Viemed Healthcare, Inc. Q4 FY2025 earnings call

• 2025 was a milestone year with record revenue, adjusted EBITDA, and free cash flow, and progress in business diversification. - Building MyMed into a cash-generating home care platform with multiple growth engines, differentiating via high-touch clinical model and technology-enabled approaches. - In-home ventilation: moderation in patient growth due to NCD, but underlying demand strong; team proactively addressing new requirements, Engage patient platform aiding data management; some patients now qualifying under new NCD standards, Jan 2026 was strong new ventilator setup month. - Regulatory: CMS competitive bidding not expected to impact current product offerings materially, but compliance elements favor scale providers. - Sleep and resupply: PAT therapy patient count reached 34,528 (+62% y-o-y) as of Dec 31, 2025; new sleep patient setups up 70% y-o-y; resupply patients up 49% y-o-y. - Maternal health: Lehan acquisition integrated smoothly, accretive, with ~$9 million of revenue in 2025 from maternal health products; can scale beyond Lehan's original footprint, expected to be a more meaningful contributor in 2026. - Emphasis on high-touch clinical model, proprietary clinical platform, and strong team of 1,382 employees.

2025 saw record revenue of $270.3 million, up ~21% from 2024. Fourth quarter revenue was $76.2 million, up 26% y-o-y. Equipment and supply sales was the largest contributor, up $19.4 million (+63% y-o-y) driven by sleep resupply expansion and Lehan acquisition. Ventilator rentals increased $12.2 million (+10% y-o-y). Other non-vent HME rentals up $9.7 million (+20% y-o-y). Services revenue up $4.8 million (+24% y-o-y) driven by healthcare staffings. Ventilation's revenue contribution dropped from 56% in 2024 to 51% in 2025, sleep rose from 16% to 20%, maternal health ~3%. Full-year adjusted EBITDA was a record $61.4 million, margin ~22.7%. Gross margin was near 58%. Net cash provided by operating activities in 2025 was $51.9 million. Free cash flow was $28.1 million, up from $11.6 million in 2024. Ended 2025 with $13.5 million in cash, ~$46 million available under credit facilities, $11.3 million in long-term debt, effectively no net debt.

• 2026 full-year net revenue guided in range of $310 - $320 million, midpoint ~17% y-o-y growth (excluding potential acquisition contribution). - Adjusted EBITDA guided in range of $65 - $69 million. - First quarter expected to be relatively flat to slightly down sequentially due to NCD transition and seasonality; second quarter and beyond expected to return to normalized quarterly growth with sequential growth of ~3% - 5% throughout the rest of the year. - Expect continued investment in technology, compliance, infrastructure, and platform expansion alongside disciplined expense management, margin stability maintained. - Expect to continue generating significant free cash flow.

• Industry adjusting to updated national coverage determination (NCD), which brings operational efforts and some patient qualification changes, but underlying demand and clinical need remain strong. - CMS competitive bidding update's broader compliance and program integrity elements pose risks, but scale providers with strong documentation, operational controls, and national infrastructure are well-positioned.

Q: Dave Storms asked about the top of the to-do list for Lehan acquisition expansion, priority on expanding payers vs improving sales force.

A: Prioritize expanding payer network by strategically picking states, onboarding into technology, and concurrently training sales folks, cross-training sleep reps.

Q: Dave Storms also asked about overall sales force and training commentary.

A: Training underway, cross-training sleep reps in certain states where payers are ready to expand.

Q: Dave Storms inquired about levers to keep margins stable as mix diversifies.

A: Focus on scalability at G&A, reducing labor expenses to keep gross margin flat, EBITDA margins targeted to be maintained.

Q: Ilya Zutkov asked about key assumptions underlying 2026 revenue guidance across business segments.

A: Not forecasting aggressive vent growth due to NCD uncertainty, forecasting aggressive sleep growth, full year of Lehan acquisition boosts maternal health, growth across all product lines, split between organic and some acquisition.

Q: Ilya Zutkov asked about determining RT capacity and effect on 2026 service revenue.

A: RTs driven by patient volumes, sequential decline may be due to more RTs in high-volume areas, expect numbers to grow again in 2026 as vent patients stabilize.