DALLAS, TX -- May 8, 2026 -- Viemed Healthcare, Inc. (NASDAQ: VMD). Stonegate Capital Partners Updates Coverage on Viemed Healthcare, Inc. (NASDAQ: VMD). Viemed’s 1Q26 results showed improving growth quality, not just reported scale. Sleep, resupply, and maternal health are becoming larger contributors, reducing reliance on legacy ventilation and improving capital efficiency. At the same time, ventilation appears to be moving through the NCD transition, with better new-start activity and improving compliance, though turnover continues to pressure census. In our view, the broader mix is driving stronger FCF conversion as sleep, resupply, and maternal health scale.
Quarterly Results: Viemed reported revenue of $75.4M, net income of $2.6M, and Adj. EBITDA of $14.3M. Revenue was essentially flat q/q, consistent with normal 1Q seasonality following a record 4Q25. Adj. EBITDA margin of ~19.0% reflected normal seasonality and relatively fixed labor costs, while the y/y comparison was distorted by a $2.7M prior-year non-recurring disposal gain. Excluding that item, management indicated underlying Adj. EBITDA margin expanded ~200 bps y/y. The more important takeaway was cash conversion, CFFO increased to $8.1M from $2.9M last year, FCF improved to $2.6M from $(5.7)M, and TTM FCF increased to $36.3M from $23.3M at YE25.
Segments: Sleep remains the clearest growth engine, with PAP therapy patients up 57% y/y to 35,938 and new patient starts up 42%, supporting growth visibility. Resupply patients declined q/q due to normal deductible-reset seasonality, but still grew 47% y/y, expanding the recurring revenue base as PAP cohorts mature. Maternal health also showed early platform leverage, with nearly 4,000 new patients served in markets where Lehan previously had no presence. Ventilation was mixed but improving: vent patients ended at 12,089, up 2% y/y but down q/q due to NCD-related turnover, while March vent starts improved to 759 vs. 692 last year and active vent compliance improved nearly 20%.
Payor Update: Viemed’s mix continues to shift toward a broader, less Medicaredependent revenue base. Ventilator rentals represented 46.9% of revenue vs. 54.4% in 1Q25, while equipment and supply sales rose to 23.2% from 12.7%, driven by sleep resupply and maternal health. Rental revenue declined to 68% of total revenue from 76%, while sales increased to 32% from 24%. Medicare concentration declined to 35% from 41%, while Commercial increased to 23% from 17%, supporting a more balanced reimbursement base.
Outlook: Management raised the low end of its FY26 revenue guidance to $312 - $320M from $310 - $320M, reaffirmed Adj. EBITDA guidance of $65 - $69M, and lowered net CapEx expectations to 9.0% - 10.5% of revenue from 10.0% - 11.5%. In our view, the lower CapEx outlook was one of the more important updates, as 1Q net CapEx was just 7.3% of revenue and supports stronger FCF conversion as sleep, resupply, maternal health, and staffing become a larger share of the mix. Management also continues to expect 3% - 5% sequential revenue growth through the remainder of 2026.
Valuation: We use a DCF, P/E comp analysis and EV/EBITDA comp analysis to guide our valuation. Our DCF arrives at a valuation range of $12.01 to $14.64 with a mid-point of $13.13. Our Forward P/E analysis arrives at a valuation range of $9.20 to $15.33 with a mid-point of $12.27. Our EV/EBITDA valuation results in a range of $12.62 to $14.56 with a mid-point of $13.59. Lastly, we note that VMD is one of the cheapest comps when viewed through an EV/Revenue range.
About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.
SOURCE: Stonegate, Inc.
