Earnings analysis · 10-Q
CHE earnings analysis
Filed April 28, 2026 · Our reading of the company's report
The latest report
Chemed reported first-quarter 2026 service revenues of $657,513 (in thousands), up 1.6% versus Q1 2025, with adjusted diluted EPS of $5.65 (vs $5.63). Growth was driven by VITAS (net revenue $420,018, up 3.1%) while…
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Chemed reported first-quarter 2026 service revenues of $657,513 (in thousands), up 1.6% versus Q1 2025, with adjusted diluted EPS of $5.65 (vs $5.63). Growth was driven by VITAS (net revenue $420,018, up 3.1%) while Roto‑Rooter declined (net revenue $237,495, down 0.9%); margins and adjusted EBITDA compressed versus prior year. Management highlighted stronger VITAS volumes and reimbursement increases, continued share repurchases and a new $450.0 million revolver to support liquidity.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $4.84
What stood out
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Top-line modestly higher
Consolidated service revenues increased 1.6% year-over-year to $657,513 (in thousands) in Q1 2026 (from $646,943 in Q1 2025).
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Adjusted EPS slightly improved
Adjusted diluted EPS rose to $5.65 in Q1 2026 from $5.63 in Q1 2025 (adjusted net income $77,383 vs $83,074 — see reconciliation).
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VITAS drove growth
VITAS net revenue was $420,018 (in thousands), up 3.1% year-over-year, driven by a 2.2% increase in days-of-care and an approximate 2.6% geographically weighted Medicare reimbursement increase.
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Operating cash flow improved y/y
Net cash provided by operating activities increased by $55.5 million from March 31, 2025 to March 31, 2026 (filing note in Liquidity and Capital Resources).
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Active capital return and refreshed revolver
Treasury stock increased $201.1 million due to repurchases (500,000 shares repurchased in Q1 at a weighted average price of $395.36) and the Board authorized an additional $300.0 million under the repurchase program; the prior credit agreement was replaced with a five-year $450.0 million revolver.
What to watch
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Adjusted EBITDA and margin compression
Adjusted EBITDA declined to $116,257 (in thousands) in Q1 2026 from $121,692 in Q1 2025 (Adjusted EBITDA as a % of revenue 17.7% vs 18.8%).
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Consolidated gross margin contracted
Consolidated gross margin fell to 32.8% in Q1 2026 from 33.5% in Q1 2025; VITAS gross margin declined to 22.5% from 23.2% due to higher variable patient care expenses.
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Roto‑Rooter profitability weakness
Roto‑Rooter net revenue decreased 0.9% to $237,495 (in thousands) and net income fell to $35,784 (in thousands) from $39,944 in Q1 2025 (a decline of $4,160).
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Balance sheet and liquidity movements
Accounts receivable increased $32.9 million (timing of payments), long-term debt increased $91.2 million (primarily due to acquisitions and repurchases), and income taxes payable rose $23.3 million — all noted as material changes from December 31, 2025 to March 31, 2026.
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Higher SG&A / marketing at Roto‑Rooter
Total SG&A rose to $114,321 (in thousands) in Q1 2026 from $105,587 in Q1 2025; the filing attributes $3.9 million of the increase to higher Roto‑Rooter advertising.
Management's outlook
This 10-Q contains no explicit quantitative FY‑2026 revenue or EPS guidance. MD&A states management 'anticipates' operating income and cash flows will be sufficient for the foreseeable future. (Separately, management disclosed updated FY 2026 adjusted diluted EPS guidance in an 8‑K on April 23, 2026; that 8‑K raised full‑year adjusted diluted EPS to $24.00–$24.75.)
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.