DaVita Inc. 4th Quarter 2025 Results

Core Insights - DaVita Inc. reported strong financial and operational results for the year ended December 31, 2025, achieving its financial targets despite a challenging environment [2][5]. Financial Performance - For the three months ended December 31, 2025, net income from continuing operations was $209 million, with diluted earnings per share of $2.94 [3][5]. - Adjusted net income from continuing operations for the same period was $242 million, with adjusted diluted earnings per share of $3.40 [3][5]. - Consolidated revenues for the quarter were $3.620 billion, while total revenues for the year reached $13.643 billion, representing an increase from $12.816 billion in 2024 [5][29]. - Operating income for the quarter was $561 million, with an adjusted operating income of $586 million [5][29]. Operating Metrics - Total U.S. dialysis treatments for Q4 2025 were approximately 7.26 million, averaging 91,608 treatments per day, reflecting a slight decrease of 0.1% from Q3 2025 [7]. - Revenue per treatment increased to $422.60 in Q4 2025, compared to $410.59 in Q3 2025, while patient care costs per treatment rose to $279.60 from $273.54 [8][9]. Cash Flow and Share Repurchase - Operating cash flow for Q4 2025 was $541 million, with free cash flow of $309 million [5][15]. - The company repurchased 2.7 million shares at an average price of $122.78 per share during Q4 2025, totaling $331 million [5][13]. Debt and Financing - DaVita refinanced its existing Term Loan A-1 and revolving line of credit, securing a new Term Loan A-2 facility of $2.0 billion and a revolving line of credit of up to $1.5 billion [11]. - The company incurred impairment and restructuring charges of $20.5 million related to its investment in Mozarc Medical Holding LLC during Q4 2025 [12]. Patient Care and Center Activity - As of December 31, 2025, DaVita provided dialysis services to approximately 295,000 patients across 3,242 outpatient dialysis centers [17]. - The company had about 66,000 patients in risk-based integrated care arrangements, representing an annualized medical spend of approximately $5.6 billion [18]. 2026 Guidance - For 2026, DaVita projects adjusted operating income between $2.085 billion and $2.235 billion, with adjusted diluted net income from continuing operations per share expected to be between $13.60 and $15.00 [21].