Viemed Healthcare reported a 26% compound annual revenue growth rate since its IPO and provided 2026 guidance of $317 million in revenue and $66 million in EBITDA during a presentation at the 17th Annual Midwest IDEAS Conference on August 26.
The company, which operates in respiratory care and related services, said it generated $34 million in free cash flow over the trailing 12 months with net capital expenditures of 8% of revenue. For 2026, Viemed expects capital expenditures to reach 9% to 10.5% of revenue. Shares traded up 2.53% to $9.33 in regular trading and rose an additional 1.82% in after-hours to $9.50, reflecting a 52-week range of $6.05 to $12.61 and a market capitalization of $371 million.
Management highlighted a long-term expansion strategy centered on increasing market penetration in ventilator-eligible patient segments. Viemed estimates a total addressable population of 25 million Americans with chronic obstructive pulmonary disease, including 1.25 million Medicare beneficiaries eligible for ventilator therapy. The company currently serves approximately 60,000 of these patients, representing around 5% penetration among Medicare-eligible individuals and about 10% across all payers.
Revenue growth is expected to accelerate to low-20% in 2026, supported by service line expansion. Complex respiratory services accounted for 47% of revenue, followed by sleep apnea therapy at 22%, oxygen therapy at 8%, airway clearance at 7%, temporary healthcare services at 7% and female and maternal health at 8%. Sleep apnea therapy grew 44% last year, while female and maternal health revenue doubled post-acquisition.
The payer mix remains diversified, with Medicare at 35%, Medicare Advantage at 20%, commercial plans at 24%, Medicaid managed care at 10% and other payers at 11%. Reimbursement adjustments tied to the Consumer Price Index are projected at 2.83% for the year. Clinical studies cited by management indicate a 43% reduction in relative mortality and $5,400 in annual savings per patient when therapy begins within 30 days of diagnosis.
Viemed has pursued growth through acquisitions, including HMP for $31 million in June 2023, a joint venture with East Alabama Medical Center for $4.5 million in April 2024 and the pending acquisition of Lehan's for approximately $28 million to $30 million. The company generates roughly $1,050 per month per ventilator under uncapped rental arrangements, with an average patient duration of 17 months.
Management emphasized a shift toward higher-margin, free cash flow-focused operations. Casey Hoyt, CEO and founder, noted that only 5% of eligible Medicare ventilator patients are currently served, framing the opportunity as a significant untapped market. The company has repurchased nearly 700,000 shares under a buyback program authorized for up to 1.8 million to 1.9 million shares, with insiders holding approximately 23% of outstanding shares.
