DaVita Inc. Q4 2024 Results
DaVita Inc. (NYSE: DVA), a leading provider of dialysis services, has announced its financial and operational results for the fourth quarter and year ended December 31, 2024. Despite facing challenges throughout the year, DaVita achieved impressive results, including strong earnings per share (EPS) and operating income, positioning the company for continued success in 2025.
Financial Highlights for Q4 and Full Year 2024
For the fourth quarter of 2024, DaVita reported consolidated revenues of $3.295 billion, a slight increase compared to the previous quarter. Total annual revenues for 2024 reached $12.816 billion, reflecting a solid year-over-year performance.
Operating income for Q4 stood at $565 million, with adjusted operating income of $491 million. For the full year, DaVita posted operating income of $2.090 billion and adjusted operating income of $1.981 billion. These results demonstrate the company’s consistent ability to drive profitability, even amidst a challenging healthcare environment.
The company’s diluted earnings per share (EPS) for Q4 2024 were $3.09, while adjusted diluted EPS came in at $2.24. For the full year, DaVita’s diluted EPS reached $10.73, with adjusted EPS at $9.68, demonstrating significant growth compared to 2023.
Operating Cash Flow and Free Cash Flow
Operating cash flow for the fourth quarter of 2024 was $548 million, with free cash flow of $281 million. On a full-year basis, operating cash flow totaled $2.022 billion, and free cash flow amounted to $1.162 billion. These results underline DaVita’s strong ability to generate cash flow, supporting its growth initiatives, including share repurchases and reinvestment in its operations.
Share Repurchases
During Q4 2024, DaVita repurchased 2.3 million shares of its common stock for $367 million, at an average price of $156.46 per share. For the full year, the company repurchased 9.8 million shares at an average price of $140.06 per share. Share repurchases are part of DaVita’s ongoing strategy to return value to shareholders.
Dialysis Services and Treatment Volume
DaVita’s dialysis services experienced slight fluctuations in treatment volume in Q4. Total U.S. dialysis treatments for the quarter amounted to 7,278,605, with an average of 91,786 treatments per day. This represents a slight decrease of 1.4% from Q3 2024. When compared to Q4 2023, normalized non-acquired treatment growth was a modest decline of 0.3%.
The company’s revenue per treatment for Q4 2024 was $395.87, showing a slight increase from $391.32 in the same period in 2023. This was primarily driven by annual rate increases, improved revenue cycle management, and a favorable shift in reimbursement rates, including Medicare adjustments. Similarly, patient care costs per treatment increased marginally, due to factors such as higher center closure costs and increased health benefit expenses.
Cost Structure and Operational Challenges
Patient care costs increased due to higher expenses related to center closures, including lease termination costs and depreciation, as part of the ongoing strategic review of outpatient clinic capacity. These closure costs were approximately $24.2 million for the fourth quarter of 2024 and $72.4 million for the full year. Despite these costs, DaVita’s operational performance remained strong, reflecting the company’s ability to manage and optimize its operations effectively.
General and administrative expenses rose during the fourth quarter of 2024, largely due to higher professional fees, IT-related costs, and travel expenses. However, these increases were partially offset by a reduction in compensation expenses.
Conclusion
DaVita’s fourth-quarter and full-year 2024 financial results demonstrate strong operational performance, consistent cash flow generation, and effective cost management. The company’s ability to navigate industry challenges while driving growth in its dialysis services, coupled with a strong share repurchase program, underscores its commitment to delivering value to shareholders.
As DaVita looks ahead to its 25th anniversary, it remains focused on its mission to provide exceptional care for its patients and lead the way in transforming kidney care through innovative solutions. With a solid financial foundation and a clear strategic direction, DaVita is well-positioned to continue delivering on its long-term goals in the years to come.
