DaVita (DVA) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, February 3, 2026 astatine 7:23 AM CST 30 min read

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Monday, February 2, 2026 astatine 5 p.m. ET

• Chief Executive Officer — Javier Rodriguez

• Chief Financial Officer — Joel Ackerman

• Operator

Javier Rodriguez: Thank you, Nic. Good afternoon, everyone, and convey you for joining the telephone today. As we measure 2025, the twelvemonth represents the latest grounds of our differentiated capabilities, strategy and platform. We executed with discipline, met challenges caput connected and delivered connected our commitments we acceptable astatine the opening of the year. At the aforesaid time, we proceed to put to heighten diligent attraction and substance maturation successful the years ahead. As a result, we're good positioned for 2026 and beyond with opportunities to present objective and fiscal results accordant with our long-standing way grounds and guidance. Today, I'll reappraisal our 4th fourth results, stock insights connected our objective strategy and wrapper up with guidance for 2026.

But first, arsenic always, I volition commencement with a objective highlight. This quarter, I privation to spotlight the objective results achieved successful our Integrated Kidney Care oregon IKC programs. Patients managed nether our IKC models consistently execute amended outcomes than the broader dialysis population. Our IKC patients are 35% much apt to commencement dialysis with a imperishable vascular access, resulting successful a amended diligent acquisition and costs that are 3x little during the archetypal 180 days of dialysis. IKC patients besides experienced less bloodstream infections, execute higher vaccination rates and are much apt to take location dialysis. We besides spot much than 10% betterment successful attraction adherence with less missed treatments.

Most importantly, these outcomes pb to what matters most, a amended prime of beingness with less hospitalizations. Transitioning to our 4th fourth performance. We delivered results successful enactment with our expectations. As anticipated, gross per attraction accelerated successful the 4th alongside spot successful IKC. This was partially offset by higher-than-expected wellness payment costs. For the afloat year, we achieved adjusted operating income and adjusted net per stock successful the apical fractional of our guidance scope contempt the interaction of cyber incidental connected our U.S. dialysis business. Let maine elaborate concisely connected our IKC performance. As we've noted previously, we analyse IKC results connected a afloat twelvemonth basis, fixed quarterly volatility driven by timing of gross recognition.

As we look backmost to our Capital Markets Day successful 2021, we outlined a 5-year way to IKC profitability by 2026. Our strategy is centered connected sustainable contract, doc concern and a scalable attraction exemplary supported by technology. With afloat twelvemonth 2025 results, we're reporting our archetypal profitable twelvemonth successful IKC, which is somewhat up of schedule. This milestone reinforces 2 cardinal learnings. First, our hands-on objective models enactment arsenic reflected successful the outcomes I highlighted earlier, our dedicated IKC caregivers are delivering connected the committedness of value-based attraction by keeping patients healthier and retired of the hospital.