DaVita Inc. announced strong financial and operating results for the first quarter ended March 31, 2025, reporting adjusted diluted earnings per share (EPS) of $2.00, which beat analysts' estimates. This performance demonstrates the stability and consistency of its operating model.
Total revenues for Q1 2025 reached $3.22 billion, a 5.0% increase year-over-year, surpassing Wall Street's revenue expectations. Adjusted operating income for the quarter was $439 million, reflecting disciplined execution across its businesses.
Revenue per treatment (RPT) for U.S. dialysis increased to $400.14, primarily driven by the incorporation of phosphate binders into the ESRD Prospective Payment System (PPS) bundle, effective January 1, 2025. Medicare base rate and other annual rate increases also contributed to the RPT growth.
Patient care costs per treatment rose to $271.77, mainly due to increased pharmaceutical costs associated with the administration of phosphate binders, as well as compensation expenses and medical supplies. U.S. dialysis treatments showed a per day increase of 0.01% compared to the fourth quarter of 2024.
DaVita continued its capital allocation strategy by repurchasing 3.7 million shares for $550 million during Q1 2025, at an average price of $148.94 per share. Subsequent to the quarter, an additional 1.7 million shares were repurchased for $259 million through May 12, 2025.
The company reaffirmed its full-year 2025 adjusted operating income guidance of $2.01 billion to $2.16 billion and adjusted diluted EPS guidance of $10.20 to $11.30. Free cash flow guidance was also maintained at $1.00 billion to $1.25 billion, reflecting management's confidence in future performance.
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