DAVITA INC.

Previous 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;

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 and Ukraine; 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 and execute on related strategic initiatives;

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; 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;

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, regulatory or other 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 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;

Current wording

•risks arising from laws, regulations or requirements applicable to us or changes thereto, including, without limitation, the One Big Beautiful Bill Act and those related to trade policy, healthcare, charitable premium assistance, 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 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;

Current wording

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

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 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.

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 Reports on Form 10-Q for the quarters ended March 31 and June 30, 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 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.

Current wording

We have been and expect to 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 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.

Current wording

In the third quarter of 2026, treatment per day volumes increased compared to the third quarter of 2025 primarily driven by patient census increases that were partially offset by a slight increase in missed treatment rates. As noted above, treatment volumes may be impacted by a number of factors including mortality levels, and these levels may be influenced by several factors such as the impact of infectious diseases on our patient population. Adverse changes in mortality rates, particularly in the ESKD and CKD populations, could adversely impact treatment volumes, admission rates, 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. Mortality levels may also be influenced by the availability and use of vaccines, treatments and therapies. New technologies or treatments such as those 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 have been working to expand patient access to these therapies as may be prescribed by their physician, and we expect to offer expanded HD to the vast majority of our eligible patients in November. As part of this initiative, we have dedicated resources to securing supply and training our clinical teammates, and we expect to incur costs associated with supplier transitions, among other things. For additional detail on middle molecule treatments, see the discussion in Part I Item 1. “Business” of our 2025 10-K.

Previous 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..."

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. Future policy changes that further affect commercial, including exchange, enrollment could place additional pressure on our commercial mix and revenue per treatment. 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

Previous 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.

Current wording

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

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 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.

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

Previous 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.

Current wording

U.S. dialysis average patient service revenue per treatment for the third quarter of 2026 decreased compared to the second quarter of 2026 primarily driven by normal fluctuations partially offset by increases in average reimbursement rates and improvements in payor mix.

Previous 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.

Current wording

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

Previous wording

In June 2026, Centers for Medicare & Medicaid Services (CMS) issued a proposed rule to update the Medicare ESRD Prospective Payment System (PPS) rate and policies for calendar year 2027. CMS estimates that the overall impact of the proposed rule will increase ESRD freestanding facilities’ average reimbursement by 1.1% in 2027 which includes a proposed increase to account for the incorporation of phosphate binders into the ESRD PPS base rate.

Current wording

On October 28, 2026, Centers for Medicare & Medicaid Services (CMS) issued a final rule to update the Medicare ESRD Prospective Payment System (PPS) rate and policies for calendar year 2027. CMS estimates that the overall impact of the proposed rule will increase ESRD freestanding facilities’ average reimbursement by 2.7% in 2027 which includes a proposed increase to account for the incorporation of phosphate binders into the ESRD PPS base rate, and is also subject to quarterly updates of the post Transitional Drug Add-on Payment Adjustment reimbursement of certain pharmaceuticals.

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 a result of our efforts to remediate the incident and restore systems with the assistance of third-party cybersecurity professionals, we incurred significant costs, including, but not limited to patient care charges of approximately $1.0 million and general and administrative expenses of approximately $12.5 million during the three and six months ended June 30, 2025. These costs did not include the impact related to business interruption on our results.

Current 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 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 $12 million during the third quarter of 2025. During the nine months ended September 30, 2025, we incurred patient care costs of approximately $1 million and general and administrative expenses of approximately $24 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 2026 decreased from the first quarter of 2026 primarily due to decreased labor costs, stemming from a seasonal decrease in payroll taxes and increased productivity levels at our dialysis centers, as well as decreased pharmaceutical costs, including phosphate binders. Additionally, our fixed other direct operating expenses positively impacted patient care costs per treatment due to increased treatments in the

Current wording

Patient care costs. U.S. dialysis patient care costs per treatment for the third quarter of 2026 increased from the second quarter of 2026 primarily due to increased medical supplies expenses.

Previous 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.

Current wording

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

Previous 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.

Current wording

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

Previous 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.

Current wording

U.S. dialysis general and administrative expenses for the nine months ended September 30, 2026 increased from the nine months ended September 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. 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.

Current wording

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

Previous 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.

Current wording

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

Previous 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.

Current wording

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

Previous 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.

Current wording

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

Previous wording

For the six months ended June 30, 2026, U.S. dialysis operating income and adjusted operating income both increased compared to the six months ended June 30, 2025, due to the factors discussed above. Operating income was impacted by the cybersecurity incident-related charges in the second quarter of 2025, as described above.

Current wording

For the nine months ended September 30, 2026, U.S. dialysis operating income and adjusted operating income both increased compared to the nine months ended September 30, 2025, due to the factors discussed above. Operating income was impacted by the cybersecurity incident-related charges in 2025, as described 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 June 30, 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.

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 September 30, 2026, these consisted principally of our U.S. IKC business, certain U.S. other ancillary businesses (including our clinical research programs, transplant software business, medical device company and venture investment group), and our international operations.

Previous 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.

Current wording

As of September 30, 2026, DaVita IKC provided integrated care and disease management services to approximately 80,800 patients in risk-based integrated care arrangements and to an additional 3,100 patients in other integrated care arrangements. We also expect to incorporate 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, 2026, our international dialysis business owned or operated 595 outpatient dialysis centers located in 14 countries outside of the United States.

Current wording

As of September 30, 2026, our international dialysis business owned or operated 598 outpatient dialysis centers located in 14 countries outside of the United States.

Previous 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.

Current wording

IKC operating income for the third quarter of 2026 decreased compared to the second quarter of 2026 primarily driven by a net decrease in shared savings. IKC operating income for the nine months ended September 30, 2026 compared to operating loss for the nine months ended September 30, 2025 was impacted by a net increase in shared savings, partially offset by decreased revenues from, and increased medical claims expense related to, our special needs plans.

Previous 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.

Current wording

U.S. other ancillary services operating loss for the third quarter of 2026 remained relatively flat compared to the second quarter of 2026. U.S. other ancillary services operating loss for the nine months ended September 30, 2026 increased compared to the nine months ended September 30, 2025 primarily due to increased operating losses in our medical device company and a reduction of the earn-out obligations related to our transplant software business in the first quarter of 2025.

Previous wording

International operating income for the second quarter of 2026 decreased compared to the first quarter of 2026, primarily driven by a loss on sale of divested centers. International operating income for the six months ended June 30, 2026 decreased compared to the six months ended June 30, 2025, primarily due to favorable changes in the fair value of contingent consideration associated with a prior acquisition recognized in the second quarter of 2025 and increased compensation expense.

Current wording

International operating results were impacted by goodwill and other asset impairment charges incurred in the third quarter of 2026, as described above. International operating income and adjusted operating income for the third quarter of 2026 compared to the second quarter of 2026 were impacted by increased treatment days in the third quarter, a gain on sale of divested centers recognized in the third quarter compared to a loss recognized in the second quarter and average reimbursement rate increases in certain countries. International operating income and adjusted operating income for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 were impacted by non-acquired and acquired treatment growth and average reimbursement rate increases in certain countries, partially offset by favorable changes in the fair value of contingent consideration associated with a prior acquisition recognized in the second quarter of 2025.

Previous 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.

Current wording

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

Previous 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.

Current wording

Debt expense for the third quarter of 2026 remained relatively flat compared to the second quarter of 2026. Debt expense for the nine months ended September 30, 2026 compared to the nine months ended September 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 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.

Current wording

The three months ended June 30, 2026 and nine months ended September 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 that occurred in June 2026. Comparatively, the nine months ended September 30, 2025 included debt extinguishment and modification costs of $5 million composed partially of fees incurred in connection with the Term Loan B-2 transaction and partially of deferred financing costs and original issue discount written off for the extinguishment of Term Loan B-1 and partial repayment of Term Loan A-1.

Previous 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.

Current wording

Other income for the third quarter of 2026 decreased compared to the second quarter of 2026, primarily due to gains on foreign currency transactions, partially offset by decreased net income on investments. Other income for the nine months ended September 30, 2026 compared to other loss for the nine months ended September 30, 2025 was impacted by equity investment losses at Mozarc Medical Holding LLC recognized in 2025.

Previous 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.

Current wording

The effective income tax rate and the effective income tax rate attributable to DaVita Inc. increased for the third quarter of 2026 compared to the second quarter of 2026 primarily due to a non-deductible goodwill impairment charge recognized in the third quarter and benefits recognized in the second quarter related to the purchase of renewable energy credits.

Previous wording

The effective income tax rate and the effective income tax rate attributable to DaVita Inc. for the six months ended June 30, 2026 decreased compared to the six months ended June 30, 2025 primarily due to the recognition of the write down of a 2014 tax refund claim in the second quarter of 2025.

Current wording

The effective income tax rate and the effective income tax rate attributable to DaVita Inc. for the nine months ended September 30, 2026 decreased compared to the nine months ended September 30, 2025 primarily due to the write-down of a 2014 tax refund claim recognized in the second quarter of 2025, partially offset by a non-deductible goodwill impairment charge recognized in the third quarter of 2026.

Previous 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.

Current wording

The decrease in net income attributable to noncontrolling interests for the third quarter of 2026 compared to the second quarter of 2026, and for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, was driven primarily by $34 million of goodwill and other asset impairments attributable to minority interests in our China business, as described above, partially offset by increased profitability at certain U.S. dialysis partnerships.

Previous 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.

Current wording

Our U.S. dialysis accounts receivable balances at September 30, 2026 and December 31, 2025 were $1.684 billion and $1.610 billion, respectively, representing approximately 51 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 second quarter of 2026 to the third quarter of 2026 in the carrying value of accounts receivable outstanding over one year old.

Previous 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.

Current wording

Free cash flow during the nine months ended September 30, 2026 decreased as compared to the nine months ended September 30, 2025 primarily due to a decrease in net cash provided by operating activities, as described above, as well as a decrease in proceeds from sale of self-developed properties and an increase in distributions to noncontrolling interest.

Previous 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.

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 $80 million. Significant uses of cash included regularly scheduled principal payments under our senior secured credit facilities totaling approximately $38 million on our Term Loan A-2 and $17 million on Term Loan B-2, as well as additional required payments under other debt arrangements. In addition, during the nine months ended September 30, 2026 we used cash to repurchase 5.8 million shares of our common stock.

Previous 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.

Current wording

By comparison, the same period in 2025 included the refinancing of Term Loan B-1 with a secured Term Loan B-2 facility in the aggregate principal amount of $1,878 million and issuance of the 6.75% Senior Notes in the amount of $1,000 million. Significant uses of cash during the nine months ended September 30, 2025 included the pay-off of the remaining principal balance outstanding on our Term Loan B-1 in the amount of $1,628 million, principal prepayment on our Term Loan A-1 in the amount of $250 million and 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 2025, regularly scheduled principal payments under our senior secured credit facilities totaling approximately $59 million on our Term Loan A-1, $8 million on Term Loan B-1 and $5 million on Term Loan B-2, as well as 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 nine months ended September 30, 2025 we used cash to repurchase 10.0 million shares of our common stock.