Largest kidney care research arm advances science to inform care delivery DENVER, Aug. 27, 2025 /PRNewswire/ -- As part of its 25th-anniversary celebration, DaVita, a leading provider of comprehensive kidney care, is proud to spotlight the groundbreaking work of its wholly owned research arm, DaVita Clinical Research (DCR). For a quarter-century, DCR has played a pivotal role in advancing kidney care — driving access to new therapies, improving clinical outcomes and shaping the future of nephrology through ...

Core Insights - Triba Research aims to identify high-quality businesses capable of delivering sustainable, double-digit returns over the long term [1] - The firm's strategy emphasizes companies with strong competitive advantages, operating in growing markets, maintaining low debt levels, and led by skilled management teams [1] - Triba Research prioritizes long-term value creation while staying informed about the latest market developments [1]

Core Insights - Berkshire Hathaway, led by Warren Buffett, has resumed selling its largest holding, Apple, and has further reduced its stake in Bank of America while making significant investments in UnitedHealth and revealing new positions in Nucor and two real estate stocks [1][8][12]. Investment Actions - In Q2, Berkshire purchased approximately 5.04 million shares of UnitedHealth, with a market value of about $1.57 billion, making it the 18th largest holding [2][15]. - The "mystery" holding Nucor Steel was revealed, with Berkshire acquiring 6.61 million shares valued at over $857 million, ranking as the 25th largest holding [3][5]. - Berkshire also bought around 7.05 million shares of Lennar, valued at approximately $780 million, and over 1.48 million shares of D.R. Horton, valued at about $191 million [6][7]. Reductions in Holdings - Berkshire reduced its Apple holdings by 20 million shares, a decrease of 6.67%, bringing its total to approximately 280 million shares, with a market value reduction of $4.1 billion [8][10]. - The stake in Bank of America was cut by about 26.31 million shares, a 4.71% decrease, with a market value reduction of $1.24 billion [11][12]. - Berkshire completely exited its position in T-Mobile, selling 3.88 million shares [13]. Portfolio Composition - By the end of Q2, Apple's holding represented 22.31% of Berkshire's portfolio, while Bank of America accounted for 11.12% [10][11]. - Chevron was the only stock among the top ten holdings to see an increase, with Berkshire adding 3.45 million shares, although its percentage of the portfolio decreased from 7.69% to 6.79% due to a decline in stock price [19]. Market Reactions - Following the disclosure of Berkshire's investment in UnitedHealth, the stock price surged over 9% in after-hours trading [16].

Group 1 - Warren Buffett's Berkshire Hathaway reported a significant asset write-down of $3.8 billion on its investment in Kraft Heinz, reducing its book value to $8.4 billion from over $17 billion at the end of 2017 [4] - Despite the apparent loss, an analysis revealed that Buffett had secured nearly 60% profit due to favorable terms negotiated during the transaction, showcasing his ability to turn a perceived failure into a profitable outcome [4][5] - Buffett's investment philosophy emphasizes long-term value and strategic positioning, which has allowed him to navigate market fluctuations effectively [5] Group 2 - Buffett's cautious outlook on the current U.S. stock market is evident, as he believes the S&P 500's price-to-earnings ratio exceeding 30 indicates inflated growth expectations, suggesting potential historical investment opportunities in the next five years [16] - Berkshire Hathaway's cash reserves reached a record high of $344 billion, providing a robust buffer against market volatility as Buffett prepares to pass the reins to his successor, Greg Abel [21] - The company holds a diversified portfolio, with significant investments in Apple, American Express, and Coca-Cola, which together account for over 50% of its stock investment portfolio [18][19] Group 3 - Buffett's investment strategy includes a focus on companies with strong fundamentals, as evidenced by his long-term holdings in Coca-Cola and Apple, which have shown resilience and growth despite market challenges [27][29] - The investment approach is characterized by a preference for businesses with a competitive edge and sustainable cash flow, avoiding speculative trends such as AI investments that do not align with his expertise [20][32] - Buffett's principles emphasize the importance of understanding the intrinsic value of investments, advocating for a long-term perspective rather than short-term speculation [28][30] Group 4 - Buffett's philanthropic efforts include significant donations to charitable causes, particularly the Gates Foundation, reflecting his belief in responsible wealth distribution and opposition to hereditary wealth [36] - His lifestyle remains modest despite immense wealth, highlighting a commitment to simplicity and frugality, which has become a notable aspect of his public persona [36]

Core Insights - DaVita Inc. reported adjusted earnings per share (EPS) of $2.95 for Q2 2025, reflecting a year-over-year increase of 13.9% and exceeding the Zacks Consensus Estimate by 9.3% [1][9] - Total revenues reached $3.38 billion, marking a 6.1% increase year-over-year and surpassing the Zacks Consensus Estimate by 1.3% [2][9] - The company experienced a decline in normalized non-acquired treatments, which decreased by 0.8% year-over-year [5][14] Financial Performance - The gross profit for the quarter increased by 7% year-over-year to $1.12 billion, with a gross margin expansion of 31 basis points to 33.1% [8][9] - General and administrative expenses rose by 12.2% year-over-year to $412.8 million [8] - Adjusted operating profit was $705.2 million, reflecting a 4.2% increase from the prior year, although the adjusted operating margin contracted by 36 basis points to 20.9% [8][9] Revenue Breakdown - Dialysis patient service revenues amounted to $3.21 billion, up 4.8% year-over-year, while other revenues surged by 37.4% to $172.7 million [4][9] - Revenue per treatment was $404.6 million, an increase of 3.7% year-over-year [2] Operational Highlights - DaVita provided dialysis services to approximately 283,100 patients across 3,175 outpatient dialysis centers as of June 30, 2025 [5] - The company opened three new dialysis centers and closed two in the U.S., while internationally, it opened six and closed five centers during the same period [6] Cash Flow and Debt - DaVita ended Q2 2025 with cash and cash equivalents of $739.4 million, an increase from $511.9 million at the end of Q1 2025 [10] - Total debt rose to $10.26 billion from $9.74 billion at the end of Q1 2025 [10] - Cumulative net cash provided by operating activities was $504.2 million, down from $664 million a year ago [11] Guidance - The company reiterated its adjusted EPS outlook for 2025, projecting a range of $10.20 to $11.30, with the Zacks Consensus Estimate currently at $10.76 [12]

Financial Data and Key Metrics Changes - Adjusted operating income for Q2 2025 was $551 million, and adjusted earnings per share were $2.95, with free cash flow at $157 million [16][15] - The company reaffirmed its guidance for adjusted operating income between $2.01 billion and $2.16 billion and adjusted earnings per share between $10.20 and $11.30 for the full year [14][15] Business Line Data and Key Metrics Changes - US treatments per day declined by 1.1% year-over-year, primarily due to a higher than expected mistreatment rate, which was influenced by the cyber incident [17][30] - Revenue per treatment (RPT) increased by approximately $4.5 compared to Q1, but was negatively impacted by the cyber incident and lower dispensing volumes of binders [18][19] - Patient care costs per treatment decreased by approximately $3.5 sequentially, attributed to higher treatment counts, improved labor productivity, and lower binder dispensing volumes [20][21] Market Data and Key Metrics Changes - The company anticipates a year-over-year decline in treatment volume of 75 to 100 basis points, revised from a previous estimate of down 50 basis points [17][18] - International adjusted operating income increased by $6 million compared to Q1, primarily due to a one-time benefit [21] Company Strategy and Development Direction - The company is focused on clinical innovation and improving patient outcomes through advanced technologies and pharmaceuticals, including new drug classes and next-generation devices [6][7] - The company is committed to maintaining operational excellence and cost control, which is expected to continue even as treatment volumes normalize [76][77] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering a new wave of clinical innovation that could improve patient care and outcomes [6][7] - The company acknowledged the ongoing impact of the cyber incident but believes that the effects on adjusted results will be limited moving forward [11][30] Other Important Information - The company repurchased 3.1 million shares during Q2 and an additional 2.7 million shares since the end of the quarter [23] - The company raised $1 billion in senior unsecured debt and repriced its term loan, reducing the spread by 25 basis points [23] Q&A Session Summary Question: How did census and treatments track following the cyber attack? - Management indicated that while there were initial challenges, operations have normalized since the incident, but mistreatment rates spiked unexpectedly [30][31] Question: Can you provide phosphate binder contribution to RPT and CPT in the quarter? - The RPT contribution was in the low eights, and CPT was in the high sixes, with lower dispensing volumes attributed to adherence issues rather than a mix problem [34][35] Question: How is the company maintaining guidance despite treatment growth challenges? - The company is managing costs effectively, particularly in labor, and has seen better-than-expected performance in international operations [41][42] Question: What is the reason for the elevated mortality rates? - Management believes the elevated mortality is a holdover from COVID, with delays in care and sicker patients contributing to the trend [71][72] Question: What is the expected impact of new technologies on patient care? - The company is actively monitoring and conducting studies on new technologies, with a focus on improving patient outcomes through better clearance of middle-sized molecules [90][91]

Financial Data and Key Metrics Changes - Adjusted operating income for the second quarter was $551 million, and adjusted earnings per share were $2.95, with free cash flow at $157 million [14][22] - The company reaffirmed its guidance range for adjusted operating income of $2.01 billion to $2.16 billion and adjusted earnings per share of $10.20 to $11.30 for the year [23] Business Line Data and Key Metrics Changes - US treatments per day declined by 1.1% year-over-year, primarily due to a higher than expected mistreatment rate, which was influenced by the cyber incident [15][16] - Revenue per treatment increased by approximately $4.5 compared to the first quarter, but was negatively impacted by the cyber incident and lower dispensing volumes of binders [17][18] - Patient care costs per treatment declined by approximately $3.5 sequentially, attributed to higher treatment counts, improved labor productivity, and lower binder dispensing volumes [19][20] Market Data and Key Metrics Changes - International adjusted operating income increased by $6 million compared to the first quarter, primarily due to a one-time benefit [21] - Integrated Kidney Care (IKC) had adjusted operating income of $26 million in the second quarter, benefiting from approximately $40 million of revenue expected to be recognized later in the year [21] Company Strategy and Development Direction - The company is focused on clinical innovation and improving patient outcomes through advanced technologies and new drug classes [6][14] - The management emphasized the importance of operational excellence and cost management to navigate challenges and maintain financial performance [22][76] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about entering a new wave of clinical innovation that could improve patient care and outcomes [5][6] - The company acknowledged the ongoing impact of the cyber incident but believes the effects on adjusted results will be limited moving forward [11][52] Other Important Information - The company reported a leverage ratio of 3.34 times consolidated EBITDA, which is within its target range [22] - The management highlighted the need for better clearance of middle-sized molecules and increased patient adherence to medications as key areas for improving patient outcomes [46][70] Q&A Session Summary Question: How did census and treatments track following the cyber attack? - Management indicated that while there were initial challenges, operations have normalized since the incident, but mistreatment rates spiked unexpectedly [26][28] Question: What contributed to the lower dispensing volumes of phosphate binders? - The reduction was attributed to a decrease in the number of prescriptions rather than a mix issue, with some patients obtaining binders through other means [30][31] Question: How is the company maintaining operating income guidance despite treatment growth challenges? - The primary driver is cost per treatment, particularly labor dynamics in US dialysis, along with better-than-expected international performance [38][39] Question: What is the outlook for Integrated Kidney Care (IKC) in the back half of the year? - IKC is expected to be roughly breakeven for the first half of the year, with guidance for a negative $20 million in the back half [95] Question: What is the impact of the cyber incident on revenue per treatment? - The cyber incident affected revenue for treatments done in Q2 due to manual processes and delays, which are not expected to impact the second half of the year [51][52] Question: What are the expectations for patient care costs moving forward? - The main driver for performance is productivity, with improved retention and training effectiveness contributing to lower costs [79] Question: How does the company plan to address elevated mortality rates? - Management believes the elevated mortality is a holdover from COVID, and they are implementing strategies to improve patient outcomes gradually [70][72]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 1-14106 DAVITA INC. Delaware 51-0354549 (State of incorporation) (I.R.S. Employer Identification No.) 2000 16th Street ...

Contact: Investor Relations DaVita Inc. ir@davita.com DaVita Inc. 2nd Quarter 2025 Results Denver, Colorado, August 5, 2025 — DaVita Inc. (NYSE: DVA) announced financial and operating results for the quarter ended June 30, 2025. "We're reporting another solid quarter, fueled by our unwavering focus on patient care," said Javier Rodriguez, CEO of DaVita Inc. "We continued to deliver exceptional clinical outcomes for our patients, fostered a positive experience for our caregivers, and delivered on our financi ...

Core Insights - DaVita Inc. reported strong financial results for the quarter ended June 30, 2025, highlighting a focus on patient care and operational efficiency [1] Financial Performance - Net income attributable to DaVita Inc. for Q2 2025 was $199 million, compared to $163 million in Q1 2025 and $362 million in Q2 2024 [2] - Diluted earnings per share increased to $2.58 from $2.00 in Q1 2025, but decreased from $5.15 in Q2 2024 [2] - Adjusted net income for Q2 2025 was $228 million, up from $163 million in Q1 2025, but down from $434 million in Q2 2024 [2] - Consolidated revenues for Q2 2025 reached $3.380 billion, compared to $3.224 billion in Q1 2025 and $3.186 billion in Q2 2024 [9] Operating Metrics - Operating income for Q2 2025 was $538 million, with an operating margin of 15.9%, compared to 13.6% in Q1 2025 [3][29] - Adjusted operating income was $551 million, reflecting an adjusted operating margin of 16.3% [3] - Total U.S. dialysis treatments in Q2 2025 were 7,186,217, averaging 92,131 treatments per day, a 0.4% increase from Q1 2025 [4][31] Cost Analysis - Revenue per treatment increased to $404.58 in Q2 2025 from $400.14 in Q1 2025, while patient care costs per treatment decreased to $268.36 from $271.77 [5][31] - General and administrative expenses rose to $312 million in Q2 2025 from $283 million in Q1 2025, primarily due to cybersecurity incident-related costs [5][7] Cybersecurity Incident - The company incurred approximately $13.5 million in charges related to a cybersecurity incident, impacting patient care costs by $1 million and general administrative expenses by $12.5 million [10] Share Repurchase and Debt Management - DaVita repurchased 3.1 million shares for $446 million at an average price of $144.00 per share during Q2 2025 [12] - The company issued $1 billion in senior notes to repay outstanding debt and enhance liquidity [11] Patient Care and Center Activity - As of June 30, 2025, DaVita provided dialysis services to approximately 283,100 patients across 3,175 outpatient dialysis centers [15] - The company had about 64,400 patients in risk-based integrated care arrangements, representing approximately $5.3 billion in annualized medical spend [16]