Chemed (NYSE: CHE) posts Q1 2026 revenue growth with lower profit

Rhea-AI Filing Summary

Chemed Corporation reported first-quarter 2026 service revenues and sales of $657.5 million, up modestly from $646.9 million a year earlier. Net income was $66.3 million versus $71.8 million, as higher costs and expenses offset revenue growth.

Hospice segment VITAS generated net revenue of $420.0 million, driven by a 2.2% increase in days of care and Medicare rate increases. Roto-Rooter revenue was $237.5 million, slightly below last year, with softer water restoration and contractor activity despite higher pricing in core plumbing and drain services.

The company produced net cash from operating activities of $88.2 million, used $190.0 million to repurchase 500,000 shares, and ended the quarter with $91.2 million of long-term debt under its revolving credit facility and $16.9 million of cash and cash equivalents.

Key Figures

Service revenues and sales: $657.5M Net income: $66.3M Diluted EPS: $4.84/share +5 more

8 metrics

Service revenues and sales $657.5M Three months ended March 31, 2026 consolidated revenue

Net income $66.3M Three months ended March 31, 2026 consolidated net income

Diluted EPS $4.84/share Three months ended March 31, 2026 diluted earnings per share

VITAS net revenue $420.0M Three months ended March 31, 2026 hospice segment net revenue

Roto-Rooter net revenue $237.5M Three months ended March 31, 2026 Roto-Rooter segment net revenue

Net cash from operating activities $88.2M Three months ended March 31, 2026 consolidated operating cash flow

Share repurchases $197.7M Cost to repurchase 500,000 shares in Q1 2026

Long-term debt $91.2M Long-term debt outstanding under credit facility as of March 31, 2026

Key Terms

Adjusted EBITDA, Medicare Cap, ASC 606, Performance Stock Units, +1 more

5 terms

Adjusted EBITDA financial

"Adjusted EBITDA | $ | 116,257 | | $ | 121,692 |"

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.

Medicare Cap financial

"We are also subject to a Medicare annual per-beneficiary cap (“Medicare Cap”)."

ASC 606 financial

"The standard is also referred to as Accounting Standards Codification No. 606 (“ASC 606”)."

A U.S. accounting standard that sets consistent rules for when and how companies record revenue from contracts with customers, focusing on the transfer of promised goods or services. It matters to investors because it affects the timing and amount of reported sales and profit—like deciding whether a contractor can count payment when a job starts, progresses, or finishes—so it improves comparability and helps assess a company's true economic performance.

Performance Stock Units financial

"the CIC granted 8,400 Performance Stock Units (“PSUs”) that vest contingent upon the achievement of certain total shareholder return"

Performance stock units are a type of company award that grants employees shares of stock only if certain performance goals are met. They motivate employees to work toward specific company achievements, aligning their interests with those of shareholders. For investors, they can influence a company's future stock supply and reflect management’s confidence in reaching key targets.

secured overnight financing rate financial

"The interest on this Credit Agreement has a floating interest rate that is the secured overnight financing rate (“SOFR”) plus an additional tiered rate"

A secured overnight financing rate (SOFR) is a daily benchmark interest rate that reflects the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Think of it as the market price to “rent” cash for a day with a very safe pledge, similar to paying a short-term rental fee for money backed by government bonds. Investors track SOFR because it underpins pricing for loans, bonds and derivatives, so movements change borrowing costs, interest income and the valuation of interest-rate–linked positions.

10-Q Quarterly Reports: What Changes Quarter to Quarter →

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x    Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended March 31, 2026

o    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number: 1-8351

CHEMED CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		31-0791746
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)
255 E. Fifth Street, Suite 2600, Cincinnati, Ohio		45202
(Address of principal executive offices)		(Zip code)
(513) 762-6690 (Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes   x No   o  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes   x No   o  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Large Accelerated Filer x Accelerated Filer o Non-accelerated Filer o Smaller Reporting Company o

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended the extended transition period for complying with a new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes    o  No   x  

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on which Registered		Amount	Date
Capital Stock $1 Par Value	CHE	New York Stock Exchange		13,274,104 Shares	March 31, 2026

‎

-1-

CHEMED CORPORATION AND

SUBSIDIARY COMPANIES

Index

	Page No.
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Unaudited Consolidated Balance Sheets -
March 31, 2026 and December 31, 2025	3
Unaudited Consolidated Statements of Income -
Three months ended March 31, 2026 and 2025	4
Unaudited Consolidated Statements of Cash Flows -
Three months ended March 31, 2026 and 2025	5
Unaudited Consolidated Statements of Changes in Stockholders’ Equity-
Three months ended March 31, 2026 and 2025	6
Notes to Unaudited Consolidated Financial Statements	7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3. Quantitative and Qualitative Disclosures about Market Risk	31
Item 4. Controls and Procedures	31
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	31
Item 1A. Risk Factors	31
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3. Defaults Upon Senior Securities	32
Item 4. Mine Safety Disclosures	32
Item 5. Other Information	32
Item 6. Exhibits	33
EX – 10.1
EX – 31.1
EX – 31.2
EX – 32.1
EX – 32.2
EX – 101
EX – 104
SIGNATURES	34

‎

-2-

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
	March 31, 2026			December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	16,856		$	74,515
Accounts receivable less allowances		215,479			182,575
Inventories		7,208			7,543
Prepaid income taxes		7,614			11,165
Prepaid expenses		26,906			26,818
Total current assets		274,063			302,616
Investments of deferred compensation plans held in trust		143,778			140,347
Properties and equipment, at cost, less accumulated depreciation of $398,373 (2025- $388,104)		207,734			205,662
Lease right of use asset		133,597			131,151
Identifiable intangible assets less accumulated amortization of $72,002 (2025 - $69,432)		80,417			82,764
Goodwill		687,501			666,999
Other assets		8,725			8,650
Total Assets	$	1,535,815		$	1,538,189
LIABILITIES
Current liabilities
Accounts payable	$	65,698		$	64,459
Accrued insurance		65,101			62,054
Income taxes		25,770			2,504
Accrued compensation		62,750			58,329
Short-term lease liability		41,286			40,892
Other current liabilities		60,810			58,892
Total current liabilities		321,415			287,130
Deferred income taxes		14,575			19,313
Deferred compensation liabilities		142,660			136,139
Long-term debt		91,200			-
Long-term lease liability		104,448			102,867
Other liabilities		13,523			13,335
Total Liabilities		687,821			558,784
Commitments and contingencies (Note 10)
STOCKHOLDERS' EQUITY
Capital stock - authorized 80,000,000 shares $1 par; issued 37,606,800 shares (2025 - 37,594,676 shares)		37,607			37,595
Paid-in capital		1,603,730			1,592,197
Retained earnings		3,013,504			2,955,375
Treasury stock - 24,387,448 shares (2025 - 23,884,187 shares)		(3,809,245)			(3,608,117)
Deferred compensation payable in Company stock		2,398			2,355
Total Stockholders' Equity		847,994			979,405
Total Liabilities and Stockholders' Equity	$	1,535,815		$	1,538,189
See Accompanying Notes to Unaudited Consolidated Financial Statements.

‎

-3-

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
	Three Months Ended March 31,
	2026			2025
Service revenues and sales	$	657,513		$	646,943
Cost of services provided and goods sold (excluding depreciation)		441,749			430,530
Selling, general and administrative expenses		114,321			105,587
Depreciation		14,303			13,445
Amortization		2,570			2,572
Other operating (income)/expense		(8)			51
Total costs and expenses		572,935			552,185
Income from operations		84,578			94,758
Interest expense		(512)			(329)
Other income - net		4,774			1,245
Income before income taxes		88,840			95,674
Income taxes		(22,538)			(23,917)
Net income	$	66,302		$	71,757
Earnings Per Share:
Net income	$	4.85		$	4.91
Average number of shares outstanding		13,675			14,622
Diluted Earnings Per Share:
Net income	$	4.84		$	4.86
Average number of shares outstanding		13,690			14,764
Cash Dividends Per Share	$	0.60		$	0.50
See Accompanying Notes to Unaudited Consolidated Financial Statements.

‎

-4-

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
	Three Months Ended March 31,
	2026			2025
Cash Flows from Operating Activities
Net income	$	66,302		$	71,757
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization		16,873			16,017
Stock option expense		9,249			9,091
Benefit for deferred income taxes		(4,737)			(14,174)
Noncash long-term incentive compensation		1,386			2,420
Amortization of debt issuance costs		80			80
Changes in operating assets and liabilities:
Increase in accounts receivable		(32,899)			(67,424)
Decrease in inventories		335			403
Increase in prepaid expenses		(88)			(4,430)
Increase/(decrease) in accounts payable and other current liabilities		2,235			(22,592)
Change in current income taxes		26,817			37,286
Net change in lease assets and liabilities		(471)			169
(Increase)/decrease in other assets		(3,603)			3,034
Increase in other liabilities		6,709			951
Other sources		31			156
Net cash provided by operating activities		88,219			32,744
Cash Flows from Investing Activities
Business combinations, net of cash acquired		(20,610)			(225)
Capital expenditures		(17,116)			(13,280)
Proceeds from sale of fixed assets		134			112
Other uses		(197)			(281)
Net cash used by investing activities		(37,789)			(13,674)
Cash Flows from Financing Activities
Purchases of treasury stock		(190,039)			(33,222)
Proceeds from revolving line of credit		135,480			-
Payments on revolving line of credit		(44,280)			-
Dividends paid		(8,173)			(7,325)
Capital stock surrendered to pay taxes on stock-based compensation		(1,482)			(6,254)
Proceeds from exercise of stock options		1,312			22,666
Change in cash overdrafts payable		(493)			438
Other (uses)/sources		(414)			159
Net cash used by financing activities		(108,089)			(23,538)
Decrease in Cash and Cash Equivalents		(57,659)			(4,468)
Cash and cash equivalents at beginning of period		74,515			178,350
Cash and cash equivalents at end of period	$	16,856		$	173,882
See Accompanying Notes to Unaudited Consolidated Financial Statements.

‎

-5-

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(in thousands, except per share data)
For the three months ended March 31, 2026 and 2025:														Deferred
														Compensation
											Treasury			Payable in
		Capital			Paid-in			Retained			Stock-			Company
		Stock			Capital			Earnings			at Cost			Stock			Total
Balance at December 31, 2025	$	37,595		$	1,592,197		$	2,955,375		$	(3,608,117)		$	2,355		$	979,405
Net income		-			-			66,302			-			-			66,302
Dividends paid ($0.60 per share)		-			-			(8,173)			-			-			(8,173)
Stock awards and exercise of stock options		12			11,935			-			(1,482)			-			10,465
Purchases of treasury stock		-			-			-			(197,682)			-			(197,682)
Excise tax on share repurchase		-			-			-			(1,920)			-			(1,920)
Other		-			(402)			-			(44)			43			(403)
Balance at March 31, 2026	$	37,607		$	1,603,730		$	3,013,504		$	(3,809,245)		$	2,398		$	847,994
														Deferred
														Compensation
											Treasury			Payable in
		Capital			Paid-in			Retained			Stock-			Company
		Stock			Capital			Earnings			at Cost			Stock			Total
Balance at December 31, 2024	$	37,422		$	1,484,176		$	2,721,832		$	(3,126,660)		$	2,223		$	1,118,993
Net income		-			-			71,757			-			-			71,757
Dividends paid ($0.50 per share)		-			-			(7,325)			-			-			(7,325)
Stock awards and exercise of stock options		113			54,072			-			(26,262)			-			27,923
Purchases of treasury stock		-			-			-			(29,756)			-			(29,756)
Other		-			171			-			(40)			39			170
Balance at March 31, 2025	$	37,535		$	1,538,419		$	2,786,264		$	(3,182,718)		$	2,262		$	1,181,762
See Accompanying Notes to Unaudited Consolidated Financial Statements.

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CHEMED CORPORATION AND SUBSIDIARY COMPANIES

Notes to Unaudited Consolidated Financial Statements

1.    Basis of Presentation

As used herein, the terms “We,” “Company” and “Chemed” refer to Chemed Corporation or Chemed Corporation and its consolidated subsidiaries.

We have prepared the accompanying unaudited consolidated financial statements of Chemed in accordance with Rule 10-01 of SEC Regulation S-X. Consequently, we have omitted certain disclosures required under generally accepted accounting principles in the United States (“GAAP”) for complete financial statements. The December 31, 2025 balance sheet data were derived from audited financial statements but do not include all disclosures required by GAAP. However, in our opinion, the financial statements presented herein contain all adjustments, consisting only of normal recurring adjustments, necessary to state fairly our financial position, results of operations and cash flows. The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026 or any other future period, and we make no representations related thereto. These financial statements are prepared on the same basis as and should be read in conjunction with the audited Consolidated Financial Statements and related Notes included in our Annual Report on Form 10-K for the year ended December 31, 2025.

INCOME TAXES

Our effective income tax rate was 25.4% in the first quarter of 2026 compared to 25.0% during the first quarter of 2025. Excess tax benefit on stock options exercised reduced our income tax expense by $463,000 for the quarter ended March 31, 2025.

NON-CASH TRANSACTIONS

Included in the accompanying Consolidated Balance Sheets are $1.4 million and $2.1 million of capitalized property and equipment which were not paid for as of March 31, 2026 and December 31, 2025, respectively. Accrued property and equipment purchases have been excluded from capital expenditures in the accompanying Consolidated Statements of Cash Flow. There are no material non-cash amounts included in interest expense for any period presented.

BUSINESS COMBINATIONS

We account for acquired businesses using the acquisition method of accounting. All assets acquired and liabilities assumed are recorded at their respective fair values at the date of acquisition. The determination of fair value involves estimates and the use of valuation techniques when market value is not readily available. We use various techniques to determine fair value in accordance with accepted valuation models, primarily the income approach. The significant assumptions used in developing fair values include, but are not limited to, revenue growth rates, the amount and timing of future cash flows, discount rates, useful lives, royalty rates and future tax rates. The excess of purchase price over the fair value of assets and liabilities acquired is recorded as goodwill. See Note 15 for discussion of recent acquisitions.

ESTIMATES

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying Notes. Actual results could differ from those estimates. Disclosures of after-tax expenses and adjustments are based on estimates of the effective income tax rates for the applicable segments.

2.    Revenue Recognition

In May 2014, the FASB issued Accounting Standards Update “ASU No. 2014-09 – Revenue from Contracts with Customers.” The standard and subsequent amendments are intended to develop a common revenue standard for removing inconsistencies and weaknesses, improve comparability, provide for more useful information to users through improved disclosure requirements and simplify the preparation of financial statements. The standard is also referred to as Accounting Standards Codification No. 606 (“ASC 606”).

VITAS

Service revenue for VITAS is reported at the amount that reflects the ultimate consideration we expect to receive in exchange for providing patient care. These amounts are due from third-party payors, primarily commercial health insurers and government programs (Medicare and Medicaid), and include variable consideration for revenue adjustments due to settlements of audits and reviews,

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as well as certain hospice-specific revenue capitations. Amounts are generally billed monthly or subsequent to patient discharge. Subsequent changes in the transaction price initially recognized are not significant.

Hospice services are provided on a daily basis and the type of service provided is determined based on a physician’s determination of each patient’s specific needs on that given day. Reimbursement rates for hospice services are on a per diem basis regardless of the type of service provided or the payor. Reimbursement rates from government programs are established by the appropriate governmental agency and are standard across all hospice providers. Reimbursement rates from health insurers are negotiated with each payor and generally structured to closely mirror the Medicare reimbursement model. The types of hospice services provided and associated reimbursement model for each are as follows:

Routine Home Care occurs when a patient receives hospice care in their home, including a nursing home setting. The routine home care rate is paid for each day that a patient is in a hospice program and is not receiving one of the other categories of hospice care. For Medicare patients, the routine home care rate reflects a two-tiered rate, with a higher rate for the first 60 days of a hospice patient’s care and a lower rate for days 61 and after. In addition, there is a Service Intensity Add-on payment which covers direct home care visits conducted by a registered nurse or social worker in the last seven days of a hospice patient’s life, reimbursed up to 4 hours per day in 15 minute increments at the continuous home care rate.

General Inpatient Care occurs when a patient requires services in a controlled setting for a short period of time for pain control or symptom management which cannot be managed in other settings. General inpatient care services must be provided in a Medicare or Medicaid certified hospital or long-term care facility or at a freestanding inpatient hospice facility with the required registered nurse staffing.

Continuous Home Care is provided to patients while at home, including a nursing home setting, during periods of crisis when intensive monitoring and care, primarily nursing care, is required in order to achieve palliation or management of acute medical symptoms. Continuous home care requires a minimum of 8 hours of care within a 24-hour day, which begins at midnight. The care must be predominantly nursing care provided by either a registered nurse or licensed nurse practitioner. While the published Medicare continuous home care rates are daily rates, Medicare pays for continuous home care in 15 minute increments.  This 15 minute rate is calculated by dividing the daily rate by 96.

Respite Care permits a hospice patient to receive services on an inpatient basis for a short period of time in order to provide relief for the patient’s family or other caregivers from the demands of caring for the patient.  A hospice can receive payment for respite care for a given patient for up to five consecutive days at a time, after which respite care is reimbursed at the routine home care rate.

Each level of care represents a separate promise under the contract of care and is provided independently for each patient contingent upon the patient’s specific medical needs as determined by a physician. However, the clinical criteria used to determine a patient’s level of care is consistent across all patients, given that, each patient is subject to the same payor rules and regulations. As a result, we have concluded that each level of care is capable of being distinct and is distinct in the context of the contract. Furthermore, we have determined that each level of care represents a stand ready service provided as a series of either days or hours of patient care. We believe that the performance obligations for each level of care meet criteria to be satisfied over time. VITAS recognizes revenue based on the service output. VITAS believes this to be the most faithful depiction of the transfer of control of services as the patient simultaneously receives and consumes the benefits provided by our performance. Revenue is recognized on a daily or hourly basis for each patient in accordance with the reimbursement model for each type of service. VITAS’ performance obligations relate to contracts with an expected duration of less than one year. Therefore, VITAS has elected to apply the optional exception provided in ASC 606 and is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The unsatisfied or partially satisfied performance obligations referred to above relate to bereavement services provided to patients’ families for at least 12 months after discharge.

Care is provided to patients regardless of their ability to pay. Patients who meet our criteria for charity care are provided care without charge. There is no revenue or associated accounts receivable in the accompanying Consolidated Financial Statements related to charity care. The cost of providing charity care for the quarters ended March 31, 2026 and 2025 was $2.2 million and $2.0 million, respectively. The cost of charity care is included in cost of services provided and goods sold and is calculated by taking the ratio of charity care days to total days of care and multiplying by the total cost of care.

Generally, patients who are covered by third-party payors are responsible for related deductibles and coinsurance which vary in amount. VITAS also provides service to patients without a reimbursement source and may offer those patients discounts from standard charges. VITAS estimates the transaction price for patients with deductibles and coinsurance, along with those uninsured patients, based on historical experience and current conditions. The estimate of any contractual adjustments, discounts or implicit price concessions reduces the amount of revenue initially recognized. Subsequent changes to the estimate of the transaction price are recorded as adjustments to patient service revenue in the period of change. Subsequent changes that are determined to be the result of an adverse

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change in the patients’ ability to pay (i.e. change in credit risk) are recorded as bad debt expense. VITAS has no material adjustments related to subsequent changes in the estimate of the transaction price or subsequent changes as the result of an adverse change in the patient’s ability to pay for any period reported.

Laws and regulations concerning government programs, including Medicare and Medicaid, are complex and subject to varying interpretation and change over time. Medicare and Medicaid programs have broad authority to audit and review compliance with such laws and regulations and impose payment suspensions or modifications when merited. Additionally, the contracts we have with commercial health insurance payors provide for retroactive audit and review of claims. Settlement with third party payors for retroactive adjustments due to audits, reviews or investigations are considered variable consideration and are included in the determination of the estimated transaction price for providing patient care. The variable consideration is estimated based on the terms of the payment agreement, existing correspondence from the payor and our historical settlement activity. These estimates are adjusted in future periods, as new information becomes available.

We are subject to certain limitations on Medicare payments for services which are considered variable consideration, as follows:

Inpatient Cap. If the number of inpatient care days any hospice program provides to Medicare beneficiaries exceeds 20% of the total days of hospice care such program provided to all Medicare patients for an annual period beginning September 28, the days in excess of the 20% figure may be reimbursed only at the routine homecare rate. None of VITAS’ hospice programs exceeded the payment limits on inpatient services during the three months ended March 31, 2026 and 2025.

Medicare Cap. We are also subject to a Medicare annual per-beneficiary cap (“Medicare Cap”). Compliance with the Medicare Cap is measured in one of two ways based on a provider election. The “streamlined” method compares total Medicare payments received under a Medicare provider number with respect to services provided to all Medicare hospice care beneficiaries in the program or programs covered by that Medicare provider number with the product of the per-beneficiary cap amount and the number of Medicare beneficiaries electing hospice care for the first time from that hospice program or programs from September 28 through September 27 of the following year. At March 31, 2026, all our programs except three are using the “streamlined” method.

The “proportional” method compares the total Medicare payments received under a Medicare provider number with respect to services provided to all Medicare hospice care beneficiaries in the program or programs covered by the Medicare provider number between September 28 and September 27 of the following year with the product of the per beneficiary cap amount and a pro-rated number of Medicare beneficiaries receiving hospice services from that program during the same period. The pro-rated number of Medicare beneficiaries is calculated based on the ratio of days the beneficiary received hospice services during the measurement period to the total number of days the beneficiary received hospice services.

We actively monitor each of our hospice programs, by provider number, as to their specific admission, discharge rate and median length of stay data in an attempt to determine whether revenues are likely to exceed the annual per-beneficiary Medicare Cap. Should we determine that revenues for a program are likely to exceed the Medicare Cap based on projected trends, we attempt to institute corrective actions, which include changes to the patient mix and increased patient admissions. However, should we project our corrective action will not prevent that program from exceeding its Medicare Cap, we estimate revenue recognized during the government fiscal year that will require repayment to the Federal government under the Medicare Cap and record an adjustment to revenue of an amount equal to a ratable portion of our best estimate for the year.

For VITAS’ patients in the nursing home setting in which Medicaid pays the nursing home room and board, VITAS serves as a pass-through between Medicaid and the nursing home. We are responsible for paying the nursing home for that patient’s room and board. Medicaid reimburses us for 95% of the amount we have paid. This results in a 5% net expense for VITAS related to nursing home room and board. This transaction creates a performance obligation in that VITAS is facilitating room and board being delivered to our patient. As a result, the 5% net expense is recognized as a contra-revenue account under ASC 606 in the accompanying financial statements.

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The composition of patient care service revenue by payor and level of care for the quarter ended March 31, 2026 is as follows (in thousands):

	Medicare			Medicaid			Commercial			Total
Routine home care	$	350,077		$	12,554		$	8,460		$	371,091
Inpatient care		31,449			2,327			2,149			35,925
Continuous care		16,582			551			1,000			18,133
	$	398,108		$	15,432		$	11,609		$	425,149
All other revenue - self-pay, respite care, etc.											5,578
Subtotal										$	430,727
Medicare cap adjustment											(2,375)
Implicit price concessions											(5,077)
Room and board, net											(3,257)
Net revenue										$	420,018

The composition of patient care service revenue by payor and level of care for the quarter ended March 31, 2025 is as follows (in thousands):

	Medicare			Medicaid			Commercial			Total
Routine home care	$	332,639		$	11,038		$	7,889		$	351,566
Inpatient care		29,544			2,164			2,314			34,022
Continuous care		22,847			742			1,048			24,637
	$	385,030		$	13,944		$	11,251		$	410,225
All other revenue - self-pay, respite care, etc.											5,344
Subtotal										$	415,569
Medicare cap adjustment											(2,325)
Implicit price concessions											(2,319)
Room and board, net											(3,525)
Net revenue										$	407,400

Roto-Rooter

Roto-Rooter provides plumbing, drain cleaning, excavation, water restoration and other related services to both residential and commercial customers primarily in the United States. Services are provided through a network of company-owned branches, independent contractors and franchisees. Service revenue for Roto-Rooter is reported at the amount that reflects the ultimate consideration we expect to receive in exchange for providing services.

Roto-Rooter owns and operates branches focusing mainly on large population centers in the United States. Roto-Rooter’s primary lines of business in company-owned branches consist of plumbing, sewer and drain cleaning, excavation and water restoration. For purposes of ASC 606 analysis, plumbing, sewer and drain cleaning, and excavation have been combined into one portfolio and are referred to as “short-term core services”. Water restoration is analyzed as a separate portfolio. The following describes the key characteristics of these portfolios:

Short-term Core Services are plumbing, drain and sewer cleaning and excavation services. These services are provided to both commercial and residential customers. The duration of services provided in this category range from a few hours to a few days. There are no significant warranty costs or on-going obligations to the customer once a service has been completed. For residential customers, payment is received at the time of job completion before the Roto-Rooter technician leaves the residence. Commercial customers may be granted credit subject to internally designated authority limits and credit check guidelines. If credit is granted, payment terms are generally 30 days or less.

Each job in this category is a distinct service with a distinct performance obligation to the customer. Revenue is recognized at the completion of each job. Variable consideration consists of pre-invoice discounts and post-invoice discounts. Pre-invoice discounts are given in the form of coupons or price concessions. Post-invoice discounts consist of credit memos generally granted to resolve customer service issues. Variable consideration is estimated based on historical activity and recorded at the time service is completed.

Water Restoration Services involve the remediation of water and humidity after a flood. These services are provided to both commercial and residential customers. The duration of services provided in this category generally ranges from 3 to 5 days. There are

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no significant warranties or on-going obligations to the customer once service has been completed. The majority of these services are paid by the customer’s insurance company. Variable consideration relates primarily to allowances taken by insurance companies upon payment. Variable consideration is estimated based on historical activity and recorded at the time service is completed.

For both short-term core services and water restoration services, Roto-Rooter satisfies its performance obligation at a point in time. The services provided generally involve fixing plumbing, drainage or flood-related issues at the customer’s property. At the time service is complete, the customer acknowledges its obligation to pay for service and its satisfaction with the service performed. This provides evidence that the customer has accepted the service and Roto-Rooter is now entitled to payment. As such, Roto-Rooter recognizes revenue for these services upon completion of the job and receipt of customer acknowledgement. Roto-Rooter’s performance obligations for short-term core services and water restoration services relate to contracts with an expected duration of less than a year. Therefore, Roto-Rooter has elected to apply the optional exception provided in ASC 606 and is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. Roto-Rooter does not have significant unsatisfied or partially unsatisfied performance obligations at the time of initial revenue recognition for short-term core or water restoration services.

Roto-Rooter owns the rights to certain territories and contracts with independent third-parties to operate the territory under Roto-Rooter’s registered trademarks (“independent contractors”). Such contracts are for a specified term but cancellable by either party without penalty with 90 days’ advance notice. Under the terms of these arrangements, Roto-Rooter provides certain back office support and advertising along with a limited license to use Roto-Rooter’s registered trademarks. The independent contractor is responsible for all day-to-day management of the business including staffing decisions and pricing of services provided. All performance obligations of Roto-Rooter cease at the termination of the arrangement.

Independent contractors pay Roto-Rooter a standard fee calculated as a percentage of their cash collection from weekly sales. The primary value for the independent contractors under these arrangements is the right to use Roto-Rooter’s registered trademarks. Roto-Rooter recognizes revenue from independent contractors over-time (weekly) as the independent contractor’s labor sales are completed and payment from customers are received. Payment from independent contractors is also received on a weekly basis. The use of Roto-Rooter’s registered trademarks and advertising provides immediate value to the independent contractor as a result of Roto-Rooter’s nationally recognized brand. Therefore, over-time recognition provides the most faithful depiction of the transfer of services as the customer simultaneously receives and consumes the benefits provided. There is no significant variable consideration related to these arrangements.

Roto-Rooter has licensed the rights to operate under Roto-Rooter’s registered trademarks in other territories to franchisees. Each such contract is for a 10 year term but cancellable by Roto-Rooter for cause with 60 day advance notice without penalty. The franchisee may cancel the contract for any reason with 60 days advance notice without penalty. Under the terms of the contract, Roto-Rooter provides national advertising and consultation on various aspects of operating a Roto-Rooter business along with the right to use Roto-Rooter’s registered trademarks. The franchisee is responsible for all day-to-day management of the business including staffing decisions, pricing of services provided and local advertising spend and placement. All performance obligations of Roto-Rooter cease at the termination of the arrangement.

Franchisees pay Roto-Rooter a standard monthly fee based on the population within the franchise territory. The standard fee is revised on a yearly basis based on changes in the Consumer Price Index for All Urban Consumers. The primary value for the franchisees under this arrangement is the right to use Roto-Rooter’s registered trademarks. Roto-Rooter recognizes revenue from franchisees over-time (monthly). Payment from franchisees is also received on a monthly basis. The use of Roto-Rooter’s registered trademarks and advertising provides immediate value to the franchisees as a result of Roto-Rooter’s nationally recognized brand. Therefore, over-time recognition provides the most faithful depiction of the transfer of services as the customer simultaneously receives and consumes the benefits provided. There is no significant variable consideration related to these arrangements.

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The composition of disaggregated revenue for the first quarter is as follows (in thousands):

	March 31,
	2026			2025
Drain cleaning	$	59,735		$	59,542
Plumbing		49,584			46,059
Excavation		63,510			64,239
Other		229			186
Subtotal - short term core		173,058			170,026
Water restoration		47,848			54,163
Independent contractors		17,765			18,362
Franchisee fees		1,521			1,424
Other		5,089			4,895
Gross revenue		245,281			248,870
Implicit price concessions and credit memos		(7,786)			(9,327)
Net revenue	$	237,495		$	239,543

3.    Segments

Our segments include the VITAS segment and the Roto-Rooter segment, which comprise the structure used by our President and Chief Executive Officer, who has been determined to be our Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. Relative contributions of each segment to service revenues and sales for the first quarter of 2026 were 64% and 36%, respectively, compared to the first quarter of 2025 which were 63% and 37%, respectively. The vast majority of our service revenues and sales from continuing operations are generated from business within the United States. Service revenues and sales by business segment are shown in Note 2.

The reportable segments have been defined along service lines, which is consistent with the way the businesses are managed. In determining reportable segments, the RRSC and RRC operating units of the Roto-Rooter segment have been aggregated on the basis of possessing similar operating and economic characteristics. The characteristics of these operating segments and the basis for aggregation are reviewed annually.

We report corporate administrative expenses and unallocated investing and financing income and expense not directly related to either segment as “Corporate”. Corporate administrative expense includes the stewardship, accounting and reporting, legal, tax and other costs of operating a publicly held corporation. Corporate investing and financing income and expenses include the costs and income associated with corporate debt and investment arrangements.

Our CODM evaluates the segments’ operating performance based mainly on income/(loss) from operations. For each segment, the CODM compares segment income/(loss) from operations in the annual budgeting and monthly forecasting process to actual results. The CODM considers variances on a monthly basis for evaluating performance of each segment and making decisions about allocating resources to each segment.

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Segment data for the three months ended March 31, 2026 are as follows (in thousands):

								Reportable						Chemed
		VITAS			Roto-Rooter			Segments			Corporate			Consolidated
Service revenues and sales		$	420,018		$	237,495		$	657,513		$	-		$	657,513
Cost of services provided and goods sold
(excluding depreciation)
Wages			244,105			81,672			325,777			-			325,777
Patient care expense			45,845			-			45,845			-			45,845
Other expenses			35,517			34,610			70,127			-			70,127
Total cost of services provided and goods sold			325,467			116,282			441,749			-			441,749
Selling, general and administrative expense
Wages			17,236			22,885			40,121			4,680			44,801
Advertising			-			22,040			22,040			-			22,040
Stock compensation			-			-			-			10,754			10,754
Other expenses			8,873			23,004			31,877			4,849			36,726
Total selling, general and administrative expense			26,109			67,929			94,038			20,283			114,321
Depreciation			5,912			8,379			14,291			12			14,303
Amortization			26			2,544			2,570			-			2,570
Other operating (income)/expense			52			(60)			(8)			-			(8)
Total costs and expenses			357,566			195,074			552,640			20,295			572,935
Income/(loss) from operations			62,452			42,421			104,873			(20,295)			84,578
Interest expense			(50)			(136)			(186)			(326)			(512)
Intercompany interest income/(expense)			6,238			4,512			10,750			(10,750)			-
Other income - net			95			15			110			4,664			4,774
Income/(expense) before income taxes			68,735			46,812			115,547			(26,707)			88,840
Income taxes			(16,528)			(11,028)			(27,556)			5,018			(22,538)
Net income/(loss)		$	52,207		$	35,784		$	87,991		$	(21,689)		$	66,302
Additions to long-lived assets		$	6,743		$	31,095		$	37,838		$	21		$	37,859

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Segment data for the three months ended March 31, 2025 are as follows (in thousands):

								Reportable						Chemed
		VITAS			Roto-Rooter			Segments			Corporate			Consolidated
Service revenues and sales		$	407,400		$	239,543		$	646,943		$	-		$	646,943
Cost of services provided and goods sold
(excluding depreciation)
Wages			235,173			77,471			312,644			-			312,644
Patient care expense			40,379			-			40,379			-			40,379
Other expenses			37,255			40,252			77,507			-			77,507
Total cost of services provided and goods sold			312,807			117,723			430,530			-			430,530
Selling, general and administrative expense
Wages			17,527			21,187			38,714			4,731			43,445
Advertising			-			18,169			18,169			-			18,169
Stock compensation			-			-			-			11,748			11,748
Other expenses/(income)			9,011			23,293			32,304			(79)			32,225
Total selling, general and administrative expense			26,538			62,649			89,187			16,400			105,587
Depreciation			5,196			8,237			13,433			12			13,445
Amortization			26			2,546			2,572			-			2,572
Other operating expense/(income)			64			(13)			51			-			51
Total costs and expenses			344,631			191,142			535,773			16,412			552,185
Income/(loss) from operations			62,769			48,401			111,170			(16,412)			94,758
Interest expense			(48)			(132)			(180)			(149)			(329)
Intercompany interest income/(expense)			5,296			3,930			9,226			(9,226)			-
Other income - net			48			10			58			1,187			1,245
Income/(expense) before income taxes			68,065			52,209			120,274			(24,600)			95,674
Income taxes			(18,035)			(12,265)			(30,300)			6,383			(23,917)
Net income/(loss)		$	50,030		$	39,944		$	89,974		$	(18,217)		$	71,757
Additions to long-lived assets		$	9,476		$	4,289		$	13,765		$	-		$	13,765

Identifiable assets by segment are as follows (in thousands):

	March 31,			December 31,
	2026			2025
VITAS	$	840,103		$	784,927
Roto-Rooter		554,789			528,587
Reportable segments		1,394,892			1,313,514
Corporate		140,923			224,675
Chemed consolidated	$	1,535,815		$	1,538,189

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4.    Earnings per Share

Earnings per share (“EPS”) are computed using the weighted average number of shares of capital stock outstanding. Earnings and diluted earnings per share are computed as follows (in thousands, except per share data):

				Net Income
For the Three Months Ended March 31,			Income			Shares		Earnings per Share
2026
	Earnings		$	66,302		13,675		$	4.85
	Dilutive stock options			-		-
	Nonvested stock awards			-		15
	Diluted earnings		$	66,302		13,690		$	4.84
2025
	Earnings		$	71,757		14,622		$	4.91
	Dilutive stock options			-		92
	Nonvested stock awards			-		50
	Diluted earnings		$	71,757		14,764		$	4.86

For the three months ended March 31, 2026, there were 1.3 million stock options excluded from the computation of dilutive earnings per share because they would have been anti-dilutive.

For the three months ended March 31, 2025, there were 599,000 million stock options excluded from the computation of dilutive earnings per share because they would have been anti-dilutive.

5.    Long-Term Debt and Lines of Credit

On April 10, 2026, we replaced our existing credit facility (the “Prior Credit Agreement”) with a sixth amended and restated Credit Agreement (“Credit Agreement”). Terms of the Credit Agreement consist of a five-year $450.0 million revolving credit facility including $100.0 million for letters of credit. The interest on this Credit Agreement has a floating interest rate that is the secured overnight financing rate (“SOFR”) plus an additional tiered rate which varies based on our current leverage ratio. As of March 31, 2026, the interest rate is SOFR plus 100 basis points. The Credit Agreement includes an expansion feature that provides the Company the opportunity to increase its revolver by an additional $250.0 million.

The long-term debt outstanding under the Prior Credit Agreement as of March 31, 2026 is $91.2 million.

The Credit Agreement contains the following quarterly financial covenants:

Description		Requirement
Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA)		< 3.50 to 1.00
Interest Coverage Ratio (Consolidated Adj. EBITDA/Consolidated Interest Expense)		> 3.00 to 1.00

We were in compliance with all debt covenants of the Prior Credit Agreement as of March 31, 2026. We have issued $45.5 million in standby letters of credit as of March 31, 2026, mainly for insurance purposes. Issued letters of credit reduce our available credit under the Prior Credit Agreement. As of March 31, 2026, we had approximately $313.3 million of unused lines of credit available and eligible to be drawn down under the Prior Credit Agreement.

‎

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6.    Other Income – Net

Other income – net comprises the following (in thousands): 

	Three months ended March 31,
	2026			2025
Market value adjustment on assets held in deferred compensation trust	$	3,885		$	(830)
Interest income		890			2,076
Other		(1)			(1)
Total other income - net	$	4,774		$	1,245

7.    Leases

Chemed and each of its operating subsidiaries are service companies. As such, real estate leases comprise the largest lease obligation (and conversely, right of use asset) in our lease portfolio. VITAS has leased office space, as well as space for inpatient units (“IPUs”) and/or contract beds within hospitals. Roto-Rooter mainly has leased office space. Our leases have remaining terms of under 1 year to 12 years, some of which include options to extend the lease for up to 5 years, and some of which include options to terminate the lease within 1 year.

Roto-Rooter purchases equipment and leases it to certain of its independent contractors. We analyzed these leases in accordance with ASC 842 and determined they are operating leases. As a result, Roto-Rooter capitalizes the equipment underlying these leases, depreciates the equipment and recognizes rental income.

We do not currently have any finance leases, therefore all lease information disclosed is related to operating leases.

The components of balance sheet information related to leases were as follows:

	March 31,			‎December 31,
	2026			2025
Assets
Operating lease assets	$	133,597		$	131,151
Liabilities
Current operating leases		41,286			40,892
Noncurrent operating leases		104,448			102,867
Total operating lease liabilities	$	145,734		$	143,759

The components of lease expense for the first quarter are as follows (in thousands):

	Three months ended March 31,
	2026			2025
Lease Expense (a)
Operating lease expense	$	17,212		$	16,875
Sublease income		(31)			(36)
Net lease expense	$	17,181		$	16,839

(a)Includes short-term leases and variable lease costs, which are immaterial. Included in both cost of services provided and goods sold and selling, general and administrative expenses.

‎

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The components of cash flow information related to leases were as follows:

	Three months ended March 31,
	2026			2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from leases	$	14,187		$	13,571
Leased assets obtained in exchange for new operating lease liabilities	$	14,715		$	15,988

Weighted Average Remaining Lease Term at March 31, 2026
Operating leases		4.72	years

Weighted Average Discount Rate at March 31, 2026
Operating leases		4.19	%

Maturity of Operating Lease Liabilities (in thousands)
2026				$	38,496
2027					38,384
2028					30,252
2029					24,001
2030					15,954
Thereafter					15,304
Total lease payments				$	162,391
Less: interest					(16,657)
Total liability recognized on the balance sheet				$	145,734

For leases commencing prior to April 2019, minimum rental payments exclude payments to landlords for real estate taxes and common area maintenance. Operating lease payments include $10.6 million related to extended lease terms that are reasonably certain of being exercised and exclude $4.9 million of lease payments for leases signed but not yet commenced.

8.    Stock-Based Compensation Plans

On February 13, 2026, the Compensation/Incentive Committee of the Board of Directors (“CIC”) granted 8,400 Performance Stock Units (“PSUs”) that vest contingent upon the achievement of certain total shareholder return (“TSR”) targets as compared to the TSR of a group of peer companies for the three-year period ending December 31, 2028, the date at which such awards vest. The cumulative compensation cost of the TSR-based PSU award to be recorded over the three-year service period is $5.2 million.

On February 13, 2026, the CIC also granted 8,400 PSUs that vest contingent upon the achievement of certain earnings per share (“EPS”) targets for the three-year period ending December 31, 2028. At the end of each reporting period, the Company estimates the number of shares that it believes will ultimately be earned and records the corresponding expense over the service period of the award. We currently estimate the cumulative compensation cost of the EPS-based PSUs to be recorded over the three-year service period is $3.9 million.

9.    Retirement Plans

All of the Company’s plans that provide retirement and similar benefits are defined contribution plans. These expenses include the impact of market gains and losses on assets held in deferred compensation plans and are recorded in selling, general and administrative expenses. Net gains for the Company’s retirement and profit-sharing plans, excess benefit plans and other similar plans are as follows (in thousands):

Three months ended March 31,
2026			2025
$	9,924		$	5,359

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10.    Legal and Regulatory Matters

The VITAS segment of the Company’s business operates in a heavily-regulated industry. As a result, the Company is subjected to inquiries and investigations by various government agencies, which can result in penalties including repayment obligations, funding withholding, or debarment, as well as to lawsuits, including qui tam actions. The following describes the material lawsuits and investigations of which the Company is currently aware.

Regulatory Matters and Litigation

VITAS was one of a group of hospice providers selected by the Office of the Inspector General’s (“OIG”) Office of Audit Services (“OAS”) for inclusion in an audit of the provision of elevated level-of-care hospice services, which reviewed 100 out of a total population of 50,850 inpatient and continuous care claims.

On August 29, 2022, VITAS received a demand letter from its Medicare Administrative Contractor (“MAC”) seeking repayment of $50.3 million. VITAS appealed the overpayment decision and deposited $50.3 million under the “Immediate Recoupment” process.

On February 3, 2025, an Administrative Law Judge (“ALJ”) ruled that VITAS’ care met Medicare’s hospice standards for the applicable higher level of care as originally billed for all but one of the claims appealed, and therefore VITAS was entitled to receive payment for all such claims. With respect to the one claim that the judge did not fully side with VITAS, the judge found that four of the five days billed met the applicable standard and only one day did not.

In a letter dated March 18, 2025, VITAS’ MAC provided notice that due to the ALJ’s ruling the total overpayment amount was reduced to a de minimis amount, and on April 1, 2025 refunded VITAS all previously unreturned deposited amounts in excess of that dollar figure.

As a result of the previously disclosed cybersecurity incident and data breach on October 24, 2025, multiple class action lawsuits were filed against VITAS alleging various causes of action and seeking damages resulting from the breach. All outstanding cases have been consolidated and the Company has reached an agreement to settle them for a non-material amount fully covered by VITAS’ cybersecurity insurance.

Regardless of the outcome of the preceding matters, dealing with the various regulatory agencies and opposing parties can adversely affect us through defense costs, potential payments, withholding of governmental funding, diversion of management time, and related publicity.

11.    Concentration of Risk

As of March 31, 2026, and December 31, 2025, approximately 65% and 58%, respectively, of VITAS’ total accounts receivable balance were from Medicare and 29% and 34% respectively, of VITAS’ total accounts receivable balance were due from various state Medicaid or managed Medicaid programs. Combined accounts receivable from Medicare, Medicaid, and managed Medicaid represent approximately 81% of the consolidated net accounts receivable in the accompanying consolidated balance sheets as of March 31, 2026.

VITAS has a pharmacy services contract with one service provider for specified pharmacy services related to its hospice operations. Similarly, VITAS obtains the majority of its medical supplies from a single vendor. A large majority of VITAS’ pharmaceutical and medical supplies purchases are from these vendors. The pharmaceutical and medical supplies purchased by VITAS are available through many providers in the United States. However, a disruption from VITAS’ main service providers could adversely impact VITAS’ operations, including temporary logistical challenges and increased cost associated with getting medication and medical supplies to our patients.

12.    Cash Overdrafts and Cash Equivalents

There is $10.5 million in cash overdrafts payable included in accounts payable at March 31, 2026. There were $11.0 million of cash overdrafts payable included in accounts payable at December 31, 2025.

From time to time throughout the year, we invest excess cash in money market funds with major commercial banks. We closely monitor the creditworthiness of the institutions with which we invest our overnight funds. In 2023, Chemed began investing excess cash in money market funds holding US Treasuries. Deposits and withdrawals are made daily, based on the Company’s excess cash balance. There are no penalties associated with withdrawals. The accounts bear interest at a normal market rate.

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13.    Financial Instruments

FASB’s authoritative guidance on fair value measurements defines a hierarchy which prioritizes the inputs in fair value measurements. Level 1 measurements are measurements using quoted prices in active markets for identical assets or liabilities. Level 2 measurements use significant other observable inputs. Level 3 measurements are measurements using significant unobservable inputs which require a company to develop its own assumptions. In recording the fair value of assets and liabilities, companies must use the most reliable measurement available.

The following shows the carrying value, fair value, and the hierarchy for our financial instruments as of March 31, 2026 (in thousands):

						Fair Value Measure
			Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Investments of deferred compensation plans held in trust		$	143,778		$	143,778		$	-		$	-
Cash equivalents			10,125			10,125			-			-

The following shows the carrying value, fair value and the hierarchy for our financial instruments as of December 31, 2025 (in thousands):

						Fair Value Measure
			Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Investments of deferred compensation plans held in trust		$	140,347		$	140,347		$	-		$	-
Cash equivalents			94,273			94,273			-			-

For cash, accounts receivable and accounts payable, the carrying amount is a reasonable estimate of fair value because of the liquidity and short-term nature of these instruments. As further described in Note 5, our outstanding long-term debt has a floating interest rate that is reset at short-term intervals, generally 30 or 60 days. The interest rate we pay also includes an additional amount based on our current leverage ratio. As such, we believe our borrowings reflect significant nonperformance risks, mainly credit risk. Based on these factors, we believe the fair value of our long-term debt approximates its carrying value.

14.    Capital Stock Repurchase Plan Transactions

We repurchased the following capital stock:

		Three months ended March 31,
		2026			2025
Total cost of repurchased shares (in thousands)		$	197,682		$	29,756
Shares repurchased			500,000			50,000
Weighted average price per share		$	395.36		$	595.15

In February 2026, the Board of Directors authorized $300.0 million for additional stock repurchases under Chemed’s existing share repurchase program. We currently have $229.6 million of authorization remaining under this share repurchase plan.

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15.    Acquisitions

On March 31, 2026, Roto-Rooter completed two acquisitions, for one franchise in Texas for $17.36 million in cash and one franchise in California for $3.25 million in cash.

On January 3, 2025, Roto-Rooter completed the acquisition of one franchise in Michigan for $225,000 in cash.

Revenue and net income from acquisitions made in 2026 and 2025 are not material.

Goodwill is assessed for impairment on a yearly basis as of October 1. The primary factor that contributed to the purchase price resulting in the recognition of goodwill is operational efficiencies expected as a result of integrating the operations of the Covenant locations into the existing VITAS organizational structure. All goodwill recognized is deductible for tax purposes.

Shown below is movement in Goodwill (in thousands):

	VITAS			Roto-Rooter			Total
Balance at December 31, 2025	$	404,866		$	262,133		$	666,999
Business combinations		-			20,520			20,520
Foreign currency adjustments		-			(18)			(18)
Balance at March 31, 2026	$	404,866		$	282,635		$	687,501

16. Recent Accounting Standards

In November 2024, the FASB issued Accounting Standards Update “ASU 2024-03 – Disaggregation of Income Statement Expenses”. The guidance provides enhanced disclosures about commonly presented expense categories such as cost of sales, selling, general and administrative expenses and research and development. The objective is to provide investors with a better understanding of the entity’s performance, assess potential future cash flows and comparability with other entities. The guidance is effective for fiscal periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently analyzing the impact of the ASU on the current footnote disclosures.

In September 2025, the FASB issued Accounting Standards Update “ASU 2025-06 – Intangibles – Goodwill and Other – Internal – Use Software”. The guidance seeks to modernize the accounting guidance for the costs to develop software for internal use. The guidance amends the existing standard to better align with current software development methods. Entities will start capitalizing eligible costs when management has authorized and committed to funding software projects and when it is probable that the projects will be completed and used as intended. The guidance is effective for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods. The Company is currently analyzing the impact of the ASU on the consolidated financial statements.

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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Executive Summary

We operate through our two wholly-owned subsidiaries, VITAS Healthcare Corporation and Roto-Rooter Group, Inc. VITAS focuses on hospice care that helps make terminally ill patients’ final days as comfortable as possible. Through its teams of doctors, nurses, home health aides, social workers, clergy and volunteers, VITAS provides direct medical services to patients, as well as spiritual and emotional counseling to both patients and their families. Roto-Rooter’s services are focused on providing plumbing, drain cleaning, excavation, water restoration, and other related services to both residential and commercial customers. Through its network of company-owned branches, independent contractors and franchisees, Roto-Rooter offers plumbing and drain cleaning service to over 90% of the U.S. population.

The vast majority of the Company’s operations are located in the United States. As both operations are service companies, our employees are the most critical resource of the Company. We have very little exposure related to customers, vendors, or employees in other regions of the world. We continue to monitor macroeconomic trends and uncertainties such as inflation, the effects of recently implemented tariffs, and the potential imposition of modified or additional tariffs, as well as the impact of the war with Iran on fuel prices, which may have adverse effects on net sales and profitability. Based on preliminary analysis of the potential effects of the announced tariffs and these other factors, we do not expect a material negative effect on our net sales or profitability for the remainder of fiscal year 2026. However, we are continuing to evaluate these factors and their potential effects as well as our ability to potentially offset all or a portion of cost increases through pricing actions and cost savings efforts for fiscal year 2027 planning. Economic pressures including the challenges of high inflation and the effects of increased tariffs and the impact of the war with Iran may negatively affect our net sales and profitability in the future.

The following is a summary of the key operating results (in thousands except per share amounts):

	Three months ended March 31,
	2026			2025
Service revenues and sales	$	657,513		$	646,943
Net income	$	66,302		$	71,757
Diluted EPS	$	4.84		$	4.86
Adjusted net income	$	77,383		$	83,074
Adjusted diluted EPS	$	5.65		$	5.63
Adjusted EBITDA	$	116,257		$	121,692
Adjusted EBITDA as a % of revenue		17.7	%		18.8	%

Adjusted net income, adjusted diluted EPS, earnings before interest, taxes and depreciation and amortization (“EBITDA”), Adjusted EBITDA and Adjusted EBITDA as a percent of revenue are not measures derived in accordance with US GAAP. We provide non-GAAP measures to help readers evaluate our operating results and to compare our operating performance with that of similar companies that have different capital structures. Our non-GAAP measures should not be considered in isolation or as a substitute for comparable measures presented in accordance with GAAP. A reconciliation of our non-GAAP measures is presented on pages 28-29.

For the three months ended March 31, 2026, the increase in consolidated service revenues and sales was driven by a 3.1% increase at VITAS offset by a 0.9% decrease at Roto-Rooter. The increase in service revenues at VITAS is comprised primarily of 2.2% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.6%. Acuity mix shift negatively impacted revenue growth by 120-basis points in the quarter when compared to the prior year revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes decreased revenue growth by 47-basis points.

The decline in service revenues at Roto-Rooter was driven by a 1.9% decrease in commercial revenue and a 1.5% decrease in residential revenue.

Financial Condition

Liquidity and Capital Resources

Material changes in the balance sheet accounts from December 31, 2025 to March 31, 2026 include the following:

A $32.9 million increase in accounts receivable due to the timing of payments. Other significant changes in our accounts receivable balances are typically driven by the timing of payments received from the Federal government at our VITAS subsidiary. We typically receive a payment in excess of $62.0 million from the Federal government for hospice services

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every other Friday. The timing of a period end will have a significant impact on the accounts receivable at VITAS. These changes generally normalize over a two-year period, as cash flow variations in one year are offset in the following year.

A $20.5 million increase in goodwill due to the two acquisitions at Roto-Rooter.

A $23.3 million increase in income taxes payable due to timing of payments.

A $91.2 million increase in long-term debt due primarily to the acquisitions and stock repurchases.

A $201.1 million increase in treasury stock due to stock repurchases.

Net cash provided by operating activities increased $55.5 million from March 31, 2025 to March 31, 2026. See the Unaudited Consolidated Statements of Cash Flow on page 5 for the detail components making up the change.

Management continually evaluates cash utilization alternatives, including share repurchase, debt repurchase, acquisitions and increased dividends to determine the most beneficial use of available capital resources.

We anticipate that our operating income and cash flows will be sufficient to operate our business and meet any commitments for the foreseeable future.

Commitments and Contingencies

On April 10, 2026, we replaced the Prior Credit Agreement with a sixth amended and restated Credit Agreement. Terms of the Credit Agreement consist of a five-year $450.0 million revolving credit facility including $100.0 million for letters of credit. The interest on this Credit Agreement has a floating interest rate that is generally the secured overnight financing rate (“SOFR”) plus an additional tiered rate which varies based on our current leverage ratio. As of March 31, 2026, the interest rate is SOFR plus 100 basis points. The Credit Agreement includes an expansion feature that provides the Company the opportunity to increase its revolver by an additional $250.0 million.

We have issued $45.5 million in standby letters of credit as of March 31, 2026 under the Prior Credit Agreement, which has continued under the Credit Agreement mainly for insurance purposes. Issued letters of credit reduce our available credit under the Credit Agreement. As of March 31, 2026, we have approximately $313.3 million of unused lines of credit available and are eligible to be drawn down under the Prior Credit Agreement. Management believes its liquidity and sources of capital are satisfactory for the Company’s needs in the foreseeable future.

Collectively, the terms of the Credit Agreement require us to meet various financial covenants, to be tested quarterly. We were in compliance with all financial and other debt covenants as of March 31, 2026 under the Prior Credit Agreement and anticipate remaining in compliance under the Credit Agreement throughout the foreseeable future.

We are subject to various lawsuits and claims in the normal course of our business. In addition, we periodically receive communications from governmental and regulatory agencies concerning compliance with Medicare and Medicaid billing requirements at our VITAS subsidiary. We establish reserves for specific, uninsured liabilities in connection with regulatory and legal action that we deem to be probable and estimable. We disclose the existence of regulatory and legal actions when we believe it is reasonably possible that a loss could occur in connection with the specific action. In most instances, we are unable to make a reasonable estimate of any reasonably possible liability due to the uncertainty of the outcome and stage of litigation. We record legal fees associated with legal and regulatory actions as the costs are incurred.

See Note 10 in the Notes to the Unaudited Consolidated Financial Statements in Item 1 above for a description of current material legal matters.

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-22-

Results of Operations

Three months ended March 31, 2026 versus 2025 - Consolidated Results

Our service revenues and sales for the first quarter of 2026 increased 1.6% versus services and sales revenues for the first quarter of 2025. Of this increase, a $12.6 million increase was attributable to VITAS, offset by a $2.0 million decrease at Roto-Rooter. The following chart shows the components of revenue by operating segment (in thousands):

		Three months ended March 31,						Increase/(Decrease)
		2026			2025			Percent
VITAS
Routine homecare		$	371,091		$	351,566		5.6
General inpatient			35,925			34,022		5.6
Continuous care			18,133			24,637		(26.4)
Other			5,578			5,344		4.4
Subtotal			430,727			415,569		3.6
Medicare cap adjustment			(2,375)			(2,325)		(2.2)
Room and board - net			(3,257)			(3,525)		7.6
Implicit price concessions			(5,077)			(2,319)		(118.9)
Net revenue		$	420,018		$	407,400		3.1
Roto-Rooter
Drain cleaning		$	59,735		$	59,542		0.3
Plumbing			49,584			46,059		7.7
Excavation			63,510			64,239		(1.1)
Other			229			186		23.1
Subtotal - short term core			173,058			170,026		1.8
Water restoration			47,848			54,163		(11.7)
Independent contractors			17,765			18,362		(3.3)
Outside franchisee fees			1,521			1,424		6.8
Other			5,089			4,895		4.0
Gross revenue			245,281			248,870		(1.4)
Implicit price concessions			(7,786)			(9,327)		16.5
Net revenue			237,495			239,543		(0.9)
Total Revenues		$	657,513		$	646,943		1.6

Days of care at VITAS during the quarters were as follows:

	Three months ended March 31,				Increase/(Decrease)
	2026		2025		Percent
Routine homecare	1,691,619		1,632,569		3.6
Nursing home	294,818		307,108		(4.0)
Respite	10,875		9,995		8.8
Subtotal routine homecare and respite	1,997,312		1,949,672		2.4
General inpatient	30,474		29,704		2.6
Continuous care	17,288		22,620		(23.6)
Total days of care	2,045,074		2,001,996		2.2

The increase in service revenues at VITAS is comprised primarily of 2.2% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.6%. Acuity mix shift negatively impacted revenue growth by 120-basis points in the quarter when compared to the prior year revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes decreased revenue growth by 47-basis points.

The increase in plumbing revenues for the first quarter of 2026 versus 2025 is attributable to a 14.1% increase in price and service mix shift offset by a 6.4% decrease in job count. The increase in drain cleaning revenues for the first quarter of 2026 versus 2025 is attributable to a 12.3% increase in price and service mix offset by a 12.0% decrease in job count. Excavation revenues decreased

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1.1%, water restoration revenues decreased 11.7%, and contractors operations decreased 3.3%. Implicit price concessions and credit memos decreased 16.5% mainly related to the water restoration business.

The consolidated gross margin was 32.8% in the first quarter of 2026 as compared with 33.5% in the first quarter of 2025. On a segment basis, VITAS’ gross margin was 22.5% in the first quarter of 2026 as compared with 23.2% in the first quarter of 2025. The decline is related to an increase in variable patient care expenses in the first quarter of 2026 compared to the first quarter of 2025. The Roto-Rooter segment’s gross margin was 51.0% for the first quarter of 2026 which was essentially flat with the first quarter of 2025.

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

	Three months ended March 31,
	2026			2025
SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation trusts	$	108,931		$	103,760
Impact of market value adjustments related to assets held in deferred compensation trusts		3,885			(830)
Long-term incentive compensation		1,505			2,657
Total SG&A expenses	$	114,321		$	105,587

SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation trusts for the first quarter of 2026 were up 5.0% when compared to the first quarter of 2025. $3.9 million of this increase was the result of increased advertising at Roto-Rooter in the first quarter of 2026 compared to the first quarter of 2025.

Other income – net comprise (in thousands):

	Three months ended March 31,
	2026			2025
Market value adjustment on assets held in deferred compensation trusts	$	3,885		$	(830)
Interest income		890			2,076
Other		(1)			(1)
Total other income - net	$	4,774		$	1,245

We invest excess cash in money market funds with major commercial banks. We closely monitor the creditworthiness of the institutions with which we invest our overnight funds. Chemed invests excess cash in money market funds holding US Treasuries. Deposits and withdrawals are made daily, based on the Company’s excess cash balance. There are no penalties associated with withdrawals. The accounts bear interest at a normal market rate.

Our effective tax rate reconciliation is as follows (in thousands):

		Three months ended March 31,
		2026				2025
Income tax provision calculated at the statutory federal rate		$	18,656			$	20,092
State and local income taxes, less federal income tax effect			2,716				4,187
Nondeductible expenses:
Stock compensation tax expense/(benefit)			56				(463)
Other--net			1,110				101
Income tax provision		$	22,538			$	23,917
Effective tax rate			25.4	%			25.0	%

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-24-

Net income for both periods included the following after-tax items/adjustments that (reduced) or increased after-tax earnings (in thousands):

	Three months ended March 31,
	2026			2025
Roto-Rooter	$			$
Amortization of reacquired franchise agreements		(1,804)			(1,806)
Acquisition expense		(128)			-
Corporate
Stock option expense		(7,750)			(7,621)
Long-term incentive compensation		(1,343)			(2,353)
Excess tax (expense)/benefit on stock compensation		(56)			463
Total	$	(11,081)		$	(11,317)

Three months ended March 31, 2026 versus 2025 - Segment Results

Net income/(loss) for the first quarter of 2026 versus the first quarter of 2025 by segment (in thousands):

	Three months ended March 31,
	2026			2025
VITAS	$	52,207		$	50,030
Roto-Rooter		35,784			39,944
Corporate		(21,689)			(18,217)
	$	66,302		$	71,757

After-tax earnings as a percent of revenue at VITAS in the first quarter of 2026 was 12.4% as compared to 12.3% in the first quarter of 2025.

Roto-Rooter’s net income was negatively impacted in the first quarter of 2026 compared to the first quarter of 2025 due mainly to an increase in marketing expenses. Roto-Rooter’s after-tax earnings as a percent of revenue in the first quarter of 2026 was 15.1%, as compared to 16.7% in the first quarter of 2025.

After-tax Corporate expenses for the first quarter of 2026 increased 19.1% when compared to the first quarter in 2025 due primarily to a $1.5 million increase in intercompany interest expense, a lower tax benefit related to reduced stock option exercises and a $1.2 million decrease in interest income offset by an $881,000 decrease in stock-based compensation.

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-25-

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2026
(in thousands)(unaudited)
										Chemed
	VITAS			Roto-Rooter			Corporate			Consolidated
2026 (a)
Service revenues and sales	$	420,018		$	237,495		$	-		$	657,513
Cost of services provided and goods sold		325,467			116,282			-			441,749
Selling, general and administrative expenses		26,109			67,929			20,283			114,321
Depreciation		5,912			8,379			12			14,303
Amortization		26			2,544			-			2,570
Other operating (income)/expense		52			(60)			-			(8)
Total costs and expenses		357,566			195,074			20,295			572,935
Income/(loss) from operations		62,452			42,421			(20,295)			84,578
Interest expense		(50)			(136)			(326)			(512)
Intercompany interest income/(expense)		6,238			4,512			(10,750)			-
Other income—net		95			15			4,664			4,774
Income/(expense) before income taxes		68,735			46,812			(26,707)			88,840
Income taxes		(16,528)			(11,028)			5,018			(22,538)
Net income/(loss)	$	52,207		$	35,784		$	(21,689)		$	66,302
(a) The following amounts are included in net income (in thousands):
										Chemed
	VITAS			Roto-Rooter			Corporate			Consolidated
Pretax benefit/(cost):
Stock option expense	$	-		$	-		$	(9,249)		$	(9,249)
Amortization of reacquired franchise agreements		-			(2,352)			-			(2,352)
Long-term incentive compensation		-			-			(1,505)			(1,505)
Acquisition expense		-			(167)			-			(167)
Total	$	-		$	(2,519)		$	(10,754)		$	(13,273)
										Chemed
	VITAS			Roto-Rooter			Corporate			Consolidated
After-tax benefit/(cost):
Stock option expense	$	-		$	-		$	(7,750)		$	(7,750)
Amortization of reacquired franchise agreements		-			(1,804)			-			(1,804)
Long-term incentive compensation		-			-			(1,343)			(1,343)
Acquisition expense		-			(128)			-			(128)
Excess tax expense on stock compensation		-			-			(56)			(56)
Total	$	-		$	(1,932)		$	(9,149)		$	(11,081)

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-26-

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2025
(in thousands)(unaudited)
										Chemed
	VITAS			Roto-Rooter			Corporate			Consolidated
2025 (a)
Service revenues and sales	$	407,400		$	239,543		$	-		$	646,943
Cost of services provided and goods sold		312,807			117,723			-			430,530
Selling, general and administrative expenses		26,538			62,649			16,400			105,587
Depreciation		5,196			8,237			12			13,445
Amortization		26			2,546			-			2,572
Other operating expense/(income)		64			(13)			-			51
Total costs and expenses		344,631			191,142			16,412			552,185
Income/(loss) from operations		62,769			48,401			(16,412)			94,758
Interest expense		(48)			(132)			(149)			(329)
Intercompany interest income/(expense)		5,296			3,930			(9,226)			-
Other income—net		48			10			1,187			1,245
Income/(expense) before income taxes		68,065			52,209			(24,600)			95,674
Income taxes		(18,035)			(12,265)			6,383			(23,917)
Net income/(loss)	$	50,030		$	39,944		$	(18,217)		$	71,757
(a) The following amounts are included in net income (in thousands):
										Chemed
	VITAS			Roto-Rooter			Corporate			Consolidated
Pretax benefit/(cost):
Stock option expense	$	-		$	-		$	(9,091)		$	(9,091)
Long-term incentive compensation		-			-			(2,657)			(2,657)
Amortization of reacquired franchise agreements		-			(2,352)			-			(2,352)
Total	$	-		$	(2,352)		$	(11,748)		$	(14,100)
										Chemed
	VITAS			Roto-Rooter			Corporate			Consolidated
After-tax benefit/(cost):
Stock option expense	$	-		$	-		$	(7,621)		$	(7,621)
Long-term incentive compensation		-			-			(2,353)			(2,353)
Amortization of reacquired franchise agreements		-			(1,806)			-			(1,806)
Excess tax benefits on stock compensation		-			-			463			463
Total	$	-		$	(1,806)		$	(9,511)		$	(11,317)

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-27-

Unaudited Consolidating Summary and Reconciliation of Adjusted EBITDA
Chemed Corporation and Subsidiary Companies
(in thousands)											Chemed
For the three months ended March 31, 2026		VITAS			Roto-Rooter			Corporate			Consolidated
	Net income/(loss)	$	52,207		$	35,784		$	(21,689)		$	66,302
	Add/(deduct):
	Interest expense		50			136			326			512
	Income taxes		16,528			11,028			(5,018)			22,538
	Depreciation		5,912			8,379			12			14,303
	Amortization		26			2,544			-			2,570
	EBITDA		74,723			57,871			(26,369)			106,225
	Add/(deduct):
	Intercompany interest expense/(income)		(6,238)			(4,512)			10,750			-
	Interest income		(95)			(15)			(779)			(889)
	Stock option expense		-			-			9,249			9,249
	Long-term incentive compensation		-			-			1,505			1,505
	Acquisition expense		-			167			-			167
	Adjusted EBITDA	$	68,390		$	53,511		$	(5,644)		$	116,257
											Chemed
For the three months ended March 31, 2025		VITAS			Roto-Rooter			Corporate			Consolidated
	Net income/(loss)	$	50,030		$	39,944		$	(18,217)		$	71,757
	Add/(deduct):
	Interest expense		48			132			149			329
	Income taxes		18,035			12,265			(6,383)			23,917
	Depreciation		5,196			8,237			12			13,445
	Amortization		26			2,546			-			2,572
	EBITDA		73,335			63,124			(24,439)			112,020
	Add/(deduct):
	Intercompany interest expense/(income)		(5,296)			(3,930)			9,226			-
	Interest income		(49)			(10)			(2,017)			(2,076)
	Stock option expense		-			-			9,091			9,091
	Long-term incentive compensation		-			-			2,657			2,657
	Adjusted EBITDA	$	67,990		$	59,184		$	(5,482)		$	121,692

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-28-

RECONCILIATION OF ADJUSTED NET INCOME
(in thousands, except per share data)(unaudited)
	Three Months Ended March 31,
	2026			2025
Net income as reported	$	66,302		$	71,757
Add/(deduct) pre-tax cost of:
Stock option expense		9,249			9,091
Amortization of reacquired franchise agreements		2,352			2,352
Long-term incentive compensation		1,505			2,657
Acquisition expense		167			-
Add/(deduct) tax impacts:
Tax impact of the above pre-tax adjustments (1)		(2,248)			(2,320)
Excess tax expense/(benefit) on stock compensation		56			(463)
Adjusted net income	$	77,383		$	83,074
Diluted Earnings Per Share As Reported
Net income	$	4.84		$	4.86
Average number of shares outstanding		13,690			14,764
Adjusted Diluted Earnings Per Share
Adjusted net income	$	5.65		$	5.63
Adjusted average number of shares outstanding		13,690			14,764
(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.

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-29-

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
OPERATING STATISTICS FOR VITAS SEGMENT
(unaudited)
	Three Months Ended March 31,
OPERATING STATISTICS	2026			2025
Net revenue ($000)
Homecare	$	371,091		$	351,566
Inpatient		35,925			34,022
Continuous care		18,133			24,637
Other		5,578			5,344
Subtotal	$	430,727		$	415,569
Room and board, net		(3,257)			(3,525)
Contractual allowances		(5,077)			(2,319)
Medicare cap allowance		(2,375)			(2,325)
Total	$	420,018		$	407,400
Net revenue as a percent of total before Medicare cap allowances
Homecare		86.2	%		84.6	%
Inpatient		8.3			8.2
Continuous care		4.2			5.9
Other		1.3			1.3
Subtotal		100.0			100.0
Room and board, net		(0.8)			(0.8)
Contractual allowances		(1.1)			(0.6)
Medicare cap allowance		(0.6)			(0.6)
Total		97.5	%		98.0	%
Days of care
Homecare		1,691,619			1,632,569
Nursing home		294,818			307,108
Respite		10,875			9,995
Subtotal routine homecare and respite		1,997,312			1,949,672
Inpatient		30,474			29,704
Continuous care		17,288			22,620
Total		2,045,074			2,001,996
Number of days in relevant time period		90			90
Average daily census (days)
Homecare		18,796			18,140
Nursing home		3,276			3,412
Respite		120			111
Subtotal routine homecare and respite		22,192			21,663
Inpatient		339			330
Continuous care		192			251
Total		22,723			22,244
Total Admissions		19,394			18,139
Total Discharges		18,537			17,875
Average length of stay (days)		102.7			118.7
Median length of stay (days)		15.0			16.0
ADC by major diagnosis
Cerebro		44.5	%		44.7	%
Neurological		11.3			12.4
Cancer		9.6			9.6
Cardio		16.3			16.1
Respiratory		7.7			7.2
Other		10.6			10.0
Total		100.0	%		100.0	%
Admissions by major diagnosis
Cerebro		26.9	%		28.4	%
Neurological		6.9			6.5
Cancer		23.5			24.6
Cardio		15.8			15.0
Respiratory		12.4			11.6
Other		14.5			13.9
Total		100.0	%		100.0	%
Estimated uncollectible accounts as a percent of revenues		1.2	%		0.6	%
Accounts receivable --
Days of revenue outstanding- excluding unapplied Medicare payments		38.8			47.3
Days of revenue outstanding- including unapplied Medicare payments		33.6			44.5

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-30-

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Regarding Forward-Looking Information

Certain statements contained in this report are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe”, “expect”, “hope”, “anticipate”, “plan” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. These forward-looking statements are based on current expectations and assumptions and involve various known and unknown risks, uncertainties, contingencies and other factors, which could cause Chemed’s actual results to differ from those expressed in such forward-looking statements. Variances in any or all of the risks, uncertainties, contingencies, and other factors from our assumptions could cause actual results to differ materially from these forward-looking statements and trends. In addition, our ability to deal with the unknown outcomes of these events, many of which are beyond our control, may affect the reliability of projections and other financial matters. Investors are cautioned that such forward-looking statements are subject to inherent risk and there are no assurances that the matters contained in such statements will be achieved. Chemed does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Item 3.    Quantitative and Qualitative Disclosures about Market Risk

The Company’s primary market risk exposure relates to interest rate risk exposure through its variable interest line of credit. At March 31, 2026, the Company had no variable rate debt outstanding. For each $10 million borrowed under the credit facility, an increase or decrease of 100 basis points (1%), increases or decreases the Company’s annual interest expense by $100,000.

The Company continually evaluates this interest rate exposure and periodically weighs the cost versus the benefit of fixing the variable interest rates through a variety of hedging techniques.

Item 4.    Controls and Procedures

We carried out an evaluation, under the supervision of the Company’s President and Chief Executive Officer and with the participation of the Executive Vice President, Chief Financial Officer and Controller, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, the President and Chief Executive Officer and Executive Vice President, Chief Financial Officer and Controller have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report. There has been no change in our internal control over financial reporting that occurred during the quarter covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II.    OTHER INFORMATION

Item 1.    Legal Proceedings

For information regarding the Company’s legal proceedings, see Note 10, Legal and Regulatory Matters, under Part I, Item I of this Quarterly Report on Form 10-Q.

Item 1A.    Risk Factors

There have been no other material changes from the risk factors previously disclosed in the Company’s most recent Annual Report on Form 10-K and Quarterly Report on form 10-Q.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

‎

-31-

Item 2(c).    Purchases of Equity Securities by Issuer and Affiliated Purchasers

The following table shows the activity related to our share repurchase program for the first three months of 2026:

	Total Number		Weighted Average			Cumulative Shares		Dollar Amount
	of Shares		Price Paid Per			Repurchased Under		Remaining Under
	Repurchased		Share			the Program		The Program
February 2011 Program
January 1 through January 31, 2026	-		$	-		12,161,858		$	127,282,674
February 1 through February 28, 2026 (1)	-			-		12,161,858			427,282,674
March 1 through March 31, 2026	500,000			395.36		12,661,858		$	229,301,903
First Quarter Total	500,000		$	395.36
(1) In February 2026, our Board of Directors authorized an additional $300.0 million under the February 2011 Repurchase Program.

Item 3.    Defaults Upon Senior Securities

None.

Item 4.    Mine Safety Disclosures

None.

Item 5.    Other Information

None.
‎

-32-

Item 6.    Exhibits

Exhibit No.		Description
10.1		Sixth Amended and Restated Credit Agreement
31.1		Certification by Kevin J. McNamara pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act of 1934.
31.2		Certification by Michael D. Witzeman pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act of 1934.
32.1		Certification by Kevin J. McNamara pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Certification by Michael D. Witzeman pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101		The following materials from Chemed Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) The Condensed Consolidated Balance Sheet, (ii) The Condensed Consolidated Statement of Income, (iii) The Condensed Consolidated Statement of Cash Flows, (iv) The Condensed Statement of Equity, and (v) Notes to the Condensed Consolidated Financial Statements.
104		The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in iXBRL and contained in Exhibit 101.

‎

-33-

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

						Chemed Corporation
						(Registrant)
Dated:		April 28, 2026		By:		/s/ Kevin J. McNamara
						Kevin J. McNamara
						(President and Chief Executive Officer)
Dated:		April 28, 2026		By:		/s/ Michael D. Witzeman
						Michael D. Witzeman
						(Executive Vice President, Chief Financial Officer and Controller)

-34-

FAQ

How did Chemed (CHE) perform financially in Q1 2026?

Chemed generated $657.5 million in service revenues and sales and $66.3 million in net income in Q1 2026. Diluted EPS was $4.84, slightly below $4.86 a year earlier, reflecting higher costs despite modest revenue growth.

What were Chemed’s Q1 2026 results for VITAS and Roto-Rooter?

In Q1 2026, VITAS reported net revenue of $420.0 million, up 3.1%. Roto-Rooter posted net revenue of $237.5 million, a 0.9% decline, with weaker water restoration and contractor revenue partly offset by higher pricing in short-term core services.

How much cash did Chemed generate and spend in Q1 2026?

Chemed produced $88.2 million in net cash from operating activities in Q1 2026. It used $37.8 million for investing, mainly acquisitions and capital spending, and $108.1 million for financing, driven largely by share repurchases and dividends.

What share repurchases did Chemed complete in Q1 2026?

Chemed repurchased 500,000 shares in Q1 2026 at a weighted average price of $395.36, for total cost of about $197.7 million. Following a new authorization, approximately $229.6 million remained available under the company’s ongoing share repurchase program.

What were Chemed’s non-GAAP metrics like Adjusted EBITDA in Q1 2026?

Chemed reported Q1 2026 Adjusted net income of $77.4 million and Adjusted diluted EPS of $5.65. Adjusted EBITDA was $116.3 million, compared with $121.7 million a year earlier, representing 17.7% of revenue.

What is the status of Chemed’s credit facility and debt at March 31, 2026?

As of March 31, 2026, Chemed had $91.2 million of long-term debt outstanding under its prior revolving credit agreement. It had about $313.3 million of unused committed credit available and $45.5 million in standby letters of credit issued, mainly for insurance.