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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Adapthealth Corp. · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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Our exposure to market risk relates to fluctuations in interest rates from borrowings under the 2026 Credit Agreement. As of June 30, 2026, there was $325.0 million outstanding under the 2026 Term Loan, $150.0 million of outstanding borrowings under the 2026 Revolver, $34.3 million outstanding under letters of credit, and based on the financial debt covenants under the 2026 Credit Agreement, the maximum amount the Company could borrow under the 2026 Revolver and remain in compliance with the financial debt covenants under the agreement was $265.7 million. Amounts borrowed under the 2026 Credit Agreement bear interest at variable rates determined in relation to the Base Rate (as defined) or Term SOFR (as defined), at our option. Due to the interest rates being variable, fluctuations in interest rates may impact our earnings. Based on our level of debt as of June 30, 2026, we estimate that a 100 basis point change in interest rates would have a $4.4 million annual impact on our net income (loss) before income taxes.
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