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 a strategic shift that positions it for durable growth. For the full year, Viemed grew net revenue 21% year-over-year to $270.3 million, generated $14.9 million of net income, and delivered record adjusted EBITDA of $61.4 million. The company also ended the year with free cash flow up 141% year-over-year.
Growth was driven by continued platform momentum and contributions from the Lehan's acquisition, along with tailwinds from the broader shift to in-home care and accelerating adoption of sleep and resupply services. However, the company faced a key headwind from the updated National Coverage Determination (NCD) for ventilators, which added documentation requirements and tightened coverage criteria. This temporarily moderated ventilator patient growth, but Stonegate notes that reimbursement levels were unchanged and ventilator activity has already started to normalize.
According to Stonegate's analysis, the strategic implications of Viemed's performance are significant. Sleep and resupply services are overtaking ventilation as the primary growth driver, improving the quality of recurring revenue and reducing regulatory sensitivity. The Lehan's acquisition broadens the company's commercial exposure, diversifies its payor mix, and creates a longer runway for scaled growth. Despite margin mix pressure from this shift, the FY26 guidance and current valuation suggest that durable growth remains underappreciated by the market.
The full announcement, including downloadable images and bios, is available here. Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), offers a full spectrum of investment banking, equity research, and capital raising services.
