DaVita(DVA) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements Presents DaVita Inc.'s unaudited condensed consolidated financial statements and notes, detailing financial performance, balance sheet, and cash flows Consolidated Statements of Income Consolidated Statements of Income (in thousands of dollars, except EPS) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | |:---|:---|:---|:---|:---| | Total Revenues | $3,379,526 | $3,186,722 | $6,603,055 | $6,257,277 | | Operating Income | $537,841 | $506,398 | $976,778 | $990,243 | | Net Income Attributable to DaVita Inc. | $199,337 | $222,676 | $362,254 | $462,325 | | Diluted EPS | $2.58 | $2.50 | $4.57 | $5.15 | Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (in thousands of dollars) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | |:---|:---|:---|:---|:---| | Net Income | $275,220 | $299,752 | $507,436 | $605,732 | | Unrealized (losses) gains on interest rate cap agreements | $(6,405) | $5,919 | $(14,940) | $19,236 | | Unrealized gains (losses) on foreign currency translation | $94,001 | $(78,853) | $184,857 | $(118,573) | | Total comprehensive income attributable to DaVita Inc. | $288,467 | $127,701 | $535,212 | $319,319 | Consolidated Balance Sheets Consolidated Balance Sheets (in thousands of dollars) | Metric | June 30, 2025 | December 31, 2024 | |:---|:---|:---| | Total Assets | $17,492,958 | $17,285,268 | | Total Liabilities | $15,939,935 | $15,193,917 | | Total DaVita Inc. Shareholders' Equity (Deficit) | $(369,633) | $121,122 | | Goodwill | $7,465,769 | $7,375,216 | | Long-term debt | $10,078,805 | $9,175,903 | Consolidated Statements of Cash Flow Consolidated Statements of Cash Flow (in thousands of dollars) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | |:---|:---|:---| | Net cash provided by operating activities | $504,245 | $664,010 | | Net cash used in investing activities | $(229,303) | $(376,964) | | Net cash used in financing activities | $(378,094) | $(243,976) | | Net (decrease) increase in cash, cash equivalents and restricted cash | $(82,866) | $38,612 | Consolidated Statements of Equity Consolidated Statements of Equity (in thousands of dollars) | Metric | June 30, 2025 | December 31, 2024 | |:---|:---|:---| | Total DaVita Inc. shareholders' equity (deficit) | $(369,633) | $121,122 | | Treasury stock (Amount) | $(2,485,654) | $(1,389,072) | | Retained earnings | $1,896,884 | $1,534,630 | | Accumulated other comprehensive loss | $(137,838) | $(310,796) | Notes to Condensed Consolidated Financial Statements Note 1. Condensed consolidated interim financial statements - The interim financial statements are unaudited and prepared by management, reflecting necessary adjustments for fair presentation[24] - Significant estimates and assumptions are made for revenue recognition, accounts receivable, fair value, income taxes, and loss contingencies[24] Note 2. Revenue recognition Segment Revenues by Primary Payor Source (3 Months Ended June 30, in thousands of dollars) | Revenue Source | 2025 | 2024 | |:---|:---|:---| | U.S. dialysis patient service revenues (Medicare & Medicare Advantage) | $1,659,607 | $1,587,198 | | U.S. dialysis patient service revenues (Commercial) | $947,015 | $952,625 | | Other revenues (Medicare & Medicare Advantage) | $140,149 | $97,433 | | Total Consolidated Revenues | $3,379,526 | $3,186,722 | Segment Revenues by Primary Payor Source (6 Months Ended June 30, in thousands of dollars) | Revenue Source | 2025 | 2024 | |:---|:---|:---| | U.S. dialysis patient service revenues (Medicare & Medicare Advantage) | $3,268,625 | $3,118,696 | | U.S. dialysis patient service revenues (Commercial) | $1,871,903 | $1,878,455 | | Other revenues (Medicare & Medicare Advantage) | $239,103 | $200,542 | | Total Consolidated Revenues | $6,603,055 | $6,257,277 | - IKC revenues from performance obligations satisfied in previous years were $95,911 thousand for the six months ended June 30, 2025, up from $31,309 thousand in 2024, due to measurement limitations and recognition constraints on complex VBC contracts[31] Note 3. Earnings per share Earnings per Share (in thousands of dollars, except per share amounts) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | |:---|:---|:---|:---|:---| | Net income attributable to DaVita Inc. | $199,337 | $222,676 | $362,254 | $462,325 | | Basic net income per share | $2.62 | $2.56 | $4.67 | $5.29 | | Diluted net income per share | $2.58 | $2.50 | $4.57 | $5.15 | | Diluted shares | 77,362 | 88,950 | 79,309 | 89,749 | Note 4. Short-term and long-term investments Short-term and Long-term Investments (in thousands of dollars) | Investment Type | June 30, 2025 | December 31, 2024 | |:---|:---|:---| | Debt securities | $31,783 | $44,158 | | Equity securities | $37,953 | $40,566 | | Total Investments | $69,736 | $84,724 | - Equity investments are primarily held within a trust to fund existing obligations associated with the Company's non-qualified deferred compensation plans[36] Note 5. Goodwill Goodwill by Segment (in thousands of dollars) | Segment | Balance at Dec 31, 2024 | Acquisitions | Foreign currency and other adjustments | Balance at June 30, 2025 | |:---|:---|:---|:---|:---| | U.S. dialysis | $6,517,220 | $5,384 | — | $6,522,604 | | Other — Ancillary services | $857,996 | $(4,715) | $89,884 | $943,165 | |