Core Insights - BrightSpring Health Services reported strong Q2 2025 results with GAAP revenue of $3,148 million, exceeding analyst estimates of $2,989.69 million, and adjusted EPS of $0.22, surpassing the estimate of $0.19, marking a 266.7% increase year-over-year [1][2][5] Financial Performance - Revenue grew 29.1% year-over-year, driven primarily by the Pharmacy Solutions segment, which reported revenue of $2,790 million, up 32% [5][6] - Adjusted EBITDA rose 28.8% to $143 million, reflecting effective cost management despite slower gross profit growth of 20.2% [6][7] - Net income from continuing operations remained flat at $8.5 million, indicating ongoing cost pressures, with significant non-cash items impacting profitability [7] Business Strategy - BrightSpring focuses on integrated pharmacy and home-based clinical care, serving over 450,000 patients and filling more than 41 million prescriptions in 2024 [3][4] - The company emphasizes operational excellence, patient satisfaction, and regulatory compliance as critical success factors [4] Service Offerings - Pharmacy Solutions is the largest service line, including specialty pharmacy products and home infusion therapies, with a 32% growth in specialty script volume [10] - Provider Services, which includes home health care and rehabilitation, also saw positive revenue growth and maintained high patient satisfaction [11] Regulatory Environment - The company is monitoring regulatory risks related to drug pricing and reimbursement rates, preparing for potential changes in 2026 [13] Outlook and Guidance - Management raised full-year 2025 revenue guidance to $12,200 million to $12,600 million and adjusted EBITDA guidance to $590–$605 million, attributing increases to strong pharmacy volume and operational gains [14]

Financial Data and Key Metrics Changes - BrightSpring's total revenue for Q2 2025 was $3,100,000,000, representing a 29% year-over-year growth, while adjusted EBITDA grew by 29% to $143,000,000 [9][30] - The EBITDA margin remained flat at 4.5% compared to the same quarter last year [9] - The company has increased its 2025 revenue and adjusted EBITDA guidance by $20,000,000, with adjusted EBITDA now expected to be between $590,000,000 and $605,000,000 [10][34] Business Line Data and Key Metrics Changes - Pharmacy Solutions revenue grew by 32% year-over-year to $2,800,000,000, with adjusted EBITDA also increasing by 32% [27][31] - Provider Services revenue was $358,000,000, reflecting an 11% growth year-over-year, with home health care revenue growing by 17% [30][16] - Specialty and Infusion business revenue grew by 39% year-over-year, driven by strong service levels and patient satisfaction [14][27] Market Data and Key Metrics Changes - The average daily census in home health care grew by 6% year-over-year, with home health and hospice census growth of 10% [17] - The company reported a 99% patient satisfaction score in rehab care and a 98% timely initiation of care in home health [12][17] - The company has a leading 98% dispense accuracy in home and community pharmacy services [12] Company Strategy and Development Direction - BrightSpring is focused on disciplined growth, leveraging its scale and best practices while investing in areas that enhance operational efficiencies [8][11] - The company aims to continue expanding its specialty pharmacy services, particularly in rare and complex disease therapies, with expectations of 16 to 18 additional launches over the next 12 to 18 months [14][78] - The divestiture of the Community Living business is expected to close in Q4 2025, which will allow the company to focus on its core operations [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth across all segments, particularly in infusion and home health services, driven by operational efficiencies and favorable market conditions [51][52] - The company anticipates that home health rates will improve in the future, despite current challenges [23][63] - Management highlighted the importance of maintaining high-quality care and patient satisfaction as key drivers of growth [11][19] Other Important Information - The company reported a net debt of approximately $2,500,000,000 with a leverage ratio of 3.6 times, aiming to reduce this to 2.0 to 2.5 times in the long term [32][57] - BrightSpring's operational cash flow is expected to exceed $300,000,000 in 2025, providing flexibility for future growth initiatives [32][56] Q&A Session Summary Question: Can you discuss the infusion performance in the quarter? - Management noted that the infusion business had its best quarter in a long time, with expectations for continued growth driven by new leadership and operational improvements [39][40] Question: What factors contributed to the increase in full-year guidance? - Management indicated that higher margins and continued momentum across the company, particularly in the provider segment, contributed to the raised guidance [50][51] Question: Can you provide insights on the growth in the home health business? - Management stated that the home health business is growing steadily, with expectations for improved rates in the future, despite current challenges [63][62] Question: How sustainable is the growth in specialty pharmacy? - Management expressed confidence in the sustainability of growth in specialty pharmacy, driven by strong service levels and ongoing investments [70][71] Question: What is the outlook for M&A activity? - Management indicated a focus on small tuck-in acquisitions while awaiting the outcomes of larger divestitures, maintaining a strong cash position for future opportunities [56][57]

Financial Data and Key Metrics Changes - BrightSpring's total revenue for Q2 2025 was $3,100,000,000, representing a 29% year-over-year growth [7][26] - Adjusted EBITDA for the quarter was $143,000,000, also reflecting a 29% increase compared to the same period last year [8][29] - The EBITDA margin remained flat at 4.5% compared to Q2 2024 [8][30] - The company has increased its 2025 revenue guidance to a range of $12,200,000,000 to $12,600,000, indicating a growth of 21.1% to 25.1% over 2024 [33] Business Line Data and Key Metrics Changes - Pharmacy Solutions revenue grew 32% year-over-year to $2,800,000,000, with adjusted EBITDA also increasing by 32% [7][12] - Provider Services revenue was $358,000,000, marking an 11% growth year-over-year, with home health care revenue growing 17% [28][15] - Specialty and Infusion business revenue grew 39% year-over-year, driven by strong service levels and patient satisfaction [13][14] Market Data and Key Metrics Changes - The average daily census in home health care grew 6% year-over-year to over 30,000, with hospice census growth of 10% [16] - Specialty scripts grew 38% in Q2, supported by both brand and generic drug growth [12][13] - The company reported a 99.99% dispense accuracy in home and community pharmacy services [11] Company Strategy and Development Direction - BrightSpring is focused on disciplined growth, leveraging scale and best practices while investing in areas that enhance care services [6][10] - The company aims to improve operational efficiencies and patient outcomes through continuous improvement initiatives [10][24] - BrightSpring is committed to maintaining high-quality services and expanding its market presence in home health, hospice, and specialty pharmacy [10][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth in the second half of 2025, driven by strong performance across all business segments [50][51] - The company anticipates favorable rate developments in hospice and home health services, which could enhance revenue [51][62] - Management highlighted the importance of ongoing investments in technology and operational improvements to sustain growth [50][52] Other Important Information - The Community Living divestiture is expected to close in Q4 2025, which will impact future financial reporting [6][9] - The company has a strong cash flow outlook, expecting to deliver over $300,000,000 in annual operating cash flow in 2025 [31] - BrightSpring's net debt outstanding was approximately $2,500,000,000, with a leverage ratio of 3.6 times [31] Q&A Session Summary Question: Can you discuss the infusion performance in the quarter and expectations for growth? - Management noted that the infusion business had its best quarter in a long time, with expectations for continued growth driven by new leadership and operational efficiencies [35][38] Question: What factors contributed to the increase in full-year guidance? - Management indicated that continued momentum across the company, particularly in the provider segment, and structural factors like the number of operational days contributed to the raised guidance [47][49] Question: Can you provide insights on the growth in the home health business? - Management stated that the home health rule would not have a material impact on the business, and they expect future rate support to improve as they grow into the market [59][62] Question: How sustainable is the growth in specialty pharmacy? - Management expressed confidence in the sustainability of growth in specialty pharmacy, attributing it to strong service levels and ongoing investments [66][69] Question: What is the outlook for generics and their impact on revenue growth? - Management highlighted the importance of driving generic utilization and the investments made in clinical liaison teams to support this growth [85][88]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited condensed consolidated financial statements for Q2 2025 are presented, with Community Living reclassified as discontinued operations Condensed Consolidated Balance Sheet Highlights (as of June 30, 2025) | Metric | Amount (in millions) | | :--- | :--- | | **Total Current Assets** | $2,647.96 | | **Total Assets** | $5,943.60 | | **Total Current Liabilities** | $1,505.37 | | **Total Liabilities** | $4,198.17 | | **Total Shareholders' Equity** | $1,742.89 | Condensed Consolidated Statement of Operations Highlights (Three Months Ended June 30, 2025) | Metric | Amount (in millions) | | :--- | :--- | | **Total Revenues** | $3,147.70 | | **Gross Profit** | $374.85 | | **Operating Income** | $48.56 | | **Net Income** | $27.54 | | **Diluted EPS** | $0.13 | Condensed Consolidated Statement of Cash Flows Highlights (Six Months Ended June 30, 2025) | Metric | Amount (in millions) | | :--- | :--- | | **Net cash provided by operating activities** | $150.67 | | **Net cash used in investing activities** | $(47.43) | | **Net cash used in financing activities** | $(94.26) | - The **Community Living business** has been classified as **discontinued operations** and **held for sale** as of the first quarter of 2025, following a definitive sale agreement, with historical financial data recast to reflect this change[44](index=44&type=chunk)[52](index=52&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2025 financial performance, highlighting 29.1% Q2 revenue growth and a 28.8% Adjusted EBITDA increase [Overview and Key Highlights](index=27&type=section&id=Overview%20and%20Key%20Highlights) BrightSpring plans to divest its Community Living business for $835 million to streamline focus and is no longer a 'controlled company' - The company entered into a definitive agreement to divest its **Community Living business** for **$835 million**, with the transaction expected to close in **late 2025**, intended to streamline service offerings and increase focus on senior and specialty populations[138](index=138&type=chunk)[166](index=166&type=chunk) Q2 2025 Financial Performance Highlights (vs. Q2 2024) | Metric | Q2 2025 | Change | % Change | | :--- | :--- | :--- | :--- | | Revenue | $3,147.7M | +$709.4M | +29.1% | | Net Income | $8.5M | Flat | 0.0% | | Adjusted EBITDA | $142.5M | +$31.9M | +28.8% | | Adjusted EPS | $0.22 | +$0.16 | +266.7% | - Following a secondary offering in June 2025, BrightSpring is **no longer a "controlled company"** under Nasdaq corporate governance standards[142](index=142&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Detailed Q2 2025 consolidated and segment-level financial results show 29.1% revenue growth to $3.15 billion, with flat net income Consolidated Results of Operations (Three Months Ended June 30) | Metric (in millions) | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | $3,147.70 | $2,438.25 | +29.1% | | **Gross Profit** | $374.85 | $312.18 | +20.1% | | **Operating Income** | $48.56 | $38.65 | +25.6% | | **Net Income** | $8.54 | $8.49 | +0.6% | - **Pharmacy Solutions segment revenue** grew **32.0% YoY** in Q2 2025 to **$2.79 billion**, primarily due to volume growth in prescriptions, especially specialty branded drugs, with **Segment EBITDA increased 32.0% to $124.7 million**[202](index=202&type=chunk)[203](index=203&type=chunk)[210](index=210&type=chunk) - **Provider Services segment revenue** grew **10.5% YoY** in Q2 2025 to **$357.6 million**, driven by volume growth and rate increases, with **Segment EBITDA increased 11.4% to $56.5 million**[221](index=221&type=chunk)[222](index=222&type=chunk)[227](index=227&type=chunk) [Non-GAAP Financial Measures](index=43&type=section&id=Non-GAAP%20Financial%20Measures) Key non-GAAP measures include EBITDA, Adjusted EBITDA, and Adjusted EPS, with Q2 2025 Adjusted EBITDA at $142.5 million, up 28.8% Reconciliation of Net Income to Adjusted EBITDA (Three Months Ended June 30) | Metric (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $8.54 | $8.49 | | EBITDA | $90.40 | $78.35 | | Total adjustments | $52.12 | $32.28 | | **Adjusted EBITDA** | **$142.52** | **$110.64** | Adjusted EPS (Three Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Diluted EPS | $0.04 | $0.04 | | **Adjusted EPS** | **$0.22** | **$0.06** | [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity improved to $548.2 million as of June 30, 2025, with H1 2025 operating cash flow at $150.7 million - **Total liquidity** stood at **$548.2 million** as of June 30, 2025, comprising **$70.1 million in cash** and **$478.2 million** available under its credit facilities[252](index=252&type=chunk) - **Net cash provided by operating activities** for the first six months of 2025 was **$150.7 million**, a significant turnaround from a **net cash use of $94.1 million** in the same period of 2024[254](index=254&type=chunk) - The company's **leverage ratio**, as calculated under its First Lien Credit Agreement, improved to **3.64x** at June 30, 2025, from **4.16x** at December 31, 2024[272](index=272&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from inflation on labor and pharmaceutical costs, and interest rate fluctuations on variable-rate debt - The primary impact of **inflation** is on **labor and pharmaceutical drug costs**, with **limited ability to pass on these increased costs** for services to Medicare and Medicaid patients due to **fixed reimbursement rates**[275](index=275&type=chunk)[278](index=278&type=chunk)[279](index=279&type=chunk) - The company is exposed to **interest rate risk** on its **variable-rate debt**, where a hypothetical **1% increase in interest rates** would **decrease annual net income and cash flows by $5.3 million**, a risk **partially hedged with interest rate swaps**[280](index=280&type=chunk)[281](index=281&type=chunk) [Item 4. Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control - Based on an evaluation by management, the company's **disclosure controls and procedures** were concluded to be **effective** as of June 30, 2025[282](index=282&type=chunk) - **No changes** occurred during the quarter ended June 30, 2025, that have **materially affected**, or are reasonably likely to materially affect, the company's **internal control over financial reporting**[283](index=283&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings not expected to materially affect financial condition, and the Silver case was finalized - The company is involved in various legal proceedings arising from the ordinary course of business, which are **not expected to have a material adverse effect** on its financial condition[285](index=285&type=chunk) - The **Silver matter**, a significant legal proceeding against PharMerica, was **finalized with a settlement agreement** in May 2024 and dismissed with prejudice in July 2024, with a total financial impact of **$120.0 million** that has been **fully paid**[118](index=118&type=chunk)[119](index=119&type=chunk) [Item 1A. Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the 2024 Annual Report on Form 10-K - There have been **no material changes to the risk factors** affecting the company's business from those disclosed in its 2024 Annual Report on Form 10-K[287](index=287&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On February 27, 2025, 26,001 restricted stock units were granted to a legal service provider, exempt from registration - On February 27, 2025, the company granted **26,001 restricted stock units** to a legal service provider in exchange for services, **exempt from registration** under Section 4(a)(2) of the Securities Act[288](index=288&type=chunk) [Item 3. Defaults Upon Senior Securities](index=49&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the period - None[289](index=289&type=chunk) [Item 4. Mine Safety Disclosures](index=49&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[290](index=290&type=chunk) [Item 5. Other Information](index=49&type=section&id=Item%205.%20Other%20Information) No other information is disclosed for the period - None[291](index=291&type=chunk) [Item 6. Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents and officer certifications - The report lists various exhibits filed, including the **Certificate of Incorporation**, **Bylaws**, agreements related to the company's **Tangible Equity Units**, and **officer certifications (302 and 906)**[293](index=293&type=chunk)

Financial Performance Highlights - Total revenue for the second quarter of 2025 was $3148 million, representing a 291% year-over-year growth[17] - Adjusted EBITDA for the second quarter of 2025 was $143 million, a 288% increase compared to the previous year[17] - Pharmacy Solutions revenue reached $2790 million, showing a 320% year-over-year increase[17] - Provider Services revenue was $358 million, reflecting a 105% year-over-year growth[17] Pharmacy Solutions Segment - Pharmacy Solutions segment EBITDA was $125 million, a 320% increase year-over-year[17] - Infusion and Specialty Pharmacy revenue was $2203 million, up 389% year-over-year[17] - Home and Community Pharmacy revenue was $587 million, an 110% increase year-over-year[17] - Prescriptions dispensed reached 10852 thousand, a 72% increase year-over-year, with revenue per script at $25711 and gross profit per script at $2154[24] Provider Services Segment - Provider Services segment EBITDA was $56 million, an 114% increase year-over-year[17] - Home Health Care revenue was $185 million, a 171% increase year-over-year, with an average daily census of 30085, a 64% increase year-over-year[17, 28]

Core Insights - BrightSpring Health Services, Inc. (BTSG) reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, and showing a significant increase from $0.10 per share a year ago, resulting in an earnings surprise of +15.79% [1] - The company achieved revenues of $3.15 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.40%, and up from $2.73 billion in the same quarter last year [2] - BrightSpring Health Services has outperformed the S&P 500, with shares increasing approximately 21.3% since the beginning of the year compared to the S&P 500's gain of 7.8% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $3.16 billion, and for the current fiscal year, it is $0.90 on revenues of $12.29 billion [7] - The estimate revisions trend for BrightSpring Health Services was favorable ahead of the earnings release, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Medical Services industry, to which BrightSpring belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Executive Summary & Business Update BrightSpring reports strong Q2 2025 results, updates full-year guidance, and announces a planned divestiture [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) BrightSpring Health Services reported strong Q2 2025 financial results, with significant revenue and Adjusted EBITDA growth, while net income from continuing operations remained flat. All figures exclude the Community Living business | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :-------------------------------- | :----------------- | :----------------- | :--------- | | Net Revenue | $3,148 | $2,438 | +29.1% | | Gross Profit | $375 | $312 | +20.1% | | Net Income from Continuing Operations | $8.5 | $8.5 | Flat | | Adjusted EBITDA | $143 | $111 | +28.8% | [Full Year 2025 Guidance Update](index=1&type=section&id=Full%20Year%202025%20Guidance%20Update) The company increased its full-year 2025 guidance for both Revenue and Adjusted EBITDA, which excludes the Community Living business and the effects of any future closed acquisitions | Metric | Revised FY 2025 Guidance (Millions) | | :---------------- | :-------------------------------- | | Revenue | $12,200 - $12,600 | | Adjusted EBITDA | $590 - $605 | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Jon Rousseau highlighted the company's strong overall business performance, attributing it to a focus on high-quality care, operational excellence, and strategic investments. He emphasized the commitment to delivering coordinated services and excellent care to complex patient populations in the Pharmacy and Provider businesses - CEO Jon Rousseau stated that **strong business performance** is underpinned by a focus on high-quality care, operational excellence, and investment in best practices across prioritized markets and services[2](index=2&type=chunk) - The company is committed to delivering coordinated services and excellent care to complex patient populations in its Pharmacy and Provider businesses, providing significant value to the healthcare system[2](index=2&type=chunk) [Planned Divestiture](index=1&type=section&id=Planned%20Divestiture) BrightSpring announced the planned divestiture of its Community Living business to Sevita, which is expected to close in Q4 2025 - Planned divestiture of Community Living business to Sevita, announced on January 20, 2025, is expected in **Q4 2025**[5](index=5&type=chunk) Company Information BrightSpring provides integrated home- and community-based pharmacy and provider health solutions for complex populations [About BrightSpring Health Services](index=3&type=section&id=About%20BrightSpring%20Health%20Services) BrightSpring Health Services is a leading provider of complementary home- and community-based pharmacy and provider health solutions for complex populations, offering integrated care across various service lines in all 50 states - BrightSpring provides complementary home- and community-based pharmacy and provider health solutions for complex populations needing specialized and/or chronic care[12](index=12&type=chunk) - The company offers comprehensive and integrated care and clinical solutions in all 50 states to over **460,000 customers, clients, and patients daily**, across service lines including pharmacy, home health care, primary care, rehabilitation, and behavioral health[12](index=12&type=chunk) - BrightSpring consistently demonstrates **strong quality metrics**, improving quality of life for high-need individuals and reducing overall healthcare system costs[12](index=12&type=chunk) Detailed Financial Performance This section details BrightSpring's Q2 2025 consolidated results and updated full-year 2025 guidance [Second Quarter 2025 Consolidated Results](index=1&type=section&id=Second%20Quarter%202025%20Consolidated%20Results) BrightSpring reported robust revenue growth and improved profitability metrics for Q2 2025, driven by strong performance in both Pharmacy Solutions and Provider Services segments. All figures exclude the Community Living business [Revenue Breakdown by Segment](index=2&type=section&id=Revenue%20Breakdown%20by%20Segment) Pharmacy Solutions and Provider Services segments contributed to significant year-over-year revenue growth in Q2 2025 | Revenue Segment | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Growth | | :---------------------- | :----------------- | :----------------- | :--------- | | Pharmacy Solutions | $2,790 | $2,114 | 32% | | Provider Services | $358 | $324 | 11% | | Total Revenue | $3,148 | $2,438 | 29% | [Segment EBITDA](index=2&type=section&id=Segment%20EBITDA) Both Pharmacy Solutions and Provider Services segments demonstrated strong EBITDA growth in Q2 2025 | EBITDA Segment | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Growth | | :-------------------------- | :----------------- | :----------------- | :--------- | | Pharmacy Solutions segment EBITDA | $125 | $94 | 32% | | Provider Services segment EBITDA | $56 | $51 | 11% | | Total Segment Adjusted EBITDA | $181 | $145 | 25% | | Total Company Adjusted EBITDA | $143 | $111 | 29% | [Full Year 2025 Financial Guidance Details](index=2&type=section&id=Full%20Year%202025%20Financial%20Guidance%20Details) BrightSpring increased its full-year 2025 financial guidance, projecting substantial growth in both total revenue and Adjusted EBITDA, with specific targets for each operating segment. This guidance excludes the Community Living business and the effects of any future closed acquisitions [Revenue Guidance by Segment](index=2&type=section&id=Revenue%20Guidance%20by%20Segment) BrightSpring projects substantial full-year 2025 revenue growth across both Pharmacy and Provider segments | Revenue Segment | FY 2025 Guidance (Millions) | Growth Rate (YoY) | | :---------------------- | :-------------------------- | :---------------- | | Net Revenue (Total) | $12,200 - $12,600 | 21.1% - 25.1% | | Pharmacy Segment Revenue | $10,750 - $11,100 | 22.8% - 26.8% | | Provider Segment Revenue | $1,450 - $1,500 | 10.0% - 13.8% | [Adjusted EBITDA Guidance](index=2&type=section&id=Adjusted%20EBITDA%20Guidance) The company anticipates significant growth in full-year 2025 Adjusted EBITDA | Metric | FY 2025 Guidance (Millions) | Growth Rate (YoY) | | :-------------- | :-------------------------- | :---------------- | | Adjusted EBITDA | $590 - $605 | 28.2% - 31.5% | Consolidated Financial Statements This section presents BrightSpring's consolidated balance sheets, statements of operations, and cash flows [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, BrightSpring reported an increase in total assets, primarily driven by a significant rise in current assets held for sale, while total liabilities slightly decreased, leading to an increase in total shareholders' equity | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :-------------- | :---------------- | :----- | | Total assets | $5,943,597 | $5,926,140 | +$17,457 | | Current assets held for sale | $850,455 | $131,447 | +$719,008 | | Total current assets | $2,647,959 | $1,893,054 | +$754,905 | | Total liabilities | $4,198,174 | $4,274,555 | -$76,381 | | Total shareholders' equity | $1,742,890 | $1,647,855 | +$95,035 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, BrightSpring experienced substantial revenue growth, leading to increased gross profit and operating income, with net income from continuing operations remaining stable. For the six months, the company turned a net loss into a net income | Metric (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :------ | :------ | :------- | :------- | | Total revenues | $3,147,698 | $2,438,254 | $6,025,827 | $4,724,020 | | Gross profit | $374,852 | $312,176 | $713,221 | $604,667 | | Operating income | $48,557 | $38,653 | $99,296 | $23,318 | | Income (loss) from continuing operations, net of income taxes | $8,541 | $8,486 | $17,757 | $(47,541) | | Net income (loss) | $27,542 | $19,441 | $56,552 | $(26,944) | | Basic EPS (Continuing operations) | $0.05 | $0.05 | $0.09 | $(0.25) | | Diluted EPS (Continuing operations) | $0.04 | $0.04 | $0.09 | $(0.25) | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q2 2025, BrightSpring generated positive net cash from operating activities, a significant improvement from a net cash outflow in the prior year, while investing activities remained a net cash outflow | Metric (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :------ | :------ | :------- | :------- | | Net cash provided by (used in) operating activities | $49,076 | $(15,225) | $150,674 | $(94,084) | | Net cash used in investing activities | $(23,243) | $(57,692) | $(47,434) | $(88,630) | | Net cash (used in) provided by financing activities | $(8,243) | $39,907 | $(94,261) | $194,670 | | Net increase (decrease) in cash and cash equivalents | $17,590 | $(33,010) | $8,979 | $11,956 | | Cash and cash equivalents at end of period | $70,232 | $25,027 | $70,232 | $25,027 | Non-GAAP Financial Measures This section defines BrightSpring's non-GAAP financial measures and provides reconciliations for key metrics [Definition and Rationale](index=5&type=section&id=Definition%20and%20Rationale) BrightSpring uses non-GAAP financial measures like EBITDA and Adjusted EBITDA to provide supplemental insights into its operating performance, believing they assist investors and analysts by excluding items not indicative of core operations and highlighting performance trends - Non-GAAP measures like EBITDA and Adjusted EBITDA are used as supplemental measures to assist investors and analysts in comparing operating performance across reporting periods consistently[19](index=19&type=chunk) - Management uses these measures to evaluate business strategies, make budgeting decisions, award incentive compensation, and compare performance against peers[21](index=21&type=chunk) - EBITDA is defined as net income (loss) from continuing operations before income tax expense (benefit), interest expense, net, and depreciation and amortization. Adjusted EBITDA further excludes non-cash share-based compensation, acquisition/integration/transaction-related costs, restructuring/divestiture-related costs, legal costs, significant projects, and management fees[23](index=23&type=chunk) [Reconciliation of EBITDA and Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA) The reconciliation shows a significant increase in Adjusted EBITDA for both the three and six months ended June 30, 2025, compared to the prior year, after adjusting for various non-cash and non-recurring items | Metric (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------- | :------ | :------ | :------- | :------- | | Net income (loss) | $8,541 | $8,486 | $17,757 | $(47,541) | | Income tax expense (benefit) | $1,238 | $(13,115) | $998 | $(39,619) | | Interest expense, net | $38,778 | $43,282 | $80,541 | $97,752 | | Depreciation and amortization | $41,839 | $39,700 | $82,671 | $78,936 | | EBITDA | $90,396 | $78,353 | $181,967 | $89,528 | | Total adjustments | $52,121 | $32,284 | $91,612 | $123,324 | | Adjusted EBITDA | $142,517 | $110,637 | $273,579 | $212,852 | - Key adjustments for Q2 2025 included **$19.5 million** for non-cash share-based compensation and **$19.8 million** for acquisition, integration, and transaction-related costs[33](index=33&type=chunk) [Reconciliation of Adjusted EPS](index=11&type=section&id=Reconciliation%20of%20Adjusted%20EPS) Adjusted EPS for Q2 2025 significantly increased to $0.22 from $0.06 in Q2 2024, and for the six months, it rose to $0.42 from $0.16, reflecting the impact of various non-GAAP adjustments | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------------------------------------------------- | :------ | :------ | :------- | :------- | | Diluted EPS | $0.04 | $0.04 | $0.09 | $(0.25) | | Non-cash share-based compensation (adjustment) | $0.09 | $0.06 | $0.15 | $0.19 | | Acquisition, integration, and transaction-related costs (adjustment) | $0.09 | $0.02 | $0.14 | $0.07 | | Restructuring and divestiture-related and other costs (adjustment) | $0.06 | $0.05 | $0.14 | $0.18 | | Adjusted EPS | $0.22 | $0.06 | $0.42 | $0.16 | Other Information This section covers BrightSpring's webcast, forward-looking statements, risk factors, and contact information [Webcast and Conference Call](index=3&type=section&id=Webcast%20and%20Conference%20Call) BrightSpring hosted a conference call on August 1, 2025, to discuss the Q2 2025 results, with a live and archived webcast available on its investor relations website - BrightSpring hosted a conference call on **August 1, 2025, at 8:30 a.m. Eastern Time**, for investors to discuss the second quarter 2025 financial results[10](index=10&type=chunk) - A live and archived webcast, along with supplemental financial information, is available on the 'Events & Presentations' section of the BrightSpring investor relations website[11](index=11&type=chunk) [Forward-Looking Statements and Risk Factors](index=3&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) The press release contains forward-looking statements subject to various risks and uncertainties, including competitive industry, changes in healthcare rates, reliance on personnel, and regulatory compliance, which could cause actual results to differ materially from expectations - The press release contains 'forward-looking statements' regarding operations and financial performance, identified by words such as 'anticipate,' 'expect,' 'guidance,' etc[13](index=13&type=chunk) - These statements are based on management's current expectations but are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify[14](index=14&type=chunk) - Key risk factors include operating in a **highly competitive industry**, changes to **Medicare and Medicaid rates**, cost containment initiatives, reliance on federal and state spending, changes in drug pricing, and the ability to recruit and retain qualified personnel[14](index=14&type=chunk)[15](index=15&type=chunk) [Investor and Media Contacts](index=6&type=section&id=Investor%20and%20Media%20Contacts) Contact information for investor relations and media inquiries is provided for BrightSpring Health Services - Investor Relations contact: **David Deuchler, CFA, Gilmartin Group LLC, ir@brightspringhealth.com**[25](index=25&type=chunk) - Media Contact: **Leigh White, leigh.white@brightspringhealth.com, 502.630.7412**[25](index=25&type=chunk)

Core Viewpoint - BrightSpring Health Services, Inc. reported strong financial results for Q2 2025, with significant increases in revenue and adjusted EBITDA, and has raised its full-year guidance for both metrics [1][6]. Financial Highlights - Net Revenue reached $3,148 million, a 29.1% increase from $2,438 million in Q2 2024 [3][6]. - Gross Profit was $375 million, up 20.1% from $312 million in Q2 2024 [3][6]. - Adjusted EBITDA rose to $143 million, reflecting a 28.8% increase compared to $111 million in Q2 2024 [3][6]. - Net Income from Continuing Operations was $8.5 million, unchanged from Q2 2024 [3][6]. Segment Performance - Pharmacy Solutions Revenue was $2,790 million, a 32% increase from $2,114 million in Q2 2024 [5]. - Provider Services Revenue reached $358 million, an 11% increase from $324 million in Q2 2024 [5]. Guidance Update - The company increased its 2025 Revenue guidance to between $12,200 million and $12,600 million, representing a growth of 21.1% to 25.1% [6][14]. - Adjusted EBITDA guidance for 2025 was raised to between $590 million and $605 million, indicating a growth of 28.2% to 31.5% [6][14]. Strategic Focus - The company emphasizes its commitment to high-quality care and operational excellence, particularly in its Pharmacy and Provider businesses, which are crucial for serving complex patient populations [2][12].

Core Viewpoint - BrightSpring Health Services, Inc. (BTSG) is expected to report a year-over-year increase in earnings and revenues for the quarter ended June 2025, with a consensus EPS estimate of $0.19, reflecting a 90% increase, and revenues projected at $2.99 billion, up 9.4% from the previous year [1][3]. Earnings Expectations - The stock price may rise if the actual earnings exceed expectations in the upcoming report, scheduled for August 1, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 3.68% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative Earnings ESP reading indicates the likely deviation of actual earnings from the consensus estimate, with a positive reading being a strong predictor of an earnings beat [9][10]. - For BrightSpring, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -8.11%, suggesting a bearish outlook [12]. Historical Performance - BrightSpring has beaten consensus EPS estimates in two out of the last four quarters, with a notable surprise of +137.50% in the last reported quarter [14][15]. Industry Comparison - CVS Health, a competitor in the Zacks Medical Services industry, is expected to report an EPS of $1.47, reflecting a year-over-year decrease of 19.7%, with revenues projected at $93.72 billion, up 2.7% [20]. - CVS Health has a positive Earnings ESP of +2.06% and a Zacks Rank of 2, indicating a likely earnings beat, having surpassed consensus EPS estimates in the last four quarters [20][21].

Company Overview - BrightSpring Health Services, Inc. (BTSG) is part of the Medical group, which consists of 986 companies and currently ranks 8 within the Zacks Sector Rank [2] - The company is categorized under the Medical Services industry, which includes 58 companies and is ranked 91 in the Zacks Industry Rank [6] Performance Metrics - Year-to-date, BTSG has returned approximately 17.8%, significantly outperforming the Medical sector's average return of -4.6% [4] - Over the past three months, the Zacks Consensus Estimate for BTSG's full-year earnings has increased by 23.3%, indicating improved analyst sentiment and earnings outlook [4] Zacks Rank - BrightSpring Health Services, Inc. currently holds a Zacks Rank of 2 (Buy), suggesting it is poised to outperform the broader market in the next one to three months [3] - In comparison, another Medical sector stock, Incyte (INCY), also has a Zacks Rank of 2 (Buy) and has returned 0.2% year-to-date [5][7]