Viemed Raises Revenue Floor as Profitability Narrows
The respiratory-care provider lifted the low end of its 2026 revenue outlook to $314 million.
Viemed Healthcare (VMD), a respiratory-care provider, posted record second-quarter revenue of $78.1 million as its patient base expanded across its major therapy categories.
The quarter extended Viemed’s run of double-digit sales gains, though the pace moderated while expenses weighed on profitability. Revenue grew 23.9% from a year earlier, slowing from 28% in the first quarter and 26% in the fourth quarter of 2024.
Revenue increased 3.6% from the first quarter’s $75.4 million. Net income attributable to Viemed fell 12.4% from a year earlier to $2.8 million, or $0.07 a diluted share, from $0.08 a share. Earnings nevertheless rose from $2.6 million, or $0.06 a share, in the preceding quarter.
Adjusted earnings before interest, taxes, depreciation and amortization declined 4.0% from a year earlier to $13.7 million and fell from $14.3 million sequentially. The adjusted EBITDA margin narrowed to about 17.6% from 19.0% in the first quarter and 23.9% in the fourth quarter. Selling, general and administrative expense climbed 28.9% to $37.1 million, contributing to a 12.4% decline in operating income despite the revenue growth.
Patient growth supported the top line. Ventilator patients rose 4.5% sequentially to a record 12,635, reversing the first quarter’s decline. Positive-airway-pressure therapy patients increased 5.3% from the preceding quarter to 37,825, while sleep-resupply patients rebounded 10.0% to 37,035 after falling 8% in the first quarter.
Cash generation strengthened during the quarter. Operating cash flow nearly doubled sequentially to $15.9 million, while free cash flow more than tripled to $8.6 million. Trailing-12-month free cash flow slipped to $34.4 million from $36.3 million.
Viemed now expects 2024 revenue of $314 million to $320 million, raising the low end by $2 million. The company lowered its adjusted EBITDA outlook to $64 million to $68 million from $65 million to $69 million and reduced its net capital-spending forecast to 8.5% to 10.0% of revenue as its mix shifts toward less capital-intensive products and services.
The company repurchased 530,802 shares for $5.1 million during the quarter, up from 150,000 shares for $1.4 million in the first quarter. Long-term debt declined to $6.4 million from $8.3 million at the end of March and $19.6 million at the end of the third quarter of 2024.