CHE · 10-Q · 2026Q1 · Full report

Corporate Expense Increase

CHEMED CORP · 2026-04-28 · Importance 30 · Surprise 40

After-tax Corporate expenses increased 19.1% in Q1 2026 versus Q1 2025, driven primarily by a $1.5 million increase in intercompany interest expense, a lower tax benefit from fewer stock option exercises, and a $1.2 million decrease in interest income partially offset by lower stock-based compensation. These increases amplified consolidated corporate drag on net income despite segment-level profitability at VITAS and Roto-Rooter. The company highlights that Corporate expenses and certain stock-compensation timing effects materially impacted consolidated EPS calculation. Management continues to monitor corporate financing costs and tax impacts related to stock compensation activity.

Key facts

• Corporate after-tax expenses increased 19.1% in the first quarter of 2026 versus first quarter of 2025 due primarily to a $1.5 million increase in intercompany interest expense, a lower tax benefit related to reduced stock option exercises, and a $1.2 million decrease in interest income, offset by an $881,000 decrease in stock-based compensation
• $3.9 million of the SG&A increase in the first quarter of 2026 was the result of increased advertising at Roto-Rooter
• Corporate net loss for the three months ended March 31, 2026: $(21,689) thousand

Impact estimates