Viemed Healthcare Stock Earnings Reports

Viemed reported a strong Q3 2025 with record revenue of $71.9M (up 24% YoY, 14% sequential) and adjusted EBITDA of $16.1M (22.4% margin). The quarter included a full-period contribution from the Lehan's Medical Equipment acquisition, which expanded headcount to 1,386 and added breast pump/maternity and additional sleep patients. Ventilation revenue grew double-digit but for the first time accounts for less than half of company net revenue, reflecting meaningful diversification as sleep, staffing and maternity gain share. Key operational highlights: new sleep patient starts +96% YoY, resupply population +51% YoY (and now larger than PAP rental base), PAP therapy patients +64% YoY, gross margin 57.5%, SG&A improving to 44.4% of revenue, and net income $3.5M ($0.09/share). Trailing 12-month free cash flow was $23.3M. CapEx was $7.6M (net $6M) and funded from cash flow. Balance sheet remains healthy with $11.1M cash, $19.6M long-term debt (subsequently reduced), and $38M available on credit lines. Management completed the 2025 share repurchase (nearly 2M shares at ~$6.69 avg), views buybacks as a capital return lever, and expects to invest further in AI-driven revenue cycle and intake tools to improve efficiency. Guidance narrowed: 2025 revenue now $271M–$273M and adjusted EBITDA $60M–$62M. Risks/near-term items: implementation of new national coverage determination for at-home ventilation and ongoing payer/audit dynamics, though management expects regulatory changes (including a favorable Medicare Advantage court decision) to improve access and MA payment flows. Management emphasized disciplined capital allocation (debt paydown, acquisitions, buybacks) and a national rollout of maternity in 2026.