DaVita Inc. Reports Q1 2025 Financial Results with 5% Revenue Growth

DaVita Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $3.224 billion, a 5% increase from $3.071 billion in the same period last year. The company's dialysis patient service revenues rose to $3.103 billion, up from $2.942 billion in the prior year, while other revenues decreased slightly to $120 million from $129 million. However, net income attributable to DaVita Inc. fell to $162.9 million, or $2.00 per diluted share, compared to $239.6 million, or $2.65 per diluted share, in the first quarter of 2024.

The company's operating income also saw a decline, dropping to $438.9 million from $483.8 million year-over-year. This decrease was attributed to increased operating expenses, which rose to $2.785 billion from $2.587 billion, driven by higher patient care costs and general administrative expenses. The company reported a significant increase in patient care costs per treatment, which rose to $271.77 from $255.13, primarily due to rising pharmaceutical costs and compensation expenses.

In terms of operational metrics, DaVita's U.S. dialysis treatment volumes decreased by 1.6% year-over-year, with 7.04 million treatments reported compared to 7.15 million in the previous year. The average patient service revenue per treatment increased to $400.14, reflecting the incorporation of phosphate binders into the ESRD Prospective Payment System. The company also reported a slight increase in its employee headcount, with approximately 75.5 million shares of common stock outstanding as of May 9, 2025.

Strategically, DaVita has been focusing on expanding its integrated kidney care (IKC) business, which provided services to approximately 62,100 patients in risk-based arrangements as of March 31, 2025. The company also continues to pursue geographic expansion, with 512 outpatient dialysis centers operating internationally across 13 countries. However, DaVita faced challenges during the quarter, including a ransomware incident that disrupted operations but did not materially impact patient care.

Looking ahead, DaVita anticipates ongoing challenges related to labor costs, supply chain disruptions, and the impact of external economic conditions. The company remains committed to its strategic initiatives in integrated kidney care and value-based care, while also managing its financial obligations and maintaining liquidity through its revolving credit facilities.