Chemed Corporation (CHE) SEC Filings & Earnings Calls

Medicare cap exposure

“Medicare cap adjustment ($500) vs ($16,375) in prior year — significantly reduced but still present”

Share repurchase cash burn

“Cash and cash equivalents $40,222 vs $74,515 at Dec 31, 2025; treasury stock purchases $287,521 in H1 2026”

Medicare Cap exposure: four provider numbers with billing limitation totaling $7.0 million; seven with cushion 0-10%.

“four provider numbers have a Medicare Cap billing limitation totaling $7.0 million” · word for word

Roto-Rooter margin decline due to SG&A increase; adjusted EBITDA margin down 77bps.

“Adjusted EBITDA margin of 21.1% which represents a 77-basis point decline”

Acuity mix shift pressure on VITAS revenue

“Acuity mix shift negatively impacted revenue growth by 120-basis points in the quarter when compared to the prior year revenue and level-of-care mix.” · word for word

Medicare cap and contra revenue risk

“The combination of Medicare Cap and other contra revenue changes decreased revenue growth by 47-basis points.” · word for word

Roto-Rooter revenue decline

“The decline in service revenues at Roto-Rooter was driven by a 1.9% decrease in commercial revenue and a 1.5% decrease in residential revenue.” · word for word

Tariff and geopolitical risk

“Economic pressures including the challenges of high inflation and the effects of increased tariffs and the impact of the war with Iran may negatively affect our net sales and profitability in the future.” · word for word

Roto-Rooter revenue and margins declining, with adjusted EBITDA down 9.6% and margin down 218 bps.

“Roto-Rooter segment: Revenue decreased 0.9%; Adjusted EBITDA declined 9.6%; Adjusted EBITDA margin declined 218 bps”

Medicare Cap billing limitation risk for VITAS; four provider numbers have a cap limitation totaling $9.5 million.

“four provider numbers have a Medicare Cap billing limitation totaling $9.5 million” · word for word

Below-target financial performance

“2025 Actual/Target Adjusted EPS: Actual $22.61, Target $24.92, Percent of Target 90.7%”

Poor relative TSR performance

“January 1, 2023 - December 31, 2025: TSR Peer Group Percentile 7th, Payout 0%”

Key executive departure

“Mr. Westfall departed the company as of December 1, 2025.” · word for word

Concentrated institutional ownership

“The Vanguard Group: 1,699,648 shares, 11.28%; BlackRock, Inc.: 1,409,958 shares, 9.4%.”

Medicare/Medicaid reimbursement risk

“Increases in operating costs, such as labor and supply costs that are subject to inflation, without a compensating increase in Medicare and Medicaid rates, could have a material adverse effect on VITAS’ business in the future.” · word for word

Labor shortage risk

“A nationwide shortage of qualified nurses and aides could adversely affect VITAS’ profitability, growth and ability to continue to provide quality, responsive hospice services to its patients as nursing and health aides’ wages and benefits increase.” · word for word

Regulatory compliance risk

“Additionally, regulators are increasing scrutiny of claims, including through the TPE program, which may require additional resources to respond to audits, and which may cause additional delays or denials in receiving payments.” · word for word

Medicare Cap billing limitation risk: $9.5M projected for FY2026, down from $27.2M in FY2025

“Medicare Cap billing limitations are estimated to be $9.5 million in calendar 2026 compared to $27.2 million in calendar 2025” · word for word

Medicare Cap Liability

“Medicare cap adjustment increased to ($6.1M) in Q3 2025 from ($2.2M) in Q3 2024, a 172% increase.”

Cyber Incident

“VITAS experienced a cybersecurity incident involving potential PHI exposure; investigation ongoing.”

Margin Compression

“Consolidated gross margin declined 310bps YoY; VITAS gross margin down 330bps; Roto-Rooter down 220bps.”