The following tables present segment net revenue, significant segment expenses, and other segment items that are included in the Company’s reported measure of segment profit or loss for the three months ended March 31, 2026 and 2025 (in thousands):


	Three Months Ended March 31, 2026
	Sleep Health		Respiratory Health		Diabetes Health		Wellness at Home		Total
Net revenue	$	358,495	178,140		142,166		140,998		$	819,799
Less:
Cost of product and supplies (a)	114,337		34,921		106,957		67,948		324,163
Labor cost (a) (b)	102,671		55,238		14,468		39,329		211,706
Other operating expenses (a) (c)	41,060		18,302		2,132		13,616		75,110
Other segment items (d)	37,730		19,638		14,468		15,791		87,627
Adjusted EBITDA	$	62,697	$	50,041	$	4,141	$	4,314	$	121,193


	Three Months Ended March 31, 2025
	Sleep Health		Respiratory Health		Diabetes Health		Wellness at Home		Total
Net revenue	$	316,351	165,481		138,844		157,206		$	777,882
Less:
Cost of product and supplies (a)	108,199		34,054		104,069		80,554		326,876
Labor cost (a) (b)	80,720		54,059		12,977		34,547		182,303
Other operating expenses (a) (c)	32,805		14,826		1,856		13,569		63,056
Other segment items (d)	31,000		17,064		13,554		16,091		77,709
Adjusted EBITDA	$	63,627	$	45,478	$	6,388	$	12,445	$	127,938

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

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

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

The following table presents a reconciliation of total Adjusted EBITDA to consolidated loss before income taxes for the three months ended March 31, 2026 and 2025 (in thousands):


	Three Months Ended March 31,
	2026		2025
Total Adjusted EBITDA	$	121,193	$	127,938
Interest expense, net	(25,594)		(28,399)
Depreciation and amortization, including patient equipment depreciation	(106,469)		(94,345)
Equity-based compensation expense (a)	(6,532)		(5,296)
Litigation settlement expense (b)	(500)		—
Other non-recurring expenses, net (c)	(2,203)		(5,127)
Loss before income taxes	$	(20,105)	$	(5,229)

(c)The expense for the three months ended March 31, 2026 consists of $1.6 million of consulting expenses associated with asset dispositions and $0.9 million of transaction costs associated with acquisitions, partially offset by $0.3 million of other net non-recurring income. The expense for the three months ended March 31, 2025 consists of $2.3 million of consulting expenses associated with asset dispositions, $1.6 million of consulting expenses associated with systems implementation activities, and $1.2 million of other non-recurring expenses.

The following table presents the amounts of patient equipment depreciation by reportable segment for the three months ended March 31, 2026 and 2025 (in thousands):


	Three Months Ended March 31,
	2026		2025
Patient equipment depreciation:
Sleep Health	$	44,460	$	38,205
Respiratory Health	33,057		31,116
Diabetes Health	2,634		2,270
Wellness at Home	16,214		12,340
Total patient equipment depreciation (1)	$	96,365	$	83,931

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