DVA

DaVita is a leading US dialysis provider with a durable, recurring revenue base — FY2025 revenue grew 6.5% to $13.6B and operating income held at $2.04B (15.0% operating margin). The hallmark of the story is its capital-return engine: the company pays no dividend and instead bought back $1.31B of stock, shrinking shares outstanding 16.5% in the year. That buyback intensity is also why stockholders' equity is negative (-$651M) and ROE/leverage ratios are not meaningful — this is a deliberate financial structure, not balance-sheet distress, supported by $1.89B of operating cash flow.

FY2025 was a softer year on the bottom line: net income fell 20.2% to $747M and diluted EPS declined 8.3% to $9.84, even as the buyback cushioned the per-share hit. The 10-K flags a cybersecurity incident experienced in 2025 and meaningful policy overhangs — the One Big Beautiful Bill Act (OBBBA), potential Medicare/Medicaid reimbursement and commercial-mix changes, and labor-cost pressure — all of which bear directly on a business whose profits are concentrated in higher-paying commercial payors.