DaVita (DVA) | Credit Investor

Next 12 Months: Starting Case

$ in millions	Last 12 Months	Next Quarter (4Q26E)	vs. 4Q25A	Next 12 Months	Change
Revenue	$14,168	$3,655	1.0%	$14,386	1.5%
Adj. EBITDA	$2,996	$750	(3.7%)	$3,017	0.7%
Free Cash Flow	$1,294	$368	(6.9%)	$1,499	15.9%
Net Debt, end of period	$10,274	$9,905		$8,774	(14.6%)
Net Debt / Adj. EBITDA	3.4x	3.3x		2.9x	-0.5x
Total Liquidity, end of period	$1,916	$2,284		$3,415	78.3%

The credit over the next year

DaVita is a per treatment spread business: in the third quarter of 2026 U.S. dialysis earned $415.25 of revenue and spent $280.22 on patient care per treatment, a $135 spread that was about $2 thinner than a year earlier as wages, supplies and insurance rose faster than rates. Over the next year the credit turns on whether the 2.7% Medicare rate increase for 2027 and commercial price hold revenue per treatment growth ahead of cost growth, and whether treatment volume keeps its slow recovery (average treatments per day up 1.2% year over year in the third quarter of 2026 after two years of declines). With leverage near 3.4x and steady buybacks, a $5 squeeze in the per treatment spread costs about $37mm of operating income a quarter.

Leverage falls from 3.4x to 2.9x over the next four quarters on the starting case.
Free cash flow of $1.50bn is projected over the next year, with no itemised debt due in that time.
Net debt shrinks from $10.27bn to $8.77bn.
Liquidity a year out is $3.41bn, against $1.92bn today.

Built from the inputs on the Projections tab of the model; change them there. A starting case from history, not a forecast.

Capital Structure

Cap Structure	Amt Out.	Mkt Price	Yield	Lev. Through	View
Unrestricted Cash	$495.6
Term Loan A-2 due 2030	1,962.5	100.0%	N/a	0.7x	Bullish
Revolving line of credit due 2030	80.0	100.0%	N/a	0.7x	Bullish
Term Loan B-2 due 2031	2,352.0	100.0%	N/a	1.5x	Bullish
Financing lease obligations	151.6	100.0%	N/a	1.5x	Bullish
Acquisition obligations and other notes payable	36.2	100.0%	N/a	1.5x	Bullish
4.625% Senior Notes due 2030	2,750.0	96.4%*	5.77%	2.4x	Bullish
3.750% Senior Notes due 2031	1,500.0	92.4%*	5.70%	2.9x	Bullish
6.875% Senior Notes due 2032	1,000.0	102.4%*	6.38%	3.3x	Bullish
6.750% Senior Notes due 2033	1,000.0	102.3%*	6.33%	3.6x	Bullish
Total Debt	$10,769.1			3.6x
Net Debt	$10,273.5			3.4x

Last Twelve Months

Revenue	$14,168
Implied Costs	(11,172)
Adj. EBITDA	$2,996
(-) Interest Expense	(594)
(-) Capex	(577)
Memo: FCF	$1,294
Total Liquidity	$1,915.6

Next 12 months, starting case▶ Revenue $14.17bn → $14.39bn▶ Adj. EBITDA $3.00bn → $3.02bn▲ Free cash flow $1.29bn → $1.50bn▼ Net leverage 3.4x → 2.9x▲ Liquidity $1.92bn → $3.41bn

DaVita

			9/30/26						Face Value / Adj. EBITDA
Cap Structure	Coupon	Maturity	Amt Out.	Mkt Price	YTM	Next Call	Yield to Call	View	2021A	2022A	2023A	2024A	2025A	LTM	3Q27E LTM	3Q28E LTM
Unrestricted Cash			$495.6
Undrawn Revolver ($1,500mm facility)			1,420.0
Total Liquidity			$1,915.6

Term Loan A-2 due 2030	S + 150	11/24/2030	1,962.5	100.0%	N/a	N/a	N/a	Bullish
Revolving line of credit due 2030	S + 150	11/24/2030	80.0	100.0%	N/a	N/a	N/a	Bullish
Term Loan B-2 due 2031	S + 175	5/9/2031	2,352.0	100.0%	N/a	N/a	N/a	Bullish
Financing lease obligations	4.26%	N/a	151.6	100.0%	N/a	N/a	N/a	Bullish
Acquisition obligations and other notes payable	5.16%	N/a	36.2	100.0%	N/a	N/a	N/a	Bullish
Total Secured Debt			$4,582.2						1.8x	2.1x	1.8x	1.6x	1.6x	1.5x	1.5x	1.5x
Net Secured Debt			$4,086.6						1.6x	1.9x	1.6x	1.4x	1.4x	1.4x	1.4x	1.3x

4.625% Senior Notes due 2030	4.625%	6/1/2030	2,750.0	96.4%*	5.77%	6/1/2027 @ 100.771	13.81%	Bullish
3.750% Senior Notes due 2031	3.75%	2/15/2031	1,500.0	92.4%*	5.70%	2/15/2027 @ 101.25	23.30%	Bullish
6.875% Senior Notes due 2032	6.875%	9/1/2032	1,000.0	102.4%*	6.38%	9/1/2027 @ 103.438	7.68%	Bullish
6.750% Senior Notes due 2033	6.75%	7/15/2033	1,000.0	102.3%*	6.33%	7/15/2028 @ 103.375	7.08%	Bullish
Other debt, discounts and issuance costs	N/a	N/a	(63.1)
Total Debt			$10,769.1						4.2x	5.0x	4.3x	3.7x	3.7x	3.6x	3.6x	3.5x
Net Debt			$10,273.5						4.0x	4.8x	4.1x	3.5x	3.6x	3.4x	2.9x	2.4x
						Adj. EBITDA			$2,567	$2,156	$2,478	$2,910	$2,892	$2,996	$3,017	$3,065

Key Financials

	2021A	2022A	2023A	2024A	2025A	LTM	3Q27E LTM	3Q28E LTM
Revenue	$11,619	$11,610	$12,140	$12,816	$13,643	$14,168	$14,386	$14,635
Y/Y Growth		(0.1%)	4.6%	5.6%	6.5%		1.5%	1.7%
Implied Costs	(9,052)	(9,454)	(9,662)	(9,906)	(10,751)	(11,172)	(11,369)	(11,570)
Adj. EBITDA	$2,567	$2,156	$2,478	$2,910	$2,892	$2,996	$3,017	$3,065
Margin	22.1%	18.6%	20.4%	22.7%	21.2%	21.1%	21.0%	20.9%
(-) Restructuring and other cash add-backs	--	--	--	--	--	--	--	--
Cash EBITDA	$2,567	$2,156	$2,478	$2,910	$2,892	$2,996	$3,017	$3,065
(-) Interest Expense (Cash Only)	(279)	(351)	(388)	(423)	(516)	(594)	(608)	(608)
(-) Cash Taxes	--	--	(268)	(388)	(177)	(324)	(324)	(324)
(-) Capex	(642)	(603)	(568)	(555)	(576)	(577)	(586)	(596)
(+/-) Working Capital and Other	(358)	(240)	237	(76)	(313)	(208)	--	--
Memo: FCF	$1,289	$961	$1,491	$1,467	$1,311	$1,294	$1,499	$1,537
% of Debt	12.0%	8.9%	13.8%	13.6%	12.2%	12.0%	13.9%	14.3%

Liquidity

Unrestricted Cash	$495.6
Undrawn Revolver	1,420.0
Total Liquidity	$1,915.6
(-) Debt due through 2028	-0.0
(+/-) Free cash flow, last twelve months	1,293.7
Liquidity after maturities and a year of cash flow	$3,209.3

Tranches are from the debt table in the latest quarterly or annual report.Blue figures are inputs in the model. Price is 100% of face unless marked *, which is a bond fund's own valuation from its SEC holdings report, not a traded price.Secured and unsecured are judged from each instrument's name. Adj. EBITDA is operating income plus D&A, stock compensation, restructuring and impairment charges as tagged in SEC filings; it is not the company's own adjusted figure. Free cash flow is cash from operations less capital spending.

The basket review for this company has not finished yet. When it does, this tab shows the dollar capacity to move value or prime lenders, the playbook moves that fit, and what they would do to each tranche. Meanwhile, see the liability management playbook.

Key Financials

	2021A	2022A	2023A	2024A	2025A	LTM	3Q27E LTM	3Q28E LTM
Revenue	$11,619	$11,610	$12,140	$12,816	$13,643	$14,168	$14,386	$14,635
Y/Y Growth		(0.1%)	4.6%	5.6%	6.5%		1.5%	1.7%
Implied Costs	(9,052)	(9,454)	(9,662)	(9,906)	(10,751)	(11,172)	(11,369)	(11,570)
Adj. EBITDA	$2,567	$2,156	$2,478	$2,910	$2,892	$2,996	$3,017	$3,065
Margin	22.1%	18.6%	20.4%	22.7%	21.2%	21.1%	21.0%	20.9%
(-) Restructuring and other cash add-backs	--	--	--	--	--	--	--	--
Cash EBITDA	$2,567	$2,156	$2,478	$2,910	$2,892	$2,996	$3,017	$3,065
(-) Interest Expense (Cash Only)	(279)	(351)	(388)	(423)	(516)	(594)	(608)	(608)
(-) Cash Taxes	--	--	(268)	(388)	(177)	(324)	(324)	(324)
(-) Capex	(642)	(603)	(568)	(555)	(576)	(577)	(586)	(596)
(+/-) Working Capital and Other	(358)	(240)	237	(76)	(313)	(208)	--	--
Memo: FCF	$1,289	$961	$1,491	$1,467	$1,311	$1,294	$1,499	$1,537
% of Debt	12.0%	8.9%	13.8%	13.6%	12.2%	12.0%	13.9%	14.3%

Key Drivers

Driver	4Q25A	1Q26A	2Q26A	3Q26A	4Q26E	1Q27E	2Q27E	3Q27E	4Q27E	1Q28E	2Q28E	3Q28E	Sensitivity	Next 12m impact ($mm)
U.S. dialysis average treatments per day thousands of treatments per day	91.6	91.7	92.6	92.8	91.6	91.7	92.6	92.8	91.6	91.7	92.6	92.8	$32.4mm on revenue	--
U.S. dialysis average patient service revenue per treatment $ per treatment	422.60	417.59	415.87	415.25	427.40	425.94	424.19	423.56	435.95	434.46	432.67	432.03	$7.3mm on revenue	218
U.S. dialysis patient care costs per treatment $ per treatment	279.60	280.11	277.40	280.22	286.31	286.83	284.06	286.95	293.18	293.72	290.87	293.83	$7.3mm on cost of revenue	197
U.S. dialysis general and administrative expense per treatment $ per treatment	46.28	45.49	45.79	43.14	46.28	45.49	45.79	43.14	46.28	45.49	45.79	43.14	$7.3mm on SG&A	--

DaVita is a per treatment spread business: in the third quarter of 2026 U.S. dialysis earned $415.25 of revenue and spent $280.22 on patient care per treatment, a $135 spread that was about $2 thinner than a year earlier as wages, supplies and insurance rose faster than rates. Over the next year the credit turns on whether the 2.7% Medicare rate increase for 2027 and commercial price hold revenue per treatment growth ahead of cost growth, and whether treatment volume keeps its slow recovery (average treatments per day up 1.2% year over year in the third quarter of 2026 after two years of declines). With leverage near 3.4x and steady buybacks, a $5 squeeze in the per treatment spread costs about $37mm of operating income a quarter.

Bottoms-Up Projections: starting case

$ in millions	4Q25A	1Q26A	2Q26A	3Q26A	4Q26E	1Q27E	2Q27E	3Q27E	4Q27E	1Q28E	2Q28E	3Q28E
Revenue	$3,620	$3,416	$3,554	$3,578	$3,655	$3,477	$3,615	$3,639	$3,718	$3,539	$3,677	$3,701
Y/Y Growth	9.9%	6.0%	5.2%	4.6%	1.0%	1.8%	1.7%	1.7%	1.7%	1.8%	1.7%	1.7%
Adj. EBITDA	$779	$688	$773	$756	$750	$697	$794	$776	$762	$709	$806	$788
Margin	21.5%	20.1%	21.7%	21.1%	20.5%	20.0%	22.0%	21.3%	20.5%	20.0%	21.9%	21.3%
Free Cash Flow	$395	$219	$320	$359	$368	$322	$414	$395	$378	$332	$424	$404
Cash, end of period	676	644	669	496	864	1,186	1,600	1,995	2,373	2,704	3,128	3,532
Total Debt, end of period	10,273	10,626	10,781	10,769	10,769	10,769	10,769	10,769	10,769	10,769	10,769	10,769
Net Debt / Adj. EBITDA	3.3x	3.4x	3.4x	3.4x	3.3x	3.2x	3.1x	2.9x	2.8x	2.7x	2.5x	2.4x

Revenue is built from one revenue line, each driven by volume and by price and mix against the same quarter a year earlier. Every cost line, interest, taxes, capital spending and working capital has its own input on the Projections tab of the model. This is a starting case built from history, not a forecast.

Earnings call: Q3 2026 · Oct 29, 2026

Slides Webcast and audio replay Investor relations site

Revenue grew and core U.S. dialysis held steady, but a China impairment and weak kidney care results pulled down reported profit; guidance low end was raised.

Takeaways

Revenue was $3.58B, up about 4.6% from a year ago and slightly above Q2. Adjusted operating income was $561M, a 15.7% margin, below Q2.
U.S. dialysis was steady. Segment operating income rose to $544M. Treatments per day grew only 0.1% from Q2, and cost per treatment rose on medical supplies.
Integrated kidney care weakened. Its operating income fell to $4M from $40M in Q2, even as risk-based patients grew to about 80,800.
A $62M non-cash goodwill and asset impairment hit the China business. The net hit to DaVita shareholders was about $27M.
Cash flow improved. Operating cash flow was $519M and free cash flow was $276M, both up from Q2.
Leverage was stable at 3.38x, well inside the 5.00x covenant. Total debt was about $10.8B with roughly $563M of cash and short-term investments.

Debt and capital

Total debt was $10.83B at September 30, 2026, versus $10.85B at June 30. Net debt was about $10.3B.
Leverage ratio was 3.38x, versus 3.37x in Q2 and 3.34x in Q1. The credit agreement allows up to 5.00x.
Weighted average interest rate rose to 5.54% from 5.43%. The secured facilities averaged 6.02%.
No new debt deal in Q3. In June 2026 the credit agreement was amended and a $500M incremental Term Loan B-2 was added, partly to pay down the revolver.
Buybacks slowed. The company bought 0.6M shares for $111M in Q3 and 0.5M shares for $87M through October 27, after $348M in Q2.
The release gives no maturity schedule or revolver availability. Current portion of long-term debt was $112.5M.

Guidance

2026 adjusted operating income: $2,175M to $2,250M. Low end raised from $2,150M; top end held.
2026 adjusted diluted EPS: $14.30 to $15.20. Low end raised from $14.10; top end held.
2026 free cash flow: $1,000M to $1,250M. Held.
No guidance for GAAP operating income, GAAP EPS or operating cash flow.

Tone: Steady and measured, with management signaling more confidence in the full-year range despite softer kidney care results and the China charge.

Q2 2026Slides · Webcast
Q1 2026Slides · Webcast
Q4 2025Slides · Webcast

Summary written with AI from Press release only. DaVita does not publish slides, prepared remarks or a transcript on its IR site or with the SEC.. Slides, audio and any transcript are the company's and open on its own site. Full transcripts from transcript vendors are not reproduced here.

Last quarter: Third quarter 2026

DaVita grew third quarter revenue 4.6% to $3.6bn and raised the low end of its 2026 adjusted operating income guidance.

Results

Revenue was $3,578mm, up from $3,420mm a year earlier and $3,554mm in the second quarter.
Adjusted operating income, the company's main profit measure, was $561mm (15.7% margin) versus $517mm a year earlier; GAAP operating income was $499mm after a $62mm China impairment.
Free cash flow was $276mm versus $604mm a year earlier, as operating cash flow fell to $519mm from $842mm; last twelve months free cash flow was $980mm.
Net income attributable to DaVita was $223mm, or $3.40 per diluted share; adjusted diluted EPS was $3.82.
The company bought back 0.6mm shares for $111mm in the quarter and another $87mm through October 27.

Why

U.S. dialysis operating income rose to $544mm from $538mm in the second quarter, with treatments per day up 0.1% and normalized non-acquired treatment growth of 0.4% year over year.
Revenue per U.S. treatment was flat at about $415, while patient care cost per treatment rose $2.82 to $280.22, mainly from higher medical supply costs.
Integrated kidney care operating income fell to $4mm from $40mm in the second quarter, even as risk-based patients grew to about 80,800.
International swung to a $16mm operating loss because of a $62mm non-cash goodwill and asset impairment in China; excluding it, international earned $46mm.

Balance sheet and guidance

Total debt was $10,832mm at quarter end, and long-term debt rose to $10,657mm from $10,164mm at year end 2025 as buybacks continued.
Leverage under the credit agreement was 3.38x (net debt $10,269mm over last twelve months Consolidated EBITDA of $3,042mm), against a 5.00x maximum.
Cash and equivalents were $496mm plus $71mm of short-term investments; the weighted average interest rate was 5.54%.
2026 adjusted operating income guidance moved to $2,175mm to $2,250mm from $2,150mm to $2,250mm, a raise of the low end.
2026 adjusted diluted EPS guidance moved to $14.30 to $15.20 from $14.10 to $15.20.
2026 free cash flow guidance was held at $1,000mm to $1,250mm.

What to watch

Fourth quarter free cash flow: nine month free cash flow was $672mm, so the low end of the $1,000mm full-year range needs about $328mm in the fourth quarter.
U.S. dialysis cost per treatment, which rose $2.82 in the quarter while revenue per treatment was flat.
Debt-funded buybacks and integrated kidney care profit: long-term debt is up about $490mm this year, and kidney care operating income dropped to $4mm from $40mm.

From the company's press release filed Oct 29, 2026. Figures in this section are as the company reports them, including its own adjusted EBITDA.

Filings

Earnings releases 8

Oct 29, 20268-K for Oct 29, 2026: Results · Press release
Aug 4, 20268-K for Aug 4, 2026: Results · Press release
May 5, 20268-K for May 5, 2026: Results · Press release
Feb 2, 20268-K for Feb 2, 2026: Results · Press release
Oct 29, 20258-K for Oct 29, 2025: Results · Press release
Aug 5, 20258-K for Aug 5, 2025: Results · Press release
May 12, 20258-K for May 12, 2025: Results · Press release
Feb 13, 20258-K for Feb 13, 2025: Results · Press release

Annual reports (10-K) 5

Quarterly reports (10-Q) 12

Current reports (8-K) 20

Jun 8, 20268-K for Jun 4, 2026: Material agreement; New debt; Shareholder vote
Nov 25, 20258-K for Nov 24, 2025: Material agreement; New debt
Aug 20, 20258-K for Aug 20, 2025: Other event
Jul 17, 20258-K for Jul 17, 2025: Material agreement; New debt
Jun 9, 20258-K for Jun 5, 2025: Shareholder vote
May 23, 20258-K for May 23, 2025: Material agreement; New debt
May 20, 20258-K for May 20, 2025: Other event
May 20, 20258-K for May 20, 2025: Other event
Apr 14, 20258-K for Apr 12, 2025: Other event
Sep 13, 20248-K for Sep 9, 2024: Director or officer change
Sep 5, 20248-K for Sep 5, 2024: Bylaw change; Other event
Aug 14, 20248-K for Aug 13, 2024: Material agreement; New debt
Aug 9, 20248-K for Aug 8, 2024: Other event
Aug 8, 20248-K for Aug 8, 2024: Other event
Jun 10, 20248-K for Jun 6, 2024: Shareholder vote
May 13, 20248-K for May 9, 2024: Material agreement; New debt
May 1, 20248-K for Apr 30, 2024: Material agreement
Apr 10, 20248-K for Apr 6, 2024: Director or officer change
Jul 25, 20238-K for Jul 19, 2023: Director or officer change
Jul 13, 20238-K for Jul 12, 2023: Director or officer change

Proxy statements 3

Other filings 8

Sep 17, 2020SC TO-I/A
Sep 15, 2020SC TO-I/A
Sep 8, 2020SC TO-I/A
Aug 27, 2020SC TO-I/A
Aug 17, 2020SC TO-I
Aug 23, 2019SC TO-I/A
Aug 19, 2019SC TO-I/A
Aug 14, 2019SC TO-I/A

Links open the document on SEC EDGAR. Earnings call transcripts are not SEC filings and belong to their publishers, so they are not reproduced here; the press release and slides filed with each results 8-K are.

Coming up

Feb 10, 2027Results. Full-year results for the period ending 2026-12-31. The date is an estimate: last year's filing date moved forward a year.

Recent 8-K filings

Oct 29, 2026Reported results
Aug 4, 2026Reported results