What were the key takeaways from DaVita's earnings call?

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

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

Did DaVita beat or miss consensus estimates last quarter?

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

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

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

What is DaVita's gross profit margin?

- **Q3 Results**: $517M operating income, $2.51 EPS, in line with expectations. U.S. volume down 1.5% YoY due to one-time events.
- **2026 Outlook**: +50-75bps volume growth vs. 2025, offset by MA mix and premium tax credit risks.
- **Strategic Investments**: AI, IT upgrades to drive long-term efficiency and patient care.
- **Financial Health**: Free cash flow $604M, leverage 3.37x, 10M shares repurchased YTD.
- **Risks**: IKC timing uncertainty, $120M Mozarc charge resolution in 2026.

**【CEO Summary Section】**
- Highlighted clinical research advancements, including 500+ clinical trials and FDA approvals for ESKD drugs.
- Reported Q3 adjusted operating income of $517M and EPS of $2.51, in line with expectations.
- U.S. treatment volume declined 1.5% YoY due to flu season, hurricane, and cyber incident impacts.
- Emphasized long-term IT investments (AI, scheduling systems) despite 2025 G&A growth.
- Full year guidance reaffirmed: $2.035B-$2.135B operating income, $10.35-$11.15 EPS.
- 2026 outlook noted risks from payer mix, IKC timing, and Medicare Advantage dynamics.

**【CFO Financial Commentary】**
- Q3 free cash flow: $604M.
- Revenue per treatment (RPT) +$6 YoY, driven by rate increases and phosphate binders.
- Patient care costs per treatment +$5 sequentially, but 2025 guidance (5-6% growth) maintained.
- International adjusted OI: $27M (down $9M QoQ due to one-time benefits).
- IKC Q3 loss: $21M, but 2025 flat vs. 2024 guidance held.
- Share buybacks: 10M shares ($1.5B) YTD, including 45% ownership repurchase agreement with Berkshire.
- Leverage: 3.37x EBITDA, within 3-3.5x target.

**【Q&A Key Highlights】**
- **Volume Growth**: 2025 headwinds (75-100bps) from flu, hurricane, cyber; 2026 expected +50-75bps improvement.
- **Cyber Impact**: Q3 volume decline 100bps, with 2026 recovery offset by day mix headwinds.
- **Payer Mix**: Commercial mix more impactful than MA; 2026 MA enrollment volatility noted.
- **IKC Timing**: 2024 results delayed, 2025 OI phasing uncertain.
- **Mozarc Charge**: $120M 3-year drag eliminated in 2026 via one-time charge.
- **RPT Seasonality**: Q4 +$50M from vaccines, claims resolution, and rate increases.
- **Market Share**: No meaningful shift despite cyber incident, per USRDS data.

DaVita Inc. (DVA) Q3 2025 Earnings Call Transcript

United States Dialysis and Related Lab Services

Other-Ancillary Services and Strategic Initiatives

Elimination of Intersegment

DVA

DVA fundamentals

You can ask Aime