DaVita(US:DVA)2026-02-02 21:07Financial 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].