DaVita (DVA) investor relations material

Executive summary

• Q2 2025 consolidated revenues were $3.38B, up 4.8% sequentially, with adjusted operating income of $551M and adjusted EPS of $2.95, slightly ahead of expectations despite volume and cyber headwinds.

• Net income attributable to the company was $199M, down from $223M in Q2 2024; diluted EPS was $2.58.

• Free cash flow for Q2 was $157M, with operating cash flow of $324M.

• Maintained uninterrupted patient care during the cyber incident, with $13–$13.5M in related charges excluded from adjusted OI and most financial impact now behind.

• Completed the acquisition of Fresenius Medical Care's dialysis operations in Brazil effective August 1, 2025.

Financial highlights

• Operating income for Q2 2025 was $538M; adjusted operating income was $551M; operating margin was 15.9%.

• US treatments per day declined 1.1% year-over-year, mainly due to elevated mistreatment rates linked to the cyber incident.

• Patient care costs per treatment increased 5.8% year-over-year but declined $3.5 sequentially.

• Free cash flow for the last twelve months was $947M.

• Debt expense rose to $281M for the six months ended June 30, 2025, up 42.6% year-over-year.

Outlook and guidance

• Full-year adjusted OI and EPS guidance ranges reiterated: adjusted OI of $2.01B–$2.16B and adjusted EPS of $10.20–$11.30.

• Free cash flow guidance for 2025 is $1B–$1.25B, with H2 expected to be stronger as cyber-related delays are resolved.

• Expect full-year US treatment volume to decline 75–100 bps year-over-year, revised from prior guidance.

• RPT growth expected near the lower end of the original 4.5%–5.5% range.

• Labor costs are expected to remain elevated, though productivity improvements are anticipated.