Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2026

or

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission File Number: 1-14106

DAVITA INC.

Delaware						51-0354549
(State of incorporation)						(I.R.S. Employer Identification No.)

2000 16th Street
Denver,			CO			80202

Telephone number (720) 631-2100

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:						Trading symbol(s):						Name of each exchange on which registered:
Common Stock, $0.001 par value						DVA						NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer			☒			Accelerated filer			☐
Non-accelerated filer			☐			Smaller reporting company			☐
Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒

As of May 5, 2026, the number of shares of the registrant’s common stock outstanding was approximately 64.2 million shares.

DAVITA INC.

INDEX

												Page No.
						PART I. FINANCIAL INFORMATION
Item 1.						Condensed Consolidated Financial Statements:
						Consolidated Statements of Income for the three months ended March 31, 2026 and March 31, 2025						1
						Consolidated Statements of Comprehensive Income for the three months ended March 31, 2026 and March 31, 2025						2
						Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025						3
						Consolidated Statements of Cash Flow for the three months ended March 31, 2026 and March 31, 2025						4
						Consolidated Statements of Equity for the three months ended March 31, 2026 and March 31, 2025						5
						Notes to Condensed Consolidated Financial Statements						6
Item 2.						Management’s Discussion and Analysis of Financial Condition and Results of Operations						18
Item 3.						Quantitative and Qualitative Disclosures about Market Risk						33
Item 4.						Controls and Procedures						33
						PART II. OTHER INFORMATION
Item 1.						Legal Proceedings						33
Item 1A.						Risk Factors						33
Item 2.						Unregistered Sales of Equity Securities and Use of Proceeds						33
Item 3.						Defaults Upon Senior Securities						34
Item 4.						Mine Safety Disclosures						34
Item 5.						Other Information						34
Item 6.						Exhibits						35
						Signature						36

i

DAVITA INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(dollars and shares in thousands, except per share data)

			Three months ended March 31,
			2026						2025
Dialysis patient service revenues			$	3,272,797					$	3,102,993
Other revenues			142,751						120,536
Total revenues			3,415,548						3,223,529
Operating expenses:
Patient care costs			2,342,257						2,239,660
General and administrative			421,914						374,090
Depreciation and amortization			177,829						176,451
Equity investment income, net			(8,344)						(5,609)
Total operating expenses			2,933,656						2,784,592
Operating income			481,892						438,937
Debt expense			(145,131)						(135,055)
Other income (loss), net			4,473						(17,549)
Income before income taxes			341,234						286,333
Income tax expense			66,199						54,117
Net income			275,035						232,216
Less: Net income attributable to noncontrolling interests			(77,505)						(69,299)
Net income attributable to DaVita Inc.			$	197,530					$	162,917
Earnings per share attributable to DaVita Inc.:
Basic net income			$	2.93					$	2.05
Diluted net income			$	2.87					$	2.00
Weighted average shares for earnings per share:
Basic shares			67,390						79,368
Diluted shares			68,875						81,275

See notes to condensed consolidated financial statements.

DAVITA INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

(dollars in thousands)

			Three months ended March 31,
			2026						2025
Net income			$	275,035					$	232,216
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on interest rate cap agreements:
Unrealized gains (losses)			5,154						(8,535)
Reclassifications of net realized losses into net income			2,877						1,507
Unrealized gains on foreign currency translation			27,793						90,856
Other comprehensive income			35,824						83,828
Total comprehensive income			310,859						316,044
Less: Comprehensive income attributable to noncontrolling interests			(77,505)						(69,299)
Comprehensive income attributable to DaVita Inc.			$	233,354					$	246,745

See notes to condensed consolidated financial statements.

DAVITA INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(dollars and shares in thousands, except per share data)

			March 31, 2026						December 31, 2025
ASSETS
Cash and cash equivalents			$	644,243					$	676,438
Restricted cash and equivalents			82,160						81,309
Short-term investments			22,303						24,303
Accounts receivable			2,459,355						2,414,690
Inventories			141,613						160,627
Contract assets and other receivables			517,653						494,414
Prepaid and other current assets			159,576						156,285
Income tax receivable			35,780						49,937
Total current assets			4,062,683						4,058,003
Property and equipment, net of accumulated depreciation of $6,751,314 and $6,602,134, respectively			2,754,754						2,812,966
Operating lease right-of-use assets			2,396,698						2,397,179
Intangible assets, net of accumulated amortization of $36,748 and $37,751, respectively			229,020						222,125
Equity method and other investments			167,441						157,249
Long-term investments			39,469						40,966
Other long-term assets			266,987						246,520
Goodwill			7,582,313						7,545,095
			$	17,499,365					$	17,480,103
LIABILITIES AND EQUITY
Accounts payable			$	691,256					$	696,148
Other liabilities			799,377						893,024
Accrued compensation and benefits			708,037						793,478
Current portion of operating lease liabilities			432,219						425,484
Current portion of long-term debt			112,653						109,201
Income tax payable			37,417						24,359
Due to related party			86,500						199,940
Total current liabilities			2,867,459						3,141,634
Long-term operating lease liabilities			2,162,372						2,175,658
Long-term debt			10,513,597						10,163,988
Other long-term liabilities			88,853						83,516
Deferred income taxes			818,918						756,869
Total liabilities			16,451,199						16,321,665
Commitments and contingencies
Noncontrolling interests subject to put provisions			1,524,505						1,532,166
Equity:
Preferred stock ($0.001 par value, 5,000 shares authorized; none issued)			—						—
Common stock ($0.001 par value, 450,000 shares authorized; 69,190 shares issued and 66,185 outstanding at March 31, 2026, respectively, and 68,549 shares issued and outstanding at December 31, 2025)			69						69
Additional paid-in capital			—						—
Accumulated deficit			(179,242)						(328,428)
Treasury stock (3,005 and zero shares, respectively)			(489,364)						(199,940)
Accumulated other comprehensive loss			(86,959)						(122,783)
Total DaVita Inc. shareholders' equity deficit			(755,496)						(651,082)
Noncontrolling interests not subject to put provisions			279,157						277,354
Total equity deficit			(476,339)						(373,728)
			$	17,499,365					$	17,480,103

See notes to condensed consolidated financial statements.

DAVITA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)

			Three months ended March 31,
			2026						2025
Cash flows from operating activities:
Net income			$	275,035					$	232,216
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			177,829						176,451
Stock-based compensation expense			28,160						29,759
Deferred income taxes			54,798						4,335
Equity investment (income) loss, net			(30)						20,262
Other non-cash losses, net			6,706						7,137
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
Accounts receivable			(29,751)						(155,276)
Inventories			20,277						(14,772)
Other current assets			(22,772)						(41,087)
Other long-term assets			(2,571)						13,026
Accounts payable			(23,774)						46,195
Accrued compensation and benefits			(88,343)						(128,194)
Other current liabilities			(96,903)						(39,394)
Income taxes			27,125						39,829
Other long-term liabilities			(4,955)						(10,478)
Net cash provided by operating activities			320,831						180,009
Cash flows from investing activities:
Additions of property and equipment			(102,018)						(143,258)
Acquisitions			(33,924)						(10,243)
Proceeds from asset and business sales			3,721						10,674
Purchase of debt investments held-to-maturity			(290)						(26,894)
Purchase of other debt and equity investments			(9,655)						(2,471)
Proceeds from debt investments held-to-maturity			942						3,080
Proceeds from sale of other debt and equity investments			4,332						5,662
Purchase of equity method investments			(2,308)						—
Distributions from equity method investments			109						1,312
Net cash used in investing activities			(139,091)						(162,138)
Cash flows from financing activities:
Borrowings			1,263,179						633,189
Payments on long-term debt			(917,087)						(345,965)
Deferred and debt related financing costs			(2,882)						(6,411)
Purchase of treasury stock from related party			(199,940)						(31,684)
Other purchases of treasury stock			(196,371)						(510,161)
Distributions to noncontrolling interests			(85,440)						(93,022)
Net proceeds from issuance of common stock under employee stock plans			2,386						4,937
Payment of tax withholdings on net share settlements of equity awards			(63,155)						(30,214)
Contributions from noncontrolling interests			4,049						2,169
Purchases of noncontrolling interests			(18,082)						(5,378)
Net cash used in financing activities			(213,343)						(382,540)
Effect of exchange rate changes on cash, cash equivalents and restricted cash			259						9,417
Net decrease in cash, cash equivalents and restricted cash			(31,344)						(355,252)
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			$	726,403					$	524,573

See notes to condensed consolidated financial statements.

DAVITA INC.

CONSOLIDATED STATEMENTS OF EQUITY

(unaudited)

(dollars and shares in thousands)

			Three months ended March 31, 2026
			Non- controlling interests subject to put provisions						DaVita Inc. shareholders’ equity deficit																																																Non- controlling interests not subject to put provisions
						Common stock												Additional paid-in capital						Accumulated deficit						Treasury stock												Accumulated other comprehensive loss
						Shares						Amount												Shares						Amount									Total
Balance at December 31, 2025			$	1,532,166					68,549						$	69					$	—					$	(328,428)					—						$	(199,940)					$	(122,783)					$	(651,082)					$	277,354
Comprehensive income:
Net income			50,138																								197,530																								197,530						27,367
Other comprehensive income																																													35,824						35,824
Stock award plan									641												(27,234)						(35,921)																								(63,155)
Stock-settled stock-based compensation expense																					26,606																														26,606
Changes in noncontrolling interest from:
Distributions			(55,685)																																																						(29,755)
Contributions			2,504																																																						1,545
Acquisitions and divestitures																																																									2,646
Partial purchases			(13,042)																		628						(3,999)																								(3,371)
Fair value remeasurements			8,424																								(8,424)																								(8,424)
Purchase of treasury stock																																	(3,005)						(402,864)												(402,864)
Share purchase obligation																																							113,440												113,440
Balance at March 31, 2026			$	1,524,505					69,190						$	69					$	—					$	(179,242)					(3,005)						$	(489,364)					$	(86,959)					$	(755,496)					$	279,157

			Three months ended March 31, 2025
Non- controlling interests subject to put provisions						DaVita Inc. shareholders’ equity (deficit)																																																Non- controlling interests not subject to put provisions
			Common stock												Additional paid-in capital						Retained earnings						Treasury stock												Accumulated other comprehensive loss						Total
			Shares						Amount												Shares						Amount
Balance at December 31, 2024			$	1,695,483					90,369						$	90					$	286,270					$	1,534,630					(9,833)						$	(1,389,072)					$	(310,796)					$	121,122					$	274,746
Comprehensive income:
Net income			45,230																								162,917																								162,917						24,069
Other comprehensive Income																																													83,828						83,828
Stock award plan									401						1						(30,165)																														(30,164)
Stock-settled stock-based compensation expense																					29,369																														29,369
Changes in noncontrolling interest from:
Distributions			(61,321)																																																						(31,701)
Contributions			1,951																																																						218
Acquisitions and divestitures			4,354																		682																														682						(6,783)
Partial purchases			(5,865)
Fair value remeasurements			(13,311)																		13,311																														13,311
Purchase of treasury stock																																	(3,660)						(550,222)												(550,222)
Share purchase Obligation																																							(97,944)												(97,944)
Balance at March 31, 2025			$	1,666,521					90,770						$	91					$	299,467					$	1,697,547					(13,493)						$	(2,037,238)					$	(226,968)					$	(267,101)					$	260,549

See notes to condensed consolidated financial statements.

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

(dollars and shares in thousands, except per share data)

Unless otherwise indicated in this Quarterly Report on Form 10-Q, "the Company", "we", "us", "our" and similar terms refer to DaVita Inc. and its consolidated subsidiaries.

1. Condensed consolidated interim financial statements

The unaudited condensed consolidated interim financial statements included in this report are prepared by the Company. In the opinion of management, all adjustments necessary for a fair presentation of the results of operations are reflected in these condensed consolidated interim financial statements. All significant intercompany accounts and transactions have been eliminated. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities, contingencies, and noncontrolling interests subject to put provisions. The most significant estimates and assumptions underlying these financial statements and accompanying notes generally involve revenue recognition and accounts receivable, certain fair value estimates, accounting for income taxes, and loss contingencies. The results of operations reflected in these interim financial statements may not necessarily be indicative of annual operating results. These condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (2025 10-K). Prior period classifications conform to the current period presentation.

2. Revenue recognition

The following tables summarize the Company's segment revenues by primary payor source:

			Three months ended March 31, 2026																		Three months ended March 31, 2025
			U.S. dialysis						Other — Ancillary services						Consolidated						U.S. dialysis						Other — Ancillary services						Consolidated
Dialysis patient service revenues:
Medicare and Medicare Advantage			$	1,675,413					$						$	1,675,413					$	1,609,018					$						$	1,609,018
Medicaid and Managed Medicaid			212,830												212,830						206,509												206,509
Other government			92,940						248,179						341,119						76,746						209,747						286,493
Commercial			954,243						109,664						1,063,907						924,888						87,819						1,012,707
Other revenues:
Medicare and Medicare Advantage									108,506						108,506												98,954						98,954
Medicaid and Managed Medicaid									—						—												2						2
Commercial									3,648						3,648												2,701						2,701
Other**(1)**			6,275						27,610						33,885						6,008						15,599						21,607
Eliminations of intersegment revenues			(20,472)						(3,288)						(23,760)						(11,734)						(2,728)						(14,462)
Total			$	2,921,229					$	494,319					$	3,415,548					$	2,811,435					$	412,094					$	3,223,529

(1) Consists primarily of management service fees in the Company's U.S. dialysis business and research fees, management fees, and other non-patient service revenues in the Other - ancillary services businesses.

There are significant uncertainties associated with estimating revenue, many of which take several years to resolve. These estimates are subject to ongoing insurance coverage changes, geographic coverage differences, differing interpretations of contract coverage and other payor issues, as well as patient issues, including determination of applicable primary and secondary coverage, changes in patient insurance coverage and coordination of benefits. As these estimates are refined over time, both positive and negative adjustments to revenue are recognized in the current period.

Measurements of revenue for the Company's integrated kidney care (IKC) risk-based arrangements are complex, sensitive to a number of key inputs, and require meaningful estimates for a number of factors, including but not limited to member alignment data, third-party medical claims expense, outcomes on various quality metrics, and ultimate risk adjustment factor scores. Information and other measurement limitations on these factors may constrain revenue recognition for a risk-based arrangement until a period after the Company's performance obligations have been met. For its IKC business, the Company recognized revenues for performance obligations satisfied in previous years of $35,477 and $28,463 during the three months ended March 31, 2026 and 2025, respectively. The delay in recognition of these amounts resulted predominantly from measurement limitations and recognition constraints on the Company's value-based care contracts with health plans, many of

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

which are complex. Recognition of revenue from the Company's government Comprehensive Kidney Care Contracting program also has certain constraints for plan years 2025 and 2026.

Customer contract assets. The carrying value of customer contract assets, which are included in contract assets and other receivables and other long-term assets on the Company’s consolidated balance sheet, was $354,329 and $310,541 as of March 31, 2026 and December 31, 2025, respectively.

3. Earnings per share

Basic earnings per share is calculated by dividing net income attributable to the Company by the weighted average number of common shares outstanding. Weighted average common shares outstanding include restricted stock unit awards that are no longer subject to forfeiture because the recipients have satisfied either their explicit vesting terms or retirement eligibility requirements.

Diluted earnings per share includes the dilutive effect of outstanding stock-settled stock appreciation rights and unvested stock units as computed under the treasury stock method.

The reconciliations of the numerators and denominators used to calculate basic and diluted earnings per share were as follows:

			Three months ended March 31,
			2026						2025
Net income attributable to DaVita Inc.			$	197,530					$	162,917
Weighted average shares outstanding:
Basic shares			67,390						79,368
Assumed incremental from stock plans			1,485						1,907
Diluted shares			68,875						81,275
Basic net income per share attributable to DaVita Inc.			$	2.93					$	2.05
Diluted net income per share attributable to DaVita Inc.			$	2.87					$	2.00
Anti-dilutive stock-settled awards excluded from calculation(1)			392						187

(1)Shares associated with stock plans excluded from the diluted denominator calculation because they were anti-dilutive under the treasury stock method.

4. Short-term and long-term investments

The Company’s short-term and long-term investments, consisting of debt instruments classified as held-to-maturity and equity investments with readily determinable fair values or redemption values, were as follows:

			March 31, 2026																		December 31, 2025
			Debt securities						Equity securities						Total						Debt securities						Equity securities						Total
Certificates of deposit, bonds and other			$	23,915					$	—					$	23,915					$	24,320					$	—					$	24,320
Investments in mutual funds			—						37,857						37,857						—						40,949						40,949
			$	23,915					$	37,857					$	61,772					$	24,320					$	40,949					$	65,269
Short-term investments			$	19,403					$	2,900					$	22,303					$	19,903					$	4,400					$	24,303
Long-term investments			4,512						34,957						39,469						4,417						36,549						40,966
			$	23,915					$	37,857					$	61,772					$	24,320					$	40,949					$	65,269

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

5. Goodwill

Changes in the carrying value of goodwill by reportable segment were as follows:

			U.S. dialysis						Other — Ancillary services						Consolidated
Balance at December 31, 2024			$	6,517,220					$	857,996					$	7,375,216
Acquisitions			10,396						61,288						71,684
Foreign currency and other adjustments			—						98,195						98,195
Balance at December 31, 2025			6,527,616						1,017,479						7,545,095
Acquisitions			21,098						9,542						30,640
Foreign currency and other adjustments			—						6,578						6,578
Balance at March 31, 2026			$	6,548,714					$	1,033,599					$	7,582,313
Balance at March 31, 2026:
Goodwill			$	6,548,714					$	1,187,860					$	7,736,574
Accumulated impairment charges			—						(154,261)						(154,261)
			$	6,548,714					$	1,033,599					$	7,582,313

The Company did not recognize any goodwill impairment charges during the three months ended March 31, 2026 and 2025.

None of the Company's various reporting units were considered at risk of significant goodwill impairment as of March 31, 2026.

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

6. Long-term debt

Long-term debt comprised the following:

																					As of March 31, 2026
			March 31, 2026						December 31, 2025						Maturity date						Interest rate						Estimated fair value**(1)**
Senior Secured Credit Facilities:
Term Loan A-2(2)			$	1,987,500					$	2,000,000					11/24/2030						SOFR + 1.50%						$	1,982,531
Term Loan B-2			1,863,864						1,868,559						5/9/2031						SOFR + 1.75%						$	1,866,194
Revolving line of credit(2)			375,000						—						11/24/2030						SOFR + 1.50%						$	375,000
Senior Notes:
4.625% Senior Notes			2,750,000						2,750,000						6/1/2030						4.625		%				$	2,640,000
3.75% Senior Notes			1,500,000						1,500,000						2/15/2031						3.75		%				$	1,372,500
6.875% Senior Notes			1,000,000						1,000,000						9/1/2032						6.875		%				$	1,020,000
6.75% Senior Notes			1,000,000						1,000,000						7/15/2033						6.75		%				$	1,015,000
Acquisition obligations and other notes payable(3)			41,181						40,904						2026-2038						4.73		%				$	41,181
Financing lease obligations(4)			176,784						185,120						2027-2039						4.37		%
Total debt principal outstanding			10,694,329						10,344,583
Discount, premium and deferred financing costs			(68,079)						(71,394)
			10,626,250						10,273,189
Less current portion			(112,653)						(109,201)
			$	10,513,597					$	10,163,988

(1)See Note 11 for discussion of the Company's fair value estimates.

(2)Outstanding Term Loan A-2 and revolving line of credit balances are due on November 24, 2030, unless any of the 4.625% senior notes due 2030 (the 4.625% Senior Notes) remain outstanding 91 days prior to the 4.625% Senior Notes maturity date, in which case the outstanding Term Loan A-2 and revolving line of credit balances become due at that 91 day date (March 2, 2030).

(3)The interest rate presented for acquisition obligations and other notes payable is their weighted average interest rate based on the current fixed and variable interest rate components in effect as of March 31, 2026.

(4)Financing lease obligations are measured at their approximate present values at inception. The interest rate presented is the weighted average discount rate embedded in financing leases outstanding.

During the first three months of 2026, the Company made regularly scheduled principal payments under its senior secured credit facilities totaling $12,500 on Term Loan A-2 and $4,695 on Term Loan B-2.

As of March 31, 2026, the effective portion of the Company's interest rate cap agreements, as detailed in the table below, have the economic effect of capping the Company's maximum exposure to SOFR variable interest rate changes on equivalent amounts of the Company's floating rate debt, including all of Term Loan B-2 and a portion of Term Loan A-2. The remaining $351,364 outstanding principal balance of Term Loan A-2 and $375,000 balance outstanding on the revolving line of credit are subject to SOFR-based interest rate volatility. These cap agreements are designated as cash flow hedges and, as a result, changes in their fair values are reported in other comprehensive income. The original premiums paid for the caps are amortized to debt expense on a straight-line basis over the term of each cap agreement starting from its effective date. These cap agreements do not contain credit risk-contingent features.

During the first quarter of 2026, the Company entered into several forward interest rate cap agreements, detailed in the table below, that have the economic effect of capping the Company's exposure to SOFR variable interest rate changes on specific portions of the Company's floating rate debt (2026 cap agreements). These 2026 cap agreements are designated as cash flow hedges and, as a result, changes in their fair values will be reported in other comprehensive income. These 2026 cap agreements do not contain credit-risk contingent features and become effective and expire as described in the table below.

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

The following table summarizes the Company’s interest rate cap agreements outstanding as of March 31, 2026:

Year cap agreements executed			Initial notional amount						SOFR maximum rate						Approximate effective date						Maturity date						Notional amount effective through December 31
												2026						2027						2028						2029
2023			$	500,000					4.50%						6/30/2024						12/31/2026						$	500,000
2023			$	750,000					4.00%						12/31/2024						12/31/2026						$	500,000
2024			$	1,750,000					4.50%(1)						12/31/2025						12/31/2027						$	1,750,000					$	1,000,000
2024			$	750,000					4.00%(2)						12/31/2025						12/31/2027						$	750,000					$	500,000
2025			$	1,000,000					4.50%(3)						12/31/2026						12/31/2028												$	1,000,000					$	750,000
2025			$	1,000,000					4.25%(4)						12/31/2026						12/31/2028												$	1,000,000					$	1,000,000
2025			$	1,750,000					4.25%						12/31/2027						12/31/2028																		$	1,750,000
2025			$	1,000,000					4.50%						12/31/2028						12/31/2029																								$	1,000,000
2026			$	750,000					4.75%						12/31/2028						12/31/2029																								$	750,000
Total notional coverage																											$	3,500,000					$	3,500,000					$	3,500,000					$	1,750,000
Weighted average strike rate																											4.32%						4.46%						4.43%						4.61%

(1)Effective December 31, 2026, the maximum rate of 4.50% increases to 4.75% for these interest rate caps.

(2)Effective December 31, 2026, the maximum rate of 4.00% increases to 4.25% for these interest rate caps.

(3)Effective December 31, 2027, the maximum rate of 4.50% increases to 4.75% for these interest rate caps.

(4)Effective December 31, 2027, the maximum rate of 4.25% increases to 4.50% for these interest rate caps.

See Note 9 for further details on amounts reclassified from accumulated other comprehensive loss and recorded as debt expense (offset) related to the Company’s interest rate cap agreements for the three months ended March 31, 2026 and 2025. See Note 11 for discussion of the Company's fair value estimates.

As a result of the variable rate cap from the Company's 2023 interest rate cap agreements, the Company’s weighted average effective interest rate on its senior secured credit facilities at the end of the first quarter of 2026 was 5.79%, based on the current margins in effect for its senior secured credit facilities as of March 31, 2026, as detailed in the table above.

The Company’s weighted average effective interest rate on all debt, including the effect of interest rate caps and amortization of debt discount, premium and deferred financing costs was 5.44% and 5.65% as of March 31, 2026 and March 31, 2025, respectively.

As of March 31, 2026, the Company had $1,125,000 available and $375,000 drawn on its $1,500,000 revolving line of credit under its senior secured credit facilities. Credit available under this revolving line of credit is reduced by the amount of any letters of credit outstanding under the facility, of which there were none as of March 31, 2026. The Company also had letters of credit of approximately $206,716 outstanding under a separate bilateral secured letter of credit facility as of March 31, 2026.

7. Commitments and contingencies

The Company operates in a highly regulated industry and is a party to, or has the potential to be a party to, various lawsuits, demands, claims, qui tam suits, governmental investigations and audits (including, without limitation, investigations or other actions resulting from its obligation to self-report suspected violations of law) and other legal proceedings, including, without limitation, those described below. The Company records accruals for certain legal proceedings and regulatory matters to the extent that the Company determines an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. As of March 31, 2026 and December 31, 2025, each of the Company’s recorded accruals with respect to legal proceedings and regulatory matters were immaterial. While these accruals reflect the Company’s best estimate of the probable loss for those matters as of the dates of those accruals, the recorded amounts may differ materially from the actual amount of the losses for those matters, and any anticipated third party recoveries for any such losses may not ultimately be recoverable. Additionally, in some cases, no estimate of the possible loss or range of loss in excess of amounts accrued, if any, can be made because of the inherently unpredictable nature of legal proceedings and regulatory matters, which also may be impacted by various factors, including, without limitation, that they may involve indeterminate claims for monetary damages or may involve

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

fines, penalties or non-monetary remedies; present novel legal theories or legal uncertainties; involve disputed facts; represent a shift in regulatory policy; are in the early stages of the proceedings; or may result in a change of business practices. Further, there may be various levels of judicial review available to the Company in connection with any such proceeding.

The following is a description of certain lawsuits, claims, governmental investigations and audits and other legal proceedings to which the Company is subject.

Certain Governmental Inquiries and Related Proceedings

2020 U.S. Attorney New Jersey Investigation: In March 2020, the U.S. Attorney’s Office, District of New Jersey served the Company with a subpoena and a Civil Investigative Demand (CID) relating to an investigation being conducted by that office and the U.S. Attorney’s Office, Eastern District of Pennsylvania. The subpoena and CID request information on several topics, including certain of the Company’s joint venture arrangements with physicians and physician groups, medical director agreements, and compliance with its five-year Corporate Integrity Agreement, the term of which expired October 22, 2019. In November 2022, the Company learned that, on April 1, 2022, the U.S. Attorney’s Office for the District of New Jersey notified the U.S. District Court for the District of New Jersey of its decision not to elect to intervene in the matter of U.S. ex rel. Doe v. DaVita Inc. and filed a Stipulation of Dismissal. On April 13, 2022, the U.S. District Court for the District of New Jersey dismissed the case without prejudice. On October 12, 2022, the U.S. Attorney’s Office for the Eastern District of Pennsylvania notified the U.S. District Court, Eastern District of Pennsylvania, of its decision not to elect to intervene at this time in the matter of U.S. ex rel. Bayne v. DaVita Inc., et al. The court then unsealed an amended complaint, which alleges violations of federal and state False Claims Acts, by order dated October 14, 2022. On November 8, 2023, the private party relator filed a fourth amended complaint. On November 29, 2023, the Company filed a motion to dismiss the fourth amended complaint. On April 29, 2025, the Court denied the Company’s motion to dismiss. On July 21, 2025, the Company answered the complaint. The Company disputes the allegations in the complaint and intends to defend this action accordingly.

2020 California Department of Insurance Investigation: In April 2020, the California Department of Insurance (CDI) sent the Company an Investigative Subpoena relating to an investigation being conducted by that office. CDI issued a superseding subpoena in September 2020 and an additional subpoena in September 2021. Those subpoenas request information on a number of topics, including but not limited to the Company’s communications with patients about insurance plans and financial assistance from the American Kidney Fund (AKF), analyses of the potential impact of patients’ decisions to change insurance providers, and documents relating to donations or contributions to the AKF. The Company is continuing to cooperate with CDI in this investigation.

2023 District of Columbia Office of Attorney General Investigation: In January 2023, the Office of the Attorney General for the District of Columbia issued a CID to the Company in connection with an antitrust investigation into the AKF. The CID covers the period from January 1, 2016 to the present. The CID requests information on a number of topics, including but not limited to the Company’s communications with the AKF, documents relating to donations to the AKF, and communications with patients, providers, and insurers regarding the AKF. The Company is cooperating with the government in this investigation.

2024 Federal Trade Commission Investigation: In April 2024, the Company received from the Federal Trade Commission (FTC) two CIDs in connection with an industry investigation under Section 5 of the Federal Trade Commission Act regarding the acquisition of medical director services and provision of dialysis services. The CIDs cover the period from January 1, 2016 to the present and generally seek information relating to restrictive covenants, such as non-competes, with physicians. The Company is cooperating with the government in this investigation.

---

Although the Company cannot predict whether or when proceedings might be initiated or when these matters may be resolved (other than as may be described above), it is not unusual for inquiries such as these to continue for a considerable period of time through the various phases of document and witness requests and ongoing discussions with regulators and to develop over the course of time. In addition to the inquiries and proceedings specifically identified above, the Company frequently is subject to other inquiries by state or federal government agencies. Negative findings or terms and conditions that the Company might agree to accept could result in, among other things, substantial financial penalties or awards against the Company, substantial payments made by the Company, harm to the Company’s reputation, required changes to the Company’s business practices, an impact on the Company's various relationships and/or contracts related to the Company's business,

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

exclusion from future participation in the Medicare, Medicaid and other federal health care programs and, if criminal proceedings were initiated against the Company, members of its board of directors or management, possible criminal penalties, any of which could have a material adverse effect on the Company.

Other Proceedings

2021 Antitrust Indictment and Putative Class Action Suit: On July 14, 2021, an indictment was returned by a grand jury in the U.S. District Court, District of Colorado against the Company and its former chief executive officer in the matter of U.S. v. DaVita Inc., et al. alleging that purported agreements entered into by DaVita's former chief executive officer not to solicit senior-level employees violated Section 1 of the Sherman Act. On April 15, 2022, a jury returned a verdict in the Company’s favor, acquitting both the Company and its former chief executive officer on all counts. On April 20, 2022, the court entered judgments of acquittal and closed the case. On August 9, 2021, DaVita Inc. and its former chief executive officer were added as defendants in a consolidated putative class action complaint in the matter of In re Outpatient Medical Center Employee Antitrust Litigation in the U.S. District Court, Northern District of Illinois. This class action complaint asserts that the defendants violated Section 1 of the Sherman Act and seeks to bring an action on behalf of certain groups of individuals employed by the Company. On October 27, 2024, the plaintiffs filed a Third Amended Complaint, seeking to bring an action on behalf of certain groups of individuals employed by the Company between March 2008 and January 2021, to which the Company responded on December 20, 2024. On September 15, 2025, the plaintiffs filed a motion to certify the class. The Company disputes the allegations in the class action complaint and the motion to certify the class, as well as the asserted violations of the Sherman Act, and intends to defend this action accordingly.

Additionally, from time to time the Company is subject to other lawsuits, demands, claims, governmental investigations and audits and legal proceedings that arise due to the nature of its business, including, without limitation, contractual disputes, such as with payors, suppliers and others, employee-related matters and professional and general liability claims. From time to time, the Company also initiates litigation or other legal proceedings as a plaintiff arising out of contracts or other matters.

---

Other than as may be described above, the Company cannot predict the ultimate outcomes of the various legal proceedings and regulatory matters to which the Company is or may be subject from time to time, including those described in this Note 7, or the timing of their resolution or the ultimate losses or impact of developments in those matters, which could have a material adverse effect on the Company’s revenues, earnings and cash flows. Further, any legal proceedings or regulatory matters involving the Company, whether meritorious or not, are time consuming, and often require management’s attention and result in significant legal expense, and may result in the diversion of significant operational resources, may impact the Company's various relationships and/or contracts related to the Company's business or otherwise harm the Company’s business, results of operations, financial condition, cash flows or reputation.

Other commitments

On February 2, 2026, the Company signed a definitive agreement to acquire a noncontrolling minority interest in Elara Caring, a leading national provider of skilled home health, hospice, behavioral health, and personal care services for approximately $200,000. The closing of the transaction is subject to customary closing conditions, including receipt of regulatory approvals, and is expected to occur mid-year 2026.

8. Shareholders' equity

Stock-based compensation

During the three months ended March 31, 2026, the Company granted 628 stock-settled restricted and performance stock units with an aggregate grant-date fair value of $96,970. Additionally, the Company granted 98 stock-settled stock appreciation rights with an aggregate grant-date fair value of $5,460.

As of March 31, 2026, the Company had $184,269 in total estimated but unrecognized stock-based compensation expense under the Company's equity compensation and employee stock purchase plans. The Company expects to recognize this expense over a weighted average remaining period of 1.4 years.

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

Share repurchases

The following table summarizes the Company's common stock repurchases during the three months ended March 31, 2026:

			Three months ended March 31, 2026
			Shares repurchased						Amount paid**(1)**						Average amount**(2)**
Open market repurchases:			1,346						$	202,924					$	149.90
Berkshire repurchases:			1,658						199,940						$	120.56
Total repurchases:			3,005						$	402,864					$	133.70

(1)Includes commissions and excise tax, as applicable. The excise tax is recorded as part of the cost basis of treasury shares repurchased and, as such, is included in stockholders’ equity.

(2)Excludes commissions and excise tax.

Subsequent to March 31, 2026 through May 5, 2026, the Company repurchased 2,007 shares of its common stock for $301,811 at an average price paid of $149.81 per share, inclusive of the shares repurchased from Berkshire Hathaway Inc. as discussed below.

The Company is authorized to make share repurchases pursuant to prior Board authorizations. This authorization allows the Company to make purchases from time to time in the open market or in privately negotiated transactions, including without limitation, through accelerated share repurchase transactions, derivative transactions, tender offers, Rule 10b5-1 plans or any combination of the foregoing, depending upon market conditions and other considerations.

As of May 5, 2026, the Company has a total of $1,455,685, excluding excise taxes, available under current authorizations for additional share repurchases. Although these share repurchase authorizations do not have an expiration date, the Company remains subject to share repurchase limitations, including under the terms of its senior secured credit facilities.

Berkshire share repurchase agreement

Pursuant to the April 30, 2024 share repurchase agreement with Berkshire Hathaway Inc. on behalf of itself and its affiliates (collectively, Berkshire), the Company had a repurchase obligation at March 31, 2026 to purchase shares from Berkshire for $86,500 in the aggregate, recorded as a payable and classified as due to related party on the Company's consolidated balance sheet. Subsequent to March 31, 2026, as the Company continued open market share repurchases, the obligation to Berkshire increased. On May 1, 2026, the Company settled the Berkshire repurchase obligation in total for 1,220 shares of common stock for $182,865, at an average price paid of $149.84 per share.

See Note 18 to the Company's consolidated financial statements included in the 2025 10-K for further discussion of the Company’s relationship with Berkshire and the share repurchase agreement.

9. Accumulated other comprehensive loss

			Three months ended March 31, 2026																		Three months ended March 31, 2025
			Interest rate cap agreements						Foreign currency translation adjustments						Accumulated other comprehensive loss						Interest rate cap agreements						Defined benefit pension plan						Foreign currency translation adjustments						Accumulated other comprehensive loss
Beginning balance			$	(22,398)					$	(100,385)					$	(122,783)					$	(8,557)					$	46					$	(302,285)					$	(310,796)
Unrealized gains (losses)			6,867						27,793						34,660						(11,373)						—						90,856						79,483
Related income tax			(1,713)						—						(1,713)						2,838						—						—						2,838
			5,154						27,793						32,947						(8,535)						—						90,856						82,321
Reclassification into net income			3,834						—						3,834						2,009						—						—						2,009
Related income tax			(957)						—						(957)						(502)						—						—						(502)
			2,877						—						2,877						1,507						—						—						1,507
Ending balance			$	(14,367)					$	(72,592)					$	(86,959)					$	(15,585)					$	46					$	(211,429)					$	(226,968)

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

The interest rate cap agreement net realized losses reclassified into net income are recorded as debt expense in the corresponding consolidated statements of income. See Note 6 for further details.

10. Variable interest entities (VIEs)

At March 31, 2026, these condensed consolidated financial statements include total assets of VIEs of $602,328 and total liabilities and noncontrolling interests of VIEs to third parties of $228,092. There have been no material changes in the nature of the Company's arrangements with VIEs or its judgments concerning them from those described in Note 22 to the Company's consolidated financial statements included in the 2025 10-K.

11. Fair values of financial instruments

The Company measures the fair value of certain assets and noncontrolling interests subject to put provisions (redeemable equity interests classified as temporary equity) based upon certain valuation techniques that include observable or unobservable inputs and assumptions that market participants would use in pricing these assets, temporary equity and commitments. The Company has also classified assets and temporary equities that are measured at fair value on a recurring basis into the appropriate fair value hierarchy levels as defined by the Financial Accounting Standards Board (FASB).

The following table summarizes the Company’s assets and temporary equities measured at fair value on a recurring basis as of March 31, 2026:

			Total						Quoted prices in active markets for identical assets (Level 1)						Significant other observable inputs (Level 2)						Significant unobservable inputs (Level 3)
Assets:
Investments in equity securities			$	37,857					$	37,857
Interest rate cap agreements			$	21,305											$	21,305
Temporary equity:
Noncontrolling interests subject to put provisions			$	1,524,505																	$	1,524,505

Investments in equity securities represent investments in various open-ended registered investment companies (mutual funds) and are recorded at fair value estimated based on reported market prices or redemption prices, as applicable. See Note 4 for further discussion.

Interest rate cap agreements, which are classified in other long-term assets on the Company's consolidated balance sheet, are recorded at fair value estimated from valuation models utilizing the income approach and commonly accepted valuation techniques that use inputs from closing prices for similar assets and liabilities in active markets as well as other relevant observable market inputs at quoted intervals such as current interest rates, forward yield curves, implied volatility and credit default swap pricing. The Company does not believe the ultimate amount that could be realized upon settlement of these interest rate cap agreements would be materially different from the fair value estimates currently reported. See Note 6 for further discussion.

The estimated fair value of noncontrolling interests subject to put provisions is based principally on the higher of either estimated liquidation value of net assets or a multiple of earnings for each subject dialysis partnership, based on historical earnings, revenue mix, and other performance indicators that can affect future results. The multiples used for these valuations are derived from observed ownership transactions for dialysis businesses between unrelated parties in the U.S. in recent years, and the specific valuation multiple applied to each dialysis partnership is principally determined by its recent and expected revenue mix and contribution margin. As of March 31, 2026, an increase or decrease in the weighted average multiple used in these valuations of one times EBITDA would change the estimated fair value of these noncontrolling interests by approximately $225,000. See Notes 16 and 23 to the Company's consolidated financial statements included in the 2025 10-K for further discussion of the Company’s methodology for estimating the fair value of noncontrolling interests subject to put obligations. For a reconciliation of changes in noncontrolling interests subject to put provisions for the three months ended March 31, 2026, see the consolidated statements of equity.

The Company's fair value estimates for its senior secured credit facilities are based upon quoted bid and ask prices for these instruments, a level 2 input. For the Company's senior notes, fair value estimates are based on market level 1 inputs. For

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

acquisition obligations and other notes payable, the carrying values presented approximate their estimated fair values, based on estimates of their present values typically using level 2 interest rate inputs. See Note 6 for further discussion of the Company's debt.

Other financial instruments consist primarily of cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, investments in debt securities, accounts payable, other accrued liabilities and lease liabilities. The balances of financial instruments other than lease liabilities are presented in these condensed consolidated financial statements at March 31, 2026 at their approximate fair values due to the short-term nature of their settlements.

12. Segment reporting

The Company’s separate operating segments include its U.S. dialysis and related lab services business (its U.S. dialysis business), its U.S. integrated kidney care business, its U.S. other ancillary services and its operations in each foreign jurisdiction (collectively, its ancillary services). The Company also maintains a corporate administrative support function.

The Company’s operating segments have been defined based on the separate financial information that is regularly produced and reviewed by the Company’s chief operating decision maker, its Chief Executive Officer, in making decisions about allocating resources to and assessing the financial performance of the Company’s various operating lines of business. The chief operating decision maker does not review total assets by segment to make decisions regarding resources; therefore, the total assets by segment disclosure has not been included.

Currently, the U.S. dialysis and related lab services business qualifies as a separately reportable segment, and all other operating segments have been combined and disclosed in the other segments category. See Note 24 to the Company's consolidated financial statements included in the 2025 10-K for further description of how the Company determines and measures results for its operating segments.

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

The following is a summary of segment revenues, segment operating margin, and a reconciliation of segment operating margin to consolidated income before income taxes:

			Three months ended March 31,
			2026						2025
Segment revenues:
U.S. dialysis
Patient service revenues:
External sources			$	2,914,954					$	2,805,427
Intersegment revenues			20,472						11,734
U.S. dialysis patient service revenues			2,935,426						2,817,161
Other revenues
External sources			6,275						6,008
Total U.S. dialysis revenues			2,941,701						2,823,169
Other—Ancillary services
Patient service revenues			357,843						297,566
Other external sources			136,476						114,528
Intersegment revenues			3,288						2,728
Total ancillary services			497,607						414,822
Total net segment revenues			3,439,308						3,237,991
Elimination of intersegment revenues			(23,760)						(14,462)
Consolidated revenues			$	3,415,548					$	3,223,529
Significant segment expenses:
U.S. dialysis
Patient care costs			$	1,969,056					$	1,913,428
General and administrative			319,772						282,679
Depreciation and amortization			155,170						156,899
Other segment items(1)			(8,264)						(5,609)
U.S. dialysis segment expenses			2,435,734						2,347,397
Segment operating margin:
U.S. dialysis			505,967						475,772
Other—Ancillary services(2)			5,832						(2,809)
Total segment operating margin			511,799						472,963
Reconciliation of segment operating income to consolidated income before income taxes:
Corporate administrative support			(29,907)						(34,026)
Consolidated operating income			481,892						438,937
Debt expense			(145,131)						(135,055)
Other income (loss), net			4,473						(17,549)
Income from continuing operations before income taxes			$	341,234					$	286,333

(1)Other segment items for the Company's U.S. dialysis segment include equity income from nonconsolidated joint ventures for all periods presented.

(2)Includes depreciation and amortization of $22,659 and $19,552 for the three months ended March 31, 2026 and 2025, respectively.

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

Expenditures for property and equipment by reportable segment were as follows:

									Three months ended March 31,
															2026						2025
U.S. dialysis															$	88,441					$	113,591
Other—Ancillary services															13,577						29,667
															$	102,018					$	143,258

13. New accounting standards

New standards not yet adopted

In November 2024, the Financial Accounting Standards Board issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, which requires disaggregated disclosure of income statement expenses, including purchases of inventory, employee compensation, depreciation, and amortization. The amendments in this ASU are effective for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The amendments in this ASU may be applied prospectively or retrospectively, and early adoption is permitted. The Company is currently assessing the effect this guidance may have on its consolidated financial statements.

In September 2025, the Financial Accounting Standards Board issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use software (Subtopic 350-40), which requires capitalization of software costs when management has authorized and committed to funding a software project and it is probable that the project will be completed and used as intended. The amendments in this ASU are effective for fiscal years beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. The amendments in the ASU may be applied prospectively or retrospectively, and early adoption is permitted. The Company is currently assessing the effect this guidance may have on its consolidated financial statements.