Viemed Healthcare, Inc.

Viemed reported record Q2 revenue of $78.1 million, up approximately 24% year over year and approximately 4% sequentially. Ventilator rental revenue was $36.4 million, up approximately 8% year over year; other rental revenue was $16.4 million, up approximately 19%; equipment sales nearly doubled to $19 million; and service revenue was $6.3 million, up approximately 7%. Gross profit was $45 million and gross margin was 57.7% versus 58.3% a year ago, while net income attributable to Viemed was $2.8 million, or $0.07 per diluted share. Adjusted EBITDA was $13.7 million, or 17.6% margin, versus 22.7% in the prior-year quarter. Operating cash flow was $15.9 million and free cash flow was $8.6 million; net CapEx was $7.3 million, or 9.3% of revenue. For 2026, management raised full-year revenue guidance to $314 million-$320 million from $312 million-$320 million, lowered adjusted EBITDA guidance to $64 million-$68 million from $65 million-$69 million, and reduced net CapEx guidance to 8.5%-10% of revenue from 9%-10.5%. Management said the outlook still assumes continued sequential growth through the second half and expects a full-year adjusted EBITDA margin of at least 20%.

Casey Hoyt said the quarter showed Viemed can grow under the new CMS home mechanical ventilation framework, with ventilation, sleep, resupply and maternal health all contributing. He framed ventilation as the company's clinical and economic foundation, but stressed that the platform is becoming broader and more diversified. His tone was confident and constructive, emphasizing strong demand, improved compliance, and the long runway from the addressable home-ventilation market plus newer service lines.

Todd Zehnder focused on the mix shift and the financial implications of scaling newer businesses. He highlighted that the product and service revenue mix lowers adjusted EBITDA margins relative to rentals but requires substantially less capital, and he pointed to improved efficiency from the Tenor intake workflow, which cut PAP qualification review time from days to less than an hour. He also cited $15.9 million of operating cash flow, $8.6 million of free cash flow, $10.7 million of cash at quarter-end, debt repayment of about $2.2 million, and share repurchases/cancellations of about 531,000 shares for $5.1 million.

Analysts pressed on the sales force reorganization, asking whether patient growth was tied to the revamp and how long it would take for the new structure to ramp. Management said the fourth division and expanded leadership structure are meant to create room for geographic expansion, improve training, and develop internal talent, but they also described the growth as largely organic and supported by better training and compliance execution. Questions also focused on whether NCD-related insurer approvals helped ventilator additions and whether RT headcount needs would change; management said formulary rules helped, but new orders, sales execution, compliance and insurance seasonality were the bigger drivers, and they were not ready to say the RT-to-patient ratio would change materially. On margin pressure, management said the back half of the year should resemble last year more closely and that lower-margin, lower-capex growth plus easing of transition-related duplicate costs should support EBITDA recovery.