VIEMED HEALTHCARE, INC.
For the period ended Sep 30, 2025. Filed Nov 5, 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.
Sep 30, 2025 · Filed Nov 5, 2025
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Item 2. Results of Operations
Results of Operations
Comparison of the Three Months Ended September 30, 2025 and 2024:
The following table summarizes our results of operations for the three months ended September 30, 2025 and 2024:
| Three Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | % of Total Revenue | 2024 | % of Total Revenue | $ Change | % Change | |
| Revenue | $71,914 | 100.0% | $58,004 | 100.0% | $13,910 | 24.0% |
| Cost of revenue | 30,569 | 42.5% | 23,633 | 40.7% | 6,936 | 29.3% |
| Gross profit | 41,345 | 57.5% | 34,371 | 59.3% | 6,974 | 20.3% |
| Selling, general and administrative | 31,919 | 44.4% | 26,671 | 46.0% | 5,248 | 19.7% |
| Research and development | 775 | 1.1% | 757 | 1.3% | 18 | 2.4% |
| Stock-based compensation | 2,180 | 3.0% | 1,712 | 3.0% | 468 | 27.3% |
| Depreciation and amortization | 397 | 0.6% | 348 | 0.6% | 49 | 14.1% |
| Loss (gain) on disposal of property and equipment | 476 | 0.7% | (469) | (0.8)% | 945 | (201.5)% |
| Other expense (income), net | (44) | (0.1)% | (276) | (0.5)% | 232 | (84.1)% |
| Income from operations | 5,642 | 7.8% | 5,628 | 9.7% | 14 | 0.2% |
| Non-operating income and expenses | ||||||
| Income (loss) from investments | — | —% | 96 | 0.2% | (96) | (100.0)% |
| Interest expense, net | (507) | (0.7)% | (225) | (0.4)% | (282) | 125.3% |
| Net income before taxes | 5,135 | 7.1% | 5,499 | 9.5% | (364) | (6.6)% |
| Provision for income taxes | 1,535 | 2.1% | 1,594 | 2.7% | (59) | (3.7)% |
| Net income | 3,600 | 5.0% | 3,905 | 6.7% | (305) | (7.8)% |
| Net income attributable to noncontrolling interest | 87 | 0.1% | 27 | —% | 60 | 222.2% |
| Net income attributable to Viemed Healthcare, Inc. | $3,513 | 4.9% | $3,878 | 6.7% | $(365) | (9.4)% |
Revenue
The following table summarizes our revenue for the three months ended September 30, 2025 and 2024:
| Three Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | % of Total Revenue | 2024 | % of Total Revenue | $ Change | % Change | |
| Revenue from rentals | ||||||
| Ventilator rentals, non-invasive and invasive | $34,883 | 48.5% | $31,772 | 54.8% | $3,111 | 9.8% |
| Other home medical equipment rentals | 15,401 | 21.4% | 12,459 | 21.5% | 2,942 | 23.6% |
| Revenue from sales and services | ||||||
| Equipment and supply sales | 15,700 | 21.8% | 8,440 | 14.6% | 7,260 | 86.0% |
| Service revenues | 5,930 | 8.3% | 5,333 | 9.2% | 597 | 11.2% |
| Total revenue | $71,914 | 100.0% | $58,004 | 100.0% | $13,910 | 24.0% |
For the three months ended September 30, 2025, revenue totaled $71.9 million, an increase of $13.9 million (or 24.0%) from the comparable period in 2024. The primary driver of this growth was equipment and supply sales revenue, which increased by $7.3 million (or 86.0%) largely due to the success of our sleep resupply program and the addition of maternal health offerings in connection with the Lehan acquisition. Ventilator rental revenue increased by $3.1 million (or 9.8%) primarily as a result of higher patient volumes and sustained demand for ventilation services. Rental revenue from other home medical equipment increased by $2.9 million (or 23.6%) reflecting an expanding patient base and continued demand for Positive Airway Pressure (PAP) therapy, oxygen therapy, and percussion vest services. Services revenue increased by $0.6 million (or 11.2%) due to the growth of healthcare staffing offerings.
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While ventilator rentals continue to represent a significant portion of our total revenue, the growth in equipment and supply 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.
Cost of revenue and gross profit
Cost of revenue for the three months ended September 30, 2025 was $30.6 million, an increase of $6.9 million (or 29.3%) 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 decreased modestly to 57.5% in the three months ended September 30, 2025, compared to 59.3% for the same period in 2024. The decline in gross margin was primarily attributable to changes in the revenue mix associated with the diversification of our products and services.
We expect continued growth and scale to support improved cost efficiencies over time. However, the evolving revenue mix may 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 economies of scale are realized.
Selling, general and administrative expense
Selling, general and administrative expenses as a percentage of revenue improved to 44.4% for the three months ended September 30, 2025 compared to 46.0% for the three months ended September 30, 2024. Selling, general and administrative expenses totaled $31.9 million for the three months ended September 30, 2025, an increase of $5.2 million (or 19.7%) from the comparable period in 2024.
The improvement in selling, general and administrative expenses as a percentage of revenue reflects continued operating leverage and efficiency gains. The overall increase in selling, general and administrative expense compared to the prior period is primarily attributable to additional employee-related expenses to accommodate the overall growth of the Company and the impact of the Lehan acquisition completed on July 1, 2025. Employee compensation expenses increased $2.7 million (or 13.8%) as a result of the increase in our employee headcount from both organic expansion and the acquired operations. 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 both the three months ended September 30, 2025 and September 30, 2024, 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.
Stock-based compensation
Stock-based compensation totaled $2.2 million for the three months ended September 30, 2025, an increase of 27.3% compared to the same 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 continue to expand our workforce and align employee incentives with long-term shareholder value, stock-based compensation is expected to remain a consistent component of our cost structure throughout the remainder of 2025.
Loss (gain) on disposal of property and equipment
For the three months ended September 30, 2025, the Company recognized a $0.5 million loss on the disposal of property and equipment, compared to a $0.5 million gain in the same period of 2024. The current period loss was primarily related to patient equipment that was damaged or destroyed and subsequently written off. The prior-year gain was 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, no material gains from these transactions are expected in future periods. However, the Company expects that certain losses associated with the disposal of damaged or destroyed equipment may continue to occur in future periods.
Interest expense, net
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For the three months ended September 30, 2025, net interest expense totaled $0.5 million, an increase of $0.3 million from the comparable period in 2024. The increase in net interest expense is primarily due to outstanding borrowings as a result of debt issued to fund the Lehan acquisition. However, with anticipated debt repayments, we expect a reduction in quarterly net interest expense for the remainder of 2025.
Provision for income taxes
For the three months ended September 30, 2025, the provision for income taxes was a $1.5 million expense, compared to a $1.6 million expense during the 2024 period. Our annual estimated effective tax rate for 2025 is 31.6%.
Net income
For the three months ended September 30, 2025, net income was $3.6 million, a decrease of $0.3 million (or 7.8%) from the comparable period in 2024. Net income as a percentage of revenue decreased from 6.7% for the three months ended September 30, 2024 to 5.0% for the three months ended September 30, 2025, primarily due to the gains recognized in 2024 from our participation in the ventilator buyback program.
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Comparison of the Nine Months Ended September 30, 2025 and 2024:
The following table summarizes our results of operations for the nine months ended September 30, 2025 and 2024:
| Nine Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | % of Total Revenue | 2024 | % of Total Revenue | $ Change | % Change | |
| Revenue | $194,099 | 100.0% | $163,562 | 100.0% | $30,537 | 18.7% |
| Cost of revenue | 82,744 | 42.6% | 66,497 | 40.7% | 16,247 | 24.4% |
| Gross profit | 111,355 | 57.4% | 97,065 | 59.3% | 14,290 | 14.7% |
| Selling, general and administrative | 89,147 | 45.9% | 77,988 | 47.7% | 11,159 | 14.3% |
| Research and development | 2,419 | 1.2% | 2,265 | 1.4% | 154 | 6.8% |
| Stock-based compensation | 6,832 | 3.5% | 4,764 | 2.9% | 2,068 | 43.4% |
| Depreciation and amortization | 1,098 | 0.7% | 1,140 | 0.7% | (42) | (3.7)% |
| Loss (gain) on disposal of property and equipment | (2,528) | (1.3)% | (801) | (0.5)% | (1,727) | 215.6% |
| Other expense (income), net | (191) | (0.1)% | 261 | 0.2% | (452) | (173.2)% |
| Income from operations | 14,578 | 7.5% | 11,448 | 7.0% | 3,130 | 27.3% |
| Non-operating income and expenses | ||||||
| Income (loss) from investments | — | —% | (954) | (0.6)% | 954 | (100.0)% |
| Interest expense, net | (818) | (0.3)% | (629) | (0.4)% | (189) | 30.0% |
| Net income before taxes | 13,760 | 7.1% | 9,865 | 6.0% | 3,895 | 39.5% |
| Provision for income taxes | 4,200 | 2.2% | 2,880 | 1.8% | 1,320 | 45.8% |
| Net income | 9,560 | 4.9% | 6,985 | 4.3% | 2,575 | 36.9% |
| Net income attributable to noncontrolling interest | 265 | 0.2% | 36 | —% | 229 | 636.1% |
| Net income attributable to Viemed Healthcare, Inc. | $9,295 | 4.8% | $6,949 | 4.2% | $2,346 | 33.8% |
Revenue
The following table summarizes our revenue for the nine months ended September 30, 2025 and 2024:
| Nine Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | % of Total Revenue | 2024 | % of Total Revenue | $ Change | % Change | |
| Revenue from rentals | ||||||
| Ventilator rentals, non-invasive and invasive | $100,862 | 52.0% | $91,404 | 55.9% | $9,458 | 10.3% |
| Other home medical equipment rentals | 42,199 | 21.7% | 35,604 | 21.8% | 6,595 | 18.5% |
| Revenue from sales and services | ||||||
| Equipment and supply sales | 32,720 | 16.9% | 21,956 | 13.4% | 10,764 | 49.0% |
| Service revenues | 18,318 | 9.4% | 14,598 | 8.9% | 3,720 | 25.5% |
| Total revenue | $194,099 | 100.0% | $163,562 | 100.0% | $30,537 | 18.7% |
For the nine months ended September 30, 2025, revenue totaled $194.1 million, an increase of $30.5 million (or 18.7%) from the comparable period in 2024. The primary driver of this growth was our equipment and supply sales revenue, which increased by $10.8 million (or 49.0%), largely due to the success of our sleep resupply program and the addition of maternal health offerings in connection with the Lehan acquisition. Ventilator rental revenue increased by $9.5 million (or 10.3%), primarily as a result of higher patient volumes and sustained demand for ventilation services. Rental revenue from other home medical equipment increased by $6.6 million (or 18.5%), reflecting an expanding patient base and strong demand for Positive Airway Pressure (PAP) therapy, oxygen therapy, and percussion vest services. Services revenue increased by $3.7 million (or 25.5%) primarily due to the growth of healthcare staffing offerings.
While ventilator rentals continue to represent a significant portion of our total revenue, the growth in equipment and supply 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 nine months ended September 30, 2025 was $82.7 million, an increase of $16.2 million (or 24.4%) 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 decreased to 57.4% for the nine months ended September 30, 2025, compared to 59.3% for the same period in 2024. The decline in gross margin was primarily attributable to changes in the revenue mix associated with the diversification of our products and services.
We expect continued growth and scale to support improved cost efficiencies over time. However, the evolving revenue mix may 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 economies of scale are realized.
Selling, general and administrative expense
Selling, general and administrative expenses as a percentage of revenue improved to 45.9% for the nine months ended September 30, 2025, compared to 47.7% for the same period in 2024. Selling, general and administrative expenses totaled $89.1 million for the nine months ended September 30, 2025, an increase of $11.2 million (or 14.3%) from the comparable period in 2024.
The improvement in selling, general and administrative expenses as a percentage of revenue reflects continued operating leverage and efficiency gains. The overall increase in selling, general and administrative expenses compared to the prior period is primarily attributable to additional employee-related expenses to support the Company’s overall growth and the impact of the Lehan acquisition completed on July 1, 2025. Employee compensation expenses increased $6.7 million (or 12.0%) as a result of the increase in our employee headcount from both organic expansion and the acquired operations. 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 nine months ended September 30, 2025, research and development expense totaled $2.4 million, an increase of $0.2 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 nine months ended September 30, 2025, stock-based compensation totaled $6.8 million, an increase of 43.4% 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 nine months ended September 30, 2025, gain on disposal of property and equipment totaled $2.5 million compared to gain on disposal of property and equipment of $0.8 million for the nine months ended September 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. However, the Company expects that certain losses associated with the disposal of damaged or destroyed equipment may continue to occur in future periods.
Income (loss) from investments
The $1.0 million loss from investments in the prior year period ended September 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
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For the nine months ended September 30, 2025, net interest expense totaled $0.8 million, an increase of $0.2 million from the comparable period in 2024. The increase in net interest expense is primarily due to outstanding borrowings as a result of debt issued to fund the Lehan acquisition. However, with anticipated debt repayments, we expect a reduction in quarterly net interest expense for the remainder of 2025.
Provision for income taxes
For the nine months ended September 30, 2025, the provision for income taxes was a $4.2 million expense, compared to a $2.9 million expense during the 2024 period. Our annual estimated effective tax rate for 2025 is 31.6%.
Net income
For the nine months ended September 30, 2025, net income was $9.6 million, an increase of $2.6 million (or 36.9%) from the comparable period in 2024. Net income as a percentage of revenue increased from 4.3% for the nine months ended September 30, 2024 to 4.9% for the nine months ended September 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.