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DaVita Inc. Financial Results: Q3 2025

DaVita Inc. (NYSE: DVA) recently published its financial results for the third quarter ending September 30, 2025. The company reported solid outcomes that align with its expectations, reinforcing its commitment to delivering exceptional care and investing in the well-being of its patients and caregivers.

Key Financial Highlights

During the third quarter, DaVita achieved consolidated revenues of $3.420 billion, marking a significant increase compared to previous quarters. The operating income was pegged at $506 million, while the adjusted operating income rose to $517 million. On the earnings side, diluted earnings per share were reported at $2.04, with adjusted diluted earnings at $2.51. Operating cash flow reached $842 million, and the company reported a free cash flow of $604 million.

What stands out in this quarter’s report is the refinance of existing debt, where DaVita entered a new $1.9 billion Term Loan B-2 to replace the previous Term Loan B-1, which reflects favorable financial strategy adaptations. Additionally, DaVita actively repurchased 3.3 million shares of its stock at an average price of $140.67 per share, signaling confidence in its stock value and commitment to enhancing shareholder returns.

Dialysis Metrics Update

The company reported that a total of 7,242,725 dialysis treatments were administered in this quarter, which averages out to 91,680 treatments per day. This shows a slight decline of 0.5% in daily treatments compared to the preceding quarter. The year-over-year normalized non-acquired treatment growth was measured at -0.6% when evaluated against the same quarter from the previous year.

Increase in Costs and Challenges

Despite positive revenue growth, the company encountered challenges, particularly in patient care costs which averaged $273.54 per treatment, showing an increase driven by higher compensation and pharmaceutical-related expenses, particularly for phosphate binders. General and administrative expenses were also slightly elevated, reflecting increased IT costs tied to a cybersecurity incident that occurred earlier in 2025, costing approximately $11.7 million during Q3.

Strategic Initiatives and Future Outlook

Looking ahead, DaVita remains committed to improving integrated kidney care (IKC) and anticipates continued growth within its risk-based integrated care arrangements, which now serve about 64,900 patients with an annualized medical spend of approximately $5.5 billion. The company’s guidance for the remainder of 2025 maintains an optimistic outlook, projecting adjusted operating income to range between $2.035 billion and $2.135 billion.

Javier Rodriguez, CEO of DaVita, emphasized that the company’s continual focus on delivering outstanding care is a driving force behind their performance, enabling progress in initiatives that enhance patient quality of life.

Overall, DaVita Inc.'s third-quarter results demonstrate a blend of strategic financial management and a commitment to patient care amidst various economic challenges. The market will be monitoring the upcoming quarterly conference call for further insights into how the company plans to sustain this momentum.