Viemed Healthcare, Inc. (VMD) Earnings

Management highlights

• Past quarter showed consistent execution across platform. Sleep business scaling and differentiating, maternal health performing ahead of plan, free cash flow profile improved. • First quarter revenue $75.4M, up 28% y/y, matched record fourth quarter performance. • Sleep: Pap therapy patients up 57% y/y, ~36,000 Pap patients on platform; resupply patients up 47% y/y despite modest Q1 drop. • Maternal health: Leigh Ann performing well, integration smooth, accretive since day one, serviced ~4,000 new maternal health patients in new markets under BiMed contracts. • Ventilation: New patient startup momentum building faster than expected, March ventilator setups strong; compliance among active ventilator patients improved; advocating for patients regarding NCD compliance policy; regulatory environment outside NCD supportive with no material impact from competitive bidding on core products and enrollment moratorium not impacting operations. • Team of 1,387 employees delivered on priorities, leveraging clinical model, technology platform, compliance infrastructure, and payer relationships.

Guidance

• Updated full year 2026 net revenue guidance: narrowing and raising low end to $312 million to $320 million from $310 million to $320 million. • Reaffirming adjusted EBITDA in range of $65 million to $69 million. • Updating full-year net CapEx outlook to range of 9% to 10.5% of net revenue from prior 10% to 11.5%. • Expecting sequential revenue growth of 3% to 5% per quarter through remainder of the year, driven by operational signals like improving new patient starts, momentum in ventilation, and acceleration in maternal health.

Segment performance

First quarter revenue was $75.4 million, up 28% over prior year. Ventilator rentals totaled $35.4 million, up ~10% y/y; other home medical equipment rentals $16.2 million, up 25% y/y; equipment and supply sales $17.5 million, more than doubling y/y. Sleep: Pap therapy patients grew 57% y/y, ended quarter with nearly 36,000 Pap patients. Maternal health: Serviced just under 4,000 new maternal health patients under BiMed contracts in new markets. Ventilation: New patient startup momentum building faster than expected, March had 759 ventilator setups vs 692 a year ago; compliance among active ventilator patients improved by nearly 20% since NCD went into effect. Ventilator rentals were ~47% of total revenue in Q1 2026 vs 54% in Q1 2025. Medicare represented 35% of revenue in the quarter, down from 41% a year ago.

Risks & headwinds

• Risks and uncertainties related to forward-looking statements, including actual results or events varying from forward-looking statements. • Regulatory environment risks, such as potential changes in NCD compliance policy affecting patients and operations. • Risks associated with competition and market dynamics that could impact the business, although current regulatory developments are viewed as supportive of long-term growth but still pose potential risks.

Analyst Q&A

• Q: Morning, and thank you for taking my questions. Maybe just want to start with your guidance. You know, great to see that you're increasing the low end of the range. And I know you mentioned new patient starts, continued acceleration, maternal, and the likes that is driving that. Just trying to think about maybe where some of the leverage is in there that could put you onto the higher side of that guidance range. Is it going to be more VEM patients driven? Is it, you know, maybe some of the unknowns as you continue to integrate Lehan's? Maybe just any commentary there.

  A: I would say that all of the product lines have the opportunity to push us towards the upside, Dave, and that's the great situation we're in. Vince, the new patient starts are exceeding what we originally thought, and the metrics that Casey talked about about compliance are extremely important about keeping patients on and kind of getting that length of stay to where we want it to be. So they have... Upside, the maternal health business is growing dramatically, and as we continue to operationalize it and scale that, it probably has a very high likelihood of being a contributor to outperformance. And then the sleep side just continues to outperform what we ever thought it would do a few years ago. So, I mean, not to say that the other business lines don't have the opportunities, but those three areas, really have the ability to push us up towards that top end. And, you know, if everything works well, then who knows, we may be able to increase it later on. But right now we're very comfortable with where we sit.

• Q: Maybe just, you know, circling in on maternal a little bit, seeing a lot of growth there. Just curious as to how you think about what are the limiters there? You know, is it headcount? Is it an education campaign? Is it new products? Is it geographies? You know, what do you think could be some of the limiting factors there that you're going to focus on the most?

  A: Yeah, I mean, I'll start with complex respiratory, which is the business. I mean, the NCD roles and really just becoming the thought leader in it. Having our clinical protocols that were laid out by the NCD already in place at BiMed gave us a leg up to really be the first ones inside of our referral sources offices to explain how the new world is going to work. we've been leveraging that and educating our referral sources and they they understand what they're up against and so naturally you uh you know we're seeing our referrals have a spike just as a result of kind of being the educator of the new landscape inside of those offices but then yeah all the above pretty much on what you just laid out we uh we continue to expand into new geographies we've got Some new sales reps that are clicking on all cylinders. We've got a handful of new profile of reps that we've been hiring that have been taking off as well. So lots of good things with momentum and training and coaching and mentoring and getting folks producing sooner rather than later. So those are really positive trends that we're excited about. And then, yeah, that just becomes a land grab getting into new markets with our program. And I'll add, I think你 were specifically talking about maternal. What I would say is people on the sales front is not the – The governor is really back office and fulfillment that we're staffing up on. We have contracts in place, and we have marketing abilities around the country. So it's really about getting the mid and the back office scaled up, and we've already increased that business dramatically. So we're hiring as fast as we can and fulfilling as fast as we can. It's not a problem. we're finding salespeople, although we have some that we've laid out there, it's really more digital marketing than anything.

• Q: Maybe just one more for me, just on the margin side of things, you know, you've mentioned a couple of times that you're seeing operational efficiencies invent. You spent some time talking about the SG&A numbers. Just curious as to maybe your thoughts around what's next to be done here in the next three to six months. Is there a little hanging fruit left or do you feel like you've got it cleaned up pretty well to where you'd like it to be.

  A: No, there's always things that we continue to do, and we've been pretty transparent in the past that growth is going to come with some expenses, and we're going to continue to incur those, but we're extremely excited about efficiencies that we're seeing. If you want to talk about AI or machine-based learning or help on the intake side or the logistics side, we have a lot of things that we're implementing that should help with efficiencies it should help with uh the cadence of setups it should help with the labor per order that we're processing so all those things and then as we just continue to build these other business lines um The corporate G&A isn't having to go up as a reflection of that. So we're going to see some efficiencies through that as well. I think the most telling thing is the 200 basis point improvement in G&A in one year. So our goal is to continue to try to drive that number down and kind of improve margins over time. And as we've said ad nauseum on the call, this free cash flow enhancement is real, and we're very excited about it.