VIEMED HEALTHCARE, INC.
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
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Item 2. Results of Operations
Results of Operations
Comparison of the Three Months Ended June 30, 2025 and 2024:
The following table summarizes our results of operations for the three months ended June 30, 2025 and 2024:
| Three Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | % of Total Revenue | 2024 | % of Total Revenue | $ Change | % Change | |
| Revenue | $63,056 | 100.0% | $54,965 | 100.0% | $8,091 | 14.7% |
| Cost of revenue | 26,325 | 41.7% | 22,073 | 40.2% | 4,252 | 19.3% |
| Gross profit | 36,731 | 58.3% | 32,892 | 59.8% | 3,839 | 11.7% |
| Selling, general and administrative | 28,803 | 45.7% | 26,503 | 48.2% | 2,300 | 8.7% |
| Research and development | 847 | 1.3% | 758 | 1.4% | 89 | 11.7% |
| Stock-based compensation | 2,341 | 3.7% | 1,620 | 2.9% | 721 | 44.5% |
| Depreciation and amortization | 353 | 0.6% | 377 | 0.7% | (24) | (6.4)% |
| Gain on disposal of property and equipment | (636) | (1.0)% | (545) | (1.0)% | (91) | 16.7% |
| Other expense (income), net | (72) | (0.1)% | 563 | 1.0% | (635) | (112.8)% |
| Income from operations | 5,095 | 8.1% | 3,616 | 6.6% | 1,479 | 40.9% |
| Non-operating income and expenses | ||||||
| Loss on investments | — | —% | (1,117) | (2.0)% | 1,117 | (100.0)% |
| Interest expense, net | (132) | (0.2)% | (254) | (0.5)% | 122 | (48.0)% |
| Net income before taxes | 4,963 | 7.9% | 2,245 | 4.1% | 2,718 | 121.1% |
| Provision for income taxes | 1,713 | 2.7% | 768 | 1.4% | 945 | 123.0% |
| Net income | 3,250 | 5.2% | 1,477 | 2.7% | 1,773 | 120.0% |
| Net income attributable to noncontrolling interest | 93 | 0.2% | 9 | —% | 84 | 933.3% |
| Net income attributable to Viemed Healthcare, Inc. | $3,157 | 5.0% | $1,468 | 2.7% | $1,689 | 115.1% |
Revenue
The following table summarizes our revenue for the three months ended June 30, 2025 and 2024:
| Three Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | % of Total Revenue | 2024 | % of Total Revenue | $ Change | % Change | |
| Revenue from rentals | ||||||
| Ventilator rentals, non-invasive and invasive | $33,819 | 53.6% | $30,445 | 55.4% | $3,374 | 11.1% |
| Other home medical equipment rentals | 13,823 | 21.9% | 12,211 | 22.2% | 1,612 | 13.2% |
| Revenue from sales and services | ||||||
| Equipment and supply sales | 9,514 | 15.1% | 7,378 | 13.4% | 2,136 | 29.0% |
| Service revenues | 5,900 | 9.4% | 4,931 | 9.0% | 969 | 19.7% |
| Total revenue | $63,056 | 100.0% | $54,965 | 100.0% | $8,091 | 14.7% |
For the three months ended June 30, 2025, revenue totaled $63.1 million, an increase of $8.1 million (or 14.7%) from the comparable period in 2024. The primary driver of this growth was our ventilator rental revenue, which increased by $3.4 million (or 11.1%) due to higher patient volumes associated with strong demand for ventilation services. Additionally, rental revenue from other home medical equipment increased by $1.6 million (or 13.2%) 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 $2.1 million (or 29.0%) largely attributable to the success of our sleep resupply program. Furthermore, services revenue experienced an increase of $1.0 million (or 19.7%) primarily due to the growth of healthcare staffing offerings.
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 broaden our geographic footprint and deepen our presence in existing markets, we expect further growth in our ventilator patient base. Additionally, the continued expansion of existing home medical equipment offerings, together with the introduction of new and complementary products, is expected to serve as an additional driver of revenue growth in future periods.
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Cost of revenue and gross profit
Cost of revenue for the three months ended June 30, 2025 was $26.3 million, an increase of $4.3 million (or 19.3%) compared to the same period in 2024. This increase was primarily driven by higher patient volumes and the expansion of our service offerings, which contributed to overall revenue growth.
Gross profit margin declined modestly to 58.3% in the three months ended June 30, 2025, down from 59.8% in the prior-year comparable period. The decrease in gross margin was largely driven by changes in our revenue mix associated with the diversification of our products and services.
We expect that continued growth and scaling of our operations may lead to improved cost efficiency over time. However, the margin impact of an evolving revenue mix could partially offset these benefits. As a result, gross margins may fluctuate in future periods depending on the composition of revenue sources and the degree to which we are able to capture economies of scale.
Selling, general and administrative expense
Selling, general, and administrative expenses as a percentage of revenue improved to 45.7% for the three months ended June 30, 2025 compared to 48.2% for the three months ended June 30, 2024. Selling, general and administrative expenses totaled $28.8 million for the three months ended June 30, 2025, an increase of $2.3 million (or 8.7%) from the comparable period in 2024.
The improvement in selling, general, and administrative expenses as a percentage of revenue reflects the benefits of operating leverage and continued gains in operational efficiency. 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. Employee compensation expenses increased $1.8 million (or 9.9%) 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 supported by ongoing efficiency initiatives and disciplined cost management.
Research and development
For the three months ended June 30, 2025, research and development expense totaled $0.8 million, an increase of $0.1 million from the comparable period in 2024. 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.
Stock-based compensation
For the three months ended June 30, 2025, stock-based compensation totaled $2.3 million, an increase of 44.5% from the comparable period in 2024. The increase reflects our continued investment in employee retention and long-term incentive programs, including the broader integration of equity-based awards into our compensation structure.
As we expand our workforce and align employee incentives with long-term shareholder value, we expect stock-based compensation to remain a consistent component of our cost structure throughout the remainder of 2025.
Gain on disposal of property and equipment
For the three months ended June 30, 2025, gain on disposal of property and equipment totaled $0.6 million compared to gain on disposal of property and equipment of $0.5 million for the three months ended June 30, 2024. In both periods, the gains were primarily attributable to proceeds from the sale of recalled ventilators back to the manufacturer.
As our participation in the ventilator buyback program has substantially concluded, we do not expect further material gains from these transactions in future periods.
Other expense (income), net
For the three months ended June 30, 2025, other income totaled $0.1 million, compared to other expense of $0.6 million for the three months ended June 30, 2024. Other expense during the prior period is primarily due to an impairment of a litigation receivable of $0.9 million determined to be unrealizable as a result of the counterparty's bankruptcy proceedings.
Loss on investments
The $1.1 million loss on investments in the prior year period ended June 30, 2024 primarily reflects a loss recognized on a debt investment during the period. No investment related loss was recorded in the current period.
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Interest expense, net
Net interest expense was not significant for the three months ended June 30, 2025 or the comparable period in 2024. However, we expect net interest expense to increase over the remainder of 2025 following the issuance of debt to finance the acquisition of Lehan’s Medical Equipment.
Provision for income taxes
For the three months ended June 30, 2025, the provision for income taxes was a $1.7 million expense, compared to a $0.8 million expense during the 2024 period. Our annual estimated effective tax rate for 2025 is 31.7%.
Net income
For the three months ended June 30, 2025, net income was $3.3 million, an increase of $1.8 million (or 120.0%) from the comparable period in 2024. Net income as a percentage of revenue increased from 2.7% for the three months ended June 30, 2024 to 5.2% for the three months ended June 30, 2025.
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Comparison of the Six Months Ended June 30, 2025 and 2024:
The following table summarizes our results of operations for the six months ended June 30, 2025 and 2024:
| Six Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | % of Total Revenue | 2024 | % of Total Revenue | $ Change | % Change | |
| Revenue | $122,185 | 100.0% | $105,558 | 100.0% | $16,627 | 15.8% |
| Cost of revenue | 52,175 | 42.7% | 42,864 | 40.6% | 9,311 | 21.7% |
| Gross profit | 70,010 | 57.3% | 62,694 | 59.4% | 7,316 | 11.7% |
| Selling, general and administrative | 57,228 | 46.8% | 51,317 | 48.6% | 5,911 | 11.5% |
| Research and development | 1,644 | 1.3% | 1,508 | 1.4% | 136 | 9.0% |
| Stock-based compensation | 4,652 | 3.8% | 3,052 | 2.9% | 1,600 | 52.4% |
| Depreciation and amortization | 701 | 0.7% | 792 | 0.8% | (91) | (11.5)% |
| Gain on disposal of property and equipment | (3,004) | (2.5)% | (332) | (0.3)% | (2,672) | 804.8% |
| Other expense (income), net | (147) | (0.1)% | 537 | 0.5% | (684) | (127.4)% |
| Income from operations | 8,936 | 7.3% | 5,820 | 5.5% | 3,116 | 53.5% |
| Non-operating income and expenses | ||||||
| Loss on investments | — | —% | (1,050) | (1.0)% | 1,050 | (100.0)% |
| Interest expense, net | (311) | (0.2)% | (404) | (0.4)% | 93 | (23.0)% |
| Net income before taxes | 8,625 | 7.1% | 4,366 | 4.1% | 4,259 | 97.5% |
| Provision for income taxes | 2,665 | 2.2% | 1,286 | 1.2% | 1,379 | 107.2% |
| Net income | 5,960 | 4.9% | 3,080 | 2.9% | 2,880 | 93.5% |
| Net income attributable to noncontrolling interest | 178 | 0.2% | 9 | —% | 169 | 1877.8% |
| Net income attributable to Viemed Healthcare, Inc. | $5,782 | 4.7% | $3,071 | 2.9% | $2,711 | 88.3% |
Revenue
The following table summarizes our revenue for the six months ended June 30, 2025 and 2024:
| Six Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | % of Total Revenue | 2024 | % of Total Revenue | $ Change | % Change | |
| Revenue from rentals | ||||||
| Ventilator rentals, non-invasive and invasive | $65,979 | 54.0% | $59,632 | 56.5% | $6,347 | 10.6% |
| Other home medical equipment rentals | 26,798 | 21.9% | 23,145 | 21.9% | 3,653 | 15.8% |
| Revenue from sales and services | ||||||
| Equipment and supply sales | 17,020 | 13.9% | 13,516 | 12.8% | 3,504 | 25.9% |
| Service revenues | 12,388 | 10.2% | 9,265 | 8.8% | 3,123 | 33.7% |
| Total revenue | $122,185 | 100.0% | $105,558 | 100.0% | $16,627 | 15.8% |
For the six months ended June 30, 2025, revenue totaled $122.2 million, an increase of $16.6 million (or 15.8%) from the comparable period in 2024. The primary driver of this growth was our ventilator rental revenue, which increased by $6.3 million (or 10.6%) due to higher patient volumes associated with strong demand for ventilation services. Additionally, rental revenue from other home medical equipment increased by $3.7 million (or 15.8%) 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 $3.5 million (or 25.9%) largely attributable to the success of our sleep resupply program. Furthermore, services revenue experienced an increase of $3.1 million (or 33.7%), primarily due to the growth of healthcare staffing offerings.
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 broaden our geographic footprint and deepen our presence in existing markets, we expect further growth in our ventilator patient base. Additionally, the continued expansion of existing home medical equipment offerings, together with the introduction of new and complementary products, is expected to serve as an additional driver of revenue growth in future periods.
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Cost of revenue and gross profit
Cost of revenue for the six months ended June 30, 2025 was $52.2 million, an increase of $9.3 million (or 21.7%) compared to the same period in 2024. This increase was primarily driven by higher patient volumes and the expansion of our service offerings, which contributed to overall revenue growth.
Gross profit margin declined to 57.3% in the six months ended June 30, 2025, down from 59.4% in the prior-year comparable period. The decrease in gross margin was largely driven by changes in our revenue mix associated with the diversification of our products and services.
We expect that continued growth and scaling of our operations may lead to improved cost efficiency over time. However, the margin impact of an evolving revenue mix could partially offset these benefits. As a result, gross margins may fluctuate in future periods depending on the composition of revenue sources and the degree to which we are able to capture economies of scale.
Selling, general and administrative expense
Selling, general, and administrative expenses as a percentage of revenue improved to 46.8% for the six months ended June 30, 2025 compared to 48.6% for the six months ended June 30, 2024. Selling, general and administrative expenses totaled $57.2 million for the six months ended June 30, 2025, an increase of $5.9 million (or 11.5%) from the comparable period in 2024.
The improvement in selling, general, and administrative expenses as a percentage of revenue reflects the benefits of operating leverage and continued gains in operational efficiency. 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 1,121 on June 30, 2024 to 1,258 on June 30, 2025, an increase of 12.2%. Employee compensation expenses increased $4.1 million (or 11%) 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 supported by ongoing efficiency initiatives and disciplined cost management.
Research and development
For the six months ended June 30, 2025, research and development expense totaled $1.6 million, an increase of $0.1 million from the comparable period in 2024. 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.
Stock-based compensation
For the six months ended June 30, 2025, stock-based compensation totaled $4.7 million, an increase of 52.4% from the comparable period in 2024. The increase reflects our continued investment in employee retention and long-term incentive programs, including the broader integration of equity-based awards into our compensation structure.
As we expand our workforce and align employee incentives with long-term shareholder value, we expect stock-based compensation to remain a consistent component of our cost structure throughout the remainder of 2025.
Gain on disposal of property and equipment
For the six months ended June 30, 2025, gain on disposal of property and equipment totaled $3.0 million compared to gain on disposal of property and equipment of $0.3 million for the six months ended June 30, 2024. In both periods, the gains were primarily attributable to proceeds from the sale of recalled ventilators back to the manufacturer.
As our participation in the ventilator buyback program has substantially concluded, we do not expect further material gains from these transactions in future periods.
Other expense (income), net
For the six months ended June 30, 2025, other income totaled $0.1 million, compared to other expense of $0.5 million for the six months ended June 30, 2024. Other expense during the prior period is primarily due to an impairment of a litigation receivable of $0.9 million determined to be unrealizable as a result of the counterparty's bankruptcy proceedings.
Loss on investments
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The $1.1 million loss on investments in the prior year period ended June 30, 2024 primarily reflects a loss recognized on a debt investment during the period. No investment related loss was recorded in the current period.
Interest expense, net
Net interest expense was not significant for the six months ended June 30, 2025 or the comparable period in 2024. However, we expect net interest expense to increase over the remainder of 2025 following the issuance of debt to finance the acquisition of Lehan’s Medical Equipment.
Provision for income taxes
For the six months ended June 30, 2025, the provision for income taxes was a $2.7 million expense, compared to a $1.3 million expense during the 2024 period. Our annual estimated effective tax rate for 2025 is 31.7%.
Net income
For the six months ended June 30, 2025, net income was $6.0 million, an increase of $2.9 million (or 93.5%) from the comparable period in 2024. Net income as a percentage of revenue increased from 2.9% for the six months ended June 30, 2024 to 4.9% for the six months ended June 30, 2025.
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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.