AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 31/10/2026
Moat50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Nearly 5,200 referring nephrologists, local access tied to physician privileges and reported multiyear CMS quality leadership support a differentiated operating position. However, physicians also open competing units, and the company discloses opportunities for relatively easy entry. Durable exclusivity and superior relative costs are unproven.
durability · 2/4 · Reported leadership over eleven QIP reporting years and ten Star Rating reporting years supports persistence of clinical capability. These are issuer summaries of external measures, without quantified economic benefits. Potential referral losses and relatively easy entry prevent treating that history as demonstrated durable protection of returns.
customer dependency · 2/4 · Life-sustaining repeat treatment creates substantial service dependency, and proximity plus nephrologist privileges can anchor existing care relationships. Second-quarter 2026 normalized non-acquired treatment growth was 0.3%. These support repeat demand indirectly, but patients' need for dialysis does not establish provider-specific lock-in, and competing physician-owned facilities exist.
erosion resilience · 2/4 · First-half 2026 operating performance improved despite higher patient care costs per treatment and adverse commercial mix. Resilience is mixed: 2025 margins fell, and an actual supply disruption increased expenses and slowed home-dialysis growth. Continued operating strength has not demonstrated immunity to entry, reimbursement pressure or referral erosion.
Pricing power44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · U.S. dialysis revenue per treatment rose from $402.38 to $416.71 for the six months ended June 30, 2026, primarily from Medicare base-rate and other annual increases. Second-quarter revenue per treatment fell sequentially. Commercial realized-rate pressure and adverse payor mix limit evidence of discretionary pricing power.
retention · 2/4 · Recurring treatment need, physician-linked local access and 0.3% normalized non-acquired second-quarter 2026 treatment growth support repeat demand indirectly. Lower mortality helped census, while incoming transfers disappointed and missed treatments exceeded expectations. These observations support a mixed assessment without establishing a provider-specific retention rate or strong switching barriers.
margin resilience · 2/4 · First-half 2026 consolidated operating margin improved to 15.2% from 14.8%, despite higher U.S. dialysis care costs per treatment. However, 2025 operating margin declined to 15.0% from 16.3%, and the 2024 Medicare update failed to match experienced cost inflation. Results demonstrate mixed resilience, without isolating pricing's contribution.
contractual freedom · 1/4 · Government payment rates are established by statute or regulation. Medicare Advantage and commercial rates are negotiated, and some commercial contracts contain annual escalators. These provide limited flexibility, but quality adjustments and continued pressure on commercial realized rates show constrained bargaining freedom rather than broad authority to set reimbursement.
Predictability94
5 consecutive published annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 75.00
- Revenue growth volatility (pp)
- 2.52
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 1.42
- observedAnnualPeriods
- 5.00
Financial strength19
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or reported pretax profit plus reported gross interest expense. Reported EBIT is distinct from GAAP operating income and gross interest. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 2.31
- netDebtEbitGrade
- 6.08
- interestCoverageGrade
- 22.94
- currentRatioGrade
- 43.33
- Debt / FCF (x)
- 7.84
- Net debt / operating income (x)
- 4.70
- Interest coverage (x)
- 3.52
- Current ratio (x)
- 1.29
Capital allocation96
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or EBIT calculated from reported pretax profit plus reported gross interest expense; the issuer-reported EBIT is distinct from GAAP operating income and gross interest; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. ROIC remains undefined for nonpositive invested capital; the explicit asset-return alternative does not change the ROIC chart. Missing financial inputs alone never trigger an alternative. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 20.75
- 3-year average dilution (%)
- -7.14
- 3-year average SBC / revenue (%)
- 0.92
- cashConversionGrade
- 100.00
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · DaVita generated $1.887 billion of operating cash flow and reinvested $576 million in maintenance and development capital during 2025. Repurchases of $1.793 billion exceeded reported free cash flow of $1.024 billion alongside $820 million net borrowing. First-half 2026 cash generation improved, but substantial repurchases and additional net borrowing continued; superior allocation returns remain unproven.
incentive alignment · 3/4 · Actual 2025 awards were 60% performance-based with cumulative three-year measurement; prior PSUs vested at differing performance-dependent levels. Strategic shortfalls reduced payout eligibility, all NEOs met ownership requirements, and misconduct clawbacks apply. Strong design is tempered by heavy adjusted-EPS weighting and inclusion of vested in-the-money options in ownership compliance.
execution · 2/4 · First-half 2026 operating results and operating cash flow improved, and management reports continued care during the cyber incident. Missed 2025 cash-flow, home-modality and patient-contact targets, plus realized supply disruption, temper those achievements. This assessment partly relies on indirect operating evidence and the issuer's account of care continuity.
governance · 2/4 · Annual director elections, an independent chair, majority voting, special-meeting rights and proxy access support accountability. Written consent is prohibited, the board can issue preferred stock without further shareholder approval, and Berkshire must vote holdings above 40% with board recommendations. These actual arrangements support a mixed assessment of shareholder influence.
Evidence
Community physicians
ESKD patients generally seek treatment or support for their home treatment at an outpatient dialysis center near their home where their treating nephrologist has practice privileges.
2025 Form 10-K, filed 2026-02-11; Business—Community physicians · Filed 11/02/2026
Nearly 5,200 nephrologists currently refer patients to our outpatient dialysis centers.
2025 Form 10-K, filed 2026-02-11; Business—Community physicians · Filed 11/02/2026
According to the most recently published data, for the eleven most recently reported years, we have continued as an industry leader in the Centers for Medicare & Medicaid Services’ (CMS) Quality Incentive Program (QIP), which promotes high quality services in outpatient dialysis facilities treating patients with ESKD.
2025 Form 10-K, filed 2026-02-11; Business—Care model/QIP · Filed 11/02/2026
In addition, according to the most recently published data, for the ten most recently reported years, we have also continued as an industry leader under CMS’ Five-Star Quality Rating System (Star Rating), which rates eligible dialysis centers based on the quality of outcomes to help patients, their families, and caregivers make more informed decisions about where patients receive care.
2025 Form 10-K, filed 2026-02-11; Business—Care model/Star Rating · Filed 11/02/2026
If a significant number of physicians or hospitals were to cease referring patients to our dialysis centers, whether due to law, rule or regulation, new competition, a perceived decrease in the quality of service levels at our centers or other reasons, it would have a material adverse effect on our business, results of operations, financial condition and cash flows.
2025 Form 10-K, filed 2026-02-11; Risk factors—Physician and hospital referrals · Filed 11/02/2026
Although these and other potential competitors may face operational or financial challenges, the evolving nature of the dialysis and pre-dialysis marketplaces has presented some opportunities for relative ease of entry for these and other potential competitors.
2025 Form 10-K, filed 2026-02-11; Competition/entry risk · Filed 11/02/2026
In addition to these large and medium sized dialysis providers with substantial financial resources and other established participants in the dialysis space, we also compete with new dialysis providers, individual nephrologists and former medical directors or physicians that have opened their own dialysis units or facilities.
2024 Form 10-K, filed 2025-02-13; Business—Competition · Filed 13/02/2025
Patients suffering from ESKD generally require regular life-sustaining dialysis therapy for the rest of their lives or until they receive a kidney transplant.
2025 Form 10-K, filed 2026-02-11; Business—Recurring dialysis requirement · Filed 11/02/2026
Normalized non-acquired treatment growth in the second quarter of 2026 compared to the second quarter of 2025 was 0.3%.
Second-quarter 2026 earnings release, filed 2026-08-04; U.S. dialysis—Normalized non-acquired treatment growth · Filed 04/08/2026
Total treatment volumes in the second quarter were slightly ahead of expectations due to, among other things, better than expected patient census that was primarily driven by lower than expected mortality partially offset by lower than expected incoming patient transfers and higher than expected missed treatments.
June 2026 Form 10-Q, filed 2026-08-04; MD&A—Treatment volumes and census · Filed 04/08/2026
For example, the decision to let enhanced premium tax credits expire at the end of 2025 has had an adverse impact on enrollment in the Affordable Care Act exchanges and our commercial mix, which in turn adversely impacts our revenue per treatment, among other things.
June 2026 Form 10-Q, filed 2026-08-04; MD&A—Commercial mix and revenue per treatment · Filed 04/08/2026
Three months ended
Quarter
change
Six months ended
Year to date change
June 30,
2026
March 31,
2026
June 30,
2026
June 30,
2025
(dollars in millions, except per treatment data)
Revenue per treatment
$
415.87
$
417.59
$
(1.72)
$
416.71
$
402.38
$
14.33
Patient care costs per treatment
$
277.40
$
280.11
$
(2.71)
$
278.74
$
270.05
$
8.69
General and administrative
$
331
$
320
$
11
$
651
$
595
$
56
Primary drivers of the changes in the table above were as follows:
Second-quarter 2026 earnings release, filed 2026-08-04; U.S. dialysis—Quarterly and first-half revenue and costs per treatment · Filed 04/08/2026
U.S. dialysis average patient service revenue per treatment for the six months ended June 30, 2026 increased compared to the six months ended June 30, 2025 primarily driven by Medicare base rate and other annual rate increases, as well as other normal fluctuations, partially offset by changes in payor mix.
June 2026 Form 10-Q, filed 2026-08-04; MD&A—First-half U.S. dialysis revenue per treatment drivers · Filed 04/08/2026
•the concentration of profits generated by higher-paying commercial payor plans for which there is continued downward pressure on average realized payment rates; our ability to negotiate and maintain contracts with these payors on competitive terms or at all; a reduction in the number or percentage of our patients under commercial plans, including, without limitation, as a result of healthcare, immigration or other policies implemented by the U.S.
June 2026 Form 10-Q, filed 2026-08-04; Commercial payment-rate pressure disclosure · Filed 04/08/2026
Revenues associated with Medicare and Medicaid programs are estimated based on: (a) the payment rates that are established by statute or regulation for the portion of payment rates paid by the government payor (e.g., 80% for Medicare patients) and (b) for the portion not paid by the primary government payor, estimates of the amounts ultimately collectible from other government programs providing secondary coverage (e.g., Medicaid secondary coverage), the patient’s commercial health plan secondary coverage, or the patient.
2025 Form 10-K, filed 2026-02-11; Revenue recognition—Government payment rates · Filed 11/02/2026
Medicare Advantage revenues are reimbursed at negotiated contract rates that are generally higher than Medicare fee-for-service rates, but which generally have a slower payment cycle than Medicare fee-for-service payments, and some of which are subject to certain quality or performance adjustments.
2025 Form 10-K, filed 2026-02-11; Revenue recognition—Medicare Advantage contract rates · Filed 11/02/2026
Commercial payment rates are the result of negotiations between us and commercial payors or, on rare occasions, third party administrators.
2025 Form 10-K, filed 2026-02-11; Revenue recognition—Commercial negotiations · Filed 11/02/2026
Our commercial contracts sometimes contain annual price escalator provisions.
2025 Form 10-K, filed 2026-02-11; Commercial contract escalators · Filed 11/02/2026
Three months ended
Six months ended June 30,
June 30, 2026
March 31, 2026
2026
2025
Amount
Margin
Amount
Margin
Amount
Margin
Amount
Margin
Operating income
(dollars in millions)
Operating income
$
579
16.3
%
$
482
14.1
%
$
1,061
15.2
%
$
977
14.8
%
Adjusted operating income(1)
$
579
16.3
%
$
482
14.1
%
$
1,061
15.2
%
$
990
15.0
%
(1)For definitions of non-GAAP financial measures, see the note titled "Note on Non-GAAP Financial Measures" and related reconciliations beginning on page 14.
Second-quarter 2026 earnings release, filed 2026-08-04; Consolidated operating income and margin comparisons · Filed 04/08/2026
1
Three months ended
Year ended December 31,
December 31, 2025
September 30, 2025
2025
2024
Amount
Margin
Amount
Margin
Amount
Margin
Amount
Margin
Operating income
(dollars in millions)
Operating income
$
561
15.5
%
$
506
14.8
%
$
2,044
15.0
%
$
2,090
16.3
%
Adjusted operating income(1)
$
586
16.2
%
$
517
15.1
%
$
2,094
15.3
%
$
1,981
15.5
%
(1)For definitions of non-GAAP financial measures, see the note titled "Note on Non-GAAP Financial Measures" and related reconciliations beginning on page 15.
Fourth-quarter 2025 earnings release, filed 2026-02-02; Consolidated operating income and margins, 2025 versus 2024 · Filed 02/02/2026
Due in part to continued higher than expected inflation rates, the annual update for the 2024 ESRD PPS base rate did not accurately forecast the cost increase experienced by providers.
2024 Form 10-K, filed 2025-02-13; Medicare reimbursement—2024 cost inflation shortfall · Filed 13/02/2025
For example, after a severe weather event in September 2024 damaged a supplier’s manufacturing plant and halted production of critical clinical products, we implemented responsive operational measures to maintain continuity of care for our patients, which resulted in increased expense and slowed growth of our home-based dialysis business in 2024 and the early portion of 2025.
2025 Form 10-K, filed 2026-02-11; Realized supplier disruption and continuity measures · Filed 11/02/2026
60 Liquidity and capital resources The following table summarizes our major sources and uses of cash, cash equivalents and restricted cash: Year ended December 31, Annual change 2025 2024 Amount Percent (dollars in millions) Net cash provided by operating activities: Net income $ 1,079 $ 1,251 $ (172) (13.7) % Non-cash items in net income 1,071 801 270 33.7 % Other working capital changes (230) 44 (274) (622.7) % Other (33) (74) 41 55.4 % $ 1,887 $ 2,022 $ (135) (6.7) % Net cash provided by investing activities: Maintenance capital expenditures(1) $ (412) $ (394) $ (18) (4.6) % Development capital expenditures(2) (164) (162) (2) (1.2) % Acquisition expenditures (117) (246) 129 52.4 % Proceeds from sale of self-developed properties 31 18 13 72.2 % Other 8 12 (4) (33.3) % $ (655) $ (771) $ 116 15.0 % Net cash provided by financing activities: Debt proceeds (payments), net $ 820 $ 1,095 $ (275) (25.1) % Deferred and debt related financing costs (54) (51) (3) (5.9) % Distributions to noncontrolling interests (324) (337) 13 3.9 % Contributions from noncontrolling interests 7 14 (7) (50.0) % Stock award exercises and other share issuances (12) (114) 102 89.5 % Share repurchases (1,793) (1,386) (407) (29.4) % Other (19) (39) 20 51.3 % $ (1,375) $ (817) $ (558) (68.3) % Total number of shares repurchased 12,678,623 9,832,705 2,845,918 28.9 % Free cash flow(3) $ 1,024 $ 1,162 $ (138) (11.9) % Certain columns or rows may not sum or recalculate due to the presentation of rounded numbers.
2025 Form 10-K, filed 2026-02-11; MD&A—Liquidity and capital resources, annual cash sources and uses · Filed 11/02/2026
Consequently, performance for 2025 resulted in payouts of approximately 91% to 95% of target, depending on individual NEO results for the custom strategic objectives 2025 LTI Program Awards Equity awards granted to NEOs under our 2025 long-term incentive ("2025 LTI Program") program were: •60% performance-based restricted stock units ("PSUs"), with performance measured on a cumulative three-year basis (and metrics based on adjusted earnings per share ("Adjusted EPS") and relative total shareholder return ("Relative TSR") •20% RSUs subject to back-loaded time-based vesting over three and four years (50% each year), respectively •20% SSARs subject to the same back-loaded time-based vesting schedule as the RSUs 2022 PSUs PSUs granted in 2022 with a performance period covering 2025 vested at 81% of target, based on the weighted average of Adjusted EPS performance achieved at 70% of target and Relative TSR performance achieved at 114% of target 2023 PSUs PSUs granted in 2023 with a cumulative performance period ending in 2025 vested at 186% of target, based on the weighted average of Adjusted EPS performance achieved at 200% of target and Relative TSR performance achieved at 143% of target Notice of 2026 Annual Meeting and Proxy Statement 32 Our Executive Compensation Structure In determining each of the compensation elements for our executive compensation program, the Compensation Committee considers, among other things, the overall targeted compensation to be delivered to the executive officers, placing a greater emphasis on variable (or “at-risk”) compensation elements and a lower emphasis on other compensation elements, such as base salary, retirement benefits and the expected cost of perquisites.
2026 proxy statement, filed 2026-04-22; Compensation discussion—Actual 2025 awards and prior PSU vesting outcomes · Filed 22/04/2026
Notice of 2026 Annual Meeting and Proxy Statement 38 Compensation Discussion and Analysis The following table summarizes the performance metrics, weightings, criteria ranges, performance-based eligibility ranges, actual performance and eligible payout percentages for the components of the 2025 STI Program: 2025 STI Program Performance Metrics Performance Metrics Weightings Criteria Range Performance Based Eligibility Range (%) Actual Performance Eligible Payout Achieved (%) Financial: Adjusted Operating Income 50.0% $1,972.5 million to $2,235 million ($2,085 million target) 0%; 25% - 200% $2,094 million1 105.9% Financial: Adjusted Free Cash Flow 20.0% $1,012.5 million to $1,275 million ($1,125 million target) 0%; 25% - 200% $1,024 million1 32.8% Strategic Objectives: Home modalities penetration (Q4 2025) 7.5% 14.875% to 15.75% (15.25% target) 0%; 25% - 200% 14.81% 0% Strategic Objectives: Comprehensive Kidney Care Contracting patient contact composite 7.5% 52.5.0% to 70.0% (60.0% target) 0%; 25% - 200% 56.90% 69.0% Strategic Objectives: Teammate engagement (average of 2025 survey results) 3.0% 76.0% to 84.0% (80.0% target) 0%; 25% - 200% 84.70% 200.0% Strategic Objectives: Water savings projects (millions of gallons) 3.0% 25 to 50 million gallons (35 million gallons target) 0%; 25% - 200% 91 million gallons 200.0% Strategic Objectives: Custom goals 9.0% Varies by NEO 0% - 200% Varies by NEO Varies by NEO2 1"Adjusted Operating Income” and “Adjusted Free Cash Flow” are non-GAAP financial measures.
2026 proxy statement, filed 2026-04-22; Compensation discussion—2025 STI targets, actual performance and eligible payouts · Filed 22/04/2026
–Compensation Committee retains ability to exercise negative discretion under the STI Program
Metrics are Linked to Strategy
–75% of PSUs under the LTI Program are tied to a long-term Adjusted EPS target, which we believe focuses our NEOs on capital-efficient growth, the hallmark of our long-term strategy
2026 proxy statement, filed 2026-04-22; Compensation discussion—Adjusted EPS weighting · Filed 22/04/2026
As of December 31, 2025, each NEO was in compliance with our share ownership policy.
2026 proxy statement, filed 2026-04-22; Management share ownership—Compliance as of 2025-12-31 · Filed 22/04/2026
Our current policy applies to all NEOs and is similar to our share ownership policy that applies to all non-employee members of the Board as described above under the heading "Corporate Governance — Non-Employee Director Share Ownership Policy," except that the ownership threshold (as defined in the policy) relates to base salary (rather than annual cash retainer) and in-the-money value of vested but unexercised stock options and SSARs will count towards the ownership requirements applicable to our NEOs to reflect that the executives are able to exercise such SSARs and options at any point and are subject to the risk of fluctuations in stock price, similar to the Company's other stockholders.
2026 proxy statement, filed 2026-04-22; Management share ownership—Eligible holdings under policy · Filed 22/04/2026
In addition, we continue to maintain a separate recoupment policy that, among other items, includes "significant misconduct" by a domestic Senior Vice President or above of the Company as another possible triggering event for the recoupment of certain compensation, including through the cancellation of, or reimbursement of amounts received with respect to, certain equity awards (including time-based and performance-based awards).
2026 proxy statement, filed 2026-04-22; Existing misconduct recoupment policy · Filed 22/04/2026
Through the resilience of our frontline caregivers and the expertise of our technology teams, we activated contingency plans and provided continued care across more than 3,000 dialysis centers worldwide.
2026 proxy statement, filed 2026-04-22; Management account of cybersecurity response and continued care · Filed 22/04/2026
Some key features of the Company’s corporate governance program include: ü Annual election of all directors and ongoing commitment to Board refreshment ü Year-round stockholder engagement, including regular participation by independent directors ü Stockholder right to call special meetings of stockholders at 10% ownership threshold1 ü No stockholder rights plan/poison pill ü Overboarding limitations applicable to all directors and Director Nominees ü Robust Code of Conduct ü Independent non-executive Board chair ü Each Board Committee has authority to retain independent advisors ü Majority vote standard in uncontested director elections ü Fulsome stock ownership guidelines for senior executives and directors that link the interests of management and the Board with those of stockholders ü Commitment to corporate governance, environmental and social responsibility practices, overseen by the Nominating and Governance Committee ü Significant Board and Committee risk oversight practices ü Robust oversight of the Company's political and lobbying expenditures and related public reporting, overseen by the Nominating and Governance Committee ü Proxy access for director nominations submitted by stockholders (or groups of stockholders) holding 3% of the Company's common stock for 3 years1 ü Robust continuing education program for Board on topics relevant to the Company and the current business landscape 1See the Company's Bylaws for more detail regarding requirements related to this and other stockholder eligibility and related procedures.
2026 proxy statement, filed 2026-04-22; Corporate governance features and eligibility footnote · Filed 22/04/2026
These include provisions prohibiting stockholders from acting by written consent, requiring 90 days advance notice for director nominations and stockholder proposals and granting the Company's Board of Directors the authority to issue up to 5,000 shares of preferred stock and to determine the rights and preferences of the preferred stock without the need for further stockholder approval.
2025 Form 10-K, filed 2026-02-11; Governance provisions—Written consent and preferred stock authority · Filed 11/02/2026
The standstill agreement currently restricts Berkshire’s actions with respect to acquiring additional shares of the Company’s common stock, and for any matter presented to Company stockholders, the standstill agreement requires Berkshire to vote any shares it beneficially holds in excess of 40% of the then-outstanding voting stock of the Company in accordance with the recommendation of the Board of Directors of the Company (Board).
2025 Form 10-K, filed 2026-02-11; Berkshire standstill agreement and voting requirements · Filed 11/02/2026
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(dollars in thousands)
Six months ended June 30,
2026
2025
Cash flows from operating activities:
Net income
$
618,258
$
507,436
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
345,637
351,155
Stock-based compensation expense
54,189
62,567
Deferred income taxes
53,431
(9,838)
Equity investment loss, net
2,437
47,730
Other non-cash losses, net
16,721
6,948
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
Accounts receivable
(24,197)
(288,447)
Inventories
11,315
(9,592)
Other current assets
(58,339)
(70,945)
Other long-term assets
(22,803)
2,981
Accounts payable
7,639
35,612
Accrued compensation and benefits
(108,322)
(125,365)
Other current liabilities
(55,837)
(3,586)
Income taxes
(32,530)
9,462
Other long-term liabilities
3,301
(11,873)
Net cash provided by operating activities
810,900
504,245
Cash flows from investing activities:
Second-quarter 2026 earnings release, filed 2026-08-04; Unaudited cash flow statement—Six months ended June 30, operating activities, dollars in thousands · Filed 04/08/2026
Additions of property and equipment
(271,836)
(264,349)
Acquisitions
(38,540)
(10,596)
Proceeds from asset and business sales
4,392
22,400
Purchase of debt investments held-to-maturity
(298)
(27,475)
Purchase of other debt and equity investments
(12,867)
(3,002)
Proceeds from debt investments held-to-maturity
942
48,014
Proceeds from sale of other debt and equity investments
4,382
6,379
Purchase of equity method investments
(19,625)
(2,144)
Distributions from equity method investments
109
1,470
Net cash used in investing activities
(333,341)
(229,303)
Cash flows from financing activities:
Borrowings
2,768,259
4,189,716
Payments on long-term debt
(2,264,356)
(3,373,300)
Deferred and debt related financing costs
(4,645)
(25,133)
Purchase of treasury stock from related party
(382,805)
(200,261)
Other purchases of treasury stock
(377,852)
(793,834)
Distributions to noncontrolling interests
(149,892)
(151,087)
Net proceeds from issuance of common stock under employee stock plans
5,909
8,913
Payment of tax withholdings on net share settlements of equity awards
(63,814)
(30,477)
Contributions from noncontrolling interests
4,239
2,578
Proceeds from sales of additional noncontrolling interests
—
169
Purchases of noncontrolling interests
(18,571)
(5,378)
Net cash used in financing activities
(483,528)
(378,094)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
80
20,286
Net decrease in cash, cash equivalents and restricted cash
(5,889)
(82,866)
Cash, cash equivalents and restricted cash at beginning of the year
757,747
879,825
Cash, cash equivalents and restricted cash at end of the period
$
751,858
$
796,959
9
DAVITA INC.
Second-quarter 2026 earnings release, filed 2026-08-04; Continuation of six-month cash flow statement—Investing and financing activities, dollars in thousands · Filed 04/08/2026
