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Executive Summary We operate through our two wholly-owned subsidiaries, VITAS Healthcare Corporation and Roto-Rooter Group, Inc. VITAS focuses on hospice care that helps make terminally ill patients’ final days as comfortable as possible. Through its teams of doctors, nurses, home health aides, social workers, clergy and volunteers, VITAS provides direct medical services to patients, as well as spiritual and emotional counseling to both patients and their families. Roto-Rooter’s services are focused on providing plumbing, drain cleaning, excavation, water restoration, and other related services to both residential and commercial customers. Through its network of company-owned branches, independent contractors and franchisees, Roto-Rooter offers plumbing and drain cleaning service to over 90% of the U.S. population. The vast majority of the Company’s operations are located in the United States. As both operations are service companies, our employees are the most critical resource of the Company. We have very little exposure related to customers, vendors, or employees in other regions of the world. We continue to monitor macroeconomic trends and uncertainties such as inflation, the effects of recently implemented tariffs, and the potential imposition of modified or additional tariffs, as well as the impact of the war with Iran on fuel prices, which may have adverse effects on net sales and profitability. Based on preliminary analysis of the potential effects of the announced tariffs and these other factors, we do not expect a material negative effect on our net sales or profitability for the remainder of fiscal year 2026. However, we are continuing to evaluate these factors and their potential effects as well as our ability to potentially offset all or a portion of cost increases through pricing actions and cost savings efforts for fiscal year 2027 planning. 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. The following is a summary of the key operating results (in thousands except per share amounts): Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Service revenues and sales $ 673,251 $ 618,798 $ 1,330,764 $ 1,265,741 Net income $ 67,703 $ 52,493 $ 134,005 $ 124,250 Diluted EPS $ 5.13 $ 3.57 $ 9.97 $ 8.43 Adjusted net income $ 80,039 $ 62,721 $ 157,421 $ 145,796 Adjusted diluted EPS $ 6.06 $ 4.27 $ 11.71 $ 9.90 Adjusted EBITDA $ 121,806 $ 95,331 $ 238,062 $ 217,023 Adjusted EBITDA as a % of revenue 18.1 % 15.4 % 17.9 % 17.1 % Adjusted net income, adjusted diluted EPS, earnings before interest, taxes and depreciation and amortization (“EBITDA”), Adjusted EBITDA and Adjusted EBITDA as a percent of revenue are not measures derived in accordance with US GAAP. We provide non-GAAP measures to help readers evaluate our operating results and to compare our operating performance with that of similar companies that have different capital structures. Our non-GAAP measures should not be considered in isolation or as a substitute for comparable measures presented in accordance with GAAP. A reconciliation of our non-GAAP measures is presented on pages 37-39. For the three months ended June 30, 2026, the increase in consolidated service revenues and sales was driven by an 11.9 % increase at VITAS and a 3.3% 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 2.4%. Acuity mix shift negatively impacted revenue growth by 115-basis points in the quarter when compared to the prior year quarter’s revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes increased revenue growth by 455-basis points. The increase in service revenues at Roto-Rooter was driven by an increase in plumbing, drain cleaning and excavation offset by a decrease in water restoration. For the six months ended June 30, 2026, the increase in consolidated service revenues and sales was driven by a 7.4% increase at VITAS and by a 1.1% increase at Roto-Rooter. The increase in service revenues at VITAS is comprised primarily of 4.2% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.5%. Acuity mix shift negatively impacted revenue growth by 120-basis points in the year when compared to the prior year’s revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes increased revenue growth by 190-basis points. The increase in service revenues at Roto-Rooter was driven by an increase in plumbing, drain cleaning and excavation offset by a decrease in water restoration. -25- Financial Condition Liquidity and Capital Resources Material changes in the balance sheet accounts from December 31, 2025 to June 30, 2026 include the following: A $6.1 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 $63.0 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. A $10.3 million increase in prepaid expenses due to prepaid insurance premiums paid in the second quarter. A $11.4 million increase in lease right of use asset due to lease renewals. This resulted in a similar increase in the lease liability accounts. A $32.4 million increase in goodwill due to four acquisitions at Roto-Rooter. A $20.3 million increase in accounts payable due to timing of payments. A $10.8 million increase in the liability of deferred compensation plans due mainly to market valuation gains. This resulted in a similar increase in the assets associated with deferred compensation plans. A $140.0 million increase in long-term debt due primarily to acquisitions and stock repurchases. A $291.9 million increase in treasury stock due to stock repurchases. Net cash provided by operating activities increased $1.7 million from June 30, 2025 to June 30, 2026. See the Unaudited Consolidated Statements of Cash Flows on page 5 for the detail components making up the change. Management continually evaluates cash utilization alternatives, including share repurchase, debt repurchase, acquisitions and increased dividends to determine the most beneficial use of available capital resources. We anticipate that our operating income and cash flows will be sufficient to operate our business and meet any commitments for the foreseeable future. Commitments and Contingencies On April 10, 2026, we replaced the Prior Credit Agreement with a sixth amended and restated Credit Agreement. Terms of the Credit Agreement consist of a five-year $450.0 million revolving credit facility including $100.0 million for letters of credit. This Credit Agreement has a floating interest rate that is generally the secured overnight financing rate (“SOFR”) plus an additional tiered rate which varies based on our current leverage ratio. As of June 30, 2026, the interest rate is SOFR plus 100 basis points. The Credit Agreement includes an expansion feature that provides the Company the opportunity to increase its revolver by an additional $250.0 million. We have issued $47.3 million in standby letters of credit as of June 30, 2026, mainly for insurance purposes. Issued letters of credit reduce our available credit under the Credit Agreement. As of June 30, 2026, we have approximately $262.7 million of unused lines of credit available and are eligible to be drawn down under the Credit Agreement. Management believes its liquidity and sources of capital are satisfactory for the Company’s needs in the foreseeable future. Collectively, the terms of the Credit Agreement require us to meet various financial covenants, to be tested quarterly. We are in compliance with all financial and other debt covenants as of June 30, 2026. 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. See Note 10 in the Notes to the Unaudited Consolidated Financial Statements in Item 1 above for a description of current material legal matters. ‎ -26- Results of Operations Three months ended June 30, 2026 versus 2025 - Consolidated Results Our service revenues and sales for the second quarter of 2026 increased 8.8% versus services revenue and sales for the second quarter of 2025. Of this increase, a $47.1 million increase was attributable to VITAS, and a $7.3 million increase at Roto-Rooter. The following chart shows the components of revenue by operating segment (in thousands): Three months ended June 30, Increase/(Decrease) 2026 2025 Percent VITAS Routine homecare $ 391,348 $ 358,042 9.3 General inpatient 35,673 33,023 8.0 Continuous care 19,396 23,640 (18.0) Other 6,206 5,747 8.0 Subtotal 452,623 420,452 7.7 Medicare cap adjustment (500) (16,375) 96.9 Room and board - net (3,938) (3,892) (1.2) Implicit price concessions (4,844) (3,984) (21.6) Net revenue $ 443,341 $ 396,201 11.9 Roto-Rooter Drain cleaning $ 57,501 $ 55,557 3.5 Plumbing 47,901 45,284 5.8 Excavation 61,563 56,493 9.0 Other 272 187 45.5 Subtotal - short term core 167,237 157,521 6.2 Water restoration 46,857 49,824 (6.0) Independent contractors 17,118 17,449 (1.9) Outside franchisee fees 1,443 1,405 2.7 Other 4,297 4,783 (10.2) Gross revenue 236,952 230,982 2.6 Implicit price concessions (7,042) (8,385) 16.0 Net revenue 229,910 222,597 3.3 Total Revenues $ 673,251 $ 618,798 8.8 Days of care at VITAS during the quarters were as follows: Three months ended June 30, Increase/(Decrease) 2026 2025 Percent Routine homecare 1,792,360 1,662,455 7.8 Nursing home 303,053 307,158 (1.3) Respite 12,307 11,440 7.6 Subtotal routine homecare and respite 2,107,720 1,981,053 6.4 General inpatient 29,703 28,213 5.3 Continuous care 18,094 21,647 (16.4) Total days of care 2,155,517 2,030,913 6.1 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 2.4%. Acuity mix shift negatively impacted revenue growth by 115-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 increased revenue growth by 455-basis points. The increase in plumbing revenues for the second quarter of 2026 versus 2025 is attributable to a 10.1% increase in price and service mix shift offset by a 4.3% decrease in job count. The increase in drain cleaning revenues for the second quarter of 2026 versus 2025 is attributable to a 6.5% increase in price and service mix offset by a 3.0% decrease in job count. The increase in excavation -27- revenues for the second quarter of 2026 versus 2025 is attributable to a 5.5% increase in price and service mix shift and by a 3.5% increase in job count. Water restoration revenues decreased 6.0%, and contractors operations decreased 1.9%. Implicit price concessions and credit memos decreased 16.0% mainly related to the water restoration business. The consolidated gross margin was 32.9% in the second quarter of 2026 as compared with 29.8% in the second quarter of 2025. On a segment basis, VITAS’ gross margin was 23.8% in the second quarter of 2026 as compared with 19.1% in the second quarter of 2025. The increase was primarily related to increased revenues including a $15.9 million decrease in Medicare Cap billing limitation in the second quarter of 2026 compared to second quarter of 2025. The Roto-Rooter segment’s gross margin was 50.4% for the second quarter of 2026 compared with 49.0% in the second quarter of 2025. Selling, general and administrative expenses (“SG&A”) comprise (in thousands): Three months ended June 30, 2026 2025 SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation trusts $ 109,256 $ 98,552 Impact of market value adjustments related to assets held in deferred compensation trusts 3,699 918 Long-term incentive compensation 2,248 853 Total SG&A expenses $ 115,203 $ 100,323 SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation trusts for the second quarter of 2026 were up 10.9% when compared to the second quarter of 2025. Of this increase $2.9 million was the result of increased advertising at Roto-Rooter in the second quarter of 2026 compared to the second quarter of 2025. The remaining increase was the result of increased legal expenses of $1.3 million mainly at VITAS, normal salary increases and increased incentive compensation. Other income – net comprise (in thousands): Three months ended June 30, 2026 2025 Market value adjustment on assets held in deferred compensation trusts $ 3,699 $ 918 Interest income 214 2,555 Other 1 1 Total other income - net $ 3,914 $ 3,474 We invest excess cash in money market funds with major commercial banks. We closely monitor the creditworthiness of the institutions with which we invest our overnight funds. Chemed invests excess cash in money market funds holding US Treasuries. Deposits and withdrawals are made daily, based on the Company’s excess cash balance. There are no penalties associated with withdrawals. The accounts bear interest at a normal market rate. Our effective tax rate reconciliation is as follows (in thousands): Three months ended June 30, 2026 2025 Income tax provision calculated at the statutory federal rate $ 19,179 $ 14,934 State and local income taxes, less federal income tax effect 2,811 2,261 Nondeductible expenses: Stock compensation tax expense/(benefit) 445 (50) Other--net 1,191 1,477 Income tax provision $ 23,626 $ 18,622 Effective tax rate 25.9 % 26.2 % ‎ -28- Net income for both periods included the following after-tax items/adjustments that (reduced) or increased after-tax earnings (in thousands): Three months ended June 30, 2026 2025 VITAS Legal settlements $ (415) $ - Acquisition expense (6) - Roto-Rooter Amortization of reacquired franchise agreements (1,804) (1,806) Acquisition expense (46) - Corporate Stock option expense (7,604) (7,696) Long-term incentive compensation (2,016) (776) Excess tax (expenses)/benefit on stock compensation (445) 50 Total $ (12,336) $ (10,228) Three months ended June 30, 2026 versus 2025 - Segment Results Net income/(loss) for the second quarter of 2026 versus the second quarter of 2025 by segment (in thousands): Three months ended June 30, 2026 2025 VITAS $ 60,911 $ 38,219 Roto-Rooter 31,913 31,914 Corporate (25,121) (17,640) $ 67,703 $ 52,493 After-tax earnings as a percent of revenue at VITAS in the second quarter of 2026 was 13.7% as compared to 9.6% in the second quarter of 2025. VITAS’ after-tax earnings increased primarily due to increased revenues including a $15.9 million decrease in Medicare Cap liability in the second quarter of 2026 compared to the second quarter of 2025. Roto-Rooter’s net income was essentially flat when compared with the same quarter of 2025 but was negatively impacted by an increase in marketing expenses. Roto-Rooter’s after-tax earnings as a percent of revenue in the second quarter of 2026 was 13.9%, as compared to 14.3% in the second quarter of 2025. After-tax Corporate expenses for the second quarter of 2026 increased 42.4% when compared to the second quarter in 2025 due primarily to a $2.3 million decrease in interest income related to lower cash and investment balances and a $1.3 million increase in interest expense related to an increase in long-term debt as a result of stock repurchases and Roto-Rooter acquisitions, a $1.6 million increase in intercompany interest expense, a $1.1 million increase in stock-based compensation and a $495,000 decrease in excess tax benefit related to reduced stock option exercises. ‎ -29- Results of Operations Six months ended June 30, 2026 versus 2025 - Consolidated Results Our service revenues and sales for the first six months of 2026 increased 5.1% versus services revenue and sales for the first six months of 2025. Of this increase, a $59.8 million increase was attributable to VITAS, and a $5.3 million increase at Roto-Rooter. The following chart shows the components of revenue by operating segment (in thousands): Six months ended June 30, Increase/(Decrease) 2026 2025 Percent VITAS Routine homecare $ 762,438 $ 709,608 7.4 General inpatient 71,599 67,045 6.8 Continuous care 37,530 48,276 (22.3) Other 11,783 11,092 6.2 Subtotal 883,350 836,021 5.7 Medicare cap adjustment (2,875) (18,700) 84.6 Room and board - net (7,196) (7,417) 3.0 Implicit price concessions (9,921) (6,304) (57.4) Net revenue $ 863,358 $ 803,600 7.4 Roto-Rooter Drain cleaning $ 117,235 $ 115,099 1.9 Plumbing 97,485 91,344 6.7 Excavation 125,073 120,731 3.6 Other 501 376 33.2 Subtotal - short term core 340,294 327,550 3.9 Water restoration 94,706 103,987 (8.9) Independent contractors 34,884 35,811 (2.6) Outside franchisee fees 2,964 2,828 4.8 Other 9,386 9,678 (3.0) Gross revenue 482,234 479,854 0.5 Implicit price concessions (14,828) (17,713) 16.3 Net revenue 467,406 462,141 1.1 Total Revenues $ 1,330,764 $ 1,265,741 5.1 Days of care at VITAS during the six months ended June 30 were as follows: Six months ended June 30, Increase/(Decrease) 2026 2025 Percent Routine homecare 3,483,979 3,295,024 5.7 Nursing home 597,871 614,266 (2.7) Respite 23,182 21,435 8.2 Subtotal routine homecare and respite 4,105,032 3,930,725 4.4 General inpatient 60,177 57,917 3.9 Continuous care 35,382 44,267 (20.1) Total days of care 4,200,591 4,032,909 4.2 The increase in service revenues at VITAS is comprised primarily of 4.2% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.5%. Acuity mix shift negatively impacted revenue growth by 120-basis points in the year when compared to the prior year revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes increased revenue growth by 190-basis points. The increase in plumbing revenues for the first six months of 2026 versus 2025 is attributable to a 12.0% increase in price and service mix shift offset by a 5.3% decrease in job count. The increase in drain cleaning revenues for the first six months of 2026 versus 2025 is attributable to a 9.5% increase in price and service mix offset by a 7.6% decrease in job count. The increase in excavation -30- revenues for the first six months of 2026 versus 2025 is attributable to an 8.3% increase in price and service mix shift offset by a 4.7% decrease in job count. Water restoration revenues decreased 8.9%, and contractors operations decreased 2.6%. Implicit price concessions and credit memos decreased 16.3% mainly related to the water restoration business. The consolidated gross margin was 32.9% in the first six months of 2026 as compared with 31.7% in the first six months of 2025. On a segment basis, VITAS’ gross margin was 23.2% in the first six months of 2026 as compared with 21.2% in the first six months of 2025. The increase was primarily related to increased revenues including a $15.8 million decrease in Medicare Cap billing limitation in the first six months of 2026 compared to the first six months of 2025. The Roto-Rooter segment’s gross margin was 50.7% for the first six months of 2026 which was almost equal to the first six months of 2025. Selling, general and administrative expenses (“SG&A”) comprise (in thousands): Six months ended June 30, 2026 2025 SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation trusts $ 218,187 $ 202,312 Impact of market value adjustments related to assets held in deferred compensation trusts 7,584 88 Long-term incentive compensation 3,753 3,510 Total SG&A expenses $ 229,524 $ 205,910 SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation trusts for the first six months of 2026 were up 7.8% when compared to the first six months of 2025. $6.7 million of this increase was the result of increased advertising at Roto-Rooter in the first six months of 2026 compared to the first six months of 2025. The remaining increase was the result of increased legal expense of $2.5 million mainly at VITAS, normal salary increases and increased incentive compensation. Other income – net comprise (in thousands): Six months ended June 30, 2026 2025 Market value adjustment on assets held in deferred compensation trusts $ 7,584 $ 88 Interest income 1,104 4,631 Total other income - net $ 8,688 $ 4,719 We invest excess cash in money market funds with major commercial banks. We closely monitor the creditworthiness of the institutions with which we invest our overnight funds. Chemed invests excess cash in money market funds holding US Treasuries. Deposits and withdrawals are made daily, based on the Company’s excess cash balance. There are no penalties associated with withdrawals. The accounts bear interest at a normal market rate. Our effective tax rate reconciliation is as follows (in thousands): Six months ended June 30, 2026 2025 Income tax provision calculated at the statutory federal rate $ 37,835 $ 35,026 State and local income taxes, less federal income tax effect 5,529 6,448 Nondeductible expenses: Stock compensation tax expense/(benefit) 501 (513) Other--net 2,299 1,578 Income tax provision $ 46,164 $ 42,539 Effective tax rate 25.6 % 25.5 % ‎ -31- Net income for both periods include the following after tax items/adjustments that (reduce) or increased after tax earnings (in thousands): Six months ended June 30, 2026 2025 VITAS Legal settlements $ (415) $ - Acquisition expense (6) - Roto-Rooter Amortization of reacquired franchise agreements (3,608) (3,613) Acquisition expense (173) - Corporate Stock option expense (15,354) (15,317) Long-term incentive compensation (3,359) (3,129) Excess tax (expenses)/benefits on stock compensation (501) 513 Total $ (23,416) $ (21,546) Six months ended June 30, 2026 versus 2025 - Segment Results Net income/(loss) for the first six months of 2026 versus the first six months of 2025 by segment (in thousands): Six months ended June 30, 2026 2025 VITAS $ 113,118 $ 88,249 Roto-Rooter 67,697 71,858 Corporate (46,810) (35,857) $ 134,005 $ 124,250 After-tax earnings as a percent of revenue at VITAS in the first six months of 2026 was 13.1% as compared to 11.0% in the first six months of 2025. The increase was primarily related to increased revenues including a $15.8 million decrease in Medicare Cap liability in the first six months of 2026 compared to the first six months of 2025. Roto-Rooter’s net income was negatively impacted in the first six months of 2026 compared to the first six months of 2025 due mainly to an increase in marketing expenses. Roto-Rooter’s after-tax earnings as a percent of revenue in the first six months of 2026 was 14.5%, as compared to 15.5% in the first six months of 2025. After-tax Corporate expenses for the first six months of 2026 increased 30.5% when compared to the first six months in 2025 due primarily to a $3.5 million decrease in interest income related to lower cash and investment balances and a $1.5 million increase in interest expense related to an increase in long-term debt as a result of stock repurchases and Roto-Rooter acquisitions, a $3.2 million increase in intercompany interest expense, and a $1.0 million decrease in excess tax benefit related to reduced stock option exercises. ‎ -32- CHEMED CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2026 (in thousands)(unaudited) Chemed VITAS Roto-Rooter Corporate Consolidated 2026 (a) Service revenues and sales $ 443,341 $ 229,910 $ - $ 673,251 Cost of services provided and goods sold 337,691 114,089 - 451,780 Selling, general and administrative expenses 26,105 67,373 21,725 115,203 Depreciation 5,781 8,474 12 14,267 Amortization 27 2,692 - 2,719 Other operating expense 28 50 - 78 Total costs and expenses 369,632 192,678 21,737 584,047 Income/(loss) from operations 73,709 37,232 (21,737) 89,204 Interest expense (54) (185) (1,550) (1,789) Intercompany interest income/(expense) 6,480 4,575 (11,055) - Other income—net 66 10 3,838 3,914 Income/(expense) before income taxes 80,201 41,632 (30,504) 91,329 Income taxes (19,290) (9,719) 5,383 (23,626) Net income/(loss) $ 60,911 $ 31,913 $ (25,121) $ 67,703 (a) The following amounts are included in net income (in thousands): Chemed VITAS Roto-Rooter Corporate Consolidated Pretax benefit/(cost): Stock option expense $ - $ - $ (9,052) $ (9,052) Amortization of reacquired franchise agreements - (2,352) - (2,352) Long-term incentive compensation - - (2,248) (2,248) Legal settlements (548) - - (548) Acquisition expense (8) (60) - (68) Total $ (556) $ (2,412) $ (11,300) $ (14,268) Chemed VITAS Roto-Rooter Corporate Consolidated After-tax benefit/(cost): Stock option expense $ - $ - $ (7,604) $ (7,604) Long-term incentive compensation - - (2,016) (2,016) Amortization of reacquired franchise agreements - (1,804) - (1,804) Legal settlements (415) - - (415) Acquisition expense (6) (46) - (52) Excess tax expense on stock compensation - - (445) (445) Total $ (421) $ (1,850) $ (10,065) $ (12,336) ‎ -33- CHEMED CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2025 (in thousands)(unaudited) Chemed VITAS Roto-Rooter Corporate Consolidated 2025 (a) Service revenues and sales $ 396,201 $ 222,597 $ - $ 618,798 Cost of services provided and goods sold 320,644 113,461 - 434,105 Selling, general and administrative expenses 25,085 60,536 14,702 100,323 Depreciation 5,314 8,363 12 13,689 Amortization 26 2,545 - 2,571 Other operating expense/(income) 55 (29) - 26 Total costs and expenses 351,124 184,876 14,714 550,714 Income/(loss) from operations 45,077 37,721 (14,714) 68,084 Interest expense (47) (129) (267) (443) Intercompany interest income/(expense) 5,454 3,970 (9,424) - Other income—net 61 23 3,390 3,474 Income/(expense) before income taxes 50,545 41,585 (21,015) 71,115 Income taxes (12,326) (9,671) 3,375 (18,622) Net income/(loss) $ 38,219 $ 31,914 $ (17,640) $ 52,493 (a) The following amounts are included in net income (in thousands): Chemed VITAS Roto-Rooter Corporate Consolidated Pretax benefit/(cost): Stock option expense $ - $ - $ (9,216) $ (9,216) Amortization of reacquired franchise agreements - (2,352) - (2,352) Long-term incentive compensation - - (853) (853) Total $ - $ (2,352) $ (10,069) $ (12,421) Chemed VITAS Roto-Rooter Corporate Consolidated After-tax benefit/(cost): Stock option expense $ - $ - $ (7,696) $ (7,696) Amortization of reacquired franchise agreements - (1,806) - (1,806) Long-term incentive compensation - - (776) (776) Excess tax benefits on stock compensation - - 50 50 Total $ - $ (1,806) $ (8,422) $ (10,228) ‎ -34- CHEMED CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2026 (in thousands)(unaudited) Chemed VITAS Roto-Rooter Corporate Consolidated 2026 (a) Service revenues and sales $ 863,358 $ 467,406 $ - $ 1,330,764 Cost of services provided and goods sold 663,157 230,372 - 893,529 Selling, general and administrative expenses 52,213 135,302 42,009 229,524 Depreciation 11,693 16,853 24 28,570 Amortization 53 5,236 - 5,289 Other operating expense/(income) 80 (9) (1) 70 Total costs and expenses 727,196 387,754 42,032 1,156,982 Income/(loss) from operations 136,162 79,652 (42,032) 173,782 Interest expense (104) (321) (1,876) (2,301) Intercompany interest income/(expense) 12,717 9,088 (21,805) - Other income—net 161 25 8,502 8,688 Income/(expense) before income taxes 148,936 88,444 (57,211) 180,169 Income taxes (35,818) (20,747) 10,401 (46,164) Net income/(loss) $ 113,118 $ 67,697 $ (46,810) $ 134,005 (a) The following amounts are included in net income (in thousands): Chemed VITAS Roto-Rooter Corporate Consolidated Pretax benefit/(cost): Stock option expense $ - $ - $ (18,302) $ (18,302) Amortization of reacquired franchise agreements - (4,704) - (4,704) Long-term incentive compensation - - (3,753) (3,753) Legal settlements (548) - - (548) Acquisition expense (8) (226) - (234) Total $ (556) $ (4,930) $ (22,055) $ (27,541) Chemed VITAS Roto-Rooter Corporate Consolidated After-tax benefit/(cost): Stock option expense $ - $ - $ (15,354) $ (15,354) Amortization of reacquired franchise agreements - (3,608) - (3,608) Long-term incentive compensation - - (3,359) (3,359) Legal settlements (415) - - (415) Acquisition expense (6) (173) - (179) Excess tax expense on stock compensation - - (501) (501) Total $ (421) $ (3,781) $ (19,214) $ (23,416) ‎ -35- CHEMED CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2025 (in thousands)(unaudited) Chemed VITAS Roto-Rooter Corporate Consolidated 2025 (a) Service revenues and sales $ 803,600 $ 462,141 $ - $ 1,265,741 Cost of services provided and goods sold 633,451 231,184 - 864,635 Selling, general and administrative expenses 51,624 123,184 31,102 205,910 Depreciation 10,509 16,601 24 27,134 Amortization 52 5,091 - 5,143 Other operating expense/(income) 119 (42) - 77 Total costs and expenses 695,755 376,018 31,126 1,102,899 Income/(loss) from operations 107,845 86,123 (31,126) 162,842 Interest expense (95) (261) (416) (772) Intercompany interest income/(expense) 10,750 7,900 (18,650) - Other income - net 110 32 4,577 4,719 Income/(expense) before income taxes 118,610 93,794 (45,615) 166,789 Income taxes (30,361) (21,936) 9,758 (42,539) Net income/(loss) $ 88,249 $ 71,858 $ (35,857) $ 124,250 (a) The following amounts are included in net income (in thousands): Chemed VITAS Roto-Rooter Corporate Consolidated Pretax benefit/(cost): Stock option expense $ - $ - $ (18,307) $ (18,307) Amortization of reacquired franchise agreements - (4,704) - (4,704) Long-term incentive compensation - - (3,510) (3,510) Total $ - $ (4,704) $ (21,817) $ (26,521) Chemed VITAS Roto-Rooter Corporate Consolidated After-tax benefit/(cost): Stock option expense $ - $ - $ (15,317) $ (15,317) Amortization of reacquired franchise agreements - (3,613) - (3,613) Long-term incentive compensation - - (3,129) (3,129) Excess tax benefits on stock compensation - - 513 513 Total $ - $ (3,613) $ (17,933) $ (21,546) ‎ -36- Unaudited Consolidating Summary and Reconciliation of Adjusted EBITDA Chemed Corporation and Subsidiary Companies (in thousands) Chemed For the three months ended June 30, 2026 VITAS Roto-Rooter Corporate Consolidated Net income/(loss) $ 60,911 $ 31,913 $ (25,121) $ 67,703 Add/(deduct): Interest expense 54 185 1,550 1,789 Income taxes 19,290 9,719 (5,383) 23,626 Depreciation 5,781 8,474 12 14,267 Amortization 27 2,692 - 2,719 EBITDA 86,063 52,983 (28,942) 110,104 Add/(deduct): Intercompany interest expense/(income) (6,480) (4,575) 11,055 - Interest income (66) (10) (138) (214) Stock option expense - - 9,052 9,052 Long-term incentive compensation - - 2,248 2,248 Legal settlements 548 - - 548 Acquisition expense 8 60 - 68 Adjusted EBITDA $ 80,073 $ 48,458 $ (6,725) $ 121,806 Chemed For the three months ended June 30, 2025 VITAS Roto-Rooter Corporate Consolidated Net income/(loss) $ 38,219 $ 31,914 $ (17,640) $ 52,493 Add/(deduct): Interest expense 47 129 267 443 Income taxes 12,326 9,671 (3,375) 18,622 Depreciation 5,314 8,363 12 13,689 Amortization 26 2,545 - 2,571 EBITDA 55,932 52,622 (20,736) 87,818 Add/(deduct): Intercompany interest expense/(income) (5,454) (3,970) 9,424 - Interest income (61) (23) (2,472) (2,556) Stock option expense - - 9,216 9,216 Long-term incentive compensation - - 853 853 Adjusted EBITDA $ 50,417 $ 48,629 $ (3,715) $ 95,331 ‎ -37- Unaudited Consolidating Summary and Reconciliation of Adjusted EBITDA Chemed Corporation and Subsidiary Companies (in thousands) Chemed For the six months ended June 30, 2026 VITAS Roto-Rooter Corporate Consolidated Net income/(loss) $ 113,118 $ 67,697 $ (46,810) $ 134,005 Add/(deduct): Interest expense 104 321 1,876 2,301 Income taxes 35,818 20,747 (10,401) 46,164 Depreciation 11,693 16,853 24 28,570 Amortization 53 5,236 - 5,289 EBITDA 160,786 110,854 (55,311) 216,329 Add/(deduct): Intercompany interest expense/(income) (12,717) (9,088) 21,805 - Interest income (162) (25) (917) (1,104) Stock option expense - - 18,302 18,302 Long-term incentive compensation - - 3,753 3,753 Legal settlements 548 - - 548 Acquisition expense 8 226 - 234 Adjusted EBITDA $ 148,463 $ 101,967 $ (12,368) $ 238,062 Chemed For the six months ended June 30, 2025 VITAS Roto-Rooter Corporate Consolidated Net income/(loss) $ 88,249 $ 71,858 $ (35,857) $ 124,250 Add/(deduct): Interest expense 95 261 416 772 Income taxes 30,361 21,936 (9,758) 42,539 Depreciation 10,509 16,601 24 27,134 Amortization 52 5,091 - 5,143 EBITDA 129,266 115,747 (45,175) 199,838 Add/(deduct): Intercompany interest expense/(income) (10,750) (7,900) 18,650 - Interest income (110) (33) (4,489) (4,632) Stock option expense - - 18,307 18,307 Long-term incentive compensation - - 3,510 3,510 Adjusted EBITDA $ 118,406 $ 107,814 $ (9,197) $ 217,023 ‎ -38- RECONCILIATION OF ADJUSTED NET INCOME (in thousands, except per share data)(unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income as reported $ 67,703 $ 52,493 $ 134,005 $ 124,250 Add/(deduct) pre-tax cost of: Stock option expense 9,052 9,216 18,302 18,307 Amortization of reacquired franchise agreements 2,352 2,352 4,704 4,704 Long-term incentive compensation 2,248 853 3,753 3,510 Legal settlements 548 - 548 - Acquisition expense 68 - 234 - Add/(deduct) tax impacts: Tax impact of the above pre-tax adjustments (1) (2,377) (2,143) (4,626) (4,462) Excess tax expense/(benefit) on stock compensation 445 (50) 501 (513) Adjusted net income $ 80,039 $ 62,721 $ 157,421 $ 145,796 Diluted Earnings Per Share As Reported Net income $ 5.13 $ 3.57 $ 9.97 $ 8.43 Average number of shares outstanding 13,199 14,703 13,442 14,733 Adjusted Diluted Earnings Per Share Adjusted net income $ 6.06 $ 4.27 $ 11.71 $ 9.90 Adjusted average number of shares outstanding 13,199 14,703 13,442 14,733 (1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated. ‎ -39- CHEMED CORPORATION AND SUBSIDIARY COMPANIES OPERATING STATISTICS FOR VITAS SEGMENT (unaudited) Three Months Ended June 30, Six Months Ended June 30, OPERATING STATISTICS 2026 2025 2026 2025 Net revenue ($000) Homecare $ 391,348 $ 358,042 $ 762,438 $ 709,608 Inpatient 35,673 33,023 71,599 67,045 Continuous care 19,396 23,640 37,530 48,276 Other 6,206 5,747 11,783 11,092 Subtotal $ 452,623 $ 420,452 $ 883,350 $ 836,021 Room and board, net (3,938) (3,892) (7,196) (7,417) Contractual allowances (4,844) (3,984) (9,921) (6,304) Medicare cap allowance (500) (16,375) (2,875) (18,700) Total $ 443,341 $ 396,201 $ 863,358 $ 803,600 Net revenue as a percent of total before Medicare cap allowances Homecare 86.5 % 85.2 % 86.4 % 84.9 % Inpatient 7.9 7.9 8.1 8.0 Continuous care 4.3 5.6 4.2 5.8 Other 1.3 1.3 1.3 1.3 Subtotal 100.0 100.0 100.0 100.0 Room and board, net (0.9) (0.9) (0.9) (0.9) Contractual allowances (1.1) (0.9) (1.1) (0.8) Medicare cap allowance (0.1) (3.9) (0.3) (2.2) Total 97.9 % 94.3 % 97.7 % 96.1 % Days of care Homecare 1,792,360 1,662,455 3,483,979 3,295,024 Nursing home 303,053 307,158 597,871 614,266 Respite 12,307 11,440 23,182 21,435 Subtotal routine homecare and respite 2,107,720 1,981,053 4,105,032 3,930,725 Inpatient 29,703 28,213 60,177 57,917 Continuous care 18,094 21,647 35,382 44,267 Total 2,155,517 2,030,913 4,200,591 4,032,909 Number of days in relevant time period 91 91 181 181 Average daily census (days) Homecare 19,697 18,269 19,249 18,205 Nursing home 3,330 3,375 3,303 3,394 Respite 135 126 128 118 Subtotal routine homecare and respite 23,162 21,770 22,680 21,717 Inpatient 326 310 333 320 Continuous care 199 238 195 244 Total 23,687 22,318 23,208 22,281 Total Admissions 19,125 17,545 38,519 35,684 Total Discharges 18,167 17,845 36,704 35,583 Average length of stay (days) 101.2 137.1 101.9 127.9 Median length of stay (days) 16.0 20.0 15.0 18.0 ADC by major diagnosis Cerebro 44.2 % 44.4 % 44.4 % 44.6 % Neurological 11.1 12.1 11.2 12.2 Cancer 9.5 9.7 9.5 9.6 Cardio 16.6 16.2 16.5 16.1 Respiratory 8.0 7.5 7.8 7.3 Other 10.6 10.1 10.6 10.2 Total 100.0 % 100.0 % 100.0 % 100.0 % Admissions by major diagnosis Cerebro 27.3 % 26.7 % 27.1 % 27.6 % Neurological 7.1 7.2 7.0 6.8 Cancer 24.7 26.6 24.1 25.6 Cardio 15.2 14.9 15.5 15.0 Respiratory 11.8 10.7 12.1 11.1 Other 13.9 13.9 14.2 13.9 Total 100.0 % 100.0 % 100.0 % 100.0 % Estimated uncollectible accounts as a percent of revenues 0.7 % 1.0 % 1.1 % 0.8 % Accounts receivable -- Days of revenue outstanding- excluding unapplied Medicare payments 39.7 37.5 n.a. n.a. Days of revenue outstanding- including unapplied Medicare payments 26.9 26.9 n.a. n.a. ‎ -40- Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Regarding Forward-Looking Information Certain statements contained in this report are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe”, “expect”, “hope”, “anticipate”, “plan” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. These forward-looking statements are based on current expectations and assumptions and involve various known and unknown risks, uncertainties, contingencies and other factors, which could cause Chemed’s actual results to differ from those expressed in such forward-looking statements. Variances in any or all of the risks, uncertainties, contingencies, and other factors from our assumptions could cause actual results to differ materially from these forward-looking statements and trends. In addition, our ability to deal with the unknown outcomes of these events, many of which are beyond our control, may affect the reliability of projections and other financial matters. Investors are cautioned that such forward-looking statements are subject to inherent risk and there are no assurances that the matters contained in such statements will be achieved. Chemed does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.