UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
x Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended June 30, 2026
o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission File Number: 1-8351
CHEMED CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
31-0791746
(State or other jurisdiction of incorporation or organization)
(IRS Employer Identification No.)
255 E. Fifth Street, Suite 2600, Cincinnati, Ohio
45202
(Address of principal executive offices)
(Zip code)
(513) 762-6690
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
x
No
o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Large Accelerated Filer
Accelerated Filer
Non-accelerated Filer
Smaller Reporting Company
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended the extended transition period for complying with a new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol
Name of Each Exchange
on which Registered
Amount
Date
Capital Stock $1 Par Value
CHE
New York Stock Exchange
13,069,961 Shares
June 30, 2026
SUBSIDIARY COMPANIES
Index
Page No.
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Unaudited Consolidated Balance Sheets -
June 30, 2026 and December 31, 2025
3
Unaudited Consolidated Statements of Income -
Three months and six months ended June 30, 2026 and 2025
4
Unaudited Consolidated Statements of Cash Flows -
Six months ended June 30, 2026 and 2025
5
Unaudited Consolidated Statements of Changes in Stockholders’ Equity-
6
Notes to Unaudited Consolidated Financial Statements
8
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
25
Item 3. Quantitative and Qualitative Disclosures about Market Risk
41
Item 4. Controls and Procedures
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
42
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
43
EX – 10.1
EX – 31.1
EX – 31.2
EX – 32.1
EX – 32.2
EX – 101
EX – 104
SIGNATURES
44
PART I. FINANCIAL INFORMATION
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
December 31, 2025
ASSETS
Current assets
Cash and cash equivalents
$
40,222
74,515
Accounts receivable less allowances
188,634
182,575
Inventories
7,630
7,543
Prepaid income taxes
17,646
11,165
Prepaid expenses
37,103
26,818
Total current assets
291,235
302,616
Investments of deferred compensation plans held in trust
148,153
140,347
Properties and equipment, at cost, less accumulated depreciation of $403,739 (2025- $388,104)
208,499
205,662
Lease right of use asset
142,535
131,151
Identifiable intangible assets less accumulated amortization of $74,720 (2025 - $69,432)
78,601
82,764
Goodwill
699,398
666,999
Other assets
11,164
8,650
Total Assets
1,579,585
1,538,189
LIABILITIES
Current liabilities
Accounts payable
84,713
64,459
Accrued insurance
72,455
62,054
Accrued compensation
63,794
58,329
Short-term lease liability
41,277
40,892
Income taxes
-
2,504
Other current liabilities
57,607
58,892
Total current liabilities
319,846
287,130
Deferred compensation liabilities
146,986
136,139
Long-term debt
140,000
Long-term lease liability
113,516
102,867
Deferred income taxes
15,050
19,313
Other liabilities
13,677
13,335
Total Liabilities
749,075
558,784
Commitments and contingencies (Note 10)
STOCKHOLDERS' EQUITY
Capital stock - authorized 80,000,000 shares $1 par; issued 37,612,657 shares (2025 - 37,594,676 shares)
37,613
37,595
Paid-in capital
1,617,125
1,592,197
Retained earnings
3,073,331
2,955,375
Treasury stock - 24,597,558 shares (2025 - 23,884,187 shares)
(3,900,000)
(3,608,117)
Deferred compensation payable in Company stock
2,441
2,355
Total Stockholders' Equity
830,510
979,405
Total Liabilities and Stockholders' Equity
See Accompanying Notes to Unaudited Consolidated Financial Statements.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
Service revenues and sales
673,251
618,798
1,330,764
1,265,741
Cost of services provided and goods sold (excluding depreciation)
451,780
434,105
893,529
864,635
Selling, general and administrative expenses
115,203
100,323
229,524
205,910
Depreciation
14,267
13,689
28,570
27,134
Amortization
2,719
2,571
5,289
5,143
Other operating expense
78
26
70
77
Total costs and expenses
584,047
550,714
1,156,982
1,102,899
Income from operations
89,204
68,084
173,782
162,842
Interest expense
(1,789)
(443)
(2,301)
(772)
Other income - net
3,914
3,474
8,688
4,719
Income before income taxes
91,329
71,115
180,169
166,789
(23,626)
(18,622)
(46,164)
(42,539)
Net income
67,703
52,493
134,005
124,250
Earnings Per Share:
5.14
3.60
9.98
8.51
Average number of shares outstanding
13,174
14,591
13,423
14,606
Diluted Earnings Per Share:
5.13
3.57
9.97
8.43
13,199
14,703
13,442
14,733
Cash Dividends Per Share
0.60
0.50
1.20
1.00
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Cash Flows from Operating Activities
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization
33,859
32,277
Stock option expense
18,302
18,307
Benefit for deferred income taxes
(4,262)
(13,243)
Noncash long-term incentive compensation
3,633
3,273
Noncash directors' compensation
1,191
1,123
Litigation settlements
548
Amortization of debt issuance costs
163
160
Changes in operating assets and liabilities:
Increase in accounts receivable
(6,716)
(13,466)
Increase in inventories
(87)
(955)
Increase in prepaid expenses
(10,285)
(7,232)
Increase/(decrease) in accounts payable and other current liabilities
9,174
(12,449)
Change in current income taxes
(8,985)
(10,764)
Net change in lease assets and liabilities
292
(72)
(Increase)/decrease in other assets
(9,489)
48,426
Increase in other liabilities
11,191
1,521
Other sources
498
194
Net cash provided by operating activities
173,032
171,350
Cash Flows from Investing Activities
Business combinations, net of cash acquired
(33,540)
(225)
Capital expenditures
(32,639)
(29,088)
Proceeds from sale of fixed assets
422
480
Other uses
(270)
(322)
Net cash used by investing activities
(66,027)
(29,155)
Cash Flows from Financing Activities
Proceeds from revolving line of credit
491,480
Payments on revolving line of credit
(351,480)
Purchases of treasury stock
(287,521)
(76,168)
Change in cash overdrafts payable
23,305
309
Dividends paid
(16,049)
(14,542)
Proceeds from exercise of stock options
2,731
27,152
Capital stock surrendered to pay taxes on stock-based compensation
(1,482)
(8,484)
Debt issuance costs
(1,349)
Other (uses)/sources
(933)
1,092
Net cash used by financing activities
(141,298)
(70,641)
(Decrease)/increase in Cash and Cash Equivalents
(34,293)
71,554
Cash and cash equivalents at beginning of period
178,350
Cash and cash equivalents at end of period
249,904
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
For the three months ended June 30, 2026 and 2025:
Deferred
Compensation
Treasury
Payable in
Capital
Paid-in
Retained
Stock-
Company
Stock
Earnings
at Cost
Total
Balance at March 31, 2026
37,607
1,603,730
3,013,504
(3,809,245)
2,398
847,994
Dividends paid ($0.60 per share)
(7,876)
Stock awards and exercise of stock options
13,904
13,910
(89,839)
Excise tax on share repurchase
(872)
Other
(509)
(44)
(510)
Balance at June 30, 2026
Balance at March 31, 2025
37,535
1,538,419
2,786,264
(3,182,718)
2,262
1,181,762
Dividends paid ($0.50 per share)
(7,217)
58
36,803
(23,413)
13,448
(42,945)
943
(39)
40
944
Balance at June 30, 2025
37,593
1,576,165
2,831,540
(3,249,115)
2,302
1,198,485
For the six months ended June 30, 2026 and 2025:
Balance at December 31, 2025
Dividends paid ($1.20 per share)
18
25,839
24,375
(2,792)
(911)
(88)
86
(913)
Balance at December 31, 2024
37,422
1,484,176
2,721,832
(3,126,660)
2,223
1,118,993
Dividends paid ($1.00 per share)
171
90,875
(49,675)
41,371
(72,701)
1,114
(79)
79
1. Basis of Presentation
As used herein, the terms “We,” “Company” and “Chemed” refer to Chemed Corporation or Chemed Corporation and its consolidated subsidiaries.
We have prepared the accompanying unaudited consolidated financial statements of Chemed in accordance with Rule 10-01 of SEC Regulation S-X. Consequently, we have omitted certain disclosures required under generally accepted accounting principles in the United States (“GAAP”) for complete financial statements. The December 31, 2025 balance sheet data were derived from audited financial statements but do not include all disclosures required by GAAP. However, in our opinion, the financial statements presented herein contain all adjustments, consisting only of normal recurring adjustments, necessary to state fairly our financial position, results of operations and cash flows. The results of operations for the six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026 or any other future period, and we make no representations related thereto. These financial statements are prepared on the same basis as and should be read in conjunction with the audited Consolidated Financial Statements and related Notes included in our Annual Report on Form 10-K for the year ended December 31, 2025.
INCOME TAXES
Our effective income tax rate was 25.9% in the second quarter of 2026 compared to 26.2% during the second quarter of 2025. Excess tax expense/benefit on stock options exercised were immaterial for the quarters ended June 30, 2026 and 2025, respectively.
Our effective tax rate reconciliation is as follows (in thousands):
Three months ended June 30,
Income tax provision calculated at the statutory federal rate
19,179
14,934
State and local income taxes, less federal income tax effect
2,811
2,261
Nondeductible expenses:
Stock compensation tax expense/(benefit)
445
(50)
Other--net
1,477
Income tax provision
23,626
18,622
Effective tax rate
25.9
%
26.2
Our effective income tax rate was 25.6% in the first six months of 2026 compared to 25.5% during the first six months of 2025. Excess tax expense/benefit on stock options exercised were immaterial for the first six months ended June 30, 2026 and 2025, respectively.
Six months ended June 30,
37,835
35,026
5,529
6,448
501
(513)
2,299
1,578
46,164
42,539
25.6
25.5
NON-CASH TRANSACTIONS
Included in the accompanying Consolidated Balance Sheets are $1.2 million and $2.1 million of capitalized property and equipment which were not paid for as of June 30, 2026 and December 31, 2025, respectively. Accrued property and equipment purchases have been excluded from capital expenditures in the accompanying Consolidated Statements of Cash Flows. There are no material non-cash amounts included in interest expense for any period presented.
BUSINESS COMBINATIONS
We account for acquired businesses using the acquisition method of accounting. All assets acquired and liabilities assumed are recorded at their respective fair values at the date of acquisition. The determination of fair value involves estimates and the use of valuation techniques when market value is not readily available. We use various techniques to determine fair value in accordance with accepted valuation models, primarily the income approach. The significant assumptions used in developing fair values include, but are not limited to, revenue growth rates, the amount and timing of future cash flows, discount rates, useful lives, royalty rates and future tax rates. The excess of purchase price over the fair value of assets and liabilities acquired is recorded as goodwill. See Note 15 for discussion of recent acquisitions.
ESTIMATES
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying Notes. Actual results could differ from those estimates. Disclosures of after-tax expenses and adjustments are based on estimates of the effective income tax rates for the applicable segments.
2. Revenue Recognition
In May 2014, the FASB issued Accounting Standards Update “ASU No. 2014-09 – Revenue from Contracts with Customers.” The standard and subsequent amendments are intended to develop a common revenue standard for removing inconsistencies and weaknesses, improve comparability, provide for more useful information to users through improved disclosure requirements and simplify the preparation of financial statements. The standard is also referred to as Accounting Standards Codification No. 606 (“ASC 606”).
VITAS
Service revenue for VITAS is reported at the amount that reflects the ultimate consideration we expect to receive in exchange for providing patient care. These amounts are due from third-party payors, primarily commercial health insurers and government programs (Medicare and Medicaid), and include variable consideration for revenue adjustments due to settlements of audits and reviews, as well as certain hospice-specific revenue capitations. Amounts are generally billed monthly or subsequent to patient discharge. Subsequent changes in the transaction price initially recognized are not significant.
Hospice services are provided on a daily basis and the type of service provided is determined based on a physician’s determination of each patient’s specific needs on that given day. Reimbursement rates for hospice services are on a per diem basis regardless of the type of service provided or the payor. Reimbursement rates from government programs are established by the appropriate governmental agency and are standard across all hospice providers. Reimbursement rates from health insurers are negotiated with each payor and generally structured to closely mirror the Medicare reimbursement model. The types of hospice services provided and associated reimbursement model for each are as follows:
Routine Home Care occurs when a patient receives hospice care in their home, including a nursing home setting. The routine home care rate is paid for each day that a patient is in a hospice program and is not receiving one of the other categories of hospice care. For Medicare patients, the routine home care rate reflects a two-tiered rate, with a higher rate for the first 60 days of a hospice patient’s care and a lower rate for days 61 and after. In addition, there is a Service Intensity Add-on payment which covers direct home care visits conducted by a registered nurse or social worker in the last seven days of a hospice patient’s life, reimbursed up to 4 hours per day in 15 minute increments at the continuous home care rate.
General Inpatient Care occurs when a patient requires services in a controlled setting for a short period of time for pain control or symptom management which cannot be managed in other settings. General inpatient care services must be provided in a Medicare or Medicaid certified hospital or long-term care facility or at a freestanding inpatient hospice facility with the required registered nurse staffing.
Continuous Home Care is provided to patients while at home, including a nursing home setting, during periods of crisis when intensive monitoring and care, primarily nursing care, is required in order to achieve palliation or management of acute medical symptoms. Continuous home care requires a minimum of 8 hours of care within a 24-hour day, which begins at midnight. The care must be predominantly nursing care provided by either a registered nurse or licensed nurse practitioner. While the published Medicare continuous home care rates are daily rates, Medicare pays for continuous home care in 15 minute increments. This 15 minute rate is calculated by dividing the daily rate by 96.
Respite Care permits a hospice patient to receive services on an inpatient basis for a short period of time in order to provide relief for the patient’s family or other caregivers from the demands of caring for the patient. A hospice can receive payment for respite care for a given patient for up to five consecutive days at a time, after which respite care is reimbursed at the routine home care rate.
Each level of care represents a separate promise under the contract of care and is provided independently for each patient contingent upon the patient’s specific medical needs as determined by a physician. However, the clinical criteria used to determine a patient’s level of care is consistent across all patients, given that, each patient is subject to the same payor rules and regulations. As a result, we have concluded that each level of care is capable of being distinct and is distinct in the context of the contract. Furthermore, we have determined that each level of care represents a stand ready service provided as a series of either days or hours of patient care. We believe that the performance obligations for each level of care meet criteria to be satisfied over time. VITAS recognizes revenue based on the service output. VITAS believes this to be the most faithful depiction of the transfer of control of services as the patient simultaneously receives and consumes the benefits provided by our performance. Revenue is recognized on a daily or hourly basis for each patient in accordance with the reimbursement model for each type of service. VITAS’ performance obligations relate to contracts with an expected duration of less than one year. Therefore, VITAS has elected to apply the optional exception provided in ASC 606 and is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The unsatisfied or partially satisfied performance obligations referred to above relate to bereavement services provided to patients’ families for at least 12 months after discharge.
Care is provided to patients regardless of their ability to pay. Patients who meet our criteria for charity care are provided care without charge. There is no revenue or associated accounts receivable in the accompanying Consolidated Financial Statements related to charity care. The cost of providing charity care for the quarters ended June 30, 2026 and 2025 was $2.2 million and $2.3 million, respectively. The cost of providing charity care for the first six months ended June 30, 2026 and 2025 was $4.4 million and $4.3 million, respectively. The cost of charity care is included in cost of services provided and goods sold and is calculated by taking the ratio of charity care days to total days of care and multiplying by the total cost of care.
Generally, patients who are covered by third-party payors are responsible for related deductibles and coinsurance which vary in amount. VITAS also provides service to patients without a reimbursement source and may offer those patients discounts from standard charges. VITAS estimates the transaction price for patients with deductibles and coinsurance, along with those uninsured patients, based on historical experience and current conditions. The estimate of any contractual adjustments, discounts or implicit price concessions reduces the amount of revenue initially recognized. Subsequent changes to the estimate of the transaction price are recorded as adjustments to patient service revenue in the period of change. Subsequent changes that are determined to be the result of an adverse change in the patients’ ability to pay (i.e. change in credit risk) are recorded as bad debt expense. VITAS has no material adjustments related to subsequent changes in the estimate of the transaction price or subsequent changes as the result of an adverse change in the patient’s ability to pay for any period reported.
Laws and regulations concerning government programs, including Medicare and Medicaid, are complex and subject to varying interpretation and change over time. Medicare and Medicaid programs have broad authority to audit and review compliance with such laws and regulations and impose payment suspensions or modifications when merited. Additionally, the contracts we have with commercial health insurance payors provide for retroactive audit and review of claims. Settlement with third party payors for retroactive adjustments due to audits, reviews or investigations are considered variable consideration and are included in the determination of the estimated transaction price for providing patient care. The variable consideration is estimated based on the terms of the payment agreement, existing correspondence from the payor and our historical settlement activity. These estimates are adjusted in future periods, as new information becomes available.
We are subject to certain limitations on Medicare payments for services which are considered variable consideration, as follows:
Inpatient Cap. If the number of inpatient care days any hospice program provides to Medicare beneficiaries exceeds 20% of the total days of hospice care such program provided to all Medicare patients for an annual period beginning September 28, the days in excess of the 20% figure may be reimbursed only at the routine homecare rate. None of VITAS’ hospice programs exceeded the payment limits on inpatient services during the six months ended June 30, 2026 and 2025.
Medicare Cap. We are also subject to a Medicare annual per-beneficiary cap (“Medicare Cap”). Compliance with the Medicare Cap is measured in one of two ways based on a provider election. The “streamlined” method compares total Medicare payments received under a Medicare provider number with respect to services provided to all Medicare hospice care beneficiaries in the program or programs covered by that Medicare provider number with the product of the per-beneficiary cap amount and the number of Medicare beneficiaries electing hospice care for the first time from that hospice program or programs from September 28 through September 27 of the following year. At June 30, 2026, all our programs except three are using the “streamlined” method.
The “proportional” method compares the total Medicare payments received under a Medicare provider number with respect to services provided to all Medicare hospice care beneficiaries in the program or programs covered by the Medicare provider number between September 28 and September 27 of the following year with the product of the per beneficiary cap amount and a pro-rated number of Medicare beneficiaries receiving hospice services from that program during the same period. The pro-rated number of Medicare beneficiaries is calculated based on the ratio of days the beneficiary received hospice services during the measurement period to the total number of days the beneficiary received hospice services.
We actively monitor each of our hospice programs, by provider number, as to their specific admission, discharge rate and median length of stay data in an attempt to determine whether revenues are likely to exceed the annual per-beneficiary Medicare Cap. Should we determine that revenues for a program are likely to exceed the Medicare Cap based on projected trends, we attempt to institute corrective actions, which include changes to the patient mix and increased patient admissions. However, should we project our corrective action will not prevent that program from exceeding its Medicare Cap, we estimate revenue recognized during the government fiscal year that will require repayment to the Federal government under the Medicare Cap and record an adjustment to revenue of an amount equal to a ratable portion of our best estimate for the year.
For VITAS’ patients in the nursing home setting in which Medicaid pays the nursing home room and board, VITAS serves as a pass-through between Medicaid and the nursing home. We are responsible for paying the nursing home for that patient’s room and board. Medicaid reimburses us for 95% of the amount we have paid. This results in a 5% net expense for VITAS related to nursing home room and board. This transaction creates a performance obligation in that VITAS is facilitating room and board being delivered to our patient. As a result, the 5% net expense is recognized as a contra-revenue account under ASC 606 in the accompanying financial statements.
The composition of patient care service revenue by payor and level of care for the quarter ended June 30, 2026 is as follows (in thousands):
Medicare
Medicaid
Commercial
Routine home care
369,992
13,001
8,355
391,348
Inpatient care
30,854
2,345
2,474
35,673
Continuous care
17,792
583
1,021
19,396
418,638
15,929
11,850
446,417
All other revenue - self-pay, respite care, etc.
6,206
Subtotal
452,623
Medicare cap adjustment
(500)
Implicit price concessions
(4,844)
Room and board, net
(3,938)
Net revenue
443,341
The composition of patient care service revenue by payor and level of care for the quarter ended June 30, 2025 is as follows (in thousands):
338,148
11,274
8,620
358,042
28,797
2,000
2,226
33,023
21,934
636
1,070
23,640
388,879
11,916
414,705
5,747
420,452
(16,375)
(3,984)
(3,892)
396,201
The composition of patient care service revenue by payor and level of care for the six months ended June 30, 2026 is as follows (in thousands):
720,068
25,555
16,815
762,438
62,304
4,672
4,623
71,599
34,376
1,134
2,020
37,530
816,748
31,361
23,458
871,567
11,783
883,350
(2,875)
(9,921)
(7,196)
863,358
The composition of patient care service revenue by payor and level of care for the six months ended June 30, 2025 is as follows (in thousands):
670,788
22,311
16,509
709,608
58,341
4,164
4,540
67,045
44,779
1,379
2,118
48,276
773,908
27,854
23,167
824,929
11,092
836,021
(18,700)
(6,304)
(7,417)
803,600
Roto-Rooter
Roto-Rooter provides plumbing, drain cleaning, excavation, water restoration and other related services to both residential and commercial customers primarily in the United States. Services are provided through a network of company-owned branches, independent contractors and franchisees. Service revenue for Roto-Rooter is reported at the amount that reflects the ultimate consideration we expect to receive in exchange for providing services.
Roto-Rooter owns and operates branches focusing mainly on large population centers in the United States. Roto-Rooter’s primary lines of business in company-owned branches consist of plumbing, sewer and drain cleaning, excavation and water restoration. For purposes of ASC 606 analysis, plumbing, sewer and drain cleaning, and excavation have been combined into one portfolio and are referred to as “short-term core services”. Water restoration is analyzed as a separate portfolio. The following describes the key characteristics of these portfolios:
Short-term Core Services are plumbing, drain and sewer cleaning and excavation services. These services are provided to both commercial and residential customers. The duration of services provided in this category range from a few hours to a few days. There are no significant warranty costs or on-going obligations to the customer once a service has been completed. For residential customers, payment is received at the time of job completion before the Roto-Rooter technician leaves the residence. Commercial customers may be granted credit subject to internally designated authority limits and credit check guidelines. If credit is granted, payment terms are generally 30 days or less.
Each job in this category is a distinct service with a distinct performance obligation to the customer. Revenue is recognized at the completion of each job. Variable consideration consists of pre-invoice discounts and post-invoice discounts. Pre-invoice discounts are given in the form of coupons or price concessions. Post-invoice discounts consist of credit memos generally granted to resolve customer service issues. Variable consideration is estimated based on historical activity and recorded at the time service is completed.
Water Restoration Services involve the remediation of water and humidity after a flood. These services are provided to both commercial and residential customers. The duration of services provided in this category generally ranges from 3 to 5 days. There are no significant warranties or on-going obligations to the customer once service has been completed. The majority of these services are
paid by the customer’s insurance company. Variable consideration relates primarily to allowances taken by insurance companies upon payment. Variable consideration is estimated based on historical activity and recorded at the time service is completed.
For both short-term core services and water restoration services, Roto-Rooter satisfies its performance obligation at a point in time. The services provided generally involve fixing plumbing, drainage or flood-related issues at the customer’s property. At the time service is complete, the customer acknowledges its obligation to pay for service and its satisfaction with the service performed. This provides evidence that the customer has accepted the service and Roto-Rooter is now entitled to payment. As such, Roto-Rooter recognizes revenue for these services upon completion of the job and receipt of customer acknowledgement. Roto-Rooter’s performance obligations for short-term core services and water restoration services relate to contracts with an expected duration of less than a year. Therefore, Roto-Rooter has elected to apply the optional exception provided in ASC 606 and is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. Roto-Rooter does not have significant unsatisfied or partially unsatisfied performance obligations at the time of initial revenue recognition for short-term core or water restoration services.
Roto-Rooter owns the rights to certain territories and contracts with independent third-parties to operate the territory under Roto-Rooter’s registered trademarks (“independent contractors”). Such contracts are for a specified term but cancellable by either party without penalty with 90 days’ advance notice. Under the terms of these arrangements, Roto-Rooter provides certain back office support and advertising along with a limited license to use Roto-Rooter’s registered trademarks. The independent contractor is responsible for all day-to-day management of the business including staffing decisions and pricing of services provided. All performance obligations of Roto-Rooter cease at the termination of the arrangement.
Independent contractors pay Roto-Rooter a standard fee calculated as a percentage of their cash collection from weekly sales. The primary value for the independent contractors under these arrangements is the right to use Roto-Rooter’s registered trademarks. Roto-Rooter recognizes revenue from independent contractors over-time (weekly) as the independent contractor’s labor sales are completed and payment from customers are received. Payment from independent contractors is also received on a weekly basis. The use of Roto-Rooter’s registered trademarks and advertising provides immediate value to the independent contractor as a result of Roto-Rooter’s nationally recognized brand. Therefore, over-time recognition provides the most faithful depiction of the transfer of services as the customer simultaneously receives and consumes the benefits provided. There is no significant variable consideration related to these arrangements.
Roto-Rooter has licensed the rights to operate under Roto-Rooter’s registered trademarks in other territories to franchisees. Each such contract is for a 10 year term but cancellable by Roto-Rooter for cause with 60 day advance notice without penalty. The franchisee may cancel the contract for any reason with 60 days advance notice without penalty. Under the terms of the contract, Roto-Rooter provides national advertising and consultation on various aspects of operating a Roto-Rooter business along with the right to use Roto-Rooter’s registered trademarks. The franchisee is responsible for all day-to-day management of the business including staffing decisions, pricing of services provided and local advertising spend and placement. All performance obligations of Roto-Rooter cease at the termination of the arrangement.
Franchisees pay Roto-Rooter a standard monthly fee based on the population within the franchise territory. The standard fee is revised on a yearly basis based on changes in the Consumer Price Index for All Urban Consumers. The primary value for the franchisees under this arrangement is the right to use Roto-Rooter’s registered trademarks. Roto-Rooter recognizes revenue from franchisees over-time (monthly). Payment from franchisees is also received on a monthly basis. The use of Roto-Rooter’s registered trademarks and advertising provides immediate value to the franchisees as a result of Roto-Rooter’s nationally recognized brand. Therefore, over-time recognition provides the most faithful depiction of the transfer of services as the customer simultaneously receives and consumes the benefits provided. There is no significant variable consideration related to these arrangements.
The composition of disaggregated revenue for the second quarter is as follows (in thousands):
June 30,
Drain cleaning
57,501
55,557
Plumbing
47,901
45,284
Excavation
61,563
56,493
272
187
Subtotal - short term core
167,237
157,521
Water restoration
46,857
49,824
Independent contractors
17,118
17,449
Franchisee fees
1,443
1,405
4,297
4,783
Gross revenue
236,952
230,982
Implicit price concessions and credit memos
(7,042)
(8,385)
229,910
222,597
The composition of disaggregated revenue for the first six months is as follows (in thousands):
117,235
115,099
97,485
91,344
125,073
120,731
376
340,294
327,550
94,706
103,987
34,884
35,811
2,964
2,828
9,386
9,678
482,234
479,854
(14,828)
(17,713)
467,406
462,141
3. Segments
Our segments include the VITAS segment and the Roto-Rooter segment, which comprise the structure used by our President and Chief Executive Officer, who has been determined to be our Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. Relative contributions of each segment to service revenues and sales for the second quarter of 2026 were 66% and 34%, respectively, compared to the second quarter of 2025 which were 64% and 36%, respectively. Relative contributions of each segment to service revenues and sales for the first six months of 2026 were 65% and 35%, respectively, compared to the first six months of 2025 which were 63% and 37%, respectively. The vast majority of our service revenues and sales from continuing operations are generated from business within the United States. Service revenues and sales by business segment are shown in Note 2.
The reportable segments have been defined along service lines, which is consistent with the way the businesses are managed. In determining reportable segments, the RRSC and RRC operating units of the Roto-Rooter segment have been aggregated on the basis of possessing similar operating and economic characteristics. The characteristics of these operating segments and the basis for aggregation are reviewed annually.
We report corporate administrative expenses and unallocated investing and financing income and expense not directly related to either segment as “Corporate”. Corporate administrative expense includes the stewardship, accounting and reporting, legal, tax and other costs of operating a publicly held corporation. Corporate investing and financing income and expenses include the costs and income associated with corporate debt and investment arrangements.
Our CODM evaluates the segments’ operating performance based mainly on income/(loss) from operations. For each segment, the CODM compares segment income/(loss) from operations in the annual budgeting and monthly forecasting process to actual results.
The CODM considers variances on a monthly basis for evaluating performance of each segment and making decisions about allocating resources to each segment.
Segment data for the three months ended June 30, 2026 are as follows (in thousands):
Reportable
Chemed
Segments
Corporate
Consolidated
Cost of services provided and goods sold
(excluding depreciation)
Wages
254,425
78,661
333,086
Patient care expense
47,108
Other expenses
36,158
35,428
71,586
Total cost of services provided and goods sold
337,691
114,089
Selling, general and administrative expense
17,959
22,660
40,619
5,325
45,944
Advertising
21,793
Stock compensation
11,300
8,146
22,920
31,066
5,100
36,166
Total selling, general and administrative expense
26,105
67,373
93,478
21,725
5,781
8,474
14,255
12
27
2,692
28
50
369,632
192,678
562,310
21,737
Income/(loss) from operations
73,709
37,232
110,941
(21,737)
(54)
(185)
(239)
(1,550)
Intercompany interest income/(expense)
6,480
4,575
11,055
(11,055)
66
10
76
3,838
Income/(expense) before income taxes
80,201
41,632
121,833
(30,504)
(19,290)
(9,719)
(29,009)
5,383
Net income/(loss)
60,911
31,913
92,824
(25,121)
Additions to long-lived assets
6,579
21,962
28,541
28,545
Segment data for the three months ended June 30, 2025 are as follows (in thousands):
241,805
75,704
317,509
41,008
37,831
37,757
75,588
320,644
113,461
16,757
21,018
37,775
2,748
40,523
18,943
10,069
8,328
20,575
28,903
1,885
30,788
25,085
60,536
85,621
14,702
5,314
8,363
2,545
Other operating expense/(income)
55
(29)
351,124
184,876
536,000
14,714
45,077
37,721
82,798
(14,714)
(47)
(129)
(176)
(267)
5,454
3,970
9,424
(9,424)
61
23
84
3,390
50,545
41,585
92,130
(21,015)
(12,326)
(9,671)
(21,997)
3,375
38,219
31,914
70,133
(17,640)
7,060
8,745
15,805
15,810
Segment data for the first six months ended June 30, 2026 are as follows (in thousands):
498,530
160,333
658,863
92,953
71,674
70,039
141,713
663,157
230,372
35,195
45,545
80,740
10,004
90,744
43,833
22,055
17,018
45,924
62,942
9,950
72,892
52,213
135,302
187,515
42,009
11,693
16,853
28,546
24
53
5,236
80
(9)
71
(1)
727,196
387,754
1,114,950
42,032
136,162
79,652
215,814
(42,032)
(104)
(321)
(425)
(1,876)
12,717
9,088
21,805
(21,805)
161
186
8,502
148,936
88,444
237,380
(57,211)
(35,818)
(20,747)
(56,565)
10,401
113,118
67,697
180,815
(46,810)
13,322
53,057
66,379
66,404
Segment data for the first six months ended June 30, 2025 are as follows (in thousands):
476,978
153,176
630,154
81,387
75,086
78,008
153,094
633,451
231,184
34,284
42,204
76,488
7,479
83,967
37,112
21,817
17,340
43,868
61,208
1,806
63,014
51,624
123,184
174,808
31,102
10,509
16,601
27,110
52
5,091
119
(42)
695,755
376,018
1,071,773
31,126
107,845
86,123
193,968
(31,126)
(95)
(261)
(356)
(416)
10,750
7,900
18,650
(18,650)
110
32
142
4,577
118,610
93,794
212,404
(45,615)
(30,361)
(21,936)
(52,297)
9,758
88,249
71,858
160,107
(35,857)
11,384
18,186
29,570
29,575
Identifiable assets by segment are as follows (in thousands):
December 31,
796,653
784,927
584,356
528,587
Reportable segments
1,381,009
1,313,514
198,576
224,675
Chemed consolidated
4. Earnings per Share
Earnings per share (“EPS”) are computed using the weighted average number of shares of capital stock outstanding. Earnings and diluted earnings per share are computed as follows (in thousands, except per share data):
Net Income
For the Three Months Ended June 30,
Income
Shares
Earnings per Share
Dilutive stock options
Nonvested stock awards
Diluted earnings
For the Six Months Ended June 30,
19
88
39
For the three and six months ended June 30, 2026, there were 1.3 million stock options excluded from the computation of dilutive earnings per share because they would have been anti-dilutive.
For the three and six months ended June 30, 2025, there were 336,000 stock options excluded from the computation of dilutive earnings per share because they would have been anti-dilutive.
5. Long-Term Debt and Lines of Credit
On April 10, 2026, we replaced our existing credit facility (the “Prior Credit Agreement”) with a sixth amended and restated Credit Agreement (“Credit Agreement”). Terms of the Credit Agreement consist of a five-year $450.0 million revolving credit facility including $100.0 million for letters of credit. This Credit Agreement has a floating interest rate that is the secured overnight financing rate (“SOFR”) plus an additional tiered rate which varies based on our current leverage ratio. As of June 30, 2026, the interest rate is SOFR plus 100 basis points. The Credit Agreement includes an expansion feature that provides the Company the opportunity to increase its revolver by an additional $250.0 million.
The long-term debt outstanding under the Credit Agreement as of June 30, 2026 is $140.0 million.
The Credit Agreement contains the following quarterly financial covenants:
Description
Requirement
Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA)
< 3.50 to 1.00
Interest Coverage Ratio (Consolidated Adj. EBITDA/Consolidated Interest Expense)
> 3.00 to 1.00
We were in compliance with all debt covenants as of June 30, 2026. We have issued $47.3 million in standby letters of credit as of June 30, 2026, mainly for insurance purposes. Issued letters of credit reduce our available credit under the Credit Agreement. As of June 30, 2026, we had approximately $262.7 million of unused lines of credit available and eligible to be drawn down under the Credit Agreement.
6. Other Income – Net
Other income – net comprises the following (in thousands):
Market value adjustment on assets held in deferred compensation trust
3,699
918
7,584
Interest income
214
2,555
1,104
4,631
1
Total other income - net
7. Leases
Chemed and each of its operating subsidiaries are service companies. As such, real estate leases comprise the largest lease obligation (and conversely, right of use asset) in our lease portfolio. VITAS has leased office space, as well as space for inpatient units (“IPUs”) and/or contract beds within hospitals. Roto-Rooter mainly has leased office space. Our leases have remaining terms of under 1 year to 12 years, some of which include options to extend the lease for up to 5 years, and some of which include options to terminate the lease within 1 year.
Roto-Rooter purchases equipment and leases it to certain of its independent contractors. We analyzed these leases in accordance with ASC 842 and determined they are operating leases. As a result, Roto-Rooter capitalizes the equipment underlying these leases, depreciates the equipment and recognizes rental income.
We do not currently have any finance leases, therefore all lease information disclosed is related to operating leases.
The components of balance sheet information related to leases were as follows:
December 31,
Assets
Operating lease assets
Liabilities
Current operating leases
Noncurrent operating leases
Total operating lease liabilities
154,793
143,759
The components of lease expense for the second quarter are as follows (in thousands):
Lease Expense (a)
Operating lease expense
17,419
17,110
Sublease income
(25)
(30)
Net lease expense
17,394
17,080
The components of lease expense for the first six months are as follows (in thousands):
34,634
33,971
(56)
(66)
34,578
33,905
(a)Includes short-term leases and variable lease costs, which are immaterial. Included in both cost of services provided and goods sold and selling, general and administrative expenses.
The components of cash flows information related to leases were as follows:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from leases
28,383
27,472
Leased assets obtained in exchange for new operating lease liabilities
36,108
29,056
Weighted Average Remaining Lease Term at June 30, 2026
Operating leases
4.85
years
Weighted Average Discount Rate at June 30, 2026
4.27
Maturity of Operating Lease Liabilities (in thousands)
28,516
2027
41,269
2028
32,668
2029
26,332
2030
18,607
Thereafter
25,380
Total lease payments
172,772
Less: interest
(17,979)
Total liability recognized on the balance sheet
For leases commencing prior to April 2019, minimum rental payments exclude payments to landlords for real estate taxes and common area maintenance. Operating lease payments include $10.6 million related to extended lease terms that are reasonably certain of being exercised and exclude $485,000 of lease payments for leases signed but not yet commenced.
8. Stock-Based Compensation Plans
On February 13, 2026, the Compensation/Incentive Committee of the Board of Directors (“CIC”) granted 8,400 Performance Stock Units (“PSUs”) that vest contingent upon the achievement of certain total shareholder return (“TSR”) targets as compared to the TSR of a group of peer companies for the three-year period ending December 31, 2028, the date at which such awards vest. The cumulative compensation cost of the TSR-based PSU award to be recorded over the three-year service period is $5.2 million.
On February 13, 2026, the CIC also granted 8,400 PSUs that vest contingent upon the achievement of certain earnings per share (“EPS”) targets for the three-year period ending December 31, 2028. At the end of each reporting period, the Company estimates the number of shares that it believes will ultimately be earned and records the corresponding expense over the service period of the award. We currently estimate the cumulative compensation cost of the EPS-based PSUs to be recorded over the three-year service period is $3.9 million.
9. Retirement Plans
All of the Company’s plans that provide retirement and similar benefits are defined contribution plans. These expenses include the impact of market gains and losses on assets held in deferred compensation plans and are recorded in selling, general and administrative expenses. Net gains for the Company’s retirement and profit-sharing plans, excess benefit plans and other similar plans are as follows (in thousands):
9,597
5,731
19,521
11,090
10. Legal and Regulatory Matters
The VITAS segment of the Company’s business operates in a heavily-regulated industry. As a result, the Company is subjected to inquiries and investigations by various government agencies, which can result in penalties including repayment obligations, funding withholding, or debarment, as well as to lawsuits, including qui tam actions. The following describes the material lawsuits and investigations of which the Company is currently aware.
Regulatory Matters and Litigation
VITAS was one of a group of hospice providers selected by the Office of the Inspector General’s (“OIG”) Office of Audit Services (“OAS”) for inclusion in an audit of the provision of elevated level-of-care hospice services, which reviewed 100 out of a total population of 50,850 inpatient and continuous care claims.
On August 29, 2022, VITAS received a demand letter from its Medicare Administrative Contractor (“MAC”) seeking repayment of $50.3 million. VITAS appealed the overpayment decision and deposited $50.3 million under the “Immediate Recoupment” process.
On February 3, 2025, an Administrative Law Judge (“ALJ”) ruled that VITAS’ care met Medicare’s hospice standards for the applicable higher level of care as originally billed for all but one of the claims appealed, and therefore VITAS was entitled to receive payment for all such claims. With respect to the one claim that the judge did not fully side with VITAS, the judge found that four of the five days billed met the applicable standard and only one day did not.
In a letter dated March 18, 2025, VITAS’ MAC provided notice that due to the ALJ’s ruling the total overpayment amount was reduced to a de minimis amount, and on April 1, 2025 refunded VITAS all previously unreturned deposited amounts in excess of that dollar figure.
As a result of the previously disclosed cybersecurity incident and data breach on October 24, 2025, multiple class action lawsuits were filed against VITAS alleging various causes of action and seeking damages resulting from the breach. All outstanding cases have been consolidated and the Company has reached an agreement to settle them for a non-material amount fully covered by VITAS’ cybersecurity insurance.
Regardless of the outcome of the preceding matters, dealing with the various regulatory agencies and opposing parties can adversely affect us through defense costs, potential payments, withholding of governmental funding, diversion of management time, and related publicity.
11. Concentration of Risk
As of June 30, 2026, and December 31, 2025, approximately 58% of VITAS’ total accounts receivable balance were from Medicare and 36% and 34% respectively, of VITAS’ total accounts receivable balance were due from various state Medicaid or managed Medicaid programs. Combined accounts receivable from Medicare, Medicaid, and managed Medicaid represent approximately 76% of the consolidated net accounts receivable in the accompanying consolidated balance sheets as of June 30, 2026.
VITAS has a pharmacy services contract with one service provider for specified pharmacy services related to its hospice operations. Similarly, VITAS obtains the majority of its medical supplies from a single vendor. A large majority of VITAS’ pharmaceutical and medical supplies purchases are from these vendors. The pharmaceutical and medical supplies purchased by VITAS are available through many providers in the United States. However, a disruption from VITAS’ main service providers could adversely impact VITAS’ operations, including temporary logistical challenges and increased cost associated with getting medication and medical supplies to our patients.
12. Cash Overdrafts and Cash Equivalents
There is $34.3 million in cash overdrafts payable included in accounts payable at June 30, 2026. There were $11.0 million of cash overdrafts payable included in accounts payable at December 31, 2025.
From time to time throughout the year, we invest excess cash in money market funds with major commercial banks. We closely monitor the creditworthiness of the institutions with which we invest our overnight funds. In 2023, Chemed began investing excess cash in money market funds holding US Treasuries. Deposits and withdrawals are made daily, based on the Company’s excess cash balance. There are no penalties associated with withdrawals. The accounts bear interest at a normal market rate.
13. Financial Instruments
FASB’s authoritative guidance on fair value measurements defines a hierarchy which prioritizes the inputs in fair value measurements. Level 1 measurements are measurements using quoted prices in active markets for identical assets or liabilities. Level 2 measurements use significant other observable inputs. Level 3 measurements are measurements using significant unobservable inputs which require a company to develop its own assumptions. In recording the fair value of assets and liabilities, companies must use the most reliable measurement available.
The following shows the carrying value, fair value, and the hierarchy for our financial instruments as of June 30, 2026 (in thousands):
Fair Value Measure
Carrying Value
Quoted Prices in Active Markets for Identical Assets (Level 1)
Significant Other Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
Cash equivalents
35,064
The following shows the carrying value, fair value and the hierarchy for our financial instruments as of December 31, 2025 (in thousands):
94,273
For cash, accounts receivable and accounts payable, the carrying amount is a reasonable estimate of fair value because of the liquidity and short-term nature of these instruments. As further described in Note 5, our outstanding long-term debt has a floating interest rate that is reset at short-term intervals, generally 30 or 60 days. The interest rate we pay also includes an additional amount based on our current leverage ratio. As such, we believe our borrowings reflect significant nonperformance risks, mainly credit risk. Based on these factors, we believe the fair value of our long-term debt approximates its carrying value.
14. Capital Stock Repurchase Plan Transactions
We repurchased the following capital stock:
Total cost of repurchased shares (in thousands)
89,839
42,945
287,521
72,701
Shares repurchased
210,000
75,000
710,000
125,000
Weighted average price per share
427.81
572.61
404.96
581.62
In February 2026, the Board of Directors authorized $300.0 million for additional stock repurchases under Chemed’s existing share repurchase program. We currently have $139.8 million of authorization remaining under this share repurchase plan.
15. Acquisitions
On March 31, 2026, Roto-Rooter completed two acquisitions, for one franchise in Texas for $17.36 million in cash and one franchise in California for $3.25 million in cash. On April 15, 2026, Roto-Rooter completed an acquisition for one franchise in New York for $930,000 in cash. On June 8, 2026, Roto-Rooter completed an acquisition for one franchise in Texas for $12.0 million in cash.
On January 3, 2025, Roto-Rooter completed the acquisition of one franchise in Michigan for $225,000 in cash.
Revenue and net income from acquisitions made in 2026 and 2025 are not material.
Goodwill is assessed for impairment on a yearly basis as of October 1. The primary factor that contributed to the purchase price resulting in the recognition of goodwill is operational efficiencies expected as a result of integrating the operations of the acquisitions into the organizational structure. All goodwill recognized is deductible for tax purposes.
Shown below is movement in Goodwill (in thousands):
404,866
262,133
Business combinations
32,439
Foreign currency adjustments
(40)
294,532
16. Recent Accounting Standards
In November 2024, the FASB issued Accounting Standards Update “ASU 2024-03 – Disaggregation of Income Statement Expenses”. The guidance provides enhanced disclosures about commonly presented expense categories such as cost of sales, selling, general and administrative expenses and research and development. The objective is to provide investors with a better understanding of the entity’s performance, assess potential future cash flows and comparability with other entities. The guidance is effective for fiscal periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently analyzing the impact of the ASU on the current footnote disclosures.
In September 2025, the FASB issued Accounting Standards Update “ASU 2025-06 – Intangibles – Goodwill and Other – Internal – Use Software”. The guidance seeks to modernize the accounting guidance for the costs to develop software for internal use. The guidance amends the existing standard to better align with current software development methods. Entities will start capitalizing eligible costs when management has authorized and committed to funding software projects and when it is probable that the projects will be completed and used as intended. The guidance is effective for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods. The Company is currently analyzing the impact of the ASU on the consolidated financial statements.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Executive Summary
We operate through our two wholly-owned subsidiaries, VITAS Healthcare Corporation and Roto-Rooter Group, Inc. VITAS focuses on hospice care that helps make terminally ill patients’ final days as comfortable as possible. Through its teams of doctors, nurses, home health aides, social workers, clergy and volunteers, VITAS provides direct medical services to patients, as well as spiritual and emotional counseling to both patients and their families. Roto-Rooter’s services are focused on providing plumbing, drain cleaning, excavation, water restoration, and other related services to both residential and commercial customers. Through its network of company-owned branches, independent contractors and franchisees, Roto-Rooter offers plumbing and drain cleaning service to over 90% of the U.S. population.
The vast majority of the Company’s operations are located in the United States. As both operations are service companies, our employees are the most critical resource of the Company. We have very little exposure related to customers, vendors, or employees in other regions of the world. We continue to monitor macroeconomic trends and uncertainties such as inflation, the effects of recently implemented tariffs, and the potential imposition of modified or additional tariffs, as well as the impact of the war with Iran on fuel prices, which may have adverse effects on net sales and profitability. Based on preliminary analysis of the potential effects of the announced tariffs and these other factors, we do not expect a material negative effect on our net sales or profitability for the remainder of fiscal year 2026. However, we are continuing to evaluate these factors and their potential effects as well as our ability to potentially offset all or a portion of cost increases through pricing actions and cost savings efforts for fiscal year 2027 planning. Economic pressures including the challenges of high inflation and the effects of increased tariffs and the impact of the war with Iran may negatively affect our net sales and profitability in the future.
The following is a summary of the key operating results (in thousands except per share amounts):
Diluted EPS
Adjusted net income
80,039
62,721
157,421
145,796
Adjusted diluted EPS
6.06
11.71
9.90
Adjusted EBITDA
121,806
95,331
238,062
217,023
Adjusted EBITDA as a % of revenue
18.1
15.4
17.9
17.1
Adjusted net income, adjusted diluted EPS, earnings before interest, taxes and depreciation and amortization (“EBITDA”), Adjusted EBITDA and Adjusted EBITDA as a percent of revenue are not measures derived in accordance with US GAAP. We provide non-GAAP measures to help readers evaluate our operating results and to compare our operating performance with that of similar companies that have different capital structures. Our non-GAAP measures should not be considered in isolation or as a substitute for comparable measures presented in accordance with GAAP. A reconciliation of our non-GAAP measures is presented on pages 37-39.
For the three months ended June 30, 2026, the increase in consolidated service revenues and sales was driven by an 11.9 % increase at VITAS and a 3.3% increase at Roto-Rooter. The increase in service revenues at VITAS is comprised primarily of 6.1% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.4%. Acuity mix shift negatively impacted revenue growth by 115-basis points in the quarter when compared to the prior year quarter’s revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes increased revenue growth by 455-basis points. The increase in service revenues at Roto-Rooter was driven by an increase in plumbing, drain cleaning and excavation offset by a decrease in water restoration.
For the six months ended June 30, 2026, the increase in consolidated service revenues and sales was driven by a 7.4% increase at VITAS and by a 1.1% increase at Roto-Rooter. The increase in service revenues at VITAS is comprised primarily of 4.2% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.5%. Acuity mix shift negatively impacted revenue growth by 120-basis points in the year when compared to the prior year’s revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes increased revenue growth by 190-basis points. The increase in service revenues at Roto-Rooter was driven by an increase in plumbing, drain cleaning and excavation offset by a decrease in water restoration.
Financial Condition
Liquidity and Capital Resources
Material changes in the balance sheet accounts from December 31, 2025 to June 30, 2026 include the following:
A $6.1 million increase in accounts receivable due to the timing of payments. Other significant changes in our accounts receivable balances are typically driven by the timing of payments received from the Federal government at our VITAS subsidiary. We typically receive a payment in excess of $63.0 million from the Federal government for hospice services every other Friday. The timing of a period end will have a significant impact on the accounts receivable at VITAS. These changes generally normalize over a two-year period, as cash flow variations in one year are offset in the following year.
A $10.3 million increase in prepaid expenses due to prepaid insurance premiums paid in the second quarter.
A $11.4 million increase in lease right of use asset due to lease renewals. This resulted in a similar increase in the lease liability accounts.
A $32.4 million increase in goodwill due to four acquisitions at Roto-Rooter.
A $20.3 million increase in accounts payable due to timing of payments.
A $10.8 million increase in the liability of deferred compensation plans due mainly to market valuation gains. This resulted in a similar increase in the assets associated with deferred compensation plans.
A $140.0 million increase in long-term debt due primarily to acquisitions and stock repurchases.
A $291.9 million increase in treasury stock due to stock repurchases.
Net cash provided by operating activities increased $1.7 million from June 30, 2025 to June 30, 2026. See the Unaudited Consolidated Statements of Cash Flows on page 5 for the detail components making up the change.
Management continually evaluates cash utilization alternatives, including share repurchase, debt repurchase, acquisitions and increased dividends to determine the most beneficial use of available capital resources.
We anticipate that our operating income and cash flows will be sufficient to operate our business and meet any commitments for the foreseeable future.
Commitments and Contingencies
On April 10, 2026, we replaced the Prior Credit Agreement with a sixth amended and restated Credit Agreement. Terms of the Credit Agreement consist of a five-year $450.0 million revolving credit facility including $100.0 million for letters of credit. This Credit Agreement has a floating interest rate that is generally the secured overnight financing rate (“SOFR”) plus an additional tiered rate which varies based on our current leverage ratio. As of June 30, 2026, the interest rate is SOFR plus 100 basis points. The Credit Agreement includes an expansion feature that provides the Company the opportunity to increase its revolver by an additional $250.0 million.
We have issued $47.3 million in standby letters of credit as of June 30, 2026, mainly for insurance purposes. Issued letters of credit reduce our available credit under the Credit Agreement. As of June 30, 2026, we have approximately $262.7 million of unused lines of credit available and are eligible to be drawn down under the Credit Agreement. Management believes its liquidity and sources of capital are satisfactory for the Company’s needs in the foreseeable future.
Collectively, the terms of the Credit Agreement require us to meet various financial covenants, to be tested quarterly. We are in compliance with all financial and other debt covenants as of June 30, 2026.
We are subject to various lawsuits and claims in the normal course of our business. In addition, we periodically receive communications from governmental and regulatory agencies concerning compliance with Medicare and Medicaid billing requirements at our VITAS subsidiary. We establish reserves for specific, uninsured liabilities in connection with regulatory and legal action that we deem to be probable and estimable. We disclose the existence of regulatory and legal actions when we believe it is reasonably possible that a loss could occur in connection with the specific action. In most instances, we are unable to make a reasonable estimate of any reasonably possible liability due to the uncertainty of the outcome and stage of litigation. We record legal fees associated with legal and regulatory actions as the costs are incurred.
See Note 10 in the Notes to the Unaudited Consolidated Financial Statements in Item 1 above for a description of current material legal matters.
Results of Operations
Three months ended June 30, 2026 versus 2025 - Consolidated Results
Our service revenues and sales for the second quarter of 2026 increased 8.8% versus services revenue and sales for the second quarter of 2025. Of this increase, a $47.1 million increase was attributable to VITAS, and a $7.3 million increase at Roto-Rooter. The following chart shows the components of revenue by operating segment (in thousands):
Increase/(Decrease)
Percent
Routine homecare
9.3
General inpatient
8.0
(18.0)
7.7
96.9
Room and board - net
(1.2)
(21.6)
11.9
3.5
5.8
9.0
45.5
6.2
(6.0)
(1.9)
Outside franchisee fees
2.7
(10.2)
2.6
16.0
3.3
Total Revenues
8.8
Days of care at VITAS during the quarters were as follows:
1,792,360
1,662,455
7.8
Nursing home
303,053
307,158
(1.3)
Respite
12,307
11,440
7.6
Subtotal routine homecare and respite
2,107,720
1,981,053
6.4
29,703
28,213
5.3
18,094
21,647
(16.4)
Total days of care
2,155,517
2,030,913
6.1
The increase in service revenues at VITAS is comprised primarily of 6.1% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.4%. Acuity mix shift negatively impacted revenue growth by 115-basis points in the quarter when compared to the prior year revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes increased revenue growth by 455-basis points.
The increase in plumbing revenues for the second quarter of 2026 versus 2025 is attributable to a 10.1% increase in price and service mix shift offset by a 4.3% decrease in job count. The increase in drain cleaning revenues for the second quarter of 2026 versus 2025 is attributable to a 6.5% increase in price and service mix offset by a 3.0% decrease in job count. The increase in excavation
revenues for the second quarter of 2026 versus 2025 is attributable to a 5.5% increase in price and service mix shift and by a 3.5% increase in job count. Water restoration revenues decreased 6.0%, and contractors operations decreased 1.9%. Implicit price concessions and credit memos decreased 16.0% mainly related to the water restoration business.
The consolidated gross margin was 32.9% in the second quarter of 2026 as compared with 29.8% in the second quarter of 2025. On a segment basis, VITAS’ gross margin was 23.8% in the second quarter of 2026 as compared with 19.1% in the second quarter of 2025. The increase was primarily related to increased revenues including a $15.9 million decrease in Medicare Cap billing limitation in the second quarter of 2026 compared to second quarter of 2025. The Roto-Rooter segment’s gross margin was 50.4% for the second quarter of 2026 compared with 49.0% in the second quarter of 2025.
Selling, general and administrative expenses (“SG&A”) comprise (in thousands):
SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation trusts
109,256
98,552
Impact of market value adjustments related to assets held in deferred compensation trusts
Long-term incentive compensation
2,248
853
Total SG&A expenses
SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation trusts for the second quarter of 2026 were up 10.9% when compared to the second quarter of 2025. Of this increase $2.9 million was the result of increased advertising at Roto-Rooter in the second quarter of 2026 compared to the second quarter of 2025. The remaining increase was the result of increased legal expenses of $1.3 million mainly at VITAS, normal salary increases and increased incentive compensation.
Other income – net comprise (in thousands):
Market value adjustment on assets held in deferred compensation trusts
We invest excess cash in money market funds with major commercial banks. We closely monitor the creditworthiness of the institutions with which we invest our overnight funds. Chemed invests excess cash in money market funds holding US Treasuries. Deposits and withdrawals are made daily, based on the Company’s excess cash balance. There are no penalties associated with withdrawals. The accounts bear interest at a normal market rate.
Net income for both periods included the following after-tax items/adjustments that (reduced) or increased after-tax earnings (in thousands):
Legal settlements
(415)
Acquisition expense
(6)
Amortization of reacquired franchise agreements
(1,804)
(1,806)
(46)
(7,604)
(7,696)
(2,016)
(776)
Excess tax (expenses)/benefit on stock compensation
(445)
(12,336)
(10,228)
Three months ended June 30, 2026 versus 2025 - Segment Results
Net income/(loss) for the second quarter of 2026 versus the second quarter of 2025 by segment (in thousands):
After-tax earnings as a percent of revenue at VITAS in the second quarter of 2026 was 13.7% as compared to 9.6% in the second quarter of 2025. VITAS’ after-tax earnings increased primarily due to increased revenues including a $15.9 million decrease in Medicare Cap liability in the second quarter of 2026 compared to the second quarter of 2025.
Roto-Rooter’s net income was essentially flat when compared with the same quarter of 2025 but was negatively impacted by an increase in marketing expenses. Roto-Rooter’s after-tax earnings as a percent of revenue in the second quarter of 2026 was 13.9%, as compared to 14.3% in the second quarter of 2025.
After-tax Corporate expenses for the second quarter of 2026 increased 42.4% when compared to the second quarter in 2025 due primarily to a $2.3 million decrease in interest income related to lower cash and investment balances and a $1.3 million increase in interest expense related to an increase in long-term debt as a result of stock repurchases and Roto-Rooter acquisitions, a $1.6 million increase in intercompany interest expense, a $1.1 million increase in stock-based compensation and a $495,000 decrease in excess tax benefit related to reduced stock option exercises.
Six months ended June 30, 2026 versus 2025 - Consolidated Results
Our service revenues and sales for the first six months of 2026 increased 5.1% versus services revenue and sales for the first six months of 2025. Of this increase, a $59.8 million increase was attributable to VITAS, and a $5.3 million increase at Roto-Rooter. The following chart shows the components of revenue by operating segment (in thousands):
7.4
6.8
(22.3)
5.7
84.6
3.0
(57.4)
1.9
6.7
3.6
33.2
3.9
(8.9)
(2.6)
4.8
(3.0)
0.5
16.3
1.1
5.1
Days of care at VITAS during the six months ended June 30 were as follows:
3,483,979
3,295,024
597,871
614,266
(2.7)
23,182
21,435
8.2
4,105,032
3,930,725
4.4
60,177
57,917
35,382
44,267
(20.1)
4,200,591
4,032,909
4.2
The increase in service revenues at VITAS is comprised primarily of 4.2% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.5%. Acuity mix shift negatively impacted revenue growth by 120-basis points in the year when compared to the prior year revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes increased revenue growth by 190-basis points.
The increase in plumbing revenues for the first six months of 2026 versus 2025 is attributable to a 12.0% increase in price and service mix shift offset by a 5.3% decrease in job count. The increase in drain cleaning revenues for the first six months of 2026 versus 2025 is attributable to a 9.5% increase in price and service mix offset by a 7.6% decrease in job count. The increase in excavation
revenues for the first six months of 2026 versus 2025 is attributable to an 8.3% increase in price and service mix shift offset by a 4.7% decrease in job count. Water restoration revenues decreased 8.9%, and contractors operations decreased 2.6%. Implicit price concessions and credit memos decreased 16.3% mainly related to the water restoration business.
The consolidated gross margin was 32.9% in the first six months of 2026 as compared with 31.7% in the first six months of 2025. On a segment basis, VITAS’ gross margin was 23.2% in the first six months of 2026 as compared with 21.2% in the first six months of 2025. The increase was primarily related to increased revenues including a $15.8 million decrease in Medicare Cap billing limitation in the first six months of 2026 compared to the first six months of 2025. The Roto-Rooter segment’s gross margin was 50.7% for the first six months of 2026 which was almost equal to the first six months of 2025.
218,187
202,312
3,753
3,510
SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation trusts for the first six months of 2026 were up 7.8% when compared to the first six months of 2025. $6.7 million of this increase was the result of increased advertising at Roto-Rooter in the first six months of 2026 compared to the first six months of 2025. The remaining increase was the result of increased legal expense of $2.5 million mainly at VITAS, normal salary increases and increased incentive compensation.
Net income for both periods include the following after tax items/adjustments that (reduce) or increased after tax earnings (in thousands):
(3,608)
(3,613)
(173)
(15,354)
(15,317)
(3,359)
(3,129)
Excess tax (expenses)/benefits on stock compensation
(501)
513
(23,416)
(21,546)
Six months ended June 30, 2026 versus 2025 - Segment Results
Net income/(loss) for the first six months of 2026 versus the first six months of 2025 by segment (in thousands):
After-tax earnings as a percent of revenue at VITAS in the first six months of 2026 was 13.1% as compared to 11.0% in the first six months of 2025. The increase was primarily related to increased revenues including a $15.8 million decrease in Medicare Cap liability in the first six months of 2026 compared to the first six months of 2025.
Roto-Rooter’s net income was negatively impacted in the first six months of 2026 compared to the first six months of 2025 due mainly to an increase in marketing expenses. Roto-Rooter’s after-tax earnings as a percent of revenue in the first six months of 2026 was 14.5%, as compared to 15.5% in the first six months of 2025.
After-tax Corporate expenses for the first six months of 2026 increased 30.5% when compared to the first six months in 2025 due primarily to a $3.5 million decrease in interest income related to lower cash and investment balances and a $1.5 million increase in interest expense related to an increase in long-term debt as a result of stock repurchases and Roto-Rooter acquisitions, a $3.2 million increase in intercompany interest expense, and a $1.0 million decrease in excess tax benefit related to reduced stock option exercises.
CONSOLIDATING STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2026
(in thousands)(unaudited)
2026 (a)
Other income—net
(a) The following amounts are included in net income (in thousands):
Pretax benefit/(cost):
(9,052)
(2,352)
(2,248)
(548)
(8)
(60)
(68)
(556)
(2,412)
(11,300)
(14,268)
After-tax benefit/(cost):
(52)
Excess tax expense on stock compensation
(421)
(1,850)
(10,065)
FOR THE THREE MONTHS ENDED JUNE 30, 2025
2025 (a)
(9,216)
(853)
(10,069)
(12,421)
Excess tax benefits on stock compensation
(8,422)
FOR THE SIX MONTHS ENDED JUNE 30, 2026
(18,302)
(4,704)
(3,753)
(226)
(234)
(4,930)
(22,055)
(27,541)
(179)
(3,781)
(19,214)
FOR THE SIX MONTHS ENDED JUNE 30, 2025
(18,307)
(3,510)
(21,817)
(26,521)
(17,933)
Unaudited Consolidating Summary and Reconciliation of Adjusted EBITDA
Chemed Corporation and Subsidiary Companies
For the three months ended June 30, 2026
Add/(deduct):
54
185
1,550
1,789
19,290
9,719
(5,383)
EBITDA
86,063
52,983
(28,942)
110,104
Intercompany interest expense/(income)
(6,480)
(4,575)
(10)
(138)
(214)
9,052
60
68
80,073
48,458
(6,725)
For the three months ended June 30, 2025
47
129
267
443
12,326
9,671
(3,375)
55,932
52,622
(20,736)
87,818
(5,454)
(3,970)
(61)
(23)
(2,472)
(2,556)
9,216
50,417
48,629
(3,715)
For the six months ended June 30, 2026
104
321
1,876
2,301
35,818
20,747
(10,401)
160,786
110,854
(55,311)
216,329
(12,717)
(9,088)
(162)
(917)
(1,104)
226
234
148,463
101,967
(12,368)
For the six months ended June 30, 2025
95
261
416
772
30,361
21,936
(9,758)
129,266
115,747
(45,175)
199,838
(10,750)
(7,900)
(110)
(33)
(4,489)
(4,632)
118,406
107,814
(9,197)
RECONCILIATION OF ADJUSTED NET INCOME
(in thousands, except per share data)(unaudited)
Net income as reported
Add/(deduct) pre-tax cost of:
2,352
4,704
Add/(deduct) tax impacts:
Tax impact of the above pre-tax adjustments (1)
(2,377)
(2,143)
(4,626)
(4,462)
Excess tax expense/(benefit) on stock compensation
Diluted Earnings Per Share As Reported
Adjusted Diluted Earnings Per Share
Adjusted average number of shares outstanding
(1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated.
OPERATING STATISTICS FOR VITAS SEGMENT
(unaudited)
OPERATING STATISTICS
Net revenue ($000)
Homecare
Inpatient
Contractual allowances
Medicare cap allowance
Net revenue as a percent of total before Medicare cap allowances
86.5
85.2
86.4
84.9
7.9
8.1
4.3
5.6
1.3
100.0
(0.9)
(1.1)
(0.8)
(0.1)
(3.9)
(0.3)
(2.2)
97.9
94.3
97.7
96.1
Days of care
Number of days in relevant time period
91
181
Average daily census (days)
19,697
18,269
19,249
18,205
3,330
3,303
3,394
135
126
128
118
23,162
21,770
22,680
21,717
326
310
333
320
199
238
195
244
23,687
22,318
23,208
22,281
Total Admissions
19,125
17,545
38,519
35,684
Total Discharges
18,167
17,845
36,704
35,583
Average length of stay (days)
101.2
137.1
101.9
127.9
Median length of stay (days)
20.0
15.0
18.0
ADC by major diagnosis
Cerebro
44.2
44.4
44.6
Neurological
11.1
12.1
11.2
12.2
Cancer
9.5
9.7
9.6
Cardio
16.6
16.2
16.5
16.1
Respiratory
7.5
7.3
10.6
10.1
10.2
Admissions by major diagnosis
27.3
26.7
27.1
27.6
7.1
7.2
7.0
24.7
26.6
24.1
15.2
14.9
15.5
11.8
10.7
13.9
14.2
Estimated uncollectible accounts as a percent of revenues
0.7
1.0
0.8
Accounts receivable --
Days of revenue outstanding- excluding unapplied Medicare payments
39.7
37.5
n.a.
Days of revenue outstanding- including unapplied Medicare payments
26.9
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Regarding Forward-Looking Information
Certain statements contained in this report are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe”, “expect”, “hope”, “anticipate”, “plan” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. These forward-looking statements are based on current expectations and assumptions and involve various known and unknown risks, uncertainties, contingencies and other factors, which could cause Chemed’s actual results to differ from those expressed in such forward-looking statements. Variances in any or all of the risks, uncertainties, contingencies, and other factors from our assumptions could cause actual results to differ materially from these forward-looking statements and trends. In addition, our ability to deal with the unknown outcomes of these events, many of which are beyond our control, may affect the reliability of projections and other financial matters. Investors are cautioned that such forward-looking statements are subject to inherent risk and there are no assurances that the matters contained in such statements will be achieved. Chemed does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The Company’s primary market risk exposure relates to interest rate risk exposure through its variable interest line of credit. At June 30, 2026, the Company has $140.0 million of variable rate debt outstanding. For each $10 million borrowed under the credit facility, an increase or decrease of 100 basis points (1%), increases or decreases the Company’s annual interest expense by $100,000.
The Company continually evaluates this interest rate exposure and periodically weighs the cost versus the benefit of fixing the variable interest rates through a variety of hedging techniques.
We carried out an evaluation, under the supervision of the Company’s President and Chief Executive Officer and with the participation of the Executive Vice President, Chief Financial Officer and Controller, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, the President and Chief Executive Officer and Executive Vice President, Chief Financial Officer and Controller have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report. There has been no change in our internal control over financial reporting that occurred during the quarter covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
For information regarding the Company’s legal proceedings, see Note 10, Legal and Regulatory Matters, under Part I, Item I of this Quarterly Report on Form 10-Q.
There have been no material changes from the risk factors previously disclosed in the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q.
Item 2(c). Purchases of Equity Securities by Issuer and Affiliated Purchasers
The following table shows the activity related to our share repurchase program for the first six months of 2026:
Total Number
Weighted Average
Cumulative Shares
Dollar Amount
of Shares
Price Paid Per
Repurchased Under
Remaining Under
Repurchased
Share
the Program
The Program
February 2011 Program
January 1 through January 31, 2026
12,161,858
127,282,674
February 1 through February 28, 2026 (1)
427,282,674
March 1 through March 31, 2026
500,000
395.36
12,661,858
229,601,903
First Quarter Total
April 1 through April 30, 2026
40,300
422.59
12,702,158
212,571,327
May 1 through May 31, 2026
109,700
424.12
12,811,858
166,045,452
June 1 through June 30, 2026
60,000
438.07
12,871,858
139,761,356
Second Quarter Total
(1) In February 2026, our Board of Directors authorized an additional $300.0 million under the February 2011 Repurchase Program.
None.
None.
Exhibit No.
Sixth Amended and Restated Credit Agreement
31.1
Certification by Kevin J. McNamara pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act of 1934.
31.2
Certification by Michael D. Witzeman pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act of 1934.
32.1
Certification by Kevin J. McNamara pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2
Certification by Michael D. Witzeman pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101
The following materials from Chemed Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) The Condensed Consolidated Balance Sheet, (ii) The Condensed Consolidated Statement of Income, (iii) The Condensed Consolidated Statement of Cash Flows, (iv) The Condensed Statement of Equity, and (v) Notes to the Condensed Consolidated Financial Statements.
The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, formatted in iXBRL and contained in Exhibit 101.
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Chemed Corporation
(Registrant)
Dated:
July 31, 2026
By:
/s/ Kevin J. McNamara
Kevin J. McNamara
(President and Chief Executive Officer)
/s/ Michael D. Witzeman
Michael D. Witzeman
(Executive Vice President, Chief Financial Officer and Controller)