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Chemed Reports Third-Quarter 2025 Results

News Provided by GlobeNewswire2025-10-28

CINCINNATI, Oct. 28, 2025 (GLOBE NEWSWIRE) -- Chemed Corporation (Chemed) (NYSE: CHE), which operates VITAS Healthcare Corporation (VITAS), the nation’s largest provider of end-of-life care, and Roto-Rooter, the nation’s largest commercial and residential plumbing and drain cleaning services provider, reported financial results for its third quarter ended September 30, 2025, versus the comparable prior-year period.

Results for Quarter Ended September 30, 2025

Consolidated operating results:

Revenue increased 3.1% to $624.9 million
GAAP Diluted Earnings-per-Share (EPS) of $4.46, a decrease of 10.8%
Adjusted Diluted EPS of $5.27, a decrease of 6.6%

VITAS segment operating results:

Net Patient Revenue of $407.7 million, an increase of 4.2%
Average Daily Census (ADC) of 22,327, an increase of 2.5%
Admissions of 17,714, an increase of 5.6%
Net Income, excluding certain discrete items, of $48.9 million, a decrease of 9.0%
Adjusted EBITDA, excluding Medicare Cap, of $70.4 million, a decrease of 3.8%
Adjusted EBITDA margin, excluding Medicare Cap, of 17.0%, a decrease of 157-basis points

Roto-Rooter segment operating results:

Revenue of $217.2 million, an increase of 1.1%
Net Income, excluding certain discrete items, of $33.9 million, a decrease of 14.8%
Adjusted EBITDA of $49.4 million, a decline of 12.4%
Adjusted EBITDA margin of 22.7%, a decline of 351-basis points

VITAS

VITAS net revenue was $407.7 million in the third quarter of 2025, which is an increase of 4.2% when compared to the prior-year period. This revenue increase is comprised primarily of a 2.5% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 4.1%. Acuity mix shift negatively impacted revenue growth 121-basis points in the quarter when compared to the prior-year period’s revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes negatively impacted revenue growth by 124-basis points.

Total VITAS admissions increased 5.6% in the third quarter of 2025 compared to the third quarter of 2024.

In the third quarter of 2025, VITAS accrued $6.1 million in Medicare Cap billing limitation compared to $2.2 million accrued in the third quarter of 2024. Of the $6.1 million accrued during the quarter, $4.6 million relates to the Florida combined program. The remaining $1.5 million relates to all other VITAS programs, mainly in California.

Of VITAS’ 34 Medicare provider numbers, 25 provider numbers have a full-year Medicare Cap cushion of 10% or greater, four provider numbers have a cushion between 0% and 10%, and five provider numbers have a Medicare Cap billing limitation totaling $27.2 million.

Average revenue per patient per day in the third quarter of 2025 was $205.08 which is 298-basis points above the prior-year period. Reimbursement for routine home care and high acuity care averaged $183.44 and $1,132.50, respectively. During the quarter, high acuity days-of-care were 2.3% of total days of care, a decline of 26-basis points when compared to the prior-year quarter.

The third quarter 2025 gross margin, excluding Medicare Cap, was 22.5%, a 261-basis point decline from the same period of 2024. Selling, general and administrative expenses were $25.2 million in the third quarter of 2025 compared to $25.9 million in the prior year quarter.

Adjusted EBITDA, excluding Medicare Cap, totaled $70.4 million in the quarter, a decline of 3.8% when compared to the prior year period. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 17.0%.

Roto-Rooter

Roto-Rooter generated quarterly revenue of $217.2 million in the third quarter of 2025, an increase of 1.1%, when compared to the prior-year quarter.

Roto-Rooter branch commercial revenue in the quarter totaled $55.0 million, an increase of 2.8% from the prior-year period. This aggregate commercial revenue change consisted of excavation increasing 10.2%, water restoration increasing 3.5% and drain cleaning increasing 1.2%, offset by a decline in plumbing of 0.8%.

Roto-Rooter branch residential revenue in the quarter totaled $150.9 million, an increase of 3.4%, over the prior-year period. This aggregate residential revenue change consisted of plumbing increasing 8.2%, excavation increasing 4.5%, and water restoration increasing 6.8%, offset by a decline in drain cleaning of 2.6%.

In the third quarter of 2025, revenue from independent contractors was $16.9 million which is a decline of 4.7% as compared to the same period of 2024.

Roto-Rooter’s third quarter 2025 gross margin was 50.7%. This compares to the prior year quarter’s gross margin of 52.9%. Roto-Rooter’s selling, general and administrative expenses were $60.7 million in the quarter, which is an increase of 6.3% compared to the third quarter of 2024.

Adjusted EBITDA in the third quarter of 2025 totaled $49.4 million, a decrease of 12.4% when compared to the third quarter of 2024. The Adjusted EBITDA margin in the quarter was 22.7% which represents a 351-basis point decline from the third quarter of 2024.

Chemed Consolidated

As of September 30, 2025, Chemed had total cash and cash equivalents of $129.8 million and no current or long-term debt.

In June 2022, Chemed entered into a five-year $550 million Amended and Restated Credit Agreement (Credit Agreement). This Credit Agreement consisted of a $100 million amortizable term loan and a $450 million revolving credit facility. The interest rate on this Credit Agreement has a floating rate that is currently SOFR plus 100-basis points. There is approximately $404.5 million undrawn borrowing capacity under the Credit Agreement after excluding $45.5 million for Letters of Credit.

During the quarter, the Company repurchased 407,500 shares of Chemed stock for $180.8 million which equates to a cost per share of $443.62. As of September 30, 2025, there was approximately $301.8 million of remaining share repurchase authorization under its plan.

Reiterate Guidance for 2025

Management reiterates its previously issued guidance of $22.00 to $22.30 per share, excluding non-cash expense for stock options, tax benefits from stock option exercises, costs related to litigation and other discrete items. This guidance assumes that there will be no Medicare Cap related to our Florida combined program for the government fiscal year 2026 beginning on October 1, 2025.

Conference Call

As previously disclosed, Chemed will host a conference call and webcast at 10 a.m., ET, on Wednesday October 29, 2025, to discuss the company 's quarterly results and to provide an update on its business. Participants may access a live webcast of the conference call through the investor relations section of Chemed’s website, Investor Relations Home | Chemed Corporation or the hosting website https://edge.media-server.com/mmc/p/9m3ch5my.

Participants may also register via teleconference at:
https://register-conf.media-server.com/register/BI5480f8c9f938458faa4a35265dc8563e.

Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are instructed to dial-in 15 minutes prior to the start time.

A taped replay of the conference call will be available beginning approximately two hours after the call 's conclusion. You may access the replay via webcast through the investor relations section of Chemed’s website.

Chemed operates in the healthcare field through its VITAS Healthcare Corporation subsidiary. VITAS provides daily hospice services to patients with severe, life-limiting illnesses. This type of care is focused on making the terminally ill patient 's final days as comfortable and pain-free as possible.

Chemed operates in the residential and commercial plumbing and drain cleaning industry under the brand name Roto-Rooter. Roto-Rooter provides plumbing, drain cleaning, and water cleanup services through company-owned branches, independent contractors and franchisees in the United States and Canada. Roto-Rooter also has licensed master franchisees in the republics of Indonesia and Singapore, and the Philippines.

This press release contains information about Chemed’s EBITDA, Adjusted EBITDA, and Adjusted Diluted EPS, which are not measures derived in accordance with GAAP and which exclude components that are important to understanding Chemed’s financial performance. In reporting its operating results, Chemed provides EBITDA, Adjusted EBITDA and Adjusted Diluted EPS measures to help investors and others evaluate the Company’s operating results, compare its operating performance with that of similar companies that have different capital structures and evaluate its ability to meet its future debt service, capital expenditures and working capital requirements. Chemed’s management similarly uses EBITDA, Adjusted EBITDA, and Adjusted Diluted EPS to assist it in evaluating the performance of the Company across fiscal periods and in assessing how its performance compares to its peer companies. These measures also help Chemed’s management to estimate the resources required to meet Chemed’s future financial obligations and expenditures. Chemed’s EBITDA, Adjusted EBITDA and Adjusted Diluted EPS should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. We calculated Adjusted EBITDA Margin by dividing Adjusted EBITDA by service revenue and sales. A reconciliation of Chemed’s net income to its EBITDA, Adjusted EBITDA and Adjusted Diluted EPS is presented in the tables following the text of this press release.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 REGARDING FORWARD-LOOKING INFORMATION

Statements in this press release contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods and are based upon assumptions subject to certain known and unknown risks, uncertainties, contingencies and other factors, including, but not limited to, the impact of laws and regulations on Chemed’s operations, including Medicare Cap and Medicare reimbursement rates, Chemed’s estimates of the effect of Medicare Cap on VITAS’ revenues and future prospects, Chemed’s expectations regarding VITAS’ patient mix and Chemed’s expectations regarding demand for Roto-Rooter’s services.

Because forward looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Chemed’s control. Chemed’s actual results and financial condition may differ materially from those indicated in the forward-looking statements included in this press release, including as a result of the risks described above and those described in the Chemed’s Annual Report on Form 10-K for the year ended December 31, 2024 and in its Quarterly Reports filed in 2025. Any forward-looking statement made by Chemed in this press release is based only on information currently available to Chemed and speaks only as of the date on which it is made. Chemed undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Service revenues and sales	$	624,900		$	606,181		$	1,890,641			1,791,294
Cost of services provided and goods sold		427,993			396,187			1,292,628			1,171,064
Selling, general and administrative expenses (aa)		105,775			101,981			311,685			320,109
Depreciation		13,664			13,147			40,798			39,601
Amortization		2,570			2,550			7,713			7,617
Other operating expense		148			159			225			288
Total costs and expenses		550,150			514,024			1,653,049			1,538,679
Income from operations		74,750			92,157			237,592			252,615
Interest expense		(457	)		(427	)		(1,229	)		(1,281	)
Other income--net (bb)		9,251			9,299			13,970			28,008
Income before income taxes		83,544			101,029			250,333			279,342
Income taxes		(19,307	)		(25,253	)		(61,846	)		(67,662	)
Net income	$	64,237		$	75,776		$	188,487		$	211,680
Earnings Per Share
Net income	$	4.46		$	5.04		$	12.97		$	14.04
Average number of shares outstanding		14,394			15,025			14,535			15,082
Diluted Earnings Per Share
Net income	$	4.46		$	5.00		$	12.89		$	13.88
Average number of shares outstanding		14,409			15,168			14,620			15,253

(aa) Selling, general and administrative ( "SG&A ") expenses comprise (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
SG&A expenses before long-term incentive compensation
and the impact of market value adjustments related to
deferred compensation plans	$	99,288		$	93,269		$	301,600		$	287,712
Market value adjustments related to deferred
compensation trusts		6,703			5,629			6,791			16,600
Long-term incentive compensation		(216	)		3,083			3,294			15,797
Total SG&A expenses	$	105,775		$	101,981		$	311,685		$	320,109

(bb) Other income--net comprises (in thousands):
	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024

Interest income	$	2,555		$	3,668		$	7,186		$	11,405
Market value adjustments related to deferred
compensation trusts		6,703			5,629			6,791			16,600
Other		(7	)		2			(7	)		3
Total other income--net	$	9,251		$	9,299		$	13,970		$	28,008

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)(unaudited)

	September 30,
	2025			2024
Assets
Current assets
Cash and cash equivalents	$	129,752		$	238,451
Accounts receivable less allowances		215,570			196,481
Inventories		8,238			9,899
Prepaid income taxes		7,106			14,229
Prepaid expenses		34,577			31,377
Total current assets		395,243			490,437
Investments of deferred compensation plans held in trust		136,021			126,631
Properties and equipment, at cost less accumulated depreciation		203,939			200,939
Lease right of use asset		128,362			134,111
Identifiable intangible assets less accumulated amortization		84,930			94,753
Goodwill		666,987			666,860
Other assets		8,137			55,704
Total Assets	$	1,623,619		$	1,769,435
Liabilities
Current liabilities
Accounts payable	$	48,095		$	44,938
Accrued insurance		65,733			60,308
Accrued income taxes		1,469			3,385
Accrued compensation		79,668			73,141
Short-term lease liability		42,013			42,490
Other current liabilities		55,063			40,517
Total current liabilities		292,041			264,779
Deferred income taxes		9,687			28,076
Deferred compensation liabilities		132,380			122,240
Long-term lease liability		99,461			105,416
Other liabilities		13,367			13,169
Total Liabilities		546,936			533,680
Stockholders ' Equity
Capital stock		37,593			37,395
Paid-in capital		1,581,067			1,462,569
Retained earnings		2,887,123			2,639,011
Treasury stock, at cost		(3,431,475	)		(2,905,430	)
Deferred compensation payable in Company stock		2,375			2,210
Total Stockholders ' Equity		1,076,683			1,235,755
Total Liabilities and Stockholders ' Equity	$	1,623,619		$	1,769,435

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)(unaudited)

	Nine Months Ended September 30,
	2025			2024
Cash Flows from Operating Activities
Net income	$	188,487		$	211,680
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization		48,511			47,218
Stock option expense		24,374			23,933
Benefit for deferred income taxes		(16,259	)		(2,245	)
Noncash long-term incentive compensation		3,057			15,783
Litigation settlements		1,850			(5,750	)
Noncash directors ' compensation		1,123			1,282
Amortization of debt issuance costs		241			241
Changes in operating assets and liabilities, excluding
amounts acquired in business combinations:
Increase in accounts receivable		(44,403	)		(14,336	)
(Increase)/decrease in inventories		(45	)		2,125
Increase in prepaid expenses		(8,603	)		(1,173	)
Increase/(decrease) in accounts payable and
other current liabilities		10,102			(19,641	)
Change in current income taxes		(2,162	)		(4,545	)
Net change in lease assets and liabilities		(576	)		(400	)
Decrease/(increase) in other assets		42,048			(21,101	)
Increase in other liabilities		6,355			18,348
Other sources		639			1,165
Net cash provided by operating activities		254,739			252,584
Cash Flows from Investing Activities
Capital expenditures		(46,447	)		(36,770	)
Proceeds from sale of fixed assets		3,751			3,060
Business combinations, net of cash acquired		(225	)		(97,400	)
Other uses		(468	)		(281	)
Net cash used by investing activities		(43,389	)		(131,391	)
Cash Flows from Financing Activities
Purchases of treasury stock		(256,944	)		(152,049	)
Proceeds from exercise of stock options		27,152			49,906
Dividends paid		(23,196	)		(19,594	)
Capital stock surrendered to pay taxes on stock-based compensation		(8,484	)		(8,827	)
Change in cash overdrafts payable		610			(15,749	)
Other sources/(uses)		914			(387	)
Net cash used by financing activities		(259,948	)		(146,700	)
Decrease in Cash and Cash Equivalents		(48,598	)		(25,507	)
Cash and cash equivalents at beginning of year		178,350			263,958
Cash and cash equivalents at end of period	$	129,752		$	238,451

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(in thousands)(unaudited)
										Chemed
	VITAS			Roto-Rooter			Corporate			Consolidated
2025 (a)
Service revenues and sales	$	407,741		$	217,159		$	-		$	624,900
Cost of services provided and goods sold		320,865			107,128			-			427,993
Selling, general and administrative expenses		25,236			60,672			19,867			105,775
Depreciation		5,354			8,298			12			13,664
Amortization		26			2,544			-			2,570
Other operating expense/(income)		186			(38	)		-			148
Total costs and expenses		351,667			178,604			19,879			550,150
Income/(loss) from operations		56,074			38,555			(19,879	)		74,750
Interest expense		(56	)		(132	)		(269	)		(457	)
Intercompany interest income/(expense)		5,685			4,030			(9,715	)		-
Other income—net		61			25			9,165			9,251
Income/(loss) before income taxes		61,764			42,478			(20,698	)		83,544
Income taxes		(14,993	)		(10,407	)		6,093			(19,307	)
Net income/(loss)	$	46,771		$	32,071		$	(14,605	)	$	64,237

2024 (b)
Service revenues and sales	$	391,406		$	214,775		$	-		$	606,181
Cost of services provided and goods sold		294,936			101,251			-			396,187
Selling, general and administrative expenses		25,883			57,072			19,026			101,981
Depreciation		5,063			8,071			13			13,147
Amortization		26			2,524			-			2,550
Other operating expense		97			62			-			159
Total costs and expenses		326,005			168,980			19,039			514,024
Income/(loss) from operations		65,401			45,795			(19,039	)		92,157
Interest expense		(46	)		(114	)		(267	)		(427	)
Intercompany interest income/(expense)		4,920			3,656			(8,576	)		-
Other income—net		62			18			9,219			9,299
Income/(loss) before income taxes		70,337			49,355			(18,663	)		101,029
Income taxes		(16,851	)		(11,400	)		2,998			(25,253	)
Net income/(loss)	$	53,486		$	37,955		$	(15,665	)	$	75,776

The "Footnotes to Financial Statements " are integral parts of this financial information.


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(in thousands)(unaudited)

										Chemed
	VITAS			Roto-Rooter			Corporate			Consolidated
2025 (a)
Service revenues and sales	$	1,211,341		$	679,300		$	-		$	1,890,641
Cost of services provided and goods sold		954,316			338,312			-			1,292,628
Selling, general and administrative expenses		76,861			183,856			50,968			311,685
Depreciation		15,863			24,899			36			40,798
Amortization		78			7,635			-			7,713
Other operating expense/(income)		305			(80	)		-			225
Total costs and expenses		1,047,423			554,622			51,004			1,653,049
Income/(loss) from operations		163,918			124,678			(51,004	)		237,592
Interest expense		(150	)		(394	)		(685	)		(1,229	)
Intercompany interest income/(expense)		16,436			11,930			(28,366	)		-
Other income—net		170			58			13,742			13,970
Income/(loss) before income taxes		180,374			136,272			(66,313	)		250,333
Income taxes		(45,353	)		(32,344	)		15,851			(61,846	)
Net income/(loss)	$	135,021		$	103,928		$	(50,462	)	$	188,487

2024 (b)
Service revenues and sales	$	1,119,970		$	671,324		$	-		$	1,791,294
Cost of services provided and goods sold		852,347			318,717			-			1,171,064
Selling, general and administrative expenses		73,968			175,683			70,458			320,109
Depreciation		15,288			24,275			38			39,601
Amortization		79			7,538			-			7,617
Other operating expense		160			128			-			288
Total costs and expenses		941,842			526,341			70,496			1,538,679
Income/(loss) from operations		178,128			144,983			(70,496	)		252,615
Interest expense		(138	)		(349	)		(794	)		(1,281	)
Intercompany interest income/(expense)		15,096			10,638			(25,734	)		-
Other income—net		138			64			27,806			28,008
Income/(loss) before income taxes		193,224			155,336			(69,218	)		279,342
Income taxes		(46,517	)		(36,010	)		14,865			(67,662	)
Net income/(loss)	$	146,707		$	119,326		$	(54,353	)	$	211,680

The "Footnotes to Financial Statements " are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING SUMMARIES OF EBITDA
FOR THREE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(in thousands)(unaudited)
										Chemed
	VITAS			Roto-Rooter			Corporate			Consolidated
2025
Net income/(loss)	$	46,771		$	32,071		$	(14,605	)	$	64,237
Add/(deduct):
Interest expense		56			132			269			457
Income taxes		14,993			10,407			(6,093	)		19,307
Depreciation		5,354			8,298			12			13,664
Amortization		26			2,544			-			2,570
EBITDA		67,200			53,452			(20,417	)		100,235
Add/(deduct):
Intercompany interest expense/(income)		(5,685	)		(4,030	)		9,715			-
Interest income		(69	)		(25	)		(2,462	)		(2,556	)
Stock option expense		-			-			6,067			6,067
Legal settlements		2,850			-			-			2,850
Long-term incentive compensation		-			-			(216	)		(216	)
Other		-			-			2,665			2,665
Adjusted EBITDA	$	64,296		$	49,397		$	(4,648	)	$	109,045

2024
Net income/(loss)	$	53,486		$	37,955		$	(15,665	)	$	75,776
Add/(deduct):
Interest expense		46			114			267			427
Income taxes		16,851			11,400			(2,998	)		25,253
Depreciation		5,063			8,071			13			13,147
Amortization		26			2,524			-			2,550
EBITDA		75,472			60,064			(18,383	)		117,153
Add/(deduct):
Intercompany interest expense/(income)		(4,920	)		(3,656	)		8,576			-
Interest income		(59	)		(18	)		(3,589	)		(3,666	)
Stock option expense		-			-			6,038			6,038
Long-term incentive compensation		-			-			3,083			3,083
Acquisition expense		394			(8	)		-			386
Adjusted EBITDA	$	70,887		$	56,382		$	(4,275	)	$	122,994

The "Footnotes to Financial Statements " are integral parts of this financial information.


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING SUMMARIES OF EBITDA
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(in thousands)(unaudited)
										Chemed
	VITAS			Roto-Rooter			Corporate			Consolidated
2025
Net income/(loss)	$	135,021		$	103,928		$	(50,462	)	$	188,487
Add/(deduct):
Interest expense		150			394			685			1,229
Income taxes		45,353			32,344			(15,851	)		61,846
Depreciation		15,863			24,899			36			40,798
Amortization		78			7,635			-			7,713
EBITDA		196,465			169,200			(65,592	)		300,073
Add/(deduct):
Intercompany interest expense/(income)		(16,436	)		(11,930	)		28,366			-
Interest income		(176	)		(58	)		(6,952	)		(7,186	)
Stock option expense		-			-			24,374			24,374
Long-term incentive compensation		-			-			3,294			3,294
Legal settlements		2,850			-			-			2,850
Other		-			-			2,665			2,665
Adjusted EBITDA	$	182,703		$	157,212		$	(13,845	)	$	326,070
2024
Net income/(loss)	$	146,707		$	119,326		$	(54,353	)	$	211,680
Add/(deduct):
Interest expense		138			349			794			1,281
Income taxes		46,517			36,010			(14,865	)		67,662
Depreciation		15,288			24,275			38			39,601
Amortization		79			7,538			-			7,617
EBITDA		208,729			187,498			(68,386	)		327,841
Add/(deduct):
Intercompany interest expense/(income)		(15,096	)		(10,638	)		25,734			-
Interest income		(136	)		(64	)		(11,205	)		(11,405	)
Stock option expense		-			-			23,933			23,933
Long-term incentive compensation		-			-			15,797			15,797
Acquisition expense		1,302			37			-			1,339
Adjusted EBITDA	$	194,799		$	176,833		$	(14,127	)	$	357,505

The "Footnotes to Financial Statements " are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
RECONCILIATION OF ADJUSTED NET INCOME
(in thousands, except per share data)(unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Net income as reported	$	64,237		$	75,776		$	188,487		$	211,680
Add/(deduct) pre-tax cost of:
Stock option expense		6,067			6,038			24,374			23,933
Amortization of reacquired franchise rights		2,352			2,352			7,056			7,056
Long-term incentive compensation		(216	)		3,083			3,294			15,797
Legal settlements		2,850			-			2,850			-
Acquisition expense		-			386			-			1,339
Other		2,665			-			2,665			-
Add/(deduct) tax impacts:
Tax impact of the above pre-tax adjustments (1)		(2,049	)		(1,761	)		(6,512	)		(6,762	)
Excess tax benefits on stock compensation		-			(389	)		(513	)		(4,308	)
Adjusted net income	$	75,906		$	85,485		$	221,701		$	248,735

Diluted Earnings Per Share As Reported
Net income	$	4.46		$	5.00		$	12.89		$	13.88
Average number of shares outstanding		14,409			15,168			14,620			15,253

Adjusted Diluted Earnings Per Share
Adjusted net income	$	5.27		$	5.64		$	15.16		$	16.31
Average number of shares outstanding		14,409			15,168			14,620			15,253

(1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated.

The "Footnotes to Financial Statements " are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
OPERATING STATISTICS FOR VITAS SEGMENT
(unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
OPERATING STATISTICS	2025				2024				2025				2024
Net revenue ($000) (c)
Homecare	$	362,405			$	338,344			$	1,072,014			$	967,981
Inpatient		33,099				29,923				100,145				89,297
Continuous care		19,946				25,799				68,222				74,295
Other		5,807				5,082				16,898				13,900
Subtotal	$	421,257			$	399,148			$	1,257,279			$	1,145,473
Room and board, net		(3,859	)			(3,336	)			(11,277	)			(9,437	)
Contractual allowances		(3,571	)			(2,167	)			(9,875	)			(10,077	)
Medicare cap allowance		(6,086	)			(2,239	)			(24,786	)			(5,989	)
Net Revenue	$	407,741			$	391,406			$	1,211,341			$	1,119,970
Net revenue as a percent of total before Medicare cap allowance
Homecare		86.0		%		84.8		%		85.3		%		84.5		%
Inpatient		7.9				7.5				8.0				7.8
Continuous care		4.7				6.5				5.4				6.5
Other		1.4				1.2				1.3				1.2
Subtotal		100.0				100.0				100.0				100.0
Room and board, net		(0.8	)			(0.8	)			(0.9	)			(0.8	)
Contractual allowances		(0.8	)			(0.5	)			(0.8	)			(0.9	)
Medicare cap allowance		(1.4	)			(0.6	)			(2.0	)			(0.5	)
Net Revenue		97.0		%		98.1		%		96.3		%		97.8		%
Days of care
Homecare		1,685,859				1,622,680				4,980,883				4,621,755
Nursing home		309,192				320,664				923,458				908,013
Respite		12,184				9,952				33,619				26,806
Subtotal routine homecare and respite		2,007,235				1,953,296				5,937,960				5,556,574
Inpatient		28,530				26,524				86,447				79,064
Continuous care		18,309				24,365				62,576				72,335
Total		2,054,074				2,004,185				6,086,983				5,707,973

Number of days in relevant time period		92				92				273				274
Average daily census ( "ADC ") (days)
Homecare		18,325				17,639				18,245				16,867
Nursing home		3,361				3,485				3,383				3,314
Respite		132				108				123				98
Subtotal routine homecare and respite		21,818				21,232				21,751				20,279
Inpatient		310				288				317				289
Continuous care		199				265				229				264
Total		22,327				21,785				22,297				20,832

Total Admissions		17,714				16,775				53,398				51,020
Total Discharges		17,348				16,217				52,931				48,285
Average length of stay (days)		109.7				102.0				121.9				102.2
Median length of stay (days)		18.0				18.0				18.0				17.0

ADC by major diagnosis
Cerebro		44.1		%		43.6		%		44.6		%		43.7		%
Neurological		11.6				13.3				11.8				13.3
Cancer		10.1				10.0				9.8				10.0
Cardio		15.9				16.3				16.0				16.2
Respiratory		7.7				7.1				7.4				7.2
Other		10.6				9.7				10.4				9.6
Total		100.0		%		100.0		%		100.0		%		100.0		%
Admissions by major diagnosis
Cerebro		27.1		%		28.4		%		27.6		%		27.7		%
Neurological		6.9				7.7				6.8				7.9
Cancer		26.6				25.7				25.9				25.1
Cardio		14.3				15.1				14.7				15.7
Respiratory		10.5				9.5				10.9				9.9
Other		14.6				13.6				14.1				13.7
Total		100.0		%		100.0		%		100.0		%		100.0		%

Estimated uncollectible accounts as a percent of revenues		0.9		%		0.6		%		0.8		%		0.9		%

Accounts receivable --
Days of revenue outstanding-excluding unapplied Medicare payments		37.5				37.5				n.a.				n.a.
Days of revenue outstanding-including unapplied Medicare payments		34.0				35.5				n.a.				n.a.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
FOOTNOTES TO FINANCIAL STATEMENTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(unaudited)

(a)	Included in the results of operations for 2025 are the following significant credits/(charges) which may not be indicative of ongoing operations
	(in thousands):
		Three Months Ended September 30, 2025
		VITAS			Roto-Rooter			Corporate			Consolidated

	Stock option expense	$	-		$	-		$	(6,067	)	$	(6,067	)
	Legal settlements		(2,850	)		-			-			(2,850	)
	Amortization of reacquired franchise agreements		-			(2,352	)		-			(2,352	)
	Long-term incentive compensation		-			-			216			216
	Other		-			-			(2,665	)		(2,665	)
	Pretax impact on earnings		(2,850	)		(2,352	)		(8,516	)		(13,718	)
	Income tax benefit on the above		698			546			805			2,049
	After-tax impact on earnings	$	(2,152	)	$	(1,806	)	$	(7,711	)	$	(11,669	)

		Nine Months Ended September 30, 2025
		VITAS			Roto-Rooter			Corporate			Consolidated

	Stock option expense	$	-		$	-		$	(24,374	)	$	(24,374	)
	Amortization of reacquired franchise agreements		-			(7,056	)		-			(7,056	)
	Long-term incentive compensation		-			-			(3,294	)		(3,294	)
	Legal settlements		(2,850	)		-			-			(2,850	)
	Other		-			-			(2,665	)		(2,665	)
	Pretax impact on earnings		(2,850	)		(7,056	)		(30,333	)		(40,239	)
	Excess tax benefits on stock compensation		-			-			513			513
	Income tax benefit on the above		698			1,637			4,177			6,512
	After-tax impact on earnings	$	(2,152	)	$	(5,419	)	$	(25,643	)	$	(33,214	)

(b)	Included in the results of operations for 2024 are the following significant credits/(charges) which may not be indicative of ongoing operations
	(in thousands):
		Three Months Ended September 30, 2024
		VITAS			Roto-Rooter			Corporate			Consolidated

	Stock option expense	$	-		$	-		$	(6,038	)	$	(6,038	)
	Long-term incentive compensation		-			-			(3,083	)		(3,083	)
	Amortization of reacquired franchise agreements		-			(2,352	)		-			(2,352	)
	Acquisition expense		(394	)		8			-			(386	)
	Pretax impact on earnings		(394	)		(2,344	)		(9,121	)		(11,859	)
	Excess tax benefits on stock compensation		-			-			389			389
	Income tax benefit on the above		96			546			1,119			1,761
	After-tax impact on earnings	$	(298	)	$	(1,798	)	$	(7,613	)	$	(9,709	)

		Nine Months Ended September 30, 2024
		VITAS			Roto-Rooter			Corporate			Consolidated

	Stock option expense	$	-		$	-		$	(23,933	)	$	(23,933	)
	Long-term incentive compensation		-			-			(15,797	)		(15,797	)
	Amortization of reacquired franchise agreements		-			(7,056	)		-			(7,056	)
	Acquisition expense		(1,302	)		(37	)		-			(1,339	)
	Pretax impact on earnings		(1,302	)		(7,093	)		(39,730	)		(48,125	)
	Excess tax benefits on stock compensation		-			-			4,308			4,308
	Income tax benefit on the above		317			1,652			4,793			6,762
	After-tax impact on earnings	$	(985	)	$	(5,441	)	$	(30,629	)	$	(37,055	)


(c)	VITAS has 12 large (greater than 450 ADC), 22 medium (greater than 200 but less than 450 ADC) and 25 small (less than 200 ADC) hospice programs. Of Vitas ' 34 Medicare provider numbers, for the current cap year, 25 provider numbers have a Medicare cap cushion of greater than 10%, four provider numbers have a Medicare cap cushion between 0% and 10%, and five provider numbers have a Medicare cap liability.

CONTACT: CONTACT:Michael D. Witzeman(513) 762-6714

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