Option Care(OPCH) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Performance & Outlook 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 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] CEO Commentary 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] Updated Full Year 2025 Financial Guidance 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 Overview of Option Care Health's position as a leading infusion service provider and its operational scope About Option Care Health 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] Consolidated Financial Statements Presents the company's condensed consolidated balance sheets, statements of earnings, and cash flows for recent periods Condensed Consolidated Balance Sheets 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 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 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] - Cash outflow from financing activities increased, mainly driven by the purchase of company stock and related excise taxes totaling $152.429 million[14] Non-GAAP Measures and Reconciliations 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 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] - 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] Quarterly Reconciliation Between GAAP and Non-GAAP Measures 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 Includes details on the upcoming conference call, forward-looking statements, and investor contact information Conference Call 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] Forward-Looking Statements - Safe Harbor 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] - 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] - The company undertakes no obligation to publicly update any forward-looking statements[10] Investor Contact 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]