment are reported in the accompanying condensed consolidated statements of operations as “Loss from discontinued operations, net of tax” for the three and nine months ended September 30, 2025 and 2024 and the related assets and liabilities are classified as held-for-sale as of September 30, 2025 and December 31, 2024 in the accompanying condensed consolidated balance sheets. We have allocated interest expense, net to discontinued operations as a ratio of net assets and total debt in accordance with ASC 205, Presentation of Financial Statements . The remaining P&HS goodwill balance of $ 106 million was fully impaired during the second quarter of 2025. Our sale process provided a basis for the fair value of the P&HS segment, which includes the Global Products reporting unit. We recognized a loss of $ 123 million and $ 772 million during the three and nine months ended September 30, 2025 in connection with the classification of the related assets and liabilities as held-for-sale, based on the estimated fair value, less costs to sell. The fair value of the P&HS segment was determined from information received during our sale process, including the Purchase Agreement. Subsequent changes in fair value will be recorded within discontinued operations and assets held for sale. ​ 14 Table of Contents ​ The following table summarizes the financial results of our discontinued operations for the three and nine months ended September 30, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ 2025 2024 ​ 2025 ​ 2024 Net revenue ​ $ 2,007,078 ​ $ 2,034,279 ​ $ 5,945,052 ​ $ 6,019,721 Cost of goods sold ​ 1,818,935 ​ ​ 1,806,343 ​ ​ 5,349,578 ​ ​ 5,327,723 Gross profit ​ ​ 188,143 ​ ​ 227,936 ​ ​ 595,474 ​ ​ 691,998 Distribution, selling, and administrative expenses ​ ​ 186,885 ​ ​ 206,523 ​ ​ 596,240 ​ ​ 616,005 Acquisition-related charges and intangible amortization ​ ​ — ​ ​ 6,243 ​ ​ 12,549 ​ ​ 18,491 Exit and realignment charges, net ​ ​ 25,122 ​ ​ 15,365 ​ ​ 57,713 ​ ​ 48,467 Goodwill impairment charge ​ ​ — ​ ​ — ​ ​ 106,389 ​ ​ — Loss on classification to held for sale ​ ​ 122,500 ​ ​ — ​ ​ 771,640 ​ ​ — Other operating expense, net ​ 2,217 ​ ​ 6,680 ​ ​ 6,923 ​ ​ 9,806 Operating loss ​ ​ ( 148,581 ) ​ ​ ( 6,875 ) ​ ​ ( 955,980 ) ​ ​ ( 771 ) Interest expense, net ​ 7,636 ​ ​ 7,601 ​ ​ 27,828 ​ ​ 28,158 Other expense ​ 269 ​ ​ 270 ​ ​ 799 ​ ​ 928 Loss from discontinued operations before income taxes ​ ​ ( 156,486 ) ​ ​ ( 14,746 ) ​ ​ ( 984,607 ) ​ ​ ( 29,857 ) Income tax (benefit) provision for discontinued operations ​ ( 11,817 ) ​ ​ ( 715 ) ​ ​ ( 33,530 ) ​ ​ 17,838 Loss from discontinued operations, net of taxes ​ $ ( 144,669 ) ​ $ ( 14,031 ) ​ $ ( 951,077 ) ​ $ ( 47,695 ) ​ ​ 15 Table of Contents The assets and liabilities of the P&HS segment reflected on the condensed consolidated balance sheets at September 30, 2025, and December 31, 2024, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2025 2024 Assets held for sale - discontinued operations ​ ​ Cash and cash equivalents ​ $ 13,329 ​ $ 21,810 Accounts receivable, net ​ 383,581 ​ 471,971 Merchandise inventories ​ 1,220,698 ​ 1,064,298 Intercompany receivable ​ ​ 160,000 ​ ​ — Other current assets, net ​ 111,808 ​ 67,275 Property and equipment, net ​ 274,795 ​ ​ — Operating lease assets ​ 283,741 ​ ​ — Intangible assets, net ​ 76,775 ​ ​ — Deferred tax assets ​ ​ 11,042 ​ ​ — Valuation allowance on disposal group classified as held for sale ​ ​ ( 771,640 ) ​ ​ — Current assets held for sale - discontinued operations ​ 1,764,129 ​ 1,625,354 Property and equipment, net ​ — ​ 260,064 Operating lease assets ​ — ​ 228,699 Goodwill ​ — ​ 103,140 Intangible assets, net ​ — ​ 88,670 Deferred tax assets ​ ​ — ​ ​ 6,726 Other noncurrent assets, net ​ — ​ 43,894 Total assets held for sale - discontinued operations ​ $ 1,764,129 ​ $ 2,356,547 Liabilities held for sale - discontinued operations ​ ​ Accounts payable ​ $ 868,107 ​ $ 868,764 Accrued payroll and related liabilities ​ 36,109 ​ 77,046 Current portion of long-term debt ​ ​ 7,694 ​ ​ 2,683 Other current liabilities ​ 118,504 ​ 82,400 Operating lease liabilities, current portion ​ ​ 297,505 ​ ​ 50,003 Deferred tax liabilities ​ ​ 17,886 ​ ​ — Current liabilities held for sale - discontinued operations ​ 1,345,805 ​ 1,080,896 Long-term debt, excluding current portion ​ — ​ 9,654 Operating lease liabilities, excluding current portion ​ — ​ 196,746 Other liabilities ​ — ​ 28,474 Deferred tax liabilities ​ — ​ 3,020 Total liabilities held for sale - discontinued operations ​ $ 1,345,805 ​ $ 1,318,790 ​ Assets and liabilities held for sale as of September 30, 2025 are classified as current since we expect the divestiture to be completed within one year of the balance sheet date. As of December 31, 2024, the assets and liabilities held for sale are classified separately as current or noncurrent because the noncurrent assets and liabilities did not meet the criteria for current classification as of December 31, 2024. Merchandise inventories include $ 110 million subject to lien with an individual supplier as of September 30, 2025. Receivables Purchase Agreement On March 14, 2023, we entered into the Receivables Purchase Agreement (RPA), pursuant to which accounts receivable with an aggregate outstanding amount not to exceed $ 200 million are sold, on a limited-recourse basis, to the Purchaser (as defined therein) in exchange for cash. We account for these transactions as sales with the sold receivables removed from our condensed consolidated balance sheets. Under the RPA, we provide certain servicing and collection actions on behalf of the Purchaser; however, we do not maintain any beneficial interest in the accounts receivable sold. The RPA is separate and distinct from the Receivables Sale Program and the amendment as described below. As a result of the amendment described below, the RPA was not utilized in the nine months ended September 30, 2025. 16 Table of Contents Proceeds from the sale of accounts receivable are recorded as an increase to cash and cash equivalents and a reduction to current assets of discontinued operations, in the condensed consolidated balance sheets. Cash received from the sale of accounts receivable, net of payments made to the Purchaser, is reflected as cash provided by operating activities in the condensed consolidated statements of cash flows. The accounts receivable sold under the RPA were entirely accounts receivable of the P&HS segment. Total accounts receivable sold under the RPA were $ 542 million and $ 1.6 billion for the three and nine months ended September 30, 2024. During the three and nine months ended September 30, 2024, we received net cash proceeds of $ 538 million and $ 1.6 billion from the sale of accounts receivable under the RPA and collected $ 550 million and $ 1.6 billion of the sold accounts receivable. The losses on sale of accounts receivable, inclusive of professional fees incurred to establish the agreement, recorded in other operating expense, net in the financial results from discontinued operations were $ 3.6 million and $ 11 million for the three and nine months ended September 30, 2024. ​ Receivables Sale Program On October 18, 2024, O&M Funding LLC and Owens & Minor Medical, LLC., each a wholly-owned subsidiary of the Company, entered into a Receivables Purchase Agreement (the Receivables Sale Program) with persons from time to time, as Purchasers, PNC Bank, National Association, as Administrative Agent, and PNC Capital Markets LLC, as Structuring Agent, pursuant to which accounts receivable with an aggregate outstanding amount not to exceed $ 450 million are sold, on a limited-recourse basis, to the Purchasers in exchange for cash. The Receivables Sale Program amends and restates in its entirety, the Receivables Financing Agreement. Transactions under this agreement are accounted for as sales in accordance with ASC 860, Transfers and Servicing, with the sold receivables removed from our condensed consolidated balance sheets. Under the Receivables Sale Program, we provide certain servicing and collection actions on behalf of the Purchasers; however, we do not maintain any beneficial interest in the accounts receivable sold. Upon the completion of the sale of the P&HS segment the related accounts receivable will no longer be eligible for sale under the Receivables Sale Program as the program will not convey. Proceeds from the sales of accounts receivable are recorded as an increase to cash and cash equivalents and a reduction to accounts receivable, net of allowances in the consolidated balance sheets. Cash received from the sales of accounts receivable is reflected in the change in accounts receivable within cash provided by operating activities in the consolidated statements of cash flows. The accounts receivable sold under the Receivables Sale Program were primarily accounts receivable of the P&HS segment. Total accounts receivable sold and net cash proceeds under the Receivables Sale program were $ 466 million and $ 1.3 billion during the three and nine months ended September 30, 2025, approximately $ 373 million and $ 1.0 billion of which were accounts receivable of the P&HS segment. We collected $ 465 million and $ 1.2 billion of the sold accounts receivable for the three and nine months ended September 30, 2025, approximately $ 372 million and $ 935 million of which were collections on accounts receivable of the P&HS segment. The losses on sales of accounts receivable were $ 3.0 million and $ 8.2 million for the three and nine months ended September 30, 2025, $ 2.4 million and $ 6.5 million of which relate to losses recorded in other operating expense, net in the financial results from discontinued operations. As of September 30, 2025 and December 31, 2024, there was a total of $ 200 million and $ 70 million of uncollected accounts receivable sold and removed from our condensed consolidated balance sheets under the Receivables Sale Program, $ 160 million and $ 56 million of which relate to the assets of discontinued operations and assets held for sale. As of September 30, 2025 the $ 160 million of uncollected accounts receivable related to the assets of discontinued operations and assets held for sale is shown as an intercompany receivable within current assets of discontinued operations and assets held for sale with an equal amount reflected within other current liabilities in the condensed consolidated balance sheet. ​ 17 Table of Contents The following table provides significant non-cash operating, select operating and significant investing cash flow information for our discontinued operations and assets held for sale: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ 2025 2024 ​ 2025 2024 Operating Activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss from discontinued operations, net of tax ​ $ ( 144,669 ) ​ $ ( 14,031 ) ​ $ ( 951,077 ) ​ $ ( 47,695 ) Significant non-cash adjustments to reconcile net loss to cash (used for) provided by operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill impairment charge ​ ​ — ​ ​ — ​ ​ 106,389 ​ ​ — Loss on classification to held for sale ​ ​ 122,500 ​ ​ — ​ ​ 771,640 ​ ​ — Depreciation and amortization ​ ​ — ​ ​ 17,229 ​ ​ 34,664 ​ ​ 59,679 Share-based compensation ​ ​ 2,509 ​ ​ 2,159 ​ ​ 8,205 ​ ​ 7,327 Changes in select operating assets and liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts receivable, net ​ ​ ( 24,023 ) ​ ​ ( 4,168 ) ​ ​ 95,961 ​ ​ ( 43,211 ) Inventories ​ ​ 3,846 ​ ​ 2,307 ​ ​ ( 150,085 ) ​ ​ ( 120,627 ) Accounts payable ​ ​ ( 137,985 ) ​ ​ ( 38,154 ) ​ ​ 12,078 ​ ​ 77,430 Investing Activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures ​ $ ( 12,272 ) ​ $ ( 16,167 ) ​ $ ( 39,190 ) ​ $ ( 27,317 ) Proceeds from sale of corporate headquarters ​ ​ — ​ ​ — ​ ​ — ​ ​ 33,500 ​ ​ Note 4—Patient Service Equipment and Other Fixed Assets, Net Patient service equipment and other fixed assets, net, consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ December 31, 2024 Patient service equipment ​ $ 417,122 ​ $ 388,445 Building and leasehold improvements ​ ​ 15,881 ​ ​ 23,955 Other fixed assets ​ ​ 29,713 ​ ​ 20,628 Patient service equipment and other fixed assets, gross ​ 462,716 ​ ​ 433,028 Accumulated depreciation and amortization ​ ​ ( 202,987 ) ​ ​ ( 183,745 ) Patient service equipment and other fixed assets, net ​ $ 259,729 ​ $ 249,283 ​ ​ Note 5—Goodwill and Intangible Assets, Net At September 30, 2025 and December 31, 2024, we had goodwill of $ 1.2 billion, net of accumulated goodwill impairment of $ 307 million. ​ Intangible assets, net subject to amortization, which excludes indefinite-lived intangible assets, at September 30, 2025 and December 31, 2024 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ December 31, 2024 ​ ​ Customer ​ ​ Other Customer ​ ​ Other ​ ​ ​ Relationships ​ Tradenames ​ Intangibles ​ Relationships ​ Tradenames ​ Intangibles ​ Intangible assets, gross ​ $ 132,300 ​ $ 143,000 ​ $ 38,000 ​ $ 132,300 ​ $ 143,000 ​ $ 38,000 ​ Accumulated amortization ​ ( 52,604 ) ​ ( 67,420 ) ​ ( 27,582 ) ​ ( 24,326 ) ​ ( 56,437 ) ​ ( 22,481 ) ​ Intangible assets, net ​ $ 79,696 ​ $ 75,580 ​ $ 10,418 ​ $ 107,974 ​ $ 86,563 ​ $ 15,519 ​ Weighted average useful life ​ 5 years ​ 10 years ​ 6 years ​ 15 years ​ 10 years ​ 6 years ​ ​ Amortization expense for intangible assets was $ 29 million and $ 44 million for the three and nine months ended September 30, 2025 and $ 8.4 million and $ 33 million for the three and nine months ended September 30, 2024. The increase as compared to the prior year was driven by the remaining useful life for an intangible asset being modified 18 Table of Contents as of June 30, 2025 as a result of a notice of a contract termination with a commercial Payor. The updated future intangible amortization is reflected in the table below. As of September 30, 2025, based on the current carrying value of intangible assets subject to amortization and expected remaining useful life, estimated amortization expense were as follows: ​ ​ ​ ​ ​ Year ​ ​ 2025 (remainder) ​ $ 29,228 2026 ​ 68,122 2027 ​ 13,872 2028 ​ 11,953 2029 ​ 11,953 Thereafter ​ ​ 30,566 Total future amortization ​ $ 165,694 ​ ​ Note 6—Leases The components of lease expense for the three and nine months ended September 30, 2025 and 2024 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Classification 2025 2024 Operating lease cost ​ SG&A expenses ​ $ 14,355 ​ $ 14,152 Short-term lease cost ​ SG&A expenses, Cost of net revenue ​ 1,533 ​ 2,534 Variable lease cost ​ SG&A expenses, Cost of net revenue ​ 6,236 ​ 6,310 Total lease cost ​ ​ ​ $ 22,124 ​ $ 22,996 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ Classification 2025 2024 Operating lease cost ​ SG&A expenses ​ $ 39,818 ​ $ 41,665 Short-term lease cost ​ SG&A expenses, Cost of net revenue ​ 5,071 ​ 8,040 Variable lease cost ​ SG&A expenses, Cost of net revenue ​ 18,406 ​ 18,767 Total lease cost ​ ​ ​ $ 63,295 ​ $ 68,472 ​ Variable lease cost consists primarily of taxes, insurance, and common area or other maintenance costs for our leased facilities and patient service equipment which are paid as incurred. ​ Supplemental balance sheet information as of September 30, 2025 and December 31, 2024 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, ​ As of December 31, ​ Classification 2025 2024 Assets: ​ ​ ​ ​ Operating lease assets ​ Operating lease assets ​ $ 119,093 ​ $ 126,928 Liabilities: ​ ​ ​ Current operating leases ​ Other current liabilities ​ $ 46,031 ​ $ 41,217 Noncurrent operating leases ​ Operating lease liabilities, excluding current portion ​ 81,352 ​ 89,466 Total operating lease liabilities ​ ​ ​ $ 127,383 ​ $ 130,683 ​ ​ 19 Table of Contents Other information related to leases for the nine months ended September 30, 2025 and 2024 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ 2025 ​ 2024 Supplemental cash flow information ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 40,741 ​ ​ $ 41,604 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ $ 23,968 ​ ​ $ 24,508 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average remaining lease term (years) ​ ​ ​ ​ Operating leases ​ 3.2 ​ ​ 3.7 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average discount rate ​ ​ ​ ​ Operating leases ​ 6.7 % ​ 6.4 % ​ Maturities of operating lease liabilities as of September 30, 2025 were as follows: ​ ​ ​ ​ ​ ​ 2025 (remainder) ​ $ 13,444 2026 ​ 50,593 2027 ​ 36,517 2028 ​ 23,642 2029 ​ 11,813 Thereafter ​ 5,630 Total lease payments ​ 141,639 Less: Interest ​ ( 14,256 ) Present value of lease liabilities ​ $ 127,383 ​ ​ ​ Note 7—Exit and Realignment Charges, Net We incur exit and realignment and other charges associated with optimizing our operations which include IT strategic initiatives and other strategic actions. These charges include professional fees, severance and other costs to streamline functions and enhance processes. These costs are not normal, cash operating expenses necessary for the Company to operate its business on an ongoing basis. Exit and realignment charges, net were $ 0.7 million and $ 17 million for the three and nine months ended September 30, 2025 and $ 14 million and $ 37 million for the three and nine months ended September 30, 2024. These charges were primarily related to strategic operational improvements to increase net revenue and lower costs as well as a provision to accounts receivable related to our Fusion5 business which is in the process of being wound down. We do not expect to incur material future costs relating to certain exit and realignment actions, which remain underway. ​ ​ 20 Table of Contents The following table summarizes the activity related to exit and realignment cost accruals, which are generally classified as other current liabilities in our condensed consolidated balance sheets, through September 30, 2025 and 2024: ​ ​ ​ ​ ​ ​ Total Accrued exit and realignment costs, December 31, 2024 ​ $ 6,732 Provision for exit and realignment activities: ​ Professional fees ​ 6,176 IT strategic initiatives and other ​ 304 Cash payments ​ ( 7,516 ) Accrued exit and realignment costs, March 31, 2025 ​ 5,696 Provision for exit and realignment activities: ​ Professional fees ​ 1,916 IT strategic initiatives and other ​ 192 Cash payments ​ ( 6,119 ) Accrued exit and realignment costs, June 30, 2025 ​ ​ 1,685 Provision for exit and realignment activities: ​ ​ ​ Professional fees ​ ​ 111 IT strategic initiatives and other ​ ​ 437 Cash payments ​ ​ ( 863 ) Accrued exit and realignment costs, September 30, 2025 ​ $ 1,370 ​ ​ ​ ​ Accrued exit and realignment costs, December 31, 2023 ​ $ 3,109 Provision for exit and realignment activities: ​ Professional fees ​ ​ 5,685 IT strategic initiatives and other ​ ​ 2,435 Cash payments ​ ( 2,463 ) Accrued exit and realignment costs, March 31, 2024 ​ ​ 8,766 Provision for exit and realignment activities: ​ Professional fees ​ 12,453 IT strategic initiatives and other ​ 2,982 Cash payments ​ ( 3,600 ) Accrued exit and realignment costs, June 30, 2024 ​ ​ 20,601 Provision for exit and realignment activities: ​ ​ ​ Professional fees ​ ​ 10,670 IT strategic initiatives and other ​ ​ 2,854 Cash payments ​ ​ ( 16,842 ) Accrued exit and realignment costs, September 30, 2024 ​ $ 17,283 ​ ​ In addition to the exit and realignment accruals in the preceding table, we also incurred $ 0.1 million and $ 7.7 million of costs that were expensed as incurred for the three and nine months ended September 30, 2025, which primarily related to wind-down costs of Fusion5. 21 Table of Contents Note 8—Debt Debt, net of unamortized deferred financing costs, as of September 30, 2025 and December 31, 2024 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 December 31, 2024 ​ Carrying Estimated Carrying Estimated ​ ​ Amount ​ Fair Value ​ Amount ​ Fair Value Term Loan A ​ $ 324,224 ​ $ 329,513 ​ $ 322,957 ​ $ 327,066 Revolving Credit Facility ​ ​ 270,700 ​ ​ 270,700 ​ ​ — ​ ​ — 4.500 % Senior Notes, due March 2029 ​ 474,802 ​ 385,273 ​ 473,976 ​ 427,117 Term Loan B ​ 501,835 ​ 511,000 ​ 499,871 ​ 518,665 6.625 % Senior Notes, due April 2030 ​ 543,700 ​ 455,479 ​ 542,311 ​ 518,671 Other ​ — ​ ​ — ​ 2,144 ​ 2,144 Total debt ​ 2,115,261 ​ 1,951,965 ​ 1,841,259 ​ 1,793,663 Less current maturities, including anticipated repayments ​ ( 280,000 ) ​ ( 280,000 ) ​ ( 42,866 ) ​ ( 42,866 ) Long-term debt ​ $ 1,835,261 ​ $ 1,671,965 ​ $ 1,798,393 ​ $ 1,750,797 ​ On March 29, 2022, we entered into a Security Agreement Supplement pursuant to which the Security and Pledge Agreement (the Security Agreement), dated March 10, 2021 was supplemented to grant collateral on behalf of the holders of the 2024 Notes, and the parties secured under the credit agreements including first priority liens and security interests in (a) all present and future shares of capital stock owned by the Grantors (as defined in the Security Agreement) in the Grantors’ present and future subsidiaries, subject to certain customary exceptions, and (b) all present and future personal property and assets of the Grantors, subject to certain exceptions. On March 29, 2022, we entered into a term loan credit agreement with an administrative agent and collateral agent and a syndicate of financial institutions, as lenders (the Credit Agreement) that provides for two credit facilities: (i) a $ 500 million Term Loan A facility (the Term Loan A), and (ii) a $ 600 million Term Loan B facility (the Term Loan B). The interest rate on the Term Loan A is based on the sum of either Term SOFR or the Base Rate and an Applicable Rate which varies depending on the current Debt Ratings or Total Leverage Ratio, determined as to whichever shall result in more favorable pricing to the Borrowers (each as defined in the Credit Agreement). The interest rate on the Term Loan B is based on either the Term SOFR or the Base Rate plus an Applicable Rate. The Term Loan A will mature in March 2027 and the Term Loan B will mature in March 2029. On March 10, 2021, we issued $ 500 million of 4.500 % senior unsecured notes due in March 2029 (the 2029 Unsecured Notes), with interest payable semi-annually. The 2029 Unsecured Notes were sold at 100 % of the principal amount with an effective yield of 4.500 %. On March 29, 2022, we issued $ 600 million of 6.625 % senior unsecured notes due in April 2030 (the 2030 Unsecured Notes), with interest payable semi-annually. The 2030 Unsecured Notes were sold at 100 % of the principal amount with an effective yield of 6.625 %. The 2029 Unsecured Notes and the 2030 Unsecured Notes are subordinated to any of our secured indebtedness, including indebtedness under our credit agreements. On March 29, 2022, we entered into an amendment to our revolving credit agreement, dated as of March 10, 2021 with an administrative agent and collateral agent and a syndicate of financial institutions, as lenders (Revolving Credit Agreement). The amendment: (i) increased the aggregate revolving credit commitments under the Revolving Credit Agreement by $ 150 million, to an aggregate amount of $ 450 million and (ii) replaced the Eurocurrency Rate with the Adjusted Term SOFR Rate (each as defined in the Revolving Credit Agreement). The Revolving Credit Agreement matures in March 2027. At September 30, 2025 we had $ 271 million in outstanding borrowings on our Revolving Credit Agreement. At December 31, 2024 our Revolving Credit Agreement was undrawn. At September 30, 2025 and December 31, 2024, we 22 Table of Contents had letters of credit, which reduce Revolver availability, totaling $ 29 million and $ 31 million, leaving $ 150 million and $ 419 million available for borrowing. The Revolving Credit Agreement, the Credit Agreement, the 2029 Unsecured Notes and the 2030 Unsecured Notes contain cross-default provisions which could result in the acceleration of payments due in the event of default of any of the related agreements. The terms of the applicable credit agreements also require us to maintain ratios for leverage and interest coverage, including on a pro forma basis in the event of an acquisition or divestiture. We were in compliance with our debt covenants at September 30, 2025. As of September 30, 2025, future principal payments due under our debt agreements or anticipated to be repaid within twelve months, were as follows: ​ ​ ​ ​ ​ Year ​ ​ 2025 (remainder) ​ $ — 2026 ​ 280,000 2027 ​ 316,950 2028 ​ — 2029 ​ 989,654 2030 ​ 552,189 ​ Current maturities at September 30, 2025 represent $ 280 million in debt anticipated to be repaid within the next twelve months in connection with expected net cash proceeds related to the Purchase Agreement. Note 9—Share-Based Compensation We maintain a share-based compensation plan (the Plan) that is administered by the Our People & Culture Committee of the Board of Directors. The Plan allows us to award or grant to officers, directors and teammates incentive, non-qualified and deferred compensation stock options, stock appreciation rights (SARs), performance stock units and performance shares (collectively, Performance Stock Awards (PSAs)), restricted stock units and restricted stock (collectively, Restricted Stock Awards (RSAs)) and unrestricted stock. We use authorized and unissued common shares for grants of RSAs, SARs, PSAs or for stock option exercises. At September 30, 2025, approximately 2.2 million common shares were available for issuance under the Plan. We anticipate approximately 1.8 million unvested shares to be forfeited in connection with closing of the sale of the P&HS segment, which would increase the common shares available for issuance by this amount. RSAs under the Plan generally vest over one , three or five years . PSAs under the Plan are issuable as restricted stock or common shares upon meeting performance goals and generally have a total performance and vesting period of three years . Under the 2018 Stock Incentive Plan, if outstanding equity awards are not assumed or substituted in connection with a change in control, unvested awards will vest in full upon the change in control. Under the 2023 Omnibus Incentive Plan, unless the individual award agreements provide otherwise, if the successor company assumes the awards, vesting of the award will be accelerated upon a subsequent termination of employment without cause or, if the teammate resigns for good reason, in each case, within 24 months following the change in control, with any performance-based awards deemed earned based on the target performance levels. Share-based compensation (benefit) expense for the three and nine months ended September 30, 2025 was ($ 0.1 ) million and $ 9.2 million with recognized tax expense of less than $ 0.1 million and benefits of $ 2.4 million. Share-based compensation expense for the three and nine months ended September 30, 2024 was $ 3.5 million and $ 12.0 million with recognized tax benefits of $ 0.9 million and $ 3.1 million. For the three months ended September 30, 2025, we incurred a $ 4.0 million benefit for changes in expected performance achievement associated with our 2023, 2024, and 2025 PSAs. Unrecognized compensation cost related to nonvested RSAs, net of estimated forfeitures, was $ 27 million at September 30, 2025. This amount is expected to be recognized over a weighted-average period of 2.0 years, based on the maximum remaining vesting period required under the awards. Unrecognized compensation cost related to nonvested PSAs as of September 30, 2025 was $ 4.3 million and will be recognized primarily in 2025, 2026, and 2027 if the related performance targets are met at the current level expected. 23 Table of Contents ​ The following table summarizes the activity and value of nonvested RSAs and PSAs for the three and nine months ended September 30, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ September 30, ​ ​ ​ 2025 ​ 2024 ​ ​ ​ ​ Weighted ​ ​ Weighted ​ ​ ​ ​ ​ Average ​ ​ ​ Average ​ ​ ​ ​ ​ Grant-date Fair ​ ​ ​ Grant-date Fair ​ ​ ​ Number of ​ Value ​ Number of ​ Value ​ ​ ​ Shares ​ Per Share ​ Shares ​ Per Share ​ Nonvested awards at beginning of period ​ 3,670 ​ $ 12.78 ​ 2,074 ​ $ 21.63 ​ Granted ​ — ​ — ​ 55 ​ 14.30 ​ Vested ​ ( 93 ) ​ 18.39 ​ ( 12 ) ​ 25.02 ​ Forfeited ​ ( 53 ) ​ 14.69 ​ ( 101 ) ​ 20.84 ​ Nonvested awards at end of period ​ 3,524 ​ 12.60 ​ 2,016 ​ 21.44 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ ​ September 30, ​ ​ ​ 2025 ​ 2024 ​ ​ ​ ​ Weighted ​ ​ Weighted ​ ​ ​ ​ ​ Average ​ ​ ​ Average ​ ​ ​ ​ ​ Grant-date Fair ​ ​ ​ Grant-date Fair ​ ​ ​ Number of ​ Value ​ Number of ​ Value ​ ​ ​ Shares ​ Per Share ​ Shares ​ Per Share ​ Nonvested awards at beginning of period ​ 1,970 ​ $ 21.45 ​ 1,985 ​ $ 21.70 ​ Granted ​ 2,482 ​ 9.21 ​ 1,021 ​ 23.41 ​ Vested ​ ( 652 ) ​ 21.73 ​ ( 671 ) ​ 25.29 ​ Forfeited ​ ( 276 ) ​ 23.68 ​ ( 319 ) ​ 21.25 ​ Nonvested awards at end of period ​ 3,524 ​ 12.60 ​ 2,016 ​ 21.44 ​ ​ The total fair value of RSAs and PSAs vested during the three and nine months ended September 30, 2025 was $ 1.7 million and $ 14 million. The total fair value of RSAs and PSAs vested during the three and nine months ended September 30, 2024 was $ 0.3 million and $ 17 million. ​ Note 10—Derivatives We are directly and indirectly affected by changes in interest rates, which may adversely impact our financial performance and are referred to as “market risks.” When deemed appropriate, we use derivatives as a risk management tool to mitigate the potential impact of certain market risks. We do not enter into derivative financial instruments for trading purposes. We pay interest on our Credit Agreement which fluctuates based on changes in our benchmark interest rates. In order to mitigate the risk of increases in benchmark rates on our term loans, we entered into an interest rate swap agreement whereby we agree to exchange with the counterparty, at specified intervals, the difference between fixed and variable amounts calculated by reference to the notional amount. The interest rate swaps were designated as cash flow hedges. Cash flows related to the interest rate swap agreement are included in interest expense, net within discontinued operations, refer to Note 3. We determine the fair value of our interest rate swaps based on observable market-based inputs or unobservable inputs that are corroborated by market data. We do not view the fair value of our derivatives in isolation, but rather in relation to the fair values or cash flows of the underlying exposure. All derivatives are carried at fair value in our condensed consolidated balance sheets. We consider the risk of counterparty default to be minimal. We report cash flows from our hedging instruments in the same cash flow statement category as the hedged items. 24 Table of Contents The following table summarizes the terms and fair value of our outstanding cash flow hedges as of September 30, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Notional ​ Derivative Assets Derivative Liabilities ​ Amount Maturity Date Classification Fair Value Classification Fair Value Interest rate swaps ​ $ 250,000 ​ March 2027 Other assets, net ​ $ 2,001 ​ Other liabilities ​ $ — ​ The following table summarizes the terms and fair value of our outstanding cash flow hedges as of December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Notional ​ Derivative Assets Derivative Liabilities ​ Amount Maturity Date Classification Fair Value Classification Fair Value Interest rate swaps ​ $ 300,000 ​ March 2027 Other assets, net ​ $ 6,113 ​ Other liabilities ​ $ — ​ The notional amount of the interest rate swaps represents the amount in effect at the end of the period. Based on contractual terms, the notional amount will decrease in increments of $ 50 million on the last business day of March of each year until the maturity date. The following table summarizes the effect of cash flow hedge accounting on our condensed consolidated statements of operations for the three and nine months ended September 30, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) ​ ​ ​ Total Amount of Expense Line Items Presented in the Condensed Consolidated Statement of Operations in Which the Effects are Recorded ​ Amount of Gain Reclassified from Accumulated Other Comprehensive Loss into Net Loss ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, 2025 ​ Nine months ended September 30, 2025 ​ Location of Gain Reclassified from Accumulated Other Comprehensive Loss into Income ​ Three months ended September 30, 2025 ​ Nine months ended September 30, 2025 ​ Three months ended September 30, 2025 ​ Nine months ended September 30, 2025 Interest rate swaps ​ $ 194 ​ $ ( 1,127 ) Loss from discontinued operations, net of tax ​ $ ( 144,669 ) ​ $ ( 951,077 ) ​ $ 946 ​ $ 2,986 ​ The amount of ineffectiveness associated with these contracts was immaterial for the period presented. ​ The following table summarizes the effect of cash flow hedge accounting on our condensed consolidated statements of operations for the three and nine months ended September 30, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of (Loss) Gain Recognized in Other Comprehensive Income (Loss) ​ ​ ​ Total Amount of Expense Line Items Presented in the Condensed Consolidated Statement of Operations in Which the Effects are Recorded ​ Amount of Gain Reclassified from Accumulated Other Comprehensive Loss into Net Loss ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, 2024 ​ Nine months ended September 30, 2024 ​ Location of Gain Reclassified from Accumulated Other Comprehensive Loss into Income ​ Three months ended September 30, 2024 ​ Nine months ended September 30, 2024 ​ Three months ended September 30, 2024 ​ Nine months ended September 30, 2024 Interest rate swaps ​ $ ( 4,872 ) ​ $ 1,283 Loss from discontinued operations, net of tax ​ $ ( 14,031 ) ​ $ ( 47,695 ) ​ $ 1,757 ​ $ 6,280 ​ The amount of ineffectiveness associated with these contracts was immaterial for the period presented. Note 11—Income Taxes The effective tax rate was ( 54.3 )% and 0.8 % for the three and nine months ended September 30, 2025, compared to ( 31.6 )% and 32.2 % for the three and nine months ended September 30, 2024. The change in these rates were primarily from changes in results of continuing operations, including the tax treatment associated with the $ 80 million transaction breakage incurred during the nine months ended September 30, 2025, as well as the impact of certain discrete tax items relative to pre-tax (loss) income. 25 Table of Contents The liability for unrecognized tax benefits was $ 52 million and $ 36 million at September 30, 2025 and December 31, 2024. Substantially all of the $ 16 million increase in the liability for unrecognized tax benefits was the result of the tax treatment associated with the $ 80 million Rotech transaction breakage fee. Included in the liability at September 30, 2025 and December 31, 2024 were no tax positions for which ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. On August 26, 2020, we received a Notice of Proposed Adjustment (NOPA) from the Internal Revenue Service (IRS) regarding our 2015 and 2016 consolidated income tax returns. On June 30, 2021, we received a NOPA from the IRS regarding our 2017 and 2018 consolidated income tax returns. Within the NOPAs, the IRS has asserted that our taxable income for the aforementioned years should be higher based on their assessment of the appropriate amount of taxable income that we should report in the U.S. in connection with our sourcing of products by our foreign subsidiaries for sale in the U.S. by our domestic subsidiaries. The transfer pricing methodology was consistently applied for all years subject to the NOPAs and 2019 into 2022, but is no longer employed. In June 2024, the IRS and the relevant foreign taxing authority mutually agreed to proposed adjustments to our 2015 through 2018 consolidated tax returns. As a result, we remeasured the uncertain tax position for the 2015 through 2018 tax years, as well as the affected 2019 through 2022 tax years, to the amount expected to be paid upon a final agreement with the IRS. In June 2025, we received the final assessment from the IRS for the 2015 through 2018 tax years including interest. The uncertain tax position for these years and related accrued interest has been remeasured to reflect the final amount to be paid. This matter does not impact our 2023, 2024 or future tax years. As of September 30, 2025, we owed $ 37 million associated with the NOPA matter, which includes $ 11 million of interest accrued on the matter through September 30, 2025. The balance sheet classification and amount owed may be subject to change depending on the timing of a final agreement with the IRS. On July 4, 2025, The U.S. Congress passed budget reconciliation bill H.R. 1 referred to as the One Big Beautiful Bill (OBBB). The OBBB contains several changes to corporate taxation including modification to limitations on deductions for interest expense and accelerated fixed asset depreciation. We expect the legislation to decrease future U.S. cash taxes with no material impact to the effective tax rate. Note 12—Net (Loss) Income per Common Share The following summarizes the calculation of net (loss) income per common share attributable to common shareholders for the three and nine months ended September 30, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands, except per share data) 2025 2024 2025 2024 (Loss) income from continuing operations, net of tax ​ $ ( 5,607 ) ​ $ 1,261 ​ $ ( 93,239 ) ​ $ ( 18,875 ) Loss from discontinued operations, net of tax ​ ​ ( 144,669 ) ​ ​ ( 14,031 ) ​ ​ ( 951,077 ) ​ ​ ( 47,695 ) Net loss ​ $ ( 150,276 ) ​ $ ( 12,770 ) ​ $ ( 1,044,316 ) ​ $ ( 66,570 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding - basic ​ 77,288 ​ 77,090 ​ 77,069 ​ 76,657 Dilutive shares ​ — ​ 1,386 ​ — ​ — Weighted average shares outstanding - diluted ​ 77,288 ​ 78,476 ​ 77,069 ​ 76,657 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic loss per common share: ​ ​ ​ ​ (Loss) income from continuing operations, net of tax ​ $ ( 0.07 ) ​ $ 0.02 ​ $ ( 1.21 ) ​ $ ( 0.25 ) Loss from discontinued operations, net of tax ​ ​ ( 1.87 ) ​ ​ ( 0.19 ) ​ ​ ( 12.34 ) ​ ​ ( 0.62 ) Net loss ​ $ ( 1.94 ) ​ $ ( 0.17 ) ​ $ ( 13.55 ) ​ $ ( 0.87 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted loss per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Loss) income from continuing operations, net of tax ​ $ ( 0.07 ) ​ $ 0.02 ​ $ ( 1.21 ) ​ $ ( 0.25 ) Loss from discontinued operations, net of tax ​ ​ ( 1.87 ) ​ ​ ( 0.18 ) ​ ​ ( 12.34 ) ​ ​ ( 0.62 ) Net loss ​ $ ( 1.94 ) ​ $ ( 0.16 ) ​ $ ( 13.55 ) ​ $ ( 0.87 ) ​ 26 Table of Contents Share-based awards for the three and nine months ended September 30, 2025 of approximately 2.3 million and 2.2 million and 1.5 million shares for the nine months ended September 30, 2024 were excluded from the calculation of diluted loss per common share as the effect would be anti-dilutive. In accordance with ASC 260, dilutive shares are included in computing the diluted loss per common share from discontinued operations, net of tax and net loss per diluted common share for the three months ended September 30, 2024 even though they were anti-dilutive, as the control number (income from continuing operations, net of tax) was in an income position. Note 13—Shareholders Equity On February 26, 2025, our Board of Directors authorized a share repurchase program of up to $ 100 million and expires February 2027. Under the program, we may repurchase shares of common stock on a discretionary basis from time to time through open market repurchases, privately negotiated transactions and 10b5-1 trading plans. During the nine months ended September 30, 2025, we repurchased in open-market transactions and retired approximately 826 thousand shares of our common stock for an aggregate of $ 6.6 million, or an average price per share of $ 8.04 . Note 14—Accumulated Other Comprehensive (Loss) Income The following table shows the changes in accumulated other comprehensive (loss) income by component for the three and nine months ended September 30, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency ​ ​ ​ ​ ​ ​ Retirement ​ Translation ​ ​ ​ ​ ​ ​ ​ ​ Plans ​ Adjustments ​ Derivatives ​ Total Accumulated other comprehensive (loss) income, June 30, 2025 ​ $ ( 4,887 ) ​ $ ( 27,369 ) ​ $ 2,037 ​ $ ( 30,219 ) Other comprehensive income (loss) before reclassifications ​ 14 ​ ​ 262 ​ ​ 194 ​ 470 Income tax ​ ( 3 ) ​ ​ — ​ ​ ( 50 ) ​ ( 53 ) Other comprehensive income (loss) before reclassifications, net of tax ​ 11 ​ 262 ​ 144 ​ 417 Amounts reclassified from accumulated other comprehensive income (loss) ​ 120 ​ ​ — ​ ​ ( 946 ) ​ ( 826 ) Income tax ​ ( 31 ) ​ ​ — ​ ​ 246 ​ 215 Amounts reclassified from accumulated other comprehensive income (loss), net of tax ​ 89 ​ — ​ ( 700 ) ​ ( 611 ) Other comprehensive income (loss) ​ 100 ​ 262 ​ ( 556 ) ​ ( 194 ) Accumulated other comprehensive (loss) income, three months ended September 30, 2025 ​ $ ( 4,787 ) ​ $ ( 27,107 ) ​ $ 1,481 ​ $ ( 30,413 ) ​ 27 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency ​ ​ ​ ​ ​ ​ Retirement ​ Translation ​ ​ ​ ​ ​ ​ ​ ​ Plans ​ Adjustments ​ Derivatives ​ Total Accumulated other comprehensive (loss) income, June 30, 2024 ​ $ ( 4,681 ) ​ $ ( 51,522 ) ​ $ 7,459 ​ $ ( 48,744 ) Other comprehensive income (loss) before reclassifications ​ 275 ​ 25,966 ​ ( 4,872 ) ​ 21,369 Income tax ​ ( 68 ) ​ — ​ 1,267 ​ 1,199 Other comprehensive income (loss) before reclassifications, net of tax ​ 207 ​ 25,966 ​ ( 3,605 ) ​ 22,568 Amounts reclassified from accumulated other comprehensive income (loss) ​ 79 ​ — ​ ( 1,757 ) ​ ( 1,678 ) Income tax ​ ( 21 ) ​ — ​ 457 ​ 436 Amounts reclassified from accumulated other comprehensive income (loss), net of tax ​ 58 ​ — ​ ( 1,300 ) ​ ( 1,242 ) Other comprehensive income (loss) ​ 265 ​ 25,966 ​ ( 4,905 ) ​ 21,326 Accumulated other comprehensive (loss) income, three months ended September 30, 2024 ​ $ ( 4,416 ) ​ $ ( 25,556 ) ​ $ 2,554 ​ $ ( 27,418 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency ​ ​ ​ ​ ​ ​ Retirement ​ Translation ​ ​ ​ ​ ​ ​ ​ ​ Plans ​ Adjustments ​ Derivatives ​ Total Accumulated other comprehensive (loss) income, December 31, 2024 ​ $ ( 5,770 ) ​ $ ( 48,099 ) ​ $ 4,525 ​ $ ( 49,344 ) Other comprehensive income (loss) before reclassifications ​ 966 ​ 20,992 ​ ( 1,127 ) ​ 20,831 Income tax ​ ( 250 ) ​ — ​ 293 ​ 43 Other comprehensive income (loss) before reclassifications, net of tax ​ 716 ​ 20,992 ​ ( 834 ) ​ 20,874 Amounts reclassified from accumulated other comprehensive income (loss) ​ 360 ​ — ​ ( 2,986 ) ​ ( 2,626 ) Income tax ​ ( 93 ) ​ — ​ 776 ​ 683 Amounts reclassified from accumulated other comprehensive income (loss), net of tax ​ 267 ​ — ​ ( 2,210 ) ​ ( 1,943 ) Other comprehensive income (loss) ​ 983 ​ 20,992 ​ ( 3,044 ) ​ 18,931 Accumulated other comprehensive (loss) income, nine months ended September 30, 2025 ​ $ ( 4,787 ) ​ $ ( 27,107 ) ​ $ 1,481 ​ $ ( 30,413 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency ​ ​ ​ ​ ​ ​ Retirement ​ Translation ​ ​ ​ ​ ​ ​ ​ ​ Plans ​ Adjustments ​ Derivatives ​ Total Accumulated other comprehensive (loss) income, December 31, 2023 ​ $ ( 5,115 ) ​ $ ( 32,954 ) ​ $ 6,251 ​ $ ( 31,818 ) Other comprehensive income before reclassifications ​ 694 ​ 7,398 ​ 1,283 ​ 9,375 Income tax ​ ( 173 ) ​ — ​ ( 334 ) ​ ( 507 ) Other comprehensive income before reclassifications, net of tax ​ 521 ​ 7,398 ​ 949 ​ 8,868 Amounts reclassified from accumulated other comprehensive income (loss) ​ 241 ​ — ​ ( 6,280 ) ​ ( 6,039 ) Income tax ​ ( 63 ) ​ — ​ 1,634 ​ 1,571 Amounts reclassified from accumulated other comprehensive income (loss), net of tax ​ 178 ​ — ​ ( 4,646 ) ​ ( 4,468 ) Other comprehensive income (loss) ​ 699 ​ 7,398 ​ ( 3,697 ) ​ 4,400 Accumulated other comprehensive (loss) income, nine months ended September 30, 2024 ​ $ ( 4,416 ) ​ $ ( 25,556 ) ​ $ 2,554 ​ $ ( 27,418 ) ​ We include amounts reclassified out of accumulated other comprehensive (loss) income related to defined benefit pension plans as a component of net periodic pension cost recorded in Other expense, net. 28 Table of Contents Note 15—Commitments, Contingent Liabilities, and Legal Proceedings On June 3, 2025, the Company, Rotech and Merger Sub mutually agreed to terminate the Merger Agreement and entered into the Termination Agreement. In accordance with the terms of the Termination Agreement, the Company made a cash payment to Rotech of $ 80 million on June 5, 2025. This payment fulfills the obligation as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024. Refer to our Annual Report on Form 10-K for the year ended December 31, 2024 for disclosure of other material contractual obligations. We are party to various legal claims that are ordinary and incidental to our business, including ones related to commercial disputes, employment, personal injury, product liability, regulatory, workers’ compensation, and other matters. We maintain insurance coverage for employment, product liability, workers’ compensation and other personal injury litigation matters, subject to policy limits, applicable deductibles and insurer solvency. We establish reserves from time to time based upon periodic assessment of the potential outcomes of pending matters. Based on current knowledge and the advice of counsel, we believe that the accrual as of September 30, 2025 for currently pending matters considered probable of loss, is sufficient. In addition, we believe that other currently pending matters are not reasonably possible to result in a material loss, as payment of the amounts claimed is remote, the claims are immaterial, individually and in the aggregate, or the claims are expected to be adequately covered by insurance, subject to policy limits, applicable deductibles, exclusions and insurer solvency. Note 16—Segment Information As described in Note 1, the P&HS segment has met the accounting requirements to be classified as discontinued operations and held for sale at September 30, 2025, and we no longer report the P&HS segment. The P&HS segment was initially classified as discontinued operations and assets held for sale as of June 30, 2025. Our President, Chief Executive Officer & Director is the chief operating decision maker (CODM). The CODM reviews financial information about the continuing operations business at an enterprise-wide consolidated level when allocating resources and assessing business performance. Accordingly, we have determined that our business activities comprise a single operating and reporting segment. Net income (loss) from continuing operations is the profit or loss measure used by the CODM that is most consistent with GAAP and therefore is the required measure of profitability. ​ ​ Note 17—Recent Accounting Pronouncements In December 2023, the FASB Issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which will require additional annual income tax disclosures, including disclosure of reconciling items by jurisdiction and nature to the extent those items exceed a specified threshold. In addition, this ASU will require disclosure of income taxes paid, net of refunds received disaggregated by federal, state, and foreign and by jurisdiction if the amount is more than 5% of total income tax payments, net of refunds received. The amendments in this ASU are effective for us in annual periods beginning after December 15, 2024. The amendments in this ASU are required to be applied on a prospective basis and retrospective adoption is permitted. We expect this ASU to only impact our disclosures with no impacts to our results of operations, financial condition and cash flows. In November 2024, the FASB issued ASU No. 2024-03, Income Statement – Reporting Comprehensive Income – Expense disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses which will require additional disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The amendments in this ASU are effective for us in annual periods beginning after December 15, 2026. The amendments in this ASU are required to be applied on a prospective basis and retrospective adoption is permitted. We expect this ASU to only impact our disclosures with no impacts to our results of operations, financial condition and cash flows . In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient permitting the 29 Table of Contents assumption that conditions at the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for current accounts receivable and current contract assets. The amendments in this ASU are effective for us in annual and interim periods beginning after December 15, 2025. We do not expect this ASU to have a material impact on our consolidated financial statements. In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which will require capitalization of software costs when management has authorized and committed to funding software projects and it is probable that the project will be completed and the software will be used to perform the function intended. The amendments in this ASU are effective for us in annual periods beginning after December 15, 2027. The amendments in this ASU are required to be applied on a prospective basis and retrospective adoption is permitted. We are currently evaluating the effects of adopting this guidance on our consolidated financial statements. Note 18—Subsequent Events On October 7, 2025, we entered into the Purchase Agreement by and among the Company, the Purchaser, and Purchaser Parent to sell the P&HS segment, for an aggregate of $ 375 million in cash, subject to certain adjustments for cash, indebtedness, net working capital and transaction expenses. We will retain a 5 % equity interest in the P&HS segment. The Purchaser will be required to pay us a termination fee under certain specified circumstances of $ 9.4 million or $ 19 million depending on the stage of regulatory approval and other criteria. The sale is subject to customary closing conditions, including the Hart Scott Rodino Act and other regulatory approvals, and is expected to close in the first quarter of 2026. ​ 30 Table of Contents