Core Insights - DaVita Clinical Research (DCR) has been instrumental in advancing kidney care over the past 25 years, focusing on new therapies, clinical outcomes, and the future of nephrology through rigorous research and clinical trials [1][2][3] Research Contributions - DCR has authored 180 manuscripts and 520 research abstracts or posters aimed at improving clinical outcomes in kidney care and related diseases [4] - A 2017 study demonstrated that ClearGuard HD antimicrobial barrier caps significantly reduce bloodstream infections in dialysis patients, leading to improved outcomes [5] - Upcoming research will be presented at the American Society of Nephrology Kidney Week, highlighting the association between GLP-1 drugs and hospitalization rates for kidney failure patients [6] Clinical Trials and Innovations - DCR is the largest U.S. trial network for chronic kidney disease (CKD) and end-stage kidney disease (ESKD), conducting impactful trials efficiently [7] - DaVita contributed to COVID-19 vaccine trials and supported vaccination efforts for at-risk patients, showcasing its commitment to public health [8] - The company has implemented decentralized recruitment services to enhance diversity in clinical trials, addressing barriers faced by dialysis patients [9] Company Overview - As of June 30, 2025, DaVita served approximately 283,100 patients across 3,175 outpatient dialysis centers, with 2,662 centers in the U.S. and 513 in 13 other countries [11] - DaVita has conducted over 500 clinical trials across more than 250 research sites, engaging directly with every ESKD drug approved by the FDA [12]

Financial Data and Key Metrics Changes - Adjusted operating income for the second quarter was $551 million, and adjusted earnings per share were $2.95, with free cash flow at $157 million [14][22] - The company reaffirmed its guidance range for adjusted operating income of $2.01 billion to $2.16 billion and adjusted earnings per share of $10.20 to $11.30 for the year [23] Business Line Data and Key Metrics Changes - US treatments per day declined by 1.1% year-over-year, primarily due to a higher than expected mistreatment rate, which was influenced by the cyber incident [15][16] - Revenue per treatment increased by approximately $4.5 compared to the first quarter, but was negatively impacted by the cyber incident and lower dispensing volumes of binders [17][18] - Patient care costs per treatment declined by approximately $3.5 sequentially, attributed to higher treatment counts, improved labor productivity, and lower binder dispensing volumes [19][20] Market Data and Key Metrics Changes - International adjusted operating income increased by $6 million compared to the first quarter, primarily due to a one-time benefit [21] - Integrated Kidney Care (IKC) had adjusted operating income of $26 million in the second quarter, benefiting from approximately $40 million of revenue expected to be recognized later in the year [21] Company Strategy and Development Direction - The company is focused on clinical innovation and improving patient outcomes through advanced technologies and new drug classes [6][14] - The management emphasized the importance of operational excellence and cost management to navigate challenges and maintain financial performance [22][76] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about entering a new wave of clinical innovation that could improve patient care and outcomes [5][6] - The company acknowledged the ongoing impact of the cyber incident but believes the effects on adjusted results will be limited moving forward [11][52] Other Important Information - The company reported a leverage ratio of 3.34 times consolidated EBITDA, which is within its target range [22] - The management highlighted the need for better clearance of middle-sized molecules and increased patient adherence to medications as key areas for improving patient outcomes [46][70] Q&A Session Summary Question: How did census and treatments track following the cyber attack? - Management indicated that while there were initial challenges, operations have normalized since the incident, but mistreatment rates spiked unexpectedly [26][28] Question: What contributed to the lower dispensing volumes of phosphate binders? - The reduction was attributed to a decrease in the number of prescriptions rather than a mix issue, with some patients obtaining binders through other means [30][31] Question: How is the company maintaining operating income guidance despite treatment growth challenges? - The primary driver is cost per treatment, particularly labor dynamics in US dialysis, along with better-than-expected international performance [38][39] Question: What is the outlook for Integrated Kidney Care (IKC) in the back half of the year? - IKC is expected to be roughly breakeven for the first half of the year, with guidance for a negative $20 million in the back half [95] Question: What is the impact of the cyber incident on revenue per treatment? - The cyber incident affected revenue for treatments done in Q2 due to manual processes and delays, which are not expected to impact the second half of the year [51][52] Question: What are the expectations for patient care costs moving forward? - The main driver for performance is productivity, with improved retention and training effectiveness contributing to lower costs [79] Question: How does the company plan to address elevated mortality rates? - Management believes the elevated mortality is a holdover from COVID, and they are implementing strategies to improve patient outcomes gradually [70][72]

Core Insights - DaVita published its Community Care report, highlighting achievements towards its Environmental, Social, and Governance (ESG) goals for 2025, reflecting progress made in 2024 [1][2] Patient Care - DaVita provides comprehensive kidney care globally, covering all stages from preventative care to home dialysis and transplantation [3] Teammate Engagement - The company emphasizes a culture of belonging, aiming to inspire employees to contribute positively to patient care [4] Environmental Stewardship - DaVita is focused on sustainability, with significant progress towards its 2025 environmental goals, including renewable energy initiatives and water conservation efforts [5][6] Notable Achievements - Over 8,200 kidney transplants were performed, marking the highest annual total [6] - More than 40,000 individuals participated in the Kidney Smart® education program, available in over 13 languages [6] - 15% of patients received home dialysis [6] - 84% of employees reported feeling a sense of belonging at DaVita [6] - DaVita's operations are on track to be powered by renewable energy by 2025 [6] - 75 million gallons of water were saved through efficiency projects, contributing to a goal of 240 million gallons saved since 2021 [6] Healthy Communities - DaVita extends its commitment to community care by providing resources and education to underserved regions [7] Leading with Integrity & Accountability - The company prioritizes compliance with laws and regulations to ensure exceptional care and positive patient experiences [8]

Core Viewpoint - DaVita Inc. has initiated a private offering of $750 million in senior notes due 2033 to manage its financial obligations and support corporate activities [1][2]. Group 1: Offering Details - The offering consists of $750 million aggregate principal amount of senior notes due in 2033 [1]. - The net proceeds from the offering will be used to repay outstanding revolving credit facility borrowings, cover related costs, and for general corporate purposes, including stock repurchases and capital expenditures [2]. Group 2: Regulatory Compliance - The 2033 notes are being offered only to qualified institutional buyers under Rule 144A and to certain non-U.S. persons in compliance with Regulation S [3]. - The offer and sale of the 2033 notes have not been registered under the Securities Act and cannot be sold in the U.S. without registration or an exemption [3][4]. Group 3: Company Overview - DaVita is a healthcare provider focused on transforming care delivery to enhance the quality of life for patients globally, particularly in kidney care [5]. - The company has been a leader in clinical quality and innovation for 25 years, providing care at every stage of kidney health [5].