Stonegate Capital Partners Updates Coverage on Viemed Healthcare, Highlighting Growth Amid Industry Shifts

Stonegate Capital Partners has updated its coverage of Viemed Healthcare, Inc. (NASDAQ: VMD), detailing the company's financial performance for the fiscal year 2025. Viemed reported net revenue growth of 21% year-over-year to $270.3 million, generating $14.9 million in net income and delivering a record adjusted EBITDA of $61.4 million. This growth was supported by continued platform momentum and contributions from the Lehan's acquisition, with additional tailwinds from the broader healthcare industry shift toward in-home care and accelerating adoption of sleep and resupply services.

A key development noted in the coverage is that sleep and resupply services are now overtaking ventilation in Viemed's business mix. This shift is improving the quality of the company's recurring revenue streams and reducing its sensitivity to regulatory changes. The acquisition of Lehan's has broadened Viemed's commercial exposure, diversified its payor base, and created a longer runway for scaled growth, which are critical factors for sustainable expansion in the healthcare sector.

The coverage also addressed a significant headwind faced during the period: short-term friction from an updated National Coverage Determination (NCD). This update added documentation requirements and tightened coverage criteria, which temporarily moderated ventilator patient growth. However, Stonegate emphasized that this regulatory change did not alter reimbursement levels, and ventilator activity has already begun to normalize. This resilience highlights Viemed's ability to adapt to regulatory environments while maintaining core operations.

Financially, Viemed ended the year with free cash flow up 141% year-over-year, underscoring strong operational efficiency. Despite some margin mix pressure, the firm's FY26 guidance and current valuation suggest that durable growth prospects may remain underappreciated by the market. The full announcement, including downloadable images and additional details, is available here. Stonegate Capital Partners, through its affiliate Stonegate Capital Markets, provides equity research and capital markets advisory services, with this update offering insights into Viemed's strategic positioning amid evolving healthcare trends.