CHE · 10-Q · 2026Q1 · Full report

Operating Expense Trends

CHEMED CORP · 2026-04-28 · Importance 31 · Surprise 32

Total SG&A for Q1 2026 was $114.3 million versus $105.6 million in Q1 2025, an increase driven primarily by higher SG&A at Roto-Rooter and market value adjustments. SG&A before long-term incentive compensation and market value adjustments was $108.9 million in Q1 2026, a 5.0% increase versus Q1 2025, with $3.9 million attributable to increased Roto-Rooter advertising in the quarter. Long-term incentive compensation decreased to $1.5 million in Q1 2026 from $2.7 million in Q1 2025, while market value adjustments added $3.9 million to SG&A in Q1 2026 versus a $(0.8) million impact a year earlier. The SG&A cost increase contributed to Roto-Rooter’s lower after-tax margin in the quarter.

Key facts

• Market value adjustment on assets held in deferred compensation trusts was $3,885 thousand for the three months ended March 31, 2026 versus $(830) thousand in prior year
• Net income included after-tax stock option expense of $(7,750) thousand for the three months ended March 31, 2026
• Depreciation expense for the three months ended March 31, 2026: consolidated $14,303 thousand (VITAS $5,912; Roto-Rooter $8,379)
• SG&A expenses before long-term incentive compensation and market value adjustments increased 5.0% in the first quarter of 2026 versus first quarter of 2025
• SG&A expenses before long-term incentive compensation and market value adjustments for the three months ended March 31, 2026: $108,931 thousand
• SG&A expenses before long-term incentive compensation and market value adjustments for the three months ended March 31, 2025: $103,760 thousand
• Total SG&A expenses for the three months ended March 31, 2026: $114,321 thousand
• Total SG&A expenses for the three months ended March 31, 2025: $105,587 thousand

Impact estimates