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

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Did DaVita beat or miss consensus estimates last quarter?

What is DaVita's gross profit margin?

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

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

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

- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

DVA

DVA fundamentals

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