What changed in this filing

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Item 1. Financial Statements

2026-05-05 compared with 2025-11-05 · 128 added, 207 removed, 516 unchanged (39% of the section changed)

4 unchanged sentences

Dollars, except outstanding shares)

September 30, 2025 At

March 31, 2026 At

December 31, 2025

3 unchanged sentences

Accounts receivable, net

2 31,179 25,586

Inventory 2 5,183 5,047

4 unchanged sentences

Property and equipment, net 4 76,007 78,775

Finance lease right-of-use assets — 50

Operating lease right-of-use assets

2 unchanged sentences

Identifiable intangibles, net

Goodwill 3 58,464 32,989

2 1,221 1,285

3 58,938 58,938

Total long-term assets $ 147,550 $ 150,661

5 unchanged sentences

Accrued liabilities 5

Finance lease liabilities, current portion 6

21,542 23,910

Operating lease liabilities, current portion

5 unchanged sentences

Long-term debt

6 8,334 11,291

Total long-term liabilities $ 10,859 $ 14,577

4 unchanged sentences

unlimited authorized;

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

38,533,586 and 38,019,082 issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

20,811 16,912

1 unchanged sentence

Retained Earnings

105,473 102,891

TOTAL VIEMED HEALTHCARE, INC.'S SHAREHOLDERS' EQUITY

1 unchanged sentence

Noncontrolling interest in subsidiary

3 1,887 1,908

TOTAL SHAREHOLDERS' EQUITY $ 145,796 $ 143,521

135,495 133,301

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 197,361 $ 199,154

$ 202,360 $ 177,069

See accompanying notes to the condensed consolidated financial statements

3 unchanged sentences

Dollars, except share and per share amounts)

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

Three Months Ended March 31,

Note 2026 2025

7 unchanged sentences

Depreciation and amortization

397 348 1,098 1,140

Loss (gain) on disposal of property and equipment

356 ( 2,368 )

Other expense (income), net

Other income, net

( 35 ) ( 75 )

1 unchanged sentence

Non-operating income and expenses

Income (loss) from investments

— 96 — ( 954 )

Interest expense, net

6 ( 507 ) ( 225 ) ( 818 ) ( 629 )

Net income before taxes 3,991 3,662

5 unchanged sentences

Net income per share

Basic 11 $ 0.09 $ 0.10 $ 0.24 $ 0.18

Diluted 11 $ 0.09 $ 0.10 $ 0.23 $ 0.17

$ 0.07 $ 0.07

$ 0.06 $ 0.06

Weighted average number of common shares outstanding:

Basic 11 38,428,588 39,426,753

Diluted 11 40,495,761 40,779,414 41,086,178 40,702,001

40,491,298 41,627,876

See accompanying notes to the condensed consolidated financial statements

9 unchanged sentences

Stock-based compensation - restricted stock — — 2,295 — — 2,295

— — 1,321 — — 1,321

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 — — 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

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

2 unchanged sentences

Shareholders' equity, December 31, 2025 38,019,082 $ 16,912 $ 21,742 $ 102,891 $ 1,976 $ 143,521

Stock-based compensation - options — — 16 — — 16

Stock-based compensation - restricted stock — — 2,451 — — 2,451

— — 2,295 — — 2,295

Exercise of options 80,955 526 — — — 526

1 unchanged sentence

Shares redeemed to pay income tax ( 268,002 ) ( 1,996 ) — — — ( 1,996 )

Net income — — — 2,625 85 2,710

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

— — — — ( 174 ) ( 174 )

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

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

Share repurchases

( 150,000 ) ( 974 ) ( 271 ) — — ( 1,245 )

Net income — — — 2,582 131 2,713

Shareholders' equity, September 30, 2025

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

Shareholders' equity, March 31, 2026 38,533,586 $ 20,811 $ 17,579 $ 105,473 $ 1,933 $ 145,796

See accompanying notes to the condensed consolidated financial statements

2 unchanged sentences

(Expressed in thousands of U.S.

Nine Months Ended September 30,

Three Months Ended March 31,

Note 2026 2025

3 unchanged sentences

Depreciation and amortization

21,043 19,002

Stock-based compensation expense 8 2,451 2,311

Distributions of earnings received from equity method investments — 147

Income from equity method investments — ( 261 )

Loss from debt investment

Gain on disposal of property and equipment

Loss (gain) on disposal of property and equipment

356 ( 2,368 )

Amortization of deferred financing costs

Deferred income tax expense (benefit)

2,729 ( 3,507 )

Changes in working capital:

Accounts receivable, net

Inventory ( 163 ) 583

( 5,593 ) ( 1,878 )

( 136 ) ( 190 )

Prepaid expenses and other assets

2 unchanged sentences

Accrued liabilities

( 2,602 ) ( 3,050 )

Income tax payable/receivable

1,265 ( 2,005 )

Net cash provided by operating activities $ 8,071 $ 2,854

1 unchanged sentence

Purchase of property and equipment 4 ( 6,712 ) ( 15,483 )

Cash paid for acquisitions, net of cash acquired

3 ( 26,332 ) ( 2,999 )

Proceeds from sale of property and equipment 4 1,227 6,953

2 unchanged sentences

Proceeds from exercise of options 8 526 11

Proceeds from term notes

Principal payments on term notes

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

Payments on revolving credit facilities

6 ( 3,242 ) ( 113 )

Payments for debt issuance costs

Shares redeemed to pay income tax 8 ( 1,996 ) ( 1,584 )

Shares repurchased under the share repurchase program

Payments for share repurchase programs

8 ( 1,439 ) —

Repayments of finance lease liabilities

( 50 ) ( 319 )

Distributions to non-controlling interest

Net cash provided by (used in) financing activities

Net cash used in financing activities

$ ( 6,325 ) $ ( 1,704 )

6 unchanged sentences

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

$ 7,267 $ 6,416

Supplemental disclosures of non-cash transactions

9 unchanged sentences

Viemed Healthcare, Inc.

(the "Company"), through its subsidiaries, is a provider of home medical equipment ("HME") and post-acute respiratory healthcare services in the United States.

(the "Company"), through its subsidiaries, is a provider of home medical equipment ("HME") and post-acute respiratory healthcare services in the United States, with a focus on respiratory, chronic care, and women’s health products and services.

The Company’s primary service offerings are focused on effective in-home treatment with clinical practitioners providing therapy and counseling to patients in their homes using cutting edge technology.

3 unchanged sentences

Kaliste Saloom Road, Lafayette, Louisiana 70508.

The Company’s common shares are traded on the Nasdaq Capital Market under the symbol "VMD".

The Company’s common shares are traded on the Nasdaq Stock Market LLC under the symbol "VMD".

Summary of Significant Accounting Policies

4 unchanged sentences

The Company's fiscal year ends on December 31.

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.

The Condensed Consolidated Balance Sheet as of December 31, 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 reports 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, 2025.

The nature of the Company's business is such that the results of any interim period may not be indicative of the results to be expected for the entire year.

Prior to December 31, 2024, the Company qualified as an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, as modified by the Jumpstart our Business Startups Act of 2012, and took advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and other exemptions.

As of December 31, 2024, the Company no longer qualified as an emerging growth company, and as a result is no longer exempt from the reporting requirements discussed above.

As of December 31, 2024, the Company no longer qualified as an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart our Business Startups Act of 2012 (the JOBS Act), and is therefore no longer eligible for the related scaled disclosure and other reporting accommodations, including the exemption from the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act.

Reporting Currency

13 unchanged sentences

The Company’s chief operating decision-makers ("CODMs") are its Chief Executive Officer and Chief Operating Officer, who make resource allocation decisions and assess performance based on financial information presented on an aggregate basis.

There are no segment managers who are held accountable by the chief operating decision-makers, or anyone else, for any planning, strategy and key decision-making regarding operations.

The CODMs’ primary measure of segment profit or loss is consolidated net income, as presented on the Condensed Consolidated Statements of Income.

The CODMs use this measure, together with other consolidated financial information, to assess performance trends, compare actual results to budgets and prior periods, and to allocate resources, including decisions related to personnel, operating infrastructure, capital expenditures, and acquisitions.

In making these decisions, the CODMs review the Company’s results on a consolidated basis and do not evaluate operating results at a lower level.

There are no segment managers who are held accountable by the CODMs, or anyone else, for any planning, strategy, and key decision-making regarding operations.

The corporate office is responsible for contract negotiation with vendors and payors, corporate compliance with healthcare laws and regulations, and revenue cycle management, among other corporate supporting functions.

Accordingly, the Company has a single reportable segment and operating segment structure.

All expense categories on the Condensed Consolidated Statements of Income are significant and there are no other significant segment expenses that require disclosure.

The CODMs do not receive or use additional disaggregated expense information beyond the expense categories presented on the Condensed Consolidated Statements of Income for purposes of resource allocation or performance assessment.

As a result, all expense categories on the Consolidated Statements of Income are significant, and there are no other significant segment expenses that require disclosure.

The measure of segment assets is total consolidated assets, including goodwill, as presented on the Condensed Consolidated Balance Sheets.

Assets provided to the CODMs are consistent with those reported on the Condensed Consolidated Balance Sheets, with particular emphasis on the Company’s available liquidity, including cash, and cash equivalents.

The CODMs do not receive information regarding assets at a lower level, and there are no other significant segment assets that require disclosure.

Accounts Receivable

9 unchanged sentences

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

Included in accounts receivable at September 30, 2025 are amounts due from Medicare representing 27 % of total outstanding net receivables.

Included in accounts receivable at March 31, 2026 are amounts due from Medicare representing 21 % of total outstanding net receivables.

As of December 31, 2025, 25 % 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 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.

The balance of the Company’s equity investments was $ 2.8 million as of March 31, 2026 and December 31, 2025.

The Company was not aware of any impairment or observable price change adjustments that needed to be made as of March 31, 2026 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 September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Revenue from rentals

4 unchanged sentences

Equipment and supply sales

15,700 8,440 32,720 21,956

Service revenues

5,930 5,333 18,318 14,598

Total revenues $ 75,414 $ 59,129

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.

Revenues from Medicare as a percentage of the Company's total revenue for the three months ended March 31, 2026 and 2025 were 35 % and 41 %, respectively.

Stock-Based Compensation

30 unchanged sentences

Acquisition related costs are recognized separately from the business combination and are expensed as incurred.

Fair Value Measurements

Fair value is determined based on assumptions that a market participant would use in pricing an asset or liability.

GAAP establishes a fair value hierarchy that prioritizes the inputs used in valuation techniques.

Inputs are classified in Level 1 when valuation is based on quoted prices in active markets for identical assets or liabilities.

Inputs are classified in Level 2 when valuation is based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable, market-corroborated inputs.

Inputs are classified in Level 3 when valuation is based on significant unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability.

The carrying amounts of cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued liabilities approximate fair value due to their short-term maturities.

The carrying amounts outstanding under the Company’s credit facilities approximate fair value because the related interest rates are variable and reflective of current market rates.

When estimated, the fair value of the Company’s debt is determined using observable market inputs and is classified within Level 2 of the fair value hierarchy.

Impairment of Goodwill and Long-Lived Assets

6 unchanged sentences

If determined necessary, the Company applies the quantitative impairment test to identify and measure the amount of impairment, if any.

Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors, such as estimates of a reporting unit's fair value and judgment about impairment triggering events.

Fair value determinations require

considerable judgment and are sensitive to changes in underlying assumptions and factors, such as estimates of a reporting unit's fair value and judgment about impairment triggering events.

As a result, there can be no assurance that the estimates and assumptions made for purposes of the annual or interim goodwill impairment test will prove to be accurate predictions of the future.

4 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 nine months ended September 30, 2025 and September 30, 2024.

There were no impairment charges recognized during the three months ended March 31, 2026 and March 31, 2025.

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

4 unchanged sentences

Recently Adopted Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures, which requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually.

Public entities with a single reportable segment are required to provide the new disclosures and all the disclosures required under ASC 280.

The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024.

The guidance is applied retrospectively to all periods presented in the financial statements, unless it is impracticable.

The Company adopted this standard during the year ended December 31, 2024, which did not have a material impact on its consolidated financial statements and related disclosures.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued Accounting Standards Update (ASU) No.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No.

2023-09, Income Taxes (Topic 740):

1 unchanged sentence

The ASU is effective for public business entities' annual periods beginning after December 15, 2024, with early adoption permitted.

The Company adopted this pronouncement and is evaluating the impact it will have on its upcoming annual filing on Form 10-K for the year ended December 31, 2025;

however, the Company currently does not believe the adoption will have a material impact on its consolidated financial statements and disclosures for that Form 10-K filing.

The Company adopted this standard during the year ended December 31, 2025 on a retrospective basis.

Recently Issued Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE), which specifies additional disclosure requirements.

The new guidance requires additional disclosures, including the composition of certain income expense line items (such as purchases of inventory, employee compensation, and 'other expenses') and a separate disclosure for selling expenses.

This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, however, early adoption is permitted.

This change is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, however, early adoption is permitted.

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

5 unchanged sentences

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.

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

Business Combinations

6 unchanged sentences

Purchase Price

Cash paid or payable $ 26,921

Contingent consideration

18 unchanged sentences

Resulting goodwill $ 25,949

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

On April 1, 2024, the Company acquired a controlling 60 % equity interest in East Alabama HomeMed, LLC ("HomeMed").

The acquisition was accounted for under the acquisition method of accounting in accordance with ASC 805.

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

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.

The accompanying financial statements include the results of HomeMed's operations from the acquisition date.

Changes in the noncontrolling interests after the acquisition date are accounted for pursuant to ASC 810, Consolidation .

All of the goodwill is deductible for income tax purposes.

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

Property and Equipment

1 unchanged sentence

The following table details the Company’s fixed assets:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Medical equipment $ 120,733 $ 121,307

7 unchanged sentences

$ 76,007 $ 78,775

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.

Depreciation in the amount of $ 7.2 million and $ 6.3 million is included in cost of revenue for the three months ended March 31, 2026 and 2025, respectively.

Current Liabilities

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

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Accrued trade payables $ 4,819 $ 4,995

6 unchanged sentences

Total accrued liabilities $ 21,542 $ 23,910

Supplier Financing Programs

The Company participates in supplier finance programs with third-party financial institutions in connection with the purchase of inventory and supplies.

Under these arrangements, the Company's subsidiaries confirm invoices directly with a finance provider and agree to pay the finance provider the invoiced amount on the agreed payment date.

The finance provider remits payment to the supplier upon the Company's confirmation of the invoice, effectively extending the Company's payment terms beyond standard supplier terms.

The Company's obligations under these arrangements are non-cancelable and are structured with terms of up to 90 days, interest-free.

The Company's payment obligations under these programs are not secured by collateral.

Obligations outstanding under these programs are included in trade payables in the Company’s Condensed Consolidated Balance Sheets.

As of March 31, 2026, the Company had $ 0.6 million of obligations outstanding under these arrangements.

There were no obligations outstanding under these arrangements as of December 31, 2025.

Debt and Lease Liabilities

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

September 30, 2025 December 31, 2024

The following table summarizes the Company’s debt as of March 31, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025

2022 Senior Credit Facilities

$ 9,625 $ 12,867

Medical equipment financing

Financing costs and commitment fees

13 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 September 30, 2025.

The Company was in compliance with all covenants under the 2022 Senior Credit Facilities in effect at March 31, 2026.

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;

4 unchanged sentences

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

The Company enters into medical equipment financing obligations through supplier finance programs.

The financing obligations are primarily short term in nature and are payable in monthly installments.

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:

September 30, 2025 December 31, 2024

On November 7, 2025, the Company entered into a Third Amendment to the 2022 Senior Credit Facilities that, among other things, (a) further extended the delayed draw term loan commitment expiration date from November 29, 2025 to November 29, 2026 and (b) included other technical amendments.

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

March 31, 2026 December 31, 2025

Lease liabilities $ 3,232 $ 3,567

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 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 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:

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, 2026, the weighted average lease term was approximately 2.98 years.

Future maturities of the Company's operating lease liabilities as of March 31, 2026 are summarized as follows:

Lease Liability

Thereafter 167

2026 (excluding the first three months)

Total lease payments $ 3,642

1 unchanged sentence

Present value of lease liabilities $ 3,232

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

Operating rental expenses were $ 0.5 million and $ 0.4 million during the three months ended March 31, 2026 and March 31, 2025 , 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 and liabilities measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024:

At September 30, 2025

The following tables summarize the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025:

At March 31, 2026

(In thousands) Level 1 Level 2 Level 3 Total

6 unchanged sentences

Acquisition-related contingent consideration

$ — $ — $ 1,750 $ 1,750

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.

2 unchanged sentences

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.

The contingent consideration liability was $ 1.8 million as of March 31, 2026 and December 31, 2025.

There were no changes in estimated fair value, payments, or other adjustments during the three months ended March 31, 2026.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

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

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

These assets include other equity investments and the fair value allocation related to the Company’s acquisitions.

18 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 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.

The authorized stock consists of an unlimited number of common shares with no stated par value, of which 38,533,586 and 38,019,082 shares were issued and outstanding as of March 31, 2026 and December 31, 2025, respectively.

During the three months ended March 31, 2026, the Company repurchased and canceled 150,000 common shares at a cost of $ 1.4 million (excluding taxes) pursuant to the 2026 Share Repurchase Program and withheld and canceled 268,002 common shares with an aggregate value of $ 2.0 million to satisfy employee income tax withholding associated with RSUs vesting.

The cost of shares repurchased and withheld is recorded as a reduction to shareholders’ equity.

Stock-Based Compensation

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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 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

As of March 31, 2026, the Company had outstanding options of 3,457,000 and RSUs of 2,505,000 associated with common shares under the existing plans.

The following table summarizes stock-based compensation expense for the three months ended March 31, 2026 and 2025 (in thousands):

Three Months Ended March 31,

Stock-based compensation - options $ — $ 16

1 unchanged sentence

Total $ 2,451 $ 2,311

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:

At March 31, 2026, there was no remaining unrecognized pre-tax stock option expense under the Company’s equity compensation plans.

As of March 31, 2026, there was approximately $ 17.1 million 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 1.65 years.

The following table summarizes stock option activity for the three months ended March 31, 2026:

Number of options

4 unchanged sentences

Expired / Forfeited — —

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

Balance March 31, 2026 3,457 $ 5.43 3.9 years $ 13,121

(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 ($ 6.79 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.

(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 ( $ 9.21 and $ 7.43 on March 31, 2026 and December 31, 2025, respectively).

The aggregate intrinsic value of options outstanding and options exercisable was $ 13.1 million at March 31, 2026.

For the three months ended March 31, 2026, 80,955 common shares were issued pursuant to the exercise of stock options.

At March 31, 2026, the Company had 3,457,000 exercisable stock options outstanding with a weighted average exercise price of $ 5.43 and a weighted average remaining contractual life of 3.9 years.

At December 31, 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 4.1 years.

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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 nine months ended September 30, 2025.

There were no issuances of options during the three months ended March 31, 2026.

Restricted Stock Units

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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 nine months ended September 30, 2025:

The following table summarizes RSU activity for the three months ended March 31, 2026:

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

2 unchanged sentences

Vested ( 852 ) 8.15

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.

Balance March 31, 2026 2,505 $ 7.69 1.65 years $ 23,066

(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 ( $ 9.21 and $ 7.43 on March 31, 2026 and December 31, 2025, respectively ).

During the three months ended March 31, 2026, the Company issued 1,228,805 RSUs with equal annual vestings over a three year period and a fair value of $ 7.34 per share.

Phantom Share Units

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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 nine months ended September 30, 2025:

The following table summarizes PSU activity for the three months ended March 31, 2026:

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

2 unchanged sentences

Vested ( 211 ) ( 1,802 )

( 15 ) ( 105 )

Balance September 30, 2025 483 $ 3,280

Balance March 31, 2026

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

The market price of the Company's common shares wa s $ 9.21 and $ 7.43 on March 31, 2026 and December 31, 2025, 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 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 total liability associated with PSUs at March 31, 2026 is $ 1.8 million, with $ 1.3 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 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

The following table summarizes expense associated with the PSUs for the three months ended March 31, 2026 and 2025 (in thousands):

Three Months Ended March 31,

Selling, general, and administrative $ 780 $ 411

$ 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.

The Company paid cash settlements of $ 1.8 million and $ 1.6 million during the three months ended March 31, 2026 and 2025, respectively, pertaining to vestings of cash-settled PSUs.

Commitments and Contingencies

The Company accrues estimates for resolution of any legal and other contingencies when losses are probable and reasonably estimable in accordance with ASC 450, Contingencies (“ASC 450”).

No less than quarterly, the Company reviews the status of each significant matter underlying a legal proceeding or claim and assess our potential financial exposure.

No less than quarterly, the Company reviews the status of each significant matter underlying a legal proceeding or claim and assesses its potential financial exposure.

The Company accrues a liability for an estimated loss if the potential loss from any legal proceeding or claim is considered probable and the amount can be reasonably estimated.

Significant judgment is required in both the determination of probability and the determination as to whether the amount of an exposure is reasonably estimable, and accruals are based only on the information available to the Company at the time the judgment is made, which may prove to be incomplete or inaccurate or unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions.

Furthermore, the outcome of legal proceedings is inherently uncertain, and we may incur substantial defense costs and expenses defending any of these matters.

Furthermore, the outcome of legal proceedings is inherently uncertain, and the Company may incur substantial defense costs and expenses defending any of these matters.

Legal Proceedings

As previously disclosed, on November 5, 2020, the Company (through its subsidiary Sleep Management LLC) filed a lawsuit against Vyaire Medical, Inc.

d/b/a CareFusion Respiratory Technologies (“Vyaire”) in the 15th Judicial District Court for the Parish of Lafayette, Louisiana (the “State Court”) seeking damages for breach of contract and seeking declaratory judgment.

The State Court issued an order on September 5, 2023 granting the Company Partial Summary Judgment finding that Vyaire breached the contract.

On June 9, 2024, Vyaire and certain of its affiliates filed voluntary bankruptcy under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”).

A liquidation analysis subsequently submitted to the Bankruptcy Court disclosed that unsecured claims, including those subordinate to the super-priority claims of certain Vyaire creditors, would not receive any recovery under the proposed Chapter 11 reorganization plan or in the event of a Chapter 7 liquidation.

Consequently, collection of the Company's unsecured claim against Vyaire was determined to be not probable.

During the year ended December 31, 2024, outstanding funds receivable in the amount of $ 0.9 million related to undelivered respiratory equipment were impaired through Other expense (income).

From time to time, the Company is involved in legal proceedings arising in the ordinary course of business.

As of March 31, 2026, the Company has not identified any matters for which a loss is probable and reasonably estimable and, accordingly, no material loss contingencies have been accrued.

Governmental and Regulatory Matters

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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 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 %.

For the three months ended March 31, 2026, the Company recorded income tax expense of $ 1.3 million, which includes a discrete tax expense of $ 0.2 million associated with stock-based compensation arrangements.

Excluding the impact of the discrete taxes, the effective rate for the three months ended March 31, 2026 is 29.7 %.

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 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.

At March 31, 2026 and 2025, 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.

5 unchanged sentences

Earnings Per Share

Income per common share is calculated using earnings for the year divided by the weighted average number of shares outstanding during the year .

Income per common share is calculated using earnings for the period divided by the weighted average number of shares outstanding during the period .

Using the treasury stock method, diluted income per share amounts are calculated giving effect to the potential dilution that would occur if securities or other contracts to issue common shares were exercised or converted to common shares by assuming the proceeds received from the exercise of stock options and the vesting of RSUs are used to purchase common shares at the prevailing market rate.

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

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

2025 2024 2025 2024

Three Months Ended March 31,

Numerator - basic and diluted:

9 unchanged sentences

Diluted weighted average number of shares 40,491,298 41,627,876

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 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.

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

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