Form 8-K

8-K — CHEMED CORP

Accession: 0000019584-26-000010

Filed: 2026-04-23

Period: 2026-04-23

CIK: 0000019584

SIC: 8082 (SERVICES-HOME HEALTH CARE SERVICES)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — che-20260423x8k.htm (Primary)

EX-99 (che-20260423xex99.htm)

GRAPHIC (che-20260423xex99g001.jpg)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: che-20260423x8k.htm · Sequence: 1

che-20260423x8k

false000001958400000195842026-04-232026-04-23

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):

April 23, 2026

CHEMED CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

1-8351

31-0791746

(State or other

‎jurisdiction of

‎incorporation)

(Commission File Number)

(I.R.S. Employer

‎Identification

‎Number)

2600 First Financial Center, 255 East 5th Street, Cincinnati, OH 45202

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code:

(513) 762-6690

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

[_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240-14a-12)

[_] Pre-commencement communications pursuant to Rule 14d-2(b) under Exchange Act (17 CFR 240-14d-2(b))

[_] Pre-commencement communications pursuant to Rule 13e-4 (c) under Exchange Act (17 CFR 240-13e-4(c))

Securities registered pursuant to 12(b) of the Act:

Title of each class

Trading symbol

Name of each exchange on which

registered

Capital stock $1 par value

CHE

NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934. [_]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [_]

Page 1 of 3

Item 2.02 Results of Operations and Financial Condition

On April 23, 2026, Chemed Corporation issued a press release announcing its financial results for the quarter ended March 31, 2026. A copy of the release is furnished herewith as Exhibit 99.

Item 9.01 Financial Statements and Exhibits

Exhibit

(99) Registrant’s press release dated March 31, 2026

104 The cover page from this Current Report on Form 8-K formatted in Inline XBRL

Page 2 of 3

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CHEMED CORPORATION

Dated: April 23, 2026

By:

/s/ Michael D. Witzeman

Michael D. Witzeman

Executive Vice President and Chief Financial Officer

Page 3 of 3

EX-99

Filename: che-20260423xex99.htm · Sequence: 2

Exhibit 99

CONTACT: Michael D. Witzeman

(513) 762-6714

Chemed Reports First-Quarter 2026 Results

Full-Year Guidance Increased Due To:

Strong VITAS Performance

Re-purchase of 500,000 Shares in the Quarter

Two Roto-Rooter Franchises Purchased for $20.6 Million

CINCINNATI, April 23, 2026—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 first quarter ended March 31, 2026, versus the comparable prior-year period.

Results for Quarter Ended March 31, 2026

Consolidated operating results:

Revenue increased 1.6% to $657.5 million

GAAP Diluted Earnings-per-Share (EPS) of $4.84, a decrease of 0.4%

Adjusted Diluted EPS of $5.65, an increase of 0.4%

VITAS segment operating results:

Net Patient Revenue of $420.0 million, an increase of 3.1%

Average Daily Census (ADC) of 22,723, an increase of 2.2%

Admissions of 19,394, an increase of 6.9%

Net Income, excluding certain discrete items, of $52.2 million, an increase of 4.4%

Adjusted EBITDA, excluding Medicare Cap, of $70.8 million, an increase of 0.6%

Adjusted EBITDA margin, excluding Medicare Cap, of 16.8%, a decrease of 41-basis points

Roto-Rooter segment operating results:

Revenue of $237.5 million, a decrease of 0.9%

Net Income, excluding certain discrete items, of $37.7 million, a decrease of 9.7%

Adjusted EBITDA of $53.5 million, a decline of 9.6%

Adjusted EBITDA margin of 22.5%, a decline of 218-basis points

VITAS

VITAS net revenue was $420.0 million in the first quarter of 2026, which is an increase of 3.1% when compared to the prior-year period. This revenue increase is comprised primarily of a 2.2% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.6%. Acuity mix shift negatively impacted revenue growth 120-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 47-basis points.

Total VITAS admissions increased 6.9% in the first quarter of 2026 compared to the first quarter of 2025.

In the first quarter of 2026, VITAS accrued $2.4 million in Medicare Cap billing limitation. No Medicare Cap billing limitation was recorded in the first quarter of 2026 for the Florida combined program and none is anticipated for the 2026 fiscal period.

Of VITAS’ 33 Medicare provider numbers, 25 provider numbers have an anticipated full-year Medicare Cap cushion of 10% or greater, four provider numbers have a cushion between 0% and 10%, and four provider numbers have a Medicare Cap billing limitation totaling $9.5 million.

Average revenue per patient per day in the first quarter of 2026 was $210.62 which is 146-basis points above the prior-year period. Reimbursement for routine home care and high-acuity care averaged $188.59 and $1,131.82, respectively. During the quarter, high-acuity days-of-care were 2.3% of total days of care, a decline of 28-basis points when compared to the prior-year quarter.

The first quarter 2026 gross margin, excluding Medicare Cap, was 22.9%, a 71-basis point decline from the same period of 2025. Selling, general and administrative expenses were $26.1 million in the first quarter of 2026 compared to $26.5 million in the prior-year quarter.

Adjusted EBITDA, excluding Medicare Cap, totaled $70.8 million in the quarter, an increase of 0.6% when compared to the prior-year period. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 16.8%.

Roto-Rooter

Roto-Rooter generated quarterly revenue of $237.5 million in the first quarter of 2026, a decrease of 0.9%, when compared to the prior-year quarter.

Roto-Rooter branch commercial revenue in the quarter totaled $56.5 million, a decrease of 1.9% from the prior-year period. This aggregate commercial revenue change consisted of excavation declining 7.8%, water restoration declining 10.0% and drain cleaning declining 0.9%, offset by an increase in plumbing of 3.9%.

Roto-Rooter branch residential revenue in the quarter totaled $166.3 million, a decrease of 1.5%, over the prior-year period. This aggregate residential revenue change consisted of water restoration

declining 11.8% offset by plumbing increasing 9.3%, excavation increasing 0.9%, and drain cleaning increasing of 1.1%.

In the first quarter of 2026, revenue from independent contractors was $17.8 million which is a decline of 3.3% as compared to the same period of 2025.

Roto-Rooter’s first quarter 2026 gross margin was 51.0%. This compares to the prior-year quarter’s gross margin of 50.9%. Roto-Rooter’s selling, general and administrative expenses were $67.9 million in the quarter, which is an increase of 8.4% compared to the first quarter of 2025.

Adjusted EBITDA in the first quarter of 2026 totaled $53.5 million, a decrease of 9.6% when compared to the first quarter of 2025. The Adjusted EBITDA margin in the quarter was 22.5% which represents a 218-basis point decline from the first quarter of 2025.

On March 31, 2026, Roto-Rooter purchased the territory and assets of the franchises operating in San Francisco, California and Fort Worth, Texas in two separate transactions. The aggregated, combined purchase price of these transactions was approximately $20.6 million. Collectively, these Roto-Rooter locations serve a population of approximately 3.3 million people. This purchase is part of Roto-Rooter’s ongoing strategy of acquiring franchises to boost productivity, market share and profitability. These two acquisitions are anticipated to add $5.0 million to $5.5 million of revenue for the remainder of 2026.

Chemed Consolidated

As of March 31, 2026, Chemed had total cash and cash equivalents of $16.9 million and $91.2 million in long-term debt.

In April 2026, Chemed entered into a new five-year $450 million Amended and Restated Credit Agreement (Credit Agreement). This Credit Agreement consists of a $450 million revolving line of credit and a $250 million expansion feature. The interest rate on this Credit Agreement has a floating rate that is currently SOFR plus 100-basis points. There is approximately $313.3 million undrawn borrowing capacity under the Credit Agreement after excluding $45.5 million for Letters of Credit.

During the quarter, the Company repurchased 500,000 shares of Chemed stock for $197.7 million which equates to a cost per share of $395.36. As of March 31, 2026, there was approximately $229.6 million of remaining share repurchase authorization under its plan.

Guidance Update

Historically, we do not give quarterly updates to guidance. Due to the materially improved performance of VITAS, coupled with the level of share repurchases in the first quarter of 2026, we believe updating guidance is appropriate in this instance. Further operational detail will be provided during the investor conference call.

VITAS’ initiatives to return to a normal growth pattern after managing the 2025 Medicare Cap issue were more quickly successful than originally anticipated. This led to higher revenue, excluding the impact of Medicare Cap, and adjusted EBITDA margins, excluding the impact of Medicare Cap, in the first quarter 2026 than what was included in the original guidance. As a result, anticipated ADC growth for 2026 is updated to a revised range of 4.5% to 5.5% compared to the original guidance range of 3.5% to 4.0%. Anticipated revenue growth, excluding the impact of the Medicare Cap, improves from the original guidance range of 5.5% to 6.5% to a revised range of 6.5% to 7.5%. Finally, revised EBITDA margin, excluding the impact of the Medicare Cap, is anticipated to be 18.0% to 18.5% compared to the original guidance of 17.5% to 18.5%.

Roto-Rooter performed generally within our expectations. In total, there were various headwinds and tailwinds that contributed to the overall results in the first quarter of 2026.

In the first quarter of 2026, unusual ice and snowstorms led to some level of service disruption for five days of the quarter across 24 Roto-Rooter branches. This resulted in an estimated loss of net revenue of between $3 million and $4 million in the quarter.

Additionally, total leads for Roto-Rooter increased 3.3% during the quarter but continuing the previously discussed trends, a larger portion of those leads were the result of paid internet marketing. As a result, total marketing expense during the quarter exceeded our expectations by approximately $2.0 million.

When factoring all the gives and takes within the expected Roto-Rooter performance for the remainder of fiscal 2026, anticipated revenue growth remains unchanged at 3.0% to 3.5%. Estimated adjusted EBITDA margin is lowered slightly to 21.5% to 22.5% compared to the original guidance range of 22.5% to 23.0%. This is primarily due to elevated marketing costs now expected to persist above our original guidance for the remainder of the year.

Based on 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 $24.00 to $24.75. The mid-point of the revised guidance represents a 13% increase from 2025 adjusted earnings per diluted share of $21.55. The revised 2026 guidance assumes an effective corporate tax rate on adjusted earnings of 24.5% and a diluted share count of 13.6 million shares. The original 2026 guidance was for adjusted earnings per diluted share to be between $23.25 and $24.25.

Conference Call

As previously disclosed, Chemed will host a conference call and webcast at 10 a.m., ET, on Friday April 24, 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/o65jro38.

Participants may also register via teleconference at:

https://register-conf.media-server.com/register/BI6f413b6cd3ee468481cac75d7519454e.

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, 2025 and in its Quarterly Reports filed in 2026. 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.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)(unaudited)

Three Months Ended March 31,

2026

2025

Service revenues and sales

657,513

646,943

Cost of services provided and goods sold

441,749

430,530

Selling, general and administrative expenses (aa)

114,321

105,587

Depreciation

14,303

13,445

Amortization

2,570

2,572

Other operating (income)/expense

(8)

Total costs and expenses

572,935

552,185

Income from operations

84,578

94,758

Interest expense

(512)

(329)

Other income--net (bb)

4,774

1,245

Income before income taxes

88,840

95,674

Income taxes

(22,538)

(23,917)

Net income

66,302

71,757

Earnings Per Share

Net income

4.85

4.91

Average number of shares outstanding

13,675

14,622

Diluted Earnings Per Share

Net income

4.84

4.86

Average number of shares outstanding

13,690

14,764

(aa) Selling, general and administrative ("SG&A") expenses comprise (in thousands):

Three Months Ended March 31,

2026

2025

SG&A expenses before long-term incentive compensation

and the impact of market value adjustments related to

deferred compensation plans

108,931

103,760

Market value adjustments related to deferred

compensation trusts

3,885

(830)

Long-term incentive compensation

1,505

2,657

Total SG&A expenses

114,321

105,587

(bb) Other income--net comprises (in thousands):

Three Months Ended March 31,

2026

2025

Market value adjustments related to deferred

compensation trusts

3,885

(830)

Interest income

890

2,076

Other

(1)

Total other income--net

4,774

1,245

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)(unaudited)

March 31,

2026

2025

Assets

Current assets

Cash and cash equivalents

16,856

173,882

Accounts receivable less allowances

215,479

285,873

Inventories

7,208

7,790

Prepaid income taxes

7,614

4,436

Prepaid expenses

26,906

30,404

Total current assets

274,063

502,385

Investments of deferred compensation plans held in trust

143,778

127,949

Properties and equipment, at cost less accumulated depreciation

207,734

199,679

Lease right of use asset

133,597

131,150

Identifiable intangible assets less accumulated amortization

80,417

89,929

Goodwill

687,501

666,940

Other assets

8,725

8,483

Total Assets

1,535,815

1,726,515

Liabilities

Current liabilities

Accounts payable

65,698

47,692

Accrued insurance

65,101

65,743

Accrued income taxes

25,770

38,247

Accrued compensation

62,750

59,905

Short-term lease liability

41,286

42,976

Other current liabilities

60,810

35,993

Total current liabilities

321,415

290,556

Deferred income taxes

14,575

11,771

Deferred compensation liabilities

142,660

127,292

Long-term debt

91,200

Long-term lease liability

104,448

102,082

Other liabilities

13,523

13,052

Total Liabilities

687,821

544,753

Stockholders' Equity

Capital stock

37,607

37,535

Paid-in capital

1,603,730

1,538,419

Retained earnings

3,013,504

2,786,264

Treasury stock, at cost

(3,809,245)

(3,182,718)

Deferred compensation payable in Company stock

2,398

2,262

Total Stockholders' Equity

847,994

1,181,762

Total Liabilities and Stockholders' Equity

1,535,815

1,726,515

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)(unaudited)

For the Three Months Ended March 31,

2026

2025

Cash Flows from Operating Activities

Net income

66,302

71,757

Adjustments to reconcile net income to net cash provided

by operating activities:

Depreciation and amortization

16,873

16,017

Stock option expense

9,249

9,091

Benefit for deferred income taxes

(4,737)

(14,174)

Noncash long-term incentive compensation

1,386

2,420

Amortization of debt issuance costs

Changes in operating assets and liabilities, excluding

amounts acquired in business combinations:

Increase in accounts receivable

(32,899)

(67,424)

Decrease in inventories

335

403

Increase in prepaid expenses

(88)

(4,430)

Increase/(decrease) in accounts payable and

other current liabilities

2,235

(22,592)

Change in current income taxes

26,817

37,286

Net change in lease assets and liabilities

(471)

169

(Increase)/decrease in other assets

(3,603)

3,034

Increase in other liabilities

6,709

951

Other sources

156

Net cash provided by operating activities

88,219

32,744

Cash Flows from Investing Activities

Business combinations, net of cash acquired

(20,610)

(225)

Capital expenditures

(17,116)

(13,280)

Proceeds from sale of fixed assets

134

112

Other uses

(197)

(281)

Net cash used by investing activities

(37,789)

(13,674)

Cash Flows from Financing Activities

Purchases of treasury stock

(190,039)

(33,222)

Proceeds from revolving line of credit

135,480

Payments on revolving line of credit

(44,280)

Dividends paid

(8,173)

(7,325)

Capital stock surrendered to pay taxes on stock-based compensation

(1,482)

(6,254)

Proceeds from exercise of stock options

1,312

22,666

Change in cash overdrafts payable

(493)

438

Other (uses)/sources

(414)

159

Net cash used by financing activities

(108,089)

(23,538)

Decrease in Cash and Cash Equivalents

(57,659)

(4,468)

Cash and cash equivalents at beginning of year

74,515

178,350

Cash and cash equivalents at end of period

16,856

173,882

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(in thousands)(unaudited)

Chemed

VITAS

Roto-Rooter

Corporate

Consolidated

2026 (a)

Service revenues and sales

420,018

237,495

657,513

Cost of services provided and goods sold

325,467

116,282

441,749

Selling, general and administrative expenses

26,109

67,929

20,283

114,321

Depreciation

5,912

8,379

14,303

Amortization

2,544

2,570

Other operating expense/(income)

(60)

(8)

Total costs and expenses

357,566

195,074

20,295

572,935

Income/(loss) from operations

62,452

42,421

(20,295)

84,578

Interest expense

(50)

(136)

(326)

(512)

Intercompany interest income/(expense)

6,238

4,512

(10,750)

Other income—net

4,664

4,774

Income/(loss) before income taxes

68,735

46,812

(26,707)

88,840

Income taxes

(16,528)

(11,028)

5,018

(22,538)

Net income/(loss)

52,207

35,784

(21,689)

66,302

2025 (b)

Service revenues and sales

407,400

239,543

646,943

Cost of services provided and goods sold

312,807

117,723

430,530

Selling, general and administrative expenses

26,538

62,649

16,400

105,587

Depreciation

5,196

8,237

13,445

Amortization

2,546

2,572

Other operating expense/(income)

(13)

Total costs and expenses

344,631

191,142

16,412

552,185

Income/(loss) from operations

62,769

48,401

(16,412)

94,758

Interest expense

(48)

(132)

(149)

(329)

Intercompany interest income/(expense)

5,296

3,930

(9,226)

Other income—net

1,187

1,245

Income/(loss) before income taxes

68,065

52,209

(24,600)

95,674

Income taxes

(18,035)

(12,265)

6,383

(23,917)

Net income/(loss)

50,030

39,944

(18,217)

71,757

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 MARCH 31, 2026 AND 2025

(in thousands)(unaudited)

Chemed

VITAS

Roto-Rooter

Corporate

Consolidated

2026

Net income/(loss)

52,207

35,784

(21,689)

66,302

Add/(deduct):

Interest expense

136

326

512

Income taxes

16,528

11,028

(5,018)

22,538

Depreciation

5,912

8,379

14,303

Amortization

2,544

2,570

EBITDA

74,723

57,871

(26,369)

106,225

Add/(deduct):

Intercompany interest expense/(income)

(6,238)

(4,512)

10,750

Interest income

(95)

(15)

(779)

(889)

Stock option expense

9,249

Long-term incentive compensation

1,505

Acquisition expense

167

Adjusted EBITDA

68,390

53,511

(5,644)

116,257

2025

Net income/(loss)

50,030

39,944

(18,217)

71,757

Add/(deduct):

Interest expense

132

149

329

Income taxes

18,035

12,265

(6,383)

23,917

Depreciation

5,196

8,237

13,445

Amortization

2,546

2,572

EBITDA

73,335

63,124

(24,439)

112,020

Add/(deduct):

Intercompany interest expense/(income)

(5,296)

(3,930)

9,226

Interest income

(49)

(10)

(2,017)

(2,076)

Stock option expense

9,091

Long-term incentive compensation

2,657

Adjusted EBITDA

67,990

59,184

(5,482)

121,692

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 March 31,

2026

2025

Net income as reported

66,302

71,757

Add/(deduct) pre-tax cost of:

Stock option expense

9,249

9,091

Amortization of reacquired franchise rights

2,352

Long-term incentive compensation

1,505

2,657

Acquisition expense

167

Add/(deduct) tax impacts:

Tax impact of the above pre-tax adjustments (1)

(2,248)

(2,320)

Excess tax expenses/(benefits) on stock compensation

(463)

Adjusted net income

77,383

83,074

Diluted Earnings Per Share As Reported

Net income

4.84

4.86

Average number of shares outstanding

13,690

14,764

Adjusted Diluted Earnings Per Share

Adjusted net income

5.65

5.63

Average number of shares outstanding

13,690

14,764

(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 March 31,

OPERATING STATISTICS

2026

2025

Net revenue ($000) (c)

Homecare

371,091

351,566

Inpatient

35,925

34,022

Continuous care

18,133

24,637

Other

5,578

5,344

Subtotal

430,727

415,569

Room and board, net

(3,257)

(3,525)

Contractual allowances

(5,077)

(2,319)

Medicare cap allowance

(2,375)

(2,325)

Net Revenue

420,018

407,400

Net revenue as a percent of total before Medicare cap allowance

Homecare

86.2

84.6

Inpatient

8.3

8.2

Continuous care

4.2

5.9

Other

1.3

Subtotal

100.0

Room and board, net

(0.8)

Contractual allowances

(1.1)

(0.6)

Medicare cap allowance

(0.6)

Net Revenue

97.5

98.0

Days of care

Homecare

1,691,619

1,632,569

Nursing home

294,818

307,108

Respite

10,875

9,995

Subtotal routine homecare and respite

1,997,312

1,949,672

Inpatient

30,474

29,704

Continuous care

17,288

22,620

Total

2,045,074

2,001,996

Number of days in relevant time period

Average daily census ("ADC") (days)

Homecare

18,796

18,140

Nursing home

3,276

3,412

Respite

120

111

Subtotal routine homecare and respite

22,192

21,663

Inpatient

339

330

Continuous care

192

251

Total

22,723

22,244

Total Admissions

19,394

18,139

Total Discharges

18,537

17,875

Average length of stay (days)

102.7

118.7

Median length of stay (days)

15.0

16.0

ADC by major diagnosis

Cerebro

44.5

44.7

Neurological

11.3

12.4

Cancer

9.6

Cardio

16.3

16.1

Respiratory

7.7

7.2

Other

10.6

10.0

Total

100.0

Admissions by major diagnosis

Cerebro

26.9

28.4

Neurological

6.9

6.5

Cancer

23.5

24.6

Cardio

15.8

15.0

Respiratory

12.4

11.6

Other

14.5

13.9

Total

100.0

Estimated uncollectible accounts as a percent of revenues

1.2

0.6

Accounts receivable --

Days of revenue outstanding-excluding unapplied Medicare payments

38.8

47.3

Days of revenue outstanding-including unapplied Medicare payments

33.6

44.5

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

FOOTNOTES TO FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND YEARS ENDED MARCH 31, 2026 AND 2025

(unaudited)

(a)

Included in the results of operations for 2026 are the following significant credits/(charges) which may not be indicative of ongoing operations

(in thousands):

Three Months Ended March 31, 2026

VITAS

Roto-Rooter

Corporate

Consolidated

Stock option expense

(9,249)

Amortization of reacquired franchise agreements

(2,352)

Long-term incentive compensation

(1,505)

Acquisition expense

(167)

Pretax impact on earnings

(2,519)

(10,754)

(13,273)

Excess tax expenses on stock compensation

(56)

Income tax benefit on the above

587

1,661

2,248

After-tax impact on earnings

(1,932)

(9,149)

(11,081)

(b)

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 March 31, 2025

VITAS

Roto-Rooter

Corporate

Consolidated

Stock option expense

(9,091)

Long-term incentive compensation

(2,657)

Amortization of reacquired franchise agreements

(2,352)

Pretax impact on earnings

(2,352)

(11,748)

(14,100)

Excess tax benefits on stock compensation

463

Income tax benefit on the above

546

1,774

2,320

After-tax impact on earnings

(1,806)

(9,511)

(11,317)

(c)

VITAS has 13 large (greater than 450 ADC), 23 medium (greater than 200 but less than 450 ADC) and 23 small (less than 200 ADC) hospice programs. Of Vitas' 33 Medicare provider numbers, for the current cap year, 25 provider numbers have a Medicare cap cushion of greater than 10%, four provider numbers have a Medicare cap cushion between 0% and 10%, and four provider numbers have a Medicare cap liability.

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Document And Entity Information

Apr. 23, 2026

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Document Period End Date

Apr. 23, 2026

Entity Registrant Name

CHEMED CORPORATION

Entity Incorporation, State or Country Code

Entity File Number

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Entity Tax Identification Number

31-0791746

Entity Address, Address Line One

2600 First Financial Center

Entity Address, Address Line Two

255 East 5th Street

Entity Address, City or Town

Cincinnati

Entity Address, State or Province

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City Area Code

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Local Phone Number

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