DaVita(US:DVA)2025-10-29 20:09Financial Performance - DaVita Inc. reported consolidated revenues of $3.420 billion for the third quarter of 2025, with operating income of $506 million and adjusted operating income of $517 million[6]. - Net income attributable to DaVita Inc. for the third quarter was $150 million, with diluted earnings per share at $2.04 and adjusted diluted earnings per share at $2.51[4]. - Dialysis patient service revenues for Q3 2025 reached $3,298,090, an increase of 5.1% from $3,138,561 in Q3 2024[26]. - Total revenues for the nine months ended September 30, 2025, were $10,023,282, up 5.3% from $9,520,867 in the same period of 2024[26]. - Net income attributable to DaVita Inc. for Q3 2025 was $150,332, a decrease of 30% compared to $214,688 in Q3 2024[26]. - Basic earnings per share for Q3 2025 were $2.09, down from $2.56 in Q3 2024, reflecting an 18.4% decline[26]. - Operating income for the nine months ended September 30, 2025, was $1,482,545, a decrease of 2.8% from $1,525,121 in the same period of 2024[26]. - Total operating expenses for Q3 2025 were $2,914,460, an increase of 6.8% from $2,728,712 in Q3 2024[26]. - Comprehensive income attributable to DaVita Inc. for the nine months ended September 30, 2025, was $707,222, compared to $566,763 in the same period of 2024, representing a 24.8% increase[29]. - The company reported a net income of $240,249 for Q3 2025, down from $295,760 in Q3 2024, indicating a decline of 18.8%[29]. - Net income for the nine months ended September 30, 2025, was $747.7 million, a decrease of 17% from $901.5 million in 2024[31]. - Total consolidated revenues for the nine months ended September 30, 2025, reached $10.0 billion, compared to $9.9 billion in the same period of 2024, reflecting a slight increase[34]. - Operating income for the nine months ended September 30, 2025, was $1.5 billion, down from $1.6 billion in 2024, indicating a decrease in profitability[34]. - The company reported an operating margin of 14.8% for the nine months ended September 30, 2025, down from 15.9% in the previous year[34]. - The company reported a total of $2,844 million in "Consolidated EBITDA" for the twelve months ended September 30, 2025, compared to $2,871 million for the previous twelve months[42]. - Net income attributable to DaVita Inc. for the twelve months ended September 30, 2025, was $772 million, down from $836 million in the previous twelve months[42]. Cash Flow and Capital Expenditures - Operating cash flow for the quarter was $842 million, with free cash flow reported at $604 million[6]. - Cash flows from operating activities for the nine months ended September 30, 2025, totaled $1.3 billion, compared to $1.5 billion in 2024, showing a decline of 8.7%[31]. - Operating cash flow for the three months ended September 30, 2025, was $842 million, up from $324 million in the previous quarter, totaling $1,346 million for the nine months ended September 30, 2025[37]. - Free cash flow for the three months ended September 30, 2025, was $604 million, compared to $157 million in the previous quarter, with a total of $716 million for the nine months ended September 30, 2025[37]. - Capital expenditures for maintenance and development totaled $119 million and $47 million, respectively, for the three months ended September 30, 2025[37]. - For the twelve months ended September 30, 2025, free cash flow was $996 million, reflecting a strong operational performance[64]. Treatment and Patient Care - Total U.S. dialysis treatments for the third quarter were 7,242,725, averaging 91,680 treatments per day, reflecting a decrease of 0.5% compared to the previous quarter[7]. - Revenue per treatment increased to $410.59, a rise of 1.5% from $404.58 in the previous quarter, while patient care costs per treatment rose to $273.54, up 1.9%[8]. - As of September 30, 2025, DaVita provided dialysis services to approximately 293,200 patients across 3,247 outpatient dialysis centers[18]. - The average patient service revenue per treatment was $410.59 for the three months ended September 30, 2025, compared to $404.58 in the previous quarter, reflecting a year-over-year increase[35]. - The company had a total of 7,242,725 treatments in the three months ended September 30, 2025, an increase from 7,186,217 treatments in the previous quarter[35]. Shareholder Actions - DaVita Inc. repurchased 3.3 million shares for $465 million at an average price of $140.67 per share during the third quarter[14]. - The company spent $465 million on share repurchases during the quarter, repurchasing 3,274 shares[37]. Debt and Leverage - Long-term debt increased to $10.2 billion as of September 30, 2025, from $9.2 billion at the end of 2024, indicating a rise in leverage[33]. - Total debt as of September 30, 2025, was $10,310 million, slightly down from $10,330 million as of June 30, 2025[42]. - The leverage ratio increased to 3.37x as of September 30, 2025, from 3.34x at the end of the previous quarter, remaining below the maximum permitted ratio of 5.00x[42]. Taxation - DaVita's effective income tax rate on adjusted income attributable to DaVita Inc. was 27.9% for the third quarter of 2025[17]. - The effective income tax rate on income attributable to DaVita Inc. was 31.3% for the nine months ended September 30, 2025, compared to 29.6% in the previous year[34]. - The effective income tax rate on income attributable to DaVita Inc. for the three months ended September 30, 2025, was 31.3%[60]. - The effective income tax rate on adjusted income attributable to DaVita Inc. was 27.9% for the three months ended September 30, 2025[60]. Strategic Initiatives - The company anticipates potential impacts from the federal government shutdown and changes in healthcare policies on its operations and patient mix[22]. - DaVita Inc. is focusing on integrated kidney care (IKC) and value-based care (VBC) initiatives to enhance service delivery and patient outcomes[22]. Other Financial Information - The company incurred equity investment losses related to Mozarc Medical Holding LLC amounting to $51.3 million, including impairment and restructuring charges of $25.9 million[13]. - Cybersecurity incident-related charges amounted to $13 million for the three months ended June 30, 2025, and $25 million for the nine months ended September 30, 2025[56][57]. - The weighted average effective interest rate during the quarter was 5.70%, slightly down from 5.71% in the previous quarter[37]. - Accounts receivable increased to $2.3 billion as of September 30, 2025, from $2.1 billion at the end of 2024, representing a growth of 8.7%[33].