Financial Performance - Revenues for Q3 2025 were approximately $3,334 million, representing a 28.2% increase from approximately $2,601 million in Q3 2024[4] - Gross Profit for Q3 2025 was approximately $392 million, up 21.3% compared to approximately $323 million in Q3 2024[4] - Net income for Q3 2025 was approximately $37.5 million, a turnaround from a net loss of approximately $25.7 million in Q3 2024[4] - Adjusted EBITDA for Q3 2025 was approximately $160 million, reflecting a 37.2% increase from approximately $117 million in Q3 2024[4] - Total revenues for Q3 2025 reached $3,334,106, a 28.1% increase from $2,601,229 in Q3 2024[23] - Gross profit for Q3 2025 was $392,008, up 21.4% from $323,092 in Q3 2024[23] - Operating income for Q3 2025 increased to $87,843, compared to $29,097 in Q3 2024, representing a 201.5% growth[23] - Net income for Q3 2025 was $55,241, a significant recovery from a net loss of $8,981 in Q3 2024[23] - Adjusted EBITDA for the nine months ended September 30, 2025, was $434,022, up 31.6% from $329,792 in the same period of 2024[24] Guidance and Projections - The company increased its 2025 Revenue guidance to between $12,400 million and $12,700 million, indicating growth of 23.1% to 26.1% compared to 2024[4] - Adjusted EBITDA guidance for 2025 was raised to between $605 million and $615 million, representing growth of 31.5% to 33.7% compared to 2024[4] - Pharmacy Segment Revenue is projected to be between $10,950 million and $11,200 million, reflecting growth of 25.1% to 27.9%[4] - Provider Segment Revenue is expected to be between $1,450 million and $1,500 million, indicating growth of 10.0% to 13.8%[4] Balance Sheet and Cash Flow - Cash and cash equivalents increased to $140,344 as of September 30, 2025, compared to $60,954 at the end of 2024[21] - Total assets grew to $6,049,497 as of September 30, 2025, from $5,926,140 at the end of 2024[21] - Total current liabilities increased to $1,549,970 as of September 30, 2025, compared to $1,428,333 at the end of 2024[21] Shareholder Metrics - The company reported a basic income per share of $0.19 for continuing operations in Q3 2025, compared to a loss of $0.13 in Q3 2024[23] - Diluted EPS for Q3 2025 is $0.17, compared to $(0.13) in Q3 2024, showing a significant improvement[27] - Adjusted EPS for the nine months ended September 30, 2025, is $0.69, up from $0.20 in the same period of 2024[27] - The weighted average common shares outstanding for diluted EPS calculation in Q3 2025 is 217,982 thousand, compared to 198,491 thousand in Q3 2024[27] Costs and Expenses - Non-cash share-based compensation for Q3 2025 is $0.07, slightly up from $0.06 in Q3 2024[27] - Acquisition, integration, and transaction-related costs contributed $0.03 to EPS in Q3 2025, down from $0.06 in Q3 2024[27] - Restructuring and divestiture-related costs remained stable at $0.06 for Q3 2025 and Q3 2024[27] - Legal costs and settlements had no impact on Q3 2025 EPS, while they contributed $0.04 in Q3 2024[27] - The income tax impact on adjustments for Q3 2025 is $(0.03), compared to $(0.06) in Q3 2024[28] - Significant projects had no impact on EPS for Q3 2025, while they contributed $0.00 in Q3 2024[27] - Management fees had no impact on Q3 2025 EPS, but contributed $0.12 in Q3 2024[27] Strategic Initiatives - The company plans to divest its Community Living business to Sevita, with the transaction expected to close in early Q1 2026[4] - The leverage ratio was approximately 3.31x as of September 30, 2025, including the results of the Community Living business in the calculation[4] - Goodwill increased slightly to $2,370,566 as of September 30, 2025, from $2,363,884 at the end of 2024[21]

Core Viewpoint - BrightSpring Health Services, Inc. announced a secondary offering of 15,000,000 shares of common stock by certain stockholders, with no shares being sold by the company itself [1] Group 1: Offering Details - The secondary offering will be conducted by selling stockholders, including an affiliate of Kohlberg Kravis Roberts & Co. L.P. and certain management members [1] - The company has authorized a concurrent share repurchase of up to 10% of the shares sold in the offering or $50 million, whichever is less, at the same price per share as the underwriter [2] - BofA Securities is acting as the sole book-running manager for the offering, which will be sold at market prices or negotiated prices [3] Group 2: Regulatory and Documentation - A shelf registration statement related to these securities was filed with the SEC on June 10, 2025, and became effective upon filing [4] - The offering will be made only by means of a preliminary prospectus supplement and accompanying prospectus, which can be obtained from BofA Securities [5]

Core Insights - BrightSpring Health Services, Inc. reported preliminary financial results for Q3 2025, showing significant revenue growth and improved Adjusted EBITDA guidance [1][2][5] Financial Performance - Total revenue for Q3 2025 reached approximately $3,334 million, a 28.2% increase from $2,601 million in Q3 2024 [5][4] - Gross profit for Q3 2025 was approximately $392 million, up 21.3% from $323 million in Q3 2024 [5][4] - The company achieved a net income of approximately $37.5 million in Q3 2025, compared to a net loss of approximately $25.7 million in Q3 2024 [5][4] - Adjusted EBITDA for Q3 2025 was approximately $160 million, reflecting a 37.2% increase from $117 million in Q3 2024 [5][4] Segment Performance - Pharmacy Solutions revenue for Q3 2025 was $2,967 million, a 31% increase from $2,266 million in Q3 2024 [4][5] - Provider Services revenue for Q3 2025 was $367 million, a 9% increase from $336 million in Q3 2024 [4][5] - Total Adjusted EBITDA for the company was $202 million for Q3 2025, up 33% from $151 million in Q3 2024 [6][5] Future Guidance - The company increased its 2025 revenue guidance to between $12,400 million and $12,700 million, representing a growth of 23.1% to 26.1% compared to 2024 [5][4] - Adjusted EBITDA guidance for 2025 is set between $605 million and $615 million, indicating a growth of 31.5% to 33.7% [5][4] Upcoming Events - BrightSpring will announce full Q3 results on October 28, 2025, and will host a conference call at 4:30 p.m. Eastern Time on the same day [3][1]

Core Viewpoint - BrightSpring Health Services Inc. will replace Veritex Holdings Inc. in the S&P SmallCap 600 effective October 20, 2025, due to an acquisition by Huntington Bancshares Inc. of Veritex Holdings [1] Group 1: Company Changes - BrightSpring Health Services Inc. will be added to the S&P SmallCap 600 index [1] - Veritex Holdings Inc. will be removed from the S&P SmallCap 600 index [1] - The effective date for these changes is October 20, 2025 [1] Group 2: Acquisition Details - Huntington Bancshares Inc. is acquiring Veritex Holdings Inc. [1] - The acquisition is expected to close soon, pending final closing conditions [1]

Core Insights - BrightSpring Health Services, Inc. (BTSG) is positioned to potentially continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates by an average of 76.64% in the last two quarters [1][2]. Earnings Performance - For the last reported quarter, BrightSpring Health Services, Inc. achieved earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, resulting in a surprise of 15.79% [2]. - In the previous quarter, the company was expected to post earnings of $0.08 per share but delivered $0.19 per share, leading to a significant surprise of 137.50% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for BrightSpring Health Services, Inc., with a positive Zacks Earnings ESP (Expected Surprise Prediction), indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for BrightSpring Health Services, Inc. is +49.89%, suggesting that analysts have recently become more optimistic about the company's earnings prospects [8]. Zacks Rank and Success Rate - The combination of a positive Earnings ESP and a Zacks Rank 3 (Hold) suggests that the company is likely to beat earnings estimates, with historical data indicating that such combinations result in positive surprises nearly 70% of the time [6][8].

Core Viewpoint - BrightSpring Health Services, Inc. is set to release its third quarter 2025 financial results on October 31, 2025, prior to an earnings conference call scheduled for 8:30 a.m. ET on the same day [1]. Company Overview - BrightSpring Health Services provides home- and community-based pharmacy and provider health solutions for complex populations requiring specialized and chronic care [3]. - The company operates across all 50 states, serving over 460,000 customers, clients, and patients daily through various service lines, including pharmacy, home health care, primary care, rehabilitation, and behavioral health [3]. - BrightSpring has shown strong quality metrics across its service lines, contributing to improved health outcomes for high-need individuals while reducing overall healthcare costs [3].

Summary of BrightSpring Health Services Conference Call Company Overview - BrightSpring Health Services is a leading provider of home and community healthcare services in the U.S. [2] - The company serves approximately 400,000 individuals daily, focusing on high-quality, impactful services [3][4]. Business Segments Pharmacy Platform - The pharmacy platform includes closed-door home and community pharmacy services, specialty pharmacy, and infusion services [3]. - BrightSpring processes over 40 million prescriptions annually, catering to patients with specialized needs [3]. - The specialty pharmacy and oncology business have been significant growth drivers, with expectations of 20%+ growth [11][9]. Provider Platform - The provider platform encompasses home health, rehab, hospice, and personal care services [4]. - The company anticipates a growth rate of 12% to 15% for its provider business this year [9]. - The integration of services allows for better coordination of care, reducing hospitalizations by 50% [4]. Primary Care Platform - The primary care platform focuses on home-based primary care, enhancing care coordination for patients with multiple chronic conditions [30][32]. - The company has entered into value-based care arrangements, showing a 10% to 15% cost reduction with improved outcomes [33]. Financial Performance - BrightSpring has achieved a historical revenue and EBITDA CAGR of 15%, with recent acceleration towards 30% growth this year [7][10]. - The company aims to maintain a mid-teens growth rate moving forward [10]. M&A Strategy - BrightSpring has a history of small tuck-in acquisitions, averaging 10 to 15 deals annually, primarily in the $10 to $15 million EBITDA range [38][41]. - The company has successfully completed 68 deals historically, with a high success rate in increasing EBITDA post-acquisition [41]. Balance Sheet and Deleveraging - The company expects to exit 2025 with a leverage ratio of around 3x, targeting 2x by 2026 [36][43]. - Positive cash flow generation supports deleveraging efforts, with potential for increased acquisition activity in 2026 [36]. Regulatory Environment - BrightSpring is actively engaging with payers regarding potential reimbursement changes due to the IRA, with expectations of manageable impacts [46][48]. - The company anticipates that home health reimbursement will eventually align with the ROI of home health services [48]. Key Takeaways - BrightSpring's integrated service model across pharmacy, provider, and primary care enhances operational efficiencies and patient outcomes [49]. - The company's focus on scale, quality, and technology positions it well within the growing home and community healthcare market [2][4]. - BrightSpring's strategic approach to M&A and capital deployment aims to sustain growth while maintaining a healthy balance sheet [38][43].

Core Insights - BrightSpring Health Services, Inc. (NASDAQ:BTSG) is recognized as one of the 11 best-performing IPOs in the last two years, with a significant price target elevation by analysts following a strong second quarter performance and improved revenue and adjusted EBITDA guidance [1][2]. Financial Performance - The company reported a 29% year-over-year revenue growth, reaching $3.1 billion for Q2 2025 [2]. - Revenue in its Pharmacy Solutions segment grew by 32% year-over-year, with specialty scripts increasing by 38% [2]. - Following this performance, the company raised its revenue and adjusted EBITDA guidance for 2025, indicating a positive outlook [2]. Analyst Ratings and Price Targets - Analysts have raised their price targets for BTSG, with Deutsche Bank increasing it from $25 to $30 and Bank of America from $27.50 to $31 [3]. - The consensus rating for the stock remains a Buy, reflecting strong market confidence [3]. Company Background - BrightSpring Health Services, Inc. was founded in 1974 and is headquartered in Kentucky, specializing in home and community-based health and pharmacy services for individuals with complex health needs [4]. Stock Performance - Since its IPO, BTSG has demonstrated significant growth, with a total growth percentage of 147.09% to date [3].

Core Viewpoint - BrightSpring Health Services Inc. (NASDAQ:BTSG) is identified as a strong growth stock under $30, with a recent price target increase from BofA to $31, maintaining a Buy rating despite concerns over a more negative policy and reimbursement environment [1][3]. Financial Performance - In Q2 2025, BrightSpring Health reported total revenue of $3.1 billion, reflecting a 29% year-over-year increase [2]. - Adjusted EBITDA also increased by 29% to $143 million, while the EBITDA margin remained flat at 4.5% compared to the previous year [2]. - Gross profit for the quarter was $375 million, marking a 20% increase [2]. Segment Performance - The Pharmacy Solutions segment was the main growth driver, with revenue rising 32% year-over-year to $2.8 billion [3]. - Infusion and Specialty Revenue within this segment saw a significant 39% increase, reaching $2.2 billion, while specialty scripts grew by 38% [3]. - Home & Community Pharmacy Revenue grew by 11% to $587 million, contributing to the overall growth in gross profit per script [3]. Company Overview - BrightSpring Health Services operates as a home and community-based healthcare services platform in the US, divided into two segments: Pharmacy Solutions and Provider Services [4].

Market Environment - The market is influenced by changes in monetary policies and global economic uncertainties, with sticky consumer price inflation being weighed against a softening U.S. labor market [2] - Investors are optimistic about a potential first rate cut from the Federal Reserve, with futures pricing in about 70 basis points of cuts over the next three meetings [2] - Global economic pressures are increasing, with weak factory output and retail sales data from China contributing to expectations for additional stimulus [3] - Despite these pressures, market sentiment remains strong, as evidenced by MSCI's Asia-Pacific ex-Japan index nearing four-year highs and South Korea's Kospi hitting a record [3] IPO Performance - The easing monetary policy and cautious optimism are shifting investor focus towards IPOs, with a list of the 11 best performing IPOs over the last two years being highlighted [4] - The methodology for selecting these IPOs includes only those that have issued in the last two years, ranked by their maximum growth rate since the IPO date [6] Company Highlights - **Tempus AI, Inc. (NASDAQ:TEM)**: - IPO Date: June 14, 2024 - Growth since IPO: 111.50% - Q2 2025 revenue reached $314.6 million, a 89.6% increase, driven by a 115% increase in Genomics revenue [10][11] - FDA approval for Tempus Pixel enhances its market position [9][10] - **BrightSpring Health Services, Inc. (NASDAQ:BTSG)**: - IPO Date: January 26, 2024 - Growth since IPO: 147.09% - Q2 2025 revenue of $3.1 billion, a 29% year-over-year increase, with Pharmacy Solutions revenue growing by 32% [14][15] - Analysts have raised price targets following strong performance [15] - **GRAIL, Inc. (NASDAQ:GRAL)**: - IPO Date: June 25, 2024 - Growth since IPO: 169.02% - Q2 2025 revenue of $35.5 million, an 11% increase, with strong demand for Galleri tests [18][19] - Partnerships with major health systems and positive study updates enhance outlook [18][20]