DAVITA INC.

Previous wording

This Quarterly Report on Form 10-Q, including this Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains statements that are forward-looking statements within the meaning of the federal securities laws and as such are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements could include, among other things, statements about our balance sheet and liquidity, our expenses, revenues, billings and collections, patient census, the impact of the recent cybersecurity incident experienced by the Company, the potential impact of the One Big Beautiful Bill Act (OBBBA) on our business, including with respect to federal funding of Medicaid and other government programs, availability or cost of supplies, including without limitation the impact of evolving trade policies and tariffs and any reduction in clinical and other supplies due to any disruptions experienced by third party vendors, including with respect to our ability to provide home dialysis services, treatment volumes, mix expectation, such as the percentage or number of patients under commercial insurance, including potential impacts to such mix as a result of OBBBA, current macroeconomic, marketplace and labor market conditions, and overall impact on our patients and teammates, as well as other statements regarding our future operations, financial condition and prospects, capital allocation plans, expenses, cost saving initiatives, other strategic initiatives, use of contract labor, government and commercial payment rates, expectations related to value-based care (VBC), integrated kidney care (IKC), Medicare Advantage (MA) plan enrollment and our international operations, expectations regarding increased competition and marketplace changes, including those related to new or potential entrants in the dialysis and pre-dialysis marketplace and the potential impact of innovative technologies, drugs, or other treatments on the dialysis industry, and expectations regarding our share repurchase program. All statements in this report, other than statements of historical fact, are forward-looking statements. Without limiting the foregoing, statements including the words "expect," "intend," "will," "could," "plan," "anticipate," "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on DaVita's current expectations and are based solely on information available as of the date of this report. DaVita undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of changed circumstances, new information, future events or otherwise, except as may be required by law. Actual future events and results could differ materially from any forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncerta…

Excerpt shortened here; the source contains the full paragraph.

Current wording

This Quarterly Report on Form 10-Q, including this Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains statements that are forward-looking statements within the meaning of the federal securities laws and as such are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements could include, among other things, statements about our balance sheet and liquidity, our expenses, revenues, billings and collections, patient census, the impact of thecybersecurity incident experienced by the Company in 2025, the potential impact of the federal government shutdown and the One Big Beautiful Bill Act (OBBBA) on our business, including with respect to federal funding of Medicaid and other government programs, availability or cost of supplies, including without limitation the impact of evolving trade policies and tariffs and any reduction in clinical and other supplies due to any disruptions experienced by third party vendors, including with respect to our ability to provide home dialysis services, treatment volumes, mix expectation, such as the percentage or number of patients under commercial insurance, including potential impacts to such mix as a result of the federal government shutdown or U.S. administration policies, current macroeconomic, marketplace and labor market conditions, and overall impact on our patients and teammates, as well as other statements regarding our future operations, financial condition and prospects, capital allocation plans, expenses, cost saving initiatives, other strategic initiatives, use of contract labor, government and commercial payment rates, expectations related to value-based care (VBC), integrated kidney care (IKC), Medicare Advantage (MA) plan enrollment and our international operations, expectations regarding increased competition and marketplace changes, including those related to new or potential entrants in the dialysis and pre-dialysis marketplace and the potential impact of innovative technologies, drugs, or other treatments on the dialysis industry, and expectations regarding our share repurchase program. All statements in this report, other than statements of historical fact, are forward-looking statements. Without limiting the foregoing, statements including the words "expect," "intend," "will," "could," "plan," "anticipate," "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on DaVita's current expectations and are based solely on information available as of the date of this report. DaVita undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of changed circumstances, new information, future events or otherwise, except as may be required by law. Actual future events and results could differ materially from any forward-looking s…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

•external conditions, including those related to general economic, marketplace and global health conditions, including without limitation, the impact of global events and political or governmental volatility; the impact of the domestic political environment and related developments on the current healthcare marketplace, our patients and on our business; the continuing impact of the COVID-19 pandemic on our financial condition and the chronic kidney disease (CKD) population and our patient population; supply chain challenges and disruptions, including without limitation with respect to certain key services, critical clinical supplies and equipment we obtain from third parties, and including any impacts on our supply chain and cost of supplies as a result of natural disasters or evolving trade policies, including tariffs; the potential impact of new or potential entrants in the dialysis and pre-dialysis marketplace and potential impact of innovative technologies, drugs, or other treatments on our patients and industry; elevated teammate turnover or labor costs; the impact of continued increased competition from dialysis providers and others; and our ability to respond to challenging U.S. and global economic and marketplace conditions, including, among other things, our ability to successfully identify cost saving opportunities;

Current wording

•external conditions, including those related to general economic, marketplace and global health conditions, including without limitation, the impact of global events and political or governmental volatility; the impact of the domestic political environment and related developments on the current healthcare marketplace, our patients and on our business; the continuing impact of infectious diseases on our financial condition and the chronic kidney disease (CKD) population and our patient population; supply chain challenges and disruptions, including without limitation with respect to certain key services, critical clinical supplies and equipment we obtain from third parties, and including any impacts on our supply chain and cost of supplies as a result of natural disasters or evolving trade policies, including tariffs; the potential impact on our patients and industry of new or potential entrants in the dialysis and pre-dialysis marketplace and innovative technologies, drugs, or other treatments, including our ability to successfully implement new technologies or treatments in our business; elevated teammate turnover or labor costs; the impact of continued increased competition from dialysis providers and others; and our ability to respond to challenging U.S. and global economic and marketplace conditions, including, among other things, our ability to successfully identify cost saving opportunities;

Previous wording

•the concentration of profits generated by higher-paying commercial payor plans for which there is continued downward pressure on average realized payment rates; a reduction in the number or percentage of our patients under commercial plans, including, without limitation, as a result of continuing legislative efforts to restrict or prohibit the use and/or availability of charitable premium assistance, or as a result of payors implementing restrictive plan designs;

Current wording

•the concentration of profits generated by higher-paying commercial payor plans for which there is continued downward pressure on average realized payment rates; a reduction in the number or percentage of our patients under commercial plans, including, without limitation, as a result of healthcare, immigration or other policies implemented by the U.S. administration, continuing legislative efforts to restrict or prohibit the use and/or availability of charitable premium assistance, or as a result of payors implementing restrictive plan designs;

Previous wording

•risks arising from potential changes in or new laws, regulations or requirements applicable to us, including, without limitation, OBBBA and those related to trade policy, healthcare, privacy, antitrust matters, and acquisition, merger, joint venture or similar transactions and/or labor matters, and potential impacts of changes in interpretation or enforcement thereof or related litigation impacting, among other things, coverage or reimbursement rates for our services or the number of patients enrolled in or that select higher-paying commercial plans, and the risk that we make incorrect assumptions about how our patients will respond to any such developments;

Current wording

•risks arising from potential changes in or new laws, regulations or requirements applicable to us, including, without limitation, the federal government shutdown, OBBBA and those related to trade policy, healthcare, privacy, antitrust matters, and acquisition, merger, joint venture or similar transactions and/or labor matters, and potential impacts of changes in interpretation or enforcement thereof or related litigation impacting, among other things, coverage or reimbursement rates for our services or the number of patients enrolled in or that select higher-paying commercial plans, and the risk that we make incorrect assumptions about how our patients will respond to any such developments;

Previous wording

•noncompliance by us or our business associates with any privacy or security laws or any security breach by us or a third party, such as the recent cybersecurity incident experienced by the Company, including, among other things, any such non-compliance or breach involving the misappropriation, loss or other unauthorized use or disclosure of confidential information;

Current wording

•noncompliance by us or our business associates with any privacy or security laws or any security breach by us or a third party, such as thecybersecurity incident experienced by the Company in 2025, including, among other things, any such non-compliance or breach involving the misappropriation, loss or other unauthorized use or disclosure of confidential information;

Previous wording

•the variability of our cash flows, including, without limitation, any extended billing or collections cycles including, without limitation, due to defects or operational issues in our billing systems, the impact of the recent cybersecurity incident experienced by the Company or defects or operational issues in the billing systems or services of third parties on which we rely; the risk that we may not be able to generate or access sufficient cash in the future to service our indebtedness or to fund our other liquidity needs;

Current wording

•the variability of our cash flows, including, without limitation, any extended billing or collections cycles including, without limitation, due to defects or operational issues in our billing systems, the impact of thecybersecurity incident experienced by the Company in 2025 or defects or operational issues in the billing systems or services of third parties on which we rely; the risk that we may not be able to generate or access sufficient cash in the future to service our indebtedness or to fund our other liquidity needs;

Previous wording

Developments in external conditions, including those related to general economic, marketplace, environmental and global health conditions, have directly and indirectly impacted the Company and in the future could have a material adverse impact on our patients, teammates, physician partners, suppliers, business, operations, reputation, financial condition, results of operations, share price, cash flows and/or liquidity. Many of these external factors and conditions are interrelated, including, among other things, inflation, interest rate volatility and other economic conditions, labor market conditions, wage pressure, the increased mortality rates of our patients and other ESKD or chronic kidney disease (CKD) patients, supply chain challenges and the potential impact and application of innovative technologies, drugs or other treatments. Certain of these impacts could be further intensified by concurrent global events that have continued to drive sociopolitical, geopolitical and economic uncertainty; by severe weather events and other natural disasters; and by the impact of new policies implemented by the U.S. administration. For additional discussion of general economic, marketplace and global health conditions that could impact our business, see Part I Item 1. "Business" and Part I Item 1A. "Risk Factors" in our 2024 10-K.

Current wording

Developments in external conditions, including those related to general economic, marketplace, environmental and global health conditions, have directly and indirectly impacted the Company and in the future could have a material adverse impact on our patients, teammates, physician partners, suppliers, business, operations, reputation, financial condition, results of operations, share price, cash flows and/or liquidity. Many of these external factors and conditions are interrelated, including, among other things, inflation, interest rate volatility and other economic conditions, labor market conditions, wage pressures, the increased mortality rates of our patients and other ESKD or chronic kidney disease (CKD) patients, supply chain challenges and the potential impact and application of innovative technologies, drugs or other treatments. Certain of these impacts could be further intensified by: concurrent global events that have continued to drive sociopolitical, geopolitical and economic uncertainty; severe weather events and other natural disasters; the impact of healthcare, immigration, trade and other policies implemented by the U.S. administration; and the impact of the ongoing federal government shutdown as further described below. For additional discussion of general economic, marketplace and global health conditions that could impact our business, see Part I Item 1. "Business" and Part I Item 1A. "Risk Factors" in our 2024 10-K.

Previous wording

In the second quarter of 2025, treatment per day volumes increased compared to the first quarter. For the full year to date, we have experienced a negative impact on revenue and treatment volume due to, among other things, the cybersecurity incident described below, an elevated number of missed treatments and a particularly severe flu season. Admission rates, treatment volumes, future revenues and non-acquired growth, among other things, could continue to be negatively impacted over time to the extent that the ESKD and CKD populations experience sustained elevated mortality levels. These mortality levels could be influenced by, among other things, the impact of infectious diseases on our patient population and the availability and use of vaccines, treatments and therapies as described in Part I Item 1A. "Risk Factors" of our 2024 10-K, and the magnitude of these cumulative impacts could have a material adverse impact on our results of operations, financial condition and cash flows.

Current wording

In the third quarter of 2025, treatment per day volumes slightly decreased compared to the second quarter. For the full year to date, we have experienced a negative impact on revenue and treatment volume due to, among other things, the cybersecurity incident described below, an elevated number of missed treatments and a particularly severe flu season. In addition, admission rates, treatment volumes, future revenues and non-acquired growth, among other things, could continue to be negatively impacted over time to the extent that the ESKD and CKD populations experience sustained elevated mortality levels. These mortality levels could be influenced by, among other things, the impact of infectious diseases on our patient population and the availability and use of vaccines, treatments and therapies as described in Part I Item 1A. "Risk Factors" of our 2024 10-K, and the magnitude of these cumulative impacts could have a material adverse impact on our results of operations, financial condition and cash flows.

Previous wording

Global economic conditions and political and regulatory developments, including, among other things, inflationary pressures and new U.S. administration policies have increased, and may continue to increase, our expenses. We expect certain increased staffing and labor costs to continue, due to, among other factors, the continuation of inflationary conditions. The cumulative impact of any increased staffing, labor, and supply costs and other expenses could be material. However, during the quarter we saw improvements in certain labor related costs such as training and productivity, and we expect to continue to see improvements in labor-related costs due to, among other things, reduced turnover. Our industry has also experienced increased union organizing activities. For example, union petitions have been filed in ten of our clinics in California and nine of these petitions are in different stages of the voting process and have been subject to legal challenges. For additional details on the risks related to rising labor costs and union organizing activities, see the discussion in Part I Item 1A. "Risk Factors" of our 2024 10-K under the headings, "Our business is labor intensive..." and "External conditions, including those related to general economic, marketplace and global health conditions..."

Current wording

Global economic conditions and political and regulatory developments, including, among other things, inflationary pressures and U.S. administration policies have increased, and may continue to increase, our expenses. For example, staffing and labor costs have increased during the year, due to, among other factors, the continuation of inflationary conditions. While the cumulative impact of any increased staffing, labor, and supply costs and other expenses could be material, we have seen improvements in certain labor related costs such as training and productivity, and we expect to continue to see improvements in labor-related costs due to, among other things, reduced turnover. Our industry has also experienced increased union organizing activities. For example, union petitions have been filed in ten of our clinics in California and nine of these petitions are in different stages of the voting process and have been subject to legal challenges. For additional details on the risks related to rising labor costs and union organizing activities, see the discussion in Part I Item 1A. "Risk Factors" of our 2024 10-K under the headings, "Our business is labor intensive..." and "External conditions, including those related to general economic, marketplace and global health conditions..."

Previous wording

We believe that the aforementioned recent developments and general economic, marketplace and global health conditions will continue to impact the Company in the future. Their ultimate impact depends on future developments that are highly uncertain and difficult to predict.

Current wording

We believe that the aforementioned developments and general economic, marketplace and global health conditions will continue to impact the Company in the future. Their ultimate impact depends on future developments that are highly uncertain and difficult to predict.

Previous wording

OBBBA did not address the enhanced premium tax credits for individuals who purchase health insurance through the ACA exchanges. As a result, these enhanced premium tax credits, which were initially established under the American Rescue Plan and Inflation Reduction Act of 2022 are set to expire at the end of 2025. The expiration of these enhanced premium tax credits and other changes to the ACA exchanges likely would reduce enrollment in health insurance on marketplaces developed under the ACA and may lead to a decrease in the number of patients with higher-paying commercial health insurance. In the event such a decrease occurs, it would have an adverse impact on our business, results of operations, financial condition and cash flows.

Current wording

The current government shutdown also introduces significant uncertainty regarding the legislative calendar and the potential for Congress to address the extension of the enhanced premium tax credits for individuals who purchase health insurance through health insurance exchanges established under the Patient Protection and Affordable Care Act and Health Care Reconciliation Act of 2010, as amended (collectively, the ACA) that are set to expire at the end of 2025. Failure to extend these credits would likely reduce enrollment in health insurance on marketplaces developed under the ACA and may lead to a decrease in the number of our patients with commercial health insurance. In the event such a decrease occurs, it would have an adverse impact on our business, results of operations, financial condition, and cash flows. For additional information regarding the impact of the potential risks to us related to federal funding of government programs, the expiration of enhanced premium tax credits, and related regulatory developments, as well as information on the potential risks related to any decrease in the number of our patients who are covered by commercial insurance, see Part I Item 1. "Business—Government Regulation" and Part I Item 1A. "Risk Factors" of our 2024 Form 10-K.

Previous wording

We are aware of the exfiltration of certain data as part of the cybersecurity incident, including certain Personally Identifiable Information (PII) and/or Protected Health Information (PHI) from our DaVita Laboratory line of business. We started the notice process on August 1, 2025, giving notice to applicable regulators, and potentially involved patients, former patients and the estates of former patients as well as public notice, including providing information on https://davitasystemsoutage.com. The contents of this website are not incorporated by reference into this report.

Current wording

We are aware of the exfiltration of certain data as part of the cybersecurity incident, including certain Personally Identifiable Information and/or Protected Health Information from our DaVita Laboratory line of business. We started the notice process on August 1, 2025 and completed the process on August 15, 2025, giving notice to applicable regulators, and potentially involved patients, former patients and the estates of former patients as well as public notice.

Previous wording

The cybersecurity incident had an adverse impact on our billing and revenue collection cycles as well as our patient census. We expect these impacts will in turn have an adverse impact on our revenue per treatment and treatment volumes for the full year. Based on information currently available, we believe that this incident has not had, and is not expected to have, a material adverse impact on our business, results of operations or financial condition. However, we do not yet know the full impact of thecybersecurity incident, including how much of the financial impact will be covered by insurance.

Current wording

The cybersecurity incident had an adverse impact on our billing and revenue collection cycles as well as our patient census. These impacts have had, and we expect will continue to have, an adverse impact on our revenue per treatment and treatment volumes for the full year. We do not yet know the full impact of thecybersecurity incident, including how much of the financial impact will be covered by insurance.

Previous wording

The discussion below includes analysis of our financial condition and results of operations for the three months ended June 30, 2025 compared to the three months ended March 31, 2025, and the year-to-date periods for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Current wording

The discussion below includes analysis of our financial condition and results of operations for the three months ended September 30, 2025 compared to the three months ended June 30, 2025, and the year-to-date periods for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Previous wording

Our U.S. dialysis operating revenues and expenses are directly driven by treatment volume. The increase in our U.S. dialysis treatments for the second quarter of 2025 from the first quarter of 2025 was primarily driven by an increase in treatment days. The decrease in our U.S. dialysis treatments for the six months ended June 30, 2025 from the six months ended June 30, 2024 was primarily driven by a decrease in average treatments per day due to higher mortality and missed treatments from a more severe flu season, as well as fewer treatment days.

Current wording

Our U.S. dialysis operating revenues and expenses are directly driven by treatment volume. The increase in our U.S. dialysis treatments for the third quarter of 2025 from the second quarter of 2025 was primarily driven by an increase in treatment days. The decrease in our U.S. dialysis treatments for the nine months ended September 30, 2025 from the nine months ended September 30, 2024 was primarily driven by a decrease in average treatments per day due to higher mortality and missed treatments from a more severe flu season, as well as fewer treatment days.

Previous wording

U.S. dialysis average patient service revenue per treatment for the second quarter of 2025 compared to the first quarter of 2025 increased primarily due to normal seasonal improvements including patients meeting their co-insurance and deductibles, and other normal fluctuations. These increases were partially offset by a decline in volume of phosphate binders.

Current wording

U.S. dialysis average patient service revenue per treatment for the third quarter of 2025 compared to the second quarter of 2025 increased primarily due to an increase in average reimbursement rates, and other normal fluctuations, as well as an increase in volume of phosphate binders. These increases were partially offset by changes in payor mix.

Previous wording

U.S. dialysis average patient service revenue per treatment for the six months ended June 30, 2025 increased compared to the six months ended June 30, 2024 primarily driven by the incorporation of phosphate binders into the ESRD Prospective Payment System (ESRD PPS) bundle, as further described below, Medicare base rate and other annual rate increases, revenue cycle improvements, and other normal fluctuations.

Current wording

U.S. dialysis average patient service revenue per treatment for the nine months ended September 30, 2025 increased compared to the nine months ended September 30, 2024 primarily driven by the incorporation of phosphate binders into the ESRD Prospective Payment System (ESRD PPS) bundle, as further described below, Medicare base rate and other annual rate increases, as well as other normal fluctuations.

Previous wording

On January 1, 2025, phosphate binders, a drug class taken orally by many ESKD patients to reduce absorption of dietary phosphate, were incorporated into the ESRD PPS bundled payment. Phosphate binders are not included in the ESRD PPS base rate at this time and are reimbursed through a Transitional Drug Add-on Payment Adjustment (TDAPA). During the TDAPA period, Medicare payments for phosphate binders are based on the average sales price increased by a fixed monthly amount of $36.41 for incremental operational costs. The TDAPA period is expected to continue for a period of at least two years.

Current wording

On January 1, 2025, phosphate binders, a drug class taken orally by many ESKD patients to reduce absorption of dietary phosphate, were incorporated into the ESRD PPS bundled payment. Phosphate binders are not included in the ESRD PPS base rate at this time and are reimbursed through a Transitional Drug Add-on Payment Adjustment (TDAPA). During the TDAPA period, Medicare payments for phosphate binders are based on the average sales price increased by a fixed monthly amount of $36.41 for incremental operational costs. The TDAPA period is expected to be in place for a period of at least two years.

Previous wording

In June 2025, Centers for Medicare & Medicaid Services (CMS) issued a proposed rule to update the Medicare ESRD PPS payment rate and policies for calendar year 2026. CMS estimates that the overall impact of the proposed rule will increase ESRD freestanding facilities’ average reimbursement by 1.9% in 2026.

Current wording

In June 2025, CMS issued a proposed rule to update the Medicare ESRD PPS payment rate and policies for calendar year 2026. CMS estimates that the overall impact of the proposed rule will increase ESRD freestanding facilities’ average reimbursement by 1.9% in 2026.

Previous wording

Charges impacting operating income - Cybersecurity incident-related charges. During the second quarter of 2025, we experienced a cybersecurity incident that impacted certain elements of our network and resulted in a temporary disruption of our operations, as described above. As a result, during the second quarter of 2025 we incurred charges of approximately $13.5 million, which increased our patient care costs by $1.0 million and general and administrative expenses by $12.5 million to remediate the incident and restore systems with the assistance of third-party cybersecurity professionals. These costs do not include the impact related to business interruption on our results.

Current wording

Cybersecurity incident-related charges. During the second quarter of 2025, we experienced a cybersecurity incident that impacted certain elements of our network and resulted in a temporary disruption of our operations, as described above. As a result of our efforts to remediate the incident and restore systems with the assistance of third-party cybersecurity professionals, we incurred general and administrative charges of approximately $11.7 million during the third quarter of 2025. During the nine months ended September 30, 2025, we incurred patient care costs of approximately $1.0 million and general and administrative expenses of approximately $24.2 million related to the incident. These costs do not include the impact related to business interruption on our results.

Previous wording

Patient care costs. U.S. dialysis patient care costs per treatment for the second quarter of 2025 decreased from the first quarter of 2025 primarily due to decreased compensation expense, including increased productivity levels at our dialysis centers and seasonal decreases in payroll taxes, as well as decreases in pharmaceutical costs, principally due to volume of phosphate binders, and travel costs. These decreases were partially offset by increases in health benefit expense and insurance costs.

Current wording

Patient care costs. U.S. dialysis patient care costs per treatment for the third quarter of 2025 increased from the second quarter of 2025 primarily due to increased compensation expense, including increased wage rates, as well as increases in pharmaceutical costs, principally due to volume of phosphate binders, and health benefit expense. These increases were partially offset by decreases in insurance costs.

Previous wording

U.S. dialysis patient care costs per treatment for the six months ended June 30, 2025 increased from the six months ended June 30, 2024 primarily due to increases in pharmaceutical costs, principally due to the administration of phosphate binders, as described above, and compensation expenses, including increased wage rates. Patient care costs per treatment were also affected by increases in other direct operating expenses associated with our dialysis centers, health benefit expense and medical supplies expense.

Current wording

U.S. dialysis patient care costs per treatment for the nine months ended September 30, 2025 increased from the nine months ended September 30, 2024 primarily due to increases in pharmaceutical costs, principally due to the administration of phosphate binders, as described above, and compensation expenses, including increased wage rates, as well as increases in medical supplies expense.

Previous wording

General and administrative expenses. U.S. dialysis general and administrative expenses in the second quarter of 2025 increased from the first quarter of 2025 primarily due to costs related to the cybersecurity incident, as described above, a gain recognized in the first quarter of 2025 and increased compensation expense, including increased wage rates.

Current wording

General and administrative expenses. U.S. dialysis general and administrative expenses in the third quarter of 2025 increased from the second quarter of 2025 primarily due to increased IT-related costs.

Previous wording

U.S. dialysis general and administrative expenses for the six months ended June 30, 2025 increased from the six months ended June 30, 2024 due to increases in compensation expenses, including increased wage rates and headcount, IT-related costs, and costs related to the cybersecurity incident, as described above. These increases were partially offset by decreased center closure costs.

Current wording

U.S. dialysis general and administrative expenses for the nine months ended September 30, 2025 increased from the nine months ended September 30, 2024 due to increases in IT-related costs and increases in costs related to the cybersecurity incident, as described above, as well as increases in compensation expenses, including increased wage rates and headcount. These increases were partially offset by decreased center closure costs.

Previous wording

Depreciation and amortization. Depreciation and amortization expense is directly impacted by the number of our dialysis centers and the information technology that we develop and acquire. U.S. dialysis depreciation and amortization expenses in the second quarter of 2025 were flat compared to the first quarter of 2025.

Current wording

Depreciation and amortization. Depreciation and amortization expense is directly impacted by the number of our dialysis centers and the information technology that we develop and acquire. U.S. dialysis depreciation and amortization expenses in the third quarter of 2025 were relatively flat compared to the second quarter of 2025.

Previous wording

U.S. dialysis depreciation and amortization expenses for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 decreased primarily due to decreases in corporate IT projects, depreciation related to leasehold improvements due to the reduction in number of centers operated, and accelerated depreciation related to center closures. These decreases were partially offset by an increase in dialysis equipment expenses.

Current wording

U.S. dialysis depreciation and amortization expenses for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 decreased primarily due to decreases in capital IT projects as well as decreases in accelerated depreciation related to center closures.

Previous wording

Equity investment income. U.S. dialysis equity investment income for the second quarter of 2025 compared to the first quarter of 2025 increased due to increased profitability at certain nonconsolidated dialysis partnerships. Equity investment income for the six months ended June 30, 2025 was flat compared to the six months ended June 30, 2024.

Current wording

Equity investment income. U.S. dialysis equity investment income for the third quarter of 2025 compared to the second quarter of 2025 and for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 increased due to increased profitability at certain nonconsolidated dialysis partnerships.

Previous wording

U.S. dialysis operating income for the second quarter of 2025 compared to the first quarter of 2025 was negatively impacted by the cybersecurity incident-related charges described above. U.S. dialysis operating income and adjusted operating income for the second quarter of 2025 increased compared to the first quarter of 2025 as a result of all factors discussed above.

Current wording

U.S. dialysis operating income for the third quarter of 2025 and the second quarter of 2025 were negatively impacted by the cybersecurity incident-related charges, as described above. U.S. dialysis operating income and adjusted operating income for the third quarter of 2025 increased compared to the second quarter of 2025 as a result of all factors discussed above.

Previous wording

U.S. dialysis operating income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was negatively impacted by the cybersecurity incident-related charges in the second quarter of 2025 and gain on changes in ownership interests in the first quarter of 2024, each described above. U.S. dialysis operating income and adjusted operating income for the six months ended June 30, 2025 decreased compared to the six months ended June 30, 2024 as a result of the factors discussed above.

Current wording

U.S. dialysis operating income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was negatively impacted by the cybersecurity incident-related charges in 2025 and gain on changes in ownership interests in the first quarter of 2024, each described above. U.S. dialysis operating income and adjusted operating income for the nine months ended September 30, 2025 decreased compared to the nine months ended September 30, 2024 as a result of all factors discussed above.

Previous wording

As of June 30, 2025, DaVita IKC provided integrated care and disease management services to approximately 64,400 patients in risk-based integrated care arrangements and to an additional 9,300 patients in other integrated care arrangements. We also expect to add additional service offerings to our business and pursue additional strategic initiatives in the future as circumstances warrant, which could include, among other things, healthcare services not related to kidney disease.

Current wording

As of September 30, 2025, DaVita IKC provided integrated care and disease management services to approximately 64,900 patients in risk-based integrated care arrangements and to an additional 9,400 patients in other integrated care arrangements. We also expect to add additional service offerings to our business and pursue additional strategic initiatives in the future as circumstances warrant, which could include, among other things, healthcare services not related to kidney disease.

Previous wording

As of June 30, 2025, our international dialysis operations provided dialysis and administrative services through a total of 513 outpatient dialysis centers located in 13 countries outside of the United States.

Current wording

As of September 30, 2025, our international dialysis operations provided dialysis and administrative services through a total of 585 outpatient dialysis centers located in 14 countries outside of the United States.

Previous wording

(1)The reported operating income for the six months ended June 30, 2024 includes foreign currency gains embedded in equity method income recognized from our Asia Pacific (APAC) joint venture, which was consolidated in the fourth quarter of 2024, of approximately $1.9 million.

Current wording

(1)The reported operating income for the nine months ended September 30, 2024 includes foreign currency losses embedded in equity method income recognized from our Asia Pacific (APAC) joint venture, which was consolidated in the fourth quarter of 2024, of approximately $1.8 million.

Previous wording

IKC operating income for the second quarter of 2025 compared to IKC operating loss for the first quarter of 2025 was primarily driven by a net increase in shared savings and decreased medical claims expense related to our special needs plans. IKC operating loss for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 decreased, primarily due to a net increase in shared savings and increased revenues related to our special needs plans, partially offset by decreased revenues related to the divestiture of our physician services business in 2024. IKC operating loss was also impacted by decreased medical claims expense related to our special needs plans and operating expenses related to the divestiture of our physician services business in 2024, partially offset by increased professional fees.

Current wording

IKC operating loss for the third quarter of 2025 compared to IKC operating income for the second quarter of 2025 was primarily driven by a net decrease in shared savings and decreased revenues related to our special needs plans, partially offset by decreased medical claims expense related to our special needs plans. IKC operating loss for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 decreased, primarily due to a net increase in shared savings and increased revenues related to our special needs plans, partially offset by decreased revenues related to the divestiture of our physician services business in 2024. IKC operating loss was also impacted by decreased operating expenses related to the divestiture of our physician services business in 2024 and medical claims expense related to our special needs plans, partially offset by increased professional fees.

Previous wording

U.S. other ancillary services operating loss for the second quarter of 2025 compared to the first quarter of 2025 and for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was impacted by a reduction of the earn-out obligations related to our transplant software business in the first quarter of 2025.

Current wording

U.S. other ancillary services operating loss for the third quarter of 2025 remained relatively flat compared to the second quarter of 2025. U.S. other ancillary services operating loss for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was impacted by a reduction of the earn-out obligations related to our transplant software business in the first quarter of 2025 and decreased compensation expenses.

Previous wording

International operating income for the second quarter of 2025 compared to the first quarter of 2025 was impacted by favorable changes in the fair value of contingent consideration associated with a prior acquisition and non-acquired treatment growth. International operating income for the six months ended June 30, 2025 increased compared to the six months ended June 30, 2024 primarily driven by acquired and non-acquired treatment growth and favorable changes related to the fair value of contingent consideration associated with a prior acquisition, partially offset by decreased equity income resulting from fluctuations in foreign currency at our APAC joint venture, which was consolidated in the fourth quarter of 2024.

Current wording

International operating income for the third quarter of 2025 compared to the second quarter of 2025 was impacted by favorable changes in the fair value of contingent consideration in the second quarter of 2025 associated with a prior acquisition. International operating income for the nine months ended September 30, 2025 increased compared to the nine months ended September 30, 2024 primarily driven by non-acquired and acquired treatment growth, and favorable changes related to the fair value of contingent consideration associated with a prior acquisition.

Previous wording

Corporate administrative support expenses for the second quarter of 2025 compared to the first quarter of 2025 and for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 increased primarily due to increased long-term incentive compensation and professional fees.

Current wording

Corporate administrative support expenses for the third quarter of 2025 compared to the second quarter of 2025 decreased primarily due to a decline in professional fees. Corporate administrative support expenses for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 increased primarily due to increased long-term incentive compensation, partially offset by decreased professional fees.

Previous wording

Debt expense for the second quarter of 2025 compared to the first quarter of 2025 increased due to an increase in our long-term debt balance primarily related to the second quarter 2025 issuance of the 6.75% senior notes due 2033 (the 6.75% Senior Notes) and an increase in our weighted average effective interest rate. Debt expense for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 increased primarily due to an increase in our weighted average effective interest rate principally related to the expiration of our 2019 interest rate cap agreements on June 30, 2024, which had lower rates than our currently effective interest rate caps. This change was also driven by an increase in our long-term debt balance primarily related to the second quarter 2025 issuance of the 6.75% Senior Notes and third quarter 2024 issuance of 6.875% senior notes due 2032.

Current wording

Debt expense for the third quarter of 2025 compared to the second quarter of 2025 increased due to an increase in our weighted average long-term debt balance related to the May 23, 2025 issuance of the 6.75% senior notes due 2033 (the 6.75% Senior Notes), partially offset by decreased borrowing activity on our revolving line of credit during the third quarter. Debt expense for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 increased primarily due to an increase in our weighted average effective interest rate principally related to the expiration of our 2019 interest rate cap agreements on June 30, 2024, which had lower rates than our currently effective interest rate caps. This change was also driven by a net increase in our weighted average long-term debt balance primarily related to the third quarter 2024 issuance of 6.875% senior notes due 2032 and the second quarter 2025 issuance of the 6.75% Senior Notes, partially offset by regularly scheduled principal payments on our senior secured credit facilities.

Previous wording

Other loss for the second quarter of 2025 increased compared to the first quarter of 2025 primarily due to increased equity investment losses at Mozarc Medical Holding LLC (Mozarc) and decreased interest income, partially offset by decreased net losses on other investments. Other loss for the six months ended June 30, 2025 remained relatively flat compared to the six months ended June 30, 2024, primarily driven by increased net losses on investments, offset by decreased equity investment losses at Mozarc and increased interest income.

Current wording

Other loss for the third quarter of 2025 increased compared to the second quarter of 2025 primarily due to increased equity investment losses at Mozarc Medical Holding LLC (Mozarc) which included impairment and restructuring charges of $25.9 million. Other loss for the nine months ended September 30, 2025 increased compared to the nine months ended September 30, 2024, primarily driven by increased equity investment losses at Mozarc as discussed above and losses on foreign currency translation.

Previous wording

The effective income tax rate and the effective income tax rate attributable to DaVita Inc. increased for the second quarter of 2025 compared to the first quarter of 2025 primarily due to a write down of a 2014 tax refund claim and benefits recognized in the first quarter of 2025 from stock-based compensation, partially offset by tax benefits related to renewable energy credits purchased in the second quarter.

Current wording

The effective income tax rate and the effective income tax rate attributable to DaVita Inc. decreased for the third quarter of 2025 compared to the second quarter of 2025 primarily due to a write down of a 2014 tax refund claim recognized in the second quarter of 2025.

Previous wording

The effective income tax rate and the effective income tax rate attributable to DaVita Inc. for the six months ended June 30, 2025 increased compared to the six months ended June 30, 2024 primarily due to a write down of a 2014 tax refund claim and a decrease in tax benefits recognized in 2025 related to stock-based compensation and a benefit recognized in 2024 related to a non-taxable non-cash consolidation gain.

Current wording

The effective income tax rate and the effective income tax rate attributable to DaVita Inc. for the nine months ended September 30, 2025 increased compared to the nine months ended September 30, 2024 primarily due to a write down of a 2014 tax refund claim recognized in 2025, a decrease in tax benefits related to stock-based compensation in 2025, and a benefit recognized in 2024 related to a non-taxable non-cash consolidation gain.