Viemed Healthcare, Inc. Q3 FY2025 earnings call

• Acquisition of Lehan's Medical Equipment: Early quarter onboarded, full quarter of collaboration and integration, expanded team and service capabilities.
• Financial results: Record revenue of $71.9 million (24% Y/Y growth, 14% sequential growth), gross profit $41.3 million (57.5% margin), adjusted EBITDA $16.1 million (up 16% Y/Y, 22.4% margin), net income $3.5 million ($0.09 per diluted share).
• Operational momentum: PAP therapy patients up 64% Y/Y and 21% sequentially, SG&A expenses 44.4% of revenue, a 160 basis point improvement Y/Y and 130 basis point sequential improvement.
• Free cash flow: Trailing 12-month free cash flow $23.3 million, expected to remain strong.
• Share repurchase: Completed Q3 2025 share repurchase program.
• Innovation: Deploying AI-powered revenue cycle management tools, initially targeting sleep business, planning to extend to other service lines.

Ventilation: Core business with double-digit year-over-year growth, now accounts for less than half of net revenue. Sleep: New patient starts grew 96% year-over-year, resupply population increased 51% year-over-year and 33% sequentially, with resupply population surpassing PAP therapy rental base for the first time. Healthcare Staffing: Demonstrating resilience, anchored by behavioral health staffing, providing in-house health care recruiting. Maternity: Integrated Lehan's medical equipment, built first maternity claims outside acquired network, poised to be a significant growth driver in 2026, expanding beyond respiratory and sleep services.

• Full-year net revenue expected between $271 million and $273 million (previously $271 million to $277 million).
• Adjusted EBITDA expected between $60 million and $62 million (previously $59 million to $62 million).
• Trailing 12-month free cash flow at quarter end was $23.3 million, expected to remain strong through Q4 2025 and into 2026.

• Regulatory risks: Impact of upcoming regulatory changes, including Medicare Advantage coverage and competitive bidding.
• Audit risks: Potential audit impacts on revenue and margin.
• Market conditions: Uncertainties related to market shifts and competitive dynamics.

Q: Excluding Lehan's contribution, what's organic revenue growth?

A: 14% Q: What's driving sleep growth?

A: Gaining market share with specific sleep-focused reps, leveraging training and new referral sources Q: Thoughts on competitive bidding?

A: Anticipate it returning, confident in participating, maternal breast pump revenue insulated from competitive bidding Q: Payer mix shift and audit risk?

A: Payer mix shifting due to diversification, welcome audits as they tend to do well with them Q: Operational levers to protect mix and margin?

A: Technology initiatives like AI-based intake to streamline processes, SG&A improvement helps offset gross margin pressure Q: Focus of technological advancements?

A: Priority on AI-powered intake in sleep division, planning to extend to other products, with more AI/machine learning investments for scalability and efficiencies