A Louisiana-based company that brings respiratory care into people's homes, renting non-invasive ventilators to patients with COPD and other breathing conditions and dispatching licensed respiratory therapists for hands-on support, along with sleep apnea testing, oxygen therapy, women's health equipment, and healthcare staffing. It began in 2006 when friends Casey Hoyt and Michael Moore started a CPAP sleep-lab business, then launched their own in-home sleep testing company after that first venture famously "failed." Its name blends the French word "vie" (life) with "med" for medicine, echoing its "Live Your Life" mission.
Ventilator rental growth slowed to 7.7% as equipment sales nearly doubled, pushing gross margin lower.
Viemed's core ventilator rental business grew at its slowest pace in years. rose 23.9% to $78.1 million, but fell to 57.7% as equipment and supply sales nearly doubled to $19.0 million, and declined 12.4% to $2.8 million. The revenue engine is shifting from high-margin rentals to lower-margin product sales.
Key takeaways
Ventilator rental , the highest-margin , rose 7.7% to $36.4 million, a deceleration from 10.0% growth in Q1 FY2026 and 11.1% in Q2 FY2025, and its share of total revenue fell to 46.6% from 53.6% a year ago.
Equipment and supply sales rose 99.4% to $19.0 million, driven by women's health products from the Lehan acquisition and the PAP resupply program, and now represent 24.3% of total .
declined 0.6 points to 57.7%, as the mix continued to shift toward lower-margin equipment sales and services, which together accounted for 32.4% of revenue versus 24.4% a year ago.
Section summaries
Management's Discussion and Analysis
Revenue grew 24% to $78.1M in Q2 2026, driven by equipment sales and rental growth, while net income fell 12% to $2.8M on higher operating costs.
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Total rose 23.9% to $78.1M, fueled by a 99.4% surge in equipment and supply sales to $19.0M, primarily from women's health products and PAP resupply.
Ventilator rental , the largest , increased 7.7% to $36.4M on higher patient volumes, but its revenue share declined to 46.6% from 53.6% due to mix shift.
fell 12.4% to $2.8 million, pressured by a $1.2 million swing to a loss on equipment disposal compared to a gain from a ventilator program in the prior-year quarter.
expenses rose 28.9% to $37.1 million, outpacing growth, driven by the Lehan acquisition, higher headcount, and increased phantom stock compensation.
was $15.9 million for the quarter, up 29.8% , and rose 80.4% to $7.4 million as moderated.
What changed
Ventilator rental growth decelerated to 7.7% from 10.0% in Q1 FY2026 and 11.1% in Q2 FY2025, suggesting the new CMS NCD implemented in June 2025 is gradually constraining the core business.
improved 0.9 points sequentially to 57.7% from 56.8% in Q1 FY2026, but the decline continued, and the 57.7% level remains near the lowest in the company's reported history.
strengthened to $7.4 million from $1.4 million in Q1 FY2026, as on medical equipment moderated, addressing a concern flagged in prior quarters about cash generation relative to elevated equipment purchases.
fell 23.5% sequentially to $6.4 million from $8.3 million in Q1 FY2026, indicating the company is using cash flow to reduce acquisition-related borrowings.
What to watch
Ventilator rental growth in Q3 FY2026, to assess whether the 7.7% rate represents a new baseline under the CMS NCD or whether further deceleration is ahead.
trajectory as equipment and supply sales continue to scale, to see whether the 57.7% level can be sustained or declines further toward the 56.3% low recorded in Q1 FY2025.
expense growth relative to growth, to assess whether the 28.9% increase in Q2 FY2026 begins to or whether the cost base remains ahead of revenue.
generation relative to the $6.4 million in , to assess whether the company can continue reducing borrowings without drawing on the $30 million .
dipped to 57.7% from 58.3% as the higher mix of lower-margin sales and services (32.4% of total vs. 24.4%) pressured profitability.
expenses grew 28.9% to $37.1M, driven by the Lehan acquisition, higher headcount, and increased , pushing the SG&A ratio to 47.5%.
decreased 12.4% to $2.8M, impacted by a $1.2M swing to a loss on equipment disposal versus a prior-year gain from a ventilator program.
was strong at $24.0M for the first half of 2026, and the company had $10.7M in cash with $7.4M drawn on its term loan, believing liquidity is sufficient for the next 12 months.
Quantitative and Qualitative Disclosures About Market Risk
Our exposure to market risk primarily relates to fluctuations in interest rates from borrowings under the 2022 Senior Credit Facilities. The interest rates per annum applicable to the 2022 Senior Credit Facilities are Term SOFR plus an applicable margin, which ranges from 2.625%…
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Our exposure to market risk primarily relates to fluctuations in interest rates from borrowings under the 2022 Senior Credit Facilities. The interest rates per annum applicable to the 2022 Senior Credit Facilities are Term SOFR plus an applicable margin, which ranges from 2.625% to 3.375%, or, at the option of the Company, a Base Rate (as defined in the 2022 Senior Credit Facilities) plus an applicable margin, which ranges from 1.625% to 2.375%. Outstanding borrowings subject to interest rate fluctuations under the 2022 Term Loan Facility were $7.4 million as of June 30, 2026. There were no outstanding borrowings under the 2022 Revolving Credit Facility as of June 30, 2026. Based on our outstanding borrowings, an immediate 100 basis point change in interest rates would not have a material effect on our net income.
From time to time, we may be subject to various ongoing or threatened legal actions and other proceedings, including those that arise in the ordinary course of business, which may include employment matters, breach of contract disputes, as well as governmental and regulatory mat…
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From time to time, we may be subject to various ongoing or threatened legal actions and other proceedings, including those that arise in the ordinary course of business, which may include employment matters, breach of contract disputes, as well as governmental and regulatory matters. Please read Note 9—Commitments and Contingencies to our condensed consolidated financial statements included in Part I, Item 1, of this Quarterly Report on Form 10-Q for more information. Such matters are subject to many uncertainties and to outcomes that are not predictable with assurance and that may not be known for extended periods of time.
In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 4, 2026, which could mat…
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In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 4, 2026, which could materially affect our business, financial condition or future results. There have been no material changes in our risk factors from those disclosed in that Annual Report.