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Item 1. Financial Statements

2025-08-06 compared with 2025-05-07 · 124 added, 85 removed, 517 unchanged (29% of the section changed)

4 unchanged sentences

Dollars, except outstanding shares)

March 31, 2025 At

June 30, 2025 At

December 31, 2024

3 unchanged sentences

Accounts receivable, net 2 26,549 24,911

2 26,789 24,911

Inventory 2 4,324 4,320

8 unchanged sentences

Identifiable intangibles, net 783 848

3 32,989 32,989

Goodwill 3 32,989 32,989

Total long-term assets $ 129,312 $ 124,189

5 unchanged sentences

Accrued liabilities 5 18,644 20,157

17,543 20,157

Finance lease liabilities, current portion 15 50

6 unchanged sentences

Long-term debt 6

5 3,530 3,589

Total long-term liabilities $ 5,709 $ 6,442

4 unchanged sentences

unlimited authorized;

39,523,787 and 39,132,897 issued and outstanding as of March 31, 2025 and December 31, 2024, respectively

39,605,005 and 39,132,897 issued and outstanding as of June 30, 2025 and December 31, 2024, respectively

8 $ 27,787 $ 23,365

4 unchanged sentences

Noncontrolling interest in subsidiary

3 1,893 1,908

TOTAL SHAREHOLDERS' EQUITY

141,624 133,301

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 184,603 $ 177,069

See accompanying notes to the condensed consolidated financial statements

3 unchanged sentences

Dollars, except share and per share amounts)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

Note 2025 2024 2025 2024

7 unchanged sentences

Depreciation and amortization

Loss (gain) on disposal of property and equipment

353 377 701 792

Other income, net

Gain on disposal of property and equipment

( 636 ) ( 545 ) ( 3,004 ) ( 332 )

Other expense (income), net

( 72 ) 563 ( 147 ) 537

Income from operations $ 5,095 $ 3,616 $ 8,936 $ 5,820

Non-operating income and expenses

Income from investments

Loss on investments

— ( 1,117 ) — ( 1,050 )

Interest expense, net

6 ( 132 ) ( 254 ) ( 311 ) ( 404 )

Net income before taxes 4,963 2,245 8,625 4,366

5 unchanged sentences

Net income per share

$ 0.07 $ 0.04

$ 0.06 $ 0.04

Basic 11 $ 0.08 $ 0.04 $ 0.15 $ 0.08

Diluted 11 $ 0.08 $ 0.04 $ 0.14 $ 0.08

Weighted average number of common shares outstanding:

Basic 11 39,515,247 38,822,980 39,471,244 38,558,479

41,627,876 40,580,634

Diluted 11 41,083,760 40,553,449 41,393,523 40,313,042

See accompanying notes to the condensed consolidated financial statements

9 unchanged sentences

Stock-based compensation - restricted stock

— — 1,321 — — 1,321

Exercise of options 60,130 304 — — — 304

3 unchanged sentences

Shareholders' equity, March 31, 2024 38,816,766 $ 21,842 $ 14,294 $ 80,137 $ — $ 116,273

Stock-based compensation - options — — 59 — — 59

Stock-based compensation - restricted stock

— — 1,561 — — 1,561

Exercise of options 4,000 21 — — — 21

Shares issued for vesting of restricted stock units 6,654 47 ( 47 ) — — —

Shares redeemed to pay income tax

( 1,621 ) — — ( 11 ) — ( 11 )

Acquired noncontrolling interest

— — — — 1,800 1,800

Net income — — — 1,468 9 1,477

Shareholders' equity, June 30, 2024 38,825,799 $ 21,910 $ 15,867 $ 81,594 $ 1,809 $ 121,180

Common Stock Additional paid-in capital Noncontrolling interest in subsidiary

4 unchanged sentences

Stock-based compensation - restricted stock

— — 2,295 — — 2,295

Exercise of options 2,225 11 — — — 11

3 unchanged sentences

Shareholders' equity, March 31, 2025 39,523,787 $ 28,151 $ 15,873 $ 90,732 $ 1,993 $ 136,749

Stock-based compensation - options — — 6 — — 6

Stock-based compensation - restricted stock

— — 2,335 — — 2,335

Exercise of options 336,633 1,357 — — — 1,357

Shares issued for vesting of restricted stock units 21,293 145 ( 145 ) — — —

Shares redeemed to pay income tax ( 6,647 ) — — ( 47 ) — ( 47 )

Distribution to non-controlling interest

— — — — ( 193 ) ( 193 )

Shares repurchased under the share repurchase program

( 270,061 ) ( 1,866 ) 33 — — ( 1,833 )

Net income — — — 3,157 93 3,250

Shareholders' equity, June 30, 2025 39,605,005 $ 27,787 $ 18,102 $ 93,842 $ 1,893 $ 141,624

See accompanying notes to the condensed consolidated financial statements

2 unchanged sentences

(Expressed in thousands of U.S.

Three Months Ended March 31,

Six Months Ended June 30,

Note 2025 2024

3 unchanged sentences

Depreciation and amortization

13,504 12,594

Stock-based compensation expense 8 4,652 3,052

1 unchanged sentence

Income from equity method investments — ( 261 )

Income from debt investment — ( 55 )

Loss (gain) on disposal of property and equipment

Loss from debt investment

Gain on disposal of property and equipment

( 3,004 ) ( 332 )

Amortization of deferred financing costs

Deferred income tax benefit

Changes in working capital:

Accounts receivable, net ( 1,638 ) ( 8,225 )

( 1,878 ) ( 6,026 )

Inventory ( 4 ) 470

Prepaid expenses and other assets ( 150 ) 1,523

2 unchanged sentences

Accrued liabilities ( 1,979 ) ( 904 )

( 3,050 ) ( 3,632 )

Income tax payable/receivable ( 2,433 ) ( 2,599 )

( 2,005 ) 522

Net cash provided by operating activities $ 15,108 $ 11,357

1 unchanged sentence

Purchase of property and equipment ( 23,612 ) ( 14,940 )

Cash paid for acquisitions, net of cash acquired

3 — ( 2,999 )

Proceeds from sale of property and equipment 4 13,355 1,407

3 unchanged sentences

Principal payments on term notes 6 ( 220 ) ( 810 )

6 ( 113 ) ( 589 )

Proceeds from revolving credit facilities 6 — 3,000

Payments for debt issuance costs

Shares redeemed to pay income tax 8 ( 1,631 ) ( 972 )

Shares repurchased under the share repurchase program

Repayments of finance lease liabilities

( 35 ) ( 249 )

Net cash used in financing activities

Distributions to non-controlling interest

Net cash provided by (used in) financing activities

$ ( 2,375 ) $ 1,143

Net decrease in cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

2,476 ( 4,032 )

4 unchanged sentences

Cash paid during the period for income taxes, net of refunds

$ 7,059 $ 3,841

Supplemental disclosures of non-cash transactions

2 unchanged sentences

Equipment sales receivable at end of period

$ 986 $ 2,187

Repurchases of shares not yet settled

See accompanying notes to the condensed consolidated financial statements

18 unchanged sentences

The Company's fiscal year ends on December 31.

The Condensed Consolidated Balance Sheet as of March 31, 2025 was derived from audited consolidated financial statements but does not include all disclosures required by GAAP.

The Condensed Consolidated Balance Sheet as of June 30, 2025 was derived from audited consolidated financial statements but does not include all disclosures required by GAAP.

These condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and the notes thereto and the report of the Company's independent registered public accounting firm included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

32 unchanged sentences

Revisions in reserve estimates are recorded as an adjustment to revenue in the period of revision.

Included in accounts receivable at March 31, 2025 are amounts due from Medicare representing 29 % of total outstanding net receivables.

Included in accounts receivable at June 30, 2025 are amounts due from Medicare representing 28 % of total outstanding net receivables.

As of December 31, 2024, 27 % of total outstanding net receivables were amounts due from Medicare.

14 unchanged sentences

ASU 2019-04 clarifies that if an entity identifies observable price changes in orderly transactions for the identical or a similar investment of the same issuer, it must measure its equity investment at fair value in accordance with ASC 820 as of the date that the observable transaction occurred.

The balance of the Company’s equity investments was $ 2.8 million as of March 31, 2025 and December 31, 2024.

The Company was not aware of any impairment or observable price change adjustments that needed to be made as of March 31, 2025 on its investments in equity securities without a readily determinable fair value.

The balance of the Company’s equity investments was $ 2.8 million as of June 30, 2025 and December 31, 2024.

The Company was not aware of any impairment or observable price change adjustments that needed to be made as of June 30, 2025 on its investments in equity securities without a readily determinable fair value.

Intangible Assets

24 unchanged sentences

The revenues from each major source are summarized in the following table:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Revenue from rentals

4 unchanged sentences

Equipment and supply sales

9,514 7,378 17,020 13,516

Service revenues

5,900 4,931 12,388 9,265

Total revenues $ 63,056 $ 54,965 $ 122,185 $ 105,558

Revenues from Medicare as a percentage of the Company's total revenue for the three months ended March 31, 2025 and 2024 were 41 % and 43 %, respectively.

Revenues from Medicare as a percentage of the Company's total revenue for the six months ended June 30, 2025 and 2024 were 40 % and 43 %, respectively.

Stock-Based Compensation

45 unchanged sentences

When properties are classified as held for sale, they are recorded at the lower of the carrying amount or the expected sales price less costs to sell.

There were no impairment charges recognized during the three months ended March 31, 2025 and March 31, 2024.

There were no impairment charges recognized during the six months ended June 30, 2025 and June 30, 2024.

Net Income per Share Attributable to Viemed Healthcare, Inc.'s Common Stockholders

27 unchanged sentences

As a result of the acquisition, goodwill of $ 3.2 million and a trade name of $ 0.4 million were recognized.

The Company expects its portion of the goodwill to be fully tax-deductible.

The Company determined that its portion of the goodwill is fully tax-deductible.

Additionally, a noncontrolling interest of $ 1.8 million was recorded at the acquisition date.

4 unchanged sentences

The following table details the Company’s fixed assets:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Medical equipment $ 116,058 $ 116,938

7 unchanged sentences

$ 79,735 $ 76,279

Depreciation in the amount of $ 6.3 million and $ 5.9 million is included in cost of revenue for the three months ended March 31, 2025 and 2024, respectively.

Medical equipment purchases with a cost of $ 3.6 million and $ 2.2 million were included in accounts payable at March 31, 2025 and December 31, 2024, respectively.

Depreciation in the amount of $ 6.5 million and $ 5.9 million is included in cost of revenue for the three months ended June 30, 2025 and 2024, respectively, and in the amount of $ 12.8 million and $ 11.8 million for the six months ended June 30, 2025 and 2024, respectively.

Current Liabilities

The Company’s short-term accrued liabilities are included within current liabilities and consist of the following:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Accrued trade payables $ 4,343 $ 4,016

6 unchanged sentences

Debt and Lease Liabilities

The following table summarizes the Company’s debt as of March 31, 2025 and December 31, 2024:

March 31, 2025 December 31, 2024

The following table summarizes the Company’s debt as of June 30, 2025 and December 31, 2024:

June 30, 2025 December 31, 2024

2022 Senior Credit Facilities

16 unchanged sentences

• Consolidated Fixed Charge Coverage Ratio ( defined generally as (a) adjusted EBITDA minus capital expenditures minus cash taxes to (b) the sum of scheduled principal payments plus cash interest expense plus restricted payments) of not less than 1.25 :1.0.

The Company was in compliance with all covenants under the 2022 Senior Credit Facilities in effect at March 31, 2025.

The Company was in compliance with all covenants under the 2022 Senior Credit Facilities in effect at June 30, 2025.

The 2022 Senior Credit Facilities include provisions permitting the Company from time to time to, subject to certain terms and conditions, increase the aggregate amount of commitments under the 2022 Revolving Credit Facility and/or establish one or more additional term loans under the 2022 Term Loan Facility, in each case, with additional commitments from existing lenders or new commitments from financial institutions acceptable to the Administrative Agent in its reasonable discretion;

3 unchanged sentences

On May 28, 2024, the Company entered into a First Amendment to the 2022 Senior Credit Facilities that (a) extended the delayed draw term loan commitment expiration date to November 29, 2025, from its initial expiration date of May 29, 2024, and (b) provided for other technical amendments.

On June 6, 2025, the Company entered into a Second Amendment to the 2022 Senior Credit Facilities that (a) increased the permitted amount of restricted payments that may be made by the Company and its subsidiaries subject to specified conditions, and (b) made other conforming and administrative changes.

Medical Equipment Financing

2 unchanged sentences

The Company has recognized finance lease liabilities for vehicles and operating leases for land and buildings that have terms greater than twelve months, as follows:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Lease liabilities $ 2,605 $ 2,868

4 unchanged sentences

The exercise of lease renewal options is at the Company's sole discretion and is included in the lease term for calculations of its right-of-use assets and liabilities when it is reasonably certain that the Company plans to renew these leases.

These lease liabilities are recorded at their present value using a discount rate ranging from 5.50 % to 7.87 %, based on the Company's incremental borrowing rate at the time of assessment.

At March 31, 2025, the weighted average lease term was approximately 3.23 years.

Future maturities of the Company's operating lease liabilities as of March 31, 2025 are summarized as follows:

These lease liabilities are recorded at present value based on a discount rate ranging from 5.5 % to 7.87 %, based on the Company's incremental borrowing rate at the time of assessment.

At June 30, 2025 , the weighted average lease term was approximately 3.02 years.

Future maturities of the Company's operating lease liabilities as of June 30, 2025 are summarized as follows:

Lease Liability

2 unchanged sentences

Present value of lease liabilities $ 2,590

Operating rental expenses were $ 386,000 and $ 355,000 during the three months ended March 31, 2025 and March 31, 2024 , respectively.

Operating rental expenses were $ 0.8 million and $ 0.7 million during the six months ended June 30, 2025 and June 30, 2024, respectively.

Fair Value Measurement

10 unchanged sentences

There were no transfers between fair value measurement levels during any presented period.

The following tables summarize the Company's assets measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024:

At March 31, 2025

The following tables summarize the Company's assets measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024:

At June 30, 2025

(In thousands) Level 1 Level 2 Level 3 Total

7 unchanged sentences

Total $ 10,582 $ — $ — $ 10,582

Assets Measured at Fair Value on a Nonrecurring Basis

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The Company measures certain assets at fair value on a nonrecurring basis.

8 unchanged sentences

The Company’s estimates are based upon historical trends, management’s knowledge and experience and overall economic factors, including projections of future earnings potential.

Developing discounted future cash flows in applying the income approach requires the Company to evaluate its intermediate to longer-term strategies, including, but not limited to, estimates of

revenue growth, operating margins, capital requirements, inflation and working capital management.

Developing discounted future cash flows in applying the income approach requires the Company to evaluate its intermediate to longer-term strategies, including, but not limited to, estimates of revenue growth, operating margins, capital requirements, inflation and working capital management.

The development of appropriate rates to discount the estimated future cash flows requires the selection of risk premiums, which can materially impact the present value of future cash flows.

8 unchanged sentences

The Company has only one class of stock outstanding, common shares.

The authorized stock consists of an unlimited number of common shares with no stated par value, of which 39,523,787 and 39,132,897 shares were issued and outstanding as of March 31, 2025 and December 31, 2024, respectively.

The Company acquired and cancelled 193,173 common shares at a cost of $ 1.6 million to satisfy employee income tax withholding associated with RSUs vesting during the three months ended March 31, 2025.

The Company’s retained earnings were reduced by the amount paid for the shares repurchased and cancelled.

The authorized stock consists of an unlimited number of common shares with no stated par value, of which 39,605,005 and 39,132,897 shares were issued and outstanding as of June 30, 2025 and December 31, 2024, respectively.

For the six months ended June 30, 2025, the Company repurchased and canceled 270,061 common shares at a cost of $ 1.8 million pursuant to the Share Repurchase Program authorized by the Board of Directors on June 6, 2025 (the "2025 Share Repurchase Program").

The Company also acquired and cancelled 199,820 common shares at a cost of $ 1.6 million to satisfy employee income tax withholding associated with RSUs vesting during the six months ended June 30, 2025.

The Company’s equity accounts were reduced by the amount paid for the shares repurchased and cancelled.

Stock-Based Compensation

2 unchanged sentences

Awards include common share purchase options, restricted stock, stock appreciation rights, performance awards, or other stock-based awards, including restricted stock units, deferred stock units, and dividends and dividend equivalents.

The maximum number of common shares that will be available for awards and issuance under the 2024 Omnibus Plan and that may be reserved for issuance at any time, including under previous plans such as the 2020 Long Term Incentive Plan (effective June 11, 2020), the Amended and Restated Stock Option Plan (effective as of July 17, 2018), the Amended and Restated Restricted Share Unit Plan (effective as of July 17, 2018), and the Deferred Share Unit Plan (effective July 17, 2018), is 7,800,000 shares.

On June 5, 2025, the Company's shareholders approved the first amendment to the 2024 Omnibus Plan, increasing the aggregate number of common shares authorized for issuance.

Following this amendment, the maximum number of common shares that will be available for awards and issuance under the 2024 Omnibus Plan and that may be reserved for issuance at any time, including under previous plans such as the 2020 Long Term Incentive Plan (effective June 11, 2020), the Amended and Restated Stock Option Plan (effective as of July 17, 2018), the Amended and Restated Restricted Share Unit Plan (effective as of July 17, 2018), and the Deferred Share Unit Plan (effective July 17, 2018), is 7,904,769 shares.

The maximum amount of common shares that may be awarded under the 2024 Omnibus Plan as “incentive stock options” is 1,000,000 common shares.

As of March 31, 2025, the Company had outstanding options of 3,898,000 and RSUs of 2,224,000 associated with common shares under the existing plans.

The following table summarizes stock-based compensation expense for the three months ended March 31, 2025 and 2024 (in thousands):

Three Months Ended March 31,

As of June 30, 2025, the Company had outstanding options of 3,552,000 and RSUs of 2,187,000 associated with common shares under the existing plans.

The following table summarizes stock-based compensation expense for the three and six months ended June 30, 2025 and 2024 (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Stock-based compensation - options $ 6 $ 59 $ 22 $ 170

1 unchanged sentence

Total $ 2,341 $ 1,620 $ 4,652 $ 3,052

At March 31, 2025, there was approximately $ 9,000 of total unrecognized pre-tax stock option expense under the Company's equity compensation plans, which is expected to be recognized over a weighted average period of 0.36 years.

As of March 31, 2025, there was approximately $ 12,442,000 of total unrecognized pre-tax compensation expense related to outstanding time-based restricted stock units that is expected to be recognized over a weighted average period of 1.71 years.

The following table summarizes stock option activity for the three months ended March 31, 2025:

At June 30, 2025, there was approximately $ 3,000 of total unrecognized pre-tax stock option expense under the Company's equity compensation plans, which is expected to be recognized over a weighted-average period of 0.15 years.

As of June 30, 2025, there was approximately $ 9,991,000 of total unrecognized pre-tax compensation expense related to outstanding time-based restricted stock units that is expected to be recognized over a weighted-average period of 1.56 years.

The following table summarizes stock option activity for the six months ended June 30, 2025:

Number of options

4 unchanged sentences

Expired / Forfeited ( 26 ) 10.44

Balance March 31, 2025 3,898 $ 5.34 4.8 years $ 8,677

Balance June 30, 2025 3,552 $ 5.45 4.7 years $ 6,570

(1) For presentation purposes, stock options issued with a Canadian dollar exercise price have been translated to U.S.

dollars based on the prevailing exchange rate on the date of grant.

(2) The aggregate intrinsic value of options outstanding represents the difference between the exercise price of the option and the closing price of the Company's common shares on the last trading day of the perio d ( $ 7.28 and $ 8.02 on March 31, 2025 and December 31, 2024, respectively).

The aggregate intrinsic value of options outstanding was $ 8,677,000 and options exercisable was $ 8,643,000 at March 31, 2025.

For the three months ended March 31, 2025, 2,225 common shares were issued pursuant to the exercise of stock options.

At March 31, 2025, the Company had 3,871,000 exercisable stock options outstanding with a weighted average exercise price of $ 5.34 and a weighted average remaining contractual life of 4.8 years.

(2) The aggregate intrinsic value of options outstanding represents the difference between the exercise price of the option and the closing price of the Company's common shares on the last trading day of the period ($ 6.91 and $ 8.02 on June 30, 2025 and December 31, 2024, respectively ).

The aggregate intrinsic value of options outstanding was $ 6,570,000 and options exercisable was $ 6,560,000 at June 30, 2025.

For the six months ended June 30, 2025, 338,858 common shares were issued pursuant to the exercise of stock options.

At June 30, 2025, the Company had 3,535,000 exercisable stock options outstanding with a weighted average exercise price of $ 5.45 and a weighted average remaining contractual life of 4.6 years.

At December 31, 2024, the Company had 3,691,000 exercisable stock options outstanding with a weighted average exercise price of $ 5.37 and a weighted average remaining contractual life of 4.9 years .

5 unchanged sentences

Expected volatility is based on implied volatilities from traded options on the Company's common shares and historical volatility of the Company's common shares over the expected life of the option.

There were no issuances of options during the three months ended March 31, 2025.

There were no issuances of options during the six months ended June 30, 2025.

Restricted Stock Units

3 unchanged sentences

The Company accounts for forfeitures of RSUs under ASU 2016-09 and recognizes forfeitures in the period in which they occur.

The following table summarizes RSU activity for the three months ended March 31, 2025:

The following table summarizes RSU activity for the six months ended June 30, 2025:

Number of RSUs (000's) Weighted average grant price Weighted average remaining contractual life Aggregate intrinsic value (1)

2 unchanged sentences

Vested ( 603 ) 7.46

Balance March 31, 2025 2,224 $ 8.08 1.71 years $ 16,188

(1) The aggregate intrinsic value of time-based RSUs outstanding was based on the closing price of the Company's common shares on the last trading day of the p eriod ( $ 7.28 and $ 8.02 on March 31, 2025 and December 31, 202 4 , respectively ) .

During the three months ended March 31, 2025, the Company issued 1,291,631 RSUs with equal annual vestings over a three year period and a fair value of $ 8.15 per share.

Balance June 30, 2025 2,187 $ 8.10 1.56 years $ 15,109

(1) The aggregate intrinsic value of time-based RSUs outstanding was based on the closing price of the Company's common shares on the last trading day of the period ($ 6.91 and $ 8.02 on June 30, 2025 and December 31, 2024, respectively ).

During the six months ended June 30, 2025, the Company issued 1,291,631 RSUs with vestings over a three year period and a fair value of $ 8.15 per share.

Phantom Share Units

3 unchanged sentences

The cash-settled PSUs are accounted for as liability awards and are re-measured at fair value each reporting period until they become vested with accrued liability and related expense being recognized over the requisite service period.

The following table summarizes PSU activity for the three months ended March 31, 2025:

The following table summarizes PSU activity for the six months ended June 30, 2025:

Number of phantom share units (000's) Value of share equivalents (1)

2 unchanged sentences

Vested ( 207 ) 1,641

Balance March 31, 2025

Balance June 30, 2025 494 $ 3,414

(1) The value of outstanding share equivalents at the beginning of the period is based on the market price of the Company’s common shares at that time, the value of issued share equivalents is based on the market price of the Company’s common shares at issuance, the value of vested share equivalents is based on the cash paid at the time of vesting, and the values of forfeited share equivalents and outstanding share equivalents at the end of the period are based on the market price of the Company's common shares at the end of the period.

The market price of the Company's common shares wa s $ 7.28 and $ 8.02 on March 31, 2025 and December 31, 2024, respectively.

The market price of the Company's common shares was $ 6.91 and $ 8.02 on June 30, 2025 and December 31, 2024, respectively.

The change in fair value of the PSUs has been charged to the Condensed Consolidated Statements of Income and recorded as a liability included in accrued liabilities and long-term accrued liabilities.

The total liability associated with PSUs at March 31, 2025 is $ 1,327,000 , with $ 917,000 of this amount included in current accrued liabilities and the remaining portion of $ 410,000 included in long-term accrued liabilities.

The total liability associated with PSUs at June 30, 2025 is $ 1.6 million, with $ 1.1 million of this amount included in current accrued liabilities and the remaining portion of $ 0.5 million included in long-term accrued liabilities.

The impact associated with the fair value re-measurement of PSUs is recorded in selling, general and administrative expenses within the unaudited Condensed Consolidated Statements of Income.

The following table summarizes expense associated with the PSUs for the three months ended March 31, 2025 and 2024 (in thousands):

Three Months Ended March 31,

The following table summarizes expense (benefit) associated with the PSUs for the three and six months ended June 30, 2025 and 2024 (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Selling, general, and administrative $ 370 $ ( 287 ) $ 781 $ 553

The Company paid cash settlements of $ 1.6 million and $ 1.0 million during the three months ended March 31, 2025 and 2024, respectively, pertaining to vestings of cash-settled PSUs.

The Company paid cash settlements of $ 1.6 million during each of the six months ended June 30, 2025 and 2024 pertaining to vestings of cash-settled PSUs.

Commitments and Contingencies

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Reviews, audits and investigations of this sort can lead to government actions, which can result in the assessment of recoupment of reimbursement, civil or criminal fines or penalties, or other sanctions, including restrictions or changes in the way the Company conducts business, loss of licensure or exclusion from participation in government healthcare programs.

For the three months ended March 31, 2025, the Company recorded income tax expe nse of $ 1.0 million , which includes a discrete tax benefit of $ 0.1 million associated with stock-based compensation arrangements.

Excluding the impact of the discrete taxes, the effective rate for the three months ended March 31, 2025 is 29.7 %.

For the six months ended June 30, 2025, the Company recorded income tax expense of $ 2.7 million, which includes a discrete tax benefit of less than $ 0.1 million associated with stock-based compensation arrangements.

Excluding the impact of the discrete taxes, the effective rate for the six months ended June 30, 2025 is 31.7 %.

The effective rate differs from the amount computed by applying the statutory federal and state income tax rates to ordinary income before the provision for income taxes due to permanent non-deductible differences.

The Company's effective tax rate is based on forecasted annual results which may fluctuate significantly through the rest of the year.

At March 31, 2025 and 2024, the Company had no amounts recorded for uncertain tax positions and does not expect any material changes in uncertain tax benefits during the next 12 months.

At June 30, 2025 and 2024, the Company had no amounts recorded for uncertain tax positions and does not expect any material changes in uncertain tax benefits during the next 12 months.

The Company recognizes interest and penalties related to income tax matters in income tax expense.

8 unchanged sentences

The following reflects the earnings and share data used in the basic and diluted earnings per share computations:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Numerator - basic and diluted:

2 unchanged sentences

Basic weighted-average number of common shares 39,515,247 38,822,980 39,471,244 38,558,479

39,426,753 38,717,123

Diluted weighted-average number of shares 41,083,760 40,553,449 41,393,523 40,313,042

41,627,876 40,580,634

Basic earnings per share $ 0.08 $ 0.04 $ 0.15 $ 0.08

2 unchanged sentences

Basic weighted-average number of common shares 39,515,247 38,822,980 39,471,244 38,558,479

39,426,753 38,717,123

Stock options and other dilutive securities 1,568,513 1,730,469 1,922,279 1,754,563

Diluted weighted-average number of shares 41,083,760 40,553,449 41,393,523 40,313,042

41,627,876 40,580,634

Anti-dilutive shares excluded from the calculation consisted of dilutive employee stock options and RSUs that were de minimis in all periods presented.

Subsequent Events

On May 6, 2025, the Company, through its a wholly-owned subsidiary Viemed, Inc., entered into a definitive agreement to acquire Lehan Drugs, Inc.

(“Lehan”), a privately held provider of home medical equipment headquartered in DeKalb, Illinois, for a base purchase price of $ 26 million, subject to customary adjustments for net working capital and an estimated $ 2.2 million of additional contingent payments.

The acquisition is expected to be funded through a combination of cash on hand and borrowings under the Company’s existing credit facilities.

On July 1, 2025, the Company completed the acquisition of Lehan’s Medical Equipment, a privately held provider of home medical equipment headquartered in DeKalb, Illinois.

The acquisition consideration includes a base purchase price of $ 26 million, subject to customary adjustments, and estimated contingent consideration of approximately $ 2.2 million.

The transaction was funded using $ 9.0 million from the Company’s 2022 Revolving Credit Facility, $ 9.0 million from the 2022 Term Loan Facility, and the remainder with cash on hand.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements