Stonegate Capital Partners has updated its coverage on Viemed Healthcare, Inc. (NASDAQ: VMD), following the company's fiscal year 2025 results. Viemed reported net revenue of $270.3 million, a 21% year-over-year increase, and generated $14.9 million in net income. The company achieved a record adjusted EBITDA of $61.4 million, driven by continued platform momentum, contributions from the Lehan's acquisition, and tailwinds from the broader shift to in-home care. Accelerating adoption of sleep and resupply services also contributed to growth.
A key headwind during the year was the updated National Coverage Determination (NCD), which introduced additional documentation requirements and tightened coverage criteria, temporarily moderating ventilator patient growth. However, reimbursement levels remained unchanged, and ventilator activity has already begun to normalize. Viemed ended the year with free cash flow up 141% year-over-year.
Stonegate Capital Partners highlighted several key takeaways from the results. Sleep and resupply services are overtaking ventilation as primary growth drivers, improving the quality of recurring revenue and reducing sensitivity to regulatory changes. The Lehan's acquisition broadens Viemed's commercial exposure, diversifies its payor mix, and creates a longer runway for scaled growth. Despite margin mix pressure from the shift toward lower-margin services, Stonegate believes that FY26 guidance and the current valuation suggest durable growth remains underappreciated.
Viemed Healthcare is a provider of home medical equipment and post-acute care services, focusing on respiratory care and sleep therapy. The company's strategy emphasizes expanding its service offerings and patient base through organic growth and acquisitions. Stonegate Capital Partners is a capital markets advisory firm that provides investor relations, equity research, and institutional investor outreach services. For more details, the full announcement is available at Stonegate Capital Partners.
