Financial Data and Key Metrics Changes - Revenue grew 20% to $377.4 million, with adjusted EBITDA rising 19% to $27.3 million, yielding adjusted EPS of $0.25 [5][14][15] - Total resident count increased by 13% to 203,766, driven by both organic growth and acquisitions [5][14] - Adjusted EBITDA margins held steady at 7.2%, reflecting the dilutive impact from recent acquisitions and greenfield startups [5][15] Business Line Data and Key Metrics Changes - The pharmacy segment experienced strong performance, with significant contributions from new acquisitions in Washington and Oregon [14][15] - Gross profit increased to $74.7 million, with a margin of 19.8% [15] - The company noted that its four- to five-year locations are performing at or above the consolidated adjusted EBITDA margin, while newer locations are progressing steadily [15] Market Data and Key Metrics Changes - Guardian holds a national market share of 13% in serving assisted living facilities, with 37 pharmacies having over 20% market share and 12 pharmacies exceeding 40% [8][9] - The company serves nearly 204,000 residents, primarily in-house, and expects to benefit from demographic trends as the aging population grows [9][10] Company Strategy and Development Direction - The company aims to drive organic growth through new customer facility wins, higher resident adoption, and greenfield expansions, while also pursuing targeted acquisitions [10][11] - Guardian is focused on enhancing profitability by integrating new pharmacies and leveraging technology and operational efficiencies [10][11] - The company is navigating policy changes proactively and advocating for legislative solutions to address industry challenges [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in offsetting anticipated EBITDA headwinds despite expected flat revenue growth in 2026 [6][10] - The company highlighted the importance of local leadership and scale in executing its growth strategy [7][10] - Management noted that the acquisition pipeline remains active, with a disciplined approach to selecting operators and markets [18] Other Important Information - The company filed an S-3 shelf registration for up to 6 million shares to provide financial flexibility [12] - Cash position improved to $36 million, with strong cash generation and no debt outstanding [17] Q&A Session Summary Question: Comparison of vaccine program contribution this year to last year - Management noted steady performance in the vaccine program, with a stronger start in September compared to last year [22][23] Question: Resident count and acquisition impact - Management confirmed that recent acquisitions are included in the Q3 resident count, with expectations for steady growth in Q4 [24][25] Question: Status of negotiations with PBMs regarding IRA issues - Management indicated that discussions are ongoing and they are growing more confident in offsetting headwinds [26][27] Question: Margin impact from acquisitions - Management highlighted that recent acquisitions are dilutive to margins but are expected to improve over time as they mature [33][41] Question: Changes in Medicare Part D plans and resident switching - Management stated it is early in the process to assess the impact of changes in Part D plans, with ongoing efforts to optimize plans for residents [46][48] Question: Changes in drug consumption patterns - Management observed a steady growth in acuity among residents, leading to increased utilization of certain brand medications [50]

Financial Performance - Revenues for the three months ended September 30, 2025, increased to $377,427,000, up from $314,393,000 in the same period of 2024, representing a growth of 20.1%[16] - Gross profit for the nine months ended September 30, 2025, was $207,216,000, compared to $177,267,000 for the same period in 2024, reflecting an increase of 16.9%[16] - Operating income for the three months ended September 30, 2025, was $16,354,000, a significant recovery from an operating loss of $104,613,000 in the same period of 2024[16] - Net income attributable to Guardian Pharmacy Services, Inc. for the three months ended September 30, 2025, was $9,818,000, compared to a net loss of $121,990,000 in the same period of 2024[16] - Basic net income per share of $0.16 for the three months ended September 30, 2025, compared to a loss of $2.00 per share in the same period of 2024[16] - Basic net income attributable to Guardian Pharmacy Services, Inc. for the nine months ended September 30, 2025, was $28,296, compared to a net loss of $121,990 for the same period in 2024[67] - Basic net income per share for Class A and Class B common stock was $0.46 for the nine months ended September 30, 2025[67] - The company’s segment net income (loss) for the nine months ended September 30, 2024, was $(82.9) million, which improved to $27.7 million for the same period in 2025[78] Assets and Liabilities - Total assets decreased to $320,810,000 as of December 31, 2024, from $390,037,000 as of September 30, 2025, indicating a decline of 17.7%[14] - Total liabilities decreased to $170,834,000 as of December 31, 2024, from $194,540,000 as of September 30, 2025, a reduction of 12.2%[14] - Total equity of the company as of September 30, 2025, was $195,497,000, down from $149,976,000 as of December 31, 2024, reflecting a decrease of 20.5%[14] Cash Flow and Investments - Cash and cash equivalents decreased significantly to $4,660,000 as of December 31, 2024, from $36,487,000 as of September 30, 2025, a decline of 87.3%[14] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $35,623,000, while for 2025 it was $65,655,000[22] - The company used $27,515 in investing activities for the nine months ended September 30, 2025, an increase of $3.7 million from $23,783 in 2024[143] - Cash flows used in financing activities were $6.3 million for the nine months ended September 30, 2025, primarily due to payments for finance lease obligations and equity offering costs[146] Acquisitions and Growth Strategy - The company’s growth strategy involves acquiring institutional pharmacies servicing long-term care facilities and other care settings[41] - The total consideration for the 2025 Acquisitions was $16.271 million, including $13.230 million in cash and contingent earnout payments of up to $2.600 million[43] - The company completed various acquisitions during 2024 and 2025, which contributed to the growth in revenue and operational results[96] - Revenue included in the consolidated statements for the 2025 Acquisitions was $16,167 for the three months and $20,772 for the nine months ended September 30, 2025[49] Shareholder Activities - The Company completed its IPO on September 27, 2024, issuing 9,200,000 shares at $14.00 per share, resulting in net proceeds of $119.784 million after underwriting discounts and offering costs[29] - The company issued and sold 8,000,000 shares of Class A common stock at a public offering price of $14.00 per share during its IPO, receiving net proceeds of $119.8 million[164] - The company used $55.2 million of the IPO proceeds for merger consideration and $20.0 million to repay borrowings on its line of credit[164] - On September 27, 2025, 13,523,285 shares of Class B common stock automatically converted into an equal number of shares of Class A common stock[161] Operational Metrics - The company served approximately 204,000 residents in about 8,200 long-term care facilities (LTCFs) across 38 states as of September 30, 2025[84] - Prescriptions dispensed rose from 6.4 million in the three months ended September 30, 2024, to 7.3 million in the same period in 2025, reflecting increased operational capacity[112] - The number of residents served increased from 180,000 in September 2024 to 204,000 in September 2025, contributing to revenue growth[112] Tax and Legal Matters - The effective tax rate for the three months ended September 30, 2025, was 42.3%, compared to -0.1% for the same period in 2024[80] - The company is not currently aware of any legal proceedings that would materially affect its business or financial condition[159] - There have been no material changes to the risk factors affecting the company as described in its Annual Report on Form 10-K[160] Accounting and Financial Reporting - The company adopted new accounting standards effective January 1, 2024, including ASU 2023-07 for segment reporting disclosures[38] - Adjusted EBITDA for the nine months ended September 30, 2025, was $75,659, representing an increase from $64,944 in the same period of 2024[132] - The company emphasizes that Adjusted EBITDA and related measures should not be viewed in isolation from GAAP financial measures, as they have limitations[129] - A reconciliation of Adjusted EBITDA to net income and other financial measures is provided to clarify the relationship between these metrics and GAAP results[131] Internal Controls and Procedures - The company conducted an evaluation of its disclosure controls and procedures, concluding they were effective as of September 30, 2025[155] - There were no changes in internal control over financial reporting that materially affected the company during the three and nine months ended September 30, 2025[157]

Financial Performance - Revenue for Q3 2025 was $377.4 million, representing a 20% increase year-over-year[7] - Adjusted EBITDA for the quarter was $27.3 million, compared to $23.0 million in the prior year period[7] - Net income for the quarter was $9.6 million, a significant improvement from a net loss of $105.8 million in the prior-year period[7] - Revenues for the three months ended September 30, 2025, were $377,427,000, a decrease of 16.5% compared to $314,393,000 in the same period of 2024[26] - Operating income for the three months ended September 30, 2025, was $16,354,000, a significant recovery from an operating loss of $104,613,000 in the same period of 2024[26] - Net income attributable to Guardian Pharmacy Services, Inc. for the nine months ended September 30, 2025, was $28,296,000, compared to a net loss of $121,990,000 in 2024[26] - Adjusted EBITDA for the nine months ended September 30, 2025, was $75,659,000, up from $64,944,000 in 2024, indicating a growth of 16.5%[31] - The company reported a net income margin of 2.6% for the nine months ended September 30, 2025, compared to a net loss margin of 9.3% in 2024[31] - Cash provided by operating activities for the nine months ended September 30, 2025, was $65,655,000, an increase from $35,623,000 in 2024[28] - The company reported a diluted EPS of $0.45 for the nine months ended September 30, 2025, compared to a diluted loss per share of $2.00 in 2024[31] Guidance and Projections - The company raised its full-year revenue guidance to between $1.43 billion and $1.45 billion, up from the previous range of $1.39 billion to $1.41 billion[5] - Adjusted EBITDA guidance for the full year was increased to between $104.0 million and $106.0 million, up from $100.0 million to $102.0 million[5] Cash and Debt Position - Cash and cash equivalents totaled $36.5 million at quarter-end, with no long-term debt outstanding[7] - Total cash and cash equivalents at the end of the period were $36,487,000 for September 30, 2025, compared to $37,221,000 at the end of the previous year[28] Operational Developments - The acquisition of Managed Healthcare Pharmacy was announced, marking Guardian's first physical footprint in Oregon[8] - Guardian operates over 53 pharmacies nationwide, serving approximately 8,200 long-term care facilities across 38 states[10] - The company has filed a shelf registration statement for the potential issuance and resale of up to 5,000,000 shares of Class A common stock[9] Share-Based Compensation and Legal Matters - The company incurred share-based compensation expenses of $12,770,000 for the nine months ended September 30, 2025, down from $128,029,000 in 2024[28] - Proceeds from payor reimbursement matters recorded as revenue were $1.6 million for the three months ended September 30, 2025, compared to $0.0 million and $1.7 million for the same period in 2024[4] - Legal expenses related to payor reimbursement matters were $1.7 million and $2.8 million for the three and nine months ended September 30, 2025, respectively, while there were no expenses in the same periods of 2024[4] Adjusted Metrics - Adjusted net income and Adjusted EPS are not calculated for the three and nine months ended September 30, 2024, due to the limited net income attributable to Guardian Pharmacy Services, Inc. following the IPO[4]

Core Viewpoint - Guardian Pharmacy Services (GRDN) is expected to report a year-over-year increase in earnings driven by higher revenues, with the consensus outlook being crucial for assessing the company's earnings picture [1][3]. Earnings Expectations - The upcoming earnings report is anticipated to show quarterly earnings of $0.24 per share, reflecting a +112% change year-over-year, and revenues are projected to be $353.95 million, up 12.6% from the previous year [3]. - The earnings report is scheduled for November 10, and stock movement may depend on whether the actual results exceed or fall short of these expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised 2.04% lower in the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4][12]. - The Most Accurate Estimate for Guardian Pharmacy is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.82%, suggesting a bearish outlook from analysts [12]. Earnings Surprise History - In the last reported quarter, Guardian Pharmacy was expected to post earnings of $0.22 per share but delivered $0.23, resulting in a surprise of +4.55% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [14]. Industry Comparison - Nektar Therapeutics (NKTR), another player in the Zacks Medical - Drugs industry, is expected to report a loss of $2.85 per share, indicating a year-over-year change of -5.6%, with revenues expected to decline by 56.1% [18][19]. - Nektar's consensus EPS estimate has been revised 2.6% higher recently, and it has a positive Earnings ESP of +18.72%, combined with a Zacks Rank of 2 (Buy), indicating a likely earnings beat [19][20].

Core Points - Guardian Pharmacy Services has filed a shelf registration statement with the SEC for the potential issuance of up to 1,020,000 shares of Class A common stock and the resale of up to 4,980,000 outstanding shares by selling stockholders [1][2] - The filing aims to provide flexibility for future access to public markets, although there are no immediate plans to offer securities [2] - Guardian has entered into lock-up agreements with holders of approximately 93% of its outstanding shares, restricting them from selling or transferring shares until June 30, 2026 [3] Company Overview - Guardian Pharmacy Services is a leading long-term care pharmacy services company, partnering with over 7,400 long-term care facilities across 38 states to deliver medications and technology-enabled services [5] - As of June 30, 2025, Guardian operates more than 52 pharmacies and serves over 195,000 residents [5]

Company Overview - Guardian Pharmacy Services is an institutional pharmacy focused on serving the assisted living segment of long-term care, which is experiencing significant growth [2][4] - The company has engineered its pharmacy services specifically for assisted living facilities, addressing the unique needs of this demographic [3][4] Market Position - Guardian Pharmacy Services is the market leader in its sector, holding a 13% market share despite not covering the entire geography of the United States [4]

Summary of Guardian Pharmacy Services Conference Call Company Overview - **Company**: Guardian Pharmacy Services (NYSE: GRDN) - **Industry**: Institutional pharmacy services focused on long-term care, specifically assisted living facilities [2][3] Core Insights and Arguments - **Market Position**: Guardian holds a 13% market share in the assisted living pharmacy segment, indicating significant growth potential with 87% of the market still available [3] - **Target Demographic**: The company serves a highly acute population in assisted living, with residents averaging 85 years of age and 14 prescriptions each [2] - **Growth Strategy**: Guardian aims for low double-digit growth, supported by a combination of organic growth and acquisitions. Historical revenue growth has been around 15% since inception [8][9] - **Industry Dynamics**: The assisted living sector is transitioning from a real estate focus to a healthcare focus, with increasing consolidation and demand for sophisticated services [9][10] - **Pricing and Reimbursement**: The company is working to improve reimbursement rates by negotiating directly with payors, moving away from third-party networks [10][11] Challenges and Legislative Impact - **Inflation Reduction Act (IRA)**: The IRA poses a potential headwind, expected to impact revenue by over $100 million in 2026 and create a $5 million EBITDA headwind [11][12] - **Mitigation Strategies**: Guardian is actively engaging in legislative efforts and commercial negotiations to mitigate the impact of the IRA [12][14] M&A and Market Expansion - **Acquisition Strategy**: The company seeks to acquire pharmacies with strong operators who can benefit from Guardian's support and scale. The focus is on collaborative operators rather than complete buyouts [17][18] - **Market Entry**: Recent expansions into Oregon and Washington are seen as case studies for successful market entry, leveraging existing strong operators [19][20] Adjacent Market Opportunities - **PACE Programs and Hospice Pharmacy**: Guardian is exploring adjacent markets such as PACE programs and hospice pharmacy services, which present significant growth opportunities [23][25] Investor Insights - **Underappreciated Aspects**: Investors may not fully recognize the virtuous cycle of scale that enhances profitability and market share. Guardian's focus on a different segment of the long-term care market distinguishes it from legacy players [26][27] Financial Health - **Cash Flow and Capital Deployment**: The company has a strong cash conversion ratio of approximately 60%, providing flexibility for M&A and other capital deployment strategies [21][22] This summary encapsulates the key points discussed during the Guardian Pharmacy Services conference call, highlighting the company's market position, growth strategies, challenges, and opportunities within the industry.

Group 1 - Guardian Pharmacy Services, Inc. (GRDN) has reached a significant support level and is considered a good pick for investors from a technical perspective [1] - GRDN's 50-day simple moving average has recently broken above its 200-day moving average, indicating a "golden cross," which is a bullish signal [1] - The stock has experienced a 30% increase over the past four weeks, and it currently holds a 2 (Buy) rating on the Zacks Rank, suggesting potential for further gains [3] Group 2 - A golden cross consists of three key stages: a downtrend that bottoms out, a shorter moving average crossing above a longer moving average, and a subsequent upward price trend [2] - The positive earnings outlook for GRDN is supported by no earnings estimate cuts and two upward revisions in the past 60 days, with the Zacks Consensus Estimate also increasing [3] - Investors are encouraged to monitor GRDN for potential gains due to its key technical level and favorable earnings estimate revisions [5]

Core Viewpoint - Guardian Pharmacy Services (GRDN) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [2][4]. - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to buying or selling actions that affect stock prices [4]. Business Outlook and Investor Sentiment - The upgrade in earnings estimates for Guardian Pharmacy suggests an improvement in the company's underlying business, which could lead to increased stock prices as investors respond positively [5][10]. - The Zacks Consensus Estimate for Guardian Pharmacy has increased by 4.1% over the past three months, with expected earnings of $0.93 per share for the fiscal year ending December 2025, indicating stability year-over-year [8]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Guardian Pharmacy's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - For Q2 2025, revenue grew 15% to $344.3 million, driven by solid low double-digit organic growth and contributions from recent acquisitions and greenfields [22] - Adjusted EBITDA was $25 million, up 15% year over year, with margins holding steady at 7.2% [23] - Adjusted EPS came in at $0.23, and the company maintained adjusted EBITDA margins at 7.2%, consistent with the prior year [6][22] - Cash position increased by approximately $4.8 million from Q1, ending the quarter with $18.8 million in cash [23] Business Line Data and Key Metrics Changes - Resident count increased 12% to over 195,000 [22] - The company added three new pharmacies this quarter, two via acquisition and one greenfield startup [9][10] - The recent acquisitions and greenfield startups are expected to account for a high single-digit percentage of 2025 revenue but will not contribute to EBITDA for the full year [26][27] Market Data and Key Metrics Changes - The company is expanding its presence in high-growth markets, including a new pharmacy in Naples, Florida, and acquisitions in Kansas and Washington [9][10] - The company anticipates typical seasonality in Q4 driven by COVID and flu vaccine activity, which turned profitable last year [24] Company Strategy and Development Direction - The company is focused on disciplined expansion into attractive high-growth markets and views M&A as an attractive use of capital [7][10] - The company is committed to operational excellence and customized service tailored to the communities served [10] - The long-term growth thesis remains intact, with a focus on organic growth, strategic greenfield opportunities, and a robust acquisition pipeline [21][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in funding future growth with internally generated cash and highlighted the strong year-to-date performance [6][7] - The company is proactively addressing changes in the policy environment, particularly regarding the Inflation Reduction Act and its impact on drug pricing [14][15] - Management remains optimistic about the ability to resolve pricing challenges and is engaged in constructive discussions with PBMs [18][19] Other Important Information - The company completed a non-dilutive secondary offering, nearly doubling its public float and improving trading dynamics [13] - The company recorded $1.1 million in costs associated with being a public company that did not exist in the prior year quarter [23] Q&A Session Summary Question: Is the vaccine program at a steady state or is there still potential for growth in Q4? - Management indicated that the vaccine program is at a steady state with general growth of the overall business [33] Question: When do PBM negotiations typically conclude? - Management stated that they are making good progress in negotiations and will update guidance as they approach Q4 [34] Question: Has being a public company changed the prospects or visibility of the company? - Management noted that increased visibility in public markets is a strong affirmation of the company and its services [36] Question: Can you elaborate on the organic growth drivers? - Management highlighted that organic growth is driven by share gain, patient acuity, and more complex drug regimens [43] Question: What is the current state of the acquisition pipeline? - Management confirmed that the acquisition pipeline remains strong, with human capital being the main limiting factor [44][45] Question: Can you provide figures on the recent managed healthcare pharmacy acquisition? - Management described the acquisition as typical in size and expressed excitement about the leadership team and market opportunities [48] Question: What is the expected resident count by the end of Q3? - Management indicated that they will continue the organic growth trajectory and layer in the impact of recent acquisitions [57]