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Sep 30
Chemed Q3 2025 Earnings Report
Chemed reported its third-quarter 2025 financial results, showing revenue growth and a decrease in GAAP and Adjusted Diluted EPS compared to the prior-year period.
Key Takeaways
Chemed Corporation delivered a mixed performance in the third quarter of 2025. The company achieved a 3.1% increase in consolidated revenue, reaching $624.9 million. However, GAAP Diluted EPS decreased by 10.8% to $4.46, and Adjusted Diluted EPS decreased by 6.6% to $5.27. The VITAS segment saw a 4.2% increase in net patient revenue and growth in Average Daily Census and admissions, while the Roto-Rooter segment experienced a 1.1% revenue increase.
Consolidated revenue increased by 3.1% to $624.9 million in Q3 2025.
GAAP Diluted EPS decreased by 10.8% to $4.46, and Adjusted Diluted EPS decreased by 6.6% to $5.27.
VITAS segment net patient revenue grew by 4.2% to $407.7 million, with ADC up 2.5% and admissions up 5.6%.
Roto-Rooter segment revenue increased by 1.1% to $217.2 million, but Adjusted EBITDA declined by 12.4%.
Chemed
Chemed
Chemed Revenue by Segment
Revenue by Segment
VITAS Healthcare Revenue
CapyFin.comRoto-Rooter Revenue
CapyFin.com Forward Guidance
Management reiterates its previously issued guidance for 2025, projecting Adjusted Diluted EPS between $22.00 and $22.30. This guidance assumes no Medicare Cap related to the Florida combined program for the government fiscal year 2026.
Positive Outlook
- Reiterated Adjusted Diluted EPS guidance of $22.00 to $22.30 for 2025.
- Guidance assumes no Medicare Cap impact for the Florida combined program in fiscal year 2026.
- Strong share repurchase activity, with $180.8 million of stock repurchased in the quarter.
- Significant undrawn borrowing capacity of approximately $404.5 million under the credit agreement.
- No current or long-term debt as of September 30, 2025.
Challenges Ahead
- Guidance excludes non-cash expense for stock options, tax benefits from stock option exercises, costs related to litigation, and other discrete items.
- Medicare Cap billing limitation of $6.1 million accrued in Q3 2025 for VITAS, up from $2.2 million in Q3 2024.
- Five VITAS Medicare provider numbers have a Medicare Cap billing limitation totaling $27.2 million.
- Acuity mix shift negatively impacted VITAS revenue growth by 121-basis points.
- Combination of Medicare Cap and other contra revenue changes negatively impacted VITAS revenue growth by 124-basis points.
Revenue & Expenses
Visualization of income flow from segment revenue to net income