CHEMED CORP
For the period ended Sep 30, 2025. Filed Oct 31, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 31, 2025
CHE$528.05-1.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0001562762-25-000186
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0000019584-25-000006
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 72 previous paragraphs and 66 current paragraphs.
31 unchanged; 27 reworded; 4 added; 11 removed; 3 previous and 4 current paragraphs rearranged.
Tables are not compared: 24 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
A $12.2 million increase in other current liabilities due primarily to the increase in Medicare Cap liability.
Current report
The increase in service revenues at VITAS is comprised primarily of 2.5% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 4.1%. Acuity mix shift negatively impacted revenue growth by 121-basis points in the quarter when compared to the prior year revenue and level-of-care mix. The combination of Medicare cap and other contra revenue changes decreased revenue growth by 124-basis points.
Current report
SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation trusts for thethird quarter of 2025 were up 6.5% when compared to the third quarter of 2024. $2.7 million of this increase was the result of a severance accrual related to one VITAS executive as well as a $2.3 million increase in legal expense mainly at VITAS in the third quarter of 2025 compared to the third quarter of 2024. The remaining increase is primarily related to variable selling expenses, mainly internet marketing costs at Roto-Rooter.
Current report
The increase in service revenues at VITAS is comprised primarily of 6.6% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 3.8%. Acuity mix shift negatively impacted revenue growth by 100-basis points for the year when compared to the prior year revenue and level-of-care mix. The combination of Medicare cap and other contra revenue changes decreased revenue growth by 120-basis points.
Removed paragraphs (11)
Previous report
A $4.6 million increase in lease right of use asset due to lease renewals. This resulted in a similar increase in the lease liability accounts.
Previous report
A $6.7 million increase in accounts payable due to timing of payments.
Previous report
A $7.6 million decrease in income taxes payable due to timing of payments.
Previous report
A $63.8 million increase in other assets due to the $47.0 million refund of the OAS deposit and the change in the deferred compensation asset due to market valuations.
Previous report
An $11.7 million decrease in net income.
Previous report
A $9.4 million decrease in noncash long-term incentive compensation.
Previous report
A $14.2 million decrease in other liabilities due to the change in deferred compensation liability due to market valuations.
Previous report
The increase in service revenues at VITAS is comprised primarily of a 6.1% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 4.2%. Acuity mix shift negatively impacted revenue growth by 71-basis points in the quarter when compared to the prior year revenue and level-of-care mix. The combination of Medicare cap and other contra revenue changes decreased revenue growth by 379-basis.
Previous report
The $16.4 million Medicare Cap billing limitation accrued in the second quarter of 2025 is comprised of three components. First, a catch-up entry of $9.5 million was required to recognize the Medicare Cap billing limitation in Florida related to the first six-months of the 2025 Medicare Cap year which includes our fourth quarter of 2024 and first quarter of 2025. Second, $4.8 million was
Previous report
-29- recorded related to the Medicare Cap billing limitation for the current quarter of 2025 related to our Florida combined program. Third, $2.1 million was recognized for the current quarter of 2025 related to all other VITAS programs, mainly in California. The amount recognized for all other VITAS programs is in-line with the historical run-rate for these programs and our original projections of 2025.
Previous report
The increase in service revenues at VITAS is comprised primarily of a 8.9% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 3.7%. Acuity mix shift negatively impacted revenue growth by 90-basis points in the quarter when compared to the prior year revenue and level-of-care mix. The combination of Medicare cap and other contra revenue changes decreased revenue growth by 140-basis.
Reworded paragraphs (27)
Previous wording
For the three months ended June 30, 2025, the increase in consolidated service revenues and sales was driven by a 5.8% increase at VITAS and by a .6% increase at Roto-Rooter. The increase in service revenues at VITAS is comprised primarily of 6.1% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 4.2%. Acuity mix shift negatively impacted revenue growth by 71-basis points in the quarter when compared to the prior year revenue and level-of-care mix. The combination of Medicare cap and other contra revenue changes decreased revenue growth by 379-basis points. The increase in service revenues at Roto-Rooter was driven by an increase in excavation and water restoration offset by a decrease in plumbing and drain cleaning.
Current wording
For the three months ended September 30, 2025, the increase in consolidated service revenues and sales was driven by a 4.2% increase at VITAS and by a 1.1% increase at Roto-Rooter. The increase in service revenues at VITAS is comprised primarily of 2.5% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 4.1%. Acuity mix shift negatively impacted revenue growth by 121-basis points in the quarter when compared to the prior year revenue and level-of-care mix. The combination of Medicare cap and other contra revenue changes decreased revenue growth by 124-basis points. The increase in service revenues at Roto-Rooter was driven by an increase in plumbing, excavation and water restoration offset by a decrease in drain cleaning.
Previous wording
For the six months ended June 30, 2025, the increase in consolidated service revenues and sales was driven by a 10.3% increase at VITAS and by a 1.2% increase at Roto-Rooter. The increase in service revenues at VITAS is comprised primarily of 8.9% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 3.7%. Acuity mix shift negatively impacted revenue growth by 90-basis points in the quarter when compared to the prior year revenue and level-of-care mix. The combination of Medicare cap and other contra revenue changes decreased revenue growth by 140-basis points. The increase in service revenues at Roto-Rooter was driven by an increase in excavation and water restoration offset by a decrease in plumbing and drain cleaning.
Current wording
For the nine months ended September 30, 2025, the increase in consolidated service revenues and sales was driven by an 8.2% increase at VITAS and by a 1.2% increase at Roto-Rooter. The increase in service revenues at VITAS is comprised primarily of 6.6% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 3.8%. Acuity mix shift negatively impacted revenue growth by 100-basis points for the year when compared to the prior year revenue and level-of-care mix. The combination of Medicare cap and other contra revenue changes decreased revenue growth by 120-basis points. The increase in service revenues at Roto-Rooter was driven by an increase in excavation and water restoration offset by a decrease in plumbing and drain cleaning.
Previous wording
The pro forma revenue and earnings for the Company for the three and six months ended June 30, as if the Covenant acquisition made in 2024 was completed on January 1, 2024 are as follows (in thousands, except per share data):
Current wording
The pro forma revenue and earnings for the Company for the three and nine months ended September 30, 2025 as if the Covenant acquisition made in 2024 was completed on January 1, 2024 are as follows (in thousands, except per share data):
Previous wording
A $13.7 million increase in accounts receivable due to timing of payments. Other significant changes in our accounts receivable balances are typically driven by the timing of payments received from the Federal government at our VITAS subsidiary. We typically receive a payment in excess of $60.0 million from the Federal government for hospice services every other Friday. The timing of a period end will have a significant impact on the accounts receivable at VITAS. These changes generally normalize over a two-year period, as cash flow variations in one year are offset in the following year.
Current wording
A $44.4 million increase in accounts receivable due to the timing of payments. Other significant changes in our accounts receivable balances are typically driven by the timing of payments received from the Federal government at our VITAS subsidiary. We typically receive a payment in excess of $60.0 million from the Federal government for hospice services every other Friday. The timing of a period end will have a significant impact on the accounts receivable at VITAS. These changes generally normalize over a two-year period, as cash flow variations in one year are offset in the following year.
Previous wording
A $47.4 million decrease in other assets primarily related to the refund of the OAS deposit.
Current wording
A $47.6 million decrease in other assets primarily related to the refund of the OAS deposit.
Previous wording
A $37.4 million decline in accrued compensation due to the payment of 2024 bonuses in the first quarter of 2025 and reduction in current year accrual rates due to lower earnings in 2025.
Current wording
A $12.4 million decline in accrued compensation due primarily to the payment of 2024 bonuses in the first quarter of 2025, as well as lower bonus expense in 2025.
Previous wording
A $13.2 million decrease in deferred income taxes primarily due to the refund of the OAS deposit.
Current wording
A $16.3 million decrease in deferred income taxes due primarily to the refund of the OAS deposit.
Previous wording
Net cash provided by operating activities increased $9.3 million from June 30, 2024 to June 30, 2025. Material changes include the following:
Current wording
Net cash provided by operating activities increased $2.2 million from September 30, 2024 to September 30, 2025. See the Unaudited Consolidated Statements of Cash Flow on page 5 for the detail components making up the change.
Previous wording
We are subject to various lawsuits and claims in the normal course of our business. In addition, we periodically receive communications from governmental and regulatory agencies concerning compliance with Medicare and Medicaid billing requirements at our VITAS subsidiary. We establish reserves for specific, uninsured liabilities in connection with regulatory and legal action that we deem to be probable and estimable. We disclose the existence of regulatory and legal actions when we believe it is reasonably possible that a loss could occur in connection with the specific action. In most instances, we are unable to make a reasonable estimate of any reasonably possible liability due to the uncertainty of the outcome and stage of litigation. We record legal fees associated with legal and regulatory actions as the costs are incurred.
Current wording
We are subject to various lawsuits and claims in the normal course of our business. In addition, we periodically receive communications from governmental and regulatory agencies concerning compliance with Medicare and Medicaid billing requirements at our VITAS subsidiary. We establish reserves for specific, uninsured liabilities in connection with regulatory and legal action that we deem to be probable and estimable. We disclose the existence of regulatory and legal actions when we believe it is reasonably possible that a loss could occur in connection with the specific action. In most instances, we are unable to make a reasonable estimate of any
Previous wording
Our service revenues and sales for the second quarter of 2025 increased 3.8% versus services and sales revenues for the second quarter of 2024. Of this increase, a $21.6 million increase was attributable to VITAS, and a $1.3 million increase at Roto-Rooter. The following chart shows the components of revenue by operating segment (in thousands):
Current wording
Our service revenues and sales for the third quarter of 2025 increased 3.1% versus services and sales revenues for the third quarter of 2024. Of this increase, a $16.3 million increase was attributable to VITAS, and a $2.4 million increase at Roto-Rooter. The following chart shows the components of revenue by operating segment (in thousands):
Previous wording
The decrease in drain cleaning revenues for the second quarter of 2025 versus 2024 is attributable to a 3.2% increase in price and service mix offset by a 7.2% decrease in job count. The decrease in plumbing revenues for the second quarter of 2025 versus 2024 is attributable to a 2.6% decrease in price and service mix shift offset by a .9% increase in job count. Excavation and water restoration jobs are generally sold as a result of initial calls from customers regarding drain cleaning issues. As a result, excavation revenues increased 1.4% and water restoration revenues increased 16.5%. Contractors operations decreased 4.4%.
Current wording
The increase in plumbing revenues for the third quarter of 2025 versus 2024 is attributable to a 0.2% increase in price and service mix shift and a 5% increase in job count. The decrease in drain cleaning revenues for the third quarter of 2025 versus 2024 is attributable to a 3.5% increase in price and service mix offset by a 4.6% decrease in job count. Excavation and water restoration jobs
Previous wording
The consolidated gross margin was 29.8% in the second quarter of 2025 as compared with 34.6% in the second quarter of 2024. On a segment basis, VITAS’ gross margin was 19.1% in the second quarter of 2025 compared with 23.8% in the second quarter of 2024. The decline was primarily due to an increase in Medicare Cap liability of $15.0 million in the second quarter of 2025 compared to the second quarter of 2024. The Roto-Rooter segment’s gross margin was 49.0% for the second quarter of 2025 as compared with 52.9% in the second quarter of 2024. The decline was primarily due to an increase of $4.9 million in casualty insurance expense in the second quarter of 2025.
Current wording
The consolidated gross margin was 31.5% in the third quarter of 2025 as compared with 34.6% in the third quarter of 2024. On a segment basis, VITAS’ gross margin was 21.3% in the third quarter of 2025 as compared with 24.6% in the third quarter of 2024. The decline is related to an increase in Medicare Cap liability of $3.8 million in the third quarter of 2025 compared to the third quarter of 2024 and an increase in variable patient care expenses and wages. The Roto-Rooter segment’s gross margin was 50.7% for the third quarter of 2025 as compared with 52.9% in the third quarter of 2024. The decline is primarily due to an increase in variable expenses.
Previous wording
Net income/(loss) for thesecond quarter of 2025 versus the second quarter of 2024 by segment (in thousands):
Current wording
Net income/(loss) for the third quarter of 2025 versus the third quarter of 2024 by segment (in thousands):
Previous wording
After-tax earnings as a percent of revenue at VITAS in thesecond quarter of 2025 was 9.6% as compared to 13.1% in thesecond quarter of 2024. VITAS’ after-tax earnings decreased primarily due to an increase in Medicare Cap liability of $15.0 million in the second quarter of 2025 compared to the second quarter of 2024.
Current wording
After-tax earnings as a percent of revenue at VITAS in thethird quarter of 2025 was 11.5% as compared to 13.7% in thethird quarter of 2024. VITAS’ after-tax earnings decreased due to an increase in Medicare Cap liability of $3.8 million in the third quarter of 2025 compared to the third quarter of 2024, as well as an increase of $2.1 million related to legal expense recorded in the third quarter of 2025 compared to the third quarter of 2024.
Previous wording
Roto-Rooter’s net income was negatively impacted in the second quarter of 2025 compared to the second quarter of 2024 due primarily to an increase in casualty insurance expense of $4.9 million and an increase in variable expenses. Roto-Rooter’s after-tax earnings as a percent of revenue in thesecond quarter of 2025 was 14.3%, as compared to 18.3% in thesecond quarter of 2024.
Current wording
Roto-Rooter’s net income was negatively impacted in the third quarter of 2025 compared to the third quarter of 2024 due to an increase in variable expenses. Roto-Rooter’s after-tax earnings as a percent of revenue in the third quarter of 2025 was 14.8%, as compared to 17.7% in thethird quarter of 2024.
Previous wording
After-tax Corporate expenses for thesecond quarter of 2025 decreased 6.6% when compared to thesecond quarter of 2024 due primarily to a $2.2 million decrease in stock-based compensation offset by a $940,000 decrease in interest income and a $572,000 decrease in excess tax benefits on stock compensation.
Current wording
After-tax Corporate expenses for thethird quarter of 2025 decreased 6.8% when compared to thethird quarter in 2024 due primarily to a $2.5 million decrease in stock-based compensation offset by $2.7 million in severance expense recorded for one VITAS executive and approximately $1.3 million decrease in other expenses.
Previous wording
Six months ended June 30, 2025 versus 2024 - Consolidated Results
Current wording
Nine months ended September 30, 2025 versus 2024 - Consolidated Results
Previous wording
Our service revenues and sales for the first six months of 2025 increased 6.8% versus services and sales revenues for the first six months of 2024. Of this increase, a $75.0 million increase was attributable to VITAS, and a $5.6 million increase at Roto-Rooter. The following chart shows the components of revenue by operating segment (in thousands):
Current wording
Our service revenues and sales for the first nine months of 2025 increased 5.5% versus services and sales revenues for the first nine months of 2024. Of this increase, a $91.4 million increase was attributable to VITAS, and a $8.0 million increase at Roto-Rooter. The following chart shows the components of revenue by operating segment (in thousands):
Previous wording
Days of care at VITAS during the six months ended June 30 were as follows:
Current wording
Days of care at VITAS during the nine months ended September 30 were as follows:
Previous wording
The decrease in drain cleaning revenues for the first six months of 2025 versus 2024 is attributable to a 3.2% increase in price and service mix offset by a 6.9% decrease in job count. The decrease in plumbing revenues for the first six months of 2025 versus 2024 is attributable to a 3.0% decrease in price and service mix shift. Excavation and water restoration jobs are generally sold as a result of initial calls from customers regarding drain cleaning issues. As a result, excavation revenues increased 5.6% and water restoration revenues increased 16.2%. Contractors operations decreased 5.4%.
Current wording
The decrease in drain cleaning revenues for the first nine months of 2025 versus 2024 is attributable to a 3.4% increase in price and service mix offset by a 6.2% decrease in job count. The decrease in plumbing revenues for the first nine months of 2025 versus 2024 is attributable to a 1.6% increase in job count and a 2.0% decrease in price and service mix shift. Excavation and water restoration
Previous wording
The consolidated gross margin was 31.7% in the first six months of 2025 as compared with 34.6% in the first six months of 2024. On a segment basis, VITAS’ gross margin was 21.2% in the first six months of 2025 as compared with 23.5% in the first six months of 2024. The decline was primarily due to an increase in Medicare Cap liability of $15.0 million. The Roto-Rooter segment’s gross margin was 50.0% for the first six months of 2025 as compared with 52.4% in the first six months of 2024. The decline was primarily due to a $3.5 million increase in casualty insurance expense and an increase in variable expenses.
Current wording
The consolidated gross margin was 31.6% in the first nine months of 2025 as compared with 34.6% in the first nine months of 2024. On a segment basis, VITAS’ gross margin was 21.2% in the first nine months of 2025 as compared with 23.9% in the first nine months of 2024. The decline was primarily due to an increase in Medicare Cap liability of $18.8 million and an increase in variable patient care expenses and wages. The Roto-Rooter segment’s gross margin was 50.2% for the first nine months of 2025 as compared with 52.5% in the first nine months of 2024. The decline was primarily due to an increase in variable expenses.
Previous wording
SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation trusts for thesecond quarter of 2025 were up 2.6% when compared tosecond quarter of 2024 due mainly to normal salary increases and an increase in variable selling expenses.
Current wording
SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation trusts for thefirst nine months of 2025 were up 4.8% when compared tothe first nine months of 2024. $2.7 million of this increase was the result of a severance accrual related to one VITAS executive as well as a $3.6 million increase in legal expense mainly at VITAS in the first nine months of 2025 compared to the first nine months of 2024. The remaining increase is related to normal salary increases and an increase in variable selling expenses, mainly internet marketing costs at Roto-Rooter.
Previous wording
Six months ended June 30, 2025 versus 2024 - Segment Results
Current wording
Nine months ended September 30, 2025 versus 2024 - Segment Results
Previous wording
Net income/(loss) for the first six months of 2025 versus the first six months of 2024 by segment (in thousands):
Current wording
Net income/(loss) for the first nine months of 2025 versus the first nine months of 2024 by segment (in thousands):
Previous wording
After-tax earnings as a percent of revenue at VITAS in thefirst six months of 2025 was 11.0% as compared to 12.8% in thefirst six months of 2024. VITAS’ after-tax earnings decreased primarily to an increase in Medicare Cap liability of $15.0 million.
Current wording
After-tax earnings as a percent of revenue at VITAS in thefirst nine months of 2025 was 11.1% as compared to 13.1% in thefirst nine months of 2024. VITAS’ after-tax earnings decreased primarily due to an increase in Medicare Cap liability of $18.8 million and an increase in legal expense of $3.4 million.
Previous wording
Roto-Rooter’s net income was negatively impacted in the first six months of 2025 compared to the first six months of 2024 due primarily to an increase in casualty insurance expense of $3.5 million and an increase in variable expenses. Roto-Rooter’s after-tax earnings as a percent of revenue in thefirst six months of 2025 was 15.5%, as compared to 17.8% in thefirst six months of 2024.
Current wording
Roto-Rooter’s net income was negatively impacted in the first nine months of 2025 compared to the first nine months of 2024 due primarily to an increase in casualty insurance expense of $5.8 million and an increase in variable expenses. Roto-Rooter’s after-tax earnings as a percent of revenue in thefirst nine months of 2025 was 15.3%, as compared to 17.8% in thefirst nine months of 2024.
Previous wording
After-tax Corporate expenses for thefirst six months of 2025 decreased 7.3% when compared to thefirst six months in 2024 due primarily to a $8.5 million decrease in stock-based compensation offset by a $3.1 million decrease in interest income and a $3.4 million decrease in excess tax benefits on stock compensation.
Current wording
After-tax Corporate expenses for thefirst nine months of 2025 decreased 7.2% when compared to thefirst nine months in 2024 due primarily to an $11.4 million decrease in stock-based compensation offset by $2.7 million in severance expense recorded for one VITAS executive and a $4.2 million decrease in interest income.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
-27- reasonably possible liability due to the uncertainty of the outcome and stage of litigation. We record legal fees associated with legal and regulatory actions as the costs are incurred.
Current report — wording carried from elsewhere
-29- are generally sold as a result of initial calls from customers regarding drain cleaning issues. As a result, excavation revenues increased 5.9% and water restoration revenues increased 6.6%. Contractors operations decreased 4.7%.
Current report — wording carried from elsewhere
-32- jobs are generally sold as a result of initial calls from customers regarding drain cleaning issues. As a result, excavation revenues increased 5.7% and water restoration revenues increased 13.1%. Contractors operations decreased 5.2%.
Current report — wording carried from elsewhere
Our effective tax rate reconciliation is as follows (in thousands):
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
A $10.8 million decrease in deferred income taxes due to the refund of the OAS deposit.
Previous report — wording carried elsewhere
An $11.0 million decrease in accounts receivable due to timing.
Previous report — wording carried elsewhere
SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation trusts for thefirst six months of 2025 were up 4.0% when compared tothe first six months of 2024 due mainly to normal salary increases and an increase in variable selling expenses.