DaVita Posts Solid Q1 2025 Results; Reaffirms 2025 Guidance Despite Headwinds

DaVita Inc. reported steady first-quarter 2025 financials, with revenue rising to $3.22 billion and adjusted diluted EPS coming in at $2.00, compared to $2.26 in Q1 2024. Net income attributable to DaVita was $163 million, a decrease from $240 million a year ago, impacted in part by higher patient care and pharmaceutical costs.

Operating income for the quarter was $439 million, representing a margin of 13.6%, down from 15.8% in Q1 2024. The company highlighted increased costs due to the bundling of phosphate binders under the ESRD PPS, contributing to a rise in patient care cost per treatment from $255.13 to $271.77 year-over-year.

DaVita generated $180 million in operating cash flow in the quarter but reported negative free cash flow of $45 million, primarily due to high capital expenditures and distributions to noncontrolling interests. The company repurchased 3.7 million shares during the quarter for $550 million at an average price of $148.94 and bought back an additional 1.7 million shares post-quarter for $259 million.

U.S. dialysis treatments remained relatively flat, and normalized non-acquired treatment volume declined 0.6% YoY. Revenue per treatment rose 4.1% YoY to $400.14, helped by Medicare rate adjustments and favorable case mix.

DaVita reaffirmed full-year 2025 guidance:

Adjusted operating income of $2.01–$2.16 billion

Adjusted diluted EPS of $10.20–$11.30

Free cash flow of $1.0–$1.25 billion

DaVita continues to expand its integrated kidney care (IKC) model, managing $5.2 billion in annualized risk-based medical spend across approximately 62,100 patients.

Despite pressures from higher drug and staffing costs, DaVita maintains a stable leverage ratio of 3.27x, well within its covenant limits, and remains focused on returning capital to shareholders while pursuing value-based care growth opportunities.