CHE earnings analysis
What we found in CHE's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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).
- 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).
- 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.
- 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).
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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%).
- 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.
- 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).
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $4.84
- Gross margin
- 32.8%
- Operating margin
- 12.86%
- Segment
- VITAS: net revenue $420,018 (in thousands), up 3.1% vs Q1 2025; days of care up 2.2%
- Segment
- Roto-Rooter: net revenue $237,495 (in thousands), down 0.9% vs Q1 2025; water restoration down 11.7%
What they said about what is next.
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.)
The filing reads about the same as the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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