Davita — Financial Results

Revenue Grew 6.5% But Core U.S. Dialysis Profits Edged Down

Total revenue grew solidly, but the headline U.S. dialysis operating income figure dipped slightly. On an adjusted basis (which strips out one-time items like cybersecurity charges and a 2024 ownership gain), the core U.S. dialysis business actually grew operating income by 1.1%. The gap between reported and adjusted numbers is worth keeping in mind when evaluating the underlying trend.

Fewer Treatments, But Higher Revenue Per Treatment Kept Dialysis Revenue Growing

DaVita treated 1.1% fewer patients in 2025, largely due to higher mortality and a more severe flu season. However, average revenue collected per treatment rose $18.24, driven by annual rate increases and the addition of phosphate binders (drugs that many kidney patients take, which were added to Medicare's bundled payment in 2025) to reimbursable services. The net result was still positive revenue growth for the segment.

A 2025 Cybersecurity Incident Added Costs and Disrupted Operations

A cybersecurity attack hit DaVita in the second quarter of 2025, temporarily disrupting operations. The company recorded roughly $25 million in direct charges to address the incident, and management flagged that collections were also disrupted — though the financial impact of that business interruption is not separately quantified here. Looking into 2026, DaVita expects some recovery in collections that were delayed by the incident.

International Business Is Growing Fast, Becoming a Bigger Piece of the Pie

The international segment is expanding rapidly, driven by acquisitions and organic patient growth. International revenue now represents about 10% of total company revenue, and adjusted operating income from the segment more than doubled. This is an area of deliberate growth investment, and capital spending there is expected to increase further in 2026.

Integrated Kidney Care Turned Profitable for the First Time

DaVita's Integrated Kidney Care (IKC) business — where the company takes on financial risk for managing patients' overall health outcomes, not just dialysis treatments — swung from a $18 million loss to a $22 million profit. The improvement was driven by higher shared savings (bonuses earned when patient care costs come in below targets) and growth in special needs health plans. This is a meaningful milestone for what has been an early-stage, loss-making initiative.

Aggressive Share Buybacks Reduced the Share Count by Nearly 15%

DaVita repurchased 12.7 million shares in 2025 for $1.79 billion, including a block purchase from major shareholder Berkshire Hathaway. The outstanding share count fell 14.9% year-over-year. The company has continued buying into early 2026, picking up another 1.77 million shares at an average of $122 per share — notably below the 2025 average of $140, suggesting the stock has pulled back since those purchases were made.

Debt Costs Rose Meaningfully, Though Refinancing Locked In Longer Maturities

DaVita took on significant new borrowing in 2025 — including $1B in senior notes at 6.75% — to fund buybacks and refinance existing debt. Total debt expense rose $110 million as a result, even though the average interest rate ticked slightly lower. The company says it expects debt costs to decline in 2026 as the refinancing benefits flow through. Leverage (debt relative to earnings) stayed within its stated target range of 3.0x–3.5x throughout 2025.