What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-05-05 compared with 2025-11-05 · 109 added, 198 removed, 265 unchanged (54% of the section changed)

5 unchanged sentences

Certain statements and information in this Quarterly Report on Form 10-Q may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 or "forward-looking information" as such term is defined in applicable Canadian securities legislation (collectively, "forward-looking statements").

Any statements other than statements of historical information, including those that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance, including the Company’s expectations about its acquisition of Lehan’s Medical Equipment, such as contingent payments and the anticipated synergies and other benefits related thereto, are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements.

Any statements other than statements of historical information, including those that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements.

These forward-looking statements are made as of the date hereof.

36 unchanged sentences

dependence on key suppliers;

changes in U.S.

trade policies and retaliatory responses from other countries, including tariffs;

granting of permits and licenses in a highly regulated business;

7 unchanged sentences

critical accounting estimates and changes to accounting standards, policies, and methods used by us;

and the occurrence of natural and unnatural catastrophic events or health epidemics or concerns, and claims resulting from such events or concerns, as well as other general economic, market and business conditions;

the occurrence of natural and unnatural catastrophic events or health epidemics or concerns, and claims resulting from such events or concerns;

the use of artificial intelligence technologies;

as well as other general economic, market and business conditions;

and other factors beyond our control.

3 unchanged sentences

We were incorporated on December 14, 2016 pursuant to the Business Corporations Act (British Columbia).

As of June 30, 2020, we determined that we no longer qualify as a "foreign private issuer," as defined in Rule 3b-4 of the Exchange Act, for the purposes of the informational requirements of the Exchange Act.

As of June 30, 2020, we determined that we no longer qualify as a "foreign private issuer," as defined in Rule 3b-4 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for the purposes of the informational requirements of the Exchange Act.

As a result, effective January 1, 2021, we became subject to the proxy solicitation rules under Section 14 of the Exchange Act and Regulation FD, and our officers, directors, and principal shareholders became subject to the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act.

1 unchanged sentence

We provide an array of home medical equipment, services and supplies, specializing in post-acute respiratory care services in the United States.

Our primary objective is to focus on the organic growth of the business and thereby solidify our position as one of the United States’ largest providers of in-home therapy for patients suffering from respiratory diseases.

Our respiratory care programs are designed specifically for payors to have the ability to treat patients in the home for less total cost and with a superior quality of care.

Our services include respiratory disease management (through the rental of various HME devices), neuromuscular care, in-home sleep testing and sleep apnea treatment, maternal health, oxygen therapy, the sale of associated supplies, and healthcare staffing services.

We derive a significant portion of our revenue through the rental of non-invasive and invasive ventilators which represented 48.5% and 54.8% of our revenue for the three months ended September 30, 2025 and 2024, respectively, and 52.0% and 55.9% for the nine months ended September 30, 2025 and 2024, respectively.

Our primary objective is to drive growth by increasing the number of patients served and the level of care provided through our technology-enabled, home-based clinical care and chronic disease management model.

Our care programs are designed specifically to treat patients in the home for less total cost and with a superior quality of care.

Our services include respiratory disease management (through the rental of various HME devices), neuromuscular care, in-home sleep testing and sleep apnea treatment, oxygen therapy, the sale of associated supplies, women’s health products and services, and healthcare staffing services.

We derive a significant portion of our revenue through the rental of non-invasive and invasive ventilators which represented 46.9% and 54.4% of our revenue for the three months ended March 31, 2026 and 2025, respectively.

We combine the benefits of home ventilation support with licensed Respiratory Therapists ("RTs") to drive improved patient outcomes and reduce costly hospital readmissions.

1 unchanged sentence

We currently serve patients in all 50 states.

We anticipate expanding our workforce of RTs to support our growth and ensure our high service model is maintained in the home.

As of September 30, 2025, we employed 414 licensed RTs, representing approximately 30% of our company-wide employee count.

We expect to expand our workforce of licensed clinical practitioners, including RTs, to support our growth and ensure the high service model is maintained in the home.

As of March 31, 2026, we employed 403 licensed RTs, representing approximately 29% of our company-wide employee count.

Beyond fulfilling our internal staffing needs, we also provide healthcare staffing and recruitment services, offering tailored workforce solutions to external healthcare institutions and partners seeking qualified clinical professionals.

1 unchanged sentence

The continued trend of servicing patients in the home rather than in hospitals is aligned with our business objective and we anticipate that this trend will continue to offer growth opportunities for us.

We expect to continue to be a solution to the rising health costs in the United States by offering more cost effective, home based solutions while increasing the quality of life for patients fighting serious respiratory diseases.

Trends Affecting Our Business

7 unchanged sentences

A significant contributing factor to the industry's growth is the rising incidence of chronic diseases.

Factors such as increasing obesity rates, consequences of past smoking prevalence, under-diagnosis of certain health conditions, and higher diagnosis rates for chronic diseases collectively shape the industry.

Factors such as increasing obesity rates, consequences of past

smoking prevalence, under-diagnosis of certain health conditions, and higher diagnosis rates for chronic diseases collectively shape the industry.

There is a notable shift towards home-based treatment for these conditions.

23 unchanged sentences

These changes may have a material impact on our business.

In addition, CMS has proposed comprehensive reforms to the Medicare Competitive Bidding Program (“CBP”) for Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (“DMEPOS”), along with related updates to supplier accreditation standards and Medicare provider enrollment requirements.

In addition, CMS has proposed comprehensive reforms to the Medicare Competitive Bidding Program for Durable, Medical Equipment, Prosthetics, Orthotics, and Supplies ("DMEPOS"), along with related updates to supplier accreditation standards and Medicare provider enrollment requirements.

The proposals are intended to modernize the program by refining payment methodologies, contract award processes, and supplier oversight.

Although the final scope and timing of these reforms remain subject to CMS rulemaking, providers with greater scale, infrastructure, and compliance capabilities are generally positioned to compete more effectively under a restructured CBP.

Larger operators may benefit from economies of scale that support service obligations, enable pricing flexibility, and enhance administrative efficiency relative to smaller suppliers.

8 unchanged sentences

Manufacturing and distribution expenses are influenced by factors such as rising material, labor, and transportation costs, including fuel.

As discussed in Part II, Item 1A of this Quarterly Report on Form 10-Q, we are primarily exposed to trade policy and tariff developments indirectly, through supplier pricing and component sourcing rather than direct import activity.

In early 2025, the U.S.

government announced new tariffs on a broad range of imported goods from multiple countries, prompting reciprocal tariffs from affected trade partners.

While medical equipment has traditionally been excluded from such tariffs, the expanded scope of recent trade measures and the possibility of further escalation create significant uncertainty around equipment pricing and supply availability.

To date, we have not experienced a significant impact on our operating costs or supply availability as a result of these tariff actions, but the timing, scope, and duration of future measures remain unpredictable.

The Company is actively monitoring these developments and continuously assessing their potential operational and financial impacts.

As discussed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 4, 2026, we are primarily exposed to trade policy and tariff developments indirectly, through supplier pricing and component sourcing rather than direct import activity.

While certain medical equipment and components have historically been excluded from tariff regimes or subject to exemptions, trade measures may be expanded, reclassified, or implemented with limited notice, and suppliers may increase prices to reflect higher input costs, compliance requirements, or logistics constraints.

These developments could increase our equipment and supply costs and reduce product availability.

To date, we have not experienced a material adverse impact on operating costs or supply availability attributable to tariffs.

However, the timing, scope, and duration of future actions remain uncertain, and we continue to monitor these developments and evaluate their potential operational and financial effects.

Future volatility in general price inflation and its impact on material availability, shipping, warehousing, and operational overhead could further impact financial results.

3 unchanged sentences

Dollars, except vent patients)

For the quarter ended September 30,

2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023

For the quarter ended March 31,

2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024

Financial Information:

21 unchanged sentences

Results of Operations

Comparison of the Three Months Ended September 30, 2025 and 2024:

The following table summarizes our results of operations for the three months ended September 30, 2025 and 2024:

Three Months Ended September 30,

2025 % of Total Revenue 2024

% of Total Revenue $

Comparison of the Three Months Ended March 31, 2026 and 2025:

The following table summarizes our results of operations for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

2026 % of Total Revenue 2025 % of Total Revenue $

Revenue $ 75,414 100.0 % $ 59,129 100.0 % $ 16,285 27.5 %

8 unchanged sentences

356 0.5 % (2,368) (4.0) % 2,724 (115.0) %

Other expense (income), net

Other income, net

(35) — % (75) (0.1) % 40 (53.3) %

1 unchanged sentence

Non-operating income and expenses

Income (loss) from investments

— — % 96 0.2 % (96) (100.0) %

Interest expense, net

2 unchanged sentences

Provision for income taxes 1,278 1.7 % 952 1.6 % 326 34.2 %

1,535 2.1 % 1,594 2.7 % (59) (3.7) %

Net income $ 2,713 3.6 % 2,710 4.6 % $ 3 0.1 %

Net income attributable to noncontrolling interest

Net income attributable to Viemed Healthcare, Inc.

131 0.2 % 85 0.1 % 46 54.1 %

The following table summarizes our revenue for the three months ended September 30, 2025 and 2024:

Three Months Ended September 30,

2025 % of Total Revenue 2024

% of Total Revenue $

Revenue from rentals

Ventilator rentals, non-invasive and invasive $ 34,883 48.5 % $ 31,772 54.8 % $ 3,111 9.8 %

Other home medical equipment rentals 15,401 21.4 % 12,459 21.5 % 2,942 23.6 %

Revenue from sales and services

Equipment and supply sales 15,700 21.8 % 8,440 14.6 % 7,260 86.0 %

Service revenues 5,930 8.3 % 5,333 9.2 % 597 11.2 %

Total revenue

$ 71,914 100.0 % $ 58,004 100.0 % $ 13,910 24.0 %

For the three months ended September 30, 2025, revenue totaled $71.9 million, an increase of $13.9 million (or 24.0%) from the comparable period in 2024.

The primary driver of this growth was equipment and supply sales revenue, which increased by $7.3 million (or 86.0%) largely due to the success of our sleep resupply program and the addition of maternal health offerings in connection with the Lehan acquisition.

Ventilator rental revenue increased by $3.1 million (or 9.8%) primarily as a result of higher patient volumes and sustained demand for ventilation services.

Rental revenue from other home medical equipment increased by $2.9 million (or 23.6%) reflecting an expanding patient base and continued demand for Positive Airway Pressure (PAP) therapy, oxygen therapy, and percussion vest services.

Services revenue increased by $0.6 million (or 11.2%) due to the growth of healthcare staffing offerings.

While ventilator rentals continue to represent a significant portion of our total revenue, the growth in equipment and supply sales, as well as our healthcare staffing offerings, is contributing to the diversity of our overall revenue mix.

As we broaden our geographic footprint and deepen our presence in existing markets, we expect further growth in our ventilator patient base.

Additionally, the continued expansion of existing home medical equipment offerings, together with the introduction of new and complementary products, is expected to serve as an additional driver of revenue growth in future periods.

Cost of revenue and gross profit

Cost of revenue for the three months ended September 30, 2025 was $30.6 million, an increase of $6.9 million (or 29.3%) compared to the same period in 2024.

This increase was primarily driven by higher patient volumes and the expansion of our service offerings, which contributed to overall revenue growth.

Gross profit margin decreased modestly to 57.5% in the three months ended September 30, 2025, compared to 59.3% for the same period in 2024.

The decline in gross margin was primarily attributable to changes in the revenue mix associated with the diversification of our products and services.

We expect continued growth and scale to support improved cost efficiencies over time.

However, the evolving revenue mix may partially offset these benefits.

As a result, gross margins may fluctuate in future periods depending on the composition of revenue sources and the degree to which economies of scale are realized.

Selling, general and administrative expense

Selling, general and administrative expenses as a percentage of revenue improved to 44.4% for the three months ended September 30, 2025 compared to 46.0% for the three months ended September 30, 2024.

Selling, general and administrative expenses totaled $31.9 million for the three months ended September 30, 2025, an increase of $5.2 million (or 19.7%) from the comparable period in 2024.

The improvement in selling, general and administrative expenses as a percentage of revenue reflects continued operating leverage and efficiency gains.

The overall increase in selling, general and administrative expense compared to the prior period is primarily attributable to additional employee-related expenses to accommodate the overall growth of the Company and the impact of the Lehan acquisition completed on July 1, 2025.

Employee compensation expenses increased $2.7 million (or 13.8%) as a result of the increase in our employee headcount from both organic expansion and the acquired operations.

We expect that selling, general and administrative expenses as a percentage of revenue will continue to improve through the end of 2025 supported by ongoing efficiency initiatives and disciplined cost management.

Research and development

For both the three months ended September 30, 2025 and September 30, 2024, research and development expense totaled $0.8 million.

As we continue to invest in research and development related projects to support our technology initiatives, we expect that the associated costs will remain consistent in 2025 relative to 2024.

Stock-based compensation

Stock-based compensation totaled $2.2 million for the three months ended September 30, 2025, an increase of 27.3% compared to the same period in 2024.

The increase reflects our continued investment in employee retention and long-term incentive programs, including the broader integration of equity-based awards into our compensation structure.

As we continue to expand our workforce and align employee incentives with long-term shareholder value, stock-based compensation is expected to remain a consistent component of our cost structure throughout the remainder of 2025.

Loss (gain) on disposal of property and equipment

For the three months ended September 30, 2025, the Company recognized a $0.5 million loss on the disposal of property and equipment, compared to a $0.5 million gain in the same period of 2024.

The current period loss was primarily related to patient equipment that was damaged or destroyed and subsequently written off.

The prior-year gain was primarily attributable to proceeds from the sale of recalled ventilators back to the manufacturer.

As our participation in the ventilator buyback program has substantially concluded, no material gains from these transactions are expected in future periods.

However, the Company expects that certain losses associated with the disposal of damaged or destroyed equipment may continue to occur in future periods.

Interest expense, net

For the three months ended September 30, 2025, net interest expense totaled $0.5 million, an increase of $0.3 million from the comparable period in 2024.

The increase in net interest expense is primarily due to outstanding borrowings as a result of debt issued to fund the Lehan acquisition.

However, with anticipated debt repayments, we expect a reduction in quarterly net interest expense for the remainder of 2025.

Provision for income taxes

For the three months ended September 30, 2025, the provision for income taxes was a $1.5 million expense, compared to a $1.6 million expense during the 2024 period.

Our annual estimated effective tax rate for 2025 is 31.6%.

For the three months ended September 30, 2025, net income was $3.6 million, a decrease of $0.3 million (or 7.8%) from the comparable period in 2024.

Net income as a percentage of revenue decreased from 6.7% for the three months ended September 30, 2024 to 5.0% for the three months ended September 30, 2025, primarily due to the gains recognized in 2024 from our participation in the ventilator buyback program.

Comparison of the Nine Months Ended September 30, 2025 and 2024:

The following table summarizes our results of operations for the nine months ended September 30, 2025 and 2024:

Nine Months Ended September 30,

% of Total Revenue 2024

% of Total Revenue $

Revenue $ 194,099 100.0 % $ 163,562 100.0 % $ 30,537 18.7 %

Cost of revenue 82,744 42.6 % 66,497 40.7 % 16,247 24.4 %

Gross profit 111,355 57.4 % 97,065 59.3 % 14,290 14.7 %

Selling, general and administrative 89,147 45.9 % 77,988 47.7 % 11,159 14.3 %

Research and development 2,419 1.2 % 2,265 1.4 % 154 6.8 %

Stock-based compensation 6,832 3.5 % 4,764 2.9 % 2,068 43.4 %

Depreciation and amortization

1,098 0.7 % 1,140 0.7 % (42) (3.7) %

Loss (gain) on disposal of property and equipment

(2,528) (1.3) % (801) (0.5) % (1,727) 215.6 %

Other expense (income), net

(191) (0.1) % 261 0.2 % (452) (173.2) %

Income from operations 14,578 7.5 % 11,448 7.0 % 3,130 27.3 %

Non-operating income and expenses

Income (loss) from investments

— — % (954) (0.6) % 954 (100.0) %

Interest expense, net

(818) (0.3) % (629) (0.4) % (189) 30.0 %

Net income before taxes 13,760 7.1 % 9,865 6.0 % 3,895 39.5 %

Provision for income taxes 4,200 2.2 % 2,880 1.8 % 1,320 45.8 %

Net income 9,560 4.9 % 6,985 4.3 % 2,575 36.9 %

Net income attributable to noncontrolling interest 265 0.2 % 36 — % 229 636.1 %

Net income attributable to Viemed Healthcare, Inc.

$ 2,582 3.4 % $ 2,625 4.4 % $ (43) (1.6) %

The following table summarizes our revenue for the nine months ended September 30, 2025 and 2024:

Nine Months Ended September 30,

% of Total Revenue 2024

% of Total Revenue $

The following table summarizes our revenue for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

2026 % of Total Revenue 2025 % of Total Revenue $

Revenue from rentals

1 unchanged sentence

Other home medical equipment rentals 16,198 21.5 % 12,962 21.9 % 3,236 25.0 %

42,199 21.7 % 35,604 21.8 % 6,595 18.5 %

Revenue from sales and services

1 unchanged sentence

Service revenues 6,368 8.4 % 6,489 11.0 % (121) (1.9) %

Total revenue

Total revenues

$ 75,414 100.0 % $ 59,129 100.0 % $ 16,285 27.5 %

For the nine months ended September 30, 2025, revenue totaled $194.1 million, an increase of $30.5 million (or 18.7%) from the comparable period in 2024.

The primary driver of this growth was our equipment and supply sales revenue, which increased by $10.8 million (or 49.0%), largely due to the success of our sleep resupply program and the addition of maternal health offerings in connection with the Lehan acquisition.

Ventilator rental revenue increased by $9.5 million (or 10.3%), primarily as a result of higher patient volumes and sustained demand for ventilation services.

Rental revenue from other home medical equipment increased by $6.6 million (or 18.5%), reflecting an expanding patient base and strong demand for Positive Airway Pressure (PAP) therapy, oxygen therapy, and percussion vest services.

Services revenue increased by $3.7 million (or 25.5%) primarily due to the growth of healthcare staffing offerings.

As we broaden our geographic footprint and deepen our presence in existing markets, we expect further growth in our ventilator patient base.

For the three months ended March 31, 2026, total revenue was $75.4 million, an increase of $16.3 million, or 27.5%, compared to the three months ended March 31, 2025.

The increase reflects broad-based growth across both our rental and sales and services revenue streams, driven by continued execution of our geographic expansion strategy and the ongoing diversified growth of our product and service offerings.

Ventilator rentals, non-invasive and invasive, revenues increased by $3.2 million, or 10.0%, to $35.4 million for the three months ended March 31, 2026, reflecting higher period-over-period patient volumes attributable to sustained demand for our ventilation services.

Rental revenue from other home medical equipment increased by $3.2 million, or 25.0%, to $16.2 million.

This increase was driven by broad-based growth across our PAP therapy, oxygen therapy, and percussion vest service lines, each benefiting from an expanding patient base and the continued development of our sleep and respiratory programs, as well as the inclusion of maternal health equipment rentals from the Lehan acquisition completed on July 1, 2025.

Equipment and supply sales increased by $10.0 million, or 132.6%, to $17.5 million, for the three months ended March 31, 2026.

The increase was primarily attributable to growth in our women's health product offerings, including breast pumps and related accessories, driven largely by the inclusion of revenues from the Lehan acquisition, as well as the continued scaling of our sleep resupply program, which drove higher volumes of PAP-related supplies and equipment.

Service revenues, which primarily reflect our healthcare staffing operations, decreased by $0.1 million, or 1.9%, to $6.4 million for the three months ended March 31, 2026.

The composition of our revenue continues to evolve in a manner consistent with our long-term strategic objectives.

Ventilator rentals remain the largest contributor to total revenue;

however, PAP-related rental and resupply revenue, oxygen therapy, and maternal health offerings each represented a growing proportion of our overall revenue mix.

Cost of revenue and gross profit

Cost of revenue for the nine months ended September 30, 2025 was $82.7 million, an increase of $16.2 million (or 24.4%) compared to the same period in 2024.

This increase was primarily driven by higher patient volumes and the expansion of our service offerings, which contributed to overall revenue growth.

Gross profit margin decreased to 57.4% for the nine months ended September 30, 2025, compared to 59.3% for the same period in 2024.

The decline in gross margin was primarily attributable to changes in the revenue mix associated with the diversification of our products and services.

We expect continued growth and scale to support improved cost efficiencies over time.

However, the evolving revenue mix may partially offset these benefits.

As a result, gross margins may fluctuate in future periods depending on the composition of revenue sources and the degree to which economies of scale are realized.

For the three months ended March 31, 2026, cost of revenue totaled $32.6 million, an increase of $6.7 million, or 26.1%, from the comparable period in 2025.

Gross profit margin improved to 56.8% for the three months ended March 31, 2026 from 56.3% for the three months ended March 31, 2025.

The margin improvement reflects disciplined cost management and the favorable operating leverage in our rental revenue base.

While the significant growth in equipment and supply sales introduced a higher proportion of direct product costs relative to rental revenue, these were more than offset by the efficiency and scale benefits realized across our broader operations.

As our sleep resupply program and other sales-oriented service lines continue to scale, we expect gross margins to gradually improve as fulfillment efficiencies are realized and the cost structure of these programs matures, though the continued diversification of our revenue mix may partially moderate the pace of that expansion.

Selling, general and administrative expense

Selling, general and administrative expenses as a percentage of revenue improved to 45.9% for the nine months ended September 30, 2025, compared to 47.7% for the same period in 2024.

Selling, general and administrative expenses totaled $89.1 million for the nine months ended September 30, 2025, an increase of $11.2 million (or 14.3%) from the comparable period in 2024.

The improvement in selling, general and administrative expenses as a percentage of revenue reflects continued operating leverage and efficiency gains.

The overall increase in selling, general and administrative expenses compared to the prior period is primarily attributable to additional employee-related expenses to support the Company’s overall growth and the impact of the Lehan acquisition completed on July 1, 2025.

Employee compensation expenses increased $6.7 million (or 12.0%) as a result of the increase in our employee headcount from both organic expansion and the acquired operations.

We expect that selling, general and administrative expenses as a percentage of revenue will continue to improve through the end of 2025, supported by ongoing efficiency initiatives and disciplined cost management.

Selling, general and administrative expenses as a percentage of revenue improved to 46.1% for the three months ended March 31, 2026 compared to 48.1% for the three months ended March 31, 2025.

Selling, general and administrative expenses totaled $34.8 million for the three months ended March 31, 2026, an increase of $6.4 million (or 22.4%) from the comparable period in 2025.

The improvement in selling, general and administrative expenses as a percentage of revenue reflects continued operating leverage and efficiency gains as our revenue base has grown.

The overall increase in selling, general and administrative expenses as compared to the prior period is primarily attributable to additional employee-related expenses to support the Company's overall growth and the inclusion of operating expenses from the Lehan acquisition completed on July 1, 2025.

Our full-time employee count increased from 1,222 as of March 31, 2025 to 1,387 as of March 31, 2026, an increase of 14%, reflecting both organic expansion and acquired operations.

As a result, employee related costs increased by $4.5 million, or 22%, compared to the prior year period.

We expect selling, general and administrative expenses to continue to increase in absolute dollars as we invest in personnel, infrastructure, and integration activities to support our growth initiatives.

However, over time we expect these expenses to decline as a percentage of revenue as we continue to realize operating leverage from the scaling of our platform, although period-to-period fluctuations may occur based on the timing of hiring, integration efforts, and other strategic investments.

Research and development

For the nine months ended September 30, 2025, research and development expense totaled $2.4 million, an increase of $0.2 million from the comparable period in 2024.

As we continue to invest in research and development related projects to support our technology initiatives, we expect that the associated costs will remain consistent in 2025 relative to 2024.

For the three months ended March 31, 2026, research and development expense totaled $0.6 million, a decrease of $0.2 million, or 27.4%, from $0.8 million in the comparable period in 2025.

We expect research and development costs to remain consistent throughout the remainder of 2026 as we continue to invest in technology initiatives to support our clinical operations and service delivery capabilities.

Stock-based compensation

For the nine months ended September 30, 2025, stock-based compensation totaled $6.8 million, an increase of 43.4% from the comparable period in 2024.

For the three months ended March 31, 2026, stock-based compensation totaled $2.5 million, an increase of 6.1% from the comparable period in 2025.

The increase reflects our continued investment in employee retention and long-term incentive programs, including the broader integration of equity-based awards into our compensation structure.

As we expand our workforce and align employee incentives with long-term shareholder value, we expect stock-based compensation to remain a consistent component of our cost structure throughout the remainder of 2025.

Gain on disposal of property and equipment

For the nine months ended September 30, 2025, gain on disposal of property and equipment totaled $2.5 million compared to gain on disposal of property and equipment of $0.8 million for the nine months ended September 30, 2024.

In both periods, the gains were primarily attributable to proceeds from the sale of recalled ventilators back to the manufacturer.

As our participation in the ventilator buyback program has substantially concluded, we do not expect further material gains from these transactions in future periods.

However, the Company expects that certain losses associated with the disposal of damaged or destroyed equipment may continue to occur in future periods.

Income (loss) from investments

The $1.0 million loss from investments in the prior year period ended September 30, 2024 primarily reflects a loss recognized on a debt investment during the period.

No investment-related loss was recorded in the current period.

Interest expense, net

For the nine months ended September 30, 2025, net interest expense totaled $0.8 million, an increase of $0.2 million from the comparable period in 2024.

The increase in net interest expense is primarily due to outstanding borrowings as a result of debt issued to fund the Lehan acquisition.

However, with anticipated debt repayments, we expect a reduction in quarterly net interest expense for the remainder of 2025.

In recent years, we have increased the use of equity-based awards as part of our overall compensation programs, and the higher expense recognized during the three months ended March 31, 2026 reflects the cumulative impact of awards granted in both the current and prior years, as those awards continue to vest over their respective service periods.

Loss (gain) on disposal of property and equipment

For the three months ended March 31, 2026, loss on disposal of property and equipment totaled $0.4 million compared to a gain on disposal of property and equipment of $2.4 million for the three months ended March 31, 2025.

The gain recognized in the prior year period was primarily attributable to proceeds received from the sale of recalled ventilators back to the manufacturer in excess of their net book value.

The ventilator buyback program was substantially completed in 2025, and accordingly we do not expect additional material gains from these transactions in future periods.

We may, however, continue to recognize gains or losses from the disposal of equipment in the ordinary course of business, including losses related to damaged or destroyed equipment.

Provision for income taxes

For the nine months ended September 30, 2025, the provision for income taxes was a $4.2 million expense, compared to a $2.9 million expense during the 2024 period.

For the three months ended March 31, 2026, the provision for income taxes was a $1.3 million expense, compared to a $1.0 million expense during the 2025 period.

Our annual estimated effective tax rate for 2026 is 29.7%.

For the nine months ended September 30, 2025, net income was $9.6 million, an increase of $2.6 million (or 36.9%) from the comparable period in 2024.

Net income as a percentage of revenue increased from 4.3% for the nine months ended September 30, 2024 to 4.9% for the nine months ended September 30, 2025.

For the three months ended March 31, 2026, net income was $2.7 million, consistent with the comparable period in 2025.

Net income as a percentage of net revenue decreased from 4.6% for the three months ended March 31, 2025 to 3.6% for the three months ended March 31, 2026.

The prior year period benefited from gains recognized from the ventilator buyback program, which did not recur in the current period, resulting in a lower net income margin despite growth in underlying operating performance.

Non-GAAP Financial Measures

11 unchanged sentences

The following table is a reconciliation of net income attributable to Viemed Healthcare, Inc., the most directly comparable GAAP measure, to Adjusted EBITDA, on a historical basis for the periods indicated:

For the quarter ended September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023

For the quarter ended March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024

Net Income attributable to Viemed Healthcare, Inc.

16 unchanged sentences

Liquidity and Capital Resources

Cash and cash equivalents at September 30, 2025 was $11.1 million, compared to $17.5 million at December 31, 2024.

Cash and cash equivalents at March 31, 2026 was $9.8 million, compared to $13.5 million at December 31, 2025.

Typically, our principal source of liquidity is the collection of our patient accounts receivable.

In addition to our collection of patient accounts receivable, from time to time, we can and do obtain additional sources of liquidity by the incurrence of additional indebtedness.

In addition to our collection of patient accounts receivable, from time to time, we can and do obtain additional sources of liquidity through the incurrence of indebtedness.

Based on our current plan of operations, we believe cash and cash equivalents, when combined with expected cash flows from operations and amounts available under our 2022 Senior Credit Facilities will be sufficient to fund our growth strategy and to meet our anticipated operating expenses, capital expenditures, and debt service obligations for at least the next 12 months from the date of this filing.

The Company has also historically utilized short term financing arrangements with suppliers that could be extended over a longer term if there was a need for additional liquidity.

On June 6, 2025, the Company's Board of Directors authorized and approved a share repurchase program.

Under the terms of this program, the Company repurchased 1,976,441 of its common shares and the program was completed and terminated during 2025.

On March 4, 2026, the Company's Board of Directors authorized and approved a new share repurchase program (the “2026 Share Repurchase Program”).

Under the terms of the 2026 Share Repurchase Program, the Company may repurchase up to 1,930,131 of its common shares from time to time through open market purchases, block purchases or otherwise in accordance with applicable securities laws, including Rule 10b-18 of the Exchange Act.

During the three months ended March 31, 2026, the Company repurchased and canceled 150,000 common shares pursuant to the 2026 Share Repurchase Program.

The following table summarizes our cash flows for the periods indicated:

Nine Months Ended September 30,

Three Months Ended March 31,

Net Cash provided by (used in):

5 unchanged sentences

Net Cash Provided by Operating Activities

Net cash provided by operating activities during the nine months ended September 30, 2025 was $33.5 million, resulting from net income of $9.6 million, increased by net income adjustments of $28.2 million and offset by an increase in non-cash working capital of $4.3 million.

The net income adjustments primarily consisted of $21.0 million of depreciation and amortization, $6.8 million of stock-based compensation, and a $2.7 million deferred income tax expense, partially offset by a $2.5 million gain on disposal of property and equipment.

The primary changes in non-cash working capital were an increase in accrued liabilities of $1.6 million and trade payables of $0.8 million, partially offset by a change in income tax payable/receivable of $5.8 million and an increase in net accounts receivable of $0.7 million.

Net cash provided by operating activities during the nine months ended September 30, 2024 was $24.1 million, resulting from net income of $7.0 million, increased by net income adjustments of $20.8 million and offset by an increase in non-cash working capital of $3.7 million.

The net income adjustments primarily consisted of $19.0 million of depreciation and amortization, $4.8 million of stock-based compensation, a $3.5 million change in deferred tax asset, and an impairment loss on debt investment of $1.3 million.

The primary change in non-cash working capital was an increase in net accounts receivable of $8.2 million partially offset by an increase in accrued liabilities of $2.4 million.

Net cash provided by operating activities during the three months ended March 31, 2026 was $8.1 million, resulting from net income of $2.7 million, increased by net income adjustments of $10.5 million and offset by an increase in non-cash working capital of $5.1 million.

The net income adjustments primarily consisted of $7.6 million of depreciation and amortization and $2.5 million of stock-based compensation.

The primary changes in non-cash working capital were an increase in net accounts receivable of $5.6 million and a decrease in accrued liabilities of $2.6 million, partially offset by an increase in trade payables of $1.6 million and an increase in net income tax payable of $1.3 million.

Net cash provided by operating activities during the three months ended March 31, 2025 was $2.9 million, resulting from net income of $2.7 million, increased by net income adjustments of $6.6 million and offset by an increase in non-cash working capital of $6.4 million.

The net income adjustments primarily consisted of $6.6 million of depreciation and amortization and $2.3 million of stock-based compensation, partially offset by a $2.4 million gain on disposal of property and equipment.

The primary changes in non-cash working capital were an increase in net accounts receivable of $1.9 million, a decrease in accrued liabilities of $3.1 million, and a decrease in income tax payable of $2.0 million, partially offset by an increase in trade payables of $1.2 million.

Net Cash Used in Investing Activities

Net cash used in investing activities during the nine months ended September 30, 2025 was $42.6 million, primarily due to the net cash paid for the acquisition of Lehan of $26.3 million.

Net cash used for capital expenditures during the period was $16.2 million, consisting of $31.2 million of purchases of property and equipment, partially offset by $15.0 million of sales proceeds from the disposal of property and equipment.

Net cash used in investing activities during the three months ended March 31, 2026 was $5.5 million.

Net cash used for capital expenditures during the period consisted of $6.7 million of purchases of property and equipment, partially offset by $1.2 million of sales proceeds from the disposal of property and equipment.

Net cash used for capital expenditures represents a decrease of $3.0 million, or 36%, year over year.

Purchases of property and equipment were primarily related to medical equipment rented to our patients.

Net cash used in investing activities during the nine months ended September 30, 2024 was $21.5 million.

Net cash used for capital expenditures during the period was $18.5 million and consisted of $25.9 million of purchases of property and equipment, partially offset by $7.4 million of sales proceeds from the disposal of property and equipment.

Purchases of property and equipment were primarily related to medical equipment rented to our patients.

Net cash used in investing activities also included $3.0 million of net cash paid for the acquisition of HomeMed.

Net Cash Provided by (Used in) Financing Activities

Net cash provided by financing activities during the nine months ended September 30, 2025 was $2.7 million.

During the period, proceeds from the 2022 Term Loan Facility (as defined below) were $9.0 million and proceeds from the 2022 Revolving Credit Facility (as defined below) were $13.0 million, which were used to partially fund the cash acquisition of Lehan.

Subsequent to the Lehan acquisition, the Company made $5.0 million of principal payments on the 2022 Revolving Credit Facility.

In addition, the Company repurchased and cancelled common shares totaling $13.2 million under the 2025 Share Repurchase Program and $1.7 million to satisfy employee income tax withholding obligations associated with the vesting of RSUs, while proceeds from the exercise of stock options were $1.4 million during the period.

Net cash used in financing activities during the nine months ended September 30, 2024 was $4.1 million.

During the period, proceeds from the 2022 Revolving Credit Facility were $3.0 million, which were used to fund the HomeMed acquisition.

Subsequent to the HomeMed acquisition, principal payments on the 2022 Revolving Credit Facility were $5.0 million.

Principal payments on the 2022 Term Loan Facility were $0.2 million.

Additionally, principal payments on acquired loans were $0.8 million during the nine months ended September 30, 2024.

The Company acquired and cancelled 142,489 common shares at a cost of $1.1 million to satisfy employee income tax withholding obligations associated with the vesting of RSUs during the period while proceeds from the exercise of stock options during the nine months ended September 30, 2024 were $0.4 million.

Net cash used in investing activities during the three months ended March 31, 2025 was $8.5 million, consisting of $15.5 million of purchases of property and equipment, partially offset by $7.0 million of sales proceeds from the disposal of property and equipment.

Purchases of property and equipment were primarily related to medical equipment placed with patients under our rental agreements.

Net Cash Used in Financing Activities

Net cash used in financing activities during the three months ended March 31, 2026 was $6.3 million.

During the three months ended March 31, 2026, principal payments on the 2022 Term Loan Facility (as defined below) were $3.2 million.

In addition, the Company paid $1.4 million pursuant to share repurchase programs and canceled 268,002 common shares at a cost of $2.0 million to satisfy employee income tax withholding obligations associated with the vesting of RSUs, while proceeds from the exercise of options during the three months ended March 31, 2026 were $0.5 million.

Net cash used in financing activities during the three months ended March 31, 2025 was $1.7 million.

During the three months ended March 31, 2025, principal payments on the 2022 Term Loan Facility (as defined below) were $0.1 million.

The Company acquired and canceled 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.

Senior Credit Facilities

On November 29, 2022, the Company refinanced its existing borrowings under the prior Commercial Business Loan Agreement with Hancock Whitney Bank and entered into a new credit agreement (the "2022 Senior Credit Facilities") with the lenders from time to time party thereto, and Regions Bank, as administrative agent and collateral agent, that provides for an up to $30.0 million revolving credit facility (the "2022 Revolving Credit Facility") and an up to $30.0 million delayed draw term loan facility (the "2022 Term Loan Facility"), both maturing in November 2027.

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.

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

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

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

The proceeds of the 2022 Revolving Credit Facility may be used to refinance existing indebtedness, for working capital purposes, capital expenditures and other general corporate purposes (including permitted acquisitions), and to pay transaction fees, costs and expenses related to the 2022 Senior Credit Facilities.

The proceeds of the 2022 Term Loan Facility and any additional term loans established in accordance with the 2022 Senior Credit Facilities may be used to finance permitted acquisitions and to pay transaction fees, costs and expenses related to such acquisitions.

Outstanding borrowings under the 2022 Term Loan Facility and 2022 Revolving Credit Facility were $13.1 million and $8.0 million, respectively, as of September 30, 2025.

Outstanding borrowings under the 2022 Term Loan Facility were $9.6 million as of March 31, 2026.

There were no outstanding borrowings under the 2022 Revolving Credit Facility as of March 31, 2026.

The interest rates per annum applicable to the 2022 Senior Credit Facilities are Term SOFR plus an applicable margin, which ranges from 2.625% to 3.375%, or, at the option of the Company, a Base Rate (as defined in the 2022 Senior Credit Facilities) plus an applicable margin, which ranges from 1.625% to 2.375%.

3 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.

Our principal uses of cash are funding the purchase of rental assets and other capital purchases, the repayment of debt, funding of acquisitions, operations, and other working capital requirements.

Our contractual obligations primarily relate to the repayment of existing debt and contractual obligations for operating and finance leases.

The following table presents our material contractual obligations and commitments to make future payments as of September 30, 2025:

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

Our principal uses of cash are funding the purchase of rental assets and other capital purchases, the repayment of debt, the repurchase of shares of our common stock, the funding of acquisitions, operations, and other working capital requirements.

Our contractual obligations primarily relate to the repayment of existing debt and contractual obligations for operating leases.

The following table presents our material contractual obligations and commitments to make future payments as of March 31, 2026:

Within 12 Months Beyond 12 Months

2 unchanged sentences

Lease Obligations

Total $ 4,575 $ 24,279

Except for the funding of potential acquisitions and investments, we anticipate that our operating cash flows will satisfy our material cash requirements for the 12 months after September 30, 2025.

$ 3,637 $ 11,324

Except for the funding of potential acquisitions and investments, we anticipate that our operating cash flows will satisfy our material cash requirements for the 12 months after March 31, 2026.

In addition to our operating cash flows, we may need to raise additional funds to support our contractual obligations and investing activities beyond such 12 month period, and such funding may not be available to us on acceptable terms, or at all.

10 unchanged sentences

The Company maintains a 401(k) retirement plan for employees to which eligible employees can contribute a percentage of their pre-tax compensation.

Matching employer contributions to the 401(k) plan totaled $455,000 and $358,000 for the three months ended September 30, 2025 and 2024, respectively, and $1,400,000 and $1,230,000 for the nine months ended September 30, 2025 and 2024, respectively.

Matching employer contributions to the 401(k) plan totaled $0.6 million for both the three months ended March 31, 2026 and 2025.

Off Balance Sheet Arrangements

18 unchanged sentences

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 2. Management’s Discussion and Analysis