Dafinchi AI

Encompass Health Corporation

EHC

Healthcare

1w

Financial Performance Summary

Adjusted EBITDA rose 17.2% to $308.6 million, reflecting operational efficiencies and favorable payer mix.
Adjusted free cash flow increased 30.5% to approximately $186 million in Q2, with year-to-date free cash flow up 31.7% to $408 million.
Bad debt expense decreased by 90 basis points to 2%, benefiting net revenue per discharge.
Benefit expense per FTE increased 18%, driven by higher frequency of high-dollar medical claims.
Net leverage at quarter end was 2x, with $100 million in unrestricted cash and over $950 million available on revolving credit.
Net preopening and ramp-up costs were $4 million in Q2, with full-year expected costs between $18 million and $22 million.
Quarterly dividend increased to $0.19 per share, payable in October.
Revenue for Q2 2025 increased 12% to $1.46 billion, driven by 7.2% discharge growth and a 4.2% increase in net revenue per discharge.
Salaries and wages per FTE increased 3.4%, while contract labor and sign-on bonuses declined by 15.1%.
Share repurchases totaled approximately 232,000 shares for $24.7 million in Q2.

Agios Pharmaceuticals, Inc.

AGIO

Healthcare

2w

Financial Performance Summary

Agios ended Q2 with approximately $1.3 billion in cash, cash equivalents, and marketable securities.
Cost of sales for the quarter was $1.7 million.
In Q2 2025, Agios reported net revenue of $12.5 million, a 45% increase compared to $8.6 million in Q2 2024 and a 44% increase compared to Q1 2025.
R&D expenses were $91.9 million, up $14.5 million from Q2 2024, primarily due to a $10 million milestone payment to Alnylam related to AG-236 development.
SG&A expenses were $45.9 million, an increase of $10.4 million year-over-year, driven by investments ahead of the potential PYRUKYND thalassemia launch.
The company expects modest full-year 2025 net revenue growth compared to 2024, with quarter-on-quarter variability due to ordering patterns and a sales force transition to thalassemia.

EHAB

Healthcare

1w

CMS Reimbursement Challenges and Industry Impact

Barbara highlighted ongoing concerns with CMS' final hospice and home health rules, noting a modest 2.6% rate increase for hospice but significant dissatisfaction with the lack of full cost recovery.
The proposed 2026 home health rule includes continued cuts, with cumulative reductions exceeding 20% since PDGM implementation, despite rising care costs and demand for home-based services.
Management emphasized that these reimbursement cuts threaten access to care, especially in rural and underserved areas, and could force closures or consolidations of branches.
Enhabit is actively engaging with trade associations and policymakers to oppose these cuts, arguing that the industry provides cost-effective care that reduces overall healthcare expenditures.

Outset Medical, Inc.

OM

Healthcare

1w

Commercial Transformation and Sales Process Overhaul

The commercial transformation aims to capitalize on large enterprise and IDN opportunities, with a focus on moving from early-stage to later-stage deals.
The company has retooled its sales team to target hospital CNOs and other key decision-makers, emphasizing change management and clinical benefits.
Progress includes a more disciplined approach to sales forecasting, pipeline management, and deal closure, setting the stage for sustained growth.