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1. Teladoc for comprehensive digital health management. 2. Amazon One Medical, but for virtual-first, comprehensive digital healthcare.

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• Integrated Care Delivery: Manages and operates a network of healthcare facilities, including hospitals and clinics, offering comprehensive medical services.
• Health Insurance Products: Provides a range of health insurance plans for individuals, families, and employer groups, covering various medical expenses.
• Pharmacy Services: Offers pharmacy benefit management (PBM) services, encompassing prescription drug fulfillment and cost-effective medication solutions.
• Digital Health Platforms: Develops and deploys innovative digital tools, such as telemedicine and patient management platforms, to improve healthcare access and efficiency.
• Population Health Management: Implements programs and services focused on preventative care, chronic disease management, and wellness initiatives for large populations.

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I am unable to identify the major customers for "Accendra Health" (symbol: ACH) because this company name and stock symbol combination does not correspond to a known public company in the healthcare sector with publicly available information. The stock symbol ACH is primarily associated with Armstrong World Industries, Inc., which operates in the building materials industry, not healthcare.

Therefore, I cannot provide details on its major customers or customer categories as the premise of a verifiable public company does not hold true.

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Edward A. Pesicka President, Chief Executive Officer & Director

Edward A. Pesicka was appointed President, Chief Executive Officer, and a Director of Accendra Health (formerly Owens & Minor) in March 2019. He brings over 25 years of experience in distribution, manufacturing, and service across the healthcare, pharmaceutical, biotechnology, and scientific research industries. Prior to his role at Accendra Health, Mr. Pesicka spent 15 years at Thermo Fisher Scientific, where his positions included Chief Commercial Officer and Senior Vice President. His earlier career involved various finance roles at TRW Inc. and starting as an accountant at Coopers & Lybrand. Mr. Pesicka holds an MBA from Case Western Reserve University and a bachelor's degree from Muskingum University. He also serves as an Independent Director at Fortrea Holdings, Inc.

Jonathan Leon Executive Vice President, Chief Financial Officer

Jonathan Leon was appointed Executive Vice President, Chief Financial Officer of Accendra Health in September 2024. He joined Owens & Minor (now Accendra Health) in January 2017, previously serving as Senior Vice President, Corporate Treasurer, and Interim Chief Financial Officer. Before his tenure at Accendra Health, Mr. Leon accumulated 18 years of experience at The Brink's Company, where he held various investor relations, corporate finance, and treasury roles, including Treasurer. He earned a Bachelor of Science degree in Finance from the University of Connecticut.

Perry A. Bernocchi Executive Vice President, Chief Operating Officer

Perry A. Bernocchi was appointed Executive Vice President, Chief Operating Officer of Accendra Health effective December 5, 2025. Prior to this, he served as Executive Vice President, Chief Executive Officer, Patient Direct from March 2023 to December 2025. From 2009 to March 2023, he was the Chief Executive Officer of the company's Byram Healthcare division. Mr. Bernocchi joined Byram Healthcare in 2006 as its Chief Operating Officer. Earlier in his career, he served as Chief Operating Officer of Hemophilia Resources of America for five years, a company that was subsequently sold to Accredo Health. He also spent 18 years at Caremark/Coram in various operational and general management capacities.

Heath H. Galloway Executive Vice President, General Counsel & Corporate Secretary

Heath H. Galloway has served as Executive Vice President, General Counsel and Corporate Secretary for Accendra Health (formerly Owens & Minor) since May 2023. He joined the company in 2013 and previously held positions as Vice President, Associate General Counsel from 2016 to May 2023, and Assistant General Counsel from 2013 to 2016. Before his time at Accendra Health, Mr. Galloway was a Partner at the law firm of Williams Mullen, PC for nearly ten years. He is also expected to take on human resources responsibilities at the end of 2025.

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The key risks to Accendra Health (ACH) primarily revolve around its financial stability and the inherent challenges of its strategic transition to a focused home-based care business.

1. Financial Instability (Negative Shareholder Equity, Significant Debt, and Limited Cash Runway): Accendra Health faces substantial financial risks, characterized by negative shareholder equity and a significant debt burden. The company has a total shareholder equity of $-429.5 million and a total debt of $2.1 billion, resulting in a debt-to-equity ratio of -492.5%. This indicates a more serious financial situation than simply a high debt level. Furthermore, Accendra Health has less than a year of cash runway based on its current free cash flow, raising concerns about its ability to cover short-term liabilities. Moody's has downgraded the company's Corporate Family Rating to B2 from Ba3 and changed the outlook to negative, reflecting concerns over financial stability following the sale of its former Products & Healthcare Services business along with the Owens & Minor brand.
2. Execution Risks of Strategic Transformation: Accendra Health recently underwent a major strategic shift, rebranding and selling its Products & Healthcare Services business to focus solely on home-based care. While this move is intended to position the company in a growing market, such a significant transformation inherently carries execution risks. These risks include successfully integrating new operations, effectively managing the wind-down of divested segments (including potential "stranded costs" mentioned in previous earnings, though these are expected to reduce), and navigating competitive pressures in the home-based care sector. The company's future performance is highly dependent on the successful realization of its strategic objectives and its ability to address macro and market conditions following this divestiture.

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A clear emerging threat for Accendra Health (ACH), assuming it operates as a traditional healthcare provider or system, is the aggressive expansion of major technology companies into direct healthcare delivery and services. Companies like Amazon, Apple, and Google are leveraging their vast resources, technological expertise (e.g., AI, data analytics, cloud infrastructure), and customer reach to offer innovative health solutions. Examples include Amazon's acquisition of One Medical and expansion of Amazon Clinic and Amazon Pharmacy, Apple's advanced health monitoring features integrated with health records, and Google's ventures into AI-powered diagnostics and health data management. These tech giants threaten traditional players by offering more convenient, integrated, and data-driven healthcare experiences, often with alternative business models that can undercut or outcompete existing services.

Another significant emerging threat comes from the rapid growth of specialized virtual-first care providers and digital health platforms. Companies such as Teladoc Health, Amwell, Hims & Hers, and numerous startups are increasingly offering direct-to-consumer services for specific conditions (e.g., mental health, chronic disease management, urgent care) via telehealth and digital tools. These platforms often provide greater convenience, accessibility, and sometimes lower costs compared to traditional healthcare settings, attracting patients away from established providers like Accendra Health for certain types of care.

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• Overall U.S. Home Healthcare Market: The U.S. home healthcare market was estimated at approximately USD 222.61 billion in 2025 and is projected to reach around USD 692.30 billion by 2035. Another report estimates the market at USD 162.35 billion in 2024, expected to grow to USD 381.40 billion by 2033.
• U.S. Diabetes Care Devices (Homecare Segment): The U.S. diabetes care devices market was valued at USD 19.3 billion in 2024 and is projected to reach USD 61.4 billion by 2034. The homecare segment held a significant share of this market, accounting for 67.34% in 2024.
• U.S. At-home Respiratory Care Services: This market reached approximately USD 16.13 billion in 2025 and is projected to grow to about USD 32.42 billion by 2034.
• U.S. Sleep Apnea Devices (Home Care Settings): The U.S. sleep apnea device market was valued at USD 1.95 billion in 2023 and is anticipated to exceed USD 3.86 billion by 2033. The home care settings/individuals segment is a dominant force in this market. The U.S. home sleep apnea testing devices market was valued at USD 480.1 million in 2025.
• U.S. Ostomy Care and Accessories (Home Care Segment): The U.S. ostomy care and accessories market was valued at USD 4.03 billion in 2025 and is expected to reach USD 6.75 billion by 2035. The home care settings segment held the largest market share in 2023 and 2024.
• U.S. Wound Care (Home Care Segment): The U.S. wound care market was valued at USD 7.5 billion in 2025 and is projected to grow to USD 12.5 billion by 2035. The home care segment is expected to exhibit the highest growth rate.
• U.S. Urology Care Devices (Home Care Segment): The North America urology devices market was estimated at USD 15.6 billion in 2024 and is expected to grow to USD 30.9 billion in 2034. The global urology care devices and platforms market, with North America as a significant shareholder, was valued at USD 45.57 billion in 2024 and is expected to reach USD 98.39 billion by 2033. There is an increasing trend toward home-based urological treatment.
• U.S. Incontinence Care Devices (Home Care Segment): The United States incontinence care devices market is projected at USD 5.57 billion in 2025. The global incontinence care products market was valued at USD 15.02 billion in 2025 and is forecast to reach USD 27.25 billion by 2034. North America accounts for approximately 49% of the global market share.

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1. Strategic Focus on High-Margin Home-Based Care (Patient Direct Segment): Accendra Health's complete divestiture of its former Products & Healthcare Services segment and rebranding allows for a singular focus on its higher-margin Patient Direct business. This segment specializes in chronic care areas, including diabetes, sleep health, wound care, respiratory care, urology, and ostomy. This strategic realignment is anticipated to drive improved and more consistent cash flow and revenue growth by concentrating resources on its most profitable services.
2. Expansion and Optimization of Patient Direct Services: The company aims to grow its Patient Direct segment by leveraging strong performance in key categories such as sleep therapy, ostomy, and urology, which demonstrated decent year-over-year growth in Q3 2025. Accendra Health also identifies substantial market opportunities with millions of prediabetic and undiagnosed sleep apnea patients, indicating a pathway for increased customer acquisition and service expansion within these high-growth areas.
3. Strategic Partnerships and Provider Network Expansion: A significant driver of future revenue is the new preferred provider agreement with Optum, which targets over 100,000 healthcare providers. This partnership is strategically positioned to offset the anticipated loss of the Kaiser contract in 2026, thereby expanding the company's reach and customer base within the home-based care market.
4. Technological Investments and Operational Efficiency: Accendra Health plans to invest in technology to reduce its cost to serve and enhance the overall customer experience. These investments in operational efficiency and improved service delivery are expected to contribute to revenue growth by making the company's services more attractive and cost-effective, which can help boost recurring revenues and support long-term margin expansion.

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Outbound Investments

• Accendra Health completed the sale of its former Products & Healthcare Services business along with the Owens & Minor brand on December 31, 2025.
• In 2024, the company incurred expenses to exit a previously planned acquisition of Rotech Tech.

Capital Expenditures

• Capital expenditures were $49.69 million in 2021, $166.6 million in 2022, $207.9 million in 2023, and $228.2 million in 2024.
• Forecasted capital expenditures are $216.6 million for 2025 and $201.5 million for 2026.
• Capital expenditures have focused on investments in new technology, automation, and analytics capabilities within its medical distribution business, as well as costs associated with a new kidney facility.