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Item 1. Financial Statements

2026-08-03 compared with 2026-05-05 · 131 added, 94 removed, 550 unchanged (29% of the section changed)

4 unchanged sentences

Dollars, except outstanding shares)

March 31, 2026 At

June 30, 2026 At

December 31, 2025

3 unchanged sentences

Accounts receivable, net 2 32,229 25,586

2 31,179 25,586

Inventory 2 5,268 5,047

8 unchanged sentences

Identifiable intangibles, net 2 1,158 1,285

2 1,221 1,285

3 58,938 58,938

Goodwill 3 58,938 58,938

Total long-term assets $ 150,259 $ 150,661

5 unchanged sentences

Accrued liabilities 5 24,941 23,910

21,542 23,910

Operating lease liabilities, current portion 6 1,416 1,203

5 unchanged sentences

Long-term debt 6

6 8,334 11,291

Total long-term liabilities $ 10,367 $ 14,577

4 unchanged sentences

unlimited authorized;

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

38,088,228 and 38,019,082 issued and outstanding as of June 30, 2026 and December 31, 2025, respectively

8 $ 17,981 $ 16,912

1 unchanged sentence

Retained earnings 108,237 102,891

105,473 102,891

TOTAL VIEMED HEALTHCARE, INC.'S SHAREHOLDERS' EQUITY

2 unchanged sentences

TOTAL SHAREHOLDERS' EQUITY

145,964 143,521

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 204,224 $ 199,154

See accompanying notes to the condensed consolidated financial statements

3 unchanged sentences

Dollars, except share and per share amounts)

Three Months Ended March 31,

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

Note 2026 2025 2026 2025

7 unchanged sentences

Depreciation and amortization

Loss (gain) on disposal of property and equipment

388 353 776 701

Loss (gain) on disposal of property and equipment 598 ( 636 ) 954 ( 3,004 )

Other income, net ( 67 ) ( 72 ) ( 102 ) ( 147 )

( 35 ) ( 75 )

Income from operations $ 4,461 $ 5,095 $ 8,757 $ 8,936

Non-operating income and expenses

Loss from investments 162 — 162 —

Interest expense, net

6 248 132 553 311

Net income before taxes 4,051 4,963 8,042 8,625

5 unchanged sentences

Net income per share

$ 0.07 $ 0.07

$ 0.06 $ 0.06

Basic 11 $ 0.07 $ 0.08 $ 0.14 $ 0.15

Diluted 11 $ 0.07 $ 0.08 $ 0.13 $ 0.14

Weighted average number of common shares outstanding:

Basic 11 38,245,491 39,515,247 38,336,534 39,471,244

40,491,298 41,627,876

Diluted 11 41,125,716 41,083,760 40,851,506 41,393,523

See accompanying notes to the condensed consolidated financial statements

9 unchanged sentences

Stock-based compensation - restricted stock

— — 2,295 — — 2,295

Exercise of options 2,225 11 — — — 11

3 unchanged sentences

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

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

Stock-based compensation - restricted stock

— — 2,335 — — 2,335

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

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

Shares redeemed to pay income tax

( 6,647 ) — — ( 47 ) — ( 47 )

Distribution to non-controlling interest — — — — ( 193 ) ( 193 )

Share repurchases ( 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

Common Stock Additional paid-in capital Noncontrolling interest in subsidiary

3 unchanged sentences

Stock-based compensation - restricted stock

— — 2,451 — — 2,451

Exercise of options 80,955 526 — — — 526

2 unchanged sentences

Distribution to non-controlling interest — — — — ( 174 ) ( 174 )

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

Net income — — — 2,582 131 2,713

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

Stock-based compensation - restricted stock

— — 2,032 — — 2,032

Exercise of options 76,642 531 — — — 531

Shares issued for vesting of restricted stock units 13,260 126 ( 126 ) — — —

Shares redeemed to pay income tax ( 4,458 ) ( 42 ) — — — ( 42 )

Distribution to non-controlling interest — — — — ( 133 ) ( 133 )

Share repurchases

1 unchanged sentence

Net income — — — 2,764 136 2,900

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

Shareholders' equity, June 30, 2026 38,088,228 $ 17,981 $ 17,810 $ 108,237 $ 1,936 $ 145,964

See accompanying notes to the condensed consolidated financial statements

2 unchanged sentences

(Expressed in thousands of U.S.

Three Months Ended March 31,

Six Months Ended June 30,

Note 2026 2025

3 unchanged sentences

Depreciation and amortization

15,141 13,504

Stock-based compensation expense 8 4,483 4,652

Loss (gain) on disposal of property and equipment 954 ( 3,004 )

356 ( 2,368 )

Amortization of deferred financing costs

Deferred income tax benefit

Loss from other investments 162 —

Changes in working capital:

Accounts receivable, net ( 6,643 ) ( 1,638 )

( 5,593 ) ( 1,878 )

( 136 ) ( 190 )

Inventory ( 221 ) ( 4 )

Prepaid expenses and other assets ( 1,665 ) ( 150 )

2 unchanged sentences

Accrued liabilities 1,405 ( 1,979 )

( 2,602 ) ( 3,050 )

Income tax payable/receivable 2,057 ( 2,433 )

1,265 ( 2,005 )

Net cash provided by operating activities $ 23,973 $ 15,108

1 unchanged sentence

Purchase of property and equipment 4 ( 15,172 ) ( 23,612 )

Investment in equity investments ( 552 ) —

Proceeds from sale of property and equipment 4 2,401 13,355

3 unchanged sentences

Principal payments on term notes 6 ( 5,422 ) ( 220 )

6 ( 3,242 ) ( 113 )

Shares redeemed to pay income tax 8 ( 2,038 ) ( 1,631 )

Payments for share repurchase programs 8 ( 6,761 ) ( 1,664 )

8 ( 1,439 ) —

Repayments of finance lease liabilities

Distributions to non-controlling interest

Net cash used in financing activities

( 307 ) ( 193 )

Net decrease in cash and cash equivalents

( 3,739 ) ( 7,380 )

Net cash used in financing activities $ ( 13,471 ) $ ( 2,375 )

Net increase (decrease) in cash and cash equivalents ( 2,821 ) 2,476

Cash and cash equivalents at beginning of year 13,501 17,540

3 unchanged sentences

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

$ 373 $ 7,059

Supplemental disclosures of non-cash transactions

2 unchanged sentences

Equipment sales receivable at end of period

Repurchases of shares not yet settled

See accompanying notes to the condensed consolidated financial statements

59 unchanged sentences

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

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

Included in accounts receivable at June 30, 2026 are amounts due from Medicare representing 22 % 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 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.

The balance of the Company’s equity investments was $ 3.2 million and $ 2.8 million as of June 30, 2026 and December 31, 2025, respectively.

During the six months ended June 30, 2026, the Company disposed of an equity investment and recognized a loss of approximately $ 0.2 million.

The Company was not aware of any impairment or observable price change adjustments that needed to be made as of June 30, 2026 on its remaining investments in equity securities without a readily determinable fair value.

Intangible Assets

15 unchanged sentences

Revenue related to sales of equipment and supplies is recognized on the date of delivery as this is when control of the promised goods is transferred to patients and is presented net of applicable sales taxes.

Revenues are recorded only to the extent it is probable that a significant reversal will not occur in the future as amounts may include implicit price concessions under reimbursement arrangements with payors, including private insurers, prepaid health plans, Medicare, Medicaid and patients.

Revenues are recorded only to the extent it is probable that a significant reversal will not occur in the future as amounts may include implicit price concessions under

reimbursement arrangements with payors, including private insurers, prepaid health plans, Medicare, Medicaid and patients.

The sales transaction price is determined based on contractually agreed-upon rates, adjusted for estimates of variable consideration.

6 unchanged sentences

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

Three Months Ended March 31,

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

2026 2025 2026 2025

Revenue from rentals

4 unchanged sentences

Equipment and supply sales

18,971 9,514 36,459 17,020

Service revenues

6,307 5,900 12,675 12,388

Total revenues $ 78,097 $ 63,056 $ 153,511 $ 122,185

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.

Revenues from Medicare as a percentage of the Company's total revenue for the six months ended June 30, 2026 and 2025 were 35 % and 40 %, respectively.

Stock-Based Compensation

15 unchanged sentences

Deferred income tax assets or liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be settled.

The calculation of current and deferred income taxes requires management to make estimates and assumptions and to exercise a certain amount of judgment concerning the carrying value of assets and liabilities.

The calculation of current and deferred income taxes requires management to make estimates and assumptions and to exercise a certain amount of judgment concerning the carrying value of

assets and liabilities.

The current and deferred income tax assets and liabilities are also impacted by expectations about future operating results and the timing of reversal of temporary differences as well as possible audits of tax filings by regulatory agencies.

29 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 three months ended March 31, 2026 and March 31, 2025.

There were no impairment charges recognized during the six months ended June 30, 2026 and June 30, 2025.

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

34 unchanged sentences

Accounts receivable

Inventory 786

Prepaid expenses and other assets

Property and equipment, net

Lease assets 60

Identifiable intangibles

TOTAL ASSETS 4,825

Identifiable Liabilities

7 unchanged sentences

Resulting goodwill

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.

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

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.

As of June 30, 2026, the Company had completed its valuation procedures and finalized the allocation of the purchase consideration to the assets acquired and liabilities assumed.

The final purchase price allocation did not result in material changes to the amounts previously reported.

Accordingly, the amounts presented above reflect the final fair values of the consideration transferred, assets acquired, and liabilities assumed as of the acquisition date.

Property and Equipment

1 unchanged sentence

The following table details the Company’s fixed assets:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Medical equipment $ 122,991 $ 121,307

7 unchanged sentences

$ 77,159 $ 78,775

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.

Depreciation in the amount of $ 7.1 million and $ 6.5 million is included in cost of revenue for the three months ended June 30, 2026 and 2025, respectively.

Depreciation in the amount of $ 14.4 million and $ 12.8 million for the six months ended June 30, 2026 and 2025, respectively.

Current Liabilities

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Accrued trade payables $ 5,969 $ 4,995

12 unchanged sentences

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.

There were no obligations outstanding under these arrangements as of June 30, 2026 or December 31, 2025.

Debt and Lease Liabilities

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

March 31, 2026 December 31, 2025

The following table summarizes the Company’s debt as of June 30, 2026 and December 31, 2025:

June 30, 2026 December 31, 2025

2022 Senior Credit Facilities

15 unchanged sentences

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

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

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

6 unchanged sentences

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

June 30, 2026 December 31, 2025

Lease liabilities $ 4,509 $ 3,567

5 unchanged sentences

These lease liabilities are recorded at their present value using a discount rate ranging from 5.5 % 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:

At June 30, 2026 , the weighted average lease term was approximately 3.48 years.

Future maturities of the Company's operating lease liabilities as of June 30, 2026 are summarized as follows:

Lease Liability

2026 (excluding the first three months)

2026 (excluding the first six months) $ 850

Thereafter 154

Total lease payments $ 5,122

1 unchanged sentence

Present value of lease liabilities $ 4,509

Operating rental expenses were $ 0.5 million and $ 0.4 million during the three months ended March 31, 2026 and March 31, 2025 , respectively.

Operating rental expenses were $ 1.0 million and $ 0.8 million during the six months ended June 30, 2026 and June 30, 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 March 31, 2026 and December 31, 2025:

At March 31, 2026

The following tables summarize the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025:

At June 30, 2026

(In thousands) Level 1 Level 2 Level 3 Total

1 unchanged sentence

Acquisition-related contingent consideration $ — $ — $ 1,750 $ 1,750

$ — $ — $ 1,750 $ 1,750

At December 31, 2025

8 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.

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.

The contingent consideration liability was $ 1.8 million as of June 30, 2026 and December 31, 2025.

There were no changes in estimated fair value, payments, or other adjustments during the six months ended June 30, 2026.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

20 unchanged sentences

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

The authorized stock consists of an unlimited number of common shares with no stated par value, of which 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 authorized stock consists of an unlimited number of common shares with no stated par value, of which 38,088,228 and 38,019,082 shares were issued and outstanding as of June 30, 2026 and December 31, 2025, respectively.

During the six months ended June 30, 2026, the Company repurchased and canceled 680,802 common shares at a cost of $ 6.5 million (excluding taxes) pursuant to the 2026 Share Repurchase Program and withheld and canceled 272,460 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.

3 unchanged sentences

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

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

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

On June 5, 2025, the Company's shareholders approved the first amendment to the 2024 Omnibus Plan, and on June 4, 2026, the Company's shareholders approved a second amendment (the "Second Amendment") to the 2024 Omnibus Plan.

Following the Second Amendment, the maximum number of common shares that will be available for awards and issuance under the 2024 Omnibus Plan and that may be reserved for issuance at any time, including under previous plans such as the 2020 Long Term Incentive Plan (effective June 11, 2020), the Amended and Restated Stock Option Plan (effective as of July 17, 2018), the Amended and Restated Restricted Share Unit Plan (effective as of July 17, 2018), and the Deferred Share Unit Plan (effective July 17, 2018), is 7,696,717 shares.

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

As of March 31, 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,

As of June 30, 2026, the Company had outstanding options of 3,380,000 and RSUs of 2,416,000 associated with common shares under the existing plans.

The following table summarizes stock-based compensation expense for the three and six months ended June 30, 2026 and 2025 (in thousands):

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

2026 2025 2026 2025

Stock-based compensation - options $ — $ 6 $ — $ 22

1 unchanged sentence

Total $ 2,032 $ 2,341 $ 4,483 $ 4,652

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:

At June 30, 2026, there was no remaining unrecognized pre-tax stock option expense under the Company's equity compensation plans.

As of June 30, 2026, there was approximately $ 9.9 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 1.50 years.

The following table summarizes stock option activity for the six months ended June 30, 2026:

Number of options

4 unchanged sentences

Expired / Forfeited — —

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

Balance June 30, 2026 3,380 $ 5.40 3.6 years $ 20,298

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

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

(2) The aggregate intrinsic value of options outstanding represents the difference between the exercise price of the option and the closing price of the Company's common shares on the last trading day of the perio d ( $ 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.

(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 ($ 11.40 and $ 7.43 on June 30, 2026 and December 31, 2025, respectively ).

The aggregate intrinsic value of options outstanding and options exercisable was $ 20.3 million at June 30, 2026.

For the six months ended June 30, 2026, 157,597 common shares were issued pursuant to the exercise of stock options.

At June 30, 2026, the Company had 3,380,000 exercisable stock options outstanding with a weighted average exercise price of $ 5.40 and a weighted average remaining contractual life of 3.6 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.

5 unchanged sentences

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

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

There were no issuances of options during the six months ended June 30, 2026.

Restricted Stock Units

3 unchanged sentences

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

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

The following table summarizes RSU activity for the six months ended June 30, 2026:

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

2 unchanged sentences

Vested ( 865 ) 8.13

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.

Balance June 30, 2026 2,416 $ 7.71 1.50 years $ 27,539

(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 ($ 11.40 and $ 7.43 on June 30, 2026 and December 31, 2025, respectively ).

During the six months ended June 30, 2026, the Company issued 1,236,859 RSUs with equal annual vestings over a three year period and a fair value of $ 7.36 per share.

Phantom Share Units

1 unchanged sentence

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

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

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

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

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

The following table summarizes PSU activity for the six months ended June 30, 2026:

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

2 unchanged sentences

Vested ( 216 ) ( 1,844 )

Balance March 31, 2026

Balance June 30, 2026 573 $ 6,532

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

The market price of the Company's common shares wa s $ 9.21 and $ 7.43 on March 31, 2026 and December 31, 2025, respectively.

The market price of the Company's common shares was $ 11.40 and $ 7.43 on June 30, 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 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 total liability associated with PSUs at June 30, 2026 is $ 3.0 million, with $ 2.1 million of this amount included in current accrued liabilities and the remaining portion of $ 0.9 million included in long-term accrued liabilities.

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

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

Three Months Ended March 31,

The following table summarizes expense associated with the PSUs for the three and six months ended June 30, 2026 and 2025 (in thousands):

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

2026 2025 2026 2025

Selling, general, and administrative $ 1,251 $ 370 $ 2,031 $ 781

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.

The Company paid cash settlements of $ 1.8 million and $ 1.6 million during the six months ended June 30, 2026 and 2025, respectively, pertaining to vestings of cash-settled PSUs.

Commitments and Contingencies

6 unchanged sentences

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.

As of June 30, 2026, the Company has not identified any matters for which a material loss is probable and reasonably estimable and, accordingly, no material loss contingencies have been accrued.

Governmental and Regulatory Matters

From time to time the Company is involved in various external governmental investigations, audits and reviews.

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

For the three months ended March 31, 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 %.

As a healthcare provider participating in governmental healthcare programs, the Company is subject, in the ordinary course of business, to inspections, prepayment and post-payment reviews, audits and investigations conducted by government agencies and their contractors relating to claims submitted for reimbursement and compliance with applicable program requirements.

These matters may require the Company to incur costs to respond to requests for records and pursue appeals of payment denials and may result in adjustments to, or recoupment of, amounts previously reimbursed.

Adverse findings may also result in civil or criminal fines, 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.

In July 2025, Qlarant Integrity Solutions, LLC, acting as a Unified Program Integrity Contractor for CMS, issued an audit determination regarding certain Medicare claims submitted by Sleep Management, LLC, a subsidiary of the Company, for monthly rental of non-invasive home ventilators.

Qlarant extrapolated an alleged overpayment of approximately $ 5.9 million.

The Company disagrees with the audit findings and believes the claims were reasonable, medically necessary, and supported by appropriate documentation.

The Company timely pursued the Medicare administrative appeals process.

As a result of the appeal process to date, the asserted overpayment was reduced to approximately $ 2.2 million.

In June 2026, an administrative law judge issued an unfavorable decision with respect to the remaining asserted overpayment.

The Company continues to dispute the remaining asserted overpayment and intends to pursue further available appeal rights.

The Company remitted payment in April 2026 to avoid administrative recoupment, and such payment does not represent a settlement, concession, or admission of liability.

The payment is recorded within Prepaid expenses and other assets.

Based on information currently available, the Company estimates the reasonably possible loss associated with this matter to range from zero to approximately $ 2.2 million.

The Company has determined that a loss is not probable, and no related accrual has been recorded.

For the six months ended June 30, 2026, the Company recorded income tax expense of $ 2.4 million, which includes a discrete tax expense of approximately $ 0.1 million associated with stock-based compensation arrangements.

The effective rate for the six months ended June 30, 2026 is 30.2 %.

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

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

At March 31, 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.

At June 30, 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.

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

Three Months Ended March 31,

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

2026 2025 2026 2025

Numerator - basic and diluted:

11 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 1. Financial Statements