Revenue

Loss from continuing operations, net of tax, GAAP

Adj. net income from continuing operations, Non-GAAP

Adj. EBITDA, Non-GAAP

Loss from continuing operations, net of tax per common share, GAAP

Adj. net income from continuing operations per share, Non-GAAP

Reconciliations of the differences between the non-GAAP financial measures presented in this release and their most directly comparable GAAP financial measures are included in the tables below.

Registered Trademark or Trademark of O&M Halyard or its affiliates.

Net revenue

Operating costs and expenses:

Cost of net revenue

Selling, general and administrative expenses

Transaction breakage fee

Acquisition-related charges and intangible amortization

Exit and realignment charges, net

Total operating costs and expenses

Operating (loss) income

Interest expense, net

Transaction financing fees, net

Other expense, net

Loss from continuing operations before income taxes

Income tax benefit

Loss from continuing operations, net of tax

Loss from discontinued operations, net of tax

Net loss

Basic loss per common share

Loss from continuing operations, net of tax

Loss from discontinued operations, net of tax

Net loss

Diluted loss per common share

Loss from continuing operations, net of tax

Loss from discontinued operations, net of tax

Net loss

Net revenue

Operating costs and expenses:

Cost of net revenue

Selling, general and administrative expenses

Transaction breakage fee

Acquisition-related charges and intangible amortization

Exit and realignment charges, net

Total operating costs and expenses

Operating (loss) income

Interest expense, net

Transaction financing fees, net

Other expense, net

Loss from continuing operations before income taxes

Income tax benefit

Loss from continuing operations, net of tax

Loss from discontinued operations, net of tax

Net loss

Basic loss per common share

Loss from continuing operations, net of tax

Loss from discontinued operations, net of tax

Net loss

Diluted loss per common share

Loss from continuing operations, net of tax

Loss from discontinued operations, net of tax

Net loss

Assets

Current assets

Cash and cash equivalents

Accounts receivable, net

Inventories

Other current assets

Current assets of discontinued operations

Total current assets

Patient service equipment and other fixed assets, net

Operating lease assets

Goodwill

Intangible assets, net

Other assets, net

Noncurrent assets of discontinued operations

Total assets

Liabilities and equity

Current liabilities

Accounts payable

Accrued payroll and related liabilities

Current portion of long-term debt

Other current liabilities

Current liabilities of discontinued operations

Total current liabilities

Long-term debt, excluding current portion

Operating lease liabilities, excluding current portion

Deferred income taxes, net

Other liabilities

Noncurrent liabilities of discontinued operations

Total liabilities

Total (deficit) equity

Total liabilities and equity

Operating activities:

Net loss

Adjustments to reconcile net loss to cash provided by operating activities:

Depreciation and amortization

Goodwill impairment charge

Loss on classification to held for sale

Share-based compensation expense

Deferred income tax benefit

Changes in operating lease right-of-use assets and lease liabilities

Gain from sale and dispositions of patient service equipment and other fixed assets

Changes in operating assets and liabilities:

Accounts receivable, net

Inventories

Accounts payable

Net change in other assets and liabilities

Other, net

Cash provided by operating activities

Investing activities:

Additions to patient service equipment and other fixed assets

Proceeds from sale of patient service equipment and other fixed assets

Additions to computer software

Other, net

Cash used for investing activities

Financing activities:

Borrowings under amended Receivables Financing Agreement

Repayments under amended Receivables Financing Agreement

Borrowings under Revolving Credit Facility

Repayments under Revolving Credit Facility

Repayments of debt

Repurchase of common stock

Other, net

Cash provided by (used for) financing activities

Effect of exchange rate changes on cash, cash equivalents and restricted cash

Net increase in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of period

Cash, cash equivalents and restricted cash at end of period⁽¹⁾

Supplemental disclosure of cash flow information:

Income taxes paid, net

Interest paid

Noncash investing activity:

Unpaid purchases of patient service equipment and other fixed assets at end of period

This amount includes cash from discontinued operations of $39 million and $30 million as of June 30, 2025 and March 31, 2025. There was no restricted cash as of June 30, 2025 and March 31, 2025.

Operating activities:

Net loss

Adjustments to reconcile net loss to cash provided by operating activities:

Depreciation and amortization

Goodwill impairment charge

Loss on classification to held for sale

Share-based compensation expense

Deferred income tax benefit

Changes in operating lease right-of-use assets and lease liabilities

Gain from sale and dispositions of patient service equipment and other fixed assets

Changes in operating assets and liabilities:

Accounts receivable, net

Inventories

Accounts payable

Net change in other assets and liabilities

Other, net

Cash provided by operating activities

Investing activities:

Additions to patient service equipment and other fixed assets

Proceeds from sale of patient service equipment and other fixed assets

Additions to computer software

Other, net

Cash used for investing activities

Financing activities:

Borrowings under amended Receivables Financing Agreement

Repayments under amended Receivables Financing Agreement

Borrowings under Revolving Credit Facility

Repayments under Revolving Credit Facility

Repayments of debt

Repurchase of common stock

Other, net

Cash provided by (used for) financing activities

Effect of exchange rate changes on cash, cash equivalents and restricted cash

Net increase in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of period

Cash, cash equivalents and restricted cash at end of period

Supplemental disclosure of cash flow information:

Income taxes paid, net

Interest paid

Noncash investing activity:

Unpaid purchases of patient service equipment and other fixed assets at end of period

This amount includes cash from discontinued operations of $39 million and $22 million as of June 30, 2025 and December 31, 2024. There was no restricted cash as of June 30, 2025 and December 31, 2024.

Loss from continuing operations, net of tax

Loss from discontinued operations, net of tax

Net loss

Weighted average shares outstanding - basic

Dilutive shares

Weighted average shares outstanding - diluted

Basic loss per common share

Loss from continuing operations, net of tax

Loss from discontinued operations, net of tax

Net loss

Diluted loss per common share:

Loss from continuing operations, net of tax

Loss from discontinued operations, net of tax

Net loss

Loss from continuing operations, net of tax

Loss from discontinued operations, net of tax

Net loss

Weighted average shares outstanding - basic

Dilutive shares

Weighted average shares outstanding - diluted

Basic loss per common share

Loss from continuing operations, net of tax

Loss from discontinued operations, net of tax

Net loss

Diluted loss per common share:

Loss from continuing operations, net of tax

Loss from discontinued operations, net of tax

Net loss

Operating (loss) income, as reported (GAAP)

Acquisition-related charges and intangible amortization ⁽¹⁾

Transaction breakage fee ⁽²⁾

Exit and realignment charges, net ⁽³⁾

Litigation and related charges ⁽⁵⁾

Operating income, adjusted (non-GAAP) (Adjusted Operating Income)

Operating (loss) income as a percent of net revenue (GAAP)

Adjusted operating income as a percent of net revenue (non-GAAP)

Loss from continuing operations, net of tax, as reported (GAAP)

Pre-tax adjustments:

Acquisition-related charges and intangible amortization ⁽¹⁾

Transaction breakage fee ⁽²⁾

Exit and realignment charges, net ⁽³⁾

Transaction financing fees, net ⁽⁴⁾

Litigation and related charges ⁽⁵⁾

Other ⁽⁶⁾

Income tax benefit on pre-tax adjustments ⁽⁹⁾

Income from continuing operations, net of tax, adjusted (non-GAAP) (Adjusted Net Income)

Loss from continuing operations, net of tax per common share, as reported (GAAP)

After-tax adjustments:

Acquisition-related charges and intangible amortization ⁽¹⁾

Transaction breakage fee ⁽²⁾

Exit and realignment charges, net ⁽³⁾

Transaction financing fees, net ⁽⁴⁾

Litigation and related charges ⁽⁵⁾

Other ⁽⁶⁾

Income from continuing operations, net of tax, per common share, adjusted (non-GAAP) (Adjusted EPS)

Loss from continuing operations, net of tax, as reported (GAAP)

Income tax benefit

Interest expense, net

Acquisition-related charges and intangible amortization ⁽¹⁾

Transaction breakage fee ⁽²⁾

Exit and realignment charges, net ⁽³⁾

Transaction financing fees, net ⁽⁴⁾

Litigation and related charges ⁽⁵⁾

Other depreciation and amortization ⁽⁷⁾

Stock compensation ⁽⁸⁾

Other ⁽⁶⁾

Adjusted EBITDA (non-GAAP)

Loss from continuing operations, net of tax, as reported (GAAP)

Income tax benefit

Interest expense, net

Acquisition-related charges and intangible amortization ⁽¹⁾

Transaction breakage fee ⁽²⁾

Exit and realignment charges, net ⁽³⁾

Transaction financing fees, net ⁽⁴⁾

Litigation and related charges ⁽⁵⁾

Other depreciation and amortization ⁽⁷⁾

Stock compensation ⁽⁸⁾

Other ⁽⁶⁾

Adjusted EBITDA (non-GAAP)

Total debt, as reported (GAAP)

Cash and cash equivalents

Net debt (non-GAAP)

Capital expenditures, as reported (GAAP)

Capital expenditures from discontinued operations

Capital expenditures from continuing operations

Proceeds from sale of patient service equipment and other fixed assets, as reported

Proceeds from sale of patient service equipment and other fixed assets from discontinued operations

Proceeds from sale of patient service equipment and other fixed assets from continuing operations

Net capital expenditures from continuing operations (non-GAAP) (Net Capex)

Capital expenditures, as reported (GAAP)

Capital expenditures from discontinued operations, as reported

Capital expenditures from continuing operations

Proceeds from sale of patient service equipment and other fixed assets, as reported

Proceeds from sale of patient service equipment and other fixed assets from discontinued operations

Proceeds from sale of patient service equipment and other fixed assets from continuing operations

Net capital expenditures from continuing operations (non-GAAP) (Net Capex)

Acquisition-related charges and intangible amortization for the three and six months ended June 30, 2025 includes $6.4 million and $22 million of acquisition-related costs related to the terminated acquisition of Rotech, which consisted primarily of legal and professional fees. Acquisition-related charges and intangible amortization also includes amortization of intangible assets established during acquisition method of accounting for business combinations. Acquisition-related charges and intangible amortization for the three and six months ended June 30, 2024 includes $3.7 million of acquisition-related costs related to the terminated acquisition of Rotech, which consisted primarily of legal and professional fees. Acquisition-related charges and intangible amortization also includes amortization of intangible assets established during acquisition method of accounting for business combinations. Acquisition-related charges consist primarily of one-time costs related to acquisitions, including transaction costs necessary to consummate acquisitions, which consist of investment banking advisory fees and legal fees, director and officer tail insurance expense, as well as transition costs, such as severance and retention bonuses, information technology (IT) integration costs and professional fees. These amounts are highly dependent on the size and frequency of acquisitions and are being excluded to allow for a more consistent comparison with forecasted, current and historical results.

Transaction breakage fee includes a cash payment to Rotech of $80 million during the three and six months ended June 30, 2025 for the termination of the Rotech Acquisition.

During the three and six months ended June 30, 2025 exit and realignment charges, net were $2.5 million and $16 million and primarily included professional fees associated with strategic initiatives of $1.9 million and $8.1 million. During the six months ended June 30, 2025 exit and realignment charges, net also included $6.8 million related to wind-down costs of Fusion5. Exit and realignment charges, net were $15 million and $24 million for the three and six months ended June 30, 2024. These charges primarily included professional fees associated with strategic initiatives of $12 million and $18 million and costs related to IT strategic initiatives such as converting certain divisions to common IT systems. These costs are not normal recurring, cash operating expenses necessary for the Company to operate its business on an ongoing basis.

Transaction financing fees, net includes $12 million in net interest paid on the financing issued in connection with previously expected Rotech acquisition and $6.7 million in recognition of related previously deferred debt issuance costs.

Litigation and related charges includes settlement costs and related charges of legal matters. These costs do not occur in the ordinary course of our business, are non-recurring/infrequent and are inherently unpredictable in timing and amount.

For the three and six months ended June 30, 2025 and 2024, other includes interest costs and net actuarial losses related to our frozen noncontributory, unfunded retirement plan for certain retirees in the United States (U.S.).

Other depreciation and amortization relates to patient service equipment and other fixed assets, excluding such amounts captured within exit and realignment charges, net or acquisition-related charges and intangible amortization.

Stock compensation includes share-based compensation expense related to our share-based compensation plans, excluding such amounts captured within exit and realignment charges, net or acquisition-related charges and intangible amortization.

These charges have been tax effected by determining the income tax rate depending on the amount of charges incurred in different tax jurisdictions and the deductibility of those charges for income tax purposes.