Viemed Healthcare’s Earnings Call Highlights Growth and Expansion

Viemed Healthcare US ((VMD)) has held its Q3 earnings call. Read on for the main highlights of the call.

Viemed Healthcare’s recent earnings call conveyed a generally positive sentiment, highlighting robust revenue growth and successful strategic expansions. While there were some concerns about gross margin pressures and a narrowed revenue guidance, the company’s achievements in growth and diversification were emphasized as outweighing these challenges.

Record Revenue Growth

Viemed reported a record revenue of $71.9 million for the third quarter of 2025, marking a 24% increase year-over-year and a 14% sequential growth. This impressive performance underscores the company’s strong market position and effective growth strategies.

Significant Sleep Segment Expansion

The sleep segment saw remarkable expansion, with new sleep patient starts growing by 96% year-over-year. Additionally, the resupply population increased by 51% year-over-year and 33% sequentially, showcasing Viemed’s successful penetration in this market.

Successful Integration of Lehan’s Medical Equipment

The acquisition of Lehan’s Medical Equipment has been a strategic success, contributing 6% to Viemed’s revenue. This integration has not only bolstered the company’s financials but also expanded its product offerings.

Expansion in Maternal Health

Viemed has successfully integrated maternal health products from Lehan’s, positioning this segment as a potential significant growth driver in 2026. This expansion reflects the company’s strategic diversification efforts.

Strong Free Cash Flow Generation

The company reported a trailing 12-month free cash flow of $23.3 million, indicating significant improvement. This financial strength provides Viemed with the flexibility to make strategic investments and pursue growth opportunities.

Narrowed Revenue Guidance

Viemed revised its full-year revenue guidance to a range of $271-273 million, down from the previous range of $271-277 million. This adjustment reflects a more cautious outlook amid current market conditions.

Gross Margin Pressure

Despite improvements in SG&A, Viemed faces gross margin pressures due to diversification into lower-margin services like sleep and staffing. This challenge highlights the balance between growth and maintaining profitability.

Forward-Looking Guidance

Looking ahead, Viemed provided detailed guidance reflecting its strategic initiatives and strong performance. The company forecasts net revenue between $271 million and $273 million and adjusted EBITDA between $60 million and $62 million. These projections underscore Viemed’s focus on high-margin areas and operational efficiencies.

In summary, Viemed Healthcare’s earnings call painted a picture of a company on a strong growth trajectory, driven by strategic acquisitions and expansions. While there are challenges related to gross margins and revenue guidance, the overall sentiment remains positive, with significant achievements in revenue growth and diversification leading the narrative.