As used herein, the terms “We,” “Company” and “Chemed” refer to Chemed Corporation or Chemed Corporation and its consolidated subsidiaries.

We have prepared the accompanying unaudited consolidated financial statements of Chemed in accordance with Rule 10-01 of SEC Regulation S-X. Consequently, we have omitted certain disclosures required under generally accepted accounting principles in the United States (“GAAP”) for complete financial statements. The December 31, 2025 balance sheet data were derived from audited financial statements but do not include all disclosures required by GAAP. However, in our opinion, the financial statements presented herein contain all adjustments, consisting only of normal recurring adjustments, necessary to state fairly our financial position, results of operations and cash flows. The results of operations for the six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026 or any other future period, and we make no representations related thereto. These financial statements are prepared on the same basis as and should be read in conjunction with the audited Consolidated Financial Statements and related Notes included in our Annual Report on Form 10-K for the year ended December 31, 2025.

Our effective income tax rate was 25.9% in the second quarter of 2026 compared to 26.2% during the second quarter of 2025. Excess tax expense/benefit on stock options exercised were immaterial for the quarters ended June 30, 2026 and 2025, respectively.


	Three months ended June 30,
	2026			2025

Income tax provision calculated at the statutory federal rate	$	19,179		$	14,934
State and local income taxes, less federal income tax effect		2,811			2,261
Nondeductible expenses:
Stock compensation tax expense/(benefit)		445			(50)
Other--net		1,191			1,477
Income tax provision	$	23,626		$	18,622
Effective tax rate		25.9	%		26.2	%

Our effective income tax rate was 25.6% in the first six months of 2026 compared to 25.5% during the first six months of 2025. Excess tax expense/benefit on stock options exercised were immaterial for the first six months ended June 30, 2026 and 2025, respectively.


	Six months ended June 30,
	2026			2025

Income tax provision calculated at the statutory federal rate	$	37,835		$	35,026
State and local income taxes, less federal income tax effect		5,529			6,448
Nondeductible expenses:
Stock compensation tax expense/(benefit)		501			(513)
Other--net		2,299			1,578
Income tax provision	$	46,164		$	42,539
Effective tax rate		25.6	%		25.5	%

Included in the accompanying Consolidated Balance Sheets are $1.2 million and $2.1 million of capitalized property and equipment which were not paid for as of June 30, 2026 and December 31, 2025, respectively. Accrued property and equipment purchases have been excluded from capital expenditures in the accompanying Consolidated Statements of Cash Flows. There are no material non-cash amounts included in interest expense for any period presented.

We account for acquired businesses using the acquisition method of accounting. All assets acquired and liabilities assumed are recorded at their respective fair values at the date of acquisition. The determination of fair value involves estimates and the use of valuation techniques when market value is not readily available. We use various techniques to determine fair value in accordance with accepted valuation models, primarily the income approach. The significant assumptions used in developing fair values include, but are not limited to, revenue growth rates, the amount and timing of future cash flows, discount rates, useful lives, royalty rates and future tax rates. The excess of purchase price over the fair value of assets and liabilities acquired is recorded as goodwill. See Note 15 for discussion of recent acquisitions.

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying Notes. Actual results could differ from those estimates. Disclosures of after-tax expenses and adjustments are based on estimates of the effective income tax rates for the applicable segments.