DaVita Inc. 2nd Quarter 2025 Results

Core Insights - DaVita Inc. reported strong financial results for the quarter ended June 30, 2025, highlighting a focus on patient care and operational efficiency [1] Financial Performance - Net income attributable to DaVita Inc. for Q2 2025 was $199 million, compared to $163 million in Q1 2025 and $362 million in Q2 2024 [2] - Diluted earnings per share increased to $2.58 from $2.00 in Q1 2025, but decreased from $5.15 in Q2 2024 [2] - Adjusted net income for Q2 2025 was $228 million, up from $163 million in Q1 2025, but down from $434 million in Q2 2024 [2] - Consolidated revenues for Q2 2025 reached $3.380 billion, compared to $3.224 billion in Q1 2025 and $3.186 billion in Q2 2024 [9] Operating Metrics - Operating income for Q2 2025 was $538 million, with an operating margin of 15.9%, compared to 13.6% in Q1 2025 [3][29] - Adjusted operating income was $551 million, reflecting an adjusted operating margin of 16.3% [3] - Total U.S. dialysis treatments in Q2 2025 were 7,186,217, averaging 92,131 treatments per day, a 0.4% increase from Q1 2025 [4][31] Cost Analysis - Revenue per treatment increased to $404.58 in Q2 2025 from $400.14 in Q1 2025, while patient care costs per treatment decreased to $268.36 from $271.77 [5][31] - General and administrative expenses rose to $312 million in Q2 2025 from $283 million in Q1 2025, primarily due to cybersecurity incident-related costs [5][7] Cybersecurity Incident - The company incurred approximately $13.5 million in charges related to a cybersecurity incident, impacting patient care costs by $1 million and general administrative expenses by $12.5 million [10] Share Repurchase and Debt Management - DaVita repurchased 3.1 million shares for $446 million at an average price of $144.00 per share during Q2 2025 [12] - The company issued $1 billion in senior notes to repay outstanding debt and enhance liquidity [11] Patient Care and Center Activity - As of June 30, 2025, DaVita provided dialysis services to approximately 283,100 patients across 3,175 outpatient dialysis centers [15] - The company had about 64,400 patients in risk-based integrated care arrangements, representing approximately $5.3 billion in annualized medical spend [16]