Option Care(US:OPCH)2025-07-30 20:01Financial Performance - Net revenue for the three months ended June 30, 2025, was $1,416,085, representing a 15.4% increase from $1,227,186 in the same period of 2024[92] - Gross profit for the three months ended June 30, 2025, was $269,043, a 7.9% increase from $249,365 in 2024, with a gross profit margin decrease to 19.0% from 20.3%[94] - Operating income for the three months ended June 30, 2025, was $82,710, compared to $80,675 in 2024, reflecting an increase of 2.5%[92] - Net income for the three months ended June 30, 2025, was $50,523, compared to $53,043 in 2024, reflecting a decrease of 4.7%[92] - Net revenue for the six months ended June 30, 2025, increased by 15.8% to $2,749.1 million compared to $2,373.2 million for the same period in 2024[102] - Gross profit for the six months ended June 30, 2025, was $532.1 million, reflecting a 9.1% increase from $487.9 million in 2024[102] - Net income for the six months ended June 30, 2025, was $97.3 million, a slight decrease of 0.6% from $97.8 million in 2024[107] Expenses - Selling, general and administrative expenses increased to $170,092 for the three months ended June 30, 2025, up 10.6% from $153,783 in 2024, but decreased as a percentage of revenue to 12.0% from 12.5%[95] - Total operating expenses for the three months ended June 30, 2025, were $186,333, a 10.5% increase from $168,690 in 2024[95] - Operating expenses for the six months ended June 30, 2025, totaled $370.2 million, up 9.5% from $338.2 million in 2024[103] Cash Flow - Cash and cash equivalents as of June 30, 2025, were $198.8 million, down from $412.6 million as of December 31, 2024[111] - Net cash provided by operating activities decreased to $83,119,000 in 2025 from $126,871,000 in 2024, a variance of $43,752,000[119] - Net cash used in investing activities increased significantly to $135,713,000 in 2025 from $15,597,000 in 2024, primarily due to the Intramed Plus acquisition[119][121] - Net cash used in financing activities rose to $161,153,000 in 2025 compared to $78,251,000 in 2024, largely due to a $150 million repurchase of common stock[119][122] - The total cash and cash equivalents at the end of the period decreased to $198,818,000 in 2025 from $376,872,000 in 2024, a decline of $178,054,000[119] Interest and Tax - Interest expense, net for the three months ended June 30, 2025, was $(14,447), an increase of 14.6% from $(12,603) in 2024[96] - Interest expense, net for the six months ended June 30, 2025, decreased by 7.3% to $25.8 million from $27.7 million in 2024[104] - The effective tax rate for the six months ended June 30, 2025, was 26.5%, compared to 24.2% for the same period in 2024[106] Growth Strategy - The increase in net revenue was primarily driven by organic growth in the Company's portfolio of therapies, with balanced growth in the mid-teens for both acute and chronic revenue portfolios[94] - The Company continues to evaluate acquisition opportunities as a key part of its growth strategy[113] Market Risk and Accounting Policies - There were no material changes to the Company's critical accounting policies and estimates as presented in the Form 10-K[124] - The Company reported no material changes to its exposure to market risk from those included in the Form 10-K[125] Other - The increase in depreciation and amortization expense was primarily due to the Intramed Plus acquisition[95] - The decrease in cash from operating activities was attributed to a reduction in accounts payable, offset by increases in accounts receivable and prepaid expenses[120] - Net comprehensive income for the six months ended June 30, 2025, decreased to $93.2 million from $98.5 million in 2024, primarily due to changes in the fair market value of cash flow hedges[109]