Stonegate Capital Partners has updated its coverage on Viemed Healthcare, Inc. (NASDAQ: VMD), highlighting the company's strong financial performance in fiscal year 2025 and strategic shifts that position it for durable growth. Viemed reported net revenue of $270.3 million, a 21% year-over-year increase, and generated $14.9 million in net income. Record adjusted EBITDA of $61.4 million was achieved, benefiting from continued platform momentum and contributions from the Lehan's acquisition.
Growth was further supported by the broader shift to in-home care and accelerating adoption of sleep and resupply services. However, the company faced a headwind from an updated National Coverage Determination (NCD) that introduced additional documentation requirements and tightened coverage criteria, temporarily moderating ventilator patient growth. Stonegate noted that reimbursement levels remained unchanged and that ventilator activity has begun to normalize. Viemed ended the year with free cash flow up 141% year-over-year.
Key takeaways from the update include that sleep and resupply services are overtaking ventilation as growth drivers, improving recurring revenue quality and reducing regulatory sensitivity. The Lehan's acquisition broadens commercial exposure, diversifies payors, and creates a longer runway for scaled growth. Despite margin mix pressure, FY26 guidance and valuation suggest that durable growth remains underappreciated by the market.
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