VIEMED HEALTHCARE, INC.
For the period ended Jun 30, 2026. Filed Aug 3, 2026.
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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, 2026 · Filed Aug 3, 2026
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Item 2. Results of Operations
Results of Operations
Comparison of the Three Months Ended June 30, 2026 and 2025:
The following table summarizes our results of operations for the three months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2026 | % of Total Revenue | 2025 | % of Total Revenue | $ Change | % Change | |
| Revenue | $78,097 | 100.0% | $63,056 | 100.0% | $15,041 | 23.9% |
| Cost of revenue | 33,049 | 42.3% | 26,325 | 41.7% | 6,724 | 25.5% |
| Gross profit | 45,048 | 57.7% | 36,731 | 58.3% | 8,317 | 22.6% |
| Selling, general and administrative | 37,132 | 47.5% | 28,803 | 45.7% | 8,329 | 28.9% |
| Research and development | 504 | 0.6% | 847 | 1.3% | (343) | (40.5)% |
| Stock-based compensation | 2,032 | 2.6% | 2,341 | 3.7% | (309) | (13.2)% |
| Depreciation and amortization | 388 | 0.5% | 353 | 0.6% | 35 | 9.9% |
| Loss (gain) on disposal of property and equipment | 598 | 0.8% | (636) | (1.0)% | 1,234 | (194.0)% |
| Other income, net | (67) | (0.1)% | (72) | (0.1)% | 5 | (6.9)% |
| Income from operations | 4,461 | 5.7% | 5,095 | 8.1% | (634) | (12.4)% |
| Non-operating income and expenses | ||||||
| Loss from investments | 162 | 0.2% | — | —% | 162 | NM |
| Interest expense, net | 248 | 0.3% | 132 | 0.2% | 116 | 87.9% |
| Net income before taxes | 4,051 | 5.2% | 4,963 | 7.9% | (912) | (18.4)% |
| Provision for income taxes | 1,151 | 1.5% | 1,713 | 2.7% | (562) | (32.8)% |
| Net income | 2,900 | 3.7% | 3,250 | 5.2% | (350) | (10.8)% |
| Net income attributable to noncontrolling interest | 136 | 0.2% | 93 | 0.2% | 43 | 46.2% |
| Net income attributable to Viemed Healthcare, Inc. | $2,764 | 3.5% | $3,157 | 5.0% | $(393) | (12.4)% |
Revenue
The following table summarizes our revenue for the three months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2026 | % of Total Revenue | 2025 | % of Total Revenue | $ Change | % Change | |
| Revenue from rentals | ||||||
| Ventilator rentals, non-invasive and invasive | $36,411 | 46.6% | $33,819 | 53.6% | $2,592 | 7.7% |
| Other home medical equipment rentals | 16,408 | 21.0% | 13,823 | 21.9% | 2,585 | 18.7% |
| Revenue from sales and services | ||||||
| Equipment and supply sales | 18,971 | 24.3% | 9,514 | 15.1% | 9,457 | 99.4% |
| Service revenues | 6,307 | 8.1% | 5,900 | 9.4% | 407 | 6.9% |
| Total revenue | $78,097 | 100.0% | $63,056 | 100.0% | $15,041 | 23.9% |
For the three months ended June 30, 2026, total revenue was $78.1 million, an increase of $15.0 million, or 23.9%, compared to the three months ended June 30, 2025. The increase was driven by growth across our rental, equipment and supply sales, and service revenue categories, including continued expansion of our ventilator, sleep, resupply, and women’s health offerings and the inclusion of revenue from the Lehan operations acquired on July 1, 2025.
Revenue from non-invasive and invasive ventilator rentals increased by $2.6 million, or 7.7%, to $36.4 million for the three months ended June 30, 2026. The increase was primarily attributable to higher average patient volumes, reflecting continued demand for home non-invasive ventilation services and growth in our ventilator patient census. Rental revenue from other home medical equipment increased by $2.6 million, or 18.7%, to $16.4 million for the three months ended June 30, 2026. The increase was driven primarily by growth in PAP therapy and airway-clearance services, as well as rental revenue associated with women’s health products and Lehan operations.
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Equipment and supply sales increased by $9.5 million, or 99.4%, to $19.0 million, for the three months ended June 30, 2026. The increase was primarily attributable to the inclusion and continued expansion of women’s health product sales, including breast pumps and related supplies, and higher PAP resupply volumes resulting from growth in our sleep therapy patient base. Service revenues, which consist primarily of revenue from our healthcare staffing operations and in-home sleep testing services, increased by $0.4 million, or 6.9%, to $6.3 million for the three months ended June 30, 2026.
Ventilator rentals remained our largest individual source of revenue. However, the continued growth of PAP therapy and resupply, women’s health, oxygen therapy, and other home medical equipment offerings resulted in a more diversified revenue mix during the 2026 period.
Cost of revenue and gross profit
For the three months ended June 30, 2026, cost of revenue totaled $33.0 million, an increase of $6.7 million, or 25.5%, from the comparable period in 2025. The increase was primarily attributable to the costs associated with higher patient and sales volumes and the inclusion of the Lehan operations.
Gross profit margin decreased to 57.7% for the three months ended June 30, 2026, compared to 58.3% for the three months ended June 30, 2025. The decrease in gross profit margin primarily reflected a shift in revenue mix, as revenue from sales and services typically generates lower gross margins but carries lower capital expenditure requirements than revenue from rentals. For the three months ended June 30, 2026, revenue from sales and services represented 32.4% of total revenue, compared to 24.4% in the comparable period in 2025.
Selling, general and administrative expense
Selling, general, and administrative expenses as a percentage of revenue was 47.5% for the three months ended June 30, 2026 compared to 45.7% for the three months ended June 30, 2025. Selling, general and administrative expenses totaled $37.1 million for the three months ended June 30, 2026, an increase of $8.3 million (or 28.9%) from the comparable period in 2025.
The increase in selling, general and administrative expense was primarily attributable to expenses incurred to support the continued growth of the business, including the addition of the Lehan operations, which were acquired on July 1, 2025 and therefore not included in the prior-year quarter. Employee compensation expense increased $4.0 million, or 22.8%, primarily due to higher headcount. Other factors contributing to the increase included approximately $0.9 million of higher phantom stock compensation primarily driven by the increase in our share price, approximately $0.6 million of higher sales compensation associated with record patient setup activity, as well as incremental technology and implementation spending and higher legal and professional costs.
The increase as a percentage of revenue reflected continued investments in technology, talent, and operating capacity, and the development of the Company’s sales organization in advance of anticipated growth. The Company expects these investments to support future revenue growth and productivity improvements. However, the timing and extent of any resulting improvement in selling, general and administrative expenses as a percentage of revenue will depend on the pace at which these benefits are realized.
Research and development
For the three months ended June 30, 2026, research and development expense totaled $0.5 million, a decrease of $0.3 million, or 40.5%, from $0.8 million in the comparable period in 2025. We expect research and development costs to remain consistent throughout the remainder of 2026 as we continue to invest in technology initiatives to support our clinical operations and service delivery capabilities.
Stock-based compensation
For the three months ended June 30, 2026, stock-based compensation totaled $2.0 million, a decrease of 13.2% from the comparable period in 2025. The decrease in stock-based compensation was primarily attributable to forfeitures recognized during the period. Stock-based compensation continues to reflect our ongoing investment in employee retention and long-term incentive programs through the use of equity-based awards, with expense recognized over the respective vesting periods of awards granted in both the current and prior years.
Loss (gain) on disposal of property and equipment
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For the three months ended June 30, 2026, loss on disposal of property and equipment totaled $0.6 million compared to a gain on disposal of property and equipment of $0.6 million for the three months ended June 30, 2025. The gain recognized in the prior year period was primarily attributable to proceeds received from the sale of recalled ventilators back to the manufacturer in excess of their net book value.
The ventilator buyback program was substantially completed in 2025, and accordingly we do not expect additional material gains from these transactions in future periods. We may, however, continue to recognize gains or losses from the disposal of equipment in the ordinary course of business, including losses related to damaged or destroyed equipment.
Provision for income taxes
For the three months ended June 30, 2026, the provision for income taxes was a $1.2 million expense, compared to a $1.7 million expense during the 2025 period. Our annual estimated effective tax rate for 2026 is 30.2%.
Net income
For the three months ended June 30, 2026, net income was $2.9 million, a decrease of $0.4 million (or 10.8%) from the comparable period in 2025. Net income represented 3.7% of revenue for the 2026 period, compared to 5.2% for the 2025 period. The decrease was primarily attributable to the operating-expense and equipment-disposal factors described above, partially offset by increased gross profit and a lower provision for income taxes.
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Comparison of the Six Months Ended June 30, 2026 and 2025:
The following table summarizes our results of operations for the six months ended June 30, 2026 and 2025:
| Six Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2026 | % of Total Revenue | 2025 | % of Total Revenue | $ Change | % Change | |
| Revenue | $153,511 | 100.0% | $122,185 | 100.0% | $31,326 | 25.6% |
| Cost of revenue | 65,636 | 42.8% | 52,175 | 42.7% | 13,461 | 25.8% |
| Gross profit | 87,875 | 57.2% | 70,010 | 57.3% | 17,865 | 25.5% |
| Selling, general and administrative | 71,924 | 46.9% | 57,228 | 46.8% | 14,696 | 25.7% |
| Research and development | 1,083 | 0.7% | 1,644 | 1.3% | (561) | (34.1)% |
| Stock-based compensation | 4,483 | 2.9% | 4,652 | 3.8% | (169) | (3.6)% |
| Depreciation and amortization | 776 | 0.5% | 701 | 0.7% | 75 | 10.7% |
| Loss (gain) on disposal of property and equipment | 954 | 0.6% | (3,004) | (2.5)% | 3,958 | (131.8)% |
| Other income, net | (102) | (0.1)% | (147) | (0.1)% | 45 | (30.6)% |
| Income from operations | 8,757 | 5.7% | 8,936 | 7.3% | (179) | (2.0)% |
| Non-operating income and expenses | ||||||
| Loss from investments | 162 | 0.1% | — | —% | 162 | NM |
| Interest expense, net | 553 | 0.4% | 311 | 0.2% | 242 | 77.8% |
| Net income before taxes | 8,042 | 5.2% | 8,625 | 7.1% | (583) | (6.8)% |
| Provision for income taxes | 2,429 | 1.5% | 2,665 | 2.2% | (236) | (8.9)% |
| Net income | 5,613 | 3.7% | 5,960 | 4.9% | (347) | (5.8)% |
| Net income attributable to noncontrolling interest | 267 | 0.2% | 178 | 0.2% | 89 | 50.0% |
| Net income attributable to Viemed Healthcare, Inc. | $5,346 | 3.5% | $5,782 | 4.7% | $(436) | (7.5)% |
Revenue
The following table summarizes our revenue for the six months ended June 30, 2026 and 2025:
| Six Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2026 | % of Total Revenue | 2025 | % of Total Revenue | $ Change | % Change | |
| Revenue from rentals | ||||||
| Ventilator rentals, non-invasive and invasive | $71,771 | 46.8% | $65,979 | 54.0% | $5,792 | 8.8% |
| Other home medical equipment rentals | 32,606 | 21.2% | 26,798 | 21.9% | 5,808 | 21.7% |
| Revenue from sales and services | ||||||
| Equipment and supply sales | 36,459 | 23.8% | 17,020 | 13.9% | 19,439 | 114.2% |
| Service revenues | 12,675 | 8.2% | 12,388 | 10.2% | 287 | 2.3% |
| Total revenue | $153,511 | 100.0% | $122,185 | 100.0% | $31,326 | 25.6% |
For the six months ended June 30, 2026, total revenue was $153.5 million, an increase of $31.3 million, or 25.6%, compared to the six months ended June 30, 2025. The increase was driven by growth across our rental, equipment and supply sales, and service revenue categories, including continued expansion of our ventilator, sleep, resupply, and women’s health offerings and the inclusion of revenue from the Lehan operations acquired on July 1, 2025.
Revenue from non-invasive and invasive ventilator rentals increased by $5.8 million, or 8.8%, to $71.8 million for the six months ended June 30, 2026. The increase was primarily attributable to higher average patient volumes and continued demand for home non-invasive ventilation services. Rental revenue from other home medical equipment increased by $5.8 million, or 21.7%, to $32.6 million for the six months ended June 30, 2026. The increase was primarily driven by growth in PAP therapy and airway-clearance services, as well as rental revenue associated with women’s health products and Lehan operations.
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Equipment and supply sales increased by $19.4 million, or 114.2%, to $36.5 million, for the six months ended June 30, 2026. The increase was primarily attributable to the inclusion and continued expansion of women’s health product sales and higher PAP resupply volumes resulting from growth in our sleep therapy patient base. Service revenues, which consist primarily of our healthcare staffing operations and in-home sleep testing services, increased by $0.3 million, or 2.3%, to $12.7 million for the six months ended June 30, 2026.
Ventilator rentals remained our largest individual source of revenue. However, the growth of PAP therapy and resupply, women’s health, oxygen therapy, and other home medical equipment offerings continued to increase the diversification of our revenue mix.
Cost of revenue and gross profit
For the six months ended June 30, 2026, cost of revenue totaled $65.6 million, an increase of $13.5 million, or 25.8%, from the comparable period in 2025. The increase was primarily attributable to costs associated with higher patient and sales volumes and the inclusion of the Lehan operations.
Gross profit margin decreased slightly to 57.2% for the six months ended June 30, 2026, compared to 57.3% for the six months ended June 30, 2025. The modest decrease in gross profit margin primarily reflected a shift in revenue mix, as revenue from sales and services typically generates lower gross margins but carries lower capital expenditure requirements than revenue from rentals. For the six months ended June 30, 2026, revenue from sales and services represented 31.9% of total revenue, compared to 24.2% in the comparable period in 2025.
Selling, general and administrative expense
Selling, general, and administrative expenses as a percentage of revenue was 46.9% for the six months ended June 30, 2026, essentially unchanged compared to 46.8% for the six months ended June 30, 2025. Selling, general and administrative expenses totaled $71.9 million for the six months ended June 30, 2026, an increase of $14.7 million (or 25.7%) from the comparable period in 2025.
The increase in the dollar amount of selling, general and administrative expense was primarily attributable to expenses incurred to support the continued growth of the business, including the addition of the Lehan operations, which were acquired on July 1, 2025 and therefore not included in the comparable period in 2025. The increase also reflected higher phantom stock compensation primarily driven by the increase in our share price and incremental technology and implementation costs, partially offset by continued operating leverage as we scaled our platform.
We expect to manage selling, general and administrative expense as a percentage of revenue as our recent investments begin to contribute to revenue and productivity, although the timing and extent of any improvement will depend on the pace of that contribution.
Research and development
For the six months ended June 30, 2026, research and development expense totaled $1.1 million, a decrease of $0.6 million, or 34.1%, from $1.6 million in the comparable period in 2025. We expect research and development costs to remain consistent throughout the remainder of 2026 as we continue to invest in technology initiatives to support our clinical operations and service delivery capabilities.
Stock-based compensation
For the six months ended June 30, 2026, stock-based compensation totaled $4.5 million, a decrease of 3.6% from the comparable period in 2025. The decrease in stock-based compensation was primarily attributable to forfeitures recognized during the period. Stock-based compensation continues to reflect our ongoing investment in employee retention and long-term incentive programs through the use of equity-based awards, with expense recognized over the respective vesting periods of awards granted in both the current and prior years.
Loss (gain) on disposal of property and equipment
For the six months ended June 30, 2026, loss on disposal of property and equipment totaled $1.0 million compared to a gain on disposal of property and equipment of $3.0 million for the six months ended June 30, 2025. The gain recognized in the prior year period was primarily attributable to proceeds received from the sale of recalled ventilators back to the manufacturer in excess of their net book value.
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The ventilator buyback program was substantially completed in 2025, and accordingly we do not expect additional material gains from these transactions in future periods. We may, however, continue to recognize gains or losses from the disposal of equipment in the ordinary course of business, including losses related to damaged or destroyed equipment.
Provision for income taxes
For the six months ended June 30, 2026, the provision for income taxes was a $2.4 million expense, compared to a $2.7 million expense during the 2025 period. Our annual estimated effective tax rate for 2026 is 30.2%.
Net income
Net income was $5.6 million for the six months ended June 30, 2026, a decrease of $0.3 million, or (5.8)%, compared to $6.0 million for the six months ended June 30, 2025. Net income represented 3.7% of revenue for the 2026 period, compared to 4.9% for the 2025 period. The decrease was primarily attributable to higher selling, general and administrative expense, the unfavorable change in equipment-disposal activity, partially offset by increased gross profit.
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