What is the revenue and EPS growth rate for Chemed year over year?

What is the market's earnings forecast for Chemed next quarter?

Did Chemed beat or miss consensus estimates last quarter?

What is Chemed's gross profit margin?

What were the key takeaways from Chemed’s earnings call?

What factors drove the changes in Chemed's revenue and profit?

What does Chemed do and what are its main business segments?

What guidance did Chemed's management provide for the next earnings period?

- **VITAS Turnaround**: Florida Medicare Cap resolved, 2026 revenue growth 5.5-6.5%, EBITDA margin 17.5-18%. Short-stay admissions drove Q4 2025 miss but set stage for H2 2026 recovery.
- **Roto-Rooter Challenges**: 2025 revenue decline 3.7%, water restoration write-offs up 57%. 2026 guidance: 3-3.5% revenue growth, 22.5-23% EBITDA margin, driven by centralized billing and commercial expansion.
- **Shareholder Returns**: $2.9B buybacks since 2025, 2026 EPS guidance $23.25-24.25 (+7.8% YoY).

**【CEO Summary Section】**
- **VITAS Performance**: Q4 2025 revenue grew 1.9% YoY to $418.8M, driven by a 1.3% increase in days of care and a 2.2% Medicare reimbursement rate hike. However, a 143bps acuity mix shift and 20bps Medicare Cap impact dragged margins. Florida Medicare Cap liability improved by $25M YoY, with no accrual in Q4 2025. Management shifted to short-stay admissions (44.8% hospital-based) to mitigate Cap risk, but this reduced revenue growth and EBITDA margin. VITAS secured a CON for Manatee County, Florida, targeting 3,000 Medicare patients.
- **Roto-Rooter Challenges**: Q4 2025 revenue declined 3.7% YoY to $210.8M, with water restoration write-offs up 57% YoY to $4M. Branch commercial revenue grew 1.6% YoY, but residential revenue fell 3.1% YoY. Management is centralizing billing, investing in AI for collections, and expanding commercial sales teams. Guidance expects 3-3.5% revenue growth in 2026, driven by improved lead volume, billing efficiency, and commercial expansion.

**【CFO Financial Commentary】**
- **VITAS Guidance 2026**: Revenue growth 5.5-6.5%, EBITDA margin 17.5-18% (pre-Cap). Medicare Cap liability expected at $9.5M vs. $27.2M in 2025. Florida Cap issue resolved, with focus on rebalancing admissions to long-stay patients.
- **Roto-Rooter Guidance 2026**: Revenue growth 3-3.5%, EBITDA margin 22.5-23%. Water restoration write-offs expected to improve by $4-6M YoY. Free cash flow used to repurchase 400,000 shares in Q4 2025, total buybacks since 2025: $2.9B at $167/share.
- **Consolidated 2026 EPS Guidance**: $23.25-24.25 vs. $21.55 in 2025, with 55% of net income generated in H2 2026.

**【Q&A Highlights】**
- **Roto-Rooter Growth Confidence**: Improved paid lead generation (+9.4% Q4 2025), centralized billing, and commercial sales expansion (45-day ramp-up) expected to drive 3-3.5% revenue growth. Water restoration write-offs expected to improve by $5.5M YoY.
- **VITAS Margin Recovery**: Rebalancing admissions to long-stay patients will boost EBITDA margin, with 70% of 2026 growth coming from H2. Florida Medicare Cap cushion now >$35M, eliminating 2025 liability.
- **Structural Risks**: Roto-Rooter faces headwinds from Google's paid search algorithm and private equity competition, but management believes 2026 will mark a return to normalized growth. VITAS' Florida dominance and new CONs mitigate Cap risks outside California.


Chemed Corporation (CHE) Q4 2025 Earnings Call Transcript

- **VITAS Medicare Cap Mitigation**: Q3 Florida Medicare Cap limitation of $18.9M (vs. $19M estimate), with 44.5% hospital admissions (target 42%-45%). Management confident no 2026 cap.
- **Roto-Rooter Recovery**: Residential plumbing revenue +8.2% YoY, with Q4 seasonal growth. EBITDA margin expected to improve as paid lead investments yield returns.
- **2026 Guidance**: VITAS targeting 8% revenue growth and 17.5%-18% EBITDA margin; Roto-Rooter aiming for 3%-5% revenue growth and 25%-26% EBITDA margin.
- **Q4 Catalysts**: VITAS Medicare rate increase driving margin expansion; Roto-Rooter benefiting from colder weather and operational efficiency gains.

**【CEO Summary Section】**
- **VITAS Performance**: Q3 admissions increased 5.6% YoY to 17,714, with hospital-based admissions at 44.5% of total (target range 42%-45%). Medicare Cap billing limitation for Florida was $18.9 million, better than expected $19 million. New Pinellas County location set to open in early November, with Marion County ADC growing to 75 (projected to double by end-2026). Management expects no Medicare Cap in 2026.
- **Roto-Rooter Update**: Revenue grew 1.1% YoY, driven by 8.2% increase in residential plumbing revenue. However, EBITDA margin declined due to $3.6 million increase in SG&A from paid lead generation. Independent contractor revenue declined 4.7% YoY. Management sees stabilization and potential growth in 2026 with improved pricing discipline and operational efficiency.

**【CFO Financial Commentary】**
- **VITAS Financials**: Net revenue $407.7 million (+4.2% YoY), but adjusted EBITDA margin excluding Medicare Cap fell 157 bps to 17.0% due to short-stay patient mix. Medicare Cap billing limitation was $6.1 million (Florida $4.6M, others $1.5M).
- **Roto-Rooter Financials**: Adjusted EBITDA $49.4 million (-12.4% YoY), margin 22.7% (-351 bps YoY). Gross margin in line with guidance, but SG&A growth pressured margins. Management expects sequential margin improvement in Q4.
- **Full Year Guidance**: Reaffirmed $22.00-$22.30 EPS, excluding non-cash items. VITAS expected to benefit from Q4 Medicare rate increase, while Roto-Rooter sees seasonal growth from colder weather.

**【VITAS CEO (Joel Wherley) Operational Update】**
- **Patient Metrics**: Average daily census 22,327 (+2.5% YoY), hospital-directed admissions +10.4% YoY. Length of stay normalized (median 18 days vs. 20 days in Q2), reflecting focus on short-stay patients.
- **Efficiency Initiatives**: Labor management improvements offset margin pressure from short-stay mix. Q4 typically sees margin expansion due to new Medicare rates and seasonal demand.

**【Q&A Highlights】**
- **2026 Outlook**: VITAS expects no Medicare Cap in Florida, with focus on long-term growth through new CONs and operational efficiency. Roto-Rooter targeting 3%-5% revenue growth and 25%-26% EBITDA margin in 2026, driven by paid lead investments and pricing discipline.
- **Margins & Costs**: VITAS Q4 margin boost from Medicare rate increase; Roto-Rooter expects sequential margin improvement as field-level initiatives take hold. Management sees $22.30 EPS as achievable with Q4 upside.
- **Competitive Dynamics**: Roto-Rooter paid lead growth (+8.6% YoY) reflects reduced competition for paid leads, though natural lead decline pressures margins. VITAS hospital admission strategy mitigates Medicare Cap risk.


Chemed Corporation (CHE) Q3 2025 Earnings Call Transcript

- **VITAS Medicare Cap Challenge**: 2025 Florida cap $19M vs. prior guidance, driven by April-May admissions weakness. 2026 cap risk mitigated via short-stay focus and CON expansion.
- **Roto-Rooter Margin Pressure**: Q2 EBITDA down 18.7% YoY due to labor inefficiencies and insurance costs. 2025 margin guided at 23.5-24.5%, requiring lead recovery and cost control.
- **EPS Guidance Downgrade**: Full year 2025 EPS $22-22.30 (-13% vs. prior) reflects Medicare Cap and Roto-Rooter underperformance.
- **Strategic Focus**: VITAS cap mitigation and Roto-Rooter digital transformation key to 2026 recovery.

**【CEO Opening Remarks】**
- VITAS admissions grew 1.2% YoY (4.9% excluding transfers), with ADC up 6.1% to 22,318. Florida Medicare cap projection revised to $19M for 2025, with no significant cap expected in 2026. 
- Roto-Rooter revenue up 0.6% YoY, missing internal targets due to April-May weakness. June/July rebounded, but total leads down 7.2% YoY.

**【CFO Financial Commentary】**
- VITAS net revenue $396.2M (+5.8% YoY), adjusted EBITDA $66.8M (flat YoY). Medicare Cap billing limitation $16.4M Q2, total 2025 guidance $28.2M.
- Roto-Rooter EBITDA $48.6M (-18.7% YoY), margin 21.8% (-517bps YoY) due to labor inefficiencies, higher insurance costs, and paid search mix.
- Full year 2025 EPS guidance $22-22.30, down from prior $24.95-25.45, reflecting Medicare Cap and Roto-Rooter margin challenges.

**【Q&A Highlights】**
- **Medicare Cap Management**: VITAS focusing on short-stay admissions (+9.1% YoY hospital admissions), CON expansion in Marion/Pinellas counties, and acuity mix shift. 2026 cap outlook positive due to rate differential assumptions.
- **Roto-Rooter Recovery**: June/July residential revenue rebounded, but labor inefficiencies persist. EBITDA margin expected to improve with revenue normalization and cost controls.
- **Tax Rate Volatility**: Q2 tax rate decline due to stock option exercise timing; 2025 effective rate guided at 25.3%.
- **Acquisition Strategy**: No change to M&A focus on VITAS expansion; balance sheet flexibility for buybacks and strategic deals.

Chemed Corporation (CHE) Q2 2025 Earnings Call Transcript

- **VITAS Strong Growth**: 13.1% ADC rise to 22,244, fueled by 12% hospital admissions growth and $85M acquisition.
- **Roto-Rooter Resilience**: 1.8% revenue growth despite 7.8% lead decline, driven by commercial excavation gains.
- **Medicare Cap Management**: 49% of admissions now from hospitals, reducing cap pressure while maintaining 15.1% revenue growth.
- **Cash Flow Clarity**: $48M AR increase resolved; no underlying collection issues.


**【CEO Summary Section】**
- VITAS Q1 2025 admissions rose 7.3% YoY to 18,139, with average daily census (ADC) up 13.1% to 22,244, driven by the $85M Covenant Health acquisition. 
- Roto-Rooter reported 1.8% total revenue growth, with branch commercial revenue up 7.3% due to excavation and water restoration gains.
- VITAS successfully navigated Medicare Cap through 12% growth in hospital-based admissions (now 49% of total) and new Florida programs in Pasco and Marion counties.

**【CFO Financial Commentary】**
- VITAS net revenue grew 15.1% to $407.4M, with adjusted EBITDA (excl. Medicare Cap) up 15.9% to $70.3M and margin improving 13bps to 17.2%.
- Roto-Rooter adjusted EBITDA declined 2.4% to $59.2M due to lower-margin commercial excavation work, though gross branch revenue rose 3.1%.
- Cash flow dynamics: $48M AR increase from OAS audit resolution and $57M PIP timing shift.

**【VITAS Operational Update】**
- 7.3% YoY admissions growth across all channels (nursing homes +3.9%, hospitals +12%, assisted living +5.2%).
- Average length of stay increased 14% to 118.7 days, reflecting earlier patient identification via community outreach.
- Marion County program to launch mid-May, adding long-term growth potential while providing Medicare Cap cushion.

**【Q&A Highlights】**
- Medicare Cap strategy: 12% YoY growth in short-stay hospital admissions (median 16 days) balanced revenue vs. cap utilization.
- 2025+ growth outlook: 15.1% VITAS revenue growth in Q1 suggests sustainable mid-teens expansion post-2024 hypergrowth.
- Cash flow transparency: AR spike explained by OAS audit resolution, no underlying collection issues.


Chemed (CHE)-24 Apr 25-2025 Q1 Earnings call transcript

- **VITAS Strong Growth**: 14.6% ADC growth in Q4, 2025 guided for 10.5-11.3% revenue expansion.
- **Roto-Rooter Turnaround**: 2025 revenue growth 2.4-3% driven by commercial recovery and cost control.
- **Medicare Cap Impact**: $9.5M 2025 cap limitation requiring shorter-stay admissions, moderating margin to 18.4-18.9%.
- **Florida Expansion**: New Pasco County program admits 40+ patients; Marion County CON awarded but no 2025 impact.

**【CEO Opening Remarks】**
- VITAS achieved 3.5% admissions growth and 14.6% ADC growth, driven by the Covenant Health acquisition and new Florida programs. 
- Roto-Rooter Q4 revenue declined 2.9% YoY but exceeded internal expectations, with commercial business momentum and improved conversion rates.
- 2025 guidance: VITAS revenue growth 10.5-11.3%, Roto-Rooter revenue growth 2.4-3%.

**【CFO Financial Details】**
- VITAS Q4 net revenue $411M (+17.4% YoY), EBITDA $93.2M (+11.8% YoY). 2025 EBITDA margin expected to moderate to 18.4-18.9% due to Medicare Cap management.
- Roto-Rooter Q4 EBITDA $60.3M (-7.2% YoY). 2025 EBITDA margin projected at 25.7-26.3%.
- Full year 2025 EPS guidance: $24.95-$25.45, up 8% YoY.

**【VITAS Operational Update】**
- Pasco County program admitted 40+ patients in Q4; Marion County CON awarded but timing TBD.
- Medicare Cap billing limitation estimated at $9.5M in 2025, requiring focus on shorter-stay hospital admissions.
- 9 quarters of sequential ADC growth; 2024 all-time highs in ADC, revenue, EBITDA growth.

**【Q&A Highlights】**
- **Roto-Rooter Recovery**: 2025 guidance confidence driven by Q4 commercial momentum and reduced residential decline.
- **VITAS Market Share**: Florida growth outpaces national trends; 2025 guidance excludes Marion County impact.
- **Capital Allocation**: Share buybacks to continue as a cash return mechanism, but no repurchases in guidance.
- **Medicare Cap Longevity**: Expected to persist; 2025 cap impact similar to 2024 levels.

Actual											3.68	4.41	4.86	5.13	4.44	4.6	5.06	5.25	4.79	4.84	4.74	5.39	4.82	4.71	5.32	6.6	5.2	5.47	5.64	6.83	5.63	4.27	5.27	6.42
Forecast											3.6533	3.7533	3.9733	5.13	4.0233	4.2867	4.49	5.0767	4.4733	4.7767	4.6467	5.3133	4.81	5.0867	4.9	6.25	5.48	5.5933	5.645	6.7833	5.5467	5.12	5.365	7.03
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+0.73%	+17.50%	+22.32%	0.00%	+10.36%	+7.31%	+12.69%	+3.41%	+7.08%	+1.33%	+2.01%	+1.44%	+0.21%	-7.41%	+8.57%	+5.60%	-5.11%	-2.20%	-0.09%	+0.69%	+1.50%	-16.60%	-1.77%	-8.68%

Actual	--	--	--	--	--	--	--	--	--	--	515.80M	502.20M	528.30M	533.29M	527.36M	532.26M	538.67M	540.98M	530.55M	531.29M	526.47M	546.65M	560.16M	553.82M	564.53M	585.91M	589.23M	595.88M	606.18M	639.99M	646.94M	618.80M	624.90M	639.34M
Forecast	--	--	--	--	--	--	--	--	--	--	523.04M	522.90M	514.22M	537.20M	510.26M	511.85M	531.87M	543.18M	538.57M	538.07M	527.05M	546.60M	548.78M	562.54M	558.42M	586.64M	591.46M	599.20M	612.22M	636.10M	641.78M	628.58M	626.04M	659.09M
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-1.39%	-3.96%	+2.74%	-0.73%	+3.35%	+3.99%	+1.28%	-0.41%	-1.49%	-1.26%	-0.11%	+0.01%	+2.07%	-1.55%	+1.10%	-0.12%	-0.38%	-0.55%	-0.99%	+0.61%	+0.80%	-1.56%	-0.18%	-3.00%

CHE

CHE fundamentals

CHE Q4 2025 Earnings

Earnings Call

You can ask Aime

CHE

CHE fundamentals

CHE Q4 2025 Earnings

Earnings Call

CHE Earnings Call Summary for Q4/202510:00 AM on Feb 26, 2026

CHE Earnings Call Summary for Q3/202510:00 AM on Oct 29, 2025

CHE Earnings Call Summary for Q2/202510:00 AM on Jul 30, 2025

CHE Earnings Call Summary for Q1/202510:00 AM on Apr 24, 2025

CHE Earnings Call Summary for Q4/202410:00 AM on Feb 27, 2025

You can ask Aime