What changed in this filing

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Item 1. Financial Statements

2025-11-05 compared with 2025-08-06 · 151 added, 69 removed, 572 unchanged (28% of the section changed)

4 unchanged sentences

Dollars, except outstanding shares)

June 30, 2025 At

September 30, 2025 At

December 31, 2024

4 unchanged sentences

Inventory 2 5,269 4,320

Income tax receivable

Prepaid expenses and other assets 4,265 6,109

29 unchanged sentences

unlimited authorized;

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

38,017,907 and 39,132,897 issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

8 $ 16,901 $ 23,365

14 unchanged sentences

Dollars, except share and per share amounts)

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

Three Months Ended September 30, Nine Months Ended September 30,

Note 2025 2024 2025 2024

8 unchanged sentences

397 348 1,098 1,140

Gain on disposal of property and equipment

Loss (gain) on disposal of property and equipment

476 ( 469 ) ( 2,528 ) ( 801 )

3 unchanged sentences

Non-operating income and expenses

Loss on investments

Income (loss) from investments

— 96 — ( 954 )

41 unchanged sentences

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

Stock-based compensation - options — — 61 — — 61

Stock-based compensation - restricted stock

— — 1,651 — — 1,651

Exercise of options 17,516 91 — — — 91

Shares issued for vesting of restricted stock units 101,438 748 ( 748 ) — — —

Shares redeemed to pay income tax

( 12,506 ) — — ( 93 ) — ( 93 )

Net income — — — 3,878 27 3,905

Shareholders' equity, September 30, 2024

38,932,247 $ 22,749 $ 16,831 $ 85,379 $ 1,836 $ 126,795

See accompanying notes to the condensed consolidated financial statements

VIEMED HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(Expressed in thousands of U.S.

Dollars, except share and per share amounts)

Common Stock Additional paid-in capital Noncontrolling interest in subsidiary

22 unchanged sentences

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

Stock-based compensation - options — — 3 — — 3

Stock-based compensation - restricted stock

— — 2,177 — — 2,177

Exercise of options 13,965 71 — — — 71

Shares issued for vesting of restricted stock units 119,569 834 ( 834 ) — — —

Shares redeemed to pay income tax ( 14,252 ) — — ( 101 ) — ( 101 )

Distribution to non-controlling interest

— — — — ( 93 ) ( 93 )

Shares repurchased under the share repurchase program

( 1,706,380 ) ( 11,791 ) 5 — — ( 11,786 )

Net income — — — 3,513 87 3,600

Shareholders' equity, September 30, 2025

38,017,907 $ 16,901 $ 19,453 $ 97,254 $ 1,887 $ 135,495

See accompanying notes to the condensed consolidated financial statements

2 unchanged sentences

(Expressed in thousands of U.S.

Six Months Ended June 30,

Nine Months Ended September 30,

Note 2025 2024

11 unchanged sentences

Amortization of deferred financing costs

Deferred income tax benefit

Deferred income tax expense (benefit)

2,729 ( 3,507 )

Changes in working capital:

15 unchanged sentences

Proceeds from exercise of options 8 1,439 416

Proceeds from term notes

Principal payments on term notes 6 ( 484 ) ( 954 )

Proceeds from revolving credit facilities 6 13,000 3,000

Payments on revolving credit facilities

6 ( 5,000 ) ( 5,000 )

Payments for debt issuance costs

1 unchanged sentence

Shares repurchased under the share repurchase program

8 ( 13,225 ) —

Repayments of finance lease liabilities

3 unchanged sentences

$ 2,662 $ ( 4,093 )

Net increase (decrease) in cash and cash equivalents

Net decrease in cash and cash equivalents

( 6,417 ) ( 1,492 )

9 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 June 30, 2025 was derived from audited consolidated financial statements but does not include all disclosures required by GAAP.

The Condensed Consolidated Balance Sheet as of September 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 June 30, 2025 are amounts due from Medicare representing 28 % of total outstanding net receivables.

Included in accounts receivable at September 30, 2025 are amounts due from Medicare representing 27 % 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 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.

The balance of the Company’s equity investments was $ 2.8 million as of September 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 September 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 June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

9 unchanged sentences

Total revenues $ 71,914 $ 58,004 $ 194,099 $ 163,562

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.

Revenues from Medicare as a percentage of the Company's total revenue for the nine months ended September 30, 2025 and 2024 were 39 % and 44 %, 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 six months ended June 30, 2025 and June 30, 2024.

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

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

22 unchanged sentences

The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In September 2025, the FASB issued ASU No.

2025-06, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40) , which amends certain aspects of the accounting and disclosure requirements for internal-use software costs.

The amendments remove references to software project development stages and provide updated guidance for assessing whether the probable-to-complete threshold for capitalization has been met.

The ASU is effective for annual reporting periods beginning after December 15, 2027, and interim periods within those annual periods.

Early adoption is permitted.

The amendments may be applied prospectively, retrospectively, or using a modified prospective approach.

The Company is currently evaluating the effect of adopting this guidance on its consolidated financial statements and related disclosures.

Business Combinations

Lehan Drugs, Inc

On July 1, 2025, the Company completed the acquisition of 100 % of the outstanding equity interests of Lehan Drugs, Inc.

(“Lehan”), an Illinois-based provider of home medical equipment.

The acquisition met the definition of a business and was accounted for under the acquisition method of accounting in accordance with ASC 805.

The fair value of the consideration totaled approximately $ 28.7 million.

The following table summarizes the estimated fair values of the consideration paid or payable, assets acquired, and liabilities assumed at the acquisition date (in thousands):

Purchase Price

Cash paid or payable $ 26,921

Contingent consideration

TOTAL CONSIDERATION

Identifiable Assets

Cash and cash equivalents 383

Accounts receivable 1,833

Inventory 786

Prepaid expenses and other assets 176

Property and equipment, net 959

Lease assets 60

Identifiable intangibles 628

TOTAL ASSETS 4,825

Identifiable Liabilities

Trade payables 490

Deferred revenue 494

Accrued liabilities 586

Current portion of lease liabilities 41

Long-term lease liabilities 18

TOTAL LIABILITIES 1,629

Net assets acquired

Resulting goodwill $ 25,475

The purchase price allocation remains preliminary as the Company is in the process of finalizing third-party valuations of certain tangible and intangible assets, as well as determining the final net working capital adjustment.

Accordingly, the amounts reported above are subject to change during the measurement period, which will not exceed 12 months from the acquisition date.

The results of Lehan’s operations have been included in the Company’s condensed consolidated financial statements since the acquisition date.

The Company incurred approximately $ 1.0 million of acquisition-related costs during the nine months ended September 30, 2025, which are included in selling, general and administrative expenses.

Goodwill recognized in this transaction primarily represents the expected realization of operational synergies, the integration of Lehan’s maternal health services within Viemed’s broader clinical platform, and the strategic expansion of the Company’s geographic presence across the Midwest.

All goodwill is expected to be deductible for income tax purposes.

East Alabama HomeMed, LLC

9 unchanged sentences

The following table details the Company’s fixed assets:

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Medical equipment $ 120,240 $ 116,938

7 unchanged sentences

$ 80,512 $ 76,279

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.

Depreciation in the amount of $ 7.1 million and $ 6.1 million is included in cost of revenue for the three months ended September 30, 2025 and 2024, respectively, and in the amount of $ 19.9 million and $ 17.9 million for the nine months ended September 30, 2025 and 2024, respectively.

Current Liabilities

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

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Accrued trade payables $ 5,747 $ 4,016

3 unchanged sentences

Current portion of phantom share liability 1,253 1,701

Acquisition-related contingent consideration

Accrued other liabilities 5,011 3,422

1 unchanged sentence

Debt and Lease Liabilities

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

June 30, 2025 December 31, 2024

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

September 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 June 30, 2025.

The Company was in compliance with all covenants under the 2022 Senior Credit Facilities in effect at September 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;

8 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:

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Lease liabilities $ 3,559 $ 2,868

5 unchanged sentences

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:

At September 30, 2025 , the weighted average lease term was approximately 3.30 years.

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

Lease Liability

Thereafter 167

Total lease payments $ 4,066

1 unchanged sentence

Present value of lease liabilities $ 3,559

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

Operating rental expenses were $ 1.3 million and $ 1.1 million during the nine months ended September 30, 2025 and 2024 , respectively.

Fair Value Measurement

7 unchanged sentences

The degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3.

Assets Measured at Fair Value on a Recurring Basis

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

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company measures certain assets and liabilities at fair value on a recurring basis.

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 June 30, 2025 and December 31, 2024:

At June 30, 2025

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

At September 30, 2025

(In thousands) Level 1 Level 2 Level 3 Total

Recurring Fair Value Measurements:

Money market mutual funds $ 289 $ — $ — $ 289

Total $ 4,277 $ — $ — $ 4,277

Acquisition-related contingent consideration

$ — $ — $ 1,750 $ 1,750

At December 31, 2024

(In thousands) Level 1 Level 2 Level 3 Total

Recurring Fair Value Measurements:

Money market mutual funds $ 10,582 $ — $ — $ 10,582

Total $ 10,582 $ — $ — $ 10,582

Acquisition-Related Contingent Consideration

The Company estimates the fair value of acquisition-related contingent consideration liabilities using the income approach, based on a probability-weighted discounted cash flow model.

Because this valuation relies on significant inputs that are not observable in active markets, it is classified as a Level 3 fair value measurement.

Level 3 instruments are valued using unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability.

The Company reassesses the fair value of acquisition-related contingent consideration each reporting period, and any changes in estimated fair value are recognized in Other expense (income) in the Condensed Consolidated Statements of Income.

At September 30, 2025, contingent consideration liabilities of $ 1.8 million were included in accrued liabilities in the Condensed Consolidated Balance Sheets.

There were no changes in fair value or payments related to contingent consideration during the nine months ended September 30, 2025.

At December 31, 2024, the Company had no contingent consideration liabilities.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

20 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 39,605,005 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 authorized stock consists of an unlimited number of common shares with no stated par value, of which 38,017,907 and 39,132,897 shares were issued and outstanding as of September 30, 2025 and December 31, 2024, respectively.

For the nine months ended September 30, 2025, the Company repurchased and canceled 1,976,441 common shares at a cost of $ 13.6 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 214,072 common shares at a cost of $ 1.7 million to satisfy employee income tax withholding associated with RSUs vesting during the nine months ended September 30, 2025.

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

6 unchanged sentences

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 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,

As of September 30, 2025, the Company had outstanding options of 3,538,000 and RSUs of 2,128,000 associated with common shares under the existing plans.

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

2 unchanged sentences

Total $ 2,180 $ 1,712 $ 6,832 $ 4,764

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:

At September 30, 2025, there was no remaining unrecognized pre-tax stock option expense under the Company’s equity compensation plans.

As of September 30, 2025, there was approximately $ 8,150,000 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 1.45 years.

The following table summarizes stock option activity for the nine months ended September 30, 2025:

Number of options

4 unchanged sentences

Expired / Forfeited ( 26 ) 10.44

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

Balance September 30, 2025 3,538 $ 5.45 4.4 years $ 6,219

(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 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.

(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 ($ 6.79 and $ 8.02 on September 30, 2025 and December 31, 2024, respectively ).

The aggregate intrinsic value of options outstanding and options exercisable was $ 6,219,000 at September 30, 2025.

For the nine months ended September 30, 2025, 352,823 common shares were issued pursuant to the exercise of stock options.

At September 30, 2025, the Company had 3,538,000 exercisable stock options outstanding with a weighted average exercise price of $ 5.45 and a weighted average remaining contractual life of 4.4 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 six months ended June 30, 2025.

There were no issuances of options during the nine months ended September 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 six months ended June 30, 2025:

The following table summarizes RSU activity for the nine months ended September 30, 2025:

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

2 unchanged sentences

Vested ( 723 ) 7.44

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.

Forfeited ( 67 ) 7.98

Balance September 30, 2025 2,128 $ 8.08 1.45 years $ 14,449

(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 ($ 6.79 and $ 8.02 on September 30, 2025 and December 31, 2024, respectively ).

During the nine months ended September 30, 2025, the Company issued 1,404,210 RSUs with a vesting term of one or three years and a weighted-average fair value of $ 8.05 per share.

Phantom Share Units

1 unchanged sentence

PSUs granted under the plan are non-assignable and are settled in cash at vesting based on the fair value of the Company's common stock on the vesting date.

PSUs vest annually over a three-year period.

PSUs vest generally over a one or three-year period.

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 six months ended June 30, 2025:

The following table summarizes PSU activity for the nine months ended September 30, 2025:

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

2 unchanged sentences

Vested ( 215 ) 1,758

Balance June 30, 2025 494 $ 3,414

( 15 ) ( 105 )

Balance September 30, 2025 483 $ 3,280

(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 was $ 6.91 and $ 8.02 on June 30, 2025 and December 31, 2024, respectively.

The market price of the Company's common shares was $ 6.79 and $ 8.02 on September 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 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 total liability associated with PSUs at September 30, 2025 is $ 1.9 million, with $ 1.3 million of this amount included in current accrued liabilities and the remaining portion of $ 0.6 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 (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,

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Selling, general and administrative

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.

$ 353 $ 619 $ 1,134 $ 1,172

The Company paid cash settlements of $ 1.8 million and $ 1.6 million during the nine months ended September 30, 2025 and 2024, respectively, pertaining to vestings of cash-settled PSUs.

Commitments and Contingencies

15 unchanged sentences

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 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 %.

For the nine months ended September 30, 2025, the Company recorded income tax expense of $ 4.2 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 nine months ended September 30, 2025 is 31.6 %.

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 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.

At September 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 June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

12 unchanged sentences

Subsequent Events

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.

On October 29, 2025, the Company repaid $ 5.0 million of its 2022 Revolving Credit Facility, reducing the outstanding balance from $ 8.0 million to $ 3.0 million.

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