Viemed Healthcare Shows Improved Growth Quality in Q1, Says Stonegate Capital Partners

Stonegate Capital Partners has updated its coverage on Viemed Healthcare, Inc. (NASDAQ: VMD), highlighting that the company's first-quarter 2026 results showed improving growth quality rather than just reported scale. The report noted that sleep, resupply, and maternal health services are becoming larger contributors to revenue, reducing reliance on legacy ventilation and improving capital efficiency. Ventilation services appear to be moving through the NCD transition, with better new-start activity and improving compliance, though turnover continues to pressure census.

Key takeaways from the report include a meaningful improvement in free cash flow (FCF) conversion. Cash flow from operations (CFFO) increased to $8.1 million from $2.9 million in the same period last year, while trailing twelve-month (TTM) FCF rose to $36.3 million from $23.3 million at year-end 2025. The revenue mix also continued to improve, with ventilator rentals declining to 46.9% of revenue from 54.4%, while commercial payors increased to 23% from 17%. Sleep and resupply remain the clearest growth drivers, with PAP patients increasing 57% year-over-year to 35,938, new patient starts growing 42%, and resupply patients increasing 47% year-over-year.

According to Stonegate Capital Partners, the broader mix is driving stronger FCF conversion as sleep, resupply, and maternal health scale. For the full announcement, including downloadable images and bios, click 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), provides a full spectrum of investment banking, equity research, and capital raising for public and private companies.