Viemed Healthcare FCF Jumps to $36.3M; Ventilator Revenue Drops to 46.9%

VMDVMD

Viemed Healthcare’s first-quarter CFFO rose to $8.1 million from $2.9 million year-over-year, driving TTM FCF to $36.3 million versus $23.3 million at year-end 2025. Ventilator rentals fell to 46.9% of revenue from 54.4% while commercial payors and sleep and resupply segments grew to 23%, with PAP patients up 57%.

1. Q1 Financial Highlights

Viemed Healthcare generated $8.1 million in cash from operations in Q1, up from $2.9 million a year earlier, driving trailing-twelve-month free cash flow to $36.3 million compared with $23.3 million at year-end 2025.

2. Revenue Mix Transformation

Ventilator rental revenue declined to 46.9% of total revenue from 54.4% in the prior-year quarter, while commercial payor services increased to 23% from 17%, reflecting broader service adoption.

3. Growth Drivers in Sleep and Resupply

PAP patient count rose 57% year-over-year to 35,938, new patient starts grew 42%, and resupply patient volumes increased 47%, highlighting strong uptake in non-ventilation segments.

4. Free Cash Flow Conversion

The expanding contribution of higher-margin sleep, resupply and maternal health businesses drove more efficient capital use and improved FCF conversion as the company diversifies beyond legacy ventilation.

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