Viemed Healthcare (VMD 2.06%), a provider of in-home respiratory care services, released its Q2 2025 results on August 6, 2025. The company reported record quarterly revenue (GAAP), growing to $63.1 million (GAAP), though this was narrowly below the analyst consensus of $63.25 million in GAAP revenue. GAAP earnings per share (EPS) reached $0.08, which also slightly missed the GAAP consensus estimate of $0.085. Despite these modest shortfalls, the quarter saw solid year-over-year growth in patient volumes Management raised its full-year 2025 revenue and Adjusted EBITDA (non-GAAP) outlook, in part due to the recent acquisition of Lehan’s Medical Equipment. The overall performance showed disciplined execution, even as gross margin saw some pressure from changes in the company’s service mix.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $0.08 | N/A | $0.04 | 100.0% |
| Revenue (GAAP) | $63.1 million | $63.25 million | N/A | N/A |
| Adjusted EBITDA | $14.3 million | $12.8 million | 11.7% | |
| Gross Profit | $36.7 million | $32.9 million | N/A | |
| Gross Margin | 58% | 60% | (2.0 pp) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company Overview and Strategic Focus
Viemed Healthcare specializes in delivering respiratory care and related therapy equipment directly to patients at home. The company's main services involve home ventilation, positive airway pressure (PAP) therapy for sleep disorders, and recurring delivery of supplies. These service lines are supported by a network of certified respiratory therapists and a technology-enabled clinical approach.
Recent company focus has centered around expanding beyond core respiratory therapy into additional home healthcare segments. This includes investment in sleep therapy programs, growing the PAP patient base, and branching into adjacent categories like women's health through smart acquisitions. Critical success factors include regulatory compliance, adapting to Medicare and private insurance reimbursement shifts, maintaining competitive service quality, and operational efficiency in scaling up both workforce and reach.
Quarter in Review: Growth, Margins, and Diversification
During Q2 2025, revenue grew 14.7%, driven by increases in ventilator, PAP therapy, and sleep resupply patient counts. The ventilator patient count rose by 11.4% to 12,152 as of June 30, 2025. PAP therapy patients jumped 51.4% year-over-year to 26,260 as of June 30, 2025. Sleep resupply saw a 25.1% rise year-over-year as of June 30, 2025. These volume gains contributed to setting new records for both revenue and patient base.
While the revenue figure represented a record on a GAAP basis, it did miss consensus expectations by less than $0.2 million (GAAP). The GAAP EPS outcome also came in just below projections; even so, Net income attributable to shareholders (GAAP) more than doubled year-over-year, reaching $3.2 million. Adjusted EBITDA grew 11.5% year-over-year (non-GAAP), pointing to underlying operating strength amid growth initiatives. Cash flow from operations for the first half of 2025 was $15.1 million.
The company’s gross profit (GAAP) increased 11.7% to $36.7 million from Q2 2024, but gross margin slipped from 60% in Q4 2024 to 56% in Q1 2025. This decrease was largely attributed to a revenue shift toward the sleep and staffing businesses, which are growing faster but tend to carry lower gross margins than ventilation services. Management indicated this trend is anticipated as the company pushes for diversification and scale in these newer areas. The shift in mix is strategic but will continue to be watched for its profit implications.
One major business event during the quarter was the completion of the acquisition of Lehan’s Medical Equipment on July 1, 2025. This $26 million transaction brings new respiratory and women’s health offerings, expands private-payer exposure, and establishes an operational footprint in the Chicago region. The new business is expected to have higher EBITDA margins, broadening Viemed's market reach and further diversifying its revenue. Ongoing share repurchases totaled $1.8 million, reflecting active capital deployment through buybacks. No dividends were paid or announced.
Look Ahead: Guidance and Key Watchpoints
After the quarter, management raised its full-year 2025 financial guidance to reflect the anticipated benefits from the Lehan’s acquisition, increasing its net revenue guidance to a range of $271 million to $277 million and its Adjusted EBITDA guidance to a range of $59 million to $62 million. The outlook now calls for net revenue in the range of $271 million to $277 million, compared to previous guidance of $256 million to $265 million. Adjusted EBITDA is expected to rise to between $59 million and $62 million, from a previous range of $55 million to $58 million (non-GAAP). Management specified that the guidance increase is “primarily related to the inclusion of Lehan’s anticipated results for the second half of 2025.” This refers to updated full-year guidance for net revenue and Adjusted EBITDA.
Viemed Healthcare does not currently pay a dividend. Investors are likely to keep an eye on further developments in gross margin trends—especially as the business mix evolves—progress with the Lehan’s integration, and any potential changes in Medicare, Medicaid, or private reimbursement policy. The company’s strong liquidity position, healthy cash generation, and net-cash balance sheet provide flexibility as it pursues both organic and acquisition-driven growth.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
