Chemed Reports Fourth-Quarter 2025 Results

Written by Customer Service on February 25, 2026. Posted in Earnings Releases And Operating Results.

CINCINNATI, Feb. 25, 2026 (GLOBE NEWSWIRE) — Chemed Corporation (Chemed) (NYSE: CHE), which operates VITAS Healthcare Corporation (VITAS), the nation’s largest providers of end-of-life care, and Roto-Rooter, the nation’s largest commercial and residential plumbing and drain cleaning services provider, reported financial results for its fourth quarter ended December 31, 2025, versus the comparable prior-year period.

Results for Quarter Ended December 31, 2025

Consolidated operating results:

Revenue was $639.3 million, essentially flat with the fourth quarter of 2024
GAAP Diluted Earnings-per-Share (EPS) of $5.48, a decrease of 9.0%
Adjusted Diluted EPS of $6.42, a decrease of 6.0%

VITAS segment operating results:

Net Patient Revenue of $418.8 million, an increase of 1.9%
Average Daily Census (ADC) of 22,462, an increase of 1.3%
Admissions of 17,419, an increase of 6.0%
Net Income, excluding certain discrete items, of $69.5 million, a decrease of 0.6%
Adjusted EBITDA, excluding Medicare Cap, of $91.6 million, a decrease of 1.7%
Adjusted EBITDA margin, excluding Medicare Cap, of 21.7%, a decrease of 79-basis points

Roto-Rooter segment operating results:

Revenue of $220.6 million, a decrease of 3.7%
Net Income, excluding certain discrete items, of $33.8 million, a decrease of 20.6%
Adjusted EBITDA of $47.5 million, a decline of 21.1%
Adjusted EBITDA margin of 21.5%, a decline of 477-basis points

VITAS

VITAS net revenue was $418.8 million in the fourth quarter of 2025, which is an increase of 1.9% when compared to the prior-year period. This revenue increase is comprised primarily of a 1.3% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.2%. Acuity mix shift negatively impacted revenue growth 143-basis points in the quarter when compared to the prior-year period’s revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes negatively impacted revenue growth by 20-basis points.

Total VITAS admissions increased 6.0% in the fourth quarter of 2025 compared to the fourth quarter of 2024.

In the fourth quarter of 2025, VITAS accrued $2.4 million in Medicare Cap billing limitation, essentially flat compared to the fourth quarter of 2024. There was no Medicare Cap billing limitation recorded in the fourth quarter of 2025 related to the Florida combined program.

Of VITAS’ 33 Medicare provider numbers, 22 provider numbers have a projected full-year Medicare Cap cushion of 10% or greater, six provider numbers have a projected cushion between 0% and 10%, and five provider numbers have a Medicare Cap billing limitation totaling $9.5 million projected for the full-year 2026 Medicare Cap year. There is no Medicare Cap for the 2026 Cap year currently projected for the Florida combined program.

Average revenue per patient per day in the fourth quarter of 2025 was $208.01 which is 86-basis points above the prior-year period. Reimbursement for routine home care and high acuity care averaged $187.19 and $1,153.55, respectively. During the quarter, high acuity days-of-care were 2.2% of total days of care, a decline of 32-basis points when compared to the prior-year quarter.

The fourth quarter 2025 gross margin, excluding Medicare Cap, was 27.3%, a 150-basis point decline from the same period of 2024. Selling, general and administrative expenses were $23.8 million in the fourth quarter of 2025 compared to $25.6 million in the prior-year quarter.

Adjusted EBITDA, excluding Medicare Cap, totaled $91.6 million in the quarter, a decline of 1.7% when compared to the prior year period. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 21.7%.

Roto-Rooter

Roto-Rooter generated quarterly revenue of $220.6 million in the fourth quarter of 2025, a decrease of 3.7%, when compared to the prior-year quarter.

Roto-Rooter branch commercial revenue in the quarter totaled $55.2 million, an increase of 1.6% from the prior-year period. This aggregate commercial revenue change consisted of excavation increasing 10.9%, drain cleaning increasing 2.0%, plumbing flat between years, offset by a decline in water restoration of 20.0%.

Roto-Rooter branch residential revenue in the quarter totaled $155.6 million, a decrease of 3.1%, over the prior-year period. This aggregate residential revenue change consisted of plumbing increasing 6.3%, excavation essentially flat between periods, offset by water restoration decreasing 10.3% and drain cleaning declining 3.2%.

In the fourth quarter of 2025, revenue from independent contractors was $16.7 million which is a decline of 2.8% as compared to the same period of 2024.

Roto-Rooter’s fourth quarter 2025 gross margin was 49.8%. This compares to the prior year quarter’s gross margin of 51.3%. Roto-Rooter’s selling, general and administrative expenses were $63.2 million in the quarter, which is an increase of 10.5% compared to the fourth quarter of 2024.

Adjusted EBITDA in the fourth quarter of 2025 totaled $47.5 million, a decrease of 21.1% when compared to the fourth quarter of 2024. The Adjusted EBITDA margin in the quarter was 21.5% which represents a 477-basis point decline from the fourth quarter of 2024.

Chemed Consolidated

As of December 31, 2025, Chemed had total cash and cash equivalents of $74.5 million and no current or long-term debt.

In June 2022, Chemed entered into a five-year $550 million Amended and Restated Credit Agreement (Credit Agreement). This Credit Agreement consisted of a $100 million amortizable term loan and a $450 million revolving credit facility. The interest rate on this Credit Agreement has a floating rate that is currently SOFR plus 100-basis points. There is approximately $404.5 million undrawn borrowing capacity under the Credit Agreement after excluding $45.5 million for Letters of Credit.

During the quarter, the Company repurchased 400,000 shares of Chemed stock for $174.6 million which equates to a cost per share of $436.39. As of December 31, 2025, there was approximately $127.3 million of remaining share repurchase authorization under its plan.

Guidance for 2026

VITAS 2026 revenue, prior to Medicare Cap, is estimated to increase 5.5% to 6.5% when compared to 2025. ADC is estimated to increase 3.5% to 4.0%. Full year EBITDA margin, prior to Medicare Cap is estimated to be 17.5% to 18.0%. Medicare Cap billing limitations are estimated to be $9.5 million in calendar 2026 compared to $27.2 million in calendar 2025.

Roto-Rooter is forecasted to achieve full year 2026 revenue growth of 3.0% to 3.5%. Roto-Rooter’s adjusted EBITDA margin for 2026 is expected to be 22.5% to 23.0%.

Based upon the above, full-year 2026 earnings per diluted share, excluding non-cash expenses for stock options, tax benefits from stock option exercises, costs related to litigation and other discrete items, is estimated to be in the range of $23.25 to $24.25. This compares to full-year 2025 adjusted earnings per diluted share of $21.55. The 2026 guidance assumes an effective corporate tax rate on adjusted earnings of 24.5% and a diluted share count of 13.9 million shares.

The 2026 earnings trajectory is weighted towards the second half of the year. An estimated 55% of the consolidated adjusted net income and consolidated adjusted EBITDA, prior to Medicare Cap, is projected to be generated in the second half of the year. Momentum is expected to build sequentially, quarter-to-quarter throughout the year.

We believe VITAS has successfully mitigated its Florida Medicare Cap issue. As a result, in 2026, the patient mix should moderate to a more favorable balance of short and longer-stay patients. However, the financial impact of admitting a higher number of potentially longer-stay patients does not come until roughly a fiscal quarter post-admission.

Roto-Rooter’s first quarter of 2025 was its strongest revenue and EBITDA margin quarter of the year. Additionally, Roto-Rooter is projected to have elevated expenses in the first half of the year in order to fund revenue growth and long-term margin improvement projects currently underway.

Management will provide more detail related to the above discussion during the conference call tomorrow morning.

Conference Call

As previously disclosed, Chemed will host a conference call and webcast at 10 a.m., ET, on Thursday February 26, 2026, to discuss the company’s quarterly results and to provide an update on its business. Participants may access a live webcast of the conference call through the investor relations section of Chemed’s website, Investor Relations Home | Chemed Corporation or the hosting website https://edge.media-server.com/mmc/p/srzsz65g.

Participants may also register via teleconference at: https://register-conf.media-server.com/register/BIe4160b0d86fb4a3cb11588d64e00d9e7.

Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are instructed to dial-in 15 minutes prior to the start time.

A taped replay of the conference call will be available beginning approximately two hours after the call’s conclusion. You may access the replay via webcast through the investor relations section of Chemed’s website.

Chemed operates in the healthcare field through its VITAS Healthcare Corporation subsidiary. VITAS provides daily hospice services to patients with severe, life-limiting illnesses. This type of care is focused on making the terminally ill patient’s final days as comfortable and pain-free as possible.

Chemed operates in the residential and commercial plumbing and drain cleaning industry under the brand name Roto-Rooter. Roto-Rooter provides plumbing, drain cleaning, and water cleanup services through company-owned branches, independent contractors and franchisees in the United States and Canada. Roto-Rooter also has licensed master franchisees in the republics of Indonesia and Singapore, and the Philippines.

This press release contains information about Chemed’s EBITDA, Adjusted EBITDA, and Adjusted Diluted EPS, which are not measures derived in accordance with GAAP and which exclude components that are important to understanding Chemed’s financial performance. In reporting its operating results, Chemed provides EBITDA, Adjusted EBITDA and Adjusted Diluted EPS measures to help investors and others evaluate the Company’s operating results, compare its operating performance with that of similar companies that have different capital structures and evaluate its ability to meet its future debt service, capital expenditures and working capital requirements. Chemed’s management similarly uses EBITDA, Adjusted EBITDA, and Adjusted Diluted EPS to assist it in evaluating the performance of the Company across fiscal periods and in assessing how its performance compares to its peer companies. These measures also help Chemed’s management to estimate the resources required to meet Chemed’s future financial obligations and expenditures. Chemed’s EBITDA, Adjusted EBITDA and Adjusted Diluted EPS should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. We calculated Adjusted EBITDA Margin by dividing Adjusted EBITDA by service revenue and sales. A reconciliation of Chemed’s net income to its EBITDA, Adjusted EBITDA and Adjusted Diluted EPS is presented in the tables following the text of this press release.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 REGARDING FORWARD-LOOKING INFORMATION

Statements in this press release contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods and are based upon assumptions subject to certain known and unknown risks, uncertainties, contingencies and other factors, including, but not limited to, the impact of laws and regulations on Chemed’s operations, including Medicare Cap and Medicare reimbursement rates, Chemed’s estimates of the effect of Medicare Cap on VITAS’ revenues and future prospects, Chemed’s expectations regarding VITAS’ patient mix and Chemed’s expectations regarding demand for Roto-Rooter’s services.

Because forward looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Chemed’s control. Chemed’s actual results and financial condition may differ materially from those indicated in the forward-looking statements included in this press release, including as a result of the risks described above and those described in the Chemed’s Annual Report on Form 10-K for the year ended December 31, 2024 and in its Quarterly Reports filed in 2025. Any forward-looking statement made by Chemed in this press release is based only on information currently available to Chemed and speaks only as of the date on which it is made. Chemed undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

CONTACT: Michael D. Witzeman
(513) 762-6714

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)(unaudited)

	Three Months Ended December 31,						For the Years Ended December 31,
	2025			2024			2025			2024
Service revenues and sales	$	639,337		$	639,993		$	2,529,978			2,431,287
Cost of services provided and goods sold		417,016			405,875			1,706,794			1,576,939
Selling, general and administrative expenses (aa)		105,503			104,251			417,188			424,360
Depreciation		13,759			13,263			54,557			52,864
Amortization		2,571			2,568			10,284			10,185
Other operating (income)/expense		(166	)		158			2,909			446
Total costs and expenses		538,683			526,115			2,191,732			2,064,794
Income from operations		100,654			113,878			338,246			366,493
Interest expense		(521	)		(499	)		(1,750	)		(1,780	)
Other income–net (bb)		5,312			6,744			19,282			34,752
Income before income taxes		105,445			120,123			355,778			399,465
Income taxes		(28,694	)		(29,804	)		(90,540	)		(97,466	)
Net income	$	76,751		$	90,319		$	265,238		$	301,999
Earnings Per Share
Net income	$	5.48		$	6.08		$	18.42		$	20.10
Average number of shares outstanding		13,994			14,853			14,398			15,024
Diluted Earnings Per Share
Net income	$	5.48		$	6.02		$	18.34		$	19.89
Average number of shares outstanding		14,010			14,992			14,460			15,186

(aa) Selling, general and administrative (“SG&A”) expenses comprise (in thousands):

	Three Months Ended December 31,						For the Years Ended December 31,
	2025			2024			2025			2024
SG&A expenses before long-term incentive compensation
and the impact of market value adjustments related to
deferred compensation plans	$	99,412		$	96,358		$	401,013		$	384,069
Market value adjustments related to deferred
compensation trusts		3,759			3,539			10,550			20,139
Long-term incentive compensation		2,332			4,354			5,625			20,152
Total SG&A expenses	$	105,503		$	104,251		$	417,188		$	424,360

(bb) Other income–net comprises (in thousands):
	Three Months Ended December 31,						For the Years Ended December 31,
	2025			2024			2025			2024

Market value adjustments related to deferred
compensation trusts	$	3,759		$	3,539		$	10,550		$	20,139
Interest income		1,559			3,205			8,745			14,610
Other		(6	)		–			(13	)		3
Total other income–net	$	5,312		$	6,744		$	19,282		$	34,752

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)(unaudited)

	December 31,
	2025			2024
Assets
Current assets
Cash and cash equivalents	$	74,515		$	178,350
Accounts receivable less allowances		182,575			171,163
Inventories		7,543			8,193
Prepaid income taxes		11,165			11,068
Prepaid expenses		26,818			25,974
Total current assets		302,616			394,748
Investments of deferred compensation plans held in trust		140,347			130,960
Properties and equipment, at cost less accumulated depreciation		205,662			200,837
Lease right of use asset		131,151			127,323
Identifiable intangible assets less accumulated amortization		82,764			92,206
Goodwill		666,999			666,744
Other assets		8,650			55,757
Total Assets	$	1,538,189		$	1,668,575
Liabilities
Current liabilities
Accounts payable	$	64,459		$	44,146
Accrued insurance		62,054			56,703
Accrued income taxes		2,504			7,593
Accrued compensation		58,329			92,073
Short-term lease liability		40,892			42,306
Other current liabilities		58,892			42,874
Total current liabilities		287,130			285,695
Deferred income taxes		19,313			25,945
Deferred compensation liabilities		136,139			126,035
Long-term lease liability		102,867			98,538
Other liabilities		13,335			13,369
Total Liabilities		558,784			549,582
Stockholders’ Equity
Capital stock		37,595			37,422
Paid-in capital		1,592,197			1,484,176
Retained earnings		2,955,375			2,721,832
Treasury stock, at cost		(3,608,117	)		(3,126,660	)
Deferred compensation payable in Company stock		2,355			2,223
Total Stockholders’ Equity		979,405			1,118,993
Total Liabilities and Stockholders’ Equity	$	1,538,189		$	1,668,575

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)(unaudited)

	For the Years Ended December 31,
	2025			2024
Cash Flows from Operating Activities
Net income	$	265,238		$	301,999
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization		64,841			63,049
Stock option expense		32,671			32,033
Benefit for deferred income taxes		(5,944	)		(4,138	)
Noncash long-term incentive compensation		4,886			18,794
Litigation settlements		1,425			(5,750	)
Noncash directors’ compensation		1,123			1,282
Amortization of debt issuance costs		321			321
Changes in operating assets and liabilities, excluding
amounts acquired in business combinations:
(Increase)/decrease in accounts receivable		(11,596	)		10,678
Decrease in inventories		650			3,831
(Increase)/decrease in prepaid expenses		(844	)		4,237
Decrease in accounts payable and
other current liabilities		(5,194	)		(9,279	)
Change in current income taxes		(6,217	)		2,182
Net change in lease assets and liabilities		(806	)		(674	)
Decrease/(increase) in other assets		36,835			(25,591	)
Increase in other liabilities		10,424			22,749
Other sources		459			1,774
Net cash provided by operating activities		388,272			417,497
Cash Flows from Investing Activities
Capital expenditures		(62,795	)		(49,531	)
Proceeds from sale of fixed assets		4,568			3,315
Business combinations, net of cash acquired		(225	)		(97,400	)
Other uses		(888	)		(295	)
Net cash used by investing activities		(59,340	)		(143,911	)
Cash Flows from Financing Activities
Purchases of treasury stock		(431,500	)		(361,389	)
Dividends paid		(31,695	)		(27,092	)
Proceeds from exercise of stock options		27,152			56,517
Change in cash overdrafts payable		10,970			(15,749	)
Capital stock surrendered to pay taxes on stock-based compensation		(8,819	)		(9,457	)
Other sources/(uses)		1,125			(2,024	)
Net cash used by financing activities		(432,767	)		(359,194	)
Decrease in Cash and Cash Equivalents		(103,835	)		(85,608	)
Cash and cash equivalents at beginning of year		178,350			263,958
Cash and cash equivalents at end of period	$	74,515		$	178,350

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024
(in thousands)(unaudited)
										Chemed
	VITAS			Roto-Rooter			Corporate			Consolidated
2025 (a)
Service revenues and sales	$	418,760		$	220,577		$	–		$	639,337
Cost of services provided and goods sold		306,238			110,778			–			417,016
Selling, general and administrative expenses		23,814			63,192			18,497			105,503
Depreciation		5,446			8,301			12			13,759
Amortization		26			2,545			–			2,571
Other operating income		219			(385	)		–			(166	)
Total costs and expenses		335,743			184,431			18,509			538,683
Income/(loss) from operations		83,017			36,146			(18,509	)		100,654
Interest expense		(35	)		(217	)		(269	)		(521	)
Intercompany interest income/(expense)		6,020			4,315			(10,335	)		–
Other income—net		156			13			5,143			5,312
Income/(loss) before income taxes		89,158			40,257			(23,970	)		105,445
Income taxes		(20,169	)		(8,692	)		167			(28,694	)
Net income/(loss)	$	68,989		$	31,565		$	(23,803	)	$	76,751

2024 (b)
Service revenues and sales	$	411,008		$	228,985		$	–		$	639,993
Cost of services provided and goods sold		294,456			111,419			–			405,875
Selling, general and administrative expenses		25,597			57,168			21,486			104,251
Depreciation		5,074			8,177			12			13,263
Amortization		26			2,542			–			2,568
Other operating expense		18			140			–			158
Total costs and expenses		325,171			179,446			21,498			526,115
Income/(loss) from operations		85,837			49,539			(21,498	)		113,878
Interest expense		(33	)		(81	)		(385	)		(499	)
Intercompany interest income/(expense)		5,114			3,759			(8,873	)		–
Other income—net		90			5			6,649			6,744
Income/(loss) before income taxes		91,008			53,222			(24,107	)		120,123
Income taxes		(20,897	)		(12,500	)		3,593			(29,804	)
Net income/(loss)	$	70,111		$	40,722		$	(20,514	)	$	90,319


The “Footnotes to Financial Statements” are integral parts of this financial information.


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(in thousands)(unaudited)
										Chemed
	VITAS			Roto-Rooter			Corporate			Consolidated
2025 (a)
Service revenues and sales	$	1,630,101		$	899,877		$	–		$	2,529,978
Cost of services provided and goods sold		1,257,704			449,090			–			1,706,794
Selling, general and administrative expenses		100,675			247,047			69,466			417,188
Depreciation		21,308			33,200			49			54,557
Amortization		104			10,180			–			10,284
Other operating expense/(income)		3,375			(466	)		–			2,909
Total costs and expenses		1,383,166			739,051			69,515			2,191,732
Income/(loss) from operations		246,935			160,826			(69,515	)		338,246
Interest expense		(185	)		(611	)		(954	)		(1,750	)
Intercompany interest income/(expense)		22,455			16,245			(38,700	)		–
Other income—net		327			70			18,885			19,282
Income/(loss) before income taxes		269,532			176,530			(90,284	)		355,778
Income taxes		(65,523	)		(41,037	)		16,020			(90,540	)
Net income/(loss)	$	204,009		$	135,493		$	(74,264	)	$	265,238

2024 (b)
Service revenues and sales	$	1,530,978		$	900,309		$	–		$	2,431,287
Cost of services provided and goods sold		1,146,803			430,136			–			1,576,939
Selling, general and administrative expenses		99,564			232,852			91,944			424,360
Depreciation		20,362			32,452			50			52,864
Amortization		105			10,080			–			10,185
Other operating expense		178			268			–			446
Total costs and expenses		1,267,012			705,788			91,994			2,064,794
Income/(loss) from operations		263,966			194,521			(91,994	)		366,493
Interest expense		(171	)		(431	)		(1,178	)		(1,780	)
Intercompany interest income/(expense)		20,211			14,397			(34,608	)		–
Other income—net		227			69			34,456			34,752
Income/(loss) before income taxes		284,233			208,556			(93,324	)		399,465
Income taxes		(67,414	)		(48,510	)		18,458			(97,466	)
Net income/(loss)	$	216,819		$	160,046		$	(74,866	)	$	301,999


The “Footnotes to Financial Statements” are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING SUMMARIES OF EBITDA
FOR THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024
(in thousands)(unaudited)
										Chemed
	VITAS			Roto-Rooter			Corporate			Consolidated
2025
Net income/(loss)	$	68,989		$	31,565		$	(23,803	)	$	76,751
Add/(deduct):
Interest expense		35			217			269			521
Income taxes		20,169			8,692			(167	)		28,694
Depreciation		5,446			8,301			12			13,759
Amortization		26			2,545			–			2,571
EBITDA		94,665			51,320			(23,689	)		122,296
Add/(deduct):
Intercompany interest expense/(income)		(6,020	)		(4,315	)		10,335			–
Interest income		(156	)		(19	)		(1,384	)		(1,559	)
Stock option expense		–			–			8,297			8,297
Long-term incentive compensation		–			–			2,332			2,332
Legal settlements		221			–			–			221
Other		500			530			25			1,055
Adjusted EBITDA	$	89,210		$	47,516		$	(4,084	)	$	132,642

2024
Net income/(loss)	$	70,111		$	40,722		$	(20,514	)	$	90,319
Add/(deduct):
Interest expense		33			81			385			499
Income taxes		20,897			12,500			(3,593	)		29,804
Depreciation		5,074			8,177			12			13,263
Amortization		26			2,542			–			2,568
EBITDA		96,141			64,022			(23,710	)		136,453
Add/(deduct):
Intercompany interest expense/(income)		(5,114	)		(3,759	)		8,873			–
Interest income		(89	)		(5	)		(3,111	)		(3,205	)
Stock option expense		–			–			8,100			8,100
Long-term incentive compensation		–			–			4,354			4,354
Acquisition expense		(203	)		(3	)		–			(206	)
Adjusted EBITDA	$	90,735		$	60,255		$	(5,494	)	$	145,496

The “Footnotes to Financial Statements” are integral parts of this financial information.


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING SUMMARIES OF EBITDA
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(in thousands)(unaudited)
										Chemed
	VITAS			Roto-Rooter			Corporate			Consolidated
2025
Net income/(loss)	$	204,009		$	135,493		$	(74,264	)	$	265,238
Add/(deduct):
Interest expense		185			611			954			1,750
Income taxes		65,523			41,037			(16,020	)		90,540
Depreciation		21,308			33,200			49			54,557
Amortization		104			10,180			–			10,284
EBITDA		291,129			220,521			(89,281	)		422,369
Add/(deduct):
Intercompany interest expense/(income)		(22,455	)		(16,245	)		38,700			–
Interest income		(334	)		(77	)		(8,335	)		(8,746	)
Stock option expense		–			–			32,671			32,671
Long-term incentive compensation		–			–			5,625			5,625
Legal settlements		3,071			–			–			3,071
Other		500			530			2,690			3,720
Adjusted EBITDA	$	271,911		$	204,729		$	(17,930	)	$	458,710
2024
Net income/(loss)	$	216,819		$	160,046		$	(74,866	)	$	301,999
Add/(deduct):
Interest expense		171			431			1,178			1,780
Income taxes		67,414			48,510			(18,458	)		97,466
Depreciation		20,362			32,452			50			52,864
Amortization		105			10,080			–			10,185
EBITDA		304,871			251,519			(92,096	)		464,294
Add/(deduct):
Intercompany interest expense/(income)		(20,211	)		(14,397	)		34,608			–
Interest income		(224	)		(69	)		(14,317	)		(14,610	)
Stock option expense		–			–			32,033			32,033
Long-term incentive compensation		–			–			20,152			20,152
Acquisition expense		1,099			34			–			1,133
Adjusted EBITDA	$	285,535		$	237,087		$	(19,620	)	$	503,002

The “Footnotes to Financial Statements” are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
RECONCILIATION OF ADJUSTED NET INCOME
(in thousands, except per share data)(unaudited)

	Three Months Ended December 31,						For the Years Ended December 31,
	2025			2024			2025			2024
Net income as reported	$	76,751		$	90,319		$	265,238		$	301,999
Add/(deduct) pre-tax cost of:
Stock option expense		8,297			8,100			32,671			32,033
Amortization of reacquired franchise rights		2,352			2,352			9,408			9,408
Long-term incentive compensation		2,332			4,354			5,625			20,152
Legal settlements		221			–			3,071			–
Acquisition expense		–			(206	)		–			1,133
Other		1,055			–			3,720			–
Add/(deduct) tax impacts:
Tax impact of the above pre-tax adjustments (1)		(2,337	)		(2,333	)		(8,849	)		(9,095	)
Excess tax benefits on stock compensation		1,209			(133	)		696			(4,442	)
Adjusted net income	$	89,880		$	102,453		$	311,580		$	351,188

Diluted Earnings Per Share As Reported
Net income	$	5.48		$	6.02		$	18.34		$	19.89
Average number of shares outstanding		14,010			14,992			14,460			15,186

Adjusted Diluted Earnings Per Share
Adjusted net income	$	6.42		$	6.83		$	21.55		$	23.13
Average number of shares outstanding		14,010			14,992			14,460			15,186

(1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated.

The “Footnotes to Financial Statements” are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
OPERATING STATISTICS FOR VITAS SEGMENT
(unaudited)
	Three Months Ended December 31,						For the Years Ended December 31,
OPERATING STATISTICS	2025			2024			2025			2024
Net revenue ($000) (c)
Homecare	$	372,480		$	358,507		$	1,444,494		$	1,326,488
Inpatient		32,903			31,307			133,048			120,604
Continuous care		18,438			25,451			86,661			99,746
Other		6,029			5,556			22,926			19,455
Subtotal	$	429,850		$	420,821		$	1,687,129		$	1,566,293
Room and board, net		(4,285	)		(3,867	)		(15,562	)		(13,304	)
Contractual allowances		(4,430	)		(3,521	)		(14,305	)		(13,597	)
Medicare cap allowance		(2,375	)		(2,425	)		(27,161	)		(8,414	)
Net Revenue	$	418,760		$	411,008		$	1,630,101		$	1,530,978
Net revenue as a percent of total before Medicare cap allowance
Homecare		86.7	%		85.2	%		85.6	%		84.7	%
Inpatient		7.7			7.4			7.9			7.7
Continuous care		4.3			6.0			5.1			6.4
Other		1.3			1.4			1.4			1.2
Subtotal		100.0			100.0			100.0			100.0
Room and board, net		(0.9	)		(0.9	)		(0.9	)		(0.8	)
Contractual allowances		(1.0	)		(0.8	)		(0.9	)		(0.9	)
Medicare cap allowance		(0.6	)		(0.6	)		(1.6	)		(0.5	)
Net Revenue		97.5	%		97.7	%		96.6	%		97.8	%
Days of care
Homecare		1,705,085			1,656,206			6,685,968			6,277,961
Nursing home		305,331			322,713			1,228,789			1,230,726
Respite		11,602			11,155			45,221			37,961
Subtotal routine homecare and respite		2,022,018			1,990,074			7,959,978			7,546,648
Inpatient		27,444			27,235			113,891			106,299
Continuous care		17,063			23,189			79,639			95,524
Total		2,066,525			2,040,498			8,153,508			7,748,471

Number of days in relevant time period		92			92			365			366
Average daily census (“ADC”) (days)
Homecare		18,533			18,002			18,318			17,153
Nursing home		3,319			3,508			3,367			3,363
Respite		126			121			123			104
Subtotal routine homecare and respite		21,978			21,631			21,808			20,620
Inpatient		298			296			312			290
Continuous care		186			252			218			261
Total		22,462			22,179			22,338			21,171

Total Admissions		17,419			16,427			70,817			67,447
Total Discharges		17,599			16,333			70,530			64,618
Average length of stay (days)		115.1			105.5			120.2			103.0
Median length of stay (days)		17.0			18.0			18.0			17.0

ADC by major diagnosis
Cerebro		44.3	%		44.2	%		44.6	%		44.0	%
Neurological		11.4			12.9			11.7			13.2
Cancer		10.0			9.9			9.8			10.0
Cardio		16.0			16.2			16.0			16.2
Respiratory		7.6			6.9			7.4			7.1
Other		10.7			9.9			10.5			9.5
Total		100.0	%		100.0	%		100.0	%		100.0	%
Admissions by major diagnosis
Cerebro		27.3	%		28.0	%		27.4	%		27.8	%
Neurological		6.8			7.0			6.9			7.6
Cancer		26.4			25.9			26.0			25.3
Cardio		14.6			15.3			14.7			15.6
Respiratory		10.8			9.8			10.9			9.9
Other		14.1			14.0			14.1			13.8
Total		100.0	%		100.0	%		100.0	%		100.0	%

Estimated uncollectible accounts as a percent of revenues		1.1	%		0.9	%		1.0	%		0.9	%

Accounts receivable —
Days of revenue outstanding-excluding unapplied Medicare payments		38.7			40.0			n.a.			n.a.
Days of revenue outstanding-including unapplied Medicare payments		28.9			28.5			n.a.			n.a.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
FOOTNOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2025 AND 2024
(unaudited)

(a)	Included in the results of operations for 2025 are the following significant credits/(charges) which may not be indicative of ongoing operations
	(in thousands):
		Three Months Ended December 31, 2025
		VITAS			Roto-Rooter			Corporate			Consolidated

	Stock option expense	$	–		$	–		$	(8,297	)	$	(8,297	)
	Amortization of reacquired franchise agreements		–			(2,352	)		–			(2,352	)
	Long-term incentive compensation		–			–			(2,332	)		(2,332	)
	Legal settlements		(221	)		–			–			(221	)
	Other		(500	)		(530	)		(25	)		(1,055	)
	Pretax impact on earnings		(721	)		(2,882	)		(10,654	)		(14,257	)
	Excess tax benefits on stock compensation		–			–			(1,209	)		(1,209	)
	Income tax benefit on the above		170			679			1,488			2,337
	After-tax impact on earnings	$	(551	)	$	(2,203	)	$	(10,375	)	$	(13,129	)

		For the Years Ended December 31, 2025
		VITAS			Roto-Rooter			Corporate			Consolidated

	Stock option expense	$	–		$	–		$	(32,671	)	$	(32,671	)
	Amortization of reacquired franchise agreements		–			(9,408	)		–			(9,408	)
	Long-term incentive compensation		–			–			(5,625	)		(5,625	)
	Legal settlements		(3,071	)		–			–			(3,071	)
	Other		(500	)		(530	)		(2,690	)		(3,720	)
	Pretax impact on earnings		(3,571	)		(9,938	)		(40,986	)		(54,495	)
	Excess tax benefits on stock compensation		–			–			(696	)		(696	)
	Income tax benefit on the above		868			2,316			5,665			8,849
	After-tax impact on earnings	$	(2,703	)	$	(7,622	)	$	(36,017	)	$	(46,342	)

(b)	Included in the results of operations for 2024 are the following significant credits/(charges) which may not be indicative of ongoing operations
	(in thousands):
		Three Months Ended December 31, 2024
		VITAS			Roto-Rooter			Corporate			Consolidated

	Stock option expense	$	–		$	–		$	(8,100	)	$	(8,100	)
	Long-term incentive compensation		–			–			(4,354	)		(4,354	)
	Amortization of reacquired franchise agreements		–			(2,352	)		–			(2,352	)
	Acquisition expense		203			3			–			206
	Pretax impact on earnings		203			(2,349	)		(12,454	)		(14,600	)
	Excess tax benefits on stock compensation		–			–			133			133
	Income tax benefit on the above		(50	)		547			1,836			2,333
	After-tax impact on earnings	$	153		$	(1,802	)	$	(10,485	)	$	(12,134	)

		For the Years Ended December 31, 2024
		VITAS			Roto-Rooter			Corporate			Consolidated

	Stock option expense	$	–		$	–		$	(32,033	)	$	(32,033	)
	Long-term incentive compensation		–			–			(20,152	)		(20,152	)
	Amortization of reacquired franchise agreements		–			(9,408	)		–			(9,408	)
	Acquisition expense		(1,099	)		(34	)		–			(1,133	)
	Pretax impact on earnings		(1,099	)		(9,442	)		(52,185	)		(62,726	)
	Excess tax benefits on stock compensation		–			–			4,442			4,442
	Income tax benefit on the above		267			2,200			6,628			9,095
	After-tax impact on earnings	$	(832	)	$	(7,242	)	$	(41,115	)	$	(49,189	)


(c)	VITAS has 12 large (greater than 450 ADC), 23 medium (greater than 200 but less than 450 ADC) and 24 small (less than 200 ADC) hospice programs. Of Vitas’ 33 Medicare provider numbers, for the current cap year, 22 provider numbers have a Medicare cap cushion of greater than 10%, six provider numbers have a Medicare cap cushion between 0% and 10%, and five provider numbers have a Medicare cap liability.

Chemed Reports Fourth-Quarter 2025 Results

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