Company Overview - BrightSpring Health Services, Inc. (BTSG) is part of the Medical group, which consists of 1001 companies and currently ranks 5 within the Zacks Sector Rank [2] - The company is classified under the Medical Services industry, which includes 58 individual companies and is ranked 66 in the Zacks Industry Rank [6] Performance Metrics - Year-to-date, BTSG has increased by approximately 28.2%, while the average performance of Medical stocks has declined by 5.5% [4] - The Zacks Consensus Estimate for BTSG's full-year earnings has risen by 0.2% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [4] Comparative Analysis - Another Medical stock, Cencora (COR), has also outperformed the sector with a year-to-date return of 29.4% and a Zacks Rank of 2 (Buy) [5] - Both BrightSpring Health Services, Inc. and Cencora are performing better than their respective industry averages, with the Medical Services industry averaging a loss of 3% this year [6] Investment Outlook - Investors interested in Medical stocks should closely monitor BrightSpring Health Services, Inc. and Cencora for potential continued strong performance [7]

Financial Data and Key Metrics Changes - Total company revenue for Q1 2025 was $2,900,000,000, representing a 26% year-over-year growth [8][26] - Adjusted EBITDA for the company was $131,000,000, growing 28% compared to the same period last year [9][28] - EBITDA margin increased in the quarter despite fewer days in Q1 2025 compared to Q1 2024, which was a leap year [9][28] Business Line Data and Key Metrics Changes - Pharmacy Solutions revenue was $2,500,000,000, achieving 28% growth year-over-year [8][26] - Provider Services revenue was $346,000,000, representing 12% growth compared to the prior year [8][26] - Within Provider Services, home health care revenue grew 21% to $178,000,000, rehab revenue grew 5% to $70,000,000, and personal care revenue grew 3% to $98,000,000 [27][20] Market Data and Key Metrics Changes - Specialty and Infusion business revenue grew 33% year-over-year, with total script volume growth of 20% [13][14] - Home and community pharmacy revenue grew 14%, driven by increased script volumes and new customers [15][26] Company Strategy and Development Direction - The company is focused on high-quality operations and disciplined investments to drive efficiency, with a commitment to delivering coordinated care in home and community settings [7][10] - A planned divestiture of the Community Living business is expected to close in the second half of 2025, which will be reported in discontinued operations [7][8] - The company expects to continue its growth trajectory, with a mid-teens revenue and EBITDA CAGR over the past nine years [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain growth despite potential regulatory changes, including the IRA [39][42] - The company anticipates strong demand for its services, supported by loyal referral sources and new market investments [10][19] - Management expects to deliver over $300,000,000 of annual run rate operating cash flows in 2025, with a focus on improving leverage ratios [31][32] Other Important Information - The company has a robust pipeline of generic drug launches, with expectations for 16 to 18 additional launches over the next 12 to 18 months [15] - Approximately 50% of the company's drug supply comes from the U.S. and North America, mitigating potential impacts from future pharma tariffs [17][18] Q&A Session Summary Question: What drove the strong gross profit per script in the quarter? - Management indicated that the increase was due to a favorable mix of drugs and proactive purchasing efforts [36] Question: How does the IRA impact pharmacy trends for the second half of the year? - Management stated that they do not foresee any significant changes in pharmacy growth rates due to the IRA [38][42] Question: Can you provide an update on the Amedisys acquisition? - Management noted that they are subject to confidentiality and could not provide specific details but emphasized their quality and platform strength [54] Question: What are the potential scenarios around tariffs? - Management explained that any potential tariff impacts would likely be manageable and that reimbursement for brand drugs is tied to cost [60] Question: How does the infusion business growth outlook look? - Management expressed optimism about the infusion market and indicated they are on pace to meet internal growth budgets [92] Question: What is the guidance update for 2025? - Management increased revenue guidance to $12,000,000,000 to $12,500,000,000 and adjusted EBITDA guidance to $570,000,000 to $585,000,000 [32][33]

Financial Data and Key Metrics Changes - Total company revenue for Q1 2025 was $2.9 billion, representing a 26% year-over-year growth [7][27] - Pharmacy solutions revenue was $2.5 billion, achieving 28% growth year-over-year [7][27] - Provider services revenue was $346 million, reflecting a 12% growth compared to the prior year [7][27] - Adjusted EBITDA for the company was $131 million, growing 28% year-over-year [7][29] - Adjusted EBITDA margin improved despite calendar dynamics, with a negative impact from fewer days in Q1 2025 compared to Q1 2024 [9][29] Business Line Data and Key Metrics Changes - In the pharmacy segment, total revenue grew 28% in Q1, with adjusted EBITDA increasing by 31% [13][30] - Specialty and infusion business revenue grew 33% year-over-year, driven by new drug launches [13][30] - Home health care revenue grew 21% year-over-year, while rehab revenue increased by 5% and personal care revenue grew by 3% [20][28] Market Data and Key Metrics Changes - The company continues to see strong demand for home and community-based health services, with a focus on high-quality care [10][19] - The company has maintained a mid-teens revenue and EBITDA CAGR over the past nine years, indicating consistent growth [19] Company Strategy and Development Direction - The company is focused on leveraging its scale and investing in operational efficiencies to drive growth [6][10] - A planned divestiture of the Community Living business is expected to close in the second half of 2025, which will be reported in discontinued operations [6][7] - The company is optimistic about growth opportunities in pharmacy and provider businesses, particularly in assisted living and behavioral health [25][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth despite potential regulatory changes, including the IRA [38][42] - The company expects to deliver over $300 million in annual operating cash flows in 2025, with a focus on improving leverage ratios [31][32] - Management remains optimistic about the infusion business and its growth potential [90] Other Important Information - The company has a robust pipeline for generic drug launches, which is expected to enhance profitability [51] - Approximately 50% of the company's drug supply comes from the U.S. and North America, mitigating potential tariff impacts [17][19] Q&A Session Summary Question: What drove the strong gross profit per script in the quarter? - Management attributed the increase to a favorable mix of drugs and proactive purchasing efforts [35] Question: How does the IRA impact pharmacy growth in the second half of the year? - Management does not foresee a significant impact from the IRA on pharmacy growth rates [38][42] Question: Can you provide an update on the Amedisys acquisition? - Management stated that they are subject to confidentiality and cannot disclose details but emphasized their strong platform and lack of geographical overlap [54] Question: What are the potential scenarios around tariffs? - Management indicated that there are currently no meaningful tariffs in place and that any potential increases would be manageable [58][60] Question: Is the Amedisys deal indicative of more M&A activity? - Management confirmed that the deal aligns with their acquisition philosophy and does not impact leverage goals [66][68] Question: What is the guidance update for 2025? - Management increased revenue guidance to $12 billion to $12.5 billion, reflecting strong pharmacy performance [32][33]

Company Performance - BrightSpring Health Services, Inc. reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, and up from $0.12 per share a year ago, representing an earnings surprise of 137.50% [1] - The company posted revenues of $2.88 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.44%, compared to revenues of $2.58 billion in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - BrightSpring Health Services, Inc. shares have increased by approximately 5.1% since the beginning of the year, while the S&P 500 has declined by 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $2.89 billion, and for the current fiscal year, it is $0.57 on revenues of $11.89 billion [7] Industry Outlook - The Medical Services industry, to which BrightSpring belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41938 BrightSpring Health Services, Inc. (Exact Name of Registrant as Specified in its Charter) | Delaware | 82-2956404 | | --- | --- | | (State or other jurisdiction of | (I. ...

Financial Performance - BrightSpring's total revenue for Q1 2025 reached $2878 million, a 25.9% increase year-over-year[18] - Adjusted EBITDA for Q1 2025 was $131.1 million, representing a 28.2% growth compared to the previous year[18] - Pharmacy Solutions revenue grew by 28.1% to $2532 million in Q1 2025[18] - Provider Services revenue increased by 12.1% to $346 million in Q1 2025[18] Segment Performance - Within Pharmacy Solutions, Infusion and Specialty revenue saw a 33.2% increase, reaching $1952 million[18] - Home and Community Pharmacy revenue grew by 13.6% to $581 million[18] - Pharmacy Segment EBITDA increased by 31.2% to $116 million[18] - Home Health Care revenue within Provider Services grew by 20.9% to $178 million[18] Business Metrics - Home Health Care average daily census increased by 11.6% year-over-year, reaching 30,241 in Q1 2025[29] - Prescriptions dispensed in Pharmacy Solutions increased by 10.4% year-over-year[25] - Revenue per script in Pharmacy Solutions grew by 16.0% year-over-year to $232.79[25] Guidance - The company updated its FY 2025 total revenue guidance to a range of $12000 million to $12500 million, representing a 19.1% to 24.1% year-over-year growth[37]

First Quarter 2025 Earnings Overview BrightSpring reported strong Q1 2025 financial results, with significant revenue and Adjusted EBITDA growth, and positive net income [Financial Highlights (Q1 2025)](index=1&type=section&id=Financial%20Highlights%20(Q1%202025)) BrightSpring reported strong Q1 2025 financial results, with significant growth in revenue, gross profit, and Adjusted EBITDA, and a return to net income | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | Change (%) | | :-------------------------------- | :----------------- | :----------------- | :--------- | | Net Revenue | $2,878 | $2,286 | 25.9% | | Gross Profit | $338 | $292 | 15.7% | | Net Income (Loss) from Cont. Ops | $9.2 | $(56.0) | N/A | | Adjusted EBITDA | $131 | $102 | 28.2% | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Jon Rousseau highlighted the company's foundational focus on quality and efficient home and community-based care for complex populations, expressing satisfaction with Q1 results across Pharmacy and Provider service lines and confidence in future service delivery - CEO Jon Rousseau emphasized the company's foundational focus on quality and efficient care in home and community settings for complex populations, driving growth and financial performance[2](index=2&type=chunk) - The company is pleased with Q1 results across Pharmacy and Provider service lines, reaching more patients, leveraging its scaled platform, and investing in best practices[2](index=2&type=chunk) [Full Year 2025 Guidance Update](index=1&type=section&id=Full%20Year%202025%20Guidance%20Update) BrightSpring increased its full-year 2025 guidance for both Revenue and Adjusted EBITDA, excluding the Community Living business, projecting strong growth across both Pharmacy and Provider segments - BrightSpring increased its full-year 2025 guidance for Revenue and Adjusted EBITDA, excluding the Community Living business and the effects of any future closed acquisitions[5](index=5&type=chunk)[7](index=7&type=chunk) | Metric | Guidance Range (Millions) | Growth vs FY2024 (%) | | :---------------------- | :------------------------ | :------------------- | | Net Revenue | $12,000 - $12,500 | 19.1% - 24.1% | | Pharmacy Segment Revenue | $10,550 - $11,000 | 20.5% - 25.7% | | Provider Segment Revenue | $1,450 - $1,500 | 10.0% - 13.8% | | Adjusted EBITDA | $570 - $585 | 23.9% - 27.2% | [Strategic Updates](index=1&type=section&id=Strategic%20Updates) The planned divestiture of the Community Living business to Sevita, announced in January 2025, remains on track for completion this year - The planned divestiture of the Community Living business to Sevita, announced on January 20, 2025, is on track to be completed this year[5](index=5&type=chunk) Company Information This section provides an overview of BrightSpring Health Services and details regarding its Q1 2025 earnings webcast and conference call [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, serving over 450,000 patients daily across all 50 states with a focus on quality metrics and cost reduction - BrightSpring provides complementary home- and community-based pharmacy and provider health solutions for complex populations in need of specialized and/or chronic care[12](index=12&type=chunk) - The company serves over **450,000 customers, clients, and patients daily** across all 50 states through service lines including pharmacy, home health care and primary care, and rehabilitation and behavioral health[12](index=12&type=chunk) - BrightSpring consistently demonstrates strong quality metrics, improves the quality of life and health for high-need individuals, and reduces overall costs to the healthcare system[12](index=12&type=chunk) [Webcast and Conference Call Details](index=3&type=section&id=Webcast%20and%20Conference%20Call%20Details) BrightSpring hosted a conference call on May 2, 2025, to discuss Q1 2025 results, with a live and archived webcast available on its investor relations website, where supplemental financial information was also posted - A conference call was held on **May 2, 2025, at 8:30 a.m. Eastern Time**, with online registration required for investors[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) Consolidated Financial Statements This section presents BrightSpring's consolidated balance sheets, statements of operations, and cash flows for the first quarter of 2025 and comparative periods [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, BrightSpring's total assets decreased slightly compared to December 31, 2024, primarily due to a reclassification of non-current assets held for sale to current assets held for sale, while total liabilities also decreased | Item | March 31, 2025 (Thousands) | December 31, 2024 (Thousands) | Change (Thousands) | | :----------------------------------- | :------------------------- | :-------------------------- | :----------------- | | Total assets | $5,846,945 | $5,926,140 | $(79,195) | | Current assets held for sale | $836,183 | $131,447 | $704,736 | | Non-current assets held for sale | — | $687,960 | $(687,960) | | Total liabilities | $4,156,378 | $4,274,555 | $(118,177) | | Total shareholders' equity | $1,687,369 | $1,647,855 | $39,514 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, BrightSpring reported a significant increase in total revenues and a shift from a net loss to net income from continuing operations, driven by higher product and service revenues and reduced interest expense | Item | Q1 2025 (Thousands) | Q1 2024 (Thousands) | Change (Thousands) | | :------------------------------------------------- | :------------------ | :------------------ | :----------------- | | Total revenues | $2,878,129 | $2,285,766 | $592,363 | | Gross profit | $338,369 | $292,491 | $45,878 | | Operating income (loss) | $50,739 | $(15,335) | $66,074 | | Interest expense, net | $41,763 | $54,470 | $(12,707) | | Income (loss) from continuing operations, net of taxes | $9,216 | $(56,027) | $65,243 | | Net income (loss) attributable to BrightSpring | $29,542 | $(45,750) | $75,292 | | Basic EPS from continuing operations | $0.05 | $(0.31) | N/A | | Diluted EPS from continuing operations | $0.05 | $(0.31) | N/A | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) BrightSpring's operating activities generated positive cash flow in Q1 2025, a significant improvement from a net cash outflow in Q1 2024, while cash used in investing activities decreased and financing activities shifted from providing cash to using cash | Item | Q1 2025 (Thousands) | Q1 2024 (Thousands) | Change (Thousands) | | :-------------------------------------- | :------------------ | :------------------ | :----------------- | | Net cash provided by (used in) operating activities | $101,598 | $(78,859) | $180,457 | | Net cash used in investing activities | $(24,191) | $(30,938) | $6,747 | | Net cash (used in) provided by financing activities | $(86,018) | $154,763 | $(240,781) | | Net (decrease) increase in cash and cash equivalents | $(8,611) | $44,966 | $(53,577) | | Cash and cash equivalents at end of period | $52,642 | $58,037 | $(5,395) | Non-GAAP Financial Measures This section explains BrightSpring's non-GAAP financial measures, including EBITDA and Adjusted EBITDA, and provides their reconciliation to GAAP net income [Explanation of Non-GAAP Measures](index=5&type=section&id=Explanation%20of%20Non-GAAP%20Measures) BrightSpring uses non-GAAP financial measures like EBITDA and Adjusted EBITDA to provide investors and analysts with a clearer view of core operating performance by excluding non-recurring or non-operational items, aiding in performance comparison and strategic evaluation, while acknowledging their limitations as analytical tools - Non-GAAP measures (EBITDA, Adjusted EBITDA) are used to supplement GAAP results, assisting investors and analysts in comparing operating performance consistently by excluding items not indicative of core operations[19](index=19&type=chunk)[21](index=21&type=chunk) - Management uses these measures for evaluating business strategies, budgeting, establishing incentive compensation, and comparing performance against peer companies[19](index=19&type=chunk) - EBITDA is defined as net income (loss) from continuing operations before income tax benefit, interest expense, net, and depreciation and amortization. Adjusted EBITDA further excludes non-cash share-based compensation, acquisition/integration/transaction costs, restructuring/divestiture costs, legal costs, significant projects

Core Viewpoint - BrightSpring Health Services, Inc. reported strong financial results for Q1 2025, with significant increases in revenue and adjusted EBITDA, and has raised its full-year guidance for revenue and adjusted EBITDA [1][6]. Financial Performance - Net Revenue for Q1 2025 reached $2,878 million, a 25.9% increase from $2,286 million in Q1 2024 [3][6]. - Gross Profit for the same period was $338 million, up 15.7% from $292 million in Q1 2024 [3][6]. - Net Income from Continuing Operations was $9.2 million, a turnaround from a Net Loss of $56.0 million in Q1 2024 [3][6]. - Adjusted EBITDA for Q1 2025 was $131 million, reflecting a 28.2% increase compared to $102 million in Q1 2024 [4][6]. Segment Performance - Pharmacy Solutions Revenue was $2,532 million, up 28% from $1,977 million in Q1 2024 [5]. - Provider Services Revenue increased by 12% to $346 million from $309 million in Q1 2024 [5]. Guidance and Future Outlook - The company has increased its 2025 Revenue guidance to a range of $12,000 million to $12,500 million, representing a growth of 19.1% to 24.1% [6][14]. - Adjusted EBITDA guidance for 2025 is now set at $570 million to $585 million, indicating a growth of 23.9% to 27.2% [6][14]. Strategic Initiatives - The planned divestiture of the Community Living business to Sevita is on track to be completed within the year [6].

Core Viewpoint - BrightSpring Health Services, Inc. (BTSG) is expected to report a year-over-year increase in earnings and revenues for the quarter ended March 2025, with a consensus EPS estimate of $0.14, reflecting a +16.7% change, and revenues projected at $2.73 billion, up 5.9% from the previous year [1][3]. Earnings Expectations - The stock price may increase if the actual earnings exceed expectations in the upcoming report scheduled for May 2, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 1.73% lower over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +106.62% for BrightSpring, suggesting analysts have become more optimistic about the company's earnings prospects [11]. - The company currently holds a Zacks Rank of 3, indicating a hold position, which suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, BrightSpring exceeded the expected EPS of $0.19 by delivering $0.22, resulting in a surprise of +15.79%. Over the last four quarters, the company has beaten consensus EPS estimates twice [13]. Industry Comparison - Another player in the Zacks Medical Services industry, Organon (OGN), is expected to report earnings of $0.92 per share, reflecting a year-over-year decline of -24.6%, with revenues projected at $1.54 billion, down 4.9% [17]. - Organon's consensus EPS estimate has been revised down by 1.7% over the last 30 days, and it currently has a negative Earnings ESP of -1.91%, making it difficult to predict a beat on the consensus EPS estimate [18].

Company Announcement - BrightSpring Health Services, Inc. plans to release its first quarter 2025 financial results on May 2, 2025, prior to an earnings conference call at 8:30 a.m. ET on the same day [1] Conference Call Details - Participants can register for the conference call before the 8:30 a.m. ET start, and a live and archived webcast will be available on the Company's investor relations website [2] Company Overview - BrightSpring Health Services provides home- and community-based pharmacy and provider health solutions for complex populations, serving over 450,000 customers daily across all 50 states [3] - The Company offers services including pharmacy, home health care, primary care, rehabilitation, and behavioral health, demonstrating strong quality metrics and improving health outcomes while reducing healthcare costs [3]