Chemed Reports Third-Quarter 2025 Results

Rhea-AI Summary

Chemed (NYSE:CHE) reported Q3 2025 revenue of $624.9M, up 3.1% year-over-year, with GAAP diluted EPS $4.46 (down 10.8%) and Adjusted diluted EPS $5.27 (down 6.6%).

VITAS net patient revenue was $407.7M (+4.2%), average daily census 22,327 (+2.5%), admissions 17,714 (+5.6%), and adjusted EBITDA excluding Medicare Cap $70.4M (margin 17.0%, -157 bps). Roto-Rooter revenue was $217.2M (+1.1%) with adjusted EBITDA $49.4M (margin 22.7%, -351 bps).

Cash and equivalents were $129.8M with no debt; the company repurchased 407,500 shares for $180.8M and reiterated 2025 adjusted EPS guidance of $22.00–$22.30.

Positive

• Consolidated revenue +3.1% to $624.9M
• VITAS admissions +5.6% year-over-year
• Share repurchases of $180.8M (407,500 shares)
• No current or long-term debt as of Sept 30, 2025

Negative

• GAAP diluted EPS down 10.8% to $4.46
• Adjusted diluted EPS down 6.6% to $5.27
• VITAS adjusted EBITDA excluding Medicare Cap down 3.8% to $70.4M
• Roto-Rooter adjusted EBITDA down 12.4% to $49.4M; margin -351 bps
• Cash and cash equivalents decreased to $129.8M from $238.5M (~45% decline)

Insights

Corporate Finance Analyst

Mixed third-quarter: revenue up but margins and EPS fell; guidance reiterated assuming no Florida Medicare Cap for FY2026.

Consolidated revenue rose to $624.9 million (+3.1) while GAAP diluted EPS fell to $4.46 (down 10.8) and adjusted diluted EPS declined to $5.27 (down 6.6). Operating drivers differ by segment: VITAS showed higher net patient revenue of $407.7 million (+4.2) with ADC and admissions up, but VITAS adjusted EBITDA margin excluding Medicare Cap declined to 17.0 and gross margin (ex-Medicare Cap) fell materially. Roto-Rooter revenue rose to $217.2 million (+1.1) but adjusted EBITDA and margin contracted significantly.

The company retains a strong balance sheet with $129.8 million in cash and no debt, and it repurchased 407,500 shares for $180.8 million, leaving about $301.8 million of repurchase capacity. Key near-term operational and regulatory dependencies include the Medicare Cap accruals (quarterly accrual of $6.1 million, of which $4.6 million relates to Florida) and management’s reiterated 2025 guidance of $22.00 to $22.30 per share which assumes no Medicare Cap for the Florida combined program in the government fiscal year beginning October 1, 2025. Monitor the company’s Medicare Cap exposure and its cadence of Medicare Cap accruals, the impact on VITAS margins, and the post-quarter conference call on October 29, 2025 for management’s color on assumptions and cash allocation over the next 12 months.

CINCINNATI, Oct. 28, 2025 (GLOBE NEWSWIRE) -- Chemed Corporation (Chemed) (NYSE: CHE), which operates VITAS Healthcare Corporation (VITAS), the nation’s largest provider 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 third quarter ended September 30, 2025, versus the comparable prior-year period.

Results for Quarter Ended September 30, 2025

Consolidated operating results:

• Revenue increased 3.1% to $624.9 million
• GAAP Diluted Earnings-per-Share (EPS) of $4.46, a decrease of 10.8%
• Adjusted Diluted EPS of $5.27, a decrease of 6.6%
  

VITAS segment operating results:

• Net Patient Revenue of $407.7 million, an increase of 4.2%
• Average Daily Census (ADC) of 22,327, an increase of 2.5%
• Admissions of 17,714, an increase of 5.6%
• Net Income, excluding certain discrete items, of $48.9 million, a decrease of 9.0%
• Adjusted EBITDA, excluding Medicare Cap, of $70.4 million, a decrease of 3.8%
• Adjusted EBITDA margin, excluding Medicare Cap, of 17.0%, a decrease of 157-basis points

Roto-Rooter segment operating results:

• Revenue of $217.2 million, an increase of 1.1%
• Net Income, excluding certain discrete items, of $33.9 million, a decrease of 14.8%
• Adjusted EBITDA of $49.4 million, a decline of 12.4%
• Adjusted EBITDA margin of 22.7%, a decline of 351-basis points

VITAS

VITAS net revenue was $407.7 million in the third quarter of 2025, which is an increase of 4.2% when compared to the prior-year period. This revenue increase is comprised primarily of a 2.5% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 4.1%. Acuity mix shift negatively impacted revenue growth 121-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 124-basis points.

Total VITAS admissions increased 5.6% in the third quarter of 2025 compared to the third quarter of 2024.

In the third quarter of 2025, VITAS accrued $6.1 million in Medicare Cap billing limitation compared to $2.2 million accrued in the third quarter of 2024. Of the $6.1 million accrued during the quarter, $4.6 million relates to the Florida combined program. The remaining $1.5 million relates to all other VITAS programs, mainly in California.

Of VITAS’ 34 Medicare provider numbers, 25 provider numbers have a full-year Medicare Cap cushion of 10% or greater, four provider numbers have a cushion between 0% and 10%, and five provider numbers have a Medicare Cap billing limitation totaling $27.2 million.

Average revenue per patient per day in the third quarter of 2025 was $205.08 which is 298-basis points above the prior-year period. Reimbursement for routine home care and high acuity care averaged $183.44 and $1,132.50, respectively. During the quarter, high acuity days-of-care were 2.3% of total days of care, a decline of 26-basis points when compared to the prior-year quarter.

The third quarter 2025 gross margin, excluding Medicare Cap, was 22.5%, a 261-basis point decline from the same period of 2024. Selling, general and administrative expenses were $25.2 million in the third quarter of 2025 compared to $25.9 million in the prior year quarter.

Adjusted EBITDA, excluding Medicare Cap, totaled $70.4 million in the quarter, a decline of 3.8% when compared to the prior year period. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 17.0%.

Roto-Rooter

Roto-Rooter generated quarterly revenue of $217.2 million in the third quarter of 2025, an increase of 1.1%, when compared to the prior-year quarter.

Roto-Rooter branch commercial revenue in the quarter totaled $55.0 million, an increase of 2.8% from the prior-year period. This aggregate commercial revenue change consisted of excavation increasing 10.2%, water restoration increasing 3.5% and drain cleaning increasing 1.2%, offset by a decline in plumbing of 0.8%.

Roto-Rooter branch residential revenue in the quarter totaled $150.9 million, an increase of 3.4%, over the prior-year period. This aggregate residential revenue change consisted of plumbing increasing 8.2%, excavation increasing 4.5%, and water restoration increasing 6.8%, offset by a decline in drain cleaning of 2.6%.

In the third quarter of 2025, revenue from independent contractors was $16.9 million which is a decline of 4.7% as compared to the same period of 2024.

Roto-Rooter’s third quarter 2025 gross margin was 50.7%. This compares to the prior year quarter’s gross margin of 52.9%. Roto-Rooter’s selling, general and administrative expenses were $60.7 million in the quarter, which is an increase of 6.3% compared to the third quarter of 2024.

Adjusted EBITDA in the third quarter of 2025 totaled $49.4 million, a decrease of 12.4% when compared to the third quarter of 2024. The Adjusted EBITDA margin in the quarter was 22.7% which represents a 351-basis point decline from the third quarter of 2024.

Chemed Consolidated

As of September 30, 2025, Chemed had total cash and cash equivalents of $129.8 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 407,500 shares of Chemed stock for $180.8 million which equates to a cost per share of $443.62. As of September 30, 2025, there was approximately $301.8 million of remaining share repurchase authorization under its plan.

Reiterate Guidance for 2025

Management reiterates its previously issued guidance of $22.00 to $22.30 per share, excluding non-cash expense for stock options, tax benefits from stock option exercises, costs related to litigation and other discrete items. This guidance assumes that there will be no Medicare Cap related to our Florida combined program for the government fiscal year 2026 beginning on October 1, 2025.

Conference Call

As previously disclosed, Chemed will host a conference call and webcast at 10 a.m., ET, on Wednesday October 29, 2025, 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/9m3ch5my.

Participants may also register via teleconference at:
https://register-conf.media-server.com/register/BI5480f8c9f938458faa4a35265dc8563e.

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.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)(unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Service revenues and sales	$	624,900			$	606,181			$	1,890,641				1,791,294
Cost of services provided and goods sold		427,993				396,187				1,292,628				1,171,064
Selling, general and administrative expenses (aa)		105,775				101,981				311,685				320,109
Depreciation		13,664				13,147				40,798				39,601
Amortization		2,570				2,550				7,713				7,617
Other operating expense		148				159				225				288
Total costs and expenses		550,150				514,024				1,653,049				1,538,679
Income from operations		74,750				92,157				237,592				252,615
Interest expense		(457	)			(427	)			(1,229	)			(1,281	)
Other income--net (bb)		9,251				9,299				13,970				28,008
Income before income taxes		83,544				101,029				250,333				279,342
Income taxes		(19,307	)			(25,253	)			(61,846	)			(67,662	)
Net income	$	64,237			$	75,776			$	188,487			$	211,680
Earnings Per Share
Net income	$	4.46			$	5.04			$	12.97			$	14.04
Average number of shares outstanding		14,394				15,025				14,535				15,082
Diluted Earnings Per Share
Net income	$	4.46			$	5.00			$	12.89			$	13.88
Average number of shares outstanding		14,409				15,168				14,620				15,253
(aa)    Selling, general and administrative ("SG&A") expenses comprise (in thousands):
	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
SG&A expenses before long-term incentive compensation
and the impact of market value adjustments related to
deferred compensation plans	$	99,288			$	93,269			$	301,600			$	287,712
Market value adjustments related to deferred
compensation trusts		6,703				5,629				6,791				16,600
Long-term incentive compensation		(216	)			3,083				3,294				15,797
Total SG&A expenses	$	105,775			$	101,981			$	311,685			$	320,109
(bb)    Other income--net comprises (in thousands):
	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Interest income	$	2,555			$	3,668			$	7,186			$	11,405
Market value adjustments related to deferred
compensation trusts		6,703				5,629				6,791				16,600
Other		(7	)			2				(7	)			3
Total other income--net	$	9,251			$	9,299			$	13,970			$	28,008

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)(unaudited)
	September 30,
	2025				2024
Assets
Current assets
Cash and cash equivalents	$	129,752			$	238,451
Accounts receivable less allowances		215,570				196,481
Inventories		8,238				9,899
Prepaid income taxes		7,106				14,229
Prepaid expenses		34,577				31,377
Total current assets		395,243				490,437
Investments of deferred compensation plans held in trust		136,021				126,631
Properties and equipment, at cost less accumulated depreciation		203,939				200,939
Lease right of use asset		128,362				134,111
Identifiable intangible assets less accumulated amortization		84,930				94,753
Goodwill		666,987				666,860
Other assets		8,137				55,704
Total Assets	$	1,623,619			$	1,769,435
Liabilities
Current liabilities
Accounts payable	$	48,095			$	44,938
Accrued insurance		65,733				60,308
Accrued income taxes		1,469				3,385
Accrued compensation		79,668				73,141
Short-term lease liability		42,013				42,490
Other current liabilities		55,063				40,517
Total current liabilities		292,041				264,779
Deferred income taxes		9,687				28,076
Deferred compensation liabilities		132,380				122,240
Long-term lease liability		99,461				105,416
Other liabilities		13,367				13,169
Total Liabilities		546,936				533,680
Stockholders' Equity
Capital stock		37,593				37,395
Paid-in capital		1,581,067				1,462,569
Retained earnings		2,887,123				2,639,011
Treasury stock, at cost		(3,431,475	)			(2,905,430	)
Deferred compensation payable in Company stock		2,375				2,210
Total Stockholders' Equity		1,076,683				1,235,755
Total Liabilities and Stockholders' Equity	$	1,623,619			$	1,769,435

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)(unaudited)
	Nine Months Ended September 30,
	2025				2024
Cash Flows from Operating Activities
Net income	$	188,487			$	211,680
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization		48,511				47,218
Stock option expense		24,374				23,933
Benefit for deferred income taxes		(16,259	)			(2,245	)
Noncash long-term incentive compensation		3,057				15,783
Litigation settlements		1,850				(5,750	)
Noncash directors' compensation		1,123				1,282
Amortization of debt issuance costs		241				241
Changes in operating assets and liabilities, excluding
amounts acquired in business combinations:
Increase in accounts receivable		(44,403	)			(14,336	)
(Increase)/decrease in inventories		(45	)			2,125
Increase in prepaid expenses		(8,603	)			(1,173	)
Increase/(decrease) in accounts payable and
other current liabilities		10,102				(19,641	)
Change in current income taxes		(2,162	)			(4,545	)
Net change in lease assets and liabilities		(576	)			(400	)
Decrease/(increase) in other assets		42,048				(21,101	)
Increase in other liabilities		6,355				18,348
Other sources		639				1,165
Net cash provided by operating activities		254,739				252,584
Cash Flows from Investing Activities
Capital expenditures		(46,447	)			(36,770	)
Proceeds from sale of fixed assets		3,751				3,060
Business combinations, net of cash acquired		(225	)			(97,400	)
Other uses		(468	)			(281	)
Net cash used by investing activities		(43,389	)			(131,391	)
Cash Flows from Financing Activities
Purchases of treasury stock		(256,944	)			(152,049	)
Proceeds from exercise of stock options		27,152				49,906
Dividends paid		(23,196	)			(19,594	)
Capital stock surrendered to pay taxes on stock-based compensation		(8,484	)			(8,827	)
Change in cash overdrafts payable		610				(15,749	)
Other sources/(uses)		914				(387	)
Net cash used by financing activities		(259,948	)			(146,700	)
Decrease in Cash and Cash Equivalents		(48,598	)			(25,507	)
Cash and cash equivalents at beginning of year		178,350				263,958
Cash and cash equivalents at end of period	$	129,752			$	238,451

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(in thousands)(unaudited)
														Chemed
		VITAS				Roto-Rooter				Corporate				Consolidated
2025 (a)
Service revenues and sales		$	407,741			$	217,159			$	-			$	624,900
Cost of services provided and goods sold			320,865				107,128				-				427,993
Selling, general and administrative expenses			25,236				60,672				19,867				105,775
Depreciation			5,354				8,298				12				13,664
Amortization			26				2,544				-				2,570
Other operating expense/(income)			186				(38	)			-				148
Total costs and expenses			351,667				178,604				19,879				550,150
Income/(loss) from operations			56,074				38,555				(19,879	)			74,750
Interest expense			(56	)			(132	)			(269	)			(457	)
Intercompany interest income/(expense)			5,685				4,030				(9,715	)			-
Other income—net			61				25				9,165				9,251
Income/(loss) before income taxes			61,764				42,478				(20,698	)			83,544
Income taxes			(14,993	)			(10,407	)			6,093				(19,307	)
Net income/(loss)		$	46,771			$	32,071			$	(14,605	)		$	64,237
2024 (b)
Service revenues and sales		$	391,406			$	214,775			$	-			$	606,181
Cost of services provided and goods sold			294,936				101,251				-				396,187
Selling, general and administrative expenses			25,883				57,072				19,026				101,981
Depreciation			5,063				8,071				13				13,147
Amortization			26				2,524				-				2,550
Other operating expense			97				62				-				159
Total costs and expenses			326,005				168,980				19,039				514,024
Income/(loss) from operations			65,401				45,795				(19,039	)			92,157
Interest expense			(46	)			(114	)			(267	)			(427	)
Intercompany interest income/(expense)			4,920				3,656				(8,576	)			-
Other income—net			62				18				9,219				9,299
Income/(loss) before income taxes			70,337				49,355				(18,663	)			101,029
Income taxes			(16,851	)			(11,400	)			2,998				(25,253	)
Net income/(loss)		$	53,486			$	37,955			$	(15,665	)		$	75,776
The "Footnotes to Financial Statements" are integral parts of this financial information.
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(in thousands)(unaudited)
														Chemed
		VITAS				Roto-Rooter				Corporate				Consolidated
2025 (a)
Service revenues and sales		$	1,211,341			$	679,300			$	-			$	1,890,641
Cost of services provided and goods sold			954,316				338,312				-				1,292,628
Selling, general and administrative expenses			76,861				183,856				50,968				311,685
Depreciation			15,863				24,899				36				40,798
Amortization			78				7,635				-				7,713
Other operating expense/(income)			305				(80	)			-				225
Total costs and expenses			1,047,423				554,622				51,004				1,653,049
Income/(loss) from operations			163,918				124,678				(51,004	)			237,592
Interest expense			(150	)			(394	)			(685	)			(1,229	)
Intercompany interest income/(expense)			16,436				11,930				(28,366	)			-
Other income—net			170				58				13,742				13,970
Income/(loss) before income taxes			180,374				136,272				(66,313	)			250,333
Income taxes			(45,353	)			(32,344	)			15,851				(61,846	)
Net income/(loss)		$	135,021			$	103,928			$	(50,462	)		$	188,487
2024 (b)
Service revenues and sales		$	1,119,970			$	671,324			$	-			$	1,791,294
Cost of services provided and goods sold			852,347				318,717				-				1,171,064
Selling, general and administrative expenses			73,968				175,683				70,458				320,109
Depreciation			15,288				24,275				38				39,601
Amortization			79				7,538				-				7,617
Other operating expense			160				128				-				288
Total costs and expenses			941,842				526,341				70,496				1,538,679
Income/(loss) from operations			178,128				144,983				(70,496	)			252,615
Interest expense			(138	)			(349	)			(794	)			(1,281	)
Intercompany interest income/(expense)			15,096				10,638				(25,734	)			-
Other income—net			138				64				27,806				28,008
Income/(loss) before income taxes			193,224				155,336				(69,218	)			279,342
Income taxes			(46,517	)			(36,010	)			14,865				(67,662	)
Net income/(loss)		$	146,707			$	119,326			$	(54,353	)		$	211,680
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 SEPTEMBER 30, 2025 AND 2024
(in thousands)(unaudited)
														Chemed
		VITAS				Roto-Rooter				Corporate				Consolidated
2025
Net income/(loss)		$	46,771			$	32,071			$	(14,605	)		$	64,237
Add/(deduct):
Interest expense			56				132				269				457
Income taxes			14,993				10,407				(6,093	)			19,307
Depreciation			5,354				8,298				12				13,664
Amortization			26				2,544				-				2,570
EBITDA			67,200				53,452				(20,417	)			100,235
Add/(deduct):
Intercompany interest expense/(income)			(5,685	)			(4,030	)			9,715				-
Interest income			(69	)			(25	)			(2,462	)			(2,556	)
Stock option expense			-				-				6,067				6,067
Legal settlements			2,850				-				-				2,850
Long-term incentive compensation			-				-				(216	)			(216	)
Other			-				-				2,665				2,665
Adjusted EBITDA		$	64,296			$	49,397			$	(4,648	)		$	109,045
2024
Net income/(loss)		$	53,486			$	37,955			$	(15,665	)		$	75,776
Add/(deduct):
Interest expense			46				114				267				427
Income taxes			16,851				11,400				(2,998	)			25,253
Depreciation			5,063				8,071				13				13,147
Amortization			26				2,524				-				2,550
EBITDA			75,472				60,064				(18,383	)			117,153
Add/(deduct):
Intercompany interest expense/(income)			(4,920	)			(3,656	)			8,576				-
Interest income			(59	)			(18	)			(3,589	)			(3,666	)
Stock option expense			-				-				6,038				6,038
Long-term incentive compensation			-				-				3,083				3,083
Acquisition expense			394				(8	)			-				386
Adjusted EBITDA		$	70,887			$	56,382			$	(4,275	)		$	122,994
The "Footnotes to Financial Statements" are integral parts of this financial information.
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING SUMMARIES OF EBITDA
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(in thousands)(unaudited)
														Chemed
		VITAS				Roto-Rooter				Corporate				Consolidated
2025
Net income/(loss)		$	135,021			$	103,928			$	(50,462	)		$	188,487
Add/(deduct):
Interest expense			150				394				685				1,229
Income taxes			45,353				32,344				(15,851	)			61,846
Depreciation			15,863				24,899				36				40,798
Amortization			78				7,635				-				7,713
EBITDA			196,465				169,200				(65,592	)			300,073
Add/(deduct):
Intercompany interest expense/(income)			(16,436	)			(11,930	)			28,366				-
Interest income			(176	)			(58	)			(6,952	)			(7,186	)
Stock option expense			-				-				24,374				24,374
Long-term incentive compensation			-				-				3,294				3,294
Legal settlements			2,850				-				-				2,850
Other			-				-				2,665				2,665
Adjusted EBITDA		$	182,703			$	157,212			$	(13,845	)		$	326,070
2024
Net income/(loss)		$	146,707			$	119,326			$	(54,353	)		$	211,680
Add/(deduct):
Interest expense			138				349				794				1,281
Income taxes			46,517				36,010				(14,865	)			67,662
Depreciation			15,288				24,275				38				39,601
Amortization			79				7,538				-				7,617
EBITDA			208,729				187,498				(68,386	)			327,841
Add/(deduct):
Intercompany interest expense/(income)			(15,096	)			(10,638	)			25,734				-
Interest income			(136	)			(64	)			(11,205	)			(11,405	)
Stock option expense			-				-				23,933				23,933
Long-term incentive compensation			-				-				15,797				15,797
Acquisition expense			1,302				37				-				1,339
Adjusted EBITDA		$	194,799			$	176,833			$	(14,127	)		$	357,505
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 September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Net income as reported	$	64,237			$	75,776			$	188,487			$	211,680
Add/(deduct) pre-tax cost of:
Stock option expense		6,067				6,038				24,374				23,933
Amortization of reacquired franchise rights		2,352				2,352				7,056				7,056
Long-term incentive compensation		(216	)			3,083				3,294				15,797
Legal settlements		2,850				-				2,850				-
Acquisition expense		-				386				-				1,339
Other		2,665				-				2,665				-
Add/(deduct) tax impacts:
Tax impact of the above pre-tax adjustments (1)		(2,049	)			(1,761	)			(6,512	)			(6,762	)
Excess tax benefits on stock compensation		-				(389	)			(513	)			(4,308	)
Adjusted net income	$	75,906			$	85,485			$	221,701			$	248,735
Diluted Earnings Per Share As Reported
Net income	$	4.46			$	5.00			$	12.89			$	13.88
Average number of shares outstanding		14,409				15,168				14,620				15,253
Adjusted Diluted Earnings Per Share
Adjusted net income	$	5.27			$	5.64			$	15.16			$	16.31
Average number of shares outstanding		14,409				15,168				14,620				15,253
(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 September 30,									Nine Months Ended September 30,
OPERATING STATISTICS	2025				2024					2025				2024
Net revenue ($000) (c)
Homecare	$	362,405			$	338,344				$	1,072,014			$	967,981
Inpatient		33,099				29,923					100,145				89,297
Continuous care		19,946				25,799					68,222				74,295
Other		5,807				5,082					16,898				13,900
Subtotal	$	421,257			$	399,148				$	1,257,279			$	1,145,473
Room and board, net		(3,859	)			(3,336	)				(11,277	)			(9,437	)
Contractual allowances		(3,571	)			(2,167	)				(9,875	)			(10,077	)
Medicare cap allowance		(6,086	)			(2,239	)				(24,786	)			(5,989	)
Net Revenue	$	407,741			$	391,406				$	1,211,341			$	1,119,970
Net revenue as a percent of total before Medicare cap allowance
Homecare		86.0		%		84.8		%			85.3		%		84.5		%
Inpatient		7.9				7.5					8.0				7.8
Continuous care		4.7				6.5					5.4				6.5
Other		1.4				1.2					1.3				1.2
Subtotal		100.0				100.0					100.0				100.0
Room and board, net		(0.8	)			(0.8	)				(0.9	)			(0.8	)
Contractual allowances		(0.8	)			(0.5	)				(0.8	)			(0.9	)
Medicare cap allowance		(1.4	)			(0.6	)				(2.0	)			(0.5	)
Net Revenue		97.0		%		98.1		%			96.3		%		97.8		%
Days of care
Homecare		1,685,859				1,622,680					4,980,883				4,621,755
Nursing home		309,192				320,664					923,458				908,013
Respite		12,184				9,952					33,619				26,806
Subtotal routine homecare and respite		2,007,235				1,953,296					5,937,960				5,556,574
Inpatient		28,530				26,524					86,447				79,064
Continuous care		18,309				24,365					62,576				72,335
Total		2,054,074				2,004,185					6,086,983				5,707,973
Number of days in relevant time period		92				92					273				274
Average daily census ("ADC") (days)
Homecare		18,325				17,639					18,245				16,867
Nursing home		3,361				3,485					3,383				3,314
Respite		132				108					123				98
Subtotal routine homecare and respite		21,818				21,232					21,751				20,279
Inpatient		310				288					317				289
Continuous care		199				265					229				264
Total		22,327				21,785					22,297				20,832
Total Admissions		17,714				16,775					53,398				51,020
Total Discharges		17,348				16,217					52,931				48,285
Average length of stay (days)		109.7				102.0					121.9				102.2
Median length of stay (days)		18.0				18.0					18.0				17.0
ADC by major diagnosis
Cerebro		44.1		%		43.6		%			44.6		%		43.7		%
Neurological		11.6				13.3					11.8				13.3
Cancer		10.1				10.0					9.8				10.0
Cardio		15.9				16.3					16.0				16.2
Respiratory		7.7				7.1					7.4				7.2
Other		10.6				9.7					10.4				9.6
Total		100.0		%		100.0		%			100.0		%		100.0		%
Admissions by major diagnosis
Cerebro		27.1		%		28.4		%			27.6		%		27.7		%
Neurological		6.9				7.7					6.8				7.9
Cancer		26.6				25.7					25.9				25.1
Cardio		14.3				15.1					14.7				15.7
Respiratory		10.5				9.5					10.9				9.9
Other		14.6				13.6					14.1				13.7
Total		100.0		%		100.0		%			100.0		%		100.0		%
Estimated uncollectible accounts as a percent of revenues		0.9		%		0.6		%			0.8		%		0.9		%
Accounts receivable --
Days of revenue outstanding-excluding unapplied Medicare payments		37.5				37.5					n.a.				n.a.
Days of revenue outstanding-including unapplied Medicare payments		34.0				35.5					n.a.				n.a.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
FOOTNOTES TO FINANCIAL STATEMENTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 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 September 30, 2025
		VITAS				Roto-Rooter				Corporate				Consolidated
	Stock option expense	$	-			$	-			$	(6,067	)		$	(6,067	)
	Legal settlements		(2,850	)			-				-				(2,850	)
	Amortization of reacquired franchise agreements		-				(2,352	)			-				(2,352	)
	Long-term incentive compensation		-				-				216				216
	Other		-				-				(2,665	)			(2,665	)
	Pretax impact on earnings		(2,850	)			(2,352	)			(8,516	)			(13,718	)
	Income tax benefit on the above		698				546				805				2,049
	After-tax impact on earnings	$	(2,152	)		$	(1,806	)		$	(7,711	)		$	(11,669	)
		Nine Months Ended September 30, 2025
		VITAS				Roto-Rooter				Corporate				Consolidated
	Stock option expense	$	-			$	-			$	(24,374	)		$	(24,374	)
	Amortization of reacquired franchise agreements		-				(7,056	)			-				(7,056	)
	Long-term incentive compensation		-				-				(3,294	)			(3,294	)
	Legal settlements		(2,850	)			-				-				(2,850	)
	Other		-				-				(2,665	)			(2,665	)
	Pretax impact on earnings		(2,850	)			(7,056	)			(30,333	)			(40,239	)
	Excess tax benefits on stock compensation		-				-				513				513
	Income tax benefit on the above		698				1,637				4,177				6,512
	After-tax impact on earnings	$	(2,152	)		$	(5,419	)		$	(25,643	)		$	(33,214	)
(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 September 30, 2024
		VITAS				Roto-Rooter				Corporate				Consolidated
	Stock option expense	$	-			$	-			$	(6,038	)		$	(6,038	)
	Long-term incentive compensation		-				-				(3,083	)			(3,083	)
	Amortization of reacquired franchise agreements		-				(2,352	)			-				(2,352	)
	Acquisition expense		(394	)			8				-				(386	)
	Pretax impact on earnings		(394	)			(2,344	)			(9,121	)			(11,859	)
	Excess tax benefits on stock compensation		-				-				389				389
	Income tax benefit on the above		96				546				1,119				1,761
	After-tax impact on earnings	$	(298	)		$	(1,798	)		$	(7,613	)		$	(9,709	)
		Nine Months Ended September 30, 2024
		VITAS				Roto-Rooter				Corporate				Consolidated
	Stock option expense	$	-			$	-			$	(23,933	)		$	(23,933	)
	Long-term incentive compensation		-				-				(15,797	)			(15,797	)
	Amortization of reacquired franchise agreements		-				(7,056	)			-				(7,056	)
	Acquisition expense		(1,302	)			(37	)			-				(1,339	)
	Pretax impact on earnings		(1,302	)			(7,093	)			(39,730	)			(48,125	)
	Excess tax benefits on stock compensation		-				-				4,308				4,308
	Income tax benefit on the above		317				1,652				4,793				6,762
	After-tax impact on earnings	$	(985	)		$	(5,441	)		$	(30,629	)		$	(37,055	)
(c)	VITAS has 12 large (greater than 450 ADC), 22 medium (greater than 200 but less than 450 ADC) and 25 small (less than 200 ADC) hospice programs. Of Vitas' 34 Medicare provider numbers, for the current cap year, 25 provider numbers have a Medicare cap cushion of greater than 10%, four provider numbers have a Medicare cap cushion between 0% and 10%, and five provider numbers have a Medicare cap liability.

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

FAQ

What were Chemed's Q3 2025 results for revenue and EPS (NYSE:CHE)?

Chemed reported Q3 2025 revenue of $624.9M (+3.1%) and GAAP diluted EPS of $4.46 (down 10.8%).

How did VITAS perform in Q3 2025 for admissions, census and revenue (CHE)?

VITAS had admissions of 17,714 (+5.6%), average daily census of 22,327 (+2.5%), and net patient revenue of $407.7M (+4.2%).

What drove margin pressure at Roto-Rooter in Q3 2025 for Chemed (CHE)?

Roto-Rooter adjusted EBITDA declined 12.4% to $49.4M and margin fell by 351 basis points, driven by lower gross margin and higher SG&A.

How much stock did Chemed repurchase in Q3 2025 and what's remaining (CHE)?

Chemed repurchased 407,500 shares for $180.8M and has approximately $301.8M remaining under its authorization.

What is Chemed's 2025 EPS guidance after Q3 results (NYSE:CHE)?

Management reiterated 2025 adjusted EPS guidance of $22.00 to $22.30, excluding certain non-cash and discrete items.

Does Chemed have debt and what was its cash position at Sept 30, 2025 (CHE)?

As of Sept 30, 2025 Chemed reported $129.8M in cash and cash equivalents and no current or long-term debt.