Viemed Healthcare, a home respiratory care provider listed on the NASDAQ under the ticker VMD, reported a 26% compounded annual revenue growth since its 2015 initial public offering, alongside nine consecutive years of profitability. At the 17th Annual Midwest IDEAS Conference, management detailed a trailing 12-month free cash flow of $34 million as of the end of 2026, while providing 2026 guidance for revenue in the low 20% growth range, with a midpoint target of $317 million and EBITDA of $66 million.
The company’s market capitalization stood at $371 million, with no net debt and a net cash position. Free cash flow yield was reported at 8%, while capital spending guidance for 2026 was set at 9% to 10.5% of revenue, up from 8% in the trailing 12-month period. Management and the board collectively own approximately 23% of shares, and Viemed has repurchased nearly 700,000 shares under programs totaling up to 1.9 million shares authorized.
Viemed’s core ventilator service generates about $1,050 per month per patient on an uncapped rental basis, with an average patient length of stay of 17 months. The payer mix is distributed across Medicare (35%), Medicare Advantage (20%), commercial (24%), Medicaid managed care (10%), and other categories (11%). Reimbursement rates have remained stable since 2016, with an expected 2.83% adjustment tied to the Consumer Price Index, and the company is exempt from the Competitive Bidding Program through 2028.
Revenue is diversified across service lines, with complex respiratory services accounting for 47%, sleep apnea therapy and resupply at 22%, oxygen therapy at 8%, airway clearance at 7%, healthcare staffing at 7%, and women’s health at 8%. Sleep resupply revenue grew 44% year-over-year, while women’s health revenue doubled following the acquisition of Lehan’s.
The company serves over 198,000 patients across all 50 states, with a dominant presence in 38 to 39 states, particularly in the Deep South, Kentucky, and West Virginia. Viemed estimates it has penetrated just 5% of eligible Medicare ventilator patients and 10% across all payers, leaving significant room for expansion. Approximately 25 million Americans have chronic obstructive pulmonary disease, with about 10% at Stage 4, according to management.
Clinical studies cited by Viemed indicate a 43% reduction in relative mortality and $5,400 in annual savings per patient when therapy begins within the first 30 days. The company has pursued acquisitions to expand its footprint, including Home Medical Products for $31 million in June 2023, a joint venture with East Alabama Medical Center for $4.5 million in April 2024, and Lehan’s for an estimated $28 million to $30 million.
Viemed’s shares closed at $9.33 in regular trading, up 2.53%, and rose to $9.50 in after-hours activity. The stock has traded between $6.05 and $12.61 over the past 52 weeks, with a P/E ratio of 25.96 and an EV/EBITDA multiple of 6.26. InvestingPro assigned a financial health score of 3.33 out of 5, described as "GREAT."
