Our last coverage on Viemed Healthcare , Inc. ( VMD ) was in April of last year, when we reiterated our bullish stance in the home medical equipment and respiratory healthcare provider. Rising equity, bullish EPS expectations, and a keen valuationIndividual investor with a keen interest in deriving income from investment setups. We do this by buying undervalued profitable stocks with strong balance sheets & minimal debt. Furthermore, when the opportunity arises, we like to write calls against our positions ...

Core Viewpoint - The article maintains a bullish outlook on Viemed Healthcare, Inc. (VMD), emphasizing its position in the home medical equipment and respiratory healthcare sector, supported by rising equity and positive EPS expectations [1]. Group 1: Company Analysis - Viemed Healthcare is recognized for its strong balance sheet and minimal debt, making it an attractive investment opportunity [1]. - The company has shown a commitment to generating income through strategic investment setups, including buying undervalued stocks and writing calls against positions [1]. Group 2: Investment Strategy - The investment strategy focuses on risk management through position sizing and the use of trailing stop losses over time, which is crucial for individual investors seeking income [1].

Viemed Healthcare (NasdaqCM:VMD) FY Conference January 15, 2026 10:00 AM ET Company ParticipantsJoe Dorame - Managing DirectorTodd Zehnder - COOCasey Hoyt - CEOJoe DorameHello and welcome to the VieMed Healthcare Fireside Chat. My name is Joe Dorame, Managing Partner at Lytham Partners, and today I will be moderating a Q&A discussion with Casey Hoyt, Chief Executive Officer, and Todd Zehnder, Chief Operating Officer at VieMed, which trades on the Nasdaq under the ticker VMD. Let's get started. Casey and Tod ...

Company Overview - Viemed Healthcare, Inc. is the leading U.S. provider of in-home post-acute respiratory care, specializing in non-invasive ventilation for patients with COPD and chronic respiratory failure [1][7] - The company employs a clinician-driven, high-touch model that integrates respiratory therapists, proprietary clinical workflows, and continuous patient monitoring to enhance patient outcomes and reduce overall care costs [1] Business Diversification - While ventilation is the core of Viemed's business, the company has successfully diversified into complementary services such as sleep therapy, resupply, oxygen therapy, staffing, and maternity care, which contributes to a more resilient and scalable platform [1][7] Financial Performance - Viemed has achieved 15 consecutive quarters of organic growth, indicating strong operational performance and market demand [7] - The company provides strong full-year guidance, projecting approximately 20% year-over-year revenue growth and around 22% EBITDA margins [7]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - The company reported record revenue of $71.9 million, representing a 24% year-over-year growth and a 14% sequential growth from the second quarter [15] - Gross profit for the quarter was $41.3 million, resulting in a gross margin of 57.5% [15] - Adjusted EBITDA reached $16.1 million, up 16% from the prior year, with a margin of 22.4% [15] - Net income for the quarter was $3.5 million, or $0.09 per diluted share [16] - Trailing 12-month free cash flow totaled $23.3 million, significantly up from the prior year [18] Business Line Data and Key Metrics Changes - Ventilation revenue achieved double-digit year-over-year growth, now accounting for less than half of net revenue for the first time in over a decade [6][7] - New sleep patient starts grew 96% year-over-year, while the resupply population increased 51% year-over-year and 33% sequentially [9] - PAP therapy patients increased 64% year-over-year and 21% sequentially [16] - Maternal health products from the Lehans acquisition are expected to be a significant growth driver in 2026 [10][11] Market Data and Key Metrics Changes - The payer mix is shifting, with lower Medicare exposure as a result of the Lehans acquisition, which is virtually a 0% Medicare company [33] - The company anticipates competitive bidding to return, but remains confident in its ability to win contracts due to operational soundness [28] Company Strategy and Development Direction - The long-term vision is to expand geographic access to high-quality home-based care, diversify product offerings, and deliver operational excellence at scale [5] - The company is focusing on deploying AI-powered revenue cycle management tools to improve efficiency and scalability in billing and collections [11] - The integration of Lehans Medical Equipment is expected to enhance service capabilities and broaden the patient base [4][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive future growth and deliver lasting value for patients, partners, and shareholders [12] - The company is updating its full-year outlook, expecting net revenue between $271 million and $273 million and adjusted EBITDA between $60 million and $62 million [20][21] - Management emphasized the importance of disciplined execution and integration of recent acquisitions for profitable growth in 2026 [22] Other Important Information - The company completed its 2025 share repurchase program, repurchasing nearly 2 million shares at an average price of approximately $6.69 [19] - The balance sheet remains strong, with $11.1 million in cash and long-term debt of only $19.6 million [19] Q&A Session Summary Question: Confirmation of organic growth excluding Lehans - Management confirmed organic growth at around 14% [24] Question: Factors driving growth in the sleep segment - Management attributed growth to gaining market share and hiring dedicated sales representatives for sleep products [25][26] Question: Comments on competitive bidding - Management anticipates competitive bidding returning and is prepared to participate [28] Question: Payer mix and authorization friction - Management noted a shift in payer mix and emphasized that Medicare is a reliable payer [33][34] Question: Operational levers to protect margins - Management indicated that while gross margins may face pressure, improvements in SG&A could offset this [36][37] Question: Focus on rural markets for growth - Management stated that the focus remains on expanding in rural markets where they have existing presence [38][39] Question: Declining revenue per patient in sleep therapy - Management clarified that the revenue profile differs between therapy and resupply patients, with stable realizations [42] Question: Priority areas for technological investment - Management highlighted investments in AI for operational efficiencies, particularly in the intake process [43][44]

Financial Performance - The company reported a revenue growth of 24% year-over-year in Q3 2025[7] - Net income attributable to Viemed was $3513000 in Q3 2025, or $009 per diluted share[7,8] - Adjusted EBITDA increased 16% year-over-year for Q3 2025, with an Adjusted EBITDA margin of 224%[7] - The company completed repurchases of 1706380 common shares for $114 million at an average price of $668 per share in Q3 2025[7] - Free cash flow for the quarter ended September 30, 2025, was $12402000[19] Operational Highlights - Vent patient growth was sustained at 9% year-over-year in Q3 2025, up 2% sequentially from Q2 2025[7] - Sleep therapy patients increased by 64% year-over-year and 21% sequentially in Q3 2025; new sleep patient starts were up 96% year-over-year, and sleep resupply patient count was up 51% year-over-year and 33% sequentially[7] - As of September 30, 2025, the company had $38 million in unfunded commitments available under its existing credit facilities[17] Revenue Mix - In Q3 2025, ventilation accounted for 49% of the service mix, while sleep accounted for 21%, oxygen for 9%, staffing for 8%, maternal for 6%, and other services for 7%[12] - Rental revenue accounted for 70% of the revenue mix, while sales accounted for 30% in Q3 2025[12] 2025 Guidance - The company projects net revenue of $271 million to $273 million[22] - Adjusted EBITDA is expected to be $60 million to $62 million, approximately 22% of net revenue[22]

Revenue Performance - For the three months ended September 30, 2025, revenue totaled $71.9 million, an increase of $13.9 million (or 24.0%) from the same period in 2024[144]. - For the nine months ended September 30, 2025, total revenue was $194.1 million, an increase of $30.5 million (or 18.7%) compared to the same period in 2024[162]. - Revenue from equipment and supply sales increased by $10.8 million (or 49.0%), driven by the success of the sleep resupply program and maternal health offerings[162]. - Ventilator rental revenue increased by $3.1 million (or 9.8%) due to higher patient volumes and sustained demand for ventilation services[144]. Profitability Metrics - Gross profit for the same period was $41.3 million, with a gross profit margin of 57.5%, down from 59.3% in 2024[147]. - Gross profit margin decreased to 57.4% for the nine months ended September 30, 2025, down from 59.3% in the same period in 2024[165]. - Net income attributable to Viemed Healthcare, Inc. for the quarter was $3.5 million, a decrease of $0.4 million (or 9.4%) compared to the prior year[143]. - Net income for the nine months ended September 30, 2025, was $9.6 million, an increase of $2.6 million (or 36.9%) from the same period in 2024[178]. Expenses and Cost Management - Selling, general and administrative expenses totaled $31.9 million, an increase of $5.2 million (or 19.7%) from the comparable period in 2024[149]. - Selling, general and administrative expenses totaled $89.1 million, an increase of $11.2 million (or 14.3%) from the comparable period in 2024, but as a percentage of revenue improved to 45.9%[167]. - Research and development expenses remained consistent at $0.8 million for both the three months ended September 30, 2025, and 2024[151]. - Research and development expenses totaled $2.4 million, reflecting a $0.2 million increase from the prior year, with expectations for consistent costs in 2025[169]. - Stock-based compensation increased by 43.4% to $6.8 million, reflecting investments in employee retention and long-term incentive programs[170]. Cash Flow and Financing - Net cash provided by operating activities for the nine months ended September 30, 2025, was $33.5 million, up from $24.1 million in the same period of 2024, representing an increase of 39.5%[184][185]. - Net cash used in investing activities was $42.6 million for the nine months ended September 30, 2025, primarily due to the acquisition of Lehan for $26.3 million[187]. - Capital expenditures for the nine months ended September 30, 2025, totaled $16.2 million, a decrease of $2.3 million or 12.3% year over year[187]. - Net cash provided by financing activities was $2.7 million for the nine months ended September 30, 2025, compared to a net cash used of $4.1 million in the same period of 2024[189][190]. - Outstanding borrowings under the 2022 Term Loan Facility and 2022 Revolving Credit Facility were $13.1 million and $8.0 million, respectively, as of September 30, 2025[192][207]. Market and Growth Outlook - The home medical equipment market is projected to grow at a Compound Annual Growth Rate (CAGR) of approximately 6% for respiratory devices and 8% for Obstructive Sleep Apnea (OSA) devices[127]. - U.S. home healthcare spending is expected to reach $250 billion by 2031, with a CAGR of approximately 7%[129]. - The company expects continued growth in its ventilator patient base and further revenue growth from the expansion of existing home medical equipment offerings[146]. - The company expects continued growth in ventilator rentals and expansion of home medical equipment offerings to drive future revenue growth[163]. Regulatory and Economic Factors - The company is actively participating in the national coverage analysis initiated by CMS for noninvasive positive pressure ventilation, which may influence patient access and reimbursement patterns[132]. - The One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025, introduces changes that may affect Medicaid and Medicare spending, with most provisions scheduled to take effect in 2027 and 2028[134]. - The company is facing ongoing cost pressures from rising material, labor, and transportation costs, which could impact financial results[135]. - Future volatility in general price inflation may further affect material availability and operational overhead, prompting the company to manage these pressures through various strategies[137]. Taxation - The provision for income taxes for the quarter was $1.5 million, compared to $1.6 million in 2024, with an estimated effective tax rate of 31.6% for 2025[158]. - The provision for income taxes was $4.2 million for the nine months ended September 30, 2025, compared to $2.9 million in 2024, with an estimated effective tax rate of 31.6%[177]. Workforce and Employee Contributions - The company anticipates expanding its workforce of licensed Respiratory Therapists (RTs) to support growth, with 414 RTs employed as of September 30, 2025, making up approximately 30% of the total employee count[123]. - Matching employer contributions to the 401(k) retirement plan totaled $1.4 million for the nine months ended September 30, 2025, compared to $1.2 million for the same period in 2024[198]. - The Company anticipates that operating cash flows will satisfy material cash requirements for the 12 months after September 30, 2025[196]. - The Company was in compliance with all covenants under the 2022 Senior Credit Facilities as of September 30, 2025[194].

Financial Performance - Net revenues for Q3 2025 reached $71.9 million, a record for the company, representing a 24.0% increase from $58.0 million in Q3 2024[4] - Net income attributable to Viemed for Q3 2025 was $3.5 million, or $0.09 per diluted share[4] - Adjusted EBITDA for Q3 2025 totaled $16.1 million, reflecting a 15.5% increase compared to $13.9 million in Q3 2024[4] - Revenue for the three months ended September 30, 2025, was $71,914,000, a 24% increase from $58,004,000 in the same period of 2024[16] - Gross profit for the nine months ended September 30, 2025, reached $111,355,000, up 15% from $97,065,000 in 2024[16] - Net income for the three months ended September 30, 2025, was $3,600,000, compared to $3,905,000 in 2024, reflecting a decrease of 8%[16] - Adjusted EBITDA for the quarter ended September 30, 2025, was $16,121,000, an increase from $13,954,000 in the same quarter of 2024[20] - Revenue for the quarter ended September 30, 2025, was $71,914 million, an increase from $63,056 million in the previous quarter[27] - Gross profit for the same quarter was $41,345 million, with a gross profit margin of 57%[27] - Net income attributable to Viemed Healthcare, Inc. was $3,513 million, compared to $3,157 million in the previous quarter[27] - Adjusted EBITDA for the quarter was $16,121 million, up from $14,287 million in the previous quarter[27] Cash Flow and Expenses - The company maintains a cash balance of $11.1 million and has $38 million available under existing credit facilities as of September 30, 2025[4] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $33,475,000, compared to $24,102,000 in 2024, representing a 39% increase[18] - Free cash flow for the trailing twelve months ended September 30, 2025, was $23,292,000, compared to $6,039,000 in the same period of 2024[25] - Cash and cash equivalents at the end of the period were $11,123,000, slightly down from $11,347,000 at the end of September 2024[18] - Cash and cash equivalents decreased to $11,123 million from $20,016 million in the previous quarter[27] Shareholder Actions - The company repurchased 1,706,380 common shares at a cost of $11.4 million, averaging $6.68 per share[4] Patient Metrics - Ventilator patient count increased to 12,372, an 8.8% rise from Q3 2024, while PAP therapy patient count rose to 31,891, a 63.7% increase[4] - The number of active ventilator patients was 12,372, an increase from 12,152 in the previous quarter[27] - The number of distinct patients billed for PAP therapy services rose to 31,891 from 26,260 in the previous quarter[27] - The number of distinct patients receiving supplies through the sleep resupply program increased to 33,518 from 25,246 in the previous quarter[27] Debt and Acquisitions - Long-term debt as of September 30, 2025, amounted to $19.6 million, up from $3.6 million at the end of 2024[14] - The acquisition of Lehan's Medical Equipment was completed on July 1, 2025, and has been accretive to net income and earnings per share since[4] Guidance - Full year 2025 net revenue guidance is updated to a range of $271 million to $273 million, down from the previous range of $271 million to $277 million[4] - Adjusted EBITDA guidance for 2025 is now expected to be between $60 million and $62 million, compared to the prior guidance of $59 million to $62 million[4] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $34,871,000, up from $30,353,000 in 2024, indicating a 15% increase[16] Investment Performance - The company reported a net loss from investments of $0 for the three months ended September 30, 2025, compared to a gain of $96,000 in 2024[16] Share Statistics - The weighted average number of diluted shares outstanding for the three months ended September 30, 2025, was 40,495,761, compared to 40,779,414 in 2024[16]

Core Insights - Viemed Healthcare, Inc. reported record net revenues of $71.9 million for the quarter ended September 30, 2025, marking an increase of $13.9 million or 24.0% compared to the same quarter in 2024 [1] Financial Performance - Net revenues for the three months ended September 30, 2025, were $71.9 million [1] - This represents a year-over-year increase of $13.9 million, equivalent to a 24.0% growth from the comparable quarter in 2024 [1] Operational Highlights - The financial results reflect the company's strong performance in the post-acute respiratory healthcare equipment and services sector [1] - Viemed continues to establish itself as a leading provider in the in-home clinical care market in the United States [1]