VIEMED HEALTHCARE, INC.
For the period ended Sep 30, 2026. Filed Nov 4, 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.
Sep 30, 2026 · Filed Nov 4, 2026
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Item 2. Results of Operations
Results of Operations
Comparison of the Three Months Ended September 30, 2026 and 2025:
The following table summarizes our results of operations for the three months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2026 | % of Total Revenue | 2025 | % of Total Revenue | $ Change | % Change | |
| Revenue | $80,673 | 100.0% | $71,914 | 100.0% | $8,759 | 12.2% |
| Cost of revenue | 34,481 | 42.7% | 30,569 | 42.5% | 3,912 | 12.8% |
| Gross profit | 46,192 | 57.3% | 41,345 | 57.5% | 4,847 | 11.7% |
| Selling, general and administrative | 35,508 | 44.0% | 31,919 | 44.4% | 3,589 | 11.2% |
| Research and development | 501 | 0.6% | 775 | 1.1% | (274) | (35.4)% |
| Stock-based compensation | 2,476 | 3.1% | 2,180 | 3.0% | 296 | 13.6% |
| Depreciation and amortization | 392 | 0.5% | 397 | 0.6% | (5) | (1.3)% |
| Loss (gain) on disposal of property and equipment | 412 | 0.5% | 476 | 0.7% | (64) | (13.4)% |
| Other income, net | (59) | (0.1)% | (44) | (0.1)% | (15) | 34.1% |
| Income from operations | 6,962 | 8.6% | 5,642 | 7.8% | 1,320 | 23.4% |
| Non-operating income and expenses | ||||||
| Interest expense, net | 177 | 0.2% | 507 | 0.7% | (330) | (65.1)% |
| Net income before taxes | 6,785 | 8.4% | 5,135 | 7.1% | 1,650 | 32.1% |
| Provision for income taxes | 2,048 | 2.5% | 1,535 | 2.1% | 513 | 33.4% |
| Net income | 4,737 | 5.9% | 3,600 | 5.0% | 1,137 | 31.6% |
| Net income attributable to noncontrolling interest | 99 | 0.1% | 87 | 0.1% | 12 | 13.8% |
| Net income attributable to Viemed Healthcare, Inc. | $4,638 | 5.7% | $3,513 | 4.9% | $1,125 | 32.0% |
Revenue
The following table summarizes our revenue for the three months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2026 | % of Total Revenue | 2025 | % of Total Revenue | $ Change | % Change | |
| Revenue from rentals | ||||||
| Ventilator rentals, non-invasive and invasive | $37,460 | 46.4% | $34,883 | 48.5% | $2,577 | 7.4% |
| Other home medical equipment rentals | 17,414 | 21.6% | 15,401 | 21.4% | 2,013 | 13.1% |
| Revenue from sales and services | ||||||
| Equipment and supply sales | 19,414 | 24.1% | 15,700 | 21.8% | 3,714 | 23.7% |
| Service revenues | 6,385 | 7.9% | 5,930 | 8.3% | 455 | 7.7% |
| Total revenue | $80,673 | 100.0% | $71,914 | 100.0% | $8,759 | 12.2% |
For the three months ended September 30, 2026, total revenue was $80.7 million, an increase of $8.8 million, or 12.2%, compared to the three months ended September 30, 2025. The increase was driven by growth across our rental, equipment and supply sales, and service revenue categories, primarily reflecting continued growth in sleep therapy, complex respiratory care, and women’s health products and services.
Revenue from non-invasive and invasive ventilator rentals increased by $2.6 million, or 7.4%, to $37.5 million for the three months ended September 30, 2026. The increase was primarily attributable to higher average patient volumes, reflecting continued demand for home non-invasive ventilation services. Rental revenue from other home medical equipment increased by $2.0 million, or 13.1%, to $17.4 million for the three months ended September 30, 2026. The increase was driven primarily by growth in PAP therapy and airway-clearance services.
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Equipment and supply sales increased by $3.7 million, or 23.7%, to $19.4 million for the three months ended September 30, 2026. The increase was primarily attributable to higher PAP resupply volumes and continued growth in women’s health product sales, including breast pumps and related supplies. Service revenues, which consist primarily of revenue from our healthcare staffing operations and in-home sleep testing services, increased by $0.5 million, or 7.7%, to $6.4 million for the three months ended September 30, 2026.
Ventilator rentals remained our largest individual source of revenue. However, the growth of PAP therapy and resupply, women’s health, airway-clearance services, and other home medical equipment offerings continued to diversify our revenue mix.
Cost of revenue and gross profit
For the three months ended September 30, 2026, cost of revenue totaled $34.5 million, an increase of $3.9 million, or 12.8%, from the comparable period in 2025. The increase was primarily attributable to higher patient volumes and equipment and supply sales, reflecting continued growth across our sleep therapy, resupply, and women’s health offerings.
Gross profit increased $4.8 million, or 11.7%, to $46.2 million for the three months ended September 30, 2026, compared to $41.3 million in the comparable period in 2025. Gross profit margin remained relatively stable at 57.3% for the three months ended September 30, 2026, compared to 57.5% for the three months ended September 30, 2025. The modest decrease primarily reflected a shift in revenue mix toward equipment and supply sales, which generally carry lower gross margins than equipment rentals but require less capital investment. For the three months ended September 30, 2026, revenue from sales and services represented 32.0% of total revenue, compared to 30.1% in the comparable period in 2025.
Selling, general and administrative expense
Selling, general, and administrative expenses as a percentage of revenue modestly improved to 44.0% for the three months ended September 30, 2026, compared to 44.4% for the three months ended September 30, 2025. Selling, general and administrative expenses totaled $35.5 million for the three months ended September 30, 2026, an increase of $3.6 million, or 11.2%, 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 higher personnel costs and continued investments in technology and operational infrastructure. Employee compensation and related expenses increased $2.4 million, or 11.9%, primarily reflecting increased staffing levels to support growth in patient volumes and business operations. Other factors contributing to the increase included approximately $0.7 million of incremental expenses related to technology and software investments, $0.4 million of increased marketing expenses associated with the expansion of our women's health offerings, and $0.3 million of higher legal and professional fees. These increases were partially offset by approximately $0.8 million of acquisition-related transaction costs incurred in the prior-year period that did not recur in 2026 and a $0.3 million reduction in phantom share compensation expense.
The decrease in selling, general and administrative expenses as a percentage of revenue reflected continued revenue growth and operating leverage, notwithstanding ongoing investments in technology, personnel, and infrastructure to support the expansion of our operations.
Research and development
For the three months ended September 30, 2026, research and development expense totaled $0.5 million, a decrease of $0.3 million, or 35.4%, 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 September 30, 2026, stock-based compensation totaled $2.5 million, an increase of 13.6% from the comparable period in 2025. 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 three months ended September 30, 2026, loss on disposal of property and equipment was $0.4 million, compared to a loss on disposal of property and equipment of $0.5 million for the three months ended September 30, 2025. The losses recognized in both periods primarily related to the disposal of equipment in the ordinary course of business, including equipment that was damaged or destroyed, and similar losses may continue to occur in future periods.
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Provision for income taxes
For the three months ended September 30, 2026, the provision for income taxes was a $2.0 million expense, compared to a $1.5 million expense during the comparable 2025 period. Our annual estimated effective tax rate for 2026 is 30.2%.
Net income
For the three months ended September 30, 2026, net income was $4.7 million, an increase of $1.1 million, or 31.6% from the comparable period in 2025. Net income represented 5.9% of revenue for the 2026 period, compared to 5.0% for the 2025 period. The increase was primarily attributable to higher gross profit resulting from continued revenue growth, partially offset by increased operating expenses and a higher provision for income taxes.
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Comparison of the Nine Months Ended September 30, 2026 and 2025:
The following table summarizes our results of operations for the nine months ended September 30, 2026 and 2025:
| Nine Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2026 | % of Total Revenue | 2025 | % of Total Revenue | $ Change | % Change | |
| Revenue | $234,184 | 100.0% | $194,099 | 100.0% | $40,085 | 20.7% |
| Cost of revenue | 100,117 | 42.8% | 82,744 | 42.6% | 17,373 | 21.0% |
| Gross profit | 134,067 | 57.2% | 111,355 | 57.4% | 22,712 | 20.4% |
| Selling, general and administrative | 107,432 | 45.9% | 89,147 | 45.9% | 18,285 | 20.5% |
| Research and development | 1,584 | 0.7% | 2,419 | 1.2% | (835) | (34.5)% |
| Stock-based compensation | 6,959 | 3.0% | 6,832 | 3.5% | 127 | 1.9% |
| Depreciation and amortization | 1,168 | 0.5% | 1,098 | 0.6% | 70 | 6.4% |
| Loss (gain) on disposal of property and equipment | 1,366 | 0.6% | (2,528) | (1.3)% | 3,894 | (154.0)% |
| Other income, net | (161) | (0.1)% | (191) | (0.1)% | 30 | (15.7)% |
| Income from operations | 15,719 | 6.7% | 14,578 | 7.5% | 1,141 | 7.8% |
| Non-operating income and expenses | ||||||
| Loss from investments | 162 | 0.1% | — | —% | 162 | NM |
| Interest expense, net | 730 | 0.3% | 818 | 0.4% | (88) | (10.8)% |
| Net income before taxes | 14,827 | 6.3% | 13,760 | 7.1% | 1,067 | 7.8% |
| Provision for income taxes | 4,477 | 1.9% | 4,200 | 2.2% | 277 | 6.6% |
| Net income | 10,350 | 4.4% | 9,560 | 4.9% | 790 | 8.3% |
| Net income attributable to noncontrolling interest | 366 | 0.2% | 265 | 0.1% | 101 | 38.1% |
| Net income attributable to Viemed Healthcare, Inc. | $9,984 | 4.3% | $9,295 | 4.8% | $689 | 7.4% |
Revenue
The following table summarizes our revenue for the nine months ended September 30, 2026 and 2025:
| Nine Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2026 | % of Total Revenue | 2025 | % of Total Revenue | $ Change | % Change | |
| Revenue from rentals | ||||||
| Ventilator rentals, non-invasive and invasive | $109,231 | 46.6% | $100,862 | 52.0% | $8,369 | 8.3% |
| Other home medical equipment rentals | 50,020 | 21.4% | 42,199 | 21.7% | 7,821 | 18.5% |
| Revenue from sales and services | ||||||
| Equipment and supply sales | 55,873 | 23.9% | 32,720 | 16.9% | 23,153 | 70.8% |
| Service revenues | 19,060 | 8.1% | 18,318 | 9.4% | 742 | 4.1% |
| Total revenue | $234,184 | 100.0% | $194,099 | 100.0% | $40,085 | 20.7% |
For the nine months ended September 30, 2026, total revenue was $234.2 million, an increase of $40.1 million, or 20.7%, compared to the nine months ended September 30, 2025. The increase was driven by growth across our rental, equipment and supply sales, and service revenue categories, primarily reflecting continued expansion of our sleep therapy, complex respiratory care, and women’s health offerings, as well as the inclusion of nine months of revenue from Lehan Drugs, Inc. (“Lehan”) compared to three months in the prior-year period.
Revenue from non-invasive and invasive ventilator rentals increased by $8.4 million, or 8.3%, to $109.2 million for the nine months ended September 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 $7.8 million, or 18.5%, to $50.0 million for the nine months ended September 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 $23.2 million, or 70.8%, to $55.9 million for the nine months ended September 30, 2026. The increase was primarily attributable to the additional contribution from Lehan, continued growth in women’s health product sales, including breast pumps and related supplies, and higher PAP resupply volumes reflecting expansion of 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 $0.7 million, or 4.1%, to $19.1 million for the nine months ended September 30, 2026.
Ventilator rentals remained our largest individual source of revenue. However, continued growth across PAP therapy and resupply, women’s health, airway-clearance services, and other home medical equipment offerings further diversified our revenue mix, with ventilator rentals representing 46.6% of total revenue compared to 52.0% in the prior-year period.
Cost of revenue and gross profit
For the nine months ended September 30, 2026, cost of revenue totaled $100.1 million, an increase of $17.4 million, or 21.0%, from the comparable period in 2025. The increase was primarily attributable to higher patient volumes and equipment and supply sales, reflecting continued growth across our sleep therapy, resupply, and women's health offerings, as well as the inclusion of nine months of Lehan operations compared to three months in the prior-year period.
Gross profit increased $22.7 million, or 20.4%, to $134.1 million for the nine months ended September 30, 2026, compared to $111.4 million in the comparable period in 2025. Gross profit margin remained relatively stable at 57.2%, compared to 57.4% in the prior-year period. The modest decrease primarily reflected a shift in revenue mix toward equipment and supply sales, which generally carry lower gross margins than equipment rentals but require less capital investment. For the nine months ended September 30, 2026, revenue from sales and services represented 32.0% of total revenue, compared to 26.3% in the comparable period in 2025.
Selling, general and administrative expense
Selling, general, and administrative expenses as a percentage of revenue were unchanged at 45.9% for the nine months ended September 30, 2026 and September 30, 2025. Selling, general and administrative expenses totaled $107.4 million for the nine months ended September 30, 2026, an increase of $18.3 million, or 20.5%, from the comparable period in 2025.
The increase in selling, general and administrative expense was primarily attributable to costs incurred to support continued business growth, including the additional six months of Lehan operations compared to the prior-year period. Employee compensation and related expenses increased approximately $9.9 million, primarily reflecting higher staffing levels to support increased patient volumes and expanded operations. Other contributing factors included $1.6 million of higher billing expenses associated with increased claims volume, $1.8 million of higher technology and software expenses, $1.1 million of increased marketing expenses, and $1.0 million of higher phantom share compensation expense, primarily driven by changes in our share price. These increases were partially offset by approximately $0.9 million of lower acquisition-related transaction costs.
Selling, general and administrative expenses remained consistent as a percentage of revenue, reflecting continued revenue growth while supporting investments in personnel, technology, and operating capacity.
Research and development
For the nine months ended September 30, 2026, research and development expense totaled $1.6 million, a decrease of $0.8 million, or 34.5%, from $2.4 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 nine months ended September 30, 2026, stock-based compensation totaled $7.0 million, an increase of 1.9% from the comparable period in 2025. 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 nine months ended September 30, 2026, loss on disposal of property and equipment totaled $1.4 million, compared to a gain on disposal of property and equipment of $2.5 million for the nine months ended September 30, 2025. The gain recognized in the prior-year period was primarily attributable to proceeds received from the sale of recalled ventilators to the manufacturer in excess of their net book value. The loss recognized in 2026 primarily reflected equipment disposals in the ordinary course of business.
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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 nine months ended September 30, 2026, the provision for income taxes was a $4.5 million expense, compared to a $4.2 million expense during the 2025 period. Our annual estimated effective tax rate for 2026 is 30.2%.
Net income
Net income was $10.4 million for the nine months ended September 30, 2026, an increase of $0.8 million, or 8.3%, compared to $9.6 million for the nine months ended September 30, 2025. Net income represented 4.4% of revenue for the 2026 period, compared to 4.9% for the 2025 period. The increase in net income was primarily attributable to higher gross profit resulting from continued revenue growth, partially offset by increased selling, general and administrative expenses and the absence of gains associated with the ventilator buyback program recognized in the prior-year period.
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