VIEMED HEALTHCARE, INC.

Results of Operations

Comparison of the Three Months Ended March 31, 2025 and 2024:

The following table summarizes our results of operations for the three months ended March 31, 2025 and 2024:

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Revenue

The following table summarizes our revenue for the three months ended March 31, 2025 and 2024:

For the three months ended March 31, 2025, revenue totaled $59.1 million, an increase of $8.5 million (or 16.9%) from the comparable period in 2024. The primary driver of this growth was our ventilator rental revenue, which increased by $3.0 million (or 10.2%) due to higher patient volumes associated with strong demand for ventilation services. Additionally, rental revenue from other home medical equipment increased by $2.0 million (or 18.5%) due to an expanding patient base, robust demand for Positive Airway Pressure (PAP) therapy, oxygen therapy, and percussion vest services. Equipment and supply sales grew by $1.4 million (or 22.5%) largely attributable to the success of our sleep resupply program. Furthermore, service revenue experienced an increase of $2.2 million (or 49.7%), primarily due to the growth of healthcare staffing offerings and a shift in service mix from workforce management arrangements to external staffing services.

While ventilator rentals continue to make up the majority of our revenue, the growth of PAP and oxygen related sales, as well as our healthcare staffing offerings, is contributing to the diversity of our overall revenue mix. As we continue to expand geographically into new territories and further expand our presence in our existing territories, we expect continued growth in our active ventilator patient base and other home medical offerings.

Cost of revenue and gross profit

For the three months ended March 31, 2025, cost of revenue totaled $25.9 million, an increase of $5.1 million (or 24.3%) from the comparable period in 2024. Gross profit percentage decreased from 58.9% in the three months ended March 31, 2024 to 56.3% in the three months ended March 31, 2025. While the shift in revenue composition has temporarily impacted gross profit margins, we expect these margins to improve in future periods. This improvement is anticipated to result from efficiencies associated with the scaling of our individual product and service lines. However, the continued diversification of our offerings may partially offset these gains, moderating the expansion of gross profit margins.

Selling, general and administrative expense

Selling, general and administrative expenses as a percentage of revenue improved to 48.1% for the three months ended March 31, 2025 compared to 49.0% for the three months ended March 31, 2024. Selling, general and administrative expenses totaled $28.4 million for the three months ended March 31, 2025, an increase of $3.6 million (or 14.6%) from the comparable period in 2024. The improvement in selling, general, and administrative expenses as a percentage of revenue is attributable to economies of scale and improvements in operational efficiencies. The overall increase in selling, general and administrative expense as compared to the prior period is primarily attributable to additional employee related expenses to accommodate the overall growth of the Company, including the acquisition of HomeMed on April 1, 2024. Our full-time employee count increased from 1,030 on March 31, 2024 to 1,222 on March 31, 2025, an increase of 19%. Employee compensation expenses increased $2.2 million (or 12%) as a result of the increase in our employee headcount. We expect that selling, general and administrative expenses as a percentage of revenue will continue to improve through the end of 2025 due to increased efficiencies and cost optimization efforts.

Research and development

For the three months ended March 31, 2024 and March 31, 2025, research and development expense totaled $0.8 million. As we continue to invest in research and development related projects to support our technology initiatives, we expect that the associated costs will remain consistent in 2025 relative to 2024.

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Stock-based compensation

For the three months ended March 31, 2025, stock-based compensation totaled $2.3 million, an increase of 61.4% from the comparable period in 2024, primarily driven by the transition from phantom stock liability awards to equity awards as a percentage of employee compensation. We anticipate that as we expand our workforce, incorporating stock-based awards as a component of employee compensation, stock-based compensation expense will correspondingly rise. We expect stock-based compensation expense to remain relatively consistent throughout the remainder of 2025.

Loss (gain) on disposal of property and equipment

For the three months ended March 31, 2025, gain on disposal of property and equipment totaled $2.4 million compared to loss on disposal of property and equipment of $0.2 million for the three months ended March 31, 2024. The gain primarily resulted from proceeds related to the sale of recalled ventilators back to the manufacturer. We anticipate additional future gains from the disposal

of eligible devices, as the proceeds from these disposals are expected to exceed their net book value.

Provision for income taxes

For the three months ended March 31, 2025, the provision for income taxes was a $1.0 million expense, compared to a $0.5 million expense during the 2024 period. Our annual estimated effective tax rate for 2025 is 29.7%.

Net income

For the three months ended March 31, 2025, net income was $2.7 million, an increase of $1.1 million (or 69.1%) from the comparable period in 2024. Net income as a percentage of net revenue increased from 3.2% for the three months ended March 31, 2024 to 4.6% for the three months ended March 31, 2025.

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