Stonegate Capital Partners has updated its coverage on Viemed Healthcare, Inc. (NASDAQ: VMD), noting that the company's first-quarter 2026 results demonstrate improving growth quality beyond just reported scale. According to the research update, sleep, resupply, and maternal health are becoming larger contributors to revenue, reducing Viemed's reliance on legacy ventilation and improving capital efficiency.
Viemed's ventilator rentals declined to 46.9% of revenue from 54.4% in the prior year, while commercial payors increased to 23% from 17%. The company's sleep and resupply segments remain the clearest growth drivers, with PAP patients increasing 57% year-over-year to 35,938, new patient starts growing 42%, and resupply patients increasing 47% year-over-year.
Free cash flow conversion improved meaningfully. Cash flow from operations increased to $8.1 million from $2.9 million in the same quarter last year, while trailing twelve-month free cash flow rose to $36.3 million from $23.3 million at year-end 2025. Stonegate noted that the broader mix is driving stronger FCF conversion as sleep, resupply, and maternal health scale.
Ventilation appears to be moving through the National Coverage Determination transition, with better new-start activity and improving compliance, though turnover continues to pressure census. The full announcement, including downloadable images and bios, is available here.
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), provides investment banking, equity research, and capital raising for public and private companies.
