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 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.

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 (cyber incident), the impact of the One Big Beautiful Bill Act (OBBBA) and federal government policy changes or shutdowns on our business, including with respect to federal funding and reimbursement rates of Medicare, Medicare Advantage (MA), 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 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), 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 f…

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 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;

Current wording

•external conditions, including those related to general economic, political and global health conditions, including without limitation, the impact of global events and political or governmental volatility, including in the Middle East; the impact of the domestic political environment and related developments on the current healthcare marketplace, our patients and on our business; the impact of infectious diseases or other adverse conditions on our financial condition, the chronic kidney disease 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 global events, natural disasters or evolving trade policies, including tariffs; the impact on our patients and industry of continued increased competition from dialysis providers and others, including new or potential entrants in the dialysis and pre-dialysis marketplace; the impact of new or innovative technologies, drugs, or other treatments, including our ability to successfully implement new technologies, treatments or therapies in our business such as those related to middle molecule toxin clearance; elevated teammate turnover or labor costs; 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 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;

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; our ability to negotiate and maintain contracts with these payors on competitive terms or at all; 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 designsor resulting from negotiations with large commercial payors that we have in the past, and currently are, conducting on a concurrent basis;

Previous 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;

Current wording

•risks arising from laws, regulations or requirements applicable to us or changes thereto, 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;

Previous wording

•our ability to successfully implement our strategies with respect to IKC and VBC initiatives and home based dialysis in the desired time frame and in a complex, dynamic and highly regulated environment;

Current wording

•our ability to successfully implement our strategies with respect to IKC and VBC initiatives that may be impacted by, among other things, changes to the Comprehensive Kidney Care Contracting model and home based dialysis in the desired time frame and in a complex, dynamic and highly regulated environment;

Previous wording

•a reduction in government payment rates under the Medicare End Stage Renal Disease program, state Medicaid or other government-based programs and the impact of the MA benchmark structure;

Current wording

•a reduction in government payment rates under the Medicare End Stage Renal Disease program, state Medicaid or other government-based programs and the impact of the MA benchmark structure and adjustment methodologies;

Previous wording

For a discussion of the risks associated with privacy and security incidents and risks associated with our information systems or those of our third party service providers upon which we rely, see the discussions in Part I Item 1A. "Risk Factors" of our 2024 10-K under the headings, "Privacy and information security laws are complex…" and "Failing to effectively maintain, operate or upgrade our information systems or those of third-party service providers upon which we rely...". These risks include, among other things, business or other operational interruptions that may impact, among other things, our billing or clinical systems; the loss, compromise or corruption of data; systems outages; litigation or regulatory actions under privacy and security laws, all of which could have a material adverse effect on our business, results of operations, financial condition and cash flows, or materially harm our reputation.

Current wording

•our ability to successfully maintain, operate or upgrade our information systems or those of third-party service providers upon which we rely and our ability to successfully adopt or adapt to new technologies, treatments or therapies, including technologies that utilize artificial intelligence;

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 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;

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 thecyber incident, 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

•our ability to attract, retain and motivate teammates, including key leadership personnel, and our ability to manage potential disruptions to our business and operations, including potential work stoppages, operating cost increases or productivity decreases whether due to union organizing activities, legislative or other changes, demand for labor, volatility and uncertainty in the labor market, the current challenging and highly competitive labor market conditions, including due to the ongoing nationwide shortage of skilled clinical personnel, or other reasons;

Current wording

•our ability to attract, retain and motivate teammates, including key leadership personnel, our ability to manage potential disruptions to our business and operations, including potential work stoppages, and our ability to manage operating cost increases or productivity decreases that may be related to political unrest, legislative or other changes, union organizing activities, or volatility and uncertainty in the current challenging and highly competitive labor market that has experienced an ongoing nationwide shortage of skilled clinical personnel, among other things;

Previous wording

•changes in pharmaceutical practice patterns, reimbursement and payment policies and processes, or pharmaceutical pricing, including with respect to oral phosphate binders, among other things;

Current wording

•changes in practice patterns, pricing, or reimbursement and payment policies or processes related to pharmaceuticals, medical equipment or supplies, including with respect to oral phosphate binders, among other things;

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 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;

Current wording

•the variability of our cash flows, including, without limitation, any extended billing or collections cycles that may be due to, among other things, defects or operational issues in our billing systems such as those experienced during thecyber incident, 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

•our goals and disclosures related to environmental, social and governance (ESG) matters, including, among other things, evolving regulatory requirements affecting ESG standards, measurements and reporting requirements; and

Current wording

•our goals and disclosures related to sustainability matters, including, among other things, evolving regulatory requirements affecting environmental, social and governance standards, measurements and reporting requirements; and

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 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.

Current wording

We continue to be impacted by external conditions, including, but not limited to, those related to general economic, political and global health conditions and changing population or demographic trends. These conditions can impact our business in a variety of ways, including, among other things, by affecting our patient census, treatment volumes, revenues, results of operations and operating and other costs. Certain of these impacts could be further intensified by global events such as the ongoing conflicts in the Middle East and Ukraine 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 federal government shutdowns. These conditions are generally outside of our control, cannot reasonably be predicted and are interrelated or have interdependent complex consequences. As a result, the ultimate impact of these conditions on our business over time will depend on a myriad of future developments and is highly uncertain and difficult to predict. 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 2025 10-K.

Previous 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.

Current wording

In the first quarter of 2026, treatment per day volumes were flat compared to the fourth quarter of 2025. Total treatment volumes in the first quarter were ahead of expectations due to, among other things, better than expected patient census that was primarily driven by lower than expected mortality and higher patient transfers partially offset by lower than expected new admissions. Mortality levels over time may be influenced by a number of factors, among other things, the impact of infectious diseases on our patient population and the availability and use of vaccines, treatments and therapies. Changes in these mortality rates, particularly in the ESKD and CKD populations, may in turn impact admission rates, treatment volumes, future revenues and non-acquired growth, among other things, and the magnitude of these cumulative impacts could have a material adverse impact on our results of operations, financial condition and cash flows. For additional detail on these risks, see the discussion in Part I Item 1A. "Risk Factors" of our 2025 10-K.

Previous 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..."

Current wording

Global economic conditions and political and regulatory developments, including, among other things, ongoing 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 lower than expected labor-related costs due to, among other things, productivity improvements and we expect these efficiencies to continue throughout the year. Our industry has also experienced increased union organizing activities. For example, union petitions have been filed at a number of our clinics in California. While we have won some elections, we 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 2025 10-K under the headings, "Our business is labor intensive..." and "Global health conditions, changing population or demographic trends, severe weather events or natural disasters and general economic and political conditions..."

Previous 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.

Current wording

We believe that the aforementioned developments and general economic, political 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

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.

Current wording

The discussion below includes analysis of our financial condition and results of operations for the three months ended March 31, 2026 compared to the three months ended December 31, 2025, and the year-to-date periods for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

Previous wording

(1)Normalized non-acquired treatment growth reflects year over year growth in treatment volume, adjusted to exclude acquisitions and other similar transactions, and further adjusted to normalize for the number and mix of treatment days in a given quarter versus the prior year quarter.

Current wording

(2)Normalized non-acquired treatment growth reflects year over year growth in treatment volume, adjusted to exclude acquisitions and other similar transactions, and further adjusted to normalize for the number and mix of treatment days in a given quarter versus the prior year quarter.

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 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.

Current wording

Our U.S. dialysis operating revenues and expenses are directly driven by treatment volume. The decrease in our U.S. dialysis treatments for the first quarter of 2026 from the fourth quarter of 2025 was primarily driven by a decrease in treatment days, partially offset by increased patient count. The decrease in our U.S. dialysis treatments for the three months ended March 31, 2026 from the three months ended March 31, 2025 was primarily driven by a decline in average treatments per day due to mix of treatments days.

Previous 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.

Current wording

U.S. dialysis average patient service revenue per treatment for the three months ended March 31, 2026 increased compared to the three months ended March 31, 2025 primarily driven by an increase in average reimbursement rates from normal annual increases, including Medicare base rate, and other normal fluctuations.

Previous 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.

Current wording

Patient care costs. U.S. dialysis patient care costs per treatment for the first quarter of 2026 increased from the fourth quarter of 2025 primarily due to increased compensation expense, including increased wage rates, as well as increased insurance costs. These increases were partially offset by decreases in health benefits expense and pharmaceutical costs.

Previous 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.

Current wording

U.S. dialysis patient care costs per treatment for the three months ended March 31, 2026 increased from the three months ended March 31, 2025 primarily due to increased compensation expenses, including increased wage rates, as well as increases in insurance costs and medical supplies expense.

Previous 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.

Current wording

General and administrative expenses. U.S. dialysis general and administrative expenses in the first quarter of 2026 decreased from the fourth quarter of 2025 primarily due to decreased professional fees and health benefits expense, partially offset by increased compensation expenses.

Previous 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.

Current wording

U.S. dialysis general and administrative expenses for the three months ended March 31, 2026 increased from the three months ended March 31, 2025 due to increases in IT-related costs and compensation expenses, including increased wage rates.

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 third quarter of 2025 were relatively flat compared to the second 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 first quarter of 2026 decreased compared to the fourth quarter of 2025 primarily due to higher depreciation expense in the fourth quarter for certain leasehold improvements.

Previous 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.

Current wording

U.S. dialysis depreciation and amortization expenses for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 decreased primarily due to fully depreciated assets.

Previous 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.

Current wording

Equity investment income. U.S. dialysis equity investment income for the first quarter of 2026 decreased compared to the fourth quarter of 2025 due to decreased profitability at certain nonconsolidated dialysis partnerships. Equity investment income for the three months ended March 31, 2026 increased compared to the three months ended March 31, 2025 due to increased profitability at certain nonconsolidated dialysis partnerships.

Previous 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.

Current wording

U.S. dialysis operating income for the first quarter of 2026 decreased compared to the fourth quarter of 2025 as a result of all factors discussed above.

Previous 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.

Current wording

U.S. dialysis operating income for the three months ended March 31, 2026 increased compared to the three months ended March 31, 2025 as a result of all factors discussed above.

Previous wording

Our other operations include ancillary services that are primarily aligned with our core business of providing dialysis services to our network of patients. As of September 30, 2025, these consisted principally of our U.S. IKC business, certain U.S. other ancillary businesses (including our clinical research programs, transplant software business, and venture investment group), and our international operations. In the first quarter of 2025, we reallocated the revenues and costs associated with an internal software product from the U.S. IKC business to the U.S. other ancillary business. Prior periods have been recast to reflect this change.

Current wording

Our other operations include ancillary services that are primarily aligned with our core business of providing dialysis services to our network of patients. As of March 31, 2026, these consisted principally of our U.S. IKC business, certain U.S. other ancillary businesses (including our clinical research programs, transplant software business, and venture investment group), and our international operations.

Previous 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.

Current wording

As of March 31, 2026, DaVita IKC provided integrated care and disease management services to approximately 62,600 patients in risk-based integrated care arrangements and to an additional 6,300 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.

Previous wording

For a discussion of the risks related to IKC and our ancillary services, see the discussion in the risk factors in Part I Item 1A. "Risk Factors" of our 2024 10-K under the headings, "The U.S. integrated kidney care, U.S. other ancillary services and international operations that we operate or invest in now or in the future..."and "If we are not able to successfully implement our strategy with respect to our integrated kidney care and value-based care initiatives..."

Current wording

For a discussion of the risks related to IKC and our ancillary services, see the discussion in the risk factors in Part I Item 1A. "Risk Factors" of our 2025 10-K under the headings, "We invest in strategic and operational initiatives to maintain our business and expand our capabilities in a complex, evolving and highly regulated environment..."and "If we are not able to successfully implement our strategy with respect to our integrated kidney care and value-based care initiatives..."

Previous 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.

Current wording

As of March 31, 2026, our international dialysis business owned or operated 596 outpatient dialysis centers located in 14 countries outside of the United States.

Previous 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.

Current wording

IKC operating loss for the first quarter of 2026 compared to operating income for the fourth quarter of 2025 was primarily driven by a net decrease in shared savings. IKC operating loss for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 decreased, primarily due to a net increase in shared savings.

Previous 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.

Current wording

U.S. other ancillary services operating loss for the first quarter of 2026 remained relatively flat compared to the fourth quarter of 2025. U.S. other ancillary services operating loss for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was impacted by a reduction of the earn-out obligations related to our transplant software business in the first quarter of 2025.

Previous 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.

Current wording

Corporate administrative support expenses for the first quarter of 2026 compared to the fourth quarter of 2025 decreased primarily due to decreased long-term incentive compensation, partially offset by increased professional fees. Corporate administrative support expenses for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 decreased primarily due to decreased professional fees.

Previous wording

(1)Represents our overall weighted average effective interest rate on all debt, including the effect of interest rate caps and amortization of debt discount, premium and deferred financing charges.

Current wording

(1)Represents our overall weighted average effective interest rate on all debt, including the effect of interest rate caps and amortization of debt discount, premium and deferred financing charges as of the dates presented.

Previous wording

(2)For a reconciliation of our effective income tax rate attributable to DaVita Inc., see the "Reconciliations of Non-GAAP measures" section below.

Current wording

(2)For a reconciliation of our effective income tax rate from continuing operations attributable to DaVita Inc., see the "Reconciliations of Non-GAAP measures" section below.

Previous wording

(1)Represents our overall weighted average effective interest rate on all debt, including the effect of interest rate caps and amortization of debt discount, premium and deferred financing charges.

Current wording

(1)Represents our overall weighted average effective interest rate on all debt, including the effect of interest rate caps and amortization of debt discount, premium and deferred financing charges as of the dates presented.

Previous wording

(2)For a reconciliation of our effective income tax rate attributable to DaVita Inc., see the "Reconciliations of Non-GAAP measures" section below.

Current wording

(2)For a reconciliation of our effective income tax rate from continuing operations attributable to DaVita Inc., see the "Reconciliations of Non-GAAP measures" section below.