DaVita (DVA) Q2 2025 earnings summary

Executive summary

• Consolidated Q2 2025 revenues reached $3.38 billion, up 4.8% sequentially and 5.5% year-over-year, with operating income of $538 million and adjusted operating income of $551 million.

• Diluted EPS was $2.58, adjusted EPS $2.95; net income attributable to the company was $199 million, down from $223 million in Q2 2024.

• Q2 free cash flow was $157 million, with operating cash flow of $324 million.

• A cybersecurity incident in April 2025 disrupted operations, impacting billing, revenue collection, and patient census, with $13.5 million in related charges recognized.

• Completed the acquisition of Fresenius Medical Care's dialysis operations in Brazil effective August 1, 2025.

Financial highlights

• Q2 2025 adjusted operating income: $551 million; adjusted EPS: $2.95; free cash flow: $157 million.

• U.S. dialysis segment Q2 revenue was $2.91 billion, with operating income of $523 million (adjusted: $536 million).

• International segment contributed $57 million in operating income for Q2 2025.

• Patient care costs per treatment increased 5.8% year-over-year for the six months ended June 30, 2025.

• Debt expense rose to $281 million for the six months ended June 30, 2025, up 42.6% year-over-year.

Outlook and guidance

• 2025 guidance reaffirmed: adjusted operating income $2.01B–$2.16B; adjusted EPS $10.20–$11.30; free cash flow $1B–$1.25B.

• Full-year treatment volume now expected to decline 75–100 basis points, mainly due to persistent mistreatment rates.

• Patient care cost increase expected at 5%-6%, better than original expectations.

• Ongoing assessment of the One Big Beautiful Bill Act (OBBBA) and its potential effects on Medicaid, ACA exchanges, and commercial insurance mix.

• Labor costs are expected to remain elevated, though improvements in productivity and reduced turnover are anticipated.