Stonegate Capital Partners has updated its coverage on Viemed Healthcare, Inc. (NASDAQ: VMD), following the company's fiscal year 2025 results. In FY25, Viemed grew net revenue 21% year-over-year to $270.3 million, generated $14.9 million of net income, and delivered record adjusted EBITDA of $61.4 million. The growth benefited from continued platform momentum and contributions from Lehan's, with additional tailwinds from the broader shift to in-home care and accelerating sleep/resupply adoption.
The key headwind was short-term friction from the updated National Coverage Determination (NCD), which added documentation requirements and tightened coverage criteria, temporarily moderating ventilator patient growth. However, the company noted that this did not change reimbursement levels, and vent activity has already started to normalize. Viemed ended the year with free cash flow up 141% year-over-year.
Key takeaways from the update indicate that sleep and resupply are overtaking ventilation, improving recurring revenue quality and reducing regulatory sensitivity. Lehan's broadens commercial exposure, diversifies payors, and creates a longer runway for scaled growth. Despite margin mix pressure, FY26 guidance and valuation suggest durable growth remains underappreciated.
For more details, view the full announcement including downloadable images and bios here.
