DVADaVita

If we are unable to successfully maintain, enhance or operate our information systems, implement these technologies in an efficient and cost-effective manner, including through the implementation of such technologies or applications in our clinical operations and laboratory, if these technologies or applications fail to operate as anticipated or do not perform as specified, or if we are unable to successfully implement adequate governance and compliance structures to manage these new technologies, we may be, among other things, unable to efficiently adapt to evolving laws and requirements, unable to remain competitive with others who successfully implement and advance this technology, subject to increased risk under existing laws, regulations and requirements that apply to our business, we may suffer adverse consequences, such as the potential loss of our investment, the failure of the technology to achieve its desired goals, and our patients' safety may be adversely impacted, any the diversion of which could have a material adverse impact on our business, results of operations and financial condition and could materially harm our reputation. management’s attention for other business priorities.

A number The introduction of factors new technologies, treatments or therapies may also impact ESKD growth rates, including, among others, mortality rates for dialysis patients or CKD patients, the growth and aging of the U.S. population, limitation on immigration into the United States, transplant rates, incidence rates for diseases that cause kidney failure such as diabetes and hypertension, growth rates of minority populations with higher than average incidence rates of ESKD or other changes in demand for dialysis treatments over time, including for example, as a result of the development and application of certain innovative technologies, drugs or other treatments such as including, among others, the glucagon-like peptide 1 (GLP-1) receptor agonist, SGLT2 inhibitors, and other classes of drugs or new classes of drugs or other treatments that may, among other things, slow the progression of CKD.

There can be no assurances that we will be able to successfully implement our strategies with respect to integrated kidney care Our IKC and value-based care VBC business operates in a complex, evolving and highly competitive and regulated environment, including, and the success of these initiatives depends on our ability to, among other things, executing on initiatives to reduce the overall cost of care for our IKC patients; maintaining maintain our existing business; recovering our investments; entering and enter into agreements with payors, physicians, third party vendors and others on competitive terms, as appropriate, terms that prove actuarially sound; structuring these agreements and arrangements to comply with evolving rules and regulations, including, among other things, rules and regulations related to fraud and abuse and the use of protected health information. sound.

If we fail to successfully implement, operate and maintain effective and efficient information systems with adequate technological capabilities, if there are deficiencies or defects in the systems and related technology, if the information we rely upon to run our business was is found to be inaccurate or unreliable or unreliable, if we or third parties on which we rely fail to adequately maintain information systems and data integrity effectively, whether due to software deficiencies, human coding or implementation error or otherwise, or if we fail to efficiently and effectively implement ongoing system upgrades or consolidate our information systems to eliminate redundant or obsolete applications, we could face increased legal and compliance risks and competitive disadvantages and we could experience difficulty meeting clinical outcome goals, face regulatory problems, including be subject to sanctions and or penalties, incur increases in operating expenses or suffer other adverse consequences, among other things, any of which could be material.

Changes We are therefore subject to risks relating to potential drivers of changes to these industry averages, which can be caused by, averages or utilization rates, including among other things, changes in physician prescribing practices, including in response to the introduction of new drugs, treatments or technologies, changes in best and/or accepted clinical practice, changes on resulting from the reliance use of artificial intelligence to support clinical practices, changes in private payor or governmental payment criteria or changes in administration policies regarding pharmaceuticals and/or devices, or the introduction of administration policies may negatively impact our ability to obtain sufficient reimbursement levels for the care we provide, which could have a material adverse effect on our business, results of operations, financial condition and cash flows. devices.

In turn, these potential impacts We may continue to face other similar proposed regulations or legislation or ballot initiatives in various states in future years, which could cause us to incur substantial costs to oppose any such proposed requirements or measures, impact our dialysis center development plans, and if passed and/or implemented, could materially reduce our revenues and increase our operating and other costs, adversely impact dialysis centers across the U.S. making certain centers economically unviable, lead to the closure of certain centers, restrict the ability of dialysis patients to obtain and maintain optimal insurance coverage and reduce the number of patients that select commercial insurance plans or Medicare Advantage (MA) plans for their dialysis care, among other things.

If we fail to maintain contracts with payors and other healthcare providers with competitive or favorable terms, either with respect to commercial plans, commercial VBC contracts, MA plans or otherwise, including, without limitation, with respect to reimbursement rates, scope and duration of coverage and in-network benefits, contract term or termination rights, or In addition, if we fail to accurately estimate the price for and or manage our medical costs in an effective manner, whether due to inflationary pressures or otherwise, such that the profitability of our commercial commercial, MA or other value-based products is negatively impacted, it the cumulative effect of these negotiations could have a material adverse effect on our business, results of operations, financial condition and cash flows. flows, and could materially harm our reputation.

The occurrence of any Any of these events could, among other things, result in interruptions, delays, the loss foregoing risks or corruption of data, cessations developments, either individually or in the availability of systems and liability under privacy and security laws, all of which aggregate, could have a material adverse effect on our business, results of operations, financial condition and cash flows, or materially harm our reputation reputation, harm our relationships with our patients, physicians, vendors and trigger other business partners, and could subject us to regulatory actions and actions, private party litigation. litigation and other potential liability.

In addition, if If the frequency, intensity and widening potential geographic scope of natural or other disasters or adverse weather events increase or a number of laws or regulations adopted in response to such changes, increase, we may face increased costs associated with operating our clinics, as well as potential interruptions to and changes in our clinical and business operations, including, without limitation, with respect to increasing costs for energy, supplies of water, and increased compliance or pharmaceuticals or other supplies necessary regulatory risk to the operations extent laws or our clinics. regulations are adopted in response to the increasing frequency of such events.

Failing We operate in a dynamic highly competitive and highly regulated environment, and failing to effectively maintain, operate or upgrade our information systems or those of third-party service providers upon which we rely, including, without limitation, our clinical, billing rely or failing to successfully adopt or adapt to new technologies, including artificial intelligence and collections systems, machine learning, or failure to adhere to federal new treatments and state data sharing and access requirements and regulations therapies could materially adversely affect our business, results of operations, financial condition, condition and cash flows and could materially harm our reputation.

If we These operations and initiatives are not able subject to successfully implement our strategy with respect to our integrated kidney care risk and value-based care initiatives, including maintaining our existing business and further developing our capabilities in a complex and highly regulated environment, it may generate losses or may ultimately be unsuccessful, which could result in a loss of our investments and investments, incurrence of exit costs or could otherwise have a material adverse effect on our growth strategy, could adversely impact our business, results of operations, financial condition and cash flows, and could materially harm our reputation.

Privacy and information security laws are complex, and if we fail to comply with applicable laws, regulations and standards, including with respect to third-party service providers that utilize sensitive personal personally identifiable information on our behalf, or if we fail to properly maintain the integrity of our data, protect our proprietary rights to our systems or defend against cybersecurity attacks, we may be subject to government or private actions due to privacy and security breaches or suffer losses to our data and information technology assets, any of which it could have a material adverse effect on our business, results of operations, financial condition and cash flows or and could materially harm our reputation.

Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial could also have a material adverse effect on our business, cash flows, financial condition, results of operations and/or could materially harm our reputation.

We are, and can may be in the future, subject to audits from the government concerning the billing for our patients. patient.

The increasing use of this rapidly evolving technology may intensify intensifies the cybersecurity and reputational risks we face given its novel and untested nature, particularly to the extent such technology involves the use of PHI or PII.

Any security breach involving the misappropriation, loss or other unauthorized disclosure or use of confidential information, including, among others, PHI, PII, financial data, competitively sensitive information, trade secrets or other proprietary data, whether by us or a third party, could have a material adverse effect on our business, results of operations, financial condition, and cash flows and could materially harm our reputation.

If we fail to comply with the requirements of these and other new laws, regulations or policies, we could be subject to damage awards in private litigation or penalties that, in some cases, would could have a material adverse impact on our business, results of operations, financial condition and cash flows.

Any Further, any breach or failure to comply with any of these covenants could result in a default under our indebtedness.

These forward-looking statements could include, among other things, statements about our balance sheet and liquidity, our expenses, revenues, billings and collections, patient census, the impact of the cybersecurity incident experienced by the Company in 2025, the potential impact of the One Big Beautiful Bill Act (OBBBA) and federal government policy changes or shutdowns, including with respect to federal funding and reimbursement rates of Medicare, Medicare Advantage, Medicaid and other government programs, availability or cost of supplies, including without limitation the impact of evolving trade policies and tariffs and any reduction in clinical and other supplies due to any disruptions experienced by third party vendors, including with respect to our ability to provide home dialysis services, treatment volumes, mix expectation, such as the percentage or number of patients under commercial insurance, the effects on us and our operations including potential impacts to such mix as a result of any interruptions in key functions performed by our third party service providers or suppliers, U.S. administration policies, current macroeconomic, marketplace and labor market conditions, and overall impact on our patients and teammates, as well as other statements regarding our future operations, financial condition and prospects, capital allocation plans, expenses, cost saving initiatives, other strategic initiatives, use of contract labor, government and commercial payment rates, expectations related to value-based care (VBC), integrated kidney care (IKC), Medicare Advantage (MA) plan enrollment and our international operations, expectations regarding increased competition and marketplace changes, including those related to new or potential entrants in the dialysis and pre-dialysis marketplace and the potential impact of innovative technologies, drugs, or other treatments on the dialysis industry, and expectations regarding our stock share repurchase program.

Debt prepayment, extinguishment and modification costs were $20 $14 million in 2024 2025 composed partially of fees incurred in connection with the additional incremental borrowing on our Term Loan A-2 and Term Loan B-2 transactions and partially of deferred financing costs written off for the extinguishment of Term Loan A-1 (Incremental Term Loan A-1), the extension of the maturity date of a portion of our Term Loan B-1 from August 2026 to May 2031 (Extended Term Loan B-1), and prior revolving credit facility, and deferred financing costs and original issue discount written off for the extinguishment of the non-extended Term Loan B-1.

Significant sources of cash during the period included the refinancing of the Term Loan A and revolving line of credit A-1 with a secured Term Loan A-1 A-2 facility in the aggregate principal amount of $1,250 million. $2,000 million, the refinancing of Term Loan B-1 with a secured Term Loan B-2 facility in the aggregate principal amount of $1,878 million and the issuance of 6.75% senior notes due 2033 in the amount of $1,000 million (the 6.75% Senior Notes).

Year ended December 31, Annual change 2025 2024 2023 Amount Percent (dollars in millions) Debt expense $ 580 $ 470 $ 399 $71 17.8% 110 23.4% Debt prepayment, extinguishment and modification costs $ 14 $ 20 $ 8 $12 150.0% (6) (30.0)% Weighted average effective interest rate(1) 5.07 5.51 % 4.52 5.68 % 0.55% (0.17)% Other loss, net $ (103) $ (70) $ (19) $(51) (268.4)% (33) (47.1)% Effective income tax rate 21.8 % 18.3 % 18.7 % (0.4)% 3.5% Effective income tax rate from continuing operations attributable to DaVita Inc.(2) 29.1 % 22.9 % 24.3 % (1.4)% 6.2% Net income attributable to noncontrolling interests $ 332 $ 314 $ 265 $49 18.5% 18 5.7%

Principal payments $ 243 82 $ 315 200 $ 1,911 4,590 $ 6,826 5,288 $ 9,295 10,160 Interest payments on credit facilities and senior notes 500 967 746 489 2,702 Financing 538 1,044 947 402 2,931 Finance leases(2) 28 62 51 75 216 27 60 38 60 185 Operating leases, including imputed interest(2) 508 971 696 864 3,039 528 1,002 703 768 3,001 $ 1,279 1,175 $ 2,315 2,306 $ 3,404 6,278 $ 8,254 6,518 $ 15,252 16,277 Partnership interests subject to put provisions:(3) On-balance sheet:

Year ended December 31, Annual change 2025 2024 2023 Amount Percent (dollars in millions, except per treatment data) Patient care costs $ 7,854 $ 7,498 $ 7,395 $ 103 1.4% 356 4.7% General and administrative 1,253 1,174 1,102 72 6.5% 79 6.7% Depreciation and amortization 633 661 696 (35) (5.0)% (28) (4.2)% Equity investment income (32) (28) (30) 2 6.7% (4) (14.3)% Gain on changes in ownership interests (35) — (35) 35 (100.0)% Total operating expenses and charges $ 9,709 $ 9,270 $ 9,162 $ 107 1.2% 439 4.7% Patient care costs per treatment $ 273.34 $ 258.12 $ 255.78 $ 2.34 0.9% 15.22 5.9%

We expect operating income growth resulting from revenue per treatment improvements, primarily driven by rate increases, the net impact of our continued increases and improvements in our billing and collections process, mix improvement and efforts impacted by the incorporation cyber incident, partially offset by the expiration of oral phosphate binder reimbursement into the bundle, as described below. enhanced premium tax credits for exchange plans.

Our effective income tax rate and effective income tax rate from continuing operations attributable to DaVita Inc. decreased increased in 2024 2025 primarily due to the tax impact of a one-time benefit recognized in 2024 related to non-taxable non-cash gains related to for previously nonconsolidated businesses businesses, a write down of a 2014 tax refund claim recognized in 2025 and a decrease increases in nondeductible non-deductible executive compensation.

U.S. dialysis general and administrative expenses increased primarily due to increases in costs related to information technology (IT) and the cybersecurity incident, as described above, as well as increased compensation expense, expenses, including increased wage rates and headcount, as well as IT-related costs and advocacy costs, including a refund received in 2023 related to 2022 advocacy costs. headcount.

Our IKC operating loss income and adjusted operating loss decreased primarily due to income were impacted by a net increase in shared savings, decreased medical costs for savings and increased revenues related to our special needs plans and plans, partially offset by decreased revenues related to the divestiture of our physician services business. business in 2024.

Other significant uses of cash during the period included regularly scheduled and other principal payments under our senior secured credit facilities totaling approximately $54 $59 million on our prior Term Loan A, $16 million on our new Term Loan A-1, $57 $8 million on Term Loan B-1, additional net repayments of $15 B-1 and $9 million on our revolving line of credit, Term Loan B-2, as well as additional required payments under other debt arrangements.

U.S. dialysis average patient service revenue per treatment increased primarily driven by the incorporation of phosphate binders into the ESRD PPS bundle and an increase in average reimbursement rates from normal annual rate increases increases, including Medicare rate increases, revenue cycle improvements, favorable changes in mix, and an increase in hospital inpatient dialysis rates. base rate.

If we fail to meet the minimum purchase commitments under these certain contracts during any year, we are required to pay the difference to the supplier.