Viemed Healthcare Posts Record Q3 Revenue of $80.7 Million, Raises Full-Year Outlook
Viemed Healthcare (NASDAQ: VMD) reported record third-quarter 2026 revenue of $80.7 million on November 5, 2026, a 12.2% increase from the prior-year period, as growth in sleep therapy and equipment sales drove a 32% rise in net income. The home healthcare provider also raised the lower end of its full-year revenue guidance, citing strength across its ventilation, sleep, and maternal health segments.
Net income attributable to the company climbed to $4.6 million, or $0.11 per diluted share, up from $3.5 million, or $0.09 per share, in the third quarter of 2025. Adjusted EBITDA rose approximately 6% year over year to $17.1 million, though the adjusted EBITDA margin of 21.1% remained below the 22.4% recorded a year earlier, even as it improved from 17.6% in the second quarter.
Sleep and Maternal Health Drive Patient Growth
Viemed served 43,861 positive airway pressure (PAP) therapy patients during the quarter, an increase of more than 6,000 from the second quarter and 37.5% higher than a year earlier, Casey Hoyt said on the earnings call. Resupply patients totaled 40,918, representing a roughly 22% increase from the prior year and a 10.5% sequential rise.
Sales of equipment and supplies grew about 23.7% compared with the same period last year, driven by sleep and women’s health services, according to Todd Zehnder. The company plans to enter two additional states per quarter with maternal health services beginning in the fourth quarter, Hoyt said, though he noted that new markets take time to develop after launch, citing Texas as an example where the company continues to build its business.
Ventilator Revenue Rises Despite Coverage Changes
Revenue from ventilator rentals climbed 7.4% from the previous year to $37.5 million, helped by a larger average patient base. According to Hoyt, the ventilator segment posted revenue growth in every quarter of 2026 even after the Centers for Medicare & Medicaid Services issued revised coverage rules in 2025.
When asked about a sequential decline in the quarter-end ventilator patient count, Trae Fitzgerald said the figure represents a point-in-time measure that can fluctuate because of compliance-related billing and hold status. The average number of active patients was higher during the quarter, he said. Zehnder added that some referral sources remain cautious as they adapt to the coverage and approval process, but current trends point to an increase in active ventilator patients in the fourth quarter.
Collections Delays Weigh on Quarterly Cash Flow
In the third quarter, operating cash flow came in at $11.5 million, while free cash flow amounted to $4 million following $7.5 million in net capital expenditures. For the first nine months of 2026, free cash flow totaled $15.2 million, compared with $17.3 million a year earlier.
According to Zehnder, receivables grew in part as audits and other billing and collection issues held up payments, among them delays tied to a system migration. He noted that collections in October were robust and that certain audit-related delays cleared up during October and early November, with collections anticipated to pick up in the fourth quarter. Prepaid expenses also reduced cash flow during the quarter, reflecting annual payments for technology, insurance, and rebates expected to convert to cash in the fourth quarter, Fitzgerald said.
Shows Liquidity Position and Prepares for State Rollouts
As of September 30, the company held $9.7 million in cash alongside $5.3 million drawn on its credit facility. Seasonal gains in sleep resupply are anticipated in the fourth quarter as additional PAP patients move into the supply program, Fitzgerald said. Viemed has set up a fulfillment partner and is finalizing contracts and reimbursement arrangements ahead of new state entries, and has observed improved conversion rates at referral partners that its sales team has visited, Zehnder said.
Reveals Q3 Earnings, Cash Flow Shifts and Expansion Timeline
How much did Viemed Healthcare earn per share in Q3 2026?
The company reported net income of $4.6 million, or $0.11 per diluted share, up from $0.09 per share in the third quarter of 2025.
Why did free cash flow decline year over year?
Free cash flow for the first nine months of 2026 was $15.2 million, down from $17.3 million a year earlier, partly because audits, billing factors, and a system migration delayed collections, Zehnder said.
Which states is Viemed expanding maternal health services into?
The company plans to enter two additional states per quarter beginning in the fourth quarter, though it did not name the specific states during the November 5 call.