Financial Analysis

Note 8Debt Debt, net of unamortized deferred financing costs, as of December 31, 2025 and 2024 consisted of the following: December 31, 2025 December 31, 2024 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Term Loan A $ 324,647 $ 321,356 $ 322,957 $ 327,066 Revolving Credit Facility 203,500 203,500 4.500% Senior Notes, due March 2029 475,077 327,261 473,976 427,117 Term Loan B 502,489 492,159 499,871 518,665 6.625% Senior Notes, due April 2030 544,163 348,901 542,311 518,671 Other 2,144 2,144 Total debt 2,049,876 1,693,177 1,841,259 1,793,663 Less current maturities, including anticipated repayments (250,000) (250,000) (42,866) (42,866) Long-term debt $ 1,799,876 $ 1,443,177 $ 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 co …

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Years Ended December 31, 2025 2024 2023 Diabetes $ 783,370 $ 777,483 $ 723,318 Sleep therapy 740,052 702,950 669,784 Home respiratory therapy 433,050 435,954 457,675 Ostomy 212,838 195,923 177,890 Wound care 188,508 192,407 170,949 Urology 116,022 107,121 97,985 Other 288,192 268,274 254,971 Net revenue $ 2,762,032 $ 2,680,112 $ 2,552,572 The following table summarizes net revenue by payor type: Years Ended December 31, 2025 2024 2023 Commercial payors (1) $ 2,225,775 $ 2,177,955 $ 2,050,707 Medicare 497,797 461,973 463,471 Medicaid 38,460 40,184 38,394 Net revenue $ 2,762,032 $ 2,680,112 $ 2,552,572 (1) Commercial payors includes revenue from Medicare Advantage plans. …

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Note 9Share-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 December 31, 2025, approximately 4.6 million common shares were available for issuance under the Plan. Unvested shares of approximately 1.8 million were cancelled in connection with closing the sale of the P&HS business. 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 …

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Note 5Goodwill and Intangible Assets, Net At December 31, 2025 and 2024 we had goodwill of $1.2 billion, net of accumulated goodwill impairment of $307 million. As of October 1, 2025, we performed our annual impairment test and there were no impairments of goodwill. No impairment of goodwill was recorded for the year ended December 31, 2025 within continuing operations. Intangible assets subject to amortization, at December 31, 2025 and 2024 were as follows: 2025 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 (76,472) (71,081) (29,282) (24,326) (56,437) (22,481) Intangible assets, net $ 55,828 $ 71,919 $ 8,718 $ 107,974 $ 86,563 $ 15,519 Weighted average useful life 6 years 10 years 6 years 15 years 10 years 6 years Amortization expense for intangible assets was $74 million, $40 million and $58 million for the years ended December 31, 2025, 2024, and 2023. The increase as compared to the prior year was driven by the remaining useful life for an intangible asset being modified 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 December 31, 2025, based on the current carrying value of intangible assets subject to amortization and expected remaining useful life, estimated amortization ex …

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Note 12Income Taxes The components of (loss) income from continuing operations before income taxes consist of the following: Years Ended December 31, 2025 2024 2023 (Loss) income from continuing operations before income taxes U.S. $ (104,080) $ (331,882) $ 14,547 Foreign $ 2,127 $ 1,997 $ 718 Total $ (101,953) $ (329,885) $ 15,265 The income tax provision consists of the following: Years Ended December 31, 2025 2024 2023 Income tax provision from continuing operations Current tax provision Federal $ 15,770 $ 22,935 $ 7,504 State 1,205 5,454 4,679 Foreign 1,641 503 181 Total current tax provision 18,616 28,892 12,364 Deferred tax (benefit) provision: Federal (14,577) (8,755) (3,622) State (3,310) 713 (2,382) Foreign Total deferred tax benefit (17,887) (8,042) (6,004) Total income tax provision (benefit): Federal 1,193 14,180 3,882 State (2,105) 6,167 2,297 Foreign 1,641 503 181 Total income tax provision $ 729 $ 20,850 $ 6,360 A reconciliation of the federal statutory rate to our effective income tax rate is shown below: Years Ended December 31, 2025 2024 2023 US federal statutory income tax rate $ (21,410) 21.0 % $ (69,276) 21.0 % $ 3,206 21.0 % Domestic state and local income taxes, net of federal effect (2,214) 2.2 % 5,124 (1.6) % 558 3.7 % Tax credits (144) 0.2 % (315) 0.1 % (398) (2.6) % Nondeductible / nontaxable items Goodwill impairment % 62,788 (19.0) % % Compensation 892 (0.9) % 867 (0.3) % 344 2.3 % Other 1,191 (1.2) % 457 (0.1) % 139 0.9 % Excess tax expense on sha …

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Note 15 Commitments, Contingent Liabilities, and Legal Proceedings We are party to various legal claims that are ordinary and incidental to our business, including ones related to commercial disputes, employment, workers compensation, product liability, regulatory and other matters. We maintain insurance coverage for cybersecurity, employment, product liability, workers compensation and other personal injury litigation matters, subject to policy limits, applicable deductibles and insurer solvency. From time to time, we establish estimated liabilities based upon periodic assessment of the potential outcomes of pending matters. Based on current knowledge and the advice of counsel, we believe that the liability recorded on the consolidated balance sheet as of December 31, 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. …

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Note 6Leases The components of lease expense were as follows: Years Ended December 31, Classification 2025 2024 2023 Operating lease cost SG&A expenses $ 52,333 $ 53,283 $ 47,090 Short-term lease cost SG&A expenses, Cost of net revenue 6,475 10,203 7,106 Variable lease cost SG&A expenses, Cost of net revenue 24,746 25,024 24,368 Total lease cost $ 83,554 $ 88,510 $ 78,564 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 was as follows: As of December 31, As of December 31, Classification 2025 2024 Assets: Operating lease assets Operating lease assets $ 109,099 $ 126,928 Liabilities: Current operating leases Other current liabilities $ 43,272 $ 41,217 Noncurrent operating leases Operating lease liabilities, excluding current portion 70,317 89,466 Total operating lease liabilities $ 113,589 $ 130,683 Other information related to leases was as follows: Years Ended December 31, 2025 2024 2023 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 52,705 $ 52,606 $ 49,352 Right-of-use assets obtained in exchange for new operating lease liabilities $ 33,211 $ 40,176 $ 69,666 Weighted average remaining lease term (years) Operating leases 3.3 3.7 4.0 Weighted average discount rate Operating leases 8.0 % …

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Note 10Retirement Plan U.S. Retirement Plan. We have a frozen noncontributory, unfunded retirement plan for certain retirees in the U.S. (U.S. Retirement Plan). The following table sets forth the U.S. Retirement Plans financial status and the amounts recognized in our consolidated balance sheets: December 31, 2025 2024 Change in benefit obligation Benefit obligation, beginning of year $ 31,209 $ 34,059 Interest cost 1,578 1,524 Actuarial gain 815 (1,295) Benefits paid (3,043) (3,079) Benefit obligation, end of year $ 30,559 $ 31,209 Change in plan assets Fair value of plan assets, beginning of year $ $ Employer contribution 3,043 3,079 Benefits paid (3,043) (3,079) Fair value of plan assets, end of year $ $ Funded status, end of year $ (30,559) $ (31,209) Amounts recognized in the consolidated balance sheets Other current liabilities $ (2,899) $ (2,936) Other liabilities (27,661) (28,273) Accumulated other comprehensive loss 5,535 4,838 Net amount recognized $ (25,025) $ (26,371) Accumulated benefit obligation $ 30,559 $ 31,209 Weighted average assumptions used to determine benefit obligation Discount rate 5.02 % 5.31 % Rate of increase in compensation levels N/A N/A Plan benefit obligations of the U.S. Retirement Plan were measured as of December 31, 2025 and 2024. Plan benefit obligations are determined using assumptions developed at the measurement date. The weighted average discount rate, which is used to calculate the present value of plan liabilities, is an estimate of …

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Note 7Exit 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 $18 million, $47 million and $7.3 million for the years ended December 31, 2025, 2024 and 2023. 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. Exit and realignment charges, net for the year ended December 31, 2025 also included a $4.8 million gain on sales of patient service equipment in response to the contract termination with a commercial Payor. As a result of the sale of our P&HS business, we expect to incur up to $65 million in future exit & realignment costs associated with reimbursement to the Purchaser for certain future costs incurred by the Purchaser, as described in Note 3. We will be obligated to reimburse Purchaser for any such costs incurred after December 31, 2025, except that such reimbursements will not need to be paid: (1) in advance of April 1, 2026; (2) for amounts in excess of $15 million prior …

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Note 16Segment Information As described in Note 1, the P&HS business sale was completed on December 31, 2025, and we no longer report the P&HS business within continuing operations. The P&HS business was initially classified as discontinued operations and assets held for sale as of June 30, 2025. Our President and Chief Executive Officer 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. …

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Note 1Summary of Significant Accounting Policies Accendra Health, Inc. (f/k/a Owens & Minor, Inc.) and subsidiaries (we, us, our or the Company) is a leading nationwide provider of products, technology, and services that supports health beyond the hospital for millions of people each year. We connect patients, providers, and insurers, delivering innovative solutions that help promote better health outcomes and improve quality of life for people living with chronic, complex, and acute health conditions. Together, our trusted brands, Apria and Byram Healthcare, bring nearly 90 years of combined experience in promoting health beyond the hospital in communities across the country. We are headquartered in Richmond, Virginia. Basis of Presentation and Consolidation. The consolidated financial statements include the accounts of Accendra Health, Inc. and the subsidiaries it controls and contain all adjustments necessary to conform with U.S. generally accepted accounting principles (GAAP). All significant intercompany accounts and transactions have been eliminated. In connection with the sale of our Products & Healthcare Services (P&HS) business as detailed in the discontinued operations 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 per …

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Note 17Shareholders Equity On February 26, 2025, our Board of Directors authorized a share repurchase program of up to $100 million. The program 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 year ended December 31, 2025, we repurchased in open-market transactions and retired approximately 2.0 million shares of our common stock for an aggregate of $10 million, or a weighted average price per share of $5.19 . …

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