Accendra Health

Positives: management executed a strategic separation, focusing the company on higher-margin Patient Direct with improving cash conversion. Negatives: 2025 included an 80 million break fee for the terminated Rotech deal, and leverage remains elevated, constraining optionality for repurchases or significant M&A.

Near-term priorities are deleveraging, service quality and stable payer terms. We view this as rational but not yet a compounding playbook.