Core Viewpoint - DaVita projected annual profit above estimates following better-than-expected fourth-quarter results driven by steady demand for kidney dialysis services, resulting in a 13% increase in shares [1] Group 1: Financial Performance - DaVita reported fourth-quarter results that exceeded expectations, indicating strong operational performance [1] - The company’s projected annual profit is now above market estimates, reflecting confidence in future earnings [1] Group 2: Market Reaction - Following the announcement of the positive quarterly results and profit projections, DaVita's shares experienced a significant increase of 13% in after-hours trading [1]

Financial Performance - Consolidated revenues for Q4 2025 were $3.620 billion, and for the full year 2025, revenues totaled $13.643 billion[5]. - Net income from continuing operations for Q4 2025 was $209 million, with diluted earnings per share of $2.94; for the full year 2025, net income was $722 million, with diluted earnings per share of $9.51[4]. - Adjusted net income from continuing operations for Q4 2025 was $242 million, with adjusted diluted earnings per share of $3.40; for the full year 2025, adjusted net income was $818 million, with adjusted diluted earnings per share of $10.78[5]. - Total revenues for the year ended December 31, 2025, were $13,643,069, up 6.4% from $12,815,550 in 2024[27]. - Net income for the year ended December 31, 2025, was $1,078,716, a decrease of 13.7% from $1,250,737 in 2024[29]. - Operating income for Q4 2025 was $561,070, slightly down from $565,362 in Q4 2024[27]. - The company reported a total operating income of $2,044 million for the year ended December 31, 2025, compared to $2,090 million in 2024[56]. Cash Flow and Expenses - Operating cash flow for Q4 2025 was $541 million, and free cash flow was $309 million; for the full year 2025, operating cash flow was $1,887 million, and free cash flow was $1,024 million[5]. - Cash flows from operating activities for the year ended December 31, 2025, were $1,886,500, down from $2,022,038 in 2024, a decrease of 6.7%[31]. - Free cash flow for the three months ended December 31, 2025, was $309 million, a decrease from $604 million in the prior quarter but an increase from $281 million in the same period last year[61]. - Net cash provided by operating activities for the twelve months ended December 31, 2025, was $1.887 billion, a slight decrease from $1.893 billion for the previous quarter[62]. - Maintenance capital expenditures were $412 million, compared to $423 million in the previous quarter[62]. - Development capital expenditures amounted to $164 million, down from $178 million in the previous quarter[62]. Patient Care and Treatment - Total U.S. dialysis treatments for Q4 2025 were 7,264,520, averaging 91,608 treatments per day, a decrease of 0.1% compared to Q3 2025[7]. - Revenue per treatment in Q4 2025 was $422.60, an increase of $12.01 from Q3 2025; patient care costs per treatment were $279.60, an increase of $6.06[8]. - Dialysis patient service revenues for Q4 2025 reached $3,399,232, a 9% increase from $3,119,180 in Q4 2024[27]. - The number of treatments in Q4 2025 was 7,264,520, showing a slight increase from 7,242,725 in Q3 2025, while average treatments per day remained stable at approximately 91,608[35]. - The company reported a normalized year-over-year non-acquired treatment growth of (0.6)% for Q4 2025, indicating challenges in organic growth[35]. Strategic Initiatives and Future Outlook - The company expects adjusted operating income for 2026 to be between $2.085 billion and $2.235 billion, with adjusted diluted net income per share projected between $13.60 and $15.00[20]. - DaVita Inc. is focused on strategic initiatives related to integrated kidney care (IKC) and value-based care (VBC) to enhance operational efficiency[25]. - The company anticipates potential impacts from the One Big Beautiful Bill Act (OBBBA) and changes in federal government policies affecting reimbursement rates[23]. - The company faces risks from supply chain disruptions and increased competition in the dialysis market, which may affect future performance[25]. Shareholder Actions and Financial Adjustments - DaVita repurchased 2.7 million shares for $331 million at an average price of $122.78 per share during Q4 2025[13]. - The company incurred impairment and restructuring charges of $20.5 million related to its investment in Mozarc Medical Holding LLC during Q4 2025[12]. - The company experienced a net loss of $34 million related to Mozarc for the year ended December 31, 2025, which affected overall financial performance[53]. - The company incurred $25 million in legal matter charges during the year ended December 31, 2025, impacting adjusted operating income[56]. Balance Sheet and Liabilities - Total liabilities increased to $16,321,665 as of December 31, 2025, compared to $15,193,917 in 2024, an increase of 7.4%[33]. - Total debt as of December 31, 2025, was $10,345 million, slightly up from $10,310 million at the end of Q3 2025, with a leverage ratio of 3.26x[37]. - Accounts receivable increased to $2,414,690 as of December 31, 2025, from $2,146,975 in 2024, reflecting a rise of 12.5%[33]. - Cash, cash equivalents, and restricted cash at the end of the period were $757,747, down from $879,825 at the beginning of the year, a decrease of 13.8%[31]. Tax and Compliance - The effective income tax rate on income from continuing operations attributable to DaVita Inc. was 27.7% for the three months ended December 31, 2025, down from 31.3% in the previous quarter[34]. - The effective income tax rate on income from continuing operations attributable to DaVita Inc. was 27.7% for the three months ended December 31, 2025, compared to 31.3% for the previous quarter[59].

Financial and operating highlights for the quarter and year ended December 31, 2025: | Three months ended | Year ended December 31, | | | | | --- | --- | --- | --- | --- | | December 31, 2025 | September 30, 2025 | 2025 | 2024 | | | Net income attributable to DaVita | (dollars in millions, except per | | | | | Inc.: | share data) | | | | | Net income from continuing | $ 209 | $ | $ | $ | | operations | | 150 | 722 | 936 | | Diluted per share from continuing | $ 2.94 | $ | $ | $ | | operations | | 2.04 | 9.5 ...

Core Viewpoint - Elara Caring has entered into a strategic investment agreement with Ares' Private Equity Group and DaVita to enhance access to personalized, clinically advanced home care for patients with complex and acute needs [1][2]. Company Overview - Elara Caring is a leading national provider of skilled home health, hospice, behavioral health, and personal care services, operating in 18 states and serving over 60,000 patients daily across 200 locations [6]. - The company is committed to quality and a patient-first culture, focusing on delivering care when and where patients need it most [6]. Investment Details - The investment aims to support Elara's growth by expanding its capacity for specialized in-home care and launching innovative care models [2]. - Ares brings experience in growing high-performing healthcare businesses, while DaVita contributes clinical and operational expertise in value-based care, positioning Elara to improve outcomes and address gaps in post-acute care [2][3]. Collaborative Efforts - Elara and DaVita plan to co-develop a kidney-specific home-based care model, leveraging Elara's clinical capabilities and DaVita's insights to reduce preventable hospitalizations and lower total care costs [3][4]. - This collaboration aims to provide patients with tailored support at home and ensure continuity of care [3]. Expected Outcomes - The partnership is expected to enhance patient outcomes by providing timely and personalized care, ultimately improving quality of life and reducing unnecessary hospitalizations [4]. - The transaction is subject to customary closing conditions and regulatory approvals, with an expected closing date later in 2026 [4].

Core Viewpoint - DaVita Inc. is expected to report its fourth-quarter 2025 results on February 2, 2026, with a focus on operational execution and seasonal normalization impacting performance [1][3][6]. Performance Factors - The fourth-quarter performance is anticipated to benefit from improved treatment volumes, a favorable treatment-day mix, and the absence of previous disruptions [3]. - Management has indicated expectations for higher revenue per treatment due to routine rate adjustments, vaccine-related revenues, and the resolution of aged claims [3][4]. - Cost discipline is expected to support results, with ongoing investments in technology and operational efficiency aimed at enhancing productivity despite higher near-term expenses [4][19][20]. Challenges - Elevated mortality rates and higher missed treatment frequencies are likely to continue affecting volume growth [5]. - Variability in payer mix and increased pharmaceutical usage may temper margin expansion [5][21]. Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter 2025 revenues is $3.53 billion, reflecting a 6.9% increase from the prior year [7]. - The consensus estimate for EPS is $3.24, indicating a 44.6% increase from the previous year [7]. Stock Performance - DaVita's shares have decreased by 9.6% over the past three months, underperforming both the Medical - Outpatient and Home Healthcare sector and the broader market [11][15]. - The company currently holds a Zacks Rank of 3, indicating a hold position [10]. Valuation Metrics - DaVita's forward 12-month price-to-sales (P/S) ratio is 0.5X, significantly lower than the industry average of 2.6X [16]. - The company is trading at a discount compared to peers, suggesting a lower price relative to expected sales growth [18]. Long-Term Strategy - DaVita's management emphasizes a long-term strategy focused on improving clinical care, leveraging technology, and maintaining disciplined execution to enhance patient outcomes [19]. - Investments in technology and data analytics are aimed at improving care coordination and operational efficiency, despite short-term cost impacts [20]. - The company's integrated kidney care (IKC) and value-based care initiatives are expected to provide structural earnings visibility over time [21].

Core Viewpoint - DaVita Inc. will hold its quarterly conference call to discuss fourth quarter results on February 2, 2026, at 5:00 p.m. Eastern Time, with results released after market close on the same day [1]. Group 1: Company Overview - DaVita Inc. is a health care provider focused on transforming care delivery to improve the quality of life for patients globally [2]. - As of September 30, 2025, DaVita served approximately 293,200 patients at 3,247 outpatient dialysis centers, with 2,662 centers in the United States and 585 centers in 14 other countries [2]. - DaVita has been a leader in clinical quality and innovation for 25 years, caring for patients at every stage of their kidney health journey [2]. Group 2: Services and Achievements - DaVita aims to reduce hospitalizations, improve mortality rates, and enhance health access while promoting higher quality standards in kidney care [2].

Industry Overview - Healthcare provider stocks are experiencing a decline due to higher operating expenses and ongoing debates over patient subsidies, which are pressuring earnings across the sector [1] - Hedge funds have become aggressive sellers, particularly in U.S. healthcare providers, with short positions in dialysis and hospital operators outnumbering long positions by approximately eight to one [1] Company Focus: DaVita (DVA) - DaVita, a leading kidney care services provider, has seen its short interest rise to about 11.6% of its float by year-end, marking a 12% increase in just one month, making it one of the most shorted stocks in the S&P 500 [2] - The stock has shifted from being a favorite of Warren Buffett, with Berkshire Hathaway reducing its stake, and DaVita shares are now trading near one-year lows [3] - Despite recent innovations and leadership changes aimed at driving growth, DaVita's shares have not gained traction and have fallen sharply, down about 36% over the past 52 weeks from a record high of nearly $177 to around $105 [5][6] Valuation Metrics - DaVita's current price-to-sales (P/S) ratio of 0.69 is significantly lower than the sector median of 4.01, indicating that the stock is undervalued relative to its peers [7] - The company's price-to-earnings (P/E) ratio of 12 represents a 54% discount compared to the sector median of 26, further suggesting attractive valuations [7]

Company Overview - DaVita Inc. (DVA) has a market cap of $7.3 billion and is a leading provider of kidney dialysis services in the U.S., operating outpatient dialysis centers and clinical laboratories for chronic kidney failure patients [1] - The company also offers hospital-based and home dialysis, integrated care programs, physician services, and comprehensive kidney care solutions [1] Financial Performance - Analysts expect DaVita to report an adjusted EPS of $3.24 for fiscal Q4 2025, a 44.6% increase from $2.24 in the same quarter last year [2] - For fiscal 2025, adjusted EPS is projected to be $10.70, up 10.5% from $9.68 in fiscal 2024, with further growth expected to $12.89 in fiscal 2026, representing a 20.5% year-over-year increase [3] Stock Performance - DaVita's shares have decreased by 36.1% over the past 52 weeks, underperforming the S&P 500 Index's 17% rise and the State Street Health Care Select Sector SPDR ETF's 11.3% gain during the same period [4] - Following the Q3 2025 results announcement, DaVita's shares fell by 6.2% due to an adjusted EPS of $2.51, which was below analyst estimates [5] Cost and Operational Challenges - The decline in Q3 2025 performance was attributed to higher patient care costs, which rose nearly 6% year-over-year to $271.23 per treatment, increased general and administrative expenses of $322 million, and lower dialysis volumes [5] - An April ransomware attack also impacted investor sentiment, costing the company $11.7 million and disrupting operations [6] Analyst Sentiment - The consensus view among analysts on DVA stock is cautious, with a "Hold" rating overall; among eight analysts, one recommends "Strong Buy," six suggest "Hold," and one indicates "Moderate Sell" [6] - The average analyst price target for DaVita is $141, indicating a potential upside of 34.8% from current levels [6]

Company Overview - Davita (DVA) is a leading provider of dialysis services and is the 16th-largest holding of Berkshire Hathaway (BRK.B) [1] - The stock has reached its 23rd new 52-week low at $104.24, reflecting a 37% decline over the past year [1] Berkshire Hathaway's Investment - Berkshire first acquired 2.68 million shares of Davita in Q4 2011, peaking at 38.57 million shares by the end of Q4 2014 [2] - As of the latest sale on October 27, 2025, Berkshire sold 401,514 shares at an average price of $135.36, reducing its holdings to 31.76 million shares, which is 1.1% of its $315 billion equity portfolio [2] - Despite the sales, Berkshire still owns 45.0% of Davita [2] Financial Performance - Over the 14 years of ownership, Davita's revenue has grown by 98%, from $6.73 billion in 2011 to $13.32 billion for the 12 months ending September 30, 2025, representing a 5.0% compound annual growth rate (CAGR) [6] - EBITDA has increased by 86% during the same period, with a 4.5% CAGR [6] Stock Price Volatility - Davita's stock has experienced significant volatility, with a price of around $85 in June 2015, dropping to half that by May 2019, then nearly tripling over the next two years before losing almost half of those gains in the following 18 months [5]

Core Viewpoint - DaVita HealthCare is experiencing a decline in stock performance, with a notable focus on its upcoming earnings report which is expected to show significant growth in earnings per share (EPS) and revenue compared to the previous year [1][2]. Company Performance - DaVita HealthCare's stock closed at $111.01, down 3.23% from the previous day, underperforming the S&P 500 and the Dow [1]. - Over the past month, the stock has depreciated by 1.67%, while the Medical sector gained 0.82% and the S&P 500 gained 1.19% [1]. Earnings Expectations - The upcoming earnings report is anticipated to show an EPS of $3.34, reflecting a 49.11% increase year-over-year, with revenue expected to reach $3.53 billion, a 6.99% increase from the same quarter last year [2]. - For the entire fiscal year, earnings are projected at $10.52 per share, indicating an 8.68% increase, while revenue is expected to remain flat at $13.55 billion [3]. Analyst Forecasts - Investors should monitor recent revisions to analyst forecasts, as positive estimate revisions are seen as a favorable indicator for business outlook [3]. - The Zacks Rank system currently rates DaVita HealthCare at 3 (Hold), with the consensus EPS projection remaining unchanged over the past 30 days [5]. Valuation Metrics - DaVita HealthCare has a Forward P/E ratio of 8.9, which is significantly lower than the industry average of 18.1, indicating a potential undervaluation [6]. - The company also has a PEG ratio of 0.71, compared to the industry average of 1.78, suggesting that the stock may be undervalued relative to its expected earnings growth [7]. Industry Context - The Medical - Outpatient and Home Healthcare industry, which includes DaVita HealthCare, holds a Zacks Industry Rank of 59, placing it in the top 25% of over 250 industries [8].