Viemed Healthcare's Q2 2025: Unraveling Key Contradictions on VA Opportunities, Staffing Revenue, and Market Dynamics

VA opportunity status, impact of Dr. Oz on DME industry, competitive environment and market reach, staffing revenue dynamics and state appropriations, Philips recall and buyback impact are the key contradictions discussed in Viemed Healthcare's latest 2025Q2 earnings call.



Core In-Home Ventilation and Sleep Therapy Growth:
- Viemed Healthcare maintained growth in its core in-home ventilation business for the 17th consecutive quarter, with vent revenue up 5% sequentially and 11% year-over-year.
- The company's sleep therapy patient count increased by 15% sequentially and 51% year-over-year, driven by intentional strategic development of complementary offerings and the expansion of sleep areas.

Lehan Medical Acquisition and Maternal Health Expansion:
- Viemed Healthcare acquired Lehan Medical Equipment, which specializes in maternal health, expanding its addressable at-home market and diversifying its patient base.
- The acquisition aligns with the company's strategic goal of serving patients from the beginning of life through to the end, leveraging Viemed's national infrastructure and payer relationships.

Operational Efficiency and Margin Improvement:
- Viemed Healthcare's adjusted EBITDA grew 12% year-over-year to $14.3 million, driven by strong organic growth and contributions from each business segment.
- The company improved its SG&A as a percentage of revenue by 250 basis points year-over-year, achieving 45.7% in Q2, indicating enhanced operational efficiency.

Staffing Business and Service Revenue Dynamics:
- The staffing business experienced a sequential slowdown, resulting from a softened labor demand, with service revenue up year-over-year, but down sequentially.
- The shift in the business, with 76% from behavioral health and social service needs, has led to increased appropriations for the back half of the year.

Regulatory Developments and Industry Alignment:
- Viemed Healthcare sees the final rule on the NCD as a major opportunity, with the removal of burdensome step therapy requirements and a focus on patient compliance metrics.
- The company is positioned to benefit from regulatory shifts, potentially leading to industry consolidation due to the increased operational demands on smaller operators.