Chemed Reports Third-Quarter 2026 Results

VITAS profit growth contrasted with lower Roto-Rooter profitability as Chemed expects adjusted EPS at or slightly above its guidance range.

Rhea-AI Summary

Chemed (CHE) reported third-quarter 2026 revenue of $690.9 million, with earnings growth led by its VITAS hospice business. Revenue rose 10.6% year over year; GAAP diluted earnings per share increased 22.2% to $5.45, and adjusted diluted EPS rose 28.1% to $6.75.

VITAS revenue increased 12.2% to $457.4 million, with average daily census up 9.4%. Its adjusted EBITDA, excluding Medicare Cap billing limits, rose 31.4% to $92.5 million. Roto-Rooter revenue grew 7.5% to $233.5 million, but adjusted EBITDA fell 2.5% to $48.2 million. Roto-Rooter reacquired California franchise territories for approximately $62.5 million.

Chemed repurchased $66.0 million of shares during the quarter. At September 30, cash was $48.4 million and long-term debt was $236.0 million. The company expects full-year adjusted EPS at or slightly above the high end of its previously issued 2026 guidance.

27 points · 0 major

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0 major · 12 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter revenue increased 10.6% year over year to $690.9 million.
• Moderate pointGAAP diluted EPS increased 22.2% year over year to $5.45 in the third quarter.
• Moderate pointAdjusted diluted EPS increased 28.1% year over year to $6.75 in the third quarter.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 adjusted EPS is expected at or slightly above the high end of previously issued guidance.
• Moderate pointVITAS third-quarter revenue increased 12.2% year over year to $457.4 million.
• Moderate pointVITAS average daily census increased 9.4% to 24,428; admissions rose 7.2% to 18,995 in the third quarter.
• Moderate pointVITAS adjusted EBITDA excluding Medicare Cap increased 31.4% to $92.5 million; margin rose 318 basis points to 20.2%.
• Moderate pointRoto-Rooter third-quarter revenue increased 7.5% year over year to $233.5 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.California franchise territories were reacquired for approximately $62.5 million; Roto-Rooter plans new Sacramento and San Diego branches.
• Moderate pointQuarterly repurchases returned $66.0 million through 125,000 shares bought at $528.24 per share.
• Moderate pointFive-year credit agreement provides a $450 million revolver and $250 million expansion feature; approximately $166.7 million remained undrawn. 6.7% of market cap

16 minor points

• Minor pointThird-quarter net income rose to $71.648 million from $64.237 million a year earlier.
• Minor pointThird-quarter operating income rose to $96.422 million from $74.750 million a year earlier.
• Minor pointNine-month revenue increased to $2,021.704 million from $1,890.641 million in 2025.
• Minor pointNine-month net income increased to $205.653 million from $188.487 million; diluted EPS rose to $15.43 from $12.89.
• Minor pointVITAS Medicare reimbursement rate increased approximately 2.2% on a geographically weighted average basis versus the prior-year quarter.
• Minor pointVITAS revenue per patient per day reached $209.11, 196 basis points above the prior-year quarter.
• Minor pointVITAS Medicare Cap and other contra revenue changes added 85 basis points to third-quarter revenue growth.
• Minor pointVITAS net income excluding certain discrete items increased 44.7% year over year to $70.8 million.
• Minor pointVITAS gross margin excluding Medicare Cap rose 221 basis points year over year to 25.4% in the third quarter.
• Minor pointVITAS selling, general and administrative expenses fell to $23.1 million from $25.2 million in the prior-year quarter.
• Minor pointVITAS quarterly Medicare Cap accrual declined to $828,000 from $6.1 million in the prior-year quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.Florida combined program recorded no third-quarter Medicare Cap limitation; VITAS anticipates none for fiscal 2026.
• Minor pointRoto-Rooter commercial branch revenue increased 9.0% year over year to $59.9 million in the third quarter.
• Minor pointRoto-Rooter residential branch revenue increased 5.2% year over year to $158.8 million in the third quarter.
• Minor pointTrailing 12-month repurchases totaled 1,235,000 shares at an average $427.62 per share.
• Minor pointRemaining repurchase authorization was approximately $73.7 million at September 30, 2026.

Negative

• Moderate pointRoto-Rooter adjusted EBITDA fell 2.5% to $48.2 million; margin declined 213 basis points to 20.6% year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Five VITAS provider numbers have anticipated full-year Medicare Cap billing limitations totaling $6.1 million.
• Moderate pointLong-term debt was $236.0 million at September 30, 2026, versus none a year earlier.
• Moderate pointCash and cash equivalents declined to $48.427 million from $129.752 million at September 30, 2025.
• Moderate pointStockholders' equity declined to $861.421 million from $1,076.683 million at September 30, 2025.

7 minor points

• Minor pointRoto-Rooter net income excluding certain discrete items declined 1.8% year over year to $33.3 million.
• Minor pointRoto-Rooter selling, general and administrative expenses increased 17.1% year over year to $71.0 million in the third quarter.
• Minor pointRoto-Rooter gross margin fell to 50.3% from 50.7% in the prior-year quarter.
• Minor pointVITAS acuity mix shift reduced third-quarter revenue growth by 25 basis points versus the prior-year period.
• Minor pointCredit agreement interest floats at SOFR plus 100 basis points currently.
• Minor pointThird-quarter interest expense increased to $2.097 million from $457,000 a year earlier.
• Minor pointThird-quarter other income, net decreased to $2.383 million from $9.251 million a year earlier.

News Explained

Five VITAS provider numbers have Medicare Cap limitations totaling $6.1 million, while reported undrawn credit capacity is $166.7 million.

Chemed reacquired the California franchise territories during the quarter for approximately $62.5 million; slightly over half of their associated revenue will move into company-operated branches, while the remaining locations will use its independent-contractor model.

As of September 30, 2026, Chemed reported $48.4 million in cash, $236.0 million in long-term debt, and $166.7 million of undrawn borrowing capacity after letters of credit; that capacity is available financing, not cash already held.

VITAS recorded $828,000 in Medicare Cap billing limitations in the third quarter of 2026, versus $6.1 million in the third quarter of 2025.

Of VITAS’s 33 Medicare provider numbers, five had limitations totaling $6.1 million; no limitation was recorded for the Florida combined program in the quarter, and none was anticipated for fiscal 2026.

Key Figures

Consolidated revenue: $690.9 million, up 10.6% Adjusted diluted EPS: $6.75, up 28.1% VITAS net patient revenue: $457.4 million, up 12.2% +3 more

Consolidated revenue

$690.9 million, up 10.6%

Third quarter 2026 versus prior-year period

Adjusted diluted EPS

$6.75, up 28.1%

Third quarter 2026 versus prior-year period

VITAS net patient revenue

$457.4 million, up 12.2%

Third quarter 2026 versus prior-year period

VITAS adjusted EBITDA

$92.5 million, up 31.4%

Third quarter 2026, excluding Medicare Cap

Roto-Rooter adjusted EBITDA

$48.2 million, down 2.5%

Third quarter 2026 versus prior-year period

Medicare Cap billing limitation

$828,000

VITAS, third quarter 2026

Historical Context

1 past event · Latest: Jul 28

1 event

1. Jul 28

   Quarterly results

   24h Move

   +4.2%

   Q2 revenue and adjusted EPS grew; Chemed raised full-year adjusted EPS guidance.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, adjusted ebitda, sofr, contra revenue

4 terms

gaap financial

"GAAP Diluted Earnings-per-Share (EPS) of $5.45"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

adjusted ebitda financial

"Adjusted EBITDA, excluding Medicare Cap, totaled $92.5 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

sofr financial

"floating rate that is currently SOFR plus 100-basis points"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

contra revenue financial

"Medicare Cap and other contra revenue changes positively impacted revenue growth"

Contra revenue is an accounting entry that reduces a company’s reported gross sales to arrive at net revenue, capturing things like customer returns, discounts, rebates, and allowances; think of it as the “money taken off the sticker price” when a sale isn’t for full value. Investors watch contra revenue because rising or large amounts can signal problems—product returns, heavy discounting, or weak demand—that shrink actual sales and margins even if headline sales look strong.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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CINCINNATI, Oct. 27, 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 third quarter ended September 30, 2026, versus the comparable prior-year period.

Results for Quarter Ended September 30, 2026

Consolidated operating results:

• Revenue increased 10.6% to $690.9 million
• GAAP Diluted Earnings-per-Share (EPS) of $5.45, an increase of 22.2%
• Adjusted Diluted EPS of $6.75, an increase of 28.1%
  
  

VITAS segment operating results:

• Net Patient Revenue of $457.4 million, an increase of 12.2%
• Average Daily Census (ADC) of 24,428, an increase of 9.4%
• Admissions of 18,995, an increase of 7.2%
• Net Income, excluding certain discrete items, of $70.8 million, an increase of 44.7%
• Adjusted EBITDA, excluding Medicare Cap, of $92.5 million, an increase of 31.4%
• Adjusted EBITDA margin, excluding Medicare Cap, of 20.2%, an increase of 318-basis points

Roto-Rooter segment operating results:

• Revenue of $233.5 million, an increase of 7.5%
• Net Income, excluding certain discrete items, of $33.3 million, a decline of 1.8%
• Adjusted EBITDA of $48.2 million, a decline of 2.5%
• Adjusted EBITDA margin of 20.6%, a decline of 213-basis points

VITAS

VITAS net revenue was $457.4 million in the third quarter of 2026, which is an increase of 12.2% when compared to the prior-year period. This revenue increase is comprised primarily of a 9.4% 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 25-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 positively impacted revenue growth by 85-basis points.

Total VITAS admissions increased 7.2% in the third quarter of 2026 compared to the third quarter of 2025.

In the third quarter of 2026, VITAS accrued $828,000 in Medicare Cap billing limitation. This compares to the Medicare Cap billing limitation recorded in the third quarter of 2025 of $6.1 million. No Medicare Cap billing limitation was recorded in the third quarter of 2026 for the Florida combined program, and none is anticipated for the 2026 fiscal period.

Of VITAS’ 33 Medicare provider numbers, 21 provider numbers have an anticipated full-year Medicare Cap cushion of 10% or greater, seven provider numbers have a cushion between 0% and 10%, and five provider numbers have a Medicare Cap billing limitation totaling $6.1 million.

Average revenue per patient per day in the third quarter of 2026 was $209.11 which is 196-basis points above the prior-year period. Reimbursement for routine home care and high-acuity care averaged $187.69 and $1,147.26, respectively. During the quarter, high-acuity days-of-care were 2.2% of total days of care, a decline of 5-basis points when compared to the prior-year quarter.

The third quarter 2026 gross margin, excluding Medicare Cap, was 25.4%, a 221-basis point increase from the same period of 2025. Selling, general and administrative expenses were $23.1 million in the third quarter of 2026 compared to $25.2 million in the prior-year quarter.

Adjusted EBITDA, excluding Medicare Cap, totaled $92.5 million in the quarter, an increase of 31.4% when compared to the prior-year period. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 20.2%.

Roto-Rooter

Roto-Rooter generated quarterly revenue of $233.5 million in the third quarter of 2026, an increase of 7.5%, when compared to the prior-year quarter.

Roto-Rooter branch commercial revenue in the quarter totaled $59.9 million, an increase of 9.0% from the prior-year period. This aggregate commercial revenue change consisted of plumbing increasing 10.6%, drain cleaning increasing 6.8%, excavation increasing 5.5% and water restoration increasing 30.7%.

Roto-Rooter branch residential revenue in the quarter totaled $158.8 million, an increase of 5.2% over the prior-year period. This aggregate residential revenue change consisted of excavation increasing 7.8%, plumbing increasing 5.9%, water restoration increasing 6.2% and drain cleaning increasing 4.5%.

In the third quarter of 2026, revenue from independent contractors was $16.9 million which is flat compared to the same period of 2025.

Roto-Rooter’s third quarter 2026 gross margin was 50.3%. This compares to the prior-year quarter’s gross margin of 50.7%. Roto-Rooter’s selling, general and administrative expenses were $71.0 million in the quarter, which is an increase of 17.1% compared to the third quarter of 2025.

Adjusted EBITDA in the third quarter of 2026 totaled $48.2 million, a decline of 2.5% when compared to the third quarter of 2025. Adjusted EBITDA margin in the quarter was 20.6% which represents a 213-basis point decline from the third quarter of 2025.

During the third quarter of 2026, Roto-Rooter re-acquired multiple franchise territories in California for approximately $62.5 million. Collectively, these territories include a population of over 12 million people. Slightly over half of the revenue associated with acquired territories will become part of our owned and operated branch locations. Two new branches will be established in Sacramento and San Diego while other territories will be absorbed by existing branches. The remaining locations will become part of our independent contractor operating model.

Chemed Consolidated

As of September 30, 2026, Chemed had total cash and cash equivalents of $48.4 million and $236.0 million in long-term debt.

In April 2026, Chemed entered into a new five-year $450 million Amended and Restated Credit Agreement (Credit Agreement). This Credit Agreement consists of a $450 million revolving line of credit and a $250 million expansion feature. The interest rate on this Credit Agreement has a floating rate that is currently SOFR plus 100-basis points. There is approximately $166.7 million undrawn borrowing capacity under the Credit Agreement after excluding $47.3 million for Letters of Credit.

During the quarter, the Company repurchased 125,000 shares of Chemed stock for $66.0 million which equates to a cost per share of $528.24. Over the trailing 12-months, the Company has repurchased 1,235,000 shares of Chemed stock at an average price of $427.62 per share. As of September 30, 2026, there was approximately $73.7 million of remaining share repurchase authorization under the Company’s plan.

Guidance Update

Based on the Company’s financial results through September 30, 2026, we estimate that we will be at or slightly above the high-end of our full-year 2026 adjusted EPS guidance issued in conjunction with our press release, dated July 28, 2026, discussing our second quarter 2026 earnings. Further operational detail will be provided during the investor conference call.

Conference Call

As previously disclosed, Chemed will host a conference call and webcast at 10 a.m. ET, on Wednesday October 28, 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/v5gcs68f.

Participants may also register via teleconference at: https://register-conf.media-server.com/register/BId8ccb8a390cc4b6fbb29ab2b99a55028.

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 Chemed’s Annual Report on Form 10-K for the year ended December 31, 2025 and in its Quarterly Reports filed in 2026. 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,
		2026				2025				2026				2025
Service revenues and sales		$	690,940			$	624,900			$	2,021,704				1,890,641
Cost of services provided and goods sold			457,978				425,143				1,351,507				1,289,778
Selling, general and administrative expenses (aa)			111,469				105,775				340,993				311,685
Depreciation			14,427				13,664				42,997				40,798
Amortization			2,974				2,570				8,263				7,713
Other operating expense			7,670				2,998				7,740				3,075
Total costs and expenses			594,518				550,150				1,751,500				1,653,049
Income from operations			96,422				74,750				270,204				237,592
Interest expense			(2,097	)			(457	)			(4,398	)			(1,229	)
Other income--net (bb)			2,383				9,251				11,071				13,970
Income before income taxes			96,708				83,544				276,877				250,333
Income taxes			(25,060	)			(19,307	)			(71,224	)			(61,846	)
Net income		$	71,648			$	64,237			$	205,653			$	188,487
Earnings Per Share
Net income		$	5.49			$	4.46			$	15.46			$	12.97
Average number of shares outstanding			13,058				14,394				13,300				14,535
Diluted Earnings Per Share
Net income		$	5.45			$	4.46			$	15.43			$	12.89
Average number of shares outstanding			13,135				14,409				13,329				14,620
(aa)    Selling, general and administrative ("SG&A") expenses comprise (in thousands):
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
SG&A expenses before long-term incentive compensation
and the impact of market value adjustments related to
deferred compensation plans		$	106,241			$	99,288			$	324,428			$	301,600
Market value adjustments related to deferred
compensation trusts			2,077				6,703				9,661				6,791
Long-term incentive compensation			3,151				(216	)			6,904				3,294
Total SG&A expenses		$	111,469			$	105,775			$	340,993			$	311,685
(bb)    Other income--net comprises (in thousands):
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Market value adjustments related to deferred
compensation trusts		$	2,077			$	6,703			$	9,661			$	6,791
Interest income			295				2,555				1,399				7,186
Other			11				(7	)			11				(7	)
Total other income--net		$	2,383			$	9,251			$	11,071			$	13,970

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)(unaudited)
		September 30,
		2026				2025
Assets
Current assets
Cash and cash equivalents		$	48,427			$	129,752
Accounts receivable less allowances			254,861				215,570
Inventories			7,748				8,238
Prepaid income taxes			16,346				7,106
Prepaid expenses			38,346				34,577
Total current assets			365,728				395,243
Investments of deferred compensation plans held in trust			144,845				136,021
Properties and equipment, at cost less accumulated depreciation			216,961				203,939
Lease right of use asset			144,029				128,362
Identifiable intangible assets less accumulated amortization			78,791				84,930
Goodwill			754,758				666,987
Other assets			13,327				8,137
Total Assets		$	1,718,439			$	1,623,619
Liabilities
Current liabilities
Accounts payable		$	65,297			$	48,095
Accrued insurance			77,044				65,733
Accrued income taxes			-				1,469
Accrued compensation			89,044				79,668
Short-term lease liability			41,209				42,013
Other current liabilities			58,340				55,063
Total current liabilities			330,934				292,041
Deferred income taxes			18,855				9,687
Deferred compensation liabilities			142,421				132,380
Long-term debt			236,000				-
Long-term lease liability			114,985				99,461
Other liabilities			13,823				13,367
Total Liabilities			857,018				546,936
Stockholders' Equity
Capital stock			37,762				37,593
Paid-in capital			1,693,508				1,581,067
Retained earnings			3,135,794				2,887,123
Treasury stock, at cost			(4,008,128	)			(3,431,475	)
Deferred compensation payable in Company stock			2,485				2,375
Total Stockholders' Equity			861,421				1,076,683
Total Liabilities and Stockholders' Equity		$	1,718,439			$	1,623,619

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)(unaudited)
		For the Nine Months Ended September 30,
		2026				2025
Cash Flows from Operating Activities
Net income		$	205,653			$	188,487
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization			51,260				48,511
Stock option expense			24,285				24,374
Noncash long-term incentive compensation			6,784				3,057
Legal settlements			6,000				1,850
Noncash directors' compensation			1,191				1,123
Benefit for deferred income taxes			(456	)			(16,259	)
Amortization of debt issuance costs			255				241
Changes in operating assets and liabilities, excluding
amounts acquired in business combinations:
Increase in accounts receivable			(71,304	)			(44,403	)
Increase in inventories			(205	)			(45	)
Increase in prepaid expenses			(11,528	)			(8,603	)
Increase in accounts payable and
other current liabilities			27,783				10,102
Change in current income taxes			(7,685	)			(2,162	)
Net change in lease assets and liabilities			(667	)			(576	)
(Increase)/decrease in other assets			(9,356	)			42,048
Increase in other liabilities			6,772				6,355
Other sources			840				639
Net cash provided by operating activities			229,622				254,739
Cash Flows from Investing Activities
Business combinations, net of cash acquired			(96,050	)			(225	)
Capital expenditures			(51,355	)			(46,447	)
Proceeds from sale of fixed assets			488				3,751
Other uses			(502	)			(468	)
Net cash used by investing activities			(147,419	)			(43,389	)
Cash Flows from Financing Activities
Proceeds from revolving line of credit			843,280				-
Payments on revolving line of credit			(607,280	)			-
Purchases of treasury stock			(350,042	)			(256,944	)
Proceeds from exercise of stock options			30,281				27,152
Dividends paid			(25,234	)			(23,196	)
Change in cash overdrafts payable			6,818				610
Capital stock surrendered to pay taxes on stock-based compensation			(3,832	)			(8,484	)
Debt issuance costs			(1,349	)			-
Other (uses)/sources			(933	)			914
Net cash used by financing activities			(108,291	)			(259,948	)
Decrease in Cash and Cash Equivalents			(26,088	)			(48,598	)
Cash and cash equivalents at beginning of year			74,515				178,350
Cash and cash equivalents at end of period		$	48,427			$	129,752

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025
(in thousands)(unaudited)
														Chemed
		VITAS				Roto-Rooter				Corporate				Consolidated
2026 (a)
Service revenues and sales		$	457,403			$	233,537			$	-			$	690,940
Cost of services provided and goods sold			341,993				115,985				-				457,978
Selling, general and administrative expenses			23,100				71,033				17,336				111,469
Depreciation			5,791				8,624				12				14,427
Amortization			25				2,949				-				2,974
Other operating expense			7,352				88				230				7,670
Total costs and expenses			378,261				198,679				17,578				594,518
Income/(loss) from operations			79,142				34,858				(17,578	)			96,422
Interest expense			(54	)			(145	)			(1,898	)			(2,097	)
Intercompany interest income/(expense)			6,766				4,574				(11,340	)			-
Other income—net			124				5				2,254				2,383
Income/(loss) before income taxes			85,978				39,292				(28,562	)			96,708
Income taxes			(20,270	)			(9,152	)			4,362				(25,060	)
Net income/(loss)		$	65,708			$	30,140			$	(24,200	)		$	71,648
2025 (b)
Service revenues and sales		$	407,741			$	217,159			$	-			$	624,900
Cost of services provided and goods sold			318,015				107,128				-				425,143
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)			3,036				(38	)			-				2,998
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
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, 2026 AND 2025
(in thousands)(unaudited)
														Chemed
		VITAS				Roto-Rooter				Corporate				Consolidated
2026 (a)
Service revenues and sales		$	1,320,762			$	700,942			$	-			$	2,021,704
Cost of services provided and goods sold			1,005,150				346,357				-				1,351,507
Selling, general and administrative expenses			75,314				206,335				59,344				340,993
Depreciation			17,484				25,477				36				42,997
Amortization			78				8,185				-				8,263
Other operating expense			7,432				78				230				7,740
Total costs and expenses			1,105,458				586,432				59,610				1,751,500
Income/(loss) from operations			215,304				114,510				(59,610	)			270,204
Interest expense			(158	)			(466	)			(3,774	)			(4,398	)
Intercompany interest income/(expense)			19,484				13,661				(33,145	)			-
Other income—net			285				31				10,755				11,071
Income/(loss) before income taxes			234,915				127,736				(85,774	)			276,877
Income taxes			(56,088	)			(29,899	)			14,763				(71,224	)
Net income/(loss)		$	178,827			$	97,837			$	(71,011	)		$	205,653
2025 (b)
Service revenues and sales		$	1,211,341			$	679,300			$	-			$	1,890,641
Cost of services provided and goods sold			951,466				338,312				-				1,289,778
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)			3,155				(80	)			-				3,075
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
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, 2026 AND 2025
(in thousands)(unaudited)
														Chemed
		VITAS				Roto-Rooter				Corporate				Consolidated
2026
Net income/(loss)		$	65,708			$	30,140			$	(24,200	)		$	71,648
Add/(deduct):
Interest expense			54				145				1,898				2,097
Income taxes			20,270				9,152				(4,362	)			25,060
Depreciation			5,791				8,624				12				14,427
Amortization			25				2,949				-				2,974
EBITDA			91,848				51,010				(26,652	)			116,206
Add/(deduct):
Intercompany interest expense/(income)			(6,766	)			(4,574	)			11,340				-
Interest income			(113	)			(5	)			(177	)			(295	)
Legal settlements			6,705				-				308				7,013
Stock option expense			-				-				5,984				5,984
Long-term incentive compensation			-				-				3,151				3,151
Acquisition expense			-				1,726				-				1,726
Adjusted EBITDA		$	91,674			$	48,157			$	(6,046	)		$	133,785
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
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, 2026 AND 2025
(in thousands)(unaudited)
														Chemed
		VITAS				Roto-Rooter				Corporate				Consolidated
2026
Net income/(loss)		$	178,827			$	97,837			$	(71,011	)		$	205,653
Add/(deduct):
Interest expense			158				466				3,774				4,398
Income taxes			56,088				29,899				(14,763	)			71,224
Depreciation			17,484				25,477				36				42,997
Amortization			78				8,185				-				8,263
EBITDA			252,635				161,864				(81,964	)			332,535
Add/(deduct):
Intercompany interest expense/(income)			(19,484	)			(13,661	)			33,145				-
Interest income			(274	)			(31	)			(1,094	)			(1,399	)
Stock option expense			-				-				24,285				24,285
Legal settlements			7,253				-				308				7,561
Long-term incentive compensation			-				-				6,904				6,904
Acquisition expense			8				1,953				-				1,961
Adjusted EBITDA		$	240,138			$	150,125			$	(18,416	)		$	371,847
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
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,
		2026				2025				2026				2025
Net income as reported		$	71,648			$	64,237			$	205,653			$	188,487
Add/(deduct) pre-tax cost of:
Stock option expense			5,984				6,067				24,285				24,374
Legal settlements			7,013				2,850				7,561				2,850
Amortization of reacquired franchise rights			2,352				2,352				7,056				7,056
Long-term incentive compensation			3,151				(216	)			6,904				3,294
Acquisition expense			1,726				-				1,961				-
Other			-				2,665				-				2,665
Add/(deduct) tax impacts:
Tax impact of the above pre-tax adjustments (1)			(3,670	)			(2,049	)			(8,296	)			(6,512	)
Excess tax expenses/(benefits) on stock compensation			521				-				1,022				(513	)
Adjusted net income		$	88,725			$	75,906			$	246,146			$	221,701
Diluted Earnings Per Share As Reported
Net income		$	5.45			$	4.46			$	15.43			$	12.89
Average number of shares outstanding			13,135				14,409				13,329				14,620
Adjusted Diluted Earnings Per Share
Adjusted net income		$	6.75			$	5.27			$	18.47			$	15.16
Average number of shares outstanding			13,135				14,409				13,329				14,620
(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,								For the Nine Months Ended September 30,
OPERATING STATISTICS	2026				2025				2026				2025
Net revenue ($000) (c)
Homecare	$	405,969			$	362,405			$	1,168,407			$	1,072,014
Inpatient		36,407				33,099				108,006				100,145
Continuous care		21,159				19,946				58,689				68,222
Other		6,421				5,807				18,204				16,898
Subtotal	$	469,956			$	421,257			$	1,353,306			$	1,257,279
Room and board, net		(3,982	)			(3,859	)			(11,178	)			(11,277	)
Contractual allowances		(7,743	)			(3,571	)			(17,663	)			(9,875	)
Medicare cap allowance		(828	)			(6,086	)			(3,703	)			(24,786	)
Net Revenue	$	457,403			$	407,741			$	1,320,762			$	1,211,341
Net revenue as a percent of total before Medicare cap allowance
Homecare		86.4	%			86.0	%			86.3	%			85.3	%
Inpatient		7.7				7.9				8.0				8.0
Continuous care		4.5				4.7				4.3				5.4
Other		1.4				1.4				1.4				1.3
Subtotal		100.0				100.0				100.0				100.0
Room and board, net		(0.8	)			(0.8	)			(0.8	)			(0.9	)
Contractual allowances		(1.7	)			(0.8	)			(1.3	)			(0.8	)
Medicare cap allowance		(0.2	)			(1.4	)			(0.3	)			(2.0	)
Net Revenue		97.3	%			97.0	%			97.6	%			96.3	%
Days of care
Homecare		1,872,071				1,685,859				5,356,050				4,980,883
Nursing home		312,663				309,192				910,534				923,458
Respite		12,502				12,184				35,684				33,619
Subtotal routine homecare and respite		2,197,236				2,007,235				6,302,268				5,937,960
Inpatient		30,494				28,530				90,671				86,447
Continuous care		19,683				18,309				55,065				62,576
Total		2,247,413				2,054,074				6,448,004				6,086,983
Number of days in relevant time period		92				92				273				273
Average daily census ("ADC") (days)
Homecare		20,348				18,325				19,619				18,245
Nursing home		3,399				3,361				3,335				3,383
Respite		136				132				131				123
Subtotal routine homecare and respite		23,883				21,818				23,085				21,751
Inpatient		331				310				332				317
Continuous care		214				199				202				229
Total		24,428				22,327				23,619				22,297
Total Admissions		18,995				17,714				57,514				53,398
Total Discharges		18,426				17,348				55,130				52,931
Average length of stay (days)		103.5				109.7				102.5				121.9
Median length of stay (days)		17.0				18.0				16.0				18.0
ADC by major diagnosis
Cerebro		44.1	%			44.1	%			44.4	%			44.6	%
Neurological		11.2				11.6				11.1				11.8
Cancer		9.2				10.1				9.4				9.8
Cardio		16.8				15.9				16.6				16.0
Respiratory		8.1				7.7				7.9				7.4
Other		10.6				10.6				10.6				10.4
Total		100.0	%			100.0	%			100.0	%			100.0	%
Admissions by major diagnosis
Cerebro		28.0	%			27.1	%			27.5	%			27.6	%
Neurological		6.7				6.9				6.9				6.8
Cancer		24.7				26.6				24.3				25.9
Cardio		14.9				14.3				15.3				14.7
Respiratory		12.3				10.5				12.2				10.9
Other		13.4				14.6				13.8				14.1
Total		100.0	%			100.0	%			100.0	%			100.0	%
Estimated uncollectible accounts as a percent of revenues		1.2	%			0.9	%			1.3	%			0.8	%
Accounts receivable --
Days of revenue outstanding-excluding unapplied Medicare payments		39.0				37.5				n.a.				n.a.
Days of revenue outstanding-including unapplied Medicare payments		37.4				34.0				n.a.				n.a.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
FOOTNOTES TO FINANCIAL STATEMENTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025
(unaudited)
(a)	Included in the results of operations for 2026 are the following significant credits/(charges) which may not be indicative of ongoing operations
	(in thousands):
			Three Months Ended September 30, 2026
			VITAS				Roto-Rooter				Corporate				Consolidated
	Legal settlements		$	(6,705	)		$	-			$	(308	)		$	(7,013	)
	Stock option expense			-				-				(5,984	)			(5,984	)
	Long-term incentive compensation			-				-				(3,151	)			(3,151	)
	Amortization of reacquired franchise agreements			-				(2,352	)			-				(2,352	)
	Acquisition expense			-				(1,726	)			-				(1,726	)
	Pretax impact on earnings			(6,705	)			(4,078	)			(9,443	)			(20,226	)
	Excess tax expenses on stock compensation			-				-				(521	)			(521	)
	Income tax benefit on the above			1,629				950				1,091				3,670
	After-tax impact on earnings		$	(5,076	)		$	(3,128	)		$	(8,873	)		$	(17,077	)
			Nine Months Ended September 30, 2026
			VITAS				Roto-Rooter				Corporate				Consolidated
	Stock option expense		$	-			$	-			$	(24,285	)		$	(24,285	)
	Legal settlements			(7,253	)			-				(308	)			(7,561	)
	Amortization of reacquired franchise agreements			-				(7,056	)			-				(7,056	)
	Long-term incentive compensation			-				-				(6,904	)			(6,904	)
	Acquisition expense			(8	)			(1,953	)			-				(1,961	)
	Pretax impact on earnings			(7,261	)			(9,009	)			(31,497	)			(47,767	)
	Excess tax expenses on stock compensation			-				-				(1,022	)			(1,022	)
	Income tax benefit on the above			1,764				2,100				4,432				8,296
	After-tax impact on earnings		$	(5,497	)		$	(6,909	)		$	(28,087	)		$	(40,493	)
(b)	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	)
(c)	VITAS has 14 large (greater than 450 ADC), 25 medium (greater than 200 but less than 450 ADC) and 21 small (less than 200 ADC) hospice programs. Of Vitas' 33 Medicare provider numbers, for the current cap year, 21 provider numbers have a Medicare cap cushion of greater than 10%, seven 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

This press release was published by a CLEAR® Verified individual.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Chemed's third-quarter 2026 earnings and revenue?

Chemed reported $690.9 million in revenue and $5.45 in GAAP diluted EPS, increases of 10.6% and 22.2%, respectively, versus the prior-year quarter. Adjusted diluted EPS increased 28.1% to $6.75.

What is Chemed's updated full-year 2026 earnings outlook?

Chemed expects full-year 2026 adjusted EPS at or slightly above the high end of the guidance issued on July 28, 2026. The expectation reflects financial results through September 30, 2026.

How will Roto-Rooter operate its reacquired California franchise territories?

Slightly over half of the revenue associated with the acquired territories will become part of owned and operated branches, with the remaining locations entering the independent contractor model. New branches will be established in Sacramento and San Diego, while existing branches will absorb other territories.

How much Medicare Cap cushion does VITAS expect for 2026?

Of VITAS' 33 Medicare provider numbers, 21 have an anticipated full-year cushion of 10% or greater, and seven have a cushion between 0% and 10%. Five have anticipated Medicare Cap billing limitations totaling $6.1 million. The cap limits Medicare billing.