DALLAS, TX -- March 11, 2026 -- Viemed Healthcare, Inc. (NASDAQ: VMD). Stonegate Capital Partners Updates Coverage on Viemed Healthcare, Inc. (NASDAQ: VMD). In FY25, Viemed grew net revenue 21% y/y to $270.3M, generated $14.9M of net income, and delivered record adj. EBITDA of $61.4M. Growth benefited from continued platform momentum and contributions from Lehan’s, with additional tailwinds from the broader shift to in-home care and accelerating sleep/resupply adoption. The key headwind was short-term friction from the updated NCD, which added documentation requirements and tightened coverage criteria, temporarily moderating ventilator patient growth. We note that this did not change reimbursement levels, and vent activity has already started to normalize. Viemed ended the year with free cash flow up 141% y/y.
Quarterly Results: Viemed delivered record 4Q25 results, with net revenue up 25.5% y/y to $76.2M and adj. EBITDA of $18.2M (~23.9% margin), reflecting broad-based momentum and continued benefit from the Lehan acquisition. Gross profit margin was ~58% (vs. ~60% in 4Q24), which management views as sustainable as the mix broadens into lower margin segments. It is expected that the Company will manage operating costs to mitigate GPM compression, with the net result being stable operating profit margins for 2026.
Segment Patient Overview: Viemed’s patient mix continues to improve, with sleep driving outsized patient adds while ventilation remains stable. In 4Q25, vent patients ended at 12,259 (+3.9% y/y) as the updated NCD transition tempered near-term cadence, while PAP therapy patients grew 61.8% y/y to 34,528 and sleep resupply patients increased 49.4% y/y to 36,561, with resupply again exceeding the rental base, supporting a larger recurring revenue stream as cohorts mature.
Payor Update: Viemed’s payor mix is becoming more balanced. In FY25, the mix was Medicare 38%, Medicare Advantage 21%, Commercial 21%, Medicaid/MCO 8%, and Other 12% (vs. FY24: Medicare 41%, Medicare Advantage 21%, Commercial 18%, Medicaid/MCO 7%, Other 13%). Lehan is additive by expanding maternal health into a broader commercial footprint and further reducing Medicare concentration. Management’s key integration priority is migrating Lehan’s onto Viemed’s “payor platform” by extending coverage state-by-state across Viemed’s national payor relationships to scale breast pump volumes beyond the legacy footprint.
Outlook: Management guided FY26 net revenue of $310-$320M and Adjusted EBITDA of $65-$69M, driven by continued sleep/resupply growth and a full-year Lehan’s contribution, with ventilation growth more measured as the NCD transition normalizes. Management also announced a new 2026 buyback authorization backed by ongoing free cash flow.
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 $11.52 to $14.15 with a mid-point of $12.64. Our Forward P/E analysis arrives at a valuation range of $9.13 to $15.22 with a mid-point of $12.18. Our EV/EBITDA valuation results in a range of $12.09 to $13.98 with a mid-point of $13.04. Lastly, we note that VMD is one of the cheapest comps when viewed through an EV/Revenue range.
