Viemed Q3 2025 – $VMD
Good Q. Solid guide. Market doesn't care.
Disclosure: I own shares in VMD. I am not a professional. Please do your own due diligence.
I just did a reprofile of VMD a few days ago, so I would recommend you read that if you want to catch up.
Price: $6.26
MC: 253 million USD
EV: 267 million USD
1-year performance: -30%
*All numbers in USD unless stated otherwise
Viemed reported Q3-2025 on November 5, 2025. Results were ahead of my expectations. The stock was down yesterday.
Quarter Recap
Revenue: $71.9M, +24.0% y/y (company record).
Adj. EBITDA: $16.1M, +15.5% y/y.
Patient metrics: Vent 12,372 (+8.8% y/y; +1.8% q/q). PAP therapy 31,891 (+63.7% y/y; +21.4% q/q). Sleep resupply 33,518 (+51.4% y/y; +32.8% q/q).
Capital allocation: Closed Lehan’s acquisition July 1 (accretive); repurchased 1.706M shares for $11.4M at ~$6.68 avg.
Balance sheet / liquidity (Sep 30): Cash $11.1M; working capital $5.8M; LT debt $19.6M; $38M undrawn facilities.
Guidance (FY-2025): Net revenue $271–273M (narrowed); Adj. EBITDA $60–62M (nudged up at the low end). Mgmt notes the narrower range reflects shorter forecast period; excludes future M&A.
Momentum continues across every major line, with particularly strong PAP/resupply growth (part organic, part program scale). Buyback and Lehan’s indicate disciplined, accretive capital deployment. Liquidity remains adequate.
Conference Call Notes
The call was positive. It doesn’t sound like the business is slowing down at all. Sleep is outgrowing the rest of the business. The gross margins on sleep are lower but the G&A required is also lower. They feel they can net out to be similar to vents.
They made note that Lehan’s doesn’t have the same competitive bidding risk that the existing business has.
They are sharing ttm FCF numbers to give investors a better idea of how the business is doing.
Valuation
I have VMD at a tad under 4x EV/run-rate EBITDA. This goes down to 3.7x EV/2026 EBITDA. This is the lowest in the company’s history. They noted that they have paid an additional 5 million in debt subsequent to quarter end.
I have them at 11x a depressed EV/ttm FCF. I have it closer to 10x EV/run-rate FCF. I think this goes down further in 2026 as they have completed the vent exchange program.
Closing Thoughts
The company has come a long way from the vent dominant business that it was prior to covid. It’s worth noting that the new businesses have lower margin but also less capital intensive. Even if we see competitive bidding getting passed, it will take time to impact the financials. And it won’t be as large of an impact to the business as it was in the past.
The call was very positive. I already have a large position and I’m trying to hold myself back from buying more.
Thanks for reading my work.
Dean
long VMD