Core Insights - Option Care Health is the largest independent provider of home and alternate site infusion services in the United States [2] Company Overview - Option Care Health employs over 8,000 team members, including more than 5,000 clinicians, dedicated to improving care standards for patients with acute and chronic conditions across all 50 states [2] - The company aims to enhance the infusion care experience through clinical leadership, expertise, and national scale [2] Upcoming Events - Option Care Health will participate in the Deutsche Bank Healthcare Summit in New York City from September 10 to September 11, 2025 [3] - The company will also be present at the Jefferies Healthcare Services Conference in Nashville on September 30, 2025, featuring a fireside chat at 1:15 PM CT / 2:15 PM ET [3]

Core Insights - Option Care Health announced the appointment of Meenal Sethna as Executive Vice President and Chief Financial Officer, effective October 1, 2025, succeeding Mike Shapiro who will step down after 10 years [1][3] - Mike Shapiro will remain with the company as a Strategic Advisor through at least the first quarter of 2026 to ensure a smooth transition [1][3] - Sethna brings over 30 years of experience in finance and accounting, having previously served as CFO of Littelfuse, Inc. and held various roles at Illinois Tool Works and Motorola [2][4] Company Overview - Option Care Health is the largest independent provider of home and alternate site infusion services in the United States, employing over 8,000 team members, including more than 5,000 clinicians [7] - The company aims to elevate standards of care for patients with acute and chronic conditions across all 50 states [7] Leadership Transition - John C. Rademacher, President and CEO, expressed excitement about Sethna joining the leadership team, highlighting her track record in driving sustainable growth and shareholder returns [3] - Shapiro acknowledged the company's solid balance sheet and capital structure, indicating confidence in the ongoing value creation strategy [3]

Group 1 - Option Care Health (NASDAQ: OPCH) presents challenges for long-term investment due to its fiscal discipline and prudence in equity allocation [1] - The company is analyzed through a technical focus on fundamental value drivers to identify high probability long-term compounders [1] - The research encompasses various financial market participants, including speculators, hedgers, and long-term traders [1] Group 2 - The article emphasizes the importance of conducting personal due diligence before making investment decisions [2] - There is no current stock, option, or derivative position held by the analyst in the companies mentioned [2] - The opinions expressed in the article are solely those of the author and do not reflect the views of Seeking Alpha as a whole [3]

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 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: 001-11993 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) 312-940-2443 Securities registered pursuant to Section 12(b) of the Act: | Title of each Class | Trading Symbol(s) | Name ...

Financial Data and Key Metrics Changes - Revenue growth of 15% year-over-year in the second quarter, with adjusted EBITDA growth of 5% [7][15] - Adjusted earnings per share increased by 10.8% to $0.41 [16] - Cash flow from operations exceeded $90 million in the quarter, with a full-year expectation of over $320 million [9][17] Business Line Data and Key Metrics Changes - Acute therapy growth was in the mid-teens, while chronic therapies also performed well with similar growth rates [7][14] - Gross profit of $269 million grew almost 8% year-over-year, with gross margin impacted by lower-margin therapies [15][40] Market Data and Key Metrics Changes - The company continues to deepen relationships with health plans and pharma partners, enhancing market access and service offerings [8][9] - The market for chronic therapies is estimated to be growing in the low double digits, while acute therapies are expected to grow in the low single digits [42] Company Strategy and Development Direction - The company is focused on expanding its capabilities through M&A, internal investments, and share repurchases, with $50 million in stock repurchased during the quarter [10][16] - Investments in artificial intelligence and advanced analytics are aimed at improving operational efficiency [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning amid regulatory changes and competitive dynamics, expecting continued growth in 2025 [5][12] - The company has increased its full-year guidance for revenue, adjusted EBITDA, and adjusted EPS, reflecting strong momentum [17] Other Important Information - The company operates nearly 90 pharmacies and has a nursing network of over 3,000 nurses, enhancing its service delivery capabilities [9] - The advanced practitioner model is being utilized to serve more complex patients, including those with oncology and neurological disorders [50][51] Q&A Session Summary Question: Conversations with payers regarding cost pressures - Management reported productive conversations with payers, with increased interest in site of care initiatives to reduce costs [20][21] Question: Growth in Ambulatory Infusion Suites - The company noted that chronic patient utilization in infusion suites continues to grow, with a significant increase in penetration [22][23] Question: Advanced practitioner model and reimbursement - The advanced practitioner model allows the company to serve more complex patients, with positive progress expected [24][25] Question: Impact of proposed rules on cost differentials - Management acknowledged recognition of reduced costs in home and alternate sites, positioning the company favorably [26] Question: Financial expectations for Savara - The negative impact for the second quarter was around $20 million, with full-year expectations adjusted accordingly [32] Question: Therapeutic mix and operating margins - The acute portfolio maintains higher product margins compared to chronic therapies, which have a wider margin range [33] Question: M&A opportunities and market activity - The company remains focused on core opportunities while exploring adjacent areas for growth [35] Question: Inventory increase and tariff preparations - The inventory increase was deliberate, with proactive management strategies in place to address potential tariff impacts [64][66] Question: MFN exposure and its implications - Management indicated uncertainty regarding the impact of MFN pricing, with no immediate effects expected [75] Question: Biosimilars ramp-up - The company is beginning to see increased utilization of biosimilars as patient transitions occur [79] Question: Acute growth progression and competitive dynamics - Management expects reported growth to decrease slightly in the fourth quarter due to tougher year-over-year comparisons [84] Question: SG&A growth drivers - SG&A growth was influenced by acquisitions and accelerated growth initiatives, with a focus on clinical capabilities [85][87]

Financial Data and Key Metrics Changes - Revenue growth of 15% year-over-year in Q2, with adjusted EBITDA growth of 5% and adjusted EPS growth of 10.8% [6][14][15] - Gross profit increased to $269 million, reflecting an 8% growth compared to the previous year [14] - Cash flow from operations exceeded $90 million in Q2, with a full-year target of over $320 million [9][10] Business Line Data and Key Metrics Changes - Acute therapy growth was in the mid-teens, while chronic therapies also saw mid-teens growth [6][13] - Performance in rare and orphan therapies remained strong, contributing positively to overall revenue [6][14] Market Data and Key Metrics Changes - The company is well-positioned in a growing industry, capitalizing on shifting competitive dynamics and deepening partnerships with payers and pharmaceutical manufacturers [4][8] - The market access team is actively working with national payers to broaden access and improve cost-effective care [8] Company Strategy and Development Direction - The company is increasing its guidance for revenue, adjusted EBITDA, and adjusted EPS for the year, reflecting confidence in ongoing momentum [12][16] - Focus on expanding therapy portfolio and enhancing clinical capabilities through investments in technology and partnerships [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's resilience in navigating regulatory changes and competitive dynamics [5][12] - The company anticipates continued growth in 2025, with expectations for revenue between $5.5 billion and $5.65 billion [16] Other Important Information - The company executed $50 million in share repurchases during the quarter, demonstrating confidence in long-term potential [10][15] - Investments in artificial intelligence and advanced analytics are aimed at improving operational efficiency [11] Q&A Session Summary Question: Can you discuss conversations with payers regarding cost pressures? - Management noted productive conversations with payers, highlighting increased interest in utilizing their services to provide high-quality care at appropriate costs [18][20] Question: Are you seeing growth in chronic therapy utilization? - Management confirmed that chronic therapy utilization continues to grow, with a significant portion of nursing visits occurring in their infusion suites [21][22] Question: Can you elaborate on the advanced practitioner model? - The advanced practitioner model allows the company to serve more complex patients and expand its patient portfolio, particularly in oncology and neurological disorders [24][52] Question: What are your thoughts on the impact of tariffs and MFN pricing? - Management indicated that they do not expect tariffs to have a material impact in 2025 and are proactively managing procurement strategies [62][63] Question: How is the company managing inventory in light of potential tariffs? - The company maintains a month of inventory and has increased inventory levels deliberately to ensure responsiveness to market demands [67][69] Question: What is driving the increase in SG&A expenses? - The increase in SG&A is attributed to acquisitions and accelerated growth initiatives, with a focus on expanding clinical capabilities and new therapy launches [88][89]

While Option Care has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Option Care (OPCH) came out with quarterly earnings of $0.41 per share, beating t ...

Core Viewpoint - Option Care Health, Inc. reported strong financial results for the second quarter of 2025, demonstrating resilience in a dynamic marketplace and focusing on delivering strong clinical outcomes while reducing the total cost of care [3][6]. Financial Performance - Net revenue for the second quarter of 2025 was $1,416.1 million, representing a 15.4% increase from $1,227.2 million in the second quarter of 2024 [6]. - Gross profit was $269.0 million, or 19.0% of net revenue, up 7.9% from $249.4 million, or 20.3% of net revenue, in the second quarter of 2024 [6]. - Net income was $50.5 million, compared to $53.0 million in the second quarter of 2024, with diluted earnings per share of $0.31, a 3.3% increase from $0.30 in the same period last year [6]. - Adjusted net income was $67.5 million, up from $64.9 million in the second quarter of 2024, with adjusted diluted earnings per share of $0.41, a 10.8% increase from $0.37 [6][19]. - Adjusted EBITDA reached $114.0 million, a 5.2% increase from $108.4 million in the second quarter of 2024 [6]. Full Year 2025 Financial Guidance - The company expects full year 2025 net revenue to be between $5.50 billion and $5.65 billion, with adjusted diluted earnings per share projected between $1.65 and $1.72 [7]. - Adjusted EBITDA is anticipated to be between $465 million and $475 million, with cash flow from operations expected to be at least $320 million [7]. Operational Insights - The company has over 8,000 team members, including more than 5,000 clinicians, and operates across all 50 states, focusing on elevating standards of care for patients with acute and chronic conditions [4]. - Option Care Health is committed to reimagining the infusion care experience through clinical leadership and expertise [4].

[Second Quarter 2025 Performance & Outlook](index=1&type=section&id=Second%20Quarter%202025%20Performance%20%26%20Outlook) Option Care Health reports Q2 2025 financial results and updates full-year guidance, reflecting growth in net revenue and adjusted profitability [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Option Care Health reported Q2 2025 net revenue growth of 15.4% to $1.4161 billion, with increased adjusted net income and EBITDA **Second Quarter 2025 Financial Highlights (vs. Q2 2024):** | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Change | | :-------------------------- | :-------------------- | :-------------------- | :----- | | Net Revenue | $1,416.1 | $1,227.2 | +15.4% | | Gross Profit | $269.0 | $249.4 | +7.9% | | Gross Margin | 19.0% | 20.3% | -1.3 pp | | Net Income | $50.5 | $53.0 | -4.7% | | Diluted EPS | $0.31 | $0.30 | +3.3% | | Adjusted Net Income | $67.5 | $64.9 | +4.0% | | Adjusted Diluted EPS | $0.41 | $0.37 | +10.8% | | Adjusted EBITDA | $114.0 | $108.4 | +5.2% | | Cash Flow from Operations | $90.3 | $195.7 | -53.9% | - The company repurchased approximately **$50 million** of its common stock in Q2 2025[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO John C. Rademacher praised Q2 performance and team resilience, reaffirming commitment to clinical outcomes and cost reduction - CEO John C. Rademacher expressed pride in the Q2 performance and team resilience, emphasizing the commitment to delivering strong clinical outcomes and reducing total cost of care[3](index=3&type=chunk) [Updated Full Year 2025 Financial Guidance](index=1&type=section&id=Updated%20Full%20Year%202025%20Financial%20Guidance) Option Care Health updated its 2025 full-year guidance, projecting net revenue between $5.50 billion and $5.65 billion **Full Year 2025 Financial Guidance:** | Metric | Range | | :-------------------------- | :---------------------------- | | Net Revenue | $5.50 Billion - $5.65 Billion | | Adjusted Diluted EPS | $1.65 - $1.72 | | Adjusted EBITDA | $465 Million - $475 Million | | Cash Flow from Operations | At least $320 Million | | Effective Tax Rate | 25% - 27% | | Net Interest Expense | Approximately $55 Million - $60 Million | [Company Information](index=2&type=section&id=Company%20Information) Overview of Option Care Health's position as a leading infusion service provider and its operational scope [About Option Care Health](index=2&type=section&id=About%20Option%20Care%20Health) Option Care Health is the largest independent U.S. home and alternate site infusion service provider, serving patients nationwide - Option Care Health is the largest independent provider of home and alternate site infusion services in the U.S., with over **8,000 team members** (including over **5,000 clinicians**) serving acute and chronic patients across all 50 states[6](index=6&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) Presents the company's condensed consolidated balance sheets, statements of earnings, and cash flows for recent periods [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to $3.383 billion by June 30, 2025, primarily due to reduced cash and equivalents **Condensed Consolidated Balance Sheets (As of June 30, 2025 vs. December 31, 2024, in thousands of USD):** | Item | June 30, 2025 (thousands of USD) | Dec 31, 2024 (thousands of USD) | Change (thousands of USD) | | :--------------------------------- | :------------------------------- | :------------------------------- | :------------------------ | | **Assets** | | | | | Cash and cash equivalents | $198,818 | $412,565 | -$213,747 | | Accounts receivable, net | $481,253 | $409,733 | +$71,520 | | Inventories | $403,542 | $388,131 | +$15,411 | | Total current assets | $1,175,229 | $1,322,627 | -$147,398 | | Intangible assets, net | $23,566 | $16,993 | +$6,573 | | Goodwill | $1,605,855 | $1,540,246 | +$65,609 | | Total assets | $3,382,826 | $3,421,743 | -$38,917 | | **Liabilities and Stockholders' Equity** | | | | | Accounts payable | $590,221 | $610,779 | -$20,558 | | Total current liabilities | $773,620 | $780,146 | -$6,526 | | Long-term debt, net | $1,103,701 | $1,104,641 | -$940 | | Total liabilities | $2,022,878 | $2,017,505 | +$5,373 | | Stockholders' equity | $1,359,948 | $1,404,238 | -$44,290 | [Condensed Consolidated Statements of Earnings](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Q2 2025 net revenue grew 15.4% to $1.416 billion, while net income decreased 4.7% to $50.523 million **Condensed Consolidated Statements of Earnings (in thousands of USD, except per share amounts):** | Item | Q2 2025 (thousands of USD) | Q2 2024 (thousands of USD) | Change (YoY) | H1 2025 (thousands of USD) | H1 2024 (thousands of USD) | Change (YoY) | | :--------------------------------- | :------------------------- | :------------------------- | :--------- | :------------------------- | :------------------------- | :--------- | | Net Revenue | $1,416,085 | $1,227,186 | +15.4% | $2,749,057 | $2,373,238 | +15.8% | | Cost of revenue | $1,147,042 | $977,821 | +17.3% | $2,216,962 | $1,885,373 | +17.6% | | Gross Profit | $269,043 | $249,365 | +7.9% | $532,095 | $487,865 | +9.1% | | Selling, general and administrative expenses | $170,092 | $153,783 | +10.6% | $338,210 | $308,525 | +9.6% | | Operating income | $82,710 | $80,675 | +2.5% | $161,898 | $149,705 | +8.1% | | Net interest expense | ($14,447) | ($12,603) | +14.6% | ($27,678) | ($25,805) | +7.2% | | Net income | $50,523 | $53,043 | -4.7% | $97,265 | $97,834 | -0.6% | | Diluted earnings per share | $0.31 | $0.30 | +3.3% | $0.59 | $0.56 | +5.4% | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to $83.119 million for H1 2025, with increased outflows for investing and financing **Condensed Consolidated Statements of Cash Flows (For the six months ended June 30, 2025 vs. June 30, 2024, in thousands of USD):** | Item | H1 2025 (thousands of USD) | H1 2024 (thousands of USD) | Change (thousands of USD) | | :--------------------------------- | :------------------------- | :------------------------- | :------------------------ | | Net cash provided by operating activities | $83,119 | $126,871 | -$43,752 | | Net cash used in investing activities | ($135,713) | ($15,597) | -$120,116 | | Net cash used in financing activities | ($161,153) | ($78,251) | -$82,902 | | Net (decrease) increase in cash and cash equivalents | ($213,747) | $33,023 | -$246,770 | | Cash and cash equivalents at end of period | $198,818 | $376,872 | -$178,054 | - Cash outflow from investing activities significantly increased, primarily due to business acquisitions totaling **$117.247 million** in the first half of 2025[14](index=14&type=chunk) - Cash outflow from financing activities increased, mainly driven by the purchase of company stock and related excise taxes totaling **$152.429 million**[14](index=14&type=chunk) [Non-GAAP Measures and Reconciliations](index=4&type=section&id=Non-GAAP%20Measures%20and%20Reconciliations) Explains the use and reconciliation of non-GAAP financial measures like Adjusted Net Income and Adjusted EBITDA [Note Regarding Use of Non-GAAP Financial Measures](index=4&type=section&id=Note%20Regarding%20Use%20of%20Non-GAAP%20Financial%20Measures) Non-GAAP metrics like Adjusted Net Income and EBITDA provide supplementary performance insights and historical comparisons - The company utilizes Adjusted Net Income, Adjusted EBITDA, and Adjusted EPS as non-GAAP financial measures to provide supplementary information on business operating performance and facilitate comparisons with historical operating results[11](index=11&type=chunk) - Non-GAAP metrics are defined as: Adjusted Net Income (excluding intangible asset amortization, stock-based compensation, restructuring, etc.), Adjusted EBITDA (excluding interest, taxes, depreciation, amortization, stock-based compensation, loss on debt extinguishment, restructuring, etc.), and Adjusted EPS (Adjusted Net Income divided by diluted weighted-average common shares)[11](index=11&type=chunk) [Quarterly Reconciliation Between GAAP and Non-GAAP Measures](index=8&type=section&id=Quarterly%20Reconciliation%20Between%20GAAP%20and%20Non-GAAP%20Measures) Provides a reconciliation of GAAP net income to non-GAAP Adjusted EBITDA and Adjusted Net Income for the quarter **Quarterly Reconciliation Between GAAP and Non-GAAP Measures (in thousands of USD, except per share amounts):** | Item | Q2 2025 (thousands of USD) | Q2 2024 (thousands of USD) | Change (YoY) | H1 2025 (thousands of USD) | H1 2024 (thousands of USD) | Change (YoY) | | :--------------------------------- | :------------------------- | :------------------------- | :--------- | :------------------------- | :------------------------- | :--------- | | Net income | $50,523 | $53,043 | -4.7% | $97,265 | $97,834 | -0.6% | | EBITDA | $100,261 | $100,141 | +0.1% | $193,421 | $185,603 | +4.2% | | Adjusted EBITDA | $114,018 | $108,357 | +5.2% | $225,784 | $206,647 | +9.3% | | Adjusted Net Income | $67,468 | $64,940 | +3.9% | $134,571 | $126,580 | +6.3% | | Diluted earnings per share | $0.31 | $0.30 | +3.3% | $0.59 | $0.56 | +5.4% | | Adjusted diluted earnings per share | $0.41 | $0.37 | +10.8% | $0.81 | $0.72 | +12.5% | [Additional Information](index=2&type=section&id=Additional%20Information) Includes details on the upcoming conference call, forward-looking statements, and investor contact information [Conference Call](index=2&type=section&id=Conference%20Call) Option Care Health will host a conference call on July 30, 2025, to discuss its Q2 financial results - The company will host a conference call on July 30, 2025, at 8:30 AM ET to discuss Q2 financial results, accessible via webcast on investors.optioncarehealth.com with a 90-day replay[5](index=5&type=chunk) [Forward-Looking Statements - Safe Harbor](index=3&type=section&id=Forward-Looking%20Statements%20-%20Safe%20Harbor) This section outlines the nature and risks associated with forward-looking statements in the press release - This press release contains "forward-looking statements" protected by the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995[8](index=8&type=chunk) - Forward-looking statements are based on current beliefs, expectations, and assumptions regarding future revenue, earnings, regulatory developments, market conditions, new products, and growth strategies, but actual results may differ materially due to inherent uncertainties, risks, and changing circumstances[9](index=9&type=chunk) - The company undertakes no obligation to publicly update any forward-looking statements[10](index=10&type=chunk) [Investor Contact](index=2&type=section&id=Investor%20Contact) Provides contact details for investor inquiries, directed to the Chief Financial Officer - Investor contact: Mike Shapiro, Chief Financial Officer, Phone: (312) 940-2538, Email: mike.shapiro@optioncare.com[7](index=7&type=chunk)

Core Viewpoint - The healthcare sector is highlighted as a critical area in the stock market, driven by the need for innovative therapies and medical technologies to address an aging population and rising chronic diseases. There are ten under-the-radar healthcare stocks identified as potential investment opportunities. Group 1: Company Highlights - **Certara**: Positioned to benefit from AI-driven transformations in medicine, providing bio-simulation software that accelerates drug development, with over 90% of novel drugs approved by the FDA since 2014 utilizing its technology [3][4]. - **Beam Therapeutics**: A clinical-stage biotech focusing on precision gene editing therapies for genetic diseases, with its lead candidate in phase 1/2 trials for sickle cell disease, showing promise for long-term growth [5][6]. - **Inspire Medical Systems**: Develops implantable devices for obstructive sleep apnea, reporting a 23% year-over-year revenue increase to $201 million, indicating strong market demand [8]. - **Insulet**: Specializes in tubeless insulin pump technology, targeting a revenue growth of 19% to 22% by 2025, with significant expansion opportunities in international markets [9]. - **Krystal Biotech**: Focuses on rare skin diseases, with its gene therapy expected to generate approximately $400 million in revenue this year, reinforcing its market position [10]. - **LifeMD**: Operates a telehealth platform with a 49% year-over-year revenue increase, driven by a partnership with Novo Nordisk, indicating potential for further growth [11]. - **Option Care Health**: Leading provider of home infusion services, positioned to benefit from the shift towards personalized healthcare [12]. - **Tempus AI**: Utilizes AI for precision medicine, projecting over 80% revenue growth this year to about $1.3 billion, highlighting its expansive data ecosystem [13]. - **TransMedics Group**: Innovates in organ transplantation with its FDA-approved Organ Care System, projecting a 30% revenue growth this year [14][15]. - **Veeva Systems**: Offers cloud-based software for life sciences, serving over 1,000 customers and positioned to capitalize on the industry's digital transformation [16].