Contact: Investor Relations
Denver, Colorado, October 29, 2026 — DaVita Inc. (NYSE: DVA) announced financial and operating results for the quarter ended September 30, 2026.
Operating income was $499 million and adjusted operating income was $561 million.
Diluted earnings per share was $3.40 and adjusted diluted earnings per share was $3.82.
• Repurchased 0.6 million shares of the Company's common stock at an average price paid of $186.21 per share.
(1) For definitions of non-GAAP financial measures, see the note titled "Note on Non-GAAP Financial Measures" and related reconciliations beginning on page 14.
(1) For definitions of non-GAAP financial measures, see the note titled "Note on Non-GAAP Financial Measures" and related reconciliations beginning on page 14.
Volume: Total U.S. dialysis treatments for the third quarter of 2026 were 7,329,644, or an average of 92,780 treatments per day, representing a per day increase of 0.1% compared to the second quarter of 2026. Normalized non-acquired treatment growth in the third quarter of 2026 compared to the third quarter of 2025 was 0.4%.
Revenue: The quarter change was primarily driven by normal fluctuations, partially offset by an increase in average reimbursement rates and improvements in payor mix. The year to date change was driven by typical annual rate increases and other normal fluctuations, partially offset by unfavorable changes in payor mix.
Patient care costs: The quarter change was primarily due to increased medical supplies expenses. The year to date change was primarily driven by increased compensation expenses, medical supplies expense, insurance costs and health benefits expenses.
General and administrative: The quarter change was primarily due to decreased professional fees. The year to date change was primarily driven by increases in IT-related costs and compensation expenses, partially offset by costs related to the cybersecurity incident experienced by the Company in 2025.
Goodwill and other asset impairment charges. During the quarter ended September 30, 2026, we recognized non-cash goodwill and other asset impairment charges related to our business in China. The effect was a $62 million impairment charge within operating income, offset by a $1 million tax benefit and $34 million noncontrolling interest credit, resulting in a $27 million net income impact attributable to DaVita Inc.
Share repurchases. During the three months ended September 30, 2026, we repurchased 0.6 million shares for $111 million, at an average price paid of $186.21 per share.
Subsequent to September 30, 2026 through October 27, 2026, the Company has repurchased 0.5 million shares of our common stock for $87 million at an average price paid of $180.57 per share.
(1) For definitions of non-GAAP financial measures, see the note titled "Note on Non-GAAP Financial Measures" and related reconciliations beginning on page 14.
(1) For definitions of non-GAAP financial measures, see the note titled "Note on Non-GAAP Financial Measures" and related reconciliations beginning on page 14.
Center activity: As of September 30, 2026, we provided dialysis services to a total of approximately 298,100 patients at 3,269 outpatient dialysis centers, of which 2,671 centers were located in the United States and 598 centers were located in 14 countries outside of the United States.
Integrated kidney care (IKC): As of September 30, 2026, we had approximately 80,800 patients in risk-based integrated care arrangements representing approximately $6.4 billion in annualized medical spend. We also had an additional 3,100 patients in other integrated care arrangements; we do not include the medical spend for these patients in this annualized medical spend estimate. For an additional description of these metrics, see footnote 5 in the "Supplemental Financial Data" table below. 2 Outlook:
The following forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, including those described below, and actual results may vary materially from these forward-looking measures. We do not provide guidance for operating income or diluted net income per share attributable to DaVita Inc. or operating cash flow on a basis consistent with United States generally accepted accounting principles (GAAP) nor a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis because we are unable to predict certain items contained in the GAAP measures without unreasonable efforts. These current non-GAAP financial measures do not include certain items, including goodwill impairment charges and foreign currency fluctuations, which may be significant. The guidance for our effective income tax rate on adjusted income attributable to DaVita Inc. also excludes the amount of third-party owners' income and related taxes attributable to non-tax paying entities.
Current 2026 Prior 2026 guidance guidance Low High Low High -dollars in millions, except per share data Adjusted operating $2,175 $2,250 $2,150 $2,250 income Adjusted diluted net income per $14.30 $15.20 $14.10 $15.20 share attributable to DaVita Inc. Free cash flow $1,000 $1,250 $1,000 $1,250
The following table outlines normalized treatment days by quarter for 2025 and 2026. Normalized treatment days are adjusted for the mix of days of the week for each quarter and serve as a means to more readily compare calendar effects on each quarter's treatment volume.
Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers. We will be holding a conference call to discuss our results for the third quarter ended September 30, 2026, on October 29, 2026, at 5:00 p.m. Eastern Time. To join the conference call, please dial (877) 918-6630 from the U.S. or (517) 308-9042 from outside the U.S., and provide the operator the password "Earnings." This call is being webcast and can be accessed at the DaVita Investor Relations website investors.davita.com . A replay of the conference call will also be available at investors.davita.com . 3
DaVita Inc. and its representatives may from time to time make written and oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA), including statements in this release, filings with the Securities and Exchange Commission (SEC), reports to stockholders and in meetings with investors and analysts. All statements in this release, during the related presentation or other meetings, other than statements of historical fact, are forward-looking statements and as such are intended to be covered by the safe harbor for "forward-looking statements" provided by the PSLRA. 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 (cyber incident), the impact of federal government policy changes or shutdowns on our business, including with respect to federal funding and reimbursement rates of Medicare, Medicare Advantage (MA), 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, including potential impacts to such mix as a result of 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 outlook, 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), 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 share repurchase program. All statements in this release, other than statements of historical fact, are forward-looking statements. Without limiting the foregoing, statements including the words "expect," "intend," "will," "could," "plan," "anticipate," "believe," "forecast," "guidance," "outlook," "goals," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on DaVita's current expectations and are based solely on information available as of the date of this release. DaVita undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of changed circumstances, new information, future events or otherwise, except as may be required by law. Actual future events and results could differ materially from any forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncertainties. These risks and uncertainties include, among other things:
• external conditions, including those related to general economic, political and global health conditions, including without limitation, the impact of global events and political or governmental volatility, including in the Middle East and Ukraine; the impact of the domestic political environment and related developments on the current healthcare marketplace, our patients and on our business; the impact of infectious diseases or other adverse conditions on our financial condition, the chronic kidney disease population and our patient population; supply chain challenges and disruptions, including without limitation, with respect to certain key services, critical clinical supplies and equipment we obtain from third parties, and including any impacts on our supply chain and cost of supplies as a result of global events, natural disasters or evolving trade policies, including tariffs; the impact on our patients and industry of continued increased competition from dialysis providers and others, including new or potential entrants in the dialysis and pre-dialysis marketplace; the impact of new or innovative technologies, drugs, or other treatments, including our ability to successfully implement new technologies, treatments or therapies in our business such as those related to middle molecule toxin clearance; elevated teammate turnover or labor costs; and our ability to respond to challenging U.S. and global economic and marketplace conditions, including, among other things, our ability to successfully identify cost saving opportunities and execute on related strategic initiatives;
• the concentration of profits generated by higher-paying commercial payor plans for which there is continued downward pressure on average realized payment rates; our ability to negotiate and maintain contracts with these payors on competitive terms or at all; a reduction in the number or percentage of our patients under commercial plans, including, without limitation, as a result of healthcare, immigration or other policies implemented by the U.S. administration, continuing legislative , regulatory or other efforts to restrict or prohibit the use and/or availability of charitable premium assistance, or as a result of payors implementing restrictive plan designs or resulting from negotiations with large commercial payors that we have in the past, and currently are, conducting on a concurrent basis;
• risks arising from laws, regulations or requirements applicable to us or changes thereto, including, without limitation, the One Big Beautiful Bill Act and those related to trade policy, healthcare, charitable premium assistance, privacy, antitrust matters, and acquisition, merger, joint venture or similar transactions and/or labor matters, and potential impacts of changes in interpretation or enforcement thereof or related litigation impacting, among other things, coverage or reimbursement rates for our services or the number of patients enrolled in or that select higher-paying 4 commercial plans, and the risk that we make incorrect assumptions about how our patients will respond to any such developments;
• our ability to successfully implement our strategies with respect to IKC and VBC initiatives that may be impacted by, among other things, changes to the Comprehensive Kidney Care Contracting model and home based dialysis in the desired time frame and in a complex, dynamic and highly regulated environment;
• a reduction in government payment rates under the Medicare End Stage Renal Disease program, state Medicaid or other government-based programs and the impact of the MA benchmark structure and adjustment methodologies;
• our reliance on significant suppliers, service providers and other third party vendors to provide key support to our business operations and enable our provision of services to patients, including, among others, suppliers of certain pharmaceuticals, administrative or other services or critical clinical products; and risks resulting from a closure, reduction, disruption or transition in the services or products provided to us by such suppliers, service providers and third party vendors, which may, among other things, increase our costs or expenses;
• our ability to successfully and cost-effectively maintain, operate or upgrade our information systems or those of third-party service providers upon which we rely and our ability to successfully and cost-effectively adopt or adapt to new technologies, treatments or therapies, including technologies that utilize artificial intelligence;
• legal and compliance risks, such as compliance with complex, and at times, evolving government regulations and requirements, and with additional laws that may apply to our operations as we expand geographically or enter into new lines of business;
• noncompliance by us or our business associates with any privacy or security laws or any security breach by us or a third party, such as the cyber incident, including, among other things, any such non-compliance or breach involving the misappropriation, loss or other unauthorized use or disclosure of confidential information;
• our ability to attract, retain and motivate teammates, including key leadership personnel, our ability to manage potential disruptions to our business and operations, including potential work stoppages, and our ability to manage operating cost increases or productivity decreases that may be related to political unrest, legislative or other changes, union organizing activities, or volatility and uncertainty in the current challenging and highly competitive labor market that has experienced an ongoing nationwide shortage of skilled clinical personnel, among other things;
• changes in practice patterns, pricing, or reimbursement and payment policies or processes related to pharmaceuticals, medical equipment or supplies, including with respect to oral phosphate binders, among other things;
• our ability to develop and maintain relationships with physicians and hospitals, changing affiliation models for physicians, and the emergence of new models of care or other initiatives that, among other things, may erode our patient base and impact reimbursement rates;
• our ability to complete and successfully integrate and operate acquisitions, mergers, dispositions, joint ventures or other strategic transactions on terms favorable to us or at all; and our ability to continue to successfully expand our operations and services in markets outside the United States, or to businesses or products outside of dialysis services;
• the variability of our cash flows, including, without limitation, any extended billing or collections cycles that may be due to, among other things, defects or operational issues in our billing systems such as those experienced during the cyber incident, or defects or operational issues in the billing systems or services of third parties on which we rely; the risk that we may not be able to generate or access sufficient cash in the future to service our indebtedness or to fund our other liquidity needs;
• the effects on us or others of natural or other disasters, public health crises or severe adverse weather events such as hurricanes, earthquakes, fires or flooding;
• factors that may impact our ability to repurchase stock under our share repurchase program and the timing of any such stock repurchases, as well as any use by us of a considerable amount of available funds to repurchase stock;
• our goals and disclosures related to sustainability matters, including, among other things, evolving regulatory requirements affecting environmental, social and governance standards, measurements and reporting requirements ; and
• the other risk factors, trends and uncertainties set forth in our Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 2026, and the risks and uncertainties discussed in any subsequent reports that we file or furnish with the SEC from time to time.
The financial information presented in this release is unaudited and is subject to change as a result of subsequent events or adjustments, if any, arising prior to the filing of the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026. 5
September 30, 2026 December 31, 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS Cash and cash equivalents $ 495,629 $ 676,438 Restricted cash and 83,631 81,309 equivalents Short-term investments 70,673 24,303 Accounts receivable 2,509,014 2,414,690 Inventories 161,464 160,627 Contract assets and other 565,459 494,414 receivables Prepaid and other current 141,147 156,285 assets Income tax receivable 47,807 49,937 Total current assets 4,074,824 4,058,003 Property and equipment, net of accumulated depreciation of 2,731,171 2,812,966 $6,985,414 and $6,602,134, respectively Operating lease 2,434,212 2,397,179 right-of-use assets Intangible assets, net of accumulated amortization of $39,378 and 221,070 222,125 $37,751, respectively Equity method and other 404,305 157,249 investments Long-term investments 38,382 40,966 Other long-term assets 364,506 246,520 Goodwill 7,548,042 7,545,095 $ 17,816,512 $ 17,480,103 LIABILITIES AND EQUITY Accounts payable $ 662,199 $ 696,148 Other liabilities 848,178 893,024 Accrued compensation and 747,911 793,478 benefits Current portion of operating lease 438,132 425,484 liabilities Current portion of 112,491 109,201 long-term debt Income tax payable 23,143 24,359 Due to related party 54,714 199,940 Total current liabilities 2,886,768 3,141,634 Long-term operating lease 2,185,179 2,175,658 liabilities Long-term debt 10,656,624 10,163,988 Other long-term liabilities 100,431 83,516 Deferred income taxes 861,693 756,869 Total liabilities 16,690,695 16,321,665 Commitments and contingencies Noncontrolling interests subject to put 1,484,283 1,532,166 provisions Equity: Preferred stock ($0.001 par value, 5,000 — — shares authorized; none issued) Common stock ($0.001 par value, 450,000 shares authorized; 69,237 shares issued and 63,400 shares 69 69 outstanding at September 30, 2026, and 68,549 shares issued and outstanding at December 31, 2025) Additional paid-in capital 53,979 — Accumulated earnings 301,565 -328,428 (deficit) Treasury stock (5,837 and zero shares, -917,239 -199,940 respectively) Accumulated other -29,461 -122,783 comprehensive loss Total DaVita Inc. shareholders' equity -591,087 -651,082 deficit Noncontrolling interests not subject to 232,621 277,354 put provisions Total equity deficit -358,466 -373,728 $ 17,816,512 $ 17,480,103
Cash flows from Nine months ended operating September 30, activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 887,647 $ 747,685 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and 510,825 528,645 amortization Goodwill and other asset impairment 62,176 — charges Loss on extinguishment of — 4,253 debt Stock-based 83,378 101,559 compensation expense Deferred income 91,207 68,989 taxes Equity investment 887 91,532 loss, net Other non-cash 14,668 11,522 losses, net Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
Accounts receivable -67,585 -144,688 Inventories 1,103 913 Other current assets -50,210 -153,428 Other long-term -47,733 -21 assets Accounts payable -47,803 97,879 Accrued compensation -64,671 19,279 and benefits Other current -50,713 16,462 liabilities Income taxes 453 -30,635 Other long-term 6,101 -14,172 liabilities Net cash provided by operating 1,329,730 1,345,774 activities Cash flows from investing activities: Additions of property and -431,323 -430,434 equipment Acquisitions -41,693 -118,337 Proceeds from asset 16,297 32,337 and business sales Purchase of debt investments -66,788 -15,842 held-to-maturity Purchase of other debt and equity -29,832 -3,352 investments Proceeds from debt investments 17,020 38,051 held-to-maturity Proceeds from sale of other debt and 4,382 6,706 equity investments Purchase of equity -221,839 -2,466 method investments Distributions from equity method 329 1,514 investments Net cash used in -753,447 -491,823 investing activities Cash flows from financing activities: Borrowings 3,511,331 4,672,170 Payments on -3,021,008 -3,880,721 long-term debt Deferred and debt related financing -10,602 -26,416 costs Purchase of treasury stock from related -419,318 -430,286 party Other purchases of -450,862 -1,033,887 treasury stock Distributions to noncontrolling -243,786 -232,721 interests Net proceeds from issuance of common 14,509 17,583 stock under employee stock plans Payment of tax withholdings on net share -68,968 -33,764 settlements of equity awards Contributions from noncontrolling 4,636 3,999 interests Proceeds from sales of additional — 169 noncontrolling interests Purchases of noncontrolling -70,593 -16,385 interests Net cash used in -754,661 -960,259 financing activities Effect of exchange rate changes on cash, -109 21,897 cash equivalents and restricted cash Net decrease in cash, cash -178,487 -84,411 equivalents and restricted cash Cash, cash equivalents and restricted 757,747 879,825 cash at beginning of the year Cash, cash equivalents and restricted $ 579,260 $ 795,414 cash at end of the period
(unaudited) (dollars in millions and shares in thousands, except per treatment and patient data)
Nine months Three September ended months 30, June 30, Septemb… ended 2026 2026 30, 2026 ────────────────────────────────────────────────────────────────────────────── 1. Consoli… business metrics: Operati… 14.0 % 16.3 % 14.8 % margin Adjusted operati… margin 15.7 % 16.3 % 15.4 % excludi… certain items(1) General and adminis… expenses as a 11.4 % 11.9 % 11.9 % percent of consoli… revenue… Effecti… income tax rate 24.9 % 21.1 % 21.8 % on income Effecti… income tax rate on income 28.7 % 25.6 % 26.5 % attribu… to DaVita Inc.(1) Effecti… income tax rate on adjusted 26.6 % 25.6 % 25.8 % income attribu… to DaVita Inc.(1) 2. Summary of financi… results: Revenue… U.S. dialysis patient $ 3,050 $ 3,012 $ 9,004 services and other Other—A… services Integra… kidney 144 162 422 care Other U.S. 10 9 29 ancilla… Interna… dialysis patient 398 386 1,156 service and other 552 557 1,606 Elimina… -24 -14 -62 Total consoli… $ 3,578 $ 3,554 $ 10,548 revenues Operati… income (loss): U.S. $ 544 $ 538 $ 1,588 dialysis Other—A… services Integra… kidney 4 40 24 care Other U.S. -6 -8 -20 ancilla… Interna… -16 25 40 -19 57 44 Corpora… adminis… -26 -16 -72 support expenses Total consoli… $ 499 $ 579 $ 1,560 operati… income
(dollars in millions and shares in thousands, except per treatment and patient data)
(dollars in millions and shares in thousands, except per treatment and patient data)
Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers. (1) These are non-GAAP financial measures. For a reconciliation of these non- GAAP financial measures to their most comparable measure calculated and presented in accordance with GAAP, and for a definition of adjusted amounts, see attached reconciliation schedules. Adjusted operating income margin is adjusted operating income divided by consolidated revenues.
(2) General and administrative expenses include certain corporate support, long- term incentive compensation and advocacy costs.
(3) Normalized treatment days reflect treatment days adjusted to normalize for the mix of days of the week in a given quarter.
(4) Normalized non-acquired treatment growth reflects year-over-year growth in treatment volume, adjusted to exclude acquisitions and other similar transactions, and further adjusted to normalize for the number and mix of treatment days in a given quarter versus the prior year quarter.
(5) Integrated care metrics: The aggregate amount of medical spend associated with risk-based integrated care arrangements that we disclose includes both medical costs included in our reported expenses for certain risk-based arrangements (such as our SNPs), as well as the aggregate estimated benchmark amount above or below which we will incur profit or loss from value-based care (VBC) arrangements under which third-party medical costs are not included in our reported results. A number of our VBC contracts are subject to complex or novel patient attribution mechanics and benchmark adjustments, some of which are based on information not reported to us until periods after we report our quarterly results. As a result, our estimates of our patients under, and the dollar amount of, our value-based contracts remain subject to estimation uncertainty.
(6) The debt amounts presented as of September 30, 2026 and June 30, 2026 exclude approximately $63.1 and $66.5, respectively, of debt discount, premium and other deferred financing costs related to our senior secured credit facilities and senior notes in effect or outstanding at that time.
(7) This is a non-GAAP measure. See "Calculation of Leverage Ratio" in non-GAAP reconciliations. 12
Under our amended senior secured credit facilities (the Amended Credit Agreement) dated June 8, 2026, the leverage ratio is defined as (a) all funded debt, minus unrestricted cash and cash equivalents (including short-term investments) divided by (b) "Consolidated EBITDA." The leverage ratio determines the interest rate margin payable by the Company for its Term Loan A-2 and revolving line of credit under the Amended Credit Agreement by establishing the margin over the base interest rate (SOFR plus credit spread adjustment) that is applicable. The calculation below is based on the last 12 months of "Consolidated EBITDA" and "Consolidated net debt" at the end of each reported period, each as defined in the credit agreement that was in effect at the end of each such period (the Applicable Credit Agreement). The calculation of "Consolidated EBITDA" below sets forth, among other things, certain pro forma adjustments described in the Applicable Credit Agreement, including, pro forma adjustments for acquisitions or divestitures that occurred during the period and certain projected net cost savings, expense reductions and cost synergies. These pro forma adjustments are determined according to specified criteria set forth in the Applicable Credit Agreement, and as a result, the total adjustments calculated may not be comparable to the Company's estimates for other purposes, including as operating performance measures. The Company's management believes the presentation of "Consolidated EBITDA" is useful to investors to enhance their understanding of the Company's leverage ratio under the Applicable Credit Agreement and should not be evaluated for any other purpose. The leverage ratio calculated by the Company is a non-GAAP measure and should not be considered a substitute for the ratio of total debt to operating income, determined in accordance with GAAP. The Company's calculation of its leverage ratio might not be calculated in the same manner as, and thus might not be comparable to, similarly titled measures of other companies.
Twelve September months 30, June 30, ended 2026 2026 ────────────────────────────────────────────────────────────────────────────── Net income from continuing operations $ 895 $ 822 attributab… to DaVita Inc. Income 324 303 taxes Interest 543 540 expense Depreciati… and 698 710 amortizati… Impairment 62 — charges Net income attributab… to 299 342 noncontrol… interests Stock-sett… stock-based 117 127 compensati… Debt extinguish… and 11 16 modificati… costs Expected cost savings and 10 7 expense reductions Other 84 149 Consolidat… $ 3,042 $ 3,018 EBITDA September June 30, 30, 2026 2026 Total debt, excluding debt discount and $ 10,832 $ 10,848 other deferred financing costs(1) Less: Cash and cash equivalents -563 -685 including short-term investment… Consolidat… $ 10,269 $ 10,162 net debt Last twelve months $ 3,042 $ 3,018 Consolidat… EBITDA Leverage 3.38x 3.37x ratio Maximum leverage ratio permitted 5.00x 5.00x under the Credit Agreement
Certain columns or rows may not sum or recalculate due to the presentation of rounded numbers. (1) The debt amounts presented as of September 30, 2026 and June 30, 2026 exclude approximately $63.1 and $66.5, respectively, of debt discount, premium and other deferred financing costs related to our senior secured credit facilities and senior notes in effect or outstanding at that time.
(2) This excludes amounts not readily convertible to cash related to the Company's non-qualified deferred compensation plans for all periods presented. 13
As used in this press release, the term "adjusted" refers to non-GAAP measures as follows, each as reconciled to its most comparable GAAP measure as presented in the non-GAAP reconciliations in the notes to this press release: (i) for income and expense measures, the term "adjusted" refers to operating performance measures that exclude certain items such as, but not limited to, cybersecurity costs, impairment charges, gains or losses on ownership changes, restructuring charges, accruals for legal matters, and debt extinguishment and modification costs; and (ii) the term "effective income tax rate on adjusted income attributable to DaVita Inc." represents the Company’s effective tax rate excluding applicable non-GAAP items and the tax associated with them as well as noncontrolling owners’ income, which primarily relates to non-tax paying entities.
These non-GAAP or "adjusted" measures are presented because management believes these measures are useful adjuncts to GAAP results. However, these non-GAAP measures should not be considered alternatives to the corresponding measures determined under GAAP.
Specifically, management uses adjusted operating income, adjusted net income attributable to DaVita Inc. and adjusted diluted net income per share attributable to DaVita Inc. to compare and evaluate our performance period over period and relative to competitors, to analyze the underlying trends in our business, to establish operational budgets and forecasts and for incentive compensation purposes. We believe these non-GAAP measures also are useful to investors and analysts in evaluating our performance over time and relative to competitors, as well as in analyzing the underlying trends in our business. Furthermore, we believe these presentations enhance a user's understanding of our normal consolidated results by excluding certain items which we do not believe are indicative of our ordinary results of operations. As a result, adjusting for these amounts allows for comparison to our normalized prior period results.
The effective income tax rate on adjusted income attributable to DaVita Inc. excludes noncontrolling owners' income and certain non-deductible and other charges which we do not believe are indicative of our ordinary results. Accordingly, we believe these adjusted effective income tax rates are useful to management, investors and analysts in evaluating our performance and establishing expectations for income taxes incurred on our ordinary results attributable to DaVita Inc.
Finally, free cash flow represents net cash provided by operating activities less distributions to noncontrolling interests, development capital expenditures, and maintenance capital expenditures; plus contributions from noncontrolling interests and proceeds from the sale of self-developed properties. Management uses this measure to assess our ability to fund acquisitions and meet our debt service obligations and we believe this measure is equally useful to investors and analysts as an adjunct to cash flows from operating activities and other measures under GAAP.
It is important to bear in mind that these non-GAAP "adjusted" measures are not measures of financial performance or liquidity under GAAP and should not be considered in isolation from, nor as substitutes for, their most comparable GAAP measures.
The following tables provide reconciliations of the non-GAAP financial measures presented in this press release to their most comparable GAAP measures. 14
(dollars in millions, except per share data) Adjusted net income and adjusted diluted net income per share attributable to DaVita Inc.:
Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers. Adjusted operating income:
Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers.
Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers.
Certain columns or rows may not sum or recalculate due to the presentation of rounded numbers
Nine months Three September ended months 30, June 30, September ended 2026 2026 30, 2026 ────────────────────────────────────────────────────────────────────────────── Effecti… income tax rates on income attribu… to DaVita Inc.: Income before $ 359 $ 435 $ 1,135 income taxes Noncont… owners’ income primari… attribu… -46 -78 -202 to non-tax paying entities Income before income taxes $ 313 $ 357 $ 933 attribu… to DaVita Inc. Income tax $ 89 $ 92 $ 247 expense Income tax benefit (expens… 1 -1 — attribu… to noncont… interes… Income tax expense attribu… $ 90 $ 91 $ 247 to DaVita Inc. Effecti… income tax rate on income 28.7 % 25.6 % 26.5 % attribu… to DaVita Inc. Effecti… income tax rate on adjusted income attribu… to DaVita Inc.: Income before $ 359 $ 435 $ 1,135 income taxes Goodwill and other 62 — 62 asset impairm… Noncont… owners’ income primari… attribu… -46 -78 -202 to non-tax paying entities Goodwill and other asset impairm… -34 — -34 attribu… to noncont… interes… Adjusted income before income taxes $ 341 $ 357 $ 961 attribu… to DaVita Inc. Income tax $ 89 $ 92 $ 247 expense Income tax benefit (expens… related to: Goodwill and other 1 — 1 asset impairm… Noncont… 1 -1 — interes… Income tax on adjusted income $ 90 $ 91 $ 248 attribu… to DaVita Inc. Effecti… income tax rate on adjusted 26.6 % 25.6 % 25.8 % income attribu… to DaVita Inc.
Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers.
Certain columns or rows may not sum or recalculate due to the presentation of rounded numbers.
September Twelve September 30, June 30, 30, months ended 2026 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net cash provided by $ 1,870 $ 2,193 $ 1,893 operating activities Adjustments to reconcile net cash provided by operating activities to free cash flow: Distributi… to -335 -323 -341 noncontrol… interests Contributi… from 8 9 8 noncontrol… interests Maintenance capital -417 -424 -423 expenditur… Development capital -160 -159 -178 expenditur… Proceeds from sale of 14 12 36 self-devel… properties Free cash $ 980 $ 1,308 $ 996 flow
Certain columns or rows may not sum or recalculate due to the presentation of rounded numbers. (1) Represents non-cash goodwill and other asset impairment charges related to our business in China, of which a portion was allocated to noncontrolling interests. These charges are excluded from our non-GAAP metrics because they do not occur in or reflect the ordinary course of our ongoing business, are inherently unpredictable and are non-cash amounts, the exclusion of which facilitates comparison of historical, current and forecasted financial results.
(2) Represents charges recognized to work to remediate a cybersecurity incident and restore systems following the occurrence of the incident in the second quarter of 2025. We have excluded these charges from our non-GAAP metrics as we do not believe they are indicative of our ordinary results of operations.
(3) Represents non-cash impairment and restructuring charges included in other losses related to our equity investment in Mozarc Medical Holding LLC. This loss does not represent a normal and recurring cost of operating our business or generating returns from investments and may obscure analysis of underlying trends and financial performance.
(4) Represents the write-down of a tax receivable related to a 2014 tax refund claim. The claim related to estimated tax expense associated with a legal matter previously presented as a non-GAAP adjustment. We have excluded this charge from our non-GAAP metrics because, among other things, we do not believe it is indicative of our ordinary results of operations because the charge is significant and may obscure analysis of underlying trends and financial performance of our current business.
(5) Maintenance capital expenditures represent capital expenditures to maintain the productive capacity of the business and include those made for investments in information technology, dialysis center renovations, capital asset replacements, and any other capital expenditures that are not development or acquisition expenditures.
(6) Development capital expenditures principally represent capital expenditures (other than acquisition expenditures) made to expand the productive capacity of the business and include those for new U.S. and international dialysis center developments, dialysis center expansions and relocations, and new or expanded contracted hospital operations. 17
Full text with the tables
Contact: Investor Relations
DaVita Inc.
ir@davita.com
DaVita Inc. 3rd Quarter 2026 Results
Denver, Colorado, October 29, 2026 — DaVita Inc. (NYSE: DVA) announced financial
and operating results for the quarter ended September 30, 2026.
Financial and operating highlights for the quarter ended September 30, 2026:
•
Consolidated revenues were $3.578 billion.
•
Operating income was $499 million and adjusted operating income was $561
million.
•
Diluted earnings per share was $3.40 and adjusted diluted earnings per share was
$3.82.
• Operating cash flow was $519 million and free cash flow was $276 million.
• Repurchased 0.6 million shares of the Company's common stock at an average
price paid of $186.21 per share.
Nine
months
Three ended
months Septemb… June 30, Septemb…
ended 30, 2026 2026 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net -dollars
income in
attrib… millions,
to except
DaVita per share
Inc.: data
Net $ 223 $ 265 $ 686 $ 513
income
Diluted
per $ 3.40 $ 4.02 $ 10.27 $ 6.62
share
Adjust…
net $ 250 $ 265 $ 713 $ 576
income…
Adjust…
diluted $ 3.82 $ 4.02 $ 10.67 $ 7.44
per
share(…
(1) For definitions of non-GAAP financial measures, see the note titled "Note on
Non-GAAP Financial Measures" and related reconciliations beginning on page 14.
…
… …
… …
… … …
… … …
… … … … …
──────────────────────────────────────────────────────────────────────────────
… … … … … …
…
…
…
$ … … % $ … … % $ % … …
$ … … % $ … … % $ % … …
(1) For definitions of non-GAAP financial measures, see the note titled "Note on
Non-GAAP Financial Measures" and related reconciliations beginning on page 14.
U.S. dialysis metrics:
Volume: Total U.S. dialysis treatments for the third quarter of 2026 were
7,329,644, or an average of 92,780 treatments per day, representing a per day
increase of 0.1% compared to the second quarter of 2026. Normalized non-acquired
treatment growth in the third quarter of 2026 compared to the third quarter of
2025 was 0.4%.
T…
m…
e… Ye…
S… J… S… Ni… Se… to
3… 3… Q… 3… mo… 30, da…
2… 2… c… 2… en… 20… ch…
──────────────────────────────────────────────────────────────────────────────
-…
in
m…
e…
p…
t…
d…
…
… $ 4… $ 4… $ -0… $ 4… $ 4… $ 1…
…
…
…
… $ 2… $ 2… $ 2.… $ 2… $ 2… $ 8…
…
…
…
… $ 3… $ 3… $ -15 $ 9… $ 9… $ 50
…
1
Primary drivers of the changes in the table above were as follows:
Revenue: The quarter change was primarily driven by normal fluctuations,
partially offset by an increase in average reimbursement rates and improvements
in payor mix. The year to date change was driven by typical annual rate
increases and other normal fluctuations, partially offset by unfavorable changes
in payor mix.
Patient care costs: The quarter change was primarily due to increased medical
supplies expenses. The year to date change was primarily driven by increased
compensation expenses, medical supplies expense, insurance costs and health
benefits expenses.
General and administrative: The quarter change was primarily due to decreased
professional fees. The year to date change was primarily driven by increases in
IT-related costs and compensation expenses, partially offset by costs related to
the cybersecurity incident experienced by the Company in 2025.
Certain items impacting the quarter:
Goodwill and other asset impairment charges. During the quarter ended September
30, 2026, we recognized non-cash goodwill and other asset impairment charges
related to our business in China. The effect was a $62 million impairment charge
within operating income, offset by a $1 million tax benefit and $34 million
noncontrolling interest credit, resulting in a $27 million net income impact
attributable to DaVita Inc.
Share repurchases. During the three months ended September 30, 2026, we
repurchased 0.6 million shares for $111 million, at an average price paid of
$186.21 per share.
Subsequent to September 30, 2026 through October 27, 2026, the Company has
repurchased 0.5 million shares of our common stock for $87 million at an average
price paid of $180.57 per share.
Financial and operating metrics:
Three
months
ended
September Twelve
30, months
2026 ended
(dollars September
Cash in 30,
flow: millions) 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Operating $ 519 $ 842 $ 1,870 $ 1,893
cash flow
Free cash $ 276 $ 604 $ 980 $ 996
flow(1)
(1) For definitions of non-GAAP financial measures, see the note titled "Note on
Non-GAAP Financial Measures" and related reconciliations beginning on page 14.
Three months ended Nine months ended
September 30, 2026 September 30, 2026
──────────────────────────────────────────────────────────────────────────────
Effective income tax
rate on:
Income 24.9 % 21.8 %
Income attributable to 28.7 % 26.5 %
DaVita Inc.(1)
Adjusted income
attributable to DaVita 26.6 % 25.8 %
Inc.(1)
(1) For definitions of non-GAAP financial measures, see the note titled "Note on
Non-GAAP Financial Measures" and related reconciliations beginning on page 14.
Center activity: As of September 30, 2026, we provided dialysis services to a
total of approximately 298,100 patients at 3,269 outpatient dialysis centers, of
which 2,671 centers were located in the United States and 598 centers were
located in 14 countries outside of the United States.
Integrated kidney care (IKC): As of September 30, 2026, we had approximately
80,800 patients in risk-based integrated care arrangements representing
approximately $6.4 billion in annualized medical spend. We also had an
additional 3,100 patients in other integrated care arrangements; we do not
include the medical spend for these patients in this annualized medical spend
estimate. For an additional description of these metrics, see footnote 5 in the
"Supplemental Financial Data" table below.
2
Outlook:
The following forward-looking measures and the underlying assumptions involve
significant known and unknown risks and uncertainties, including those described
below, and actual results may vary materially from these forward-looking
measures. We do not provide guidance for operating income or diluted net income
per share attributable to DaVita Inc. or operating cash flow on a basis
consistent with United States generally accepted accounting principles (GAAP)
nor a reconciliation of forward-looking non-GAAP financial measures to the most
directly comparable GAAP financial measures on a forward-looking basis because
we are unable to predict certain items contained in the GAAP measures without
unreasonable efforts. These current non-GAAP financial measures do not include
certain items, including goodwill impairment charges and foreign currency
fluctuations, which may be significant. The guidance for our effective income
tax rate on adjusted income attributable to DaVita Inc. also excludes the amount
of third-party owners' income and related taxes attributable to non-tax paying
entities.
Current 2026 Prior 2026
guidance guidance
Low High Low High
-dollars in
millions, except
per share data
Adjusted
operating $2,175 $2,250 $2,150 $2,250
income
Adjusted
diluted net
income per $14.30 $15.20 $14.10 $15.20
share
attributable to
DaVita Inc.
Free cash flow $1,000 $1,250 $1,000 $1,250
The following table outlines normalized treatment days by quarter for 2025 and
2026. Normalized treatment days are adjusted for the mix of days of the week for
each quarter and serve as a means to more readily compare calendar effects on
each quarter's treatment volume.
Normalized Treatment Days
2026 2025
Q1 76.5 76.9
Q2 78.0 78.0
Q3 79.2 78.8
Q4 78.8 79.5
Total 312.4 313.2
Certain columns, rows or percentages may not sum or recalculate due to the
presentation of rounded numbers.
We will be holding a conference call to discuss our results for the third
quarter ended September 30, 2026, on October 29, 2026, at 5:00 p.m. Eastern
Time. To join the conference call, please dial (877) 918-6630 from the U.S. or
(517) 308-9042 from outside the U.S., and provide the operator the password
"Earnings." This call is being webcast and can be accessed at the DaVita
Investor Relations website investors.davita.com . A replay of the conference
call will also be available at investors.davita.com .
3
Forward looking statements
DaVita Inc. and its representatives may from time to time make written and oral
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 (PSLRA), including statements in this release,
filings with the Securities and Exchange Commission (SEC), reports to
stockholders and in meetings with investors and analysts. All statements in this
release, during the related presentation or other meetings, other than
statements of historical fact, are forward-looking statements and as such are
intended to be covered by the safe harbor for "forward-looking statements"
provided by the PSLRA. 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 (cyber incident), the
impact of federal government policy changes or shutdowns on our business,
including with respect to federal funding and reimbursement rates of Medicare,
Medicare Advantage (MA), 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,
including potential impacts to such mix as a result of 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 outlook, 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), 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 share repurchase program. All
statements in this release, other than statements of historical fact, are
forward-looking statements. Without limiting the foregoing, statements including
the words "expect," "intend," "will," "could," "plan," "anticipate," "believe,"
"forecast," "guidance," "outlook," "goals," and similar expressions are intended
to identify forward-looking statements. These forward-looking statements are
based on DaVita's current expectations and are based solely on information
available as of the date of this release. DaVita undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result of
changed circumstances, new information, future events or otherwise, except as
may be required by law. Actual future events and results could differ materially
from any forward-looking statements due to numerous factors that involve
substantial known and unknown risks and uncertainties. These risks and
uncertainties include, among other things:
• external conditions, including those related to general economic, political
and global health conditions, including without limitation, the impact of global
events and political or governmental volatility, including in the Middle East
and Ukraine; the impact of the domestic political environment and related
developments on the current healthcare marketplace, our patients and on our
business; the impact of infectious diseases or other adverse conditions on our
financial condition, the chronic kidney disease population and our patient
population; supply chain challenges and disruptions, including without
limitation, with respect to certain key services, critical clinical supplies and
equipment we obtain from third parties, and including any impacts on our supply
chain and cost of supplies as a result of global events, natural disasters or
evolving trade policies, including tariffs; the impact on our patients and
industry of continued increased competition from dialysis providers and others,
including new or potential entrants in the dialysis and pre-dialysis
marketplace; the impact of new or innovative technologies, drugs, or other
treatments, including our ability to successfully implement new technologies,
treatments or therapies in our business such as those related to middle molecule
toxin clearance; elevated teammate turnover or labor costs; and our ability to
respond to challenging U.S. and global economic and marketplace conditions,
including, among other things, our ability to successfully identify cost saving
opportunities and execute on related strategic initiatives;
• the concentration of profits generated by higher-paying commercial payor plans
for which there is continued downward pressure on average realized payment
rates; our ability to negotiate and maintain contracts with these payors on
competitive terms or at all; a reduction in the number or percentage of our
patients under commercial plans, including, without limitation, as a result of
healthcare, immigration or other policies implemented by the U.S.
administration, continuing legislative , regulatory or other efforts to restrict
or prohibit the use and/or availability of charitable premium assistance, or as
a result of payors implementing restrictive plan designs or resulting from
negotiations with large commercial payors that we have in the past, and
currently are, conducting on a concurrent basis;
• risks arising from laws, regulations or requirements applicable to us or
changes thereto, including, without limitation, the One Big Beautiful Bill Act
and those related to trade policy, healthcare, charitable premium assistance,
privacy, antitrust matters, and acquisition, merger, joint venture or similar
transactions and/or labor matters, and potential impacts of changes in
interpretation or enforcement thereof or related litigation impacting, among
other things, coverage or reimbursement rates for our services or the number of
patients enrolled in or that select higher-paying
4
commercial plans, and the risk that we make incorrect assumptions about how our
patients will respond to any such developments;
• our ability to successfully implement our strategies with respect to IKC and
VBC initiatives that may be impacted by, among other things, changes to the
Comprehensive Kidney Care Contracting model and home based dialysis in the
desired time frame and in a complex, dynamic and highly regulated environment;
• a reduction in government payment rates under the Medicare End Stage Renal
Disease program, state Medicaid or other government-based programs and the
impact of the MA benchmark structure and adjustment methodologies;
• our reliance on significant suppliers, service providers and other third party
vendors to provide key support to our business operations and enable our
provision of services to patients, including, among others, suppliers of certain
pharmaceuticals, administrative or other services or critical clinical products;
and risks resulting from a closure, reduction, disruption or transition in the
services or products provided to us by such suppliers, service providers and
third party vendors, which may, among other things, increase our costs or
expenses;
• our ability to successfully and cost-effectively maintain, operate or upgrade
our information systems or those of third-party service providers upon which we
rely and our ability to successfully and cost-effectively adopt or adapt to new
technologies, treatments or therapies, including technologies that utilize
artificial intelligence;
• legal and compliance risks, such as compliance with complex, and at times,
evolving government regulations and requirements, and with additional laws that
may apply to our operations as we expand geographically or enter into new lines
of business;
• noncompliance by us or our business associates with any privacy or security
laws or any security breach by us or a third party, such as the cyber incident,
including, among other things, any such non-compliance or breach involving the
misappropriation, loss or other unauthorized use or disclosure of confidential
information;
• our ability to attract, retain and motivate teammates, including key
leadership personnel, our ability to manage potential disruptions to our
business and operations, including potential work stoppages, and our ability to
manage operating cost increases or productivity decreases that may be related to
political unrest, legislative or other changes, union organizing activities, or
volatility and uncertainty in the current challenging and highly competitive
labor market that has experienced an ongoing nationwide shortage of skilled
clinical personnel, among other things;
• changes in practice patterns, pricing, or reimbursement and payment policies
or processes related to pharmaceuticals, medical equipment or supplies,
including with respect to oral phosphate binders, among other things;
• our ability to develop and maintain relationships with physicians and
hospitals, changing affiliation models for physicians, and the emergence of new
models of care or other initiatives that, among other things, may erode our
patient base and impact reimbursement rates;
• our ability to complete and successfully integrate and operate acquisitions,
mergers, dispositions, joint ventures or other strategic transactions on terms
favorable to us or at all; and our ability to continue to successfully expand
our operations and services in markets outside the United States, or to
businesses or products outside of dialysis services;
• the variability of our cash flows, including, without limitation, any extended
billing or collections cycles that may be due to, among other things, defects or
operational issues in our billing systems such as those experienced during the
cyber incident, or defects or operational issues in the billing systems or
services of third parties on which we rely; the risk that we may not be able to
generate or access sufficient cash in the future to service our indebtedness or
to fund our other liquidity needs;
• the effects on us or others of natural or other disasters, public health
crises or severe adverse weather events such as hurricanes, earthquakes, fires
or flooding;
• factors that may impact our ability to repurchase stock under our share
repurchase program and the timing of any such stock repurchases, as well as any
use by us of a considerable amount of available funds to repurchase stock;
• our goals and disclosures related to sustainability matters, including, among
other things, evolving regulatory requirements affecting environmental, social
and governance standards, measurements and reporting requirements ; and
• the other risk factors, trends and uncertainties set forth in our Annual
Report on Form 10-K for the year ended December 31, 2025 and Quarterly Reports
on Form 10-Q for the quarters ended March 31 and June 30, 2026, and the risks
and uncertainties discussed in any subsequent reports that we file or furnish
with the SEC from time to time.
The financial information presented in this release is unaudited and is subject
to change as a result of subsequent events or adjustments, if any, arising prior
to the filing of the Company's Quarterly Report on Form 10-Q for the quarter
ended September 30, 2026.
5
DAVITA INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(dollars and shares in thousands, except per share data)
Three Nine
months months
ended ended
Septem… Septem…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Dialy…
patie… $ 3,408,… $ 3,298,0… $ 10,047… $ 9,607,9…
servi…
reven…
Other 169,860 122,137 500,318 415,328
reven…
Total 3,578,… 3,420,2… 10,547… 10,023,…
reven…
Opera…
expen…
Patie…
care 2,451,… 2,332,7… 7,185,… 6,833,9…
costs
Gener…
and 408,697 414,373 1,254,… 1,201,2…
admin…
Depre…
and 165,188 177,490 510,825 528,645
amort…
Equity
inves… -8,237 -10,162 -24,765 -23,135
incom…
net
Goodw…
and
other 62,176 — 62,176 —
asset
impai…
charg…
Total
opera… 3,078,… 2,914,4… 8,987,… 8,540,7…
expen…
Opera… 499,255 505,767 1,560,… 1,482,5…
income
Debt -150,0… -150,557 -445,4… -431,674
expen…
Debt
extin…
and — -5,150 -2,035 -5,150
modif…
costs
Other
income 9,468 -41,257 22,241 -81,657
(loss…
net
Income
before 358,707 308,803 1,134,… 964,064
income
taxes
Income
tax 89,318 68,554 247,304 216,379
expen…
Net 269,389 240,249 887,647 747,685
income
Less:
Net
income
attri… -46,458 -89,917 -201,7… -235,099
to
nonco…
inter…
Net
income
attri… $ 222,931 $ 150,332 $ 685,858 $ 512,586
to
DaVita
Inc.
Earni…
per
share
attri…
to
DaVita
Inc.:
Basic
net $ 3.49 $ 2.09 $ 10.50 $ 6.77
income
Dilut…
net $ 3.40 $ 2.04 $ 10.27 $ 6.62
income
Weigh…
avera…
shares
for
earni…
per
share:
Basic 63,835 72,075 65,322 75,768
shares
Dilut… 65,504 73,769 66,811 77,442
shares
6
DAVITA INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
(dollars in thousands)
Three Nine
months months
ended ended
Septem… Septemb…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 269,389 $ 240,249 $ 887,647 $ 747,685
income
Other
compre…
income
(loss),
net
of tax:
Unreal…
gains
(losse…
on
intere…
rate
cap
agreem…
Unreal…
gains 26,777 -4,418 34,729 -19,358
(losse…
Reclas…
of net
realiz…
losses 2,877 1,427 8,632 4,468
into
net
income
Unreal…
(losse…
gains
on -564 24,669 49,961 209,526
foreign
curren…
transl…
Other
compre… 29,090 21,678 93,322 194,636
income
Total
compre… 298,479 261,927 980,969 942,321
income
Less:
Compre…
income
attrib… -46,458 -89,917 -201,789 -235,0…
to
noncon…
intere…
Compre…
income
attrib… $ 252,021 $ 172,010 $ 779,180 $ 707,222
to
DaVita
Inc.
7
DAVITA INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(dollars and shares in thousands, except per share data)
September 30, 2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Cash and cash equivalents $ 495,629 $ 676,438
Restricted cash and 83,631 81,309
equivalents
Short-term investments 70,673 24,303
Accounts receivable 2,509,014 2,414,690
Inventories 161,464 160,627
Contract assets and other 565,459 494,414
receivables
Prepaid and other current 141,147 156,285
assets
Income tax receivable 47,807 49,937
Total current assets 4,074,824 4,058,003
Property and equipment, net
of
accumulated depreciation of 2,731,171 2,812,966
$6,985,414
and $6,602,134,
respectively
Operating lease 2,434,212 2,397,179
right-of-use assets
Intangible assets, net of
accumulated
amortization of $39,378 and 221,070 222,125
$37,751,
respectively
Equity method and other 404,305 157,249
investments
Long-term investments 38,382 40,966
Other long-term assets 364,506 246,520
Goodwill 7,548,042 7,545,095
$ 17,816,512 $ 17,480,103
LIABILITIES AND EQUITY
Accounts payable $ 662,199 $ 696,148
Other liabilities 848,178 893,024
Accrued compensation and 747,911 793,478
benefits
Current portion of
operating lease 438,132 425,484
liabilities
Current portion of 112,491 109,201
long-term debt
Income tax payable 23,143 24,359
Due to related party 54,714 199,940
Total current liabilities 2,886,768 3,141,634
Long-term operating lease 2,185,179 2,175,658
liabilities
Long-term debt 10,656,624 10,163,988
Other long-term liabilities 100,431 83,516
Deferred income taxes 861,693 756,869
Total liabilities 16,690,695 16,321,665
Commitments and
contingencies
Noncontrolling interests
subject to put 1,484,283 1,532,166
provisions
Equity:
Preferred stock ($0.001 par
value, 5,000 — —
shares authorized; none
issued)
Common stock ($0.001 par
value, 450,000 shares
authorized; 69,237 shares
issued
and 63,400 shares 69 69
outstanding at September
30, 2026, and 68,549 shares
issued and
outstanding at December 31,
2025)
Additional paid-in capital 53,979 —
Accumulated earnings 301,565 -328,428
(deficit)
Treasury stock (5,837 and
zero shares, -917,239 -199,940
respectively)
Accumulated other -29,461 -122,783
comprehensive loss
Total DaVita Inc.
shareholders' equity -591,087 -651,082
deficit
Noncontrolling interests
not subject to 232,621 277,354
put provisions
Total equity deficit -358,466 -373,728
$ 17,816,512 $ 17,480,103
8
DAVITA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(dollars in thousands)
Cash flows from Nine months ended
operating September 30,
activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 887,647 $ 747,685
Adjustments to
reconcile net income
to
net cash provided by
operating
activities:
Depreciation and 510,825 528,645
amortization
Goodwill and other
asset impairment 62,176 —
charges
Loss on
extinguishment of — 4,253
debt
Stock-based 83,378 101,559
compensation expense
Deferred income 91,207 68,989
taxes
Equity investment 887 91,532
loss, net
Other non-cash 14,668 11,522
losses, net
Changes in operating
assets and
liabilities, net of
effect of
acquisitions and
divestitures:
Accounts receivable -67,585 -144,688
Inventories 1,103 913
Other current assets -50,210 -153,428
Other long-term -47,733 -21
assets
Accounts payable -47,803 97,879
Accrued compensation -64,671 19,279
and benefits
Other current -50,713 16,462
liabilities
Income taxes 453 -30,635
Other long-term 6,101 -14,172
liabilities
Net cash provided by
operating 1,329,730 1,345,774
activities
Cash flows from
investing
activities:
Additions of
property and -431,323 -430,434
equipment
Acquisitions -41,693 -118,337
Proceeds from asset 16,297 32,337
and business sales
Purchase of debt
investments -66,788 -15,842
held-to-maturity
Purchase of other
debt and equity -29,832 -3,352
investments
Proceeds from debt
investments 17,020 38,051
held-to-maturity
Proceeds from sale
of other debt and 4,382 6,706
equity investments
Purchase of equity -221,839 -2,466
method investments
Distributions from
equity method 329 1,514
investments
Net cash used in -753,447 -491,823
investing activities
Cash flows from
financing
activities:
Borrowings 3,511,331 4,672,170
Payments on -3,021,008 -3,880,721
long-term debt
Deferred and debt
related financing -10,602 -26,416
costs
Purchase of treasury
stock from related -419,318 -430,286
party
Other purchases of -450,862 -1,033,887
treasury stock
Distributions to
noncontrolling -243,786 -232,721
interests
Net proceeds from
issuance of common 14,509 17,583
stock under employee
stock plans
Payment of tax
withholdings on net
share -68,968 -33,764
settlements of
equity awards
Contributions from
noncontrolling 4,636 3,999
interests
Proceeds from sales
of additional — 169
noncontrolling
interests
Purchases of
noncontrolling -70,593 -16,385
interests
Net cash used in -754,661 -960,259
financing activities
Effect of exchange
rate changes on
cash, -109 21,897
cash equivalents and
restricted cash
Net decrease in
cash, cash -178,487 -84,411
equivalents
and restricted cash
Cash, cash
equivalents and
restricted 757,747 879,825
cash at beginning of
the year
Cash, cash
equivalents and
restricted $ 579,260 $ 795,414
cash at end of the
period
9
DAVITA INC.
SUPPLEMENTAL FINANCIAL DATA
(unaudited)
(dollars in millions and shares in thousands, except per treatment and patient
data)
Nine
months
Three September ended
months 30, June 30, Septemb…
ended 2026 2026 30, 2026
──────────────────────────────────────────────────────────────────────────────
1.
Consoli…
business
metrics:
Operati… 14.0 % 16.3 % 14.8 %
margin
Adjusted
operati…
margin 15.7 % 16.3 % 15.4 %
excludi…
certain
items(1)
General
and
adminis…
expenses
as a 11.4 % 11.9 % 11.9 %
percent
of
consoli…
revenue…
Effecti…
income
tax rate 24.9 % 21.1 % 21.8 %
on
income
Effecti…
income
tax rate
on
income 28.7 % 25.6 % 26.5 %
attribu…
to
DaVita
Inc.(1)
Effecti…
income
tax rate
on
adjusted 26.6 % 25.6 % 25.8 %
income
attribu…
to
DaVita
Inc.(1)
2.
Summary
of
financi…
results:
Revenue…
U.S.
dialysis
patient $ 3,050 $ 3,012 $ 9,004
services
and
other
Other—A…
services
Integra…
kidney 144 162 422
care
Other
U.S. 10 9 29
ancilla…
Interna…
dialysis
patient 398 386 1,156
service
and
other
552 557 1,606
Elimina… -24 -14 -62
Total
consoli… $ 3,578 $ 3,554 $ 10,548
revenues
Operati…
income
(loss):
U.S. $ 544 $ 538 $ 1,588
dialysis
Other—A…
services
Integra…
kidney 4 40 24
care
Other
U.S. -6 -8 -20
ancilla…
Interna… -16 25 40
-19 57 44
Corpora…
adminis… -26 -16 -72
support
expenses
Total
consoli… $ 499 $ 579 $ 1,560
operati…
income
10
DAVITA INC.
SUPPLEMENTAL FINANCIAL DATA - continued
(unaudited)
(dollars in millions and shares in thousands, except per treatment and patient
data)
Three
months Nine
ended months
Septem… June ended
30, 30, Septemb…
2026 2026 30, 2026
──────────────────────────────────────────────────────────────────────────────
3.
Summa…
of
repor…
segme…
finan…
resul…
and
metri…
U.S.
dialy…
Finan…
resul…
Reven…
Dialy…
patie… $ 3,044 $ 3,005 $ 8,984
servi…
reven…
Other 7 7 20
reven…
Total
opera… 3,050 3,012 9,004
reven…
Opera…
expen…
Patie…
care 2,054 2,005 6,028
costs
Gener…
and 316 331 967
admin…
Depre…
and 144 146 446
amort…
Equity
inves… -8 -8 -25
income
Total
opera… 2,506 2,474 7,416
expen…
Segme…
opera… $ 544 $ 538 $ 1,588
income
Metri…
Volum…
Treat… 7,329,… 7,226,… 21,585…
Number
of 79.0 78.0 233.7
treat…
days
Avera…
treat… 92,780 92,649 92,365
per
day
Per
day 1.2 % 0.6 % 0.5 %
year-…
change
Number
of
norma… 79.2 78.0 233.7
treat…
days(…
Avera…
treat…
per 92,546 92,649 92,365
norma…
day
Per
norma…
day 0.7 % 0.6 % 0.5 %
year-…
change
Norma…
year-…
non-a… 0.4 % 0.3 %
treat…
growt…
Opera…
net
reven…
Avera…
patie…
servi… $ 415.25 $ 415.87 $ 416.22
reven…
per
treat…
Expen…
Patie…
care
costs $ 280.22 $ 277.40 $ 279.24
per
treat…
Gener…
and
admin… $ 43.14 $ 45.79 $ 44.79
expen…
per
treat…
Depre…
and
amort… $ 19.70 $ 20.26 $ 20.66
expen…
per
treat…
Accou…
recei…
Recei… $ 1,684 $ 1,719
DSO 51 52
4. IKC
metri…
Patie…
per
integ…
care
arran…
type:
Risk-… 80,800 64,900
Other… 3,100 5,700
Annua…
aggre…
risk $ 6,400 $ 5,800
based
spend…
11
DAVITA INC.
SUPPLEMENTAL FINANCIAL DATA - continued
(unaudited)
(dollars in millions and shares in thousands, except per treatment and patient
data)
Nine
months
ended
Three Septemb… Septem…
months 30, June 30, 30,
ended 2026 2026 2026
──────────────────────────────────────────────────────────────────────────────
5. Cash
flow:
Operat…
cash $ 519 $ 490 $ 1,330
flow
Operat…
cash
flow, $ 1,870 $ 2,193
last
twelve
months
Free
cash $ 276 $ 256 $ 672
flow(1)
Free
cash
flow, $ 980 $ 1,308
last
twelve
months…
Capital
expend…
Mainte… $ 112 $ 123 $ 309
Develo… $ 47 $ 47 $ 122
Acquis… $ 3 $ 5 $ 42
expend…
Procee…
from
sale of $ 10 $ — $ 13
self-d…
proper…
6. Debt
and
capital
struct…
Total $ 10,832 $ 10,848
debt(6)
Net
debt,
net of
cash $ 10,337 $ 10,179
and
cash
equiva…
Levera… 3.38x 3.37x
ratio(…
Weight…
average
effect…
intere…
rate:
At end
of the 5.54 % 5.43 %
quarter
On the
senior
secured
credit 6.02 % 5.76 %
facili…
at end
of the
quarter
Amount
spent
on $ 111 $ 348 $ 863
share
repurc…
Number
of 594 2,238 5,837
shares
repurc…
Certain columns, rows or percentages may not sum or recalculate due to the
presentation of rounded numbers.
(1) These are non-GAAP financial measures. For a reconciliation of these non-
GAAP financial measures to their most comparable measure calculated and
presented in accordance with GAAP, and for a definition of adjusted amounts, see
attached reconciliation schedules. Adjusted operating income margin is adjusted
operating income divided by consolidated revenues.
(2) General and administrative expenses include certain corporate support, long-
term incentive compensation and advocacy costs.
(3) Normalized treatment days reflect treatment days adjusted to normalize for
the mix of days of the week in a given quarter.
(4) Normalized non-acquired treatment growth reflects year-over-year growth in
treatment volume, adjusted to exclude acquisitions and other similar
transactions, and further adjusted to normalize for the number and mix of
treatment days in a given quarter versus the prior year quarter.
(5) Integrated care metrics: The aggregate amount of medical spend associated
with risk-based integrated care arrangements that we disclose includes both
medical costs included in our reported expenses for certain risk-based
arrangements (such as our SNPs), as well as the aggregate estimated benchmark
amount above or below which we will incur profit or loss from value-based care
(VBC) arrangements under which third-party medical costs are not included in our
reported results. A number of our VBC contracts are subject to complex or novel
patient attribution mechanics and benchmark adjustments, some of which are based
on information not reported to us until periods after we report our quarterly
results. As a result, our estimates of our patients under, and the dollar amount
of, our value-based contracts remain subject to estimation uncertainty.
(6) The debt amounts presented as of September 30, 2026 and June 30, 2026
exclude approximately $63.1 and $66.5, respectively, of debt discount, premium
and other deferred financing costs related to our senior secured credit
facilities and senior notes in effect or outstanding at that time.
(7) This is a non-GAAP measure. See "Calculation of Leverage Ratio" in non-GAAP
reconciliations.
12
DAVITA INC.
RECONCILIATIONS FOR NON-GAAP MEASURES
(unaudited)
(dollars in millions)
Calculation of the Leverage Ratio
Under our amended senior secured credit facilities (the Amended Credit
Agreement) dated June 8, 2026, the leverage ratio is defined as (a) all funded
debt, minus unrestricted cash and cash equivalents (including short-term
investments) divided by (b) "Consolidated EBITDA." The leverage ratio determines
the interest rate margin payable by the Company for its Term Loan A-2 and
revolving line of credit under the Amended Credit Agreement by establishing the
margin over the base interest rate (SOFR plus credit spread adjustment) that is
applicable. The calculation below is based on the last 12 months of
"Consolidated EBITDA" and "Consolidated net debt" at the end of each reported
period, each as defined in the credit agreement that was in effect at the end of
each such period (the Applicable Credit Agreement). The calculation of
"Consolidated EBITDA" below sets forth, among other things, certain pro forma
adjustments described in the Applicable Credit Agreement, including, pro forma
adjustments for acquisitions or divestitures that occurred during the period and
certain projected net cost savings, expense reductions and cost synergies. These
pro forma adjustments are determined according to specified criteria set forth
in the Applicable Credit Agreement, and as a result, the total adjustments
calculated may not be comparable to the Company's estimates for other purposes,
including as operating performance measures. The Company's management believes
the presentation of "Consolidated EBITDA" is useful to investors to enhance
their understanding of the Company's leverage ratio under the Applicable Credit
Agreement and should not be evaluated for any other purpose. The leverage ratio
calculated by the Company is a non-GAAP measure and should not be considered a
substitute for the ratio of total debt to operating income, determined in
accordance with GAAP. The Company's calculation of its leverage ratio might not
be calculated in the same manner as, and thus might not be comparable to,
similarly titled measures of other companies.
Twelve September
months 30, June 30,
ended 2026 2026
──────────────────────────────────────────────────────────────────────────────
Net income
from
continuing
operations $ 895 $ 822
attributab…
to DaVita
Inc.
Income 324 303
taxes
Interest 543 540
expense
Depreciati…
and 698 710
amortizati…
Impairment 62 —
charges
Net income
attributab…
to 299 342
noncontrol…
interests
Stock-sett…
stock-based 117 127
compensati…
Debt
extinguish…
and 11 16
modificati…
costs
Expected
cost
savings and 10 7
expense
reductions
Other 84 149
Consolidat… $ 3,042 $ 3,018
EBITDA
September June 30,
30, 2026
2026
Total debt,
excluding
debt
discount
and $ 10,832 $ 10,848
other
deferred
financing
costs(1)
Less: Cash
and cash
equivalents -563 -685
including
short-term
investment…
Consolidat… $ 10,269 $ 10,162
net debt
Last twelve
months $ 3,042 $ 3,018
Consolidat…
EBITDA
Leverage 3.38x 3.37x
ratio
Maximum
leverage
ratio
permitted 5.00x 5.00x
under
the Credit
Agreement
Certain columns or rows may not sum or recalculate due to the presentation of
rounded numbers.
(1) The debt amounts presented as of September 30, 2026 and June 30, 2026
exclude approximately $63.1 and $66.5, respectively, of debt discount, premium
and other deferred financing costs related to our senior secured credit
facilities and senior notes in effect or outstanding at that time.
(2) This excludes amounts not readily convertible to cash related to the
Company's non-qualified deferred compensation plans for all periods presented.
13
DAVITA INC.
RECONCILIATIONS FOR NON-GAAP MEASURES
(unaudited)
Note on Non-GAAP Financial Measures
As used in this press release, the term "adjusted" refers to non-GAAP measures
as follows, each as reconciled to its most comparable GAAP measure as presented
in the non-GAAP reconciliations in the notes to this press release: (i) for
income and expense measures, the term "adjusted" refers to operating performance
measures that exclude certain items such as, but not limited to, cybersecurity
costs, impairment charges, gains or losses on ownership changes, restructuring
charges, accruals for legal matters, and debt extinguishment and modification
costs; and (ii) the term "effective income tax rate on adjusted income
attributable to DaVita Inc." represents the Company’s effective tax rate
excluding applicable non-GAAP items and the tax associated with them as well as
noncontrolling owners’ income, which primarily relates to non-tax paying
entities.
These non-GAAP or "adjusted" measures are presented because management believes
these measures are useful adjuncts to GAAP results. However, these non-GAAP
measures should not be considered alternatives to the corresponding measures
determined under GAAP.
Specifically, management uses adjusted operating income, adjusted net income
attributable to DaVita Inc. and adjusted diluted net income per share
attributable to DaVita Inc. to compare and evaluate our performance period over
period and relative to competitors, to analyze the underlying trends in our
business, to establish operational budgets and forecasts and for incentive
compensation purposes. We believe these non-GAAP measures also are useful to
investors and analysts in evaluating our performance over time and relative to
competitors, as well as in analyzing the underlying trends in our business.
Furthermore, we believe these presentations enhance a user's understanding of
our normal consolidated results by excluding certain items which we do not
believe are indicative of our ordinary results of operations. As a result,
adjusting for these amounts allows for comparison to our normalized prior period
results.
The effective income tax rate on adjusted income attributable to DaVita Inc.
excludes noncontrolling owners' income and certain non-deductible and other
charges which we do not believe are indicative of our ordinary results.
Accordingly, we believe these adjusted effective income tax rates are useful to
management, investors and analysts in evaluating our performance and
establishing expectations for income taxes incurred on our ordinary results
attributable to DaVita Inc.
Finally, free cash flow represents net cash provided by operating activities
less distributions to noncontrolling interests, development capital
expenditures, and maintenance capital expenditures; plus contributions from
noncontrolling interests and proceeds from the sale of self-developed
properties. Management uses this measure to assess our ability to fund
acquisitions and meet our debt service obligations and we believe this measure
is equally useful to investors and analysts as an adjunct to cash flows from
operating activities and other measures under GAAP.
It is important to bear in mind that these non-GAAP "adjusted" measures are not
measures of financial performance or liquidity under GAAP and should not be
considered in isolation from, nor as substitutes for, their most comparable GAAP
measures.
The following tables provide reconciliations of the non-GAAP financial measures
presented in this press release to their most comparable GAAP measures.
14
DAVITA INC.
RECONCILIATIONS FOR NON-GAAP MEASURES - continued
(unaudited)
(dollars in millions, except per share data)
Adjusted net income and adjusted diluted net income per share attributable to
DaVita Inc.:
…
…
…
… J… S… … …
… 3… 3… … …
… 2… 2… … …
──────────────────────────────────────────────────────────────────────────────
… … D… P… … … … …
… s… … …
$ … $ … $ … $ … $ 6… $ 1… $ 5… $ 6…
… … — — 62 0… — —
… … — — -… -… — —
— — — — — — 25 0…
— — — — — — 26 0…
— — — — — — 19 0…
… … — — -1 -… -6 -…
$ … $ … $ … $ … $ 7… $ 1… $ 5… $ 7…
Certain columns, rows or percentages may not sum or recalculate due to the
presentation of rounded numbers.
Adjusted operating income:
…
…
…
…
…
…
──────────────────────────────────────────────────────────────────────────────
… … …
… … …
… … … … …
… …
$ … $ 4 $ … $ … $ … $ … $ …
— — — … … — …
$ … $ 4 $ … $ … $ … $ … $ …
Certain columns, rows or percentages may not sum or recalculate due to the
presentation of rounded numbers.
…
…
…
…
…
…
──────────────────────────────────────────────────────────────────────────────
… … …
… … …
… … … … …
… …
$ … $ … $ … $ … $ … $ … $ …
— — — … … — …
$ … $ … $ … $ … $ … $ … $ …
Certain columns, rows or percentages may not sum or recalculate due to the
presentation of rounded numbers.
…
…
…
…
…
…
──────────────────────────────────────────────────────────────────────────────
… … … …
… … …
… … … …
… …
$ … $ … $ … $ … $ … $ … $ …
… — — — — — …
$ … $ … $ … $ … $ … $ … $ …
Certain columns or rows may not sum or recalculate due to the presentation of
rounded numbers
15
DAVITA INC.
RECONCILIATIONS FOR NON-GAAP MEASURES - continued
(unaudited)
(dollars in millions, except per share data)
Effective income tax rates:
Nine
months
Three September ended
months 30, June 30, September
ended 2026 2026 30, 2026
──────────────────────────────────────────────────────────────────────────────
Effecti…
income
tax
rates on
income
attribu…
to
DaVita
Inc.:
Income
before $ 359 $ 435 $ 1,135
income
taxes
Noncont…
owners’
income
primari…
attribu… -46 -78 -202
to
non-tax
paying
entities
Income
before
income
taxes $ 313 $ 357 $ 933
attribu…
to
DaVita
Inc.
Income
tax $ 89 $ 92 $ 247
expense
Income
tax
benefit
(expens… 1 -1 —
attribu…
to
noncont…
interes…
Income
tax
expense
attribu… $ 90 $ 91 $ 247
to
DaVita
Inc.
Effecti…
income
tax rate
on
income 28.7 % 25.6 % 26.5 %
attribu…
to
DaVita
Inc.
Effecti…
income
tax rate
on
adjusted
income
attribu…
to
DaVita
Inc.:
Income
before $ 359 $ 435 $ 1,135
income
taxes
Goodwill
and
other 62 — 62
asset
impairm…
Noncont…
owners’
income
primari…
attribu… -46 -78 -202
to
non-tax
paying
entities
Goodwill
and
other
asset
impairm… -34 — -34
attribu…
to
noncont…
interes…
Adjusted
income
before
income
taxes $ 341 $ 357 $ 961
attribu…
to
DaVita
Inc.
Income
tax $ 89 $ 92 $ 247
expense
Income
tax
benefit
(expens…
related
to:
Goodwill
and
other 1 — 1
asset
impairm…
Noncont… 1 -1 —
interes…
Income
tax on
adjusted
income $ 90 $ 91 $ 248
attribu…
to
DaVita
Inc.
Effecti…
income
tax rate
on
adjusted 26.6 % 25.6 % 25.8 %
income
attribu…
to
DaVita
Inc.
Certain columns, rows or percentages may not sum or recalculate due to the
presentation of rounded numbers.
16
DAVITA INC.
RECONCILIATIONS FOR NON-GAAP MEASURES - continued
(unaudited)
(dollars in millions, except per share data)
Free cash flow:
Nine
months
ended
Three Septemb… June Septemb… Septem…
months 30, 30, 30, 30,
ended 2026 2026 2025 2026
──────────────────────────────────────────────────────────────────────────────
Net
cash
provid… $ 519 $ 490 $ 842 $ 1,330
by
operat…
activi…
Adjust…
to
reconc…
net
cash
provid…
by
operat…
activi…
to
free
cash
flow:
Distri…
to -94 -64 -82 -244
noncon…
intere…
Contri…
from — — 1 5
noncon…
intere…
Mainte…
capital -112 -123 -119 -309
expend…
Develo…
capital -47 -47 -47 -122
expend…
Procee…
from
sale of 10 — 8 13
self-d…
proper…
Free
cash $ 276 $ 256 $ 604 $ 672
flow
Certain columns or rows may not sum or recalculate due to the presentation of
rounded numbers.
September
Twelve September 30, June 30, 30,
months ended 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net cash
provided by $ 1,870 $ 2,193 $ 1,893
operating
activities
Adjustments
to
reconcile
net cash
provided by
operating
activities
to free
cash flow:
Distributi…
to -335 -323 -341
noncontrol…
interests
Contributi…
from 8 9 8
noncontrol…
interests
Maintenance
capital -417 -424 -423
expenditur…
Development
capital -160 -159 -178
expenditur…
Proceeds
from sale
of 14 12 36
self-devel…
properties
Free cash $ 980 $ 1,308 $ 996
flow
Certain columns or rows may not sum or recalculate due to the presentation of
rounded numbers.
(1) Represents non-cash goodwill and other asset impairment charges related to
our business in China, of which a portion was allocated to noncontrolling
interests. These charges are excluded from our non-GAAP metrics because they do
not occur in or reflect the ordinary course of our ongoing business, are
inherently unpredictable and are non-cash amounts, the exclusion of which
facilitates comparison of historical, current and forecasted financial results.
(2) Represents charges recognized to work to remediate a cybersecurity incident
and restore systems following the occurrence of the incident in the second
quarter of 2025. We have excluded these charges from our non-GAAP metrics as we
do not believe they are indicative of our ordinary results of operations.
(3) Represents non-cash impairment and restructuring charges included in other
losses related to our equity investment in Mozarc Medical Holding LLC. This loss
does not represent a normal and recurring cost of operating our business or
generating returns from investments and may obscure analysis of underlying
trends and financial performance.
(4) Represents the write-down of a tax receivable related to a 2014 tax refund
claim. The claim related to estimated tax expense associated with a legal matter
previously presented as a non-GAAP adjustment. We have excluded this charge from
our non-GAAP metrics because, among other things, we do not believe it is
indicative of our ordinary results of operations because the charge is
significant and may obscure analysis of underlying trends and financial
performance of our current business.
(5) Maintenance capital expenditures represent capital expenditures to maintain
the productive capacity of the business and include those made for investments
in information technology, dialysis center renovations, capital asset
replacements, and any other capital expenditures that are not development or
acquisition expenditures.
(6) Development capital expenditures principally represent capital expenditures
(other than acquisition expenditures) made to expand the productive capacity of
the business and include those for new U.S. and international dialysis center
developments, dialysis center expansions and relocations, and new or expanded
contracted hospital operations.
17