News Release Details

CINCINNATI, Feb. 25, 2026 (GLOBE NEWSWIRE) -- Chemed Corporation (Chemed) (NYSE: CHE), which operates VITAS Healthcare Corporation (VITAS), the nation’s largest providers of end-of-life care, and Roto-Rooter, the nation’s largest commercial and residential plumbing and drain cleaning services provider, reported financial results for its fourth quarter ended December 31, 2025, versus the comparable prior-year period.

Results for Quarter Ended December 31, 2025

Consolidated operating results:

• Revenue was $639.3 million, essentially flat with the fourth quarter of 2024
• GAAP Diluted Earnings-per-Share (EPS) of $5.48, a decrease of 9.0%
• Adjusted Diluted EPS of $6.42, a decrease of 6.0%
  
  

VITAS segment operating results:

• Net Patient Revenue of $418.8 million, an increase of 1.9%
• Average Daily Census (ADC) of 22,462, an increase of 1.3%
• Admissions of 17,419, an increase of 6.0%
• Net Income, excluding certain discrete items, of $69.5 million, a decrease of 0.6%
• Adjusted EBITDA, excluding Medicare Cap, of $91.6 million, a decrease of 1.7%
• Adjusted EBITDA margin, excluding Medicare Cap, of 21.7%, a decrease of 79-basis points
  
  

Roto-Rooter segment operating results:

• Revenue of $220.6 million, a decrease of 3.7%
• Net Income, excluding certain discrete items, of $33.8 million, a decrease of 20.6%
• Adjusted EBITDA of $47.5 million, a decline of 21.1%
• Adjusted EBITDA margin of 21.5%, a decline of 477-basis points
  
  

VITAS

VITAS net revenue was $418.8 million in the fourth quarter of 2025, which is an increase of 1.9% when compared to the prior-year period. This revenue increase is comprised primarily of a 1.3% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.2%. Acuity mix shift negatively impacted revenue growth 143-basis points in the quarter when compared to the prior-year period’s revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes negatively impacted revenue growth by 20-basis points.

Total VITAS admissions increased 6.0% in the fourth quarter of 2025 compared to the fourth quarter of 2024.

In the fourth quarter of 2025, VITAS accrued $2.4 million in Medicare Cap billing limitation, essentially flat compared to the fourth quarter of 2024.   There was no Medicare Cap billing limitation recorded in the fourth quarter of 2025 related to the Florida combined program.

Of VITAS’ 33 Medicare provider numbers, 22 provider numbers have a projected full-year Medicare Cap cushion of 10% or greater, six provider numbers have a projected cushion between 0% and 10%, and five provider numbers have a Medicare Cap billing limitation totaling $9.5 million projected for the full-year 2026 Medicare Cap year. There is no Medicare Cap for the 2026 Cap year currently projected for the Florida combined program.

Average revenue per patient per day in the fourth quarter of 2025 was $208.01 which is 86-basis points above the prior-year period. Reimbursement for routine home care and high acuity care averaged $187.19 and $1,153.55, respectively. During the quarter, high acuity days-of-care were 2.2% of total days of care, a decline of 32-basis points when compared to the prior-year quarter.

The fourth quarter 2025 gross margin, excluding Medicare Cap, was 27.3%, a 150-basis point decline from the same period of 2024. Selling, general and administrative expenses were $23.8 million in the fourth quarter of 2025 compared to $25.6 million in the prior-year quarter.

Adjusted EBITDA, excluding Medicare Cap, totaled $91.6 million in the quarter, a decline of 1.7% when compared to the prior year period. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 21.7%.

Roto-Rooter

Roto-Rooter generated quarterly revenue of $220.6 million in the fourth quarter of 2025, a decrease of 3.7%, when compared to the prior-year quarter.

Roto-Rooter branch commercial revenue in the quarter totaled $55.2 million, an increase of 1.6% from the prior-year period. This aggregate commercial revenue change consisted of excavation increasing 10.9%, drain cleaning increasing 2.0%, plumbing flat between years, offset by a decline in water restoration of 20.0%.

Roto-Rooter branch residential revenue in the quarter totaled $155.6 million, a decrease of 3.1%, over the prior-year period. This aggregate residential revenue change consisted of plumbing increasing 6.3%, excavation essentially flat between periods, offset by water restoration decreasing 10.3% and drain cleaning declining 3.2%.

In the fourth quarter of 2025, revenue from independent contractors was $16.7 million which is a decline of 2.8% as compared to the same period of 2024.

Roto-Rooter’s fourth quarter 2025 gross margin was 49.8%. This compares to the prior year quarter’s gross margin of 51.3%. Roto-Rooter’s selling, general and administrative expenses were $63.2 million in the quarter, which is an increase of 10.5% compared to the fourth quarter of 2024.

Adjusted EBITDA in the fourth quarter of 2025 totaled $47.5 million, a decrease of 21.1% when compared to the fourth quarter of 2024. The Adjusted EBITDA margin in the quarter was 21.5% which represents a 477-basis point decline from the fourth quarter of 2024.

Chemed Consolidated

As of December 31, 2025, Chemed had total cash and cash equivalents of $74.5 million and no current or long-term debt.

In June 2022, Chemed entered into a five-year $550 million Amended and Restated Credit Agreement (Credit Agreement). This Credit Agreement consisted of a $100 million amortizable term loan and a $450 million revolving credit facility. The interest rate on this Credit Agreement has a floating rate that is currently SOFR plus 100-basis points. There is approximately $404.5 million undrawn borrowing capacity under the Credit Agreement after excluding $45.5 million for Letters of Credit.

During the quarter, the Company repurchased 400,000 shares of Chemed stock for $174.6 million which equates to a cost per share of $436.39. As of December 31, 2025, there was approximately $127.3 million of remaining share repurchase authorization under its plan.

Guidance for 2026

VITAS 2026 revenue, prior to Medicare Cap, is estimated to increase 5.5% to 6.5% when compared to 2025. ADC is estimated to increase 3.5% to 4.0%. Full year EBITDA margin, prior to Medicare Cap is estimated to be 17.5% to 18.0%. Medicare Cap billing limitations are estimated to be $9.5 million in calendar 2026 compared to $27.2 million in calendar 2025.

Roto-Rooter is forecasted to achieve full year 2026 revenue growth of 3.0% to 3.5%. Roto-Rooter’s adjusted EBITDA margin for 2026 is expected to be 22.5% to 23.0%.

Based upon the above, full-year 2026 earnings per diluted share, excluding non-cash expenses for stock options, tax benefits from stock option exercises, costs related to litigation and other discrete items, is estimated to be in the range of $23.25 to $24.25. This compares to full-year 2025 adjusted earnings per diluted share of $21.55. The 2026 guidance assumes an effective corporate tax rate on adjusted earnings of 24.5% and a diluted share count of 13.9 million shares.

The 2026 earnings trajectory is weighted towards the second half of the year. An estimated 55% of the consolidated adjusted net income and consolidated adjusted EBITDA, prior to Medicare Cap, is projected to be generated in the second half of the year. Momentum is expected to build sequentially, quarter-to-quarter throughout the year.

We believe VITAS has successfully mitigated its Florida Medicare Cap issue. As a result, in 2026, the patient mix should moderate to a more favorable balance of short and longer-stay patients. However, the financial impact of admitting a higher number of potentially longer-stay patients does not come until roughly a fiscal quarter post-admission.

Roto-Rooter’s first quarter of 2025 was its strongest revenue and EBITDA margin quarter of the year. Additionally, Roto-Rooter is projected to have elevated expenses in the first half of the year in order to fund revenue growth and long-term margin improvement projects currently underway.

Management will provide more detail related to the above discussion during the conference call tomorrow morning.

Conference Call

As previously disclosed, Chemed will host a conference call and webcast at 10 a.m., ET, on Thursday February 26, 2026, to discuss the company's quarterly results and to provide an update on its business. Participants may access a live webcast of the conference call through the investor relations section of Chemed’s website, Investor Relations Home | Chemed Corporation or the hosting website https://edge.media-server.com/mmc/p/srzsz65g.

Participants may also register via teleconference at: https://register-conf.media-server.com/register/BIe4160b0d86fb4a3cb11588d64e00d9e7.

Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are instructed to dial-in 15 minutes prior to the start time.

A taped replay of the conference call will be available beginning approximately two hours after the call's conclusion. You may access the replay via webcast through the investor relations section of Chemed’s website.

Chemed operates in the healthcare field through its VITAS Healthcare Corporation subsidiary. VITAS provides daily hospice services to patients with severe, life-limiting illnesses. This type of care is focused on making the terminally ill patient's final days as comfortable and pain-free as possible.

Chemed operates in the residential and commercial plumbing and drain cleaning industry under the brand name Roto-Rooter. Roto-Rooter provides plumbing, drain cleaning, and water cleanup services through company-owned branches, independent contractors and franchisees in the United States and Canada. Roto-Rooter also has licensed master franchisees in the republics of Indonesia and Singapore, and the Philippines.

This press release contains information about Chemed’s EBITDA, Adjusted EBITDA, and Adjusted Diluted EPS, which are not measures derived in accordance with GAAP and which exclude components that are important to understanding Chemed’s financial performance. In reporting its operating results, Chemed provides EBITDA, Adjusted EBITDA and Adjusted Diluted EPS measures to help investors and others evaluate the Company’s operating results, compare its operating performance with that of similar companies that have different capital structures and evaluate its ability to meet its future debt service, capital expenditures and working capital requirements. Chemed’s management similarly uses EBITDA, Adjusted EBITDA, and Adjusted Diluted EPS to assist it in evaluating the performance of the Company across fiscal periods and in assessing how its performance compares to its peer companies. These measures also help Chemed’s management to estimate the resources required to meet Chemed’s future financial obligations and expenditures. Chemed’s EBITDA, Adjusted EBITDA and Adjusted Diluted EPS should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. We calculated Adjusted EBITDA Margin by dividing Adjusted EBITDA by service revenue and sales. A reconciliation of Chemed’s net income to its EBITDA, Adjusted EBITDA and Adjusted Diluted EPS is presented in the tables following the text of this press release.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 REGARDING FORWARD-LOOKING INFORMATION

Statements in this press release contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods and are based upon assumptions subject to certain known and unknown risks, uncertainties, contingencies and other factors, including, but not limited to, the impact of laws and regulations on Chemed’s operations, including Medicare Cap and Medicare reimbursement rates, Chemed’s estimates of the effect of Medicare Cap on VITAS’ revenues and future prospects, Chemed’s expectations regarding VITAS’ patient mix and Chemed’s expectations regarding demand for Roto-Rooter’s services.

Because forward looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Chemed’s control. Chemed’s actual results and financial condition may differ materially from those indicated in the forward-looking statements included in this press release, including as a result of the risks described above and those described in the Chemed’s Annual Report on Form 10-K for the year ended December 31, 2024 and in its Quarterly Reports filed in 2025. Any forward-looking statement made by Chemed in this press release is based only on information currently available to Chemed and speaks only as of the date on which it is made. Chemed undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

CONTACT: Michael D. Witzeman
(513) 762-6714

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)(unaudited)
		Three Months Ended December 31,								For the Years Ended December 31,
		2025				2024				2025				2024
Service revenues and sales		$	639,337			$	639,993			$	2,529,978				2,431,287
Cost of services provided and goods sold			417,016				405,875				1,706,794				1,576,939
Selling, general and administrative expenses (aa)			105,503				104,251				417,188				424,360
Depreciation			13,759				13,263				54,557				52,864
Amortization			2,571				2,568				10,284				10,185
Other operating (income)/expense			(166	)			158				2,909				446
Total costs and expenses			538,683				526,115				2,191,732				2,064,794
Income from operations			100,654				113,878				338,246				366,493
Interest expense			(521	)			(499	)			(1,750	)			(1,780	)
Other income--net (bb)			5,312				6,744				19,282				34,752
Income before income taxes			105,445				120,123				355,778				399,465
Income taxes			(28,694	)			(29,804	)			(90,540	)			(97,466	)
Net income		$	76,751			$	90,319			$	265,238			$	301,999
Earnings Per Share
Net income		$	5.48			$	6.08			$	18.42			$	20.10
Average number of shares outstanding			13,994				14,853				14,398				15,024
Diluted Earnings Per Share
Net income		$	5.48			$	6.02			$	18.34			$	19.89
Average number of shares outstanding			14,010				14,992				14,460				15,186
(aa)    Selling, general and administrative ("SG&A") expenses comprise (in thousands):
		Three Months Ended December 31,								For the Years Ended December 31,
		2025				2024				2025				2024
SG&A expenses before long-term incentive compensation
and the impact of market value adjustments related to
deferred compensation plans		$	99,412			$	96,358			$	401,013			$	384,069
Market value adjustments related to deferred
compensation trusts			3,759				3,539				10,550				20,139
Long-term incentive compensation			2,332				4,354				5,625				20,152
Total SG&A expenses		$	105,503			$	104,251			$	417,188			$	424,360
(bb)    Other income--net comprises (in thousands):
		Three Months Ended December 31,								For the Years Ended December 31,
		2025				2024				2025				2024
Market value adjustments related to deferred
compensation trusts		$	3,759			$	3,539			$	10,550			$	20,139
Interest income			1,559				3,205				8,745				14,610
Other			(6	)			-				(13	)			3
Total other income--net		$	5,312			$	6,744			$	19,282			$	34,752

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)(unaudited)
		December 31,
		2025				2024
Assets
Current assets
Cash and cash equivalents		$	74,515			$	178,350
Accounts receivable less allowances			182,575				171,163
Inventories			7,543				8,193
Prepaid income taxes			11,165				11,068
Prepaid expenses			26,818				25,974
Total current assets			302,616				394,748
Investments of deferred compensation plans held in trust			140,347				130,960
Properties and equipment, at cost less accumulated depreciation			205,662				200,837
Lease right of use asset			131,151				127,323
Identifiable intangible assets less accumulated amortization			82,764				92,206
Goodwill			666,999				666,744
Other assets			8,650				55,757
Total Assets		$	1,538,189			$	1,668,575
Liabilities
Current liabilities
Accounts payable		$	64,459			$	44,146
Accrued insurance			62,054				56,703
Accrued income taxes			2,504				7,593
Accrued compensation			58,329				92,073
Short-term lease liability			40,892				42,306
Other current liabilities			58,892				42,874
Total current liabilities			287,130				285,695
Deferred income taxes			19,313				25,945
Deferred compensation liabilities			136,139				126,035
Long-term lease liability			102,867				98,538
Other liabilities			13,335				13,369
Total Liabilities			558,784				549,582
Stockholders' Equity
Capital stock			37,595				37,422
Paid-in capital			1,592,197				1,484,176
Retained earnings			2,955,375				2,721,832
Treasury stock, at cost			(3,608,117	)			(3,126,660	)
Deferred compensation payable in Company stock			2,355				2,223
Total Stockholders' Equity			979,405				1,118,993
Total Liabilities and Stockholders' Equity		$	1,538,189			$	1,668,575

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)(unaudited)
		For the Years Ended December 31,
		2025				2024
Cash Flows from Operating Activities
Net income		$	265,238			$	301,999
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization			64,841				63,049
Stock option expense			32,671				32,033
Benefit for deferred income taxes			(5,944	)			(4,138	)
Noncash long-term incentive compensation			4,886				18,794
Litigation settlements			1,425				(5,750	)
Noncash directors' compensation			1,123				1,282
Amortization of debt issuance costs			321				321
Changes in operating assets and liabilities, excluding
amounts acquired in business combinations:
(Increase)/decrease in accounts receivable			(11,596	)			10,678
Decrease in inventories			650				3,831
(Increase)/decrease in prepaid expenses			(844	)			4,237
Decrease in accounts payable and
other current liabilities			(5,194	)			(9,279	)
Change in current income taxes			(6,217	)			2,182
Net change in lease assets and liabilities			(806	)			(674	)
Decrease/(increase) in other assets			36,835				(25,591	)
Increase in other liabilities			10,424				22,749
Other sources			459				1,774
Net cash provided by operating activities			388,272				417,497
Cash Flows from Investing Activities
Capital expenditures			(62,795	)			(49,531	)
Proceeds from sale of fixed assets			4,568				3,315
Business combinations, net of cash acquired			(225	)			(97,400	)
Other uses			(888	)			(295	)
Net cash used by investing activities			(59,340	)			(143,911	)
Cash Flows from Financing Activities
Purchases of treasury stock			(431,500	)			(361,389	)
Dividends paid			(31,695	)			(27,092	)
Proceeds from exercise of stock options			27,152				56,517
Change in cash overdrafts payable			10,970				(15,749	)
Capital stock surrendered to pay taxes on stock-based compensation			(8,819	)			(9,457	)
Other sources/(uses)			1,125				(2,024	)
Net cash used by financing activities			(432,767	)			(359,194	)
Decrease in Cash and Cash Equivalents			(103,835	)			(85,608	)
Cash and cash equivalents at beginning of year			178,350				263,958
Cash and cash equivalents at end of period		$	74,515			$	178,350

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024
(in thousands)(unaudited)
														Chemed
		VITAS				Roto-Rooter				Corporate				Consolidated
2025 (a)
Service revenues and sales		$	418,760			$	220,577			$	-			$	639,337
Cost of services provided and goods sold			306,238				110,778				-				417,016
Selling, general and administrative expenses			23,814				63,192				18,497				105,503
Depreciation			5,446				8,301				12				13,759
Amortization			26				2,545				-				2,571
Other operating income			219				(385	)			-				(166	)
Total costs and expenses			335,743				184,431				18,509				538,683
Income/(loss) from operations			83,017				36,146				(18,509	)			100,654
Interest expense			(35	)			(217	)			(269	)			(521	)
Intercompany interest income/(expense)			6,020				4,315				(10,335	)			-
Other income—net			156				13				5,143				5,312
Income/(loss) before income taxes			89,158				40,257				(23,970	)			105,445
Income taxes			(20,169	)			(8,692	)			167				(28,694	)
Net income/(loss)		$	68,989			$	31,565			$	(23,803	)		$	76,751
2024 (b)
Service revenues and sales		$	411,008			$	228,985			$	-			$	639,993
Cost of services provided and goods sold			294,456				111,419				-				405,875
Selling, general and administrative expenses			25,597				57,168				21,486				104,251
Depreciation			5,074				8,177				12				13,263
Amortization			26				2,542				-				2,568
Other operating expense			18				140				-				158
Total costs and expenses			325,171				179,446				21,498				526,115
Income/(loss) from operations			85,837				49,539				(21,498	)			113,878
Interest expense			(33	)			(81	)			(385	)			(499	)
Intercompany interest income/(expense)			5,114				3,759				(8,873	)			-
Other income—net			90				5				6,649				6,744
Income/(loss) before income taxes			91,008				53,222				(24,107	)			120,123
Income taxes			(20,897	)			(12,500	)			3,593				(29,804	)
Net income/(loss)		$	70,111			$	40,722			$	(20,514	)		$	90,319
The "Footnotes to Financial Statements" are integral parts of this financial information.
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(in thousands)(unaudited)
														Chemed
		VITAS				Roto-Rooter				Corporate				Consolidated
2025 (a)
Service revenues and sales		$	1,630,101			$	899,877			$	-			$	2,529,978
Cost of services provided and goods sold			1,257,704				449,090				-				1,706,794
Selling, general and administrative expenses			100,675				247,047				69,466				417,188
Depreciation			21,308				33,200				49				54,557
Amortization			104				10,180				-				10,284
Other operating expense/(income)			3,375				(466	)			-				2,909
Total costs and expenses			1,383,166				739,051				69,515				2,191,732
Income/(loss) from operations			246,935				160,826				(69,515	)			338,246
Interest expense			(185	)			(611	)			(954	)			(1,750	)
Intercompany interest income/(expense)			22,455				16,245				(38,700	)			-
Other income—net			327				70				18,885				19,282
Income/(loss) before income taxes			269,532				176,530				(90,284	)			355,778
Income taxes			(65,523	)			(41,037	)			16,020				(90,540	)
Net income/(loss)		$	204,009			$	135,493			$	(74,264	)		$	265,238
2024 (b)
Service revenues and sales		$	1,530,978			$	900,309			$	-			$	2,431,287
Cost of services provided and goods sold			1,146,803				430,136				-				1,576,939
Selling, general and administrative expenses			99,564				232,852				91,944				424,360
Depreciation			20,362				32,452				50				52,864
Amortization			105				10,080				-				10,185
Other operating expense			178				268				-				446
Total costs and expenses			1,267,012				705,788				91,994				2,064,794
Income/(loss) from operations			263,966				194,521				(91,994	)			366,493
Interest expense			(171	)			(431	)			(1,178	)			(1,780	)
Intercompany interest income/(expense)			20,211				14,397				(34,608	)			-
Other income—net			227				69				34,456				34,752
Income/(loss) before income taxes			284,233				208,556				(93,324	)			399,465
Income taxes			(67,414	)			(48,510	)			18,458				(97,466	)
Net income/(loss)		$	216,819			$	160,046			$	(74,866	)		$	301,999
The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING SUMMARIES OF EBITDA
FOR THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024
(in thousands)(unaudited)
														Chemed
		VITAS				Roto-Rooter				Corporate				Consolidated
2025
Net income/(loss)		$	68,989			$	31,565			$	(23,803	)		$	76,751
Add/(deduct):
Interest expense			35				217				269				521
Income taxes			20,169				8,692				(167	)			28,694
Depreciation			5,446				8,301				12				13,759
Amortization			26				2,545				-				2,571
EBITDA			94,665				51,320				(23,689	)			122,296
Add/(deduct):
Intercompany interest expense/(income)			(6,020	)			(4,315	)			10,335				-
Interest income			(156	)			(19	)			(1,384	)			(1,559	)
Stock option expense			-				-				8,297				8,297
Long-term incentive compensation			-				-				2,332				2,332
Legal settlements			221				-				-				221
Other			500				530				25				1,055
Adjusted EBITDA		$	89,210			$	47,516			$	(4,084	)		$	132,642
2024
Net income/(loss)		$	70,111			$	40,722			$	(20,514	)		$	90,319
Add/(deduct):
Interest expense			33				81				385				499
Income taxes			20,897				12,500				(3,593	)			29,804
Depreciation			5,074				8,177				12				13,263
Amortization			26				2,542				-				2,568
EBITDA			96,141				64,022				(23,710	)			136,453
Add/(deduct):
Intercompany interest expense/(income)			(5,114	)			(3,759	)			8,873				-
Interest income			(89	)			(5	)			(3,111	)			(3,205	)
Stock option expense			-				-				8,100				8,100
Long-term incentive compensation			-				-				4,354				4,354
Acquisition expense			(203	)			(3	)			-				(206	)
Adjusted EBITDA		$	90,735			$	60,255			$	(5,494	)		$	145,496
The "Footnotes to Financial Statements" are integral parts of this financial information.
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING SUMMARIES OF EBITDA
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(in thousands)(unaudited)
														Chemed
		VITAS				Roto-Rooter				Corporate				Consolidated
2025
Net income/(loss)		$	204,009			$	135,493			$	(74,264	)		$	265,238
Add/(deduct):
Interest expense			185				611				954				1,750
Income taxes			65,523				41,037				(16,020	)			90,540
Depreciation			21,308				33,200				49				54,557
Amortization			104				10,180				-				10,284
EBITDA			291,129				220,521				(89,281	)			422,369
Add/(deduct):
Intercompany interest expense/(income)			(22,455	)			(16,245	)			38,700				-
Interest income			(334	)			(77	)			(8,335	)			(8,746	)
Stock option expense			-				-				32,671				32,671
Long-term incentive compensation			-				-				5,625				5,625
Legal settlements			3,071				-				-				3,071
Other			500				530				2,690				3,720
Adjusted EBITDA		$	271,911			$	204,729			$	(17,930	)		$	458,710
2024
Net income/(loss)		$	216,819			$	160,046			$	(74,866	)		$	301,999
Add/(deduct):
Interest expense			171				431				1,178				1,780
Income taxes			67,414				48,510				(18,458	)			97,466
Depreciation			20,362				32,452				50				52,864
Amortization			105				10,080				-				10,185
EBITDA			304,871				251,519				(92,096	)			464,294
Add/(deduct):
Intercompany interest expense/(income)			(20,211	)			(14,397	)			34,608				-
Interest income			(224	)			(69	)			(14,317	)			(14,610	)
Stock option expense			-				-				32,033				32,033
Long-term incentive compensation			-				-				20,152				20,152
Acquisition expense			1,099				34				-				1,133
Adjusted EBITDA		$	285,535			$	237,087			$	(19,620	)		$	503,002
The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
RECONCILIATION OF ADJUSTED NET INCOME
(in thousands, except per share data)(unaudited)
		Three Months Ended December 31,								For the Years Ended December 31,
		2025				2024				2025				2024
Net income as reported		$	76,751			$	90,319			$	265,238			$	301,999
Add/(deduct) pre-tax cost of:
Stock option expense			8,297				8,100				32,671				32,033
Amortization of reacquired franchise rights			2,352				2,352				9,408				9,408
Long-term incentive compensation			2,332				4,354				5,625				20,152
Legal settlements			221				-				3,071				-
Acquisition expense			-				(206	)			-				1,133
Other			1,055				-				3,720				-
Add/(deduct) tax impacts:
Tax impact of the above pre-tax adjustments (1)			(2,337	)			(2,333	)			(8,849	)			(9,095	)
Excess tax benefits on stock compensation			1,209				(133	)			696				(4,442	)
Adjusted net income		$	89,880			$	102,453			$	311,580			$	351,188
Diluted Earnings Per Share As Reported
Net income		$	5.48			$	6.02			$	18.34			$	19.89
Average number of shares outstanding			14,010				14,992				14,460				15,186
Adjusted Diluted Earnings Per Share
Adjusted net income		$	6.42			$	6.83			$	21.55			$	23.13
Average number of shares outstanding			14,010				14,992				14,460				15,186
(1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated.
The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
OPERATING STATISTICS FOR VITAS SEGMENT
(unaudited)
	Three Months Ended December 31,									For the Years Ended December 31,
OPERATING STATISTICS	2025				2024					2025				2024
Net revenue ($000) (c)
Homecare	$	372,480			$	358,507				$	1,444,494			$	1,326,488
Inpatient		32,903				31,307					133,048				120,604
Continuous care		18,438				25,451					86,661				99,746
Other		6,029				5,556					22,926				19,455
Subtotal	$	429,850			$	420,821				$	1,687,129			$	1,566,293
Room and board, net		(4,285	)			(3,867	)				(15,562	)			(13,304	)
Contractual allowances		(4,430	)			(3,521	)				(14,305	)			(13,597	)
Medicare cap allowance		(2,375	)			(2,425	)				(27,161	)			(8,414	)
Net Revenue	$	418,760			$	411,008				$	1,630,101			$	1,530,978
Net revenue as a percent of total before Medicare cap allowance
Homecare		86.7	%			85.2	%				85.6	%			84.7	%
Inpatient		7.7				7.4					7.9				7.7
Continuous care		4.3				6.0					5.1				6.4
Other		1.3				1.4					1.4				1.2
Subtotal		100.0				100.0					100.0				100.0
Room and board, net		(0.9	)			(0.9	)				(0.9	)			(0.8	)
Contractual allowances		(1.0	)			(0.8	)				(0.9	)			(0.9	)
Medicare cap allowance		(0.6	)			(0.6	)				(1.6	)			(0.5	)
Net Revenue		97.5	%			97.7	%				96.6	%			97.8	%
Days of care
Homecare		1,705,085				1,656,206					6,685,968				6,277,961
Nursing home		305,331				322,713					1,228,789				1,230,726
Respite		11,602				11,155					45,221				37,961
Subtotal routine homecare and respite		2,022,018				1,990,074					7,959,978				7,546,648
Inpatient		27,444				27,235					113,891				106,299
Continuous care		17,063				23,189					79,639				95,524
Total		2,066,525				2,040,498					8,153,508				7,748,471
Number of days in relevant time period		92				92					365				366
Average daily census ("ADC") (days)
Homecare		18,533				18,002					18,318				17,153
Nursing home		3,319				3,508					3,367				3,363
Respite		126				121					123				104
Subtotal routine homecare and respite		21,978				21,631					21,808				20,620
Inpatient		298				296					312				290
Continuous care		186				252					218				261
Total		22,462				22,179					22,338				21,171
Total Admissions		17,419				16,427					70,817				67,447
Total Discharges		17,599				16,333					70,530				64,618
Average length of stay (days)		115.1				105.5					120.2				103.0
Median length of stay (days)		17.0				18.0					18.0				17.0
ADC by major diagnosis
Cerebro		44.3	%			44.2	%				44.6	%			44.0	%
Neurological		11.4				12.9					11.7				13.2
Cancer		10.0				9.9					9.8				10.0
Cardio		16.0				16.2					16.0				16.2
Respiratory		7.6				6.9					7.4				7.1
Other		10.7				9.9					10.5				9.5
Total		100.0	%			100.0	%				100.0	%			100.0	%
Admissions by major diagnosis
Cerebro		27.3	%			28.0	%				27.4	%			27.8	%
Neurological		6.8				7.0					6.9				7.6
Cancer		26.4				25.9					26.0				25.3
Cardio		14.6				15.3					14.7				15.6
Respiratory		10.8				9.8					10.9				9.9
Other		14.1				14.0					14.1				13.8
Total		100.0	%			100.0	%				100.0	%			100.0	%
Estimated uncollectible accounts as a percent of revenues		1.1	%			0.9	%				1.0	%			0.9	%
Accounts receivable --
Days of revenue outstanding-excluding unapplied Medicare payments		38.7				40.0					n.a.				n.a.
Days of revenue outstanding-including unapplied Medicare payments		28.9				28.5					n.a.				n.a.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
FOOTNOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2025 AND 2024
(unaudited)
(a)	Included in the results of operations for 2025 are the following significant credits/(charges) which may not be indicative of ongoing operations
	(in thousands):
			Three Months Ended December 31, 2025
			VITAS				Roto-Rooter				Corporate				Consolidated
	Stock option expense		$	-			$	-			$	(8,297	)		$	(8,297	)
	Amortization of reacquired franchise agreements			-				(2,352	)			-				(2,352	)
	Long-term incentive compensation			-				-				(2,332	)			(2,332	)
	Legal settlements			(221	)			-				-				(221	)
	Other			(500	)			(530	)			(25	)			(1,055	)
	Pretax impact on earnings			(721	)			(2,882	)			(10,654	)			(14,257	)
	Excess tax benefits on stock compensation			-				-				(1,209	)			(1,209	)
	Income tax benefit on the above			170				679				1,488				2,337
	After-tax impact on earnings		$	(551	)		$	(2,203	)		$	(10,375	)		$	(13,129	)
			For the Years Ended December 31, 2025
			VITAS				Roto-Rooter				Corporate				Consolidated
	Stock option expense		$	-			$	-			$	(32,671	)		$	(32,671	)
	Amortization of reacquired franchise agreements			-				(9,408	)			-				(9,408	)
	Long-term incentive compensation			-				-				(5,625	)			(5,625	)
	Legal settlements			(3,071	)			-				-				(3,071	)
	Other			(500	)			(530	)			(2,690	)			(3,720	)
	Pretax impact on earnings			(3,571	)			(9,938	)			(40,986	)			(54,495	)
	Excess tax benefits on stock compensation			-				-				(696	)			(696	)
	Income tax benefit on the above			868				2,316				5,665				8,849
	After-tax impact on earnings		$	(2,703	)		$	(7,622	)		$	(36,017	)		$	(46,342	)
(b)	Included in the results of operations for 2024 are the following significant credits/(charges) which may not be indicative of ongoing operations
	(in thousands):
			Three Months Ended December 31, 2024
			VITAS				Roto-Rooter				Corporate				Consolidated
	Stock option expense		$	-			$	-			$	(8,100	)		$	(8,100	)
	Long-term incentive compensation			-				-				(4,354	)			(4,354	)
	Amortization of reacquired franchise agreements			-				(2,352	)			-				(2,352	)
	Acquisition expense			203				3				-				206
	Pretax impact on earnings			203				(2,349	)			(12,454	)			(14,600	)
	Excess tax benefits on stock compensation			-				-				133				133
	Income tax benefit on the above			(50	)			547				1,836				2,333
	After-tax impact on earnings		$	153			$	(1,802	)		$	(10,485	)		$	(12,134	)
			For the Years Ended December 31, 2024
			VITAS				Roto-Rooter				Corporate				Consolidated
	Stock option expense		$	-			$	-			$	(32,033	)		$	(32,033	)
	Long-term incentive compensation			-				-				(20,152	)			(20,152	)
	Amortization of reacquired franchise agreements			-				(9,408	)			-				(9,408	)
	Acquisition expense			(1,099	)			(34	)			-				(1,133	)
	Pretax impact on earnings			(1,099	)			(9,442	)			(52,185	)			(62,726	)
	Excess tax benefits on stock compensation			-				-				4,442				4,442
	Income tax benefit on the above			267				2,200				6,628				9,095
	After-tax impact on earnings		$	(832	)		$	(7,242	)		$	(41,115	)		$	(49,189	)
(c)	VITAS has 12 large (greater than 450 ADC), 23 medium (greater than 200 but less than 450 ADC) and 24 small (less than 200 ADC) hospice programs. Of Vitas' 33 Medicare provider numbers, for the current cap year, 22 provider numbers have a Medicare cap cushion of greater than 10%, six provider numbers have a Medicare cap cushion between 0% and 10%, and five provider numbers have a Medicare cap liability.

Source: Chemed Corp.