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 (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.

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 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 from any forward-looking statements due to n…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

•our reliance on significant suppliers, service providers and other third party vendors to provide key support to our business operations and enable our provision of services to patients, including, among others, suppliers of certain pharmaceuticals, administrative or other services or critical clinical products; and risks resulting from a closure, reduction or other disruption in the services or products provided to us by such suppliers, service providers and third party vendors;

Current wording

•our reliance on significant suppliers, service providers and other third party vendors to provide key support to our business operations and enable our provision of services to patients, including, among others, suppliers of certain pharmaceuticals, administrative or other services or critical clinical products; and risks resulting from a closure, reduction, disruption or transition in the services or products provided to us by such suppliers, service providers and third party vendors, which may, among other things, increase our costs or expenses;

Previous wording

•the other risk factors, trends and uncertainties set forth in our Annual Report on Form 10-K for the year ended December 31, 2025 (2025 10-K), and the risks and uncertainties discussed in any subsequent reports that we file or furnish with the Securities and Exchange Commission (SEC) from time to time.

Current wording

•the other risk factors, trends and uncertainties set forth in our Annual Report on Form 10-K for the year ended December 31, 2025 (2025 10-K) and Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, and the risks and uncertainties discussed in any subsequent reports that we file or furnish with the Securities and Exchange Commission (SEC) from time to time.

Previous wording

We assess our revenue and operating performance for our U.S. dialysis business based upon several principal metrics including, among others, treatment volume, revenue per treatment and patient care costs. Each of these metrics may be impacted by a number of factors that change from period to period and over time. For example, treatment volumes may be impacted by, among other things, mortality levels, missed treatment rates and admission rates. Revenue per treatment may be impacted by, among other things, rate changes, mix of patients with commercial plans and government programs as primary payor, timing of collections and seasonal factors such as patients meeting health plan co-insurance and deductibles. Patient care costs may be impacted by, among other things, labor market conditions and cost trends in pharmaceuticals and other medical supplies. We have set forth a discussion of such factors below, and we believe that information related to changes in these metrics from period to period allows investors to assess the performance of the business.

Current wording

We assess our revenue and operating performance for our U.S. dialysis business based upon several principal metrics including, among others, treatment volume, revenue per treatment and patient care costs. Each of these metrics may be impacted by a number of factors that change from period to period and over time. For example, treatment volumes may be impacted by, among other things, mortality levels, missed treatment rates and admission rates. Revenue per treatment may be impacted by, among other things, rate changes, mix of patients with commercial plans and government programs as primary payor, timing of collections and seasonal factors such as patients meeting health plan co-insurance and deductibles. Patient care costs may be impacted by, among other things, labor market conditions and cost trends in pharmaceuticals and other medical supplies. We have set forth a discussion of certain of such factors below, and we believe that information related to changes in these metrics from period to period allows investors to assess the performance of the business.

Previous 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.

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; and the impact of healthcare, immigration, trade and other policies implemented by federal, state and local governments. 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 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.

Current wording

In the second quarter of 2026, treatment per day volumes increased compared to the second quarter of 2025. Total treatment volumes in the second quarter were slightly ahead of expectations due to, among other things, better than expected patient census that was primarily driven by lower than expected mortality partially offset by lower than expected incoming patient transfers and higher than expected missed treatments. 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. For example, emerging treatments in the United States that clear middle molecules from the blood may, among other things, reduce mortality as compared to standard dialysis treatments. Two current treatment pathways that provide middle molecule clearance are expanded hemodialysis (“expanded HD”) and hemodiafiltration (“HDF”). We will work to expand patient access to these therapies, as may be prescribed by their physician. We expect to begin offering expanded HD broadly across our network in the coming quarters.

Previous 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..."

Current wording

Global economic conditions and political and regulatory developments, including, among other things, ongoing inflationary pressures and U.S., state and local administration policies and actions have increased, and may continue to increase, our expenses and may have an impact on our revenue per treatment. For example, the decision to let enhanced premium tax credits expire at the end of 2025 has had an adverse impact on enrollment in the Affordable Care Act exchanges and our commercial mix, which in turn adversely impacts our revenue per treatment, among other things. These global economic conditions and political and regulatory developments also continue to exert pressure on our staffing and labor costs, which have increased year over 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 experienced 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. We have had different results with elections and are in different stages with elections and 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

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.

Current wording

The discussion below includes analysis of our financial condition and results of operations for the three months ended June 30, 2026 compared to the three months ended March 31, 2026, and the year-to-date periods for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

Previous 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.

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 second quarter of 2026 from the first quarter of 2026 was primarily driven by an increase in treatment days and increased patient count. The increase in our U.S. dialysis treatments for the six months ended June 30, 2026 from the six months ended June 30, 2025 was primarily driven by an increase in patient count.

Previous wording

U.S. dialysis average patient service revenue per treatment for the first quarter of 2026 compared to the fourth quarter of 2025 decreased driven by a seasonal decline from co-insurance and deductibles and other normal fluctuations, partially offset by increases in average reimbursement rates, including Medicare base rate and other annual rate increases.

Current wording

U.S. dialysis average patient service revenue per treatment for the second quarter of 2026 compared to the first quarter of 2026 decreased driven by changes in payor mix and other normal fluctuations, partially offset by seasonal improvements including patients meeting their co-insurance and deductibles, and an increase in average rates.

Previous 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.

Current wording

U.S. dialysis average patient service revenue per treatment for the six months ended June 30, 2026 increased compared to the six months ended June 30, 2025 primarily driven by Medicare base rate and other annual rate increases, as well as other normal fluctuations, partially offset by changes in payor mix.

Previous 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.

Current wording

U.S. dialysis patient care costs per treatment for the six months ended June 30, 2026 increased from the six months ended June 30, 2025 primarily due to increased compensation expenses, including increased wage rates, as well as increases in insurance costs and health benefits expense.

Previous 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.

Current wording

General and administrative expenses. U.S. dialysis general and administrative expenses in the second quarter of 2026 increased from the first quarter of 2026 primarily due to increased professional fees.

Previous 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.

Current wording

U.S. dialysis general and administrative expenses for the six months ended June 30, 2026 increased from the six months ended June 30, 2025 due to increases in IT-related costs and compensation expenses, including increased wage rates, partially offset by costs related to the cybersecurity incident, as described above.

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 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.

Current wording

Depreciation and amortization. U.S. dialysis depreciation and amortization expenses in the second quarter of 2026 decreased compared to the first quarter of 2026 primarily due to lower depreciation expense in the second quarter for certain leasehold improvements and fully depreciated assets.

Previous 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.

Current wording

U.S. dialysis depreciation and amortization expenses for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 decreased primarily due to fully depreciated assets.

Previous 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.

Current wording

Equity investment income. U.S. dialysis equity investment income for the second quarter of 2026 was flat compared to the first quarter of 2026. Equity investment income for the six months ended June 30, 2026 increased compared to the six months ended June 30, 2025 due to increased profitability at certain nonconsolidated dialysis partnerships.

Previous 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.

Current wording

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

Previous 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.

Current wording

As of June 30, 2026, DaVita IKC provided integrated care and disease management services to approximately 64,900 patients in risk-based integrated care arrangements and to an additional 5,700 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 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..."

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 heading, "We invest in strategic and operational initiatives to maintain our business and expand our capabilities in a complex, evolving and highly regulated environment..."

Previous 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.

Current wording

As of June 30, 2026, our international dialysis business owned or operated 595 outpatient dialysis centers located in 14 countries outside of the United States.

Previous 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.

Current wording

IKC operating income for the second quarter of 2026 compared to operating loss for the first quarter of 2026 was primarily driven by a net increase in shared savings. IKC operating income for the six months ended June 30, 2026 compared to operating loss for the six months ended June 30, 2025 was impacted by a net increase in shared savings, partially offset by decreased revenues from our special needs plans.

Previous 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.

Current wording

U.S. other ancillary services operating loss for the second quarter of 2026 remained relatively flat compared to the first quarter of 2026. U.S. other ancillary services operating loss for the six months ended June 30, 2026 increased compared to the six months ended June 30, 2025 primarily due to 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 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.

Current wording

Corporate administrative support expenses for the second quarter of 2026 compared to the first quarter of 2026 decreased primarily due to decreased professional fees. Corporate administrative support expenses for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 decreased primarily due to decreased professional fees and long-term incentive compensation.

Previous 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.

Current wording

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

Previous 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.

Current wording

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

Previous wording

Debt expense for the first quarter of 2026 compared to the fourth quarter of 2025 decreased due to decreased weighted average effective interest rates, partially offset by increased borrowing activity on our revolving line of credit. Debt expense for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 increased primarily due to an increase in our long-term debt balance related to the issuance of the 6.75% senior notes due 2033 in the second quarter of 2025, partially offset by decreased weighted average effective interest rates.

Current wording

Debt expense for the second quarter of 2026 compared to the first quarter of 2026 increased primarily due to increased borrowing activity on our revolving line of credit and the issuance of Term Loan B-2 incremental amounts. Debt expense for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 increased primarily due to an increase in our long-term debt balance related to the issuance of the 6.75% senior notes due 2033 in the second quarter of 2025, partially offset by decreased weighted average effective interest rates.

Previous wording

The three months ended December 31, 2025 included debt extinguishment and modification costs of $9 million composed partially of fees incurred in connection with the Term Loan A-2 refinancing transaction and partially of deferred financing costs written off for the extinguishment of Term Loan A-1 and prior revolving credit facility.

Current wording

The three and six months ended June 30, 2026 included debt extinguishment and modification costs of $2 million composed of fees incurred in connection with the Term Loan B-2 incremental transaction.

Previous wording

Other income for the first quarter of 2026 compared to loss for the fourth quarter of 2025 was impacted by equity investment losses in the fourth quarter of 2025 at Mozarc Medical Holding LLC (Mozarc) which included impairment and restructuring charges. Other income for the three months ended March 31, 2026 compared to other loss for the three months ended March 31, 2025 was impacted by equity investment losses at Mozarc recognized in the first quarter of 2025 and decreased net losses on other investments.

Current wording

Other income for the second quarter of 2026 increased compared to the first quarter of 2026, primarily due to decreased net losses on investments. Other income for the six months ended June 30, 2026 compared to other loss for the six months ended June 30, 2025 was impacted by equity investment losses at Mozarc Medical Holding LLC recognized in 2025 and net gains on other investments in 2026 compared to net losses in 2025.

Previous wording

The effective income tax rate from continuing operations and the effective income tax rate from continuing operations attributable to DaVita Inc. for the three months ended March 31, 2026 increased compared to the three months ended March 31, 2025 primarily due to a reduction in discrete benefits recognized in the quarter as a percentage of earnings. Discrete items include benefits recognized in each period for stock-based compensation partially offset by an uncertain tax position recognized in the first quarter of 2026.

Current wording

The effective income tax rate and the effective income tax rate attributable to DaVita Inc. increased for the second quarter of 2026 compared to the first quarter of 2026 primarily due to benefits recognized in the first quarter of 2026 from stock-based compensation, partially offset by tax benefits related to renewable energy credits purchased in the second quarter of 2026.

Previous wording

The decrease in net income attributable to noncontrolling interests for the first quarter of 2026 from the fourth quarter of 2025 was due to decreased profitability at certain U.S. dialysis partnerships. The increase in net income attributable to noncontrolling interests for the three months ended March 31, 2026 from the three months ended March 31, 2025 was due to increased profitability at certain U.S. dialysis partnerships.

Current wording

The net income attributable to noncontrolling interests for the second quarter of 2026 was relatively flat compared to the first quarter of 2026. The increase in net income attributable to noncontrolling interests for the six months ended June 30, 2026 from the six months ended June 30, 2025 was due to increased profitability at certain U.S. dialysis partnerships.

Previous wording

Our U.S. dialysis accounts receivable balances at March 31, 2026 and December 31, 2025 were $1.695 billion and $1.610 billion, respectively, representing approximately 52 days and 49 days of revenue outstanding (DSO), respectively. The increase in DSO is primarily due to timing of collections. Our DSO calculation is based on the current quarter’s average revenues per day. There were no significant changes from the fourth quarter of 2025 to the first quarter of 2026 in the carrying value of accounts receivable outstanding over one year old.

Current wording

Our U.S. dialysis accounts receivable balances at June 30, 2026 and December 31, 2025 were $1.719 billion and $1.610 billion, respectively, representing approximately 52 days and 49 days of revenue outstanding (DSO), respectively. The increase in DSO is primarily due to timing of collections. Our DSO calculation is based on the current quarter’s average revenues per day. There were no significant changes from the first quarter of 2026 to the second quarter of 2026 in the carrying value of accounts receivable outstanding over one year old.

Previous wording

Consolidated cash flows from operating activities during the three months ended March 31, 2026 increased compared to the three months ended March 31, 2025. The increase was principally due to changes in working capital as well as an increase in operating results.

Current wording

Consolidated cash flows from operating activities during the six months ended June 30, 2026 increased compared to the six months ended June 30, 2025. The increase was principally due to an increase in operating results combined with favorable changes in working capital, benefiting from favorable collections during the six months ended June 30, 2026 compared to the disruption in collections related to the cybersecurity incident, as discussed above, during the six months ended June 30, 2025.

Previous wording

Free cash flow during the three months ended March 31, 2026 increased as compared to the three months ended March 31, 2025 primarily due to an increase in net cash provided by operating activities, as described above, and decreases in capital expenditures.

Current wording

Free cash flow during the six months ended June 30, 2026 increased as compared to the six months ended June 30, 2025 primarily due to an increase in net cash provided by operating activities, as described above, partially offset by a decrease in proceeds from sale of self-developed properties.

Previous wording

Significant sources of cash during the period included net draws on our revolving line of credit of $375 million. Significant uses of cash included regularly scheduled principal payments under our senior secured credit facilities totaling approximately $13 million on our Term Loan A-2 and $5 million on Term Loan B-2, as well as additional required payments under other debt arrangements. In addition, during the three months ended March 31, 2026 we used cash to repurchase 3.0 million shares of our common stock.

Current wording

Significant sources of cash during the period included the incurrence of an incremental Term Loan B-2 tranche in the aggregate principal amount of $500 million and net draws on our revolving line of credit of $65 million. Significant uses of cash included regularly scheduled principal payments under our senior secured credit facilities totaling approximately $25 million on our Term Loan A-2 and $11 million on Term Loan B-2, as well as additional required payments under other debt arrangements. In addition, during the six months ended June 30, 2026 we used cash to repurchase 5.2 million shares of our common stock.

Previous wording

By comparison, the same period in 2025 included net draws on our revolving line of credit of $425 million. Significant uses of cash during the three months ended March 31, 2025 included the repayment of $93 million in interest-free funding made available by UnitedHealth Group and its affiliates following the cybersecurity breach that affected Change Healthcare during the first quarter of 2024, regularly scheduled principal payments under our senior secured credit facilities totaling approximately $30 million on our Term Loan A-1 and $4 million on Term Loan B-1, and additional required payments under other debt arrangements. In addition, during the three months ended March 31, 2025 we used cash to repurchase 3.7 million shares of our common stock.

Current wording

By comparison, the same period in 2025 included the issuance of the 6.75% Senior Notes in the amount of $1,000 million. Significant uses of cash included the repayment of $93 million in interest-free funding made available by UnitedHealth Group and its affiliates following the cybersecurity breach that affected Change Healthcare, a subsidiary of UnitedHealth Group, during the first quarter of 2024, regularly scheduled principal payments under our senior secured credit facilities totaling approximately $59 million on our Term Loan A-1 and $8 million on Term Loan B-1, and additional required payments under other debt arrangements. We also recognized financing cash outflows of $12 million in deferred financing costs related to the 6.75% Senior Notes transaction, as well as $13 million in cap premium fees for our 2025 forward interest rate cap agreements. In addition, during the six months ended June 30, 2025 we used cash to repurchase 6.7 million shares of our common stock.

Previous wording

As of March 31, 2026, we had $1.125 billion available and $375 million drawn on our $1.5 billion revolving line of credit under our senior secured credit facilities. Credit available under this revolving line of credit is reduced by the amount of any letters of credit outstanding thereunder, of which there were none as of March 31, 2026. We separately had approximately $207 million in letters of credit outstanding under a separate bilateral secured letter of credit facility.

Current wording

As of June 30, 2026, we had $1.435 billion available and $65 million drawn on our $1.5 billion revolving line of credit under our senior secured credit facilities. Credit available under this revolving line of credit is reduced by the amount of any letters of credit outstanding thereunder, of which there were none as of June 30, 2026. We separately had approximately $188 million in letters of credit outstanding under a separate bilateral secured letter of credit facility.

Previous wording

In addition, our effective income tax rate on income from continuing operations attributable to DaVita Inc. excludes noncontrolling owners' income, which primarily relates to non-tax paying entities. We believe this adjusted effective income tax rate from continuing operations is useful to management, investors and analysts in evaluating our performance and establishing expectations for income taxes incurred on our ordinary results attributable to DaVita Inc.

Current wording

In addition, our effective income tax rate on income attributable to DaVita Inc. excludes noncontrolling owners' income, which primarily relates to non-tax paying entities. We believe this adjusted effective income tax rate is useful to management, investors and analysts in evaluating our performance and establishing expectations for income taxes incurred on our ordinary results attributable to DaVita Inc.

Previous wording

In addition to the debt obligations and operating lease liabilities reflected on our balance sheet, we have certain potential commitments associated with letters of credit, working capital funding or other financing, if necessary, to certain nonconsolidated businesses that we manage and in which we own a noncontrolling equity interest or which are wholly-owned by third parties. We also have agreed to future investments in particular equity method and other investments if certain milestones are achieved or capital calls are made, as applicable. Additionally, see Note 7 to the condensed consolidated financial statements for discussion on commitments related to our agreement to acquire a noncontrolling minority interest in Elara Caring. For additional information, see Note 16 to the consolidated financial statements included in our 2025 10-K.

Current wording

In addition to the debt obligations and operating lease liabilities reflected on our balance sheet, we have certain potential commitments associated with letters of credit, working capital funding or other financing, if necessary, to certain nonconsolidated businesses that we manage and in which we own a noncontrolling equity interest or which are wholly-owned by third parties. We also have agreed to future investments in particular equity method and other investments if certain milestones are achieved or capital calls are made, as applicable. Additionally, see Note 14 to the condensed consolidated financial statements for discussion of the acquisition of a noncontrolling minority interest in Elara Caring, which closed effective July 20, 2026. For additional information, see Note 16 to the consolidated financial statements included in our 2025 10-K.

Previous wording

For information on the maturities and other terms of our long-term debt, see Note 6 to the condensed consolidated financial statements.

Current wording

For information on the maturities and other terms of our long-term debt and outstanding letters of credit, see Note 6 to the condensed consolidated financial statements.