DaVita Inc. 3rd Quarter 2026 Results

DaVita Inc. 3rd Quarter 2026 Results DENVER, Oct. 29, 2026 /PRNewswire/ -- DaVita Inc. (NYSE: DVA) announced financial and operating results for the quarter ended September 30, 2026.

Financial and operating highlights for the quarter ended September 30, 2026:

Three months ended

Nine months ended September 30,

September 30, 2026

June 30, 2026

2026

2025

Net income attributable to DaVita Inc.:

(dollars in millions, except per share data)

Net income

$ 223

$ 265

$ 686

$ 513

Diluted per share

$ 3.40

$ 4.02

$ 10.27

$ 6.62

Adjusted net income (1)

$ 250

$ 265

$ 713

$ 576

Adjusted diluted per share (1)

$ 3.82

$ 4.02

$ 10.67

$ 7.44

_______________________

(1)

For definitions of non-GAAP financial measures, see the note titled "Note on Non-GAAP Financial Measures" and related reconciliations beginning on page 14.

Three months ended

Nine months ended September 30,

September 30, 2026

June 30, 2026

2026

2025

Amount

Margin

Amount

Margin

Amount

Margin

Amount

Margin

Operating income

(dollars in millions)

Operating income

$ 499

14.0 %

$ 579

16.3 %

$ 1,560

14.8 %

$ 1,483

14.8 %

Adjusted operating income (1)

$ 561

15.7 %

$ 579

16.3 %

$ 1,622

15.4 %

$ 1,508

15.0 %

_______________________

(1)

For definitions of non-GAAP financial measures, see the note titled "Note on Non-GAAP Financial Measures" and related reconciliations beginning on page 14.

U.S. dialysis metrics:

Volume: Total U.S. dialysis treatments for the third quarter of 2026 were 7,329,644, or an average of 92,780 treatments per day, representing a per day increase of 0.1% compared to the second quarter of 2026. Normalized non-acquired treatment growth in the third quarter of 2026 compared to the third quarter of 2025 was 0.4%.

Three months ended

Quarter

change

Nine months ended

Year to date

change

September 30,

2026

June 30,

2026

September 30,

2026

September 30,

2025

(dollars in millions, except per treatment data)

Revenue per treatment

$ 415.25

$ 415.87

$ (0.62)

$ 416.22

$ 405.15

$ 11.07

Patient care costs per treatment

$ 280.22

$ 277.40

$ 2.82

$ 279.24

$ 271.23

$ 8.01

General and administrative

$ 316

$ 331

$ (15)

$ 967

$ 917

$ 50

Primary drivers of the changes in the table above were as follows:

Revenue: The quarter change was primarily driven by normal fluctuations, partially offset by an increase in average reimbursement rates and improvements in payor mix. The year to date change was driven by typical annual rate increases and other normal fluctuations, partially offset by unfavorable changes in payor mix.

Patient care costs: The quarter change was primarily due to increased medical supplies expenses. The year to date change was primarily driven by increased compensation expenses, medical supplies expense, insurance costs and health benefits expenses.

General and administrative: The quarter change was primarily due to decreased professional fees. The year to date change was primarily driven by increases in IT-related costs and compensation expenses, partially offset by costs related to the cybersecurity incident experienced by the Company in 2025.

Certain items impacting the quarter:

Goodwill and other asset impairment charges. During the quarter ended September 30, 2026, we recognized non-cash goodwill and other asset impairment charges related to our business in China. The effect was a $62 million impairment charge within operating income, offset by a $1 million tax benefit and $34 million noncontrolling interest credit, resulting in a $27 million net income impact attributable to DaVita Inc.

Share repurchases. During the three months ended September 30, 2026, we repurchased 0.6 million shares for $111 million, at an average price paid of $186.21 per share.

Subsequent to September 30, 2026 through October 27, 2026, the Company has repurchased 0.5 million shares of our common stock for $87 million at an average price paid of $180.57 per share.

Financial and operating metrics:

Three months ended

September 30,

Twelve months ended

September 30,

2026

2025

2026

2025

Cash flow:

(dollars in millions)

Operating cash flow

$ 519

$ 842

$ 1,870

$ 1,893

Free cash flow (1)

$ 276

$ 604

$ 980

$ 996

_______________________

(1)

For definitions of non-GAAP financial measures, see the note titled "Note on Non-GAAP Financial Measures" and related reconciliations beginning on page 14.

Three months ended

September 30, 2026

Nine months ended

September 30, 2026

Effective income tax rate on:

Income

24.9 %

21.8 %

Income attributable to DaVita Inc. (1)

28.7 %

26.5 %

Adjusted income attributable to DaVita Inc. (1)

26.6 %

25.8 %

_______________________

(1)

For definitions of non-GAAP financial measures, see the note titled "Note on Non-GAAP Financial Measures" and related reconciliations beginning on page 14.

Center activity: As of September 30, 2026, we provided dialysis services to a total of approximately 298,100 patients at 3,269 outpatient dialysis centers, of which 2,671 centers were located in the United States and 598 centers were located in 14 countries outside of the United States.

Integrated kidney care (IKC): As of September 30, 2026, we had approximately 80,800 patients in risk-based integrated care arrangements representing approximately $6.4 billion in annualized medical spend. We also had an additional 3,100 patients in other integrated care arrangements; we do not include the medical spend for these patients in this annualized medical spend estimate. For an additional description of these metrics, see footnote 5 in the "Supplemental Financial Data" table below.

Outlook:

The following forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, including those described below, and actual results may vary materially from these forward-looking measures. We do not provide guidance for operating income or diluted net income per share attributable to DaVita Inc. or operating cash flow on a basis consistent with United States generally accepted accounting principles (GAAP) nor a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis because we are unable to predict certain items contained in the GAAP measures without unreasonable efforts. These current non-GAAP financial measures do not include certain items, including goodwill impairment charges and foreign currency fluctuations, which may be significant. The guidance for our effective income tax rate on adjusted income attributable to DaVita Inc. also excludes the amount of third-party owners' income and related taxes attributable to non-tax paying entities.

Current 2026 guidance

Prior 2026 guidance

Low

High

Low

High

(dollars in millions, except per share data)

Adjusted operating income

$2,175

$2,250

$2,150

$2,250

Adjusted diluted net income per share attributable to DaVita Inc.

$14.30

$15.20

$14.10

$15.20

Free cash flow

$1,000

$1,250

$1,000

$1,250

The following table outlines normalized treatment days by quarter for 2025 and 2026. Normalized treatment days are adjusted for the mix of days of the week for each quarter and serve as a means to more readily compare calendar effects on each quarter's treatment volume.

Normalized Treatment Days

2026

2025

76.5

76.9

78.0

79.2

78.8

79.5

Total

312.4

313.2

Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers.

We will be holding a conference call to discuss our results for the third quarter ended September 30, 2026, on October 29, 2026, at 5:00 p.m. Eastern Time. To join the conference call, please dial (877) 918-6630 from the U.S. or (517) 308-9042 from outside the U.S., and provide the operator the password "Earnings." This call is being webcast and can be accessed at the DaVita Investor Relations website investors.davita.com. A replay of the conference call will also be available at investors.davita.com.

Forward looking statements

DaVita Inc. and its representatives may from time to time make written and oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA), including statements in this release, filings with the Securities and Exchange Commission (SEC), reports to stockholders and in meetings with investors and analysts. All statements in this release, during the related presentation or other meetings, other than statements of historical fact, are forward-looking statements and as such are intended to be covered by the safe harbor for "forward-looking statements" provided by the PSLRA. These forward-looking statements could include, among other things, statements about our balance sheet and liquidity, our expenses, revenues, billings and collections, patient census, the impact of the cybersecurity incident experienced by the Company in 2025 (cyber incident), the impact of federal government policy changes or shutdowns on our business, including with respect to federal funding and reimbursement rates of Medicare, Medicare Advantage (MA), Medicaid and other government programs, availability or cost of supplies, including without limitation the impact of evolving trade policies and tariffs and any reduction in clinical and other supplies due to any disruptions experienced by third party vendors, including with respect to our ability to provide home dialysis services, treatment volumes, mix expectation, such as the percentage or number of patients under commercial insurance, including potential impacts to such mix as a result of U.S. administration policies, current macroeconomic, marketplace and labor market conditions, and overall impact on our patients and teammates, as well as other statements regarding our outlook, future operations, financial condition and prospects, capital allocation plans, expenses, cost saving initiatives, other strategic initiatives, use of contract labor, government and commercial payment rates, expectations related to value-based care (VBC), integrated kidney care (IKC), MA plan enrollment and our international operations, expectations regarding increased competition and marketplace changes, including those related to new or potential entrants in the dialysis and pre-dialysis marketplace and the potential impact of innovative technologies, drugs, or other treatments on the dialysis industry, and expectations regarding our share repurchase program. All statements in this release, other than statements of historical fact, are forward-looking statements. Without limiting the foregoing, statements including the words "expect," "intend," "will," "could," "plan," "anticipate," "believe," "forecast," "guidance," "outlook," "goals," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on DaVita's current expectations and are based solely on information available as of the date of this release. DaVita undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of changed circumstances, new information, future events or otherwise, except as may be required by law. Actual future events and results could differ materially from any forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncertainties. These risks and uncertainties include, among other things:

The financial information presented in this release is unaudited and is subject to change as a result of subsequent events or adjustments, if any, arising prior to the filing of the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.

DAVITA INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(dollars and shares in thousands, except per share data)

Three months ended September 30,

Nine months ended September 30,

2026

2025

2026

2025

Dialysis patient service revenues

$ 3,408,266

$ 3,298,090

$ 10,047,440

$ 9,607,954

Other revenues

169,860

122,137

500,318

415,328

Total revenues

3,578,126

3,420,227

10,547,758

10,023,282

Operating expenses:

Patient care costs

2,451,047

2,332,759

7,185,305

6,833,959

General and administrative

408,697

414,373

1,254,069

1,201,268

Depreciation and amortization

165,188

177,490

510,825

528,645

Equity investment income, net

(8,237)

(10,162)

(24,765)

(23,135)

Goodwill and other asset impairment charges

62,176

—

62,176

—

Total operating expenses

3,078,871

2,914,460

8,987,610

8,540,737

Operating income

499,255

505,767

1,560,148

1,482,545

Debt expense

(150,016)

(150,557)

(445,403)

(431,674)

Debt extinguishment and modification costs

—

(5,150)

(2,035)

(5,150)

Other income (loss), net

9,468

(41,257)

22,241

(81,657)

Income before income taxes

358,707

308,803

1,134,951

964,064

Income tax expense

89,318

68,554

247,304

216,379

Net income

269,389

240,249

887,647

747,685

Less: Net income attributable to noncontrolling interests

(46,458)

(89,917)

(201,789)

(235,099)

Net income attributable to DaVita Inc.

$ 222,931

$ 150,332

$ 685,858

$ 512,586

Earnings per share attributable to DaVita Inc.:

Basic net income

$ 3.49

$ 2.09

$ 10.50

$ 6.77

Diluted net income

$ 3.40

$ 2.04

$ 10.27

$ 6.62

Weighted average shares for earnings per share:

Basic shares

63,835

72,075

65,322

75,768

Diluted shares

65,504

73,769

66,811

77,442

DAVITA INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

(dollars in thousands)

Three months ended September 30,

Nine months ended September 30,

2026

2025

2026

2025

Net income

$ 269,389

$ 240,249

$ 887,647

$ 747,685

Other comprehensive income (loss), net of tax:

Unrealized gains (losses) on interest rate cap agreements:

Unrealized gains (losses)

26,777

(4,418)

34,729

(19,358)

Reclassifications of net realized losses into net income

2,877

1,427

8,632

4,468

Unrealized (losses) gains on foreign currency translation

(564)

24,669

49,961

209,526

Other comprehensive income

29,090

21,678

93,322

194,636

Total comprehensive income

298,479

261,927

980,969

942,321

Less: Comprehensive income attributable to noncontrolling interests

(46,458)

(89,917)

(201,789)

(235,099)

Comprehensive income attributable to DaVita Inc.

$ 252,021

$ 172,010

$ 779,180

$ 707,222

DAVITA INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(dollars and shares in thousands, except per share data)

September 30, 2026

December 31, 2025

ASSETS

Cash and cash equivalents

$ 495,629

$ 676,438

Restricted cash and equivalents

83,631

81,309

Short-term investments

70,673

24,303

Accounts receivable

2,509,014

2,414,690

Inventories

161,464

160,627

Contract assets and other receivables

565,459

494,414

Prepaid and other current assets

141,147

156,285

Income tax receivable

47,807

49,937

Total current assets

4,074,824

4,058,003

Property and equipment, net of accumulated depreciation of $6,985,414 and $6,602,134, respectively

2,731,171

2,812,966

Operating lease right-of-use assets

2,434,212

2,397,179

Intangible assets, net of accumulated amortization of $39,378 and $37,751, respectively

221,070

222,125

Equity method and other investments

404,305

157,249

Long-term investments

38,382

40,966

Other long-term assets

364,506

246,520

Goodwill

7,548,042

7,545,095

$ 17,816,512

$ 17,480,103

LIABILITIES AND EQUITY

Accounts payable

$ 662,199

$ 696,148

Other liabilities

848,178

893,024

Accrued compensation and benefits

747,911

793,478

Current portion of operating lease liabilities

438,132

425,484

Current portion of long-term debt

112,491

109,201

Income tax payable

23,143

24,359

Due to related party

54,714

199,940

Total current liabilities

2,886,768

3,141,634

Long-term operating lease liabilities

2,185,179

2,175,658

Long-term debt

10,656,624

10,163,988

Other long-term liabilities

100,431

83,516

Deferred income taxes

861,693

756,869

Total liabilities

16,690,695

16,321,665

Commitments and contingencies

Noncontrolling interests subject to put provisions

1,484,283

1,532,166

Equity:

Preferred stock ($0.001 par value, 5,000 shares authorized; none issued)

—

Common stock ($0.001 par value, 450,000 shares authorized; 69,237 shares issued

and 63,400 shares outstanding at September 30, 2026, and 68,549 shares issued and

outstanding at December 31, 2025)

Additional paid-in capital

53,979

—

Accumulated earnings (deficit)

301,565

(328,428)

Treasury stock (5,837 and zero shares, respectively)

(917,239)

(199,940)

Accumulated other comprehensive loss

(29,461)

(122,783)

Total DaVita Inc. shareholders' equity deficit

(591,087)

(651,082)

Noncontrolling interests not subject to put provisions

232,621

277,354

Total equity deficit

(358,466)

(373,728)

$ 17,816,512

$ 17,480,103

DAVITA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)

Nine months ended September 30,

2026

2025

Cash flows from operating activities:

Net income

$ 887,647

$ 747,685

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

510,825

528,645

Goodwill and other asset impairment charges

62,176

—

Loss on extinguishment of debt

—

4,253

Stock-based compensation expense

83,378

101,559

Deferred income taxes

91,207

68,989

Equity investment loss, net

887

91,532

Other non-cash losses, net

14,668

11,522

Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:

Accounts receivable

(67,585)

(144,688)

Inventories

1,103

913

Other current assets

(50,210)

(153,428)

Other long-term assets

(47,733)

(21)

Accounts payable

(47,803)

97,879

Accrued compensation and benefits

(64,671)

19,279

Other current liabilities

(50,713)

16,462

Income taxes

453

(30,635)

Other long-term liabilities

6,101

(14,172)

Net cash provided by operating activities

1,329,730

1,345,774

Cash flows from investing activities:

Additions of property and equipment

(431,323)

(430,434)

Acquisitions

(41,693)

(118,337)

Proceeds from asset and business sales

16,297

32,337

Purchase of debt investments held-to-maturity

(66,788)

(15,842)

Purchase of other debt and equity investments

(29,832)

(3,352)

Proceeds from debt investments held-to-maturity

17,020

38,051

Proceeds from sale of other debt and equity investments

4,382

6,706

Purchase of equity method investments

(221,839)

(2,466)

Distributions from equity method investments

329

1,514

Net cash used in investing activities

(753,447)

(491,823)

Cash flows from financing activities:

Borrowings

3,511,331

4,672,170

Payments on long-term debt

(3,021,008)

(3,880,721)

Deferred and debt related financing costs

(10,602)

(26,416)

Purchase of treasury stock from related party

(419,318)

(430,286)

Other purchases of treasury stock

(450,862)

(1,033,887)

Distributions to noncontrolling interests

(243,786)

(232,721)

Net proceeds from issuance of common stock under employee stock plans

14,509

17,583

Payment of tax withholdings on net share settlements of equity awards

(68,968)

(33,764)

Contributions from noncontrolling interests

4,636

3,999

Proceeds from sales of additional noncontrolling interests

—

169

Purchases of noncontrolling interests

(70,593)

(16,385)

Net cash used in financing activities

(754,661)

(960,259)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(109)

21,897

Net decrease in cash, cash equivalents and restricted cash

(178,487)

(84,411)

Cash, cash equivalents and restricted cash at beginning of the year

757,747

879,825

Cash, cash equivalents and restricted cash at end of the period

$ 579,260

$ 795,414

DAVITA INC.

SUPPLEMENTAL FINANCIAL DATA

(unaudited)

(dollars in millions and shares in thousands, except per treatment and patient data)

Three months ended

Nine months ended

September 30, 2026

September 30,

2026

June 30,

2026

1. Consolidated business metrics:

Operating margin

14.0 %

16.3 %

14.8 %

Adjusted operating margin excluding certain items (1)

15.7 %

16.3 %

15.4 %

General and administrative expenses as a percent of

consolidated revenues (2)

11.4 %

11.9 %

Effective income tax rate on income

24.9 %

21.1 %

21.8 %

Effective income tax rate on income attributable to DaVita Inc. (1)

28.7 %

25.6 %

26.5 %

Effective income tax rate on adjusted income attributable to DaVita Inc. (1)

26.6 %

25.6 %

25.8 %

2. Summary of financial results:

Revenues:

U.S. dialysis patient services and other

$ 3,050

$ 3,012

$ 9,004

Other—Ancillary services

Integrated kidney care

144

162

422

Other U.S. ancillary

International dialysis patient service and other

398

386

1,156

552

557

1,606

Eliminations

(24)

(14)

(62)

Total consolidated revenues

$ 3,578

$ 3,554

$ 10,548

Operating income (loss):

U.S. dialysis

$ 544

$ 538

$ 1,588

Other—Ancillary services

Integrated kidney care

Other U.S. ancillary

(6)

(8)

(20)

International

(16)

(19)

Corporate administrative support expenses

(26)

(16)

(72)

Total consolidated operating income

$ 499

$ 579

$ 1,560

DAVITA INC.

SUPPLEMENTAL FINANCIAL DATA - continued

(unaudited)

(dollars in millions and shares in thousands, except per treatment and patient data)

Three months ended

Nine months ended

September 30, 2026

September 30,

2026

June 30,

2026

3. Summary of reportable segment financial results and metrics:

U.S. dialysis

Financial results

Revenue:

Dialysis patient service revenues

$ 3,044

$ 3,005

$ 8,984

Other revenues

Total operating revenues

3,050

3,012

9,004

Operating expenses:

Patient care costs

2,054

2,005

6,028

General and administrative

316

331

967

Depreciation and amortization

144

146

446

Equity investment income

(8)

(25)

Total operating expenses

2,506

2,474

7,416

Segment operating income

$ 544

$ 538

$ 1,588

Metrics

Volume:

Treatments

7,329,644

7,226,600

21,585,769

Number of treatment days

79.0

78.0

233.7

Average treatments per day

92,780

92,649

92,365

Per day year-over-year change

1.2 %

0.6 %

0.5 %

Number of normalized treatment days (3)

79.2

78.0

233.7

Average treatments per normalized day

92,546

92,649

92,365

Per normalized day year-over-year change

0.7 %

0.6 %

0.5 %

Normalized year-over-year non-acquired treatment growth (4)

0.4 %

0.3 %

Operating net revenues:

Average patient service revenue per treatment

$ 415.25

$ 415.87

$ 416.22

Expenses:

Patient care costs per treatment

$ 280.22

$ 277.40

$ 279.24

General and administrative expenses per treatment

$ 43.14

$ 45.79

$ 44.79

Depreciation and amortization expense per treatment

$ 19.70

$ 20.26

$ 20.66

Accounts receivable:

Receivables

$ 1,684

$ 1,719

DSO

4. IKC metrics:

Patients per integrated care arrangement type:

Risk-based (5)

80,800

64,900

Other (5)

3,100

5,700

Annualized aggregate risk based spend (5)

$ 6,400

$ 5,800

DAVITA INC.

SUPPLEMENTAL FINANCIAL DATA - continued

(unaudited)

(dollars in millions and shares in thousands, except per treatment and patient data)

Three months ended

Nine months ended

September 30, 2026

September 30,

2026

June 30,

2026

5. Cash flow:

Operating cash flow

$ 519

$ 490

$ 1,330

Operating cash flow, last twelve months

$ 1,870

$ 2,193

Free cash flow (1)

$ 276

$ 256

$ 672

Free cash flow, last twelve months (1)

$ 980

$ 1,308

Capital expenditures:

Maintenance

$ 112

$ 123

$ 309

Development

$ 47

$ 122

Acquisition expenditures

$ 3

$ 5

$ 42

Proceeds from sale of self-developed properties

$ 10

$ —

$ 13

6. Debt and capital structure:

Total debt (6)

$ 10,832

$ 10,848

Net debt, net of cash and cash equivalents (6)

$ 10,337

$ 10,179

Leverage ratio (7)

3.38x

3.37x

Weighted average effective interest rate:

At end of the quarter

5.54 %

5.43 %

On the senior secured credit facilities at end of the quarter

6.02 %

5.76 %

Amount spent on share repurchases

$ 111

$ 348

$ 863

Number of shares repurchased

594

2,238

5,837

Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers.

_______________________

(1)

These are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to their most comparable measure calculated and presented in accordance with GAAP, and for a definition of adjusted amounts, see attached reconciliation schedules. Adjusted operating income margin is adjusted operating income divided by consolidated revenues.

(2)

General and administrative expenses include certain corporate support, long-term incentive compensation and advocacy costs.

(3)

Normalized treatment days reflect treatment days adjusted to normalize for the mix of days of the week in a given quarter.

(4)

Normalized non-acquired treatment growth reflects year-over-year growth in treatment volume, adjusted to exclude acquisitions and other similar transactions, and further adjusted to normalize for the number and mix of treatment days in a given quarter versus the prior year quarter.

(5)

Integrated care metrics: The aggregate amount of medical spend associated with risk-based integrated care arrangements that we disclose includes both medical costs included in our reported expenses for certain risk-based arrangements (such as our SNPs), as well as the aggregate estimated benchmark amount above or below which we will incur profit or loss from value-based care (VBC) arrangements under which third-party medical costs are not included in our reported results. A number of our VBC contracts are subject to complex or novel patient attribution mechanics and benchmark adjustments, some of which are based on information not reported to us until periods after we report our quarterly results. As a result, our estimates of our patients under, and the dollar amount of, our value-based contracts remain subject to estimation uncertainty.

(6)

The debt amounts presented as of September 30, 2026 and June 30, 2026 exclude approximately $63.1 and $66.5, respectively, of debt discount, premium and other deferred financing costs related to our senior secured credit facilities and senior notes in effect or outstanding at that time.

(7)

This is a non-GAAP measure. See "Calculation of Leverage Ratio" in non-GAAP reconciliations.

DAVITA INC.

RECONCILIATIONS FOR NON-GAAP MEASURES

(unaudited)

(dollars in millions)

Calculation of the Leverage Ratio

Under our amended senior secured credit facilities (the Amended Credit Agreement) dated June 8, 2026, the leverage ratio is defined as (a) all funded debt, minus unrestricted cash and cash equivalents (including short-term investments) divided by (b) "Consolidated EBITDA." The leverage ratio determines the interest rate margin payable by the Company for its Term Loan A-2 and revolving line of credit under the Amended Credit Agreement by establishing the margin over the base interest rate (SOFR plus credit spread adjustment) that is applicable. The calculation below is based on the last 12 months of "Consolidated EBITDA" and "Consolidated net debt" at the end of each reported period, each as defined in the credit agreement that was in effect at the end of each such period (the Applicable Credit Agreement). The calculation of "Consolidated EBITDA" below sets forth, among other things, certain pro forma adjustments described in the Applicable Credit Agreement, including, pro forma adjustments for acquisitions or divestitures that occurred during the period and certain projected net cost savings, expense reductions and cost synergies. These pro forma adjustments are determined according to specified criteria set forth in the Applicable Credit Agreement, and as a result, the total adjustments calculated may not be comparable to the Company's estimates for other purposes, including as operating performance measures. The Company's management believes the presentation of "Consolidated EBITDA" is useful to investors to enhance their understanding of the Company's leverage ratio under the Applicable Credit Agreement and should not be evaluated for any other purpose. The leverage ratio calculated by the Company is a non-GAAP measure and should not be considered a substitute for the ratio of total debt to operating income, determined in accordance with GAAP. The Company's calculation of its leverage ratio might not be calculated in the same manner as, and thus might not be comparable to, similarly titled measures of other companies.

Twelve months ended

September 30,

2026

June 30,

2026

Net income from continuing operations attributable to DaVita Inc.

$ 895

$ 822

Income taxes

324

303

Interest expense

543

540

Depreciation and amortization

698

710

Impairment charges

—

Net income attributable to noncontrolling interests

299

342

Stock-settled stock-based compensation

117

127

Debt extinguishment and modification costs

Expected cost savings and expense reductions

Other

149

Consolidated EBITDA

$ 3,042

$ 3,018

September 30,

2026

June 30,

2026

Total debt, excluding debt discount and other deferred financing costs (1)

$ 10,832

$ 10,848

Less: Cash and cash equivalents including short-term investments (2)

(563)

(685)

Consolidated net debt

$ 10,269

$ 10,162

Last twelve months Consolidated EBITDA

$ 3,042

$ 3,018

Leverage ratio

3.38x

3.37x

Maximum leverage ratio permitted under the Credit Agreement

5.00x

Certain columns or rows may not sum or recalculate due to the presentation of rounded numbers.

______________________

(1)

(2)

This excludes amounts not readily convertible to cash related to the Company's non-qualified deferred compensation plans for all periods presented.

DAVITA INC.

RECONCILIATIONS FOR NON-GAAP MEASURES

(unaudited)

Note on Non-GAAP Financial Measures

As used in this press release, the term "adjusted" refers to non-GAAP measures as follows, each as reconciled to its most comparable GAAP measure as presented in the non-GAAP reconciliations in the notes to this press release: (i) for income and expense measures, the term "adjusted" refers to operating performance measures that exclude certain items such as, but not limited to, cybersecurity costs, impairment charges, gains or losses on ownership changes, restructuring charges, accruals for legal matters, and debt extinguishment and modification costs; and (ii) the term "effective income tax rate on adjusted income attributable to DaVita Inc." represents the Company's effective tax rate excluding applicable non-GAAP items and the tax associated with them as well as noncontrolling owners' income, which primarily relates to non-tax paying entities.

These non-GAAP or "adjusted" measures are presented because management believes these measures are useful adjuncts to GAAP results. However, these non-GAAP measures should not be considered alternatives to the corresponding measures determined under GAAP.

Specifically, management uses adjusted operating income, adjusted net income attributable to DaVita Inc. and adjusted diluted net income per share attributable to DaVita Inc. to compare and evaluate our performance period over period and relative to competitors, to analyze the underlying trends in our business, to establish operational budgets and forecasts and for incentive compensation purposes. We believe these non-GAAP measures also are useful to investors and analysts in evaluating our performance over time and relative to competitors, as well as in analyzing the underlying trends in our business. Furthermore, we believe these presentations enhance a user's understanding of our normal consolidated results by excluding certain items which we do not believe are indicative of our ordinary results of operations. As a result, adjusting for these amounts allows for comparison to our normalized prior period results.

The effective income tax rate on adjusted income attributable to DaVita Inc. excludes noncontrolling owners' income and certain non-deductible and other charges which we do not believe are indicative of our ordinary results. Accordingly, we believe these adjusted effective income tax rates are useful to management, investors and analysts in evaluating our performance and establishing expectations for income taxes incurred on our ordinary results attributable to DaVita Inc.

Finally, free cash flow represents net cash provided by operating activities less distributions to noncontrolling interests, development capital expenditures, and maintenance capital expenditures; plus contributions from noncontrolling interests and proceeds from the sale of self-developed properties. Management uses this measure to assess our ability to fund acquisitions and meet our debt service obligations and we believe this measure is equally useful to investors and analysts as an adjunct to cash flows from operating activities and other measures under GAAP.

It is important to bear in mind that these non-GAAP "adjusted" measures are not measures of financial performance or liquidity under GAAP and should not be considered in isolation from, nor as substitutes for, their most comparable GAAP measures.

The following tables provide reconciliations of the non-GAAP financial measures presented in this press release to their most comparable GAAP measures.

DAVITA INC.

RECONCILIATIONS FOR NON-GAAP MEASURES - continued

(unaudited)

(dollars in millions, except per share data)

Adjusted net income and adjusted diluted net income per share attributable to DaVita Inc.:

Three months ended

Nine months ended

September 30,

2026

June 30,

2026

September 30,

2026

September 30,

2025

Dollars

Per share

Dollars

Per share

Dollars

Per share

Dollars

Per share

Consolidated:

Net income attributable to DaVita Inc.

$ 223

$ 3.40

$ 265

$ 4.02

$ 686

$ 10.27

$ 513

$ 6.62

Goodwill and other asset impairments (1)

0.95

—

0.93

—

Goodwill and other asset impairments attributable to noncontrolling interests (1)

(34)

(0.53)

—

(34)

(0.51)

—

Cybersecurity incident-related charges (2)

—

0.33

Other loss, net - Mozarc net loss (3)

—

0.33

Income tax impact related to prior legal matter (4)

—

0.24

Related income tax

(1)

(0.01)

—

(1)

(0.01)

(6)

(0.08)

Adjusted net income attributable to DaVita Inc.

$ 250

$ 3.82

$ 265

$ 4.02

$ 713

$ 10.67

$ 576

$ 7.44

Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers.

Adjusted operating income:

Three months ended September 30, 2026

U.S.

dialysis

Ancillary services

Corporate

administration

U.S. IKC

U.S. Other

International

Total

Consolidated

Operating income (loss)

$ 544

$ 4

$ (6)

$ (16)

$ (19)

$ (26)

$ 499

Goodwill and other asset impairments (1)

—

Adjusted operating income (loss)

$ 544

$ 4

$ (6)

$ 46

$ 44

$ (26)

$ 561

Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers.

Nine months ended September 30, 2026

U.S.

dialysis

Ancillary services

Corporate

administration

U.S. IKC

U.S. Other

International

Total

Consolidated

Operating income (loss)

$ 1,588

$ 24

$ (20)

$ 40

$ 44

$ (72)

$ 1,560

Goodwill and other asset impairments (1)

—

Adjusted operating income (loss)

$ 1,588

$ 24

$ (20)

$ 102

$ 106

$ (72)

$ 1,622

Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers.

Nine months ended September 30, 2025

U.S. dialysis

Ancillary services

Corporate

administration

Consolidated

U.S. IKC

U.S. Other

International

Total

Operating income (loss)

$ 1,529

$ (24)

$ (14)

$ 93

$ 55

$ (101)

$ 1,483

Cybersecurity incident-related charges (2)

—

Adjusted operating income (loss)

$ 1,554

$ (24)

$ (14)

$ 93

$ 55

$ (101)

$ 1,508

Certain columns or rows may not sum or recalculate due to the presentation of rounded numbers.

DAVITA INC.

RECONCILIATIONS FOR NON-GAAP MEASURES - continued

(unaudited)

(dollars in millions, except per share data)

Effective income tax rates:

Three months ended

Nine months ended

September 30, 2026

September 30,

2026

June 30,

2026

Effective income tax rates on income attributable to DaVita Inc.:

Income before income taxes

$ 359

$ 435

$ 1,135

Noncontrolling owners' income primarily attributable to non-tax paying entities

(46)

(78)

(202)

Income before income taxes attributable to DaVita Inc.

$ 313

$ 357

$ 933

Income tax expense

$ 89

$ 92

$ 247

Income tax benefit (expense) attributable to noncontrolling interests

(1)

—

Income tax expense attributable to DaVita Inc.

$ 90

$ 91

$ 247

Effective income tax rate on income attributable to DaVita Inc.

28.7 %

25.6 %

26.5 %

Effective income tax rate on adjusted income attributable to DaVita Inc.:

Income before income taxes

$ 359

$ 435

$ 1,135

Goodwill and other asset impairments (1)

—

Noncontrolling owners' income primarily attributable to non-tax paying entities

(46)

(78)

(202)

Goodwill and other asset impairments attributable to noncontrolling interests (1)

(34)

—

(34)

Adjusted income before income taxes attributable to DaVita Inc.

$ 341

$ 357

$ 961

Income tax expense

$ 89

$ 92

$ 247

Income tax benefit (expense) related to:

Goodwill and other asset impairments

—

Noncontrolling interests

(1)

—

Income tax on adjusted income attributable to DaVita Inc.

$ 90

$ 91

$ 248

Effective income tax rate on adjusted income attributable to DaVita Inc.

26.6 %

25.6 %

25.8 %

Certain columns, rows or percentages may not sum or recalculate due to the presentation of rounded numbers.

DAVITA INC.

RECONCILIATIONS FOR NON-GAAP MEASURES - continued

(unaudited)

(dollars in millions, except per share data)

Free cash flow:

Three months ended

Nine months ended

September 30, 2026

September 30,

2026

June 30,

2026

September 30,

2025

Net cash provided by operating activities

$ 519

$ 490

$ 842

$ 1,330

Adjustments to reconcile net cash provided by operating activities to

free cash flow:

Distributions to noncontrolling interests

(94)

(64)

(82)

(244)

Contributions from noncontrolling interests

—

Maintenance capital expenditures (5)

(112)

(123)

(119)

(309)

Development capital expenditures (6)

(47)

(122)

Proceeds from sale of self-developed properties

—

Free cash flow

$ 276

$ 256

$ 604

$ 672

Certain columns or rows may not sum or recalculate due to the presentation of rounded numbers.

Twelve months ended

September 30,

2026

June 30,

2026

September 30,

2025

Net cash provided by operating activities

$ 1,870

$ 2,193

$ 1,893

Adjustments to reconcile net cash provided by operating activities to free cash flow:

Distributions to noncontrolling interests

(335)

(323)

(341)

Contributions from noncontrolling interests

Maintenance capital expenditures (5)

(417)

(424)

(423)

Development capital expenditures (6)

(160)

(159)

(178)

Proceeds from sale of self-developed properties

Free cash flow

$ 980

$ 1,308

$ 996

Certain columns or rows may not sum or recalculate due to the presentation of rounded numbers.

______________________

(1)

Represents non-cash goodwill and other asset impairment charges related to our business in China, of which a portion was allocated to noncontrolling interests. These charges are excluded from our non-GAAP metrics because they do not occur in or reflect the ordinary course of our ongoing business, are inherently unpredictable and are non-cash amounts, the exclusion of which facilitates comparison of historical, current and forecasted financial results.

(2)

Represents charges recognized to work to remediate a cybersecurity incident and restore systems following the occurrence of the incident in the second quarter of 2025. We have excluded these charges from our non-GAAP metrics as we do not believe they are indicative of our ordinary results of operations.

(3)

Represents non-cash impairment and restructuring charges included in other losses related to our equity investment in Mozarc Medical Holding LLC. This loss does not represent a normal and recurring cost of operating our business or generating returns from investments and may obscure analysis of underlying trends and financial performance.

(4)

Represents the write-down of a tax receivable related to a 2014 tax refund claim. The claim related to estimated tax expense associated with a legal matter previously presented as a non-GAAP adjustment. We have excluded this charge from our non-GAAP metrics because, among other things, we do not believe it is indicative of our ordinary results of operations because the charge is significant and may obscure analysis of underlying trends and financial performance of our current business.

(5)

Maintenance capital expenditures represent capital expenditures to maintain the productive capacity of the business and include those made for investments in information technology, dialysis center renovations, capital asset replacements, and any other capital expenditures that are not development or acquisition expenditures.

(6)

Development capital expenditures principally represent capital expenditures (other than acquisition expenditures) made to expand the productive capacity of the business and include those for new U.S. and international dialysis center developments, dialysis center expansions and relocations, and new or expanded contracted hospital operations.

Contact:

Investor Relations

DaVita Inc.

[email protected]

SOURCE DaVita