CHE · 10-Q · 2026Q1 · Full report

Distribution Channels

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

Roto-Rooter delivers services through a network of company-owned branches, independent contractors and franchisees covering over 90% of the U.S. population. Independent contractor revenue in the quarter declined 3.3% (17,765 in Q1 2026 vs 18,362 in Q1 2025) while outside franchisee fees increased 6.8%, indicating divergent trends across channel partners. The mix shift toward company-owned and franchise fee revenue versus contractor operations affects margin profile and operational control. Management continues to report both company-owned and franchised/contractor channels as central to reach and service availability.