Sign in

You're signed outSign in or to get full access.

VH

VIEMED HEALTHCARE, INC. (VMD)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered record net revenue of $63.1M (+14.7% YoY), diluted EPS of $0.08, and Adjusted EBITDA of $14.3M; gross margin was 58% vs 56% in Q1 and 60% in Q2 2024 .
  • Against S&P Global consensus, revenue ($63.1M vs $63.5M*) and EPS ($0.08 vs $0.09*) were modest misses; Adjusted EBITDA was strong but note the definition mismatch vs S&P’s EBITDA consensus* .
  • Management raised FY25 guidance to $271–$277M revenue and $59–$62M Adjusted EBITDA, primarily reflecting the Lehan’s Medical acquisition closing July 1; sequential organic growth of 5–9% is expected in H2 .
  • Capital allocation remains proactive: 270,061 shares repurchased for $1.8M in Q2 (avg $6.79) and additional repurchases in Q3; liquidity remains robust with $20.0M cash and $55M undrawn credit facilities .

What Went Well and What Went Wrong

  • What Went Well

    • Solid execution with record Q2 revenues and strong margin stability; Adjusted EBITDA up 12% YoY, margin 22.7% consistent with full-year outlook .
    • Sleep therapy accelerated: PAP therapy patients +51% YoY and +15% QoQ; sleep resupply +25% YoY and +10% QoQ; new sleep patient starts +72% YoY, supporting H2 resupply growth .
    • Regulatory tailwinds: Final NCD ending step therapy in MA plans reduces operational burden and is expected to favor scaled providers; Viemed’s tech-enabled care manager platform supports compliance (“the tried and failed approach … is over”) .

  • What Went Wrong

    • Modest miss vs consensus on EPS ($0.08 vs $0.09*) and revenue ($63.1M vs $63.5M*); EBITDA comparison versus S&P uses a different definition than company’s Adjusted EBITDA* .
    • Staffing saw its first sequential slowdown from softened labor demand, with expectations for normalized pacing and back-half appropriations to support recovery .
    • Gross margin down YoY (58% vs 60% in Q2 2024) due to mix shift towards capex-light businesses; management emphasizes SG&A leverage over gross margin relevance .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$54.965 $59.129 $63.056
Diluted EPS ($USD)$0.04 $0.06 $0.08
Gross Profit ($USD Millions)$32.892 $33.279 $36.731
Gross Profit Margin (%)60% 56% 58%
Adjusted EBITDA ($USD Millions)$12.813 $12.765 $14.287
Adjusted EBITDA Margin (%)23.3% 21.6% 22.7%

Segment revenue breakdown

SegmentQ2 2024 ($USD Millions)Q1 2025 ($USD Millions)Q2 2025 ($USD Millions)
Ventilator rentals (NIV & invasive)$30.445 $32.159 $33.819
Other HME rentals$12.211 $12.962 $13.823
Equipment & supply sales$7.378 $7.519 $9.514
Service revenues$4.931 $6.489 $5.900
Total net revenue$54.965 $59.129 $63.056

Operational KPIs

KPIQ2 2024Q1 2025Q2 2025
Vent Patients (units)10,905 11,809 12,152
PAP Therapy Patients (units)17,349 22,899 26,260
Sleep Resupply Patients (units)20,185 22,941 25,246

Capex and Liquidity

MetricQ2 2024Q1 2025Q2 2025
Net Capex ($USD Thousands)8,168 8,530 1,727
Cash and Cash Equivalents ($USD Thousands)8,807 10,160 20,016
Working Capital ($USD Thousands)—13,633 18,021
Long-Term Debt ($USD Thousands)—3,530 3,465
Credit Facility Availability ($USD Millions)—55 55

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Revenue ($USD Millions)FY 2025$256–$265 $271–$277 Raised
Adjusted EBITDA ($USD Millions)FY 2025$55–$58 $59–$62 Raised
Directional cadenceFY 2025YY growth consistent; sequential growth Q2–Q4 5–9%; capex elevated 1H Reaffirm organic sequential revenue growth of 5–9% in Q3–Q4; capex to normalize in H2 Maintained/clarified

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 & Q1 2025)Current Period (Q2 2025)Trend
Regulatory/NCD for NIVCMS engaged; evidence-driven; state-level wins vs step therapy Final NCD ends step therapy in MA; usage metrics required; scaled providers advantaged Positive regulatory clarity
Competitive bidding/tariffsTariffs not impacting 2025; contracts locked; focus on efficiency Competitive bidding earliest 2027–2029; sophisticated providers favored; tariffs still immaterial Watchful, no near-term impact
Product performance (vent)Vent patients up 16th straight quarter; +10% YoY vent revenue Vent revenue +5% QoQ, +11% YoY; 17th straight quarter of patient growth Steady core growth
Product performance (sleep/resupply)PAP setups +40% YoY; resupply seasonal dip; strong pipeline PAP patients +51% YoY; new starts +72% YoY; resupply +25% YoY Accelerating
StaffingGrew to ~10% of revenue; behavioral health focus First sequential slowdown; normalization expected; appropriations underpin H2 Normalizing
M&A/Lehan’s MedicalAgreement signed; $26M purchase price; FY24 $25.7M revenue, $7.4M EBITDA Closed July 1; guidance raised to include 2H contribution; maternal health expansion Integration underway
Technology enablementHigh-touch, technology-enabled approach highlighted Care manager platform supports NCD compliance Strategic capability

Management Commentary

  • “Viemed’s focus as a company is on improving the quality of life for patients with compassionate care in the home… now women’s health driven by our acquisition of Lehan’s.”
  • “The solid execution of our vent and sleep businesses – together with continued leveraging of expenses – produced second quarter results that met our expectations and kept us on track for our organic growth targets in 2025.”
  • “The big win is that tried and failed approach on BiPAP and step therapy is over… all the MA plans will have to follow the NCD.”
  • “Our view is that the more sophisticated providers tend to succeed in the competitive bidding environment… earliest it could take effect is 2027.”
  • “We sustained impressive growth on our core in-home ventilation business… we’re seeing even faster growth in our complementary… sleep and resupply.”

Q&A Highlights

  • Ventilator exchange program: Philips buybacks generated gains above net book value and refreshed fleet lifespan; newer devices reduce maintenance, add connectivity features .
  • Sleep growth drivers: Broadening sales participation and operational improvements; GLP-1 era may be increasing sleep health focus; resupply growth expected with lag .
  • Staffing dynamics: Sequential slowdown tied to state behavioral/social services demand timing; H2 appropriations expected to support normalized pace .
  • Capital strategy: $1.8M repurchases in Q2; Lehan’s funded with $9M cash + $18M revolver; plan to pay down borrowings opportunistically alongside buybacks .
  • Regulatory stance: NCD changes positive; industry education ongoing; competitive bidding timeline suggests no near-term impact .

Estimates Context

Values retrieved from S&P Global.*

MetricQ1 2025 Consensus*Q1 2025 ActualQ2 2025 Consensus*Q2 2025 Actual
Revenue ($USD Millions)$60.6*$59.129 $63.5*$63.056
Diluted EPS ($USD)$0.06*$0.06 $0.09*$0.08
EBITDA ($USD Millions)$11.9*$8.171*$14.2*$11.403*
  • Q2 2025 revenue and EPS were modest misses versus consensus; Adjusted EBITDA (company-defined) was $14.3M, while S&P’s EBITDA measure differs in methodology from company’s Adjusted EBITDA .
  • FY25 consensus sits near the raised company guidance: revenue ~$272.1M* and EBITDA ~$60.7M*, suggesting expectations already reflect Lehan’s contribution.

Key Takeaways for Investors

  • Sequential and YoY momentum intact across core vent and faster-growing sleep/resupply; expect continued organic sequential revenue growth of 5–9% in Q3–Q4 .
  • Guidance raise is a key catalyst, with Lehan’s adding maternal health and expanding respiratory/sleep footprint; integration progress supports confidence .
  • Slight EPS/revenue miss vs consensus should be weighed against durable KPIs and margin stability; mix-shift lowers gross margin but enhances SG&A leverage and cash generation .
  • Balance sheet optionality supports buybacks and M&A while maintaining low net leverage; $55M availability provides flexibility .
  • Regulatory environment turning favorable (NCD final rule) may advantage scaled operators and create consolidation opportunities; Viemed’s tech platform is a differentiator .
  • Watch staffing normalization and service revenue cadence; management signals H2 appropriations tailwind .
  • Near-term trading: Raised guidance and ongoing buybacks are supportive; medium-term thesis: diversified growth engines (sleep/resupply, maternal health) plus resilient vent core and regulatory tailwinds.