Guardian Pharmacy Services, Inc.(GRDN) - 2025 Q2 - Quarterly Results

Company Overview & Executive Summary CEO Commentary Guardian Pharmacy Services' CEO reported strong Q2 2025 performance with double-digit growth, leading to raised full-year guidance driven by organic growth and new acquisitions - Revenue, resident count, and Adjusted EBITDA all achieved strong double-digit growth in Q2 2025[3] - Full-year FY2025 revenue and Adjusted EBITDA guidance were raised, primarily due to better-than-expected organic growth and early contributions from new acquisitions[4] - A recent secondary offering increased the public float, enhancing trading liquidity and expanding the institutional investor base to create long-term shareholder value[4] About Guardian Pharmacy Services Guardian Pharmacy Services is a leading U.S. long-term care pharmacy provider, serving over 195,000 residents across 38 states with 52 pharmacies - The company is one of the leading long-term care (LTC) pharmacy services companies in the U.S.[12] - As of June 30, 2025, the company operates a network of 52 pharmacies, serving over 195,000 residents and approximately 7,400 long-term care facilities across 38 states[12] Financial Performance Second Quarter Financial Results Q2 2025 revenue grew 15% to $344.3 million, with resident count up 12%, while net income decreased to $8.8 million due to tax and share-based compensation Second Quarter Financial Results | Metric | Q2 2025 | Q2 2024 | Y-o-Y Growth | | :----------------------- | :------------- | :------------- | :--------- | | Revenue | $344.3 million | $300.0 million | 15% | | Resident Count | Over 195,000 | N/A | 12% | | Net Income | $8.8 million | $15.8 million | -44.3% | | Adjusted EBITDA | $25.0 million | $21.7 million | 15.2% | | Diluted EPS | $0.14 | N/A | N/A | | Adjusted EPS | $0.23 | N/A | N/A | | Cash & Cash Equivalents | $18.8 million | N/A | N/A | - The year-over-year decrease in net income was primarily due to income tax expense and share-based compensation expense incurred in Q2 2025, making it not comparable to the prior year period[8] FY 2025 Outlook – Raising Guidance Guardian Pharmacy Services raised its FY2025 revenue guidance to $1.39-$1.41 billion and Adjusted EBITDA to $100-$102 million, excluding future acquisitions FY 2025 Outlook | Metric | Updated Guidance | Previous Guidance | | :-------------- | :----------------------------- | :----------------------------- | | Revenue | $1.39 billion - $1.41 billion | $1.33 billion - $1.35 billion | | Adjusted EBITDA | $100.0 million - $102.0 million | $97.0 million - $101.0 million | - The updated guidance excludes future acquisitions or greenfield expansions[5] Operational and Strategic Highlights Acquisitions & Greenfields Guardian expanded its national footprint with two new pharmacies and one greenfield launch, plus a post-quarter acquisition in Oregon - Two new pharmacies were added this quarter in Wichita, Kansas (April) and Seattle, Washington (June)[9] - A greenfield pharmacy was launched in Naples, Florida (April)[9] - Post-quarter, on August 4, the company acquired Managed Healthcare Pharmacy, establishing its first physical presence in Oregon[10] Capital Markets In May 2025, Guardian completed a non-dilutive secondary offering of 8.625 million Class A common shares, increasing public float and liquidity - A non-dilutive secondary offering of 8.625 million shares of Class A common stock was completed in May 2025[11] - This offering significantly increased the public float, enhanced trading liquidity, and expanded the institutional investor base[11] - The company retained no proceeds, and the total number of Class A common stock remained unchanged[11] Financial Statements Consolidated Balance Sheets Total assets increased to $356.3 million by June 30, 2025, with cash and cash equivalents rising significantly, alongside growth in total liabilities and equity Consolidated Balance Sheets | Metric (in thousands of dollars) | Dec 31, 2024 | Jun 30, 2025 | Change | | :-------------------------- | :------------- | :------------- | :------- | | Cash & Cash Equivalents | 4,660 | 18,817 | +14,157 | | Inventory | 40,550 | 44,158 | +3,608 | | Total Current Assets | 151,985 | 170,461 | +18,476 | | Goodwill | 69,296 | 76,161 | +6,865 | | Total Assets | 320,810 | 356,334 | +35,524 | | Accounts Payable | 102,420 | 104,991 | +2,571 | | Total Current Liabilities | 144,121 | 143,993 | -128 | | Total Liabilities | 170,834 | 176,663 | +5,829 | | Total Equity | 149,976 | 179,671 | +29,695 | Consolidated Statements of Operations Q2 2025 revenue grew 15% to $344.3 million, but net income declined to $8.8 million due to increased income tax and SG&A expenses Consolidated Statements of Operations | Metric (in thousands of dollars) | Q2 2025 | Q2 2024 | Six Months Ended Jun 30, 2025 | Six Months Ended Jun 30, 2024 | | :-------------------------------- | :------------- | :------------- | :------------- | :------------- | | Revenue | 344,334 | 300,037 | 673,642 | 575,447 | | Cost of Sales | 276,188 | 238,749 | 541,147 | 459,058 | | Gross Profit | 68,146 | 61,288 | 132,495 | 116,389 | | SG&A Expenses | 55,566 | 44,283 | 106,910 | 91,451 | | Operating Income | 12,580 | 17,005 | 25,585 | 24,938 | | Income Tax Expense | 3,760 | — | 7,593 | — | | Net Income | 8,827 | 15,848 | 18,100 | 22,943 | | Diluted EPS | 0.14 | N/A | 0.29 | N/A | Consolidated Statements of Cash Flows Net cash from operations remained flat at $37.5 million, while investing cash outflow increased and financing cash outflow significantly decreased due to equity activities Consolidated Statements of Cash Flows | Metric (in thousands of dollars) | Six Months Ended Jun 30, 2025 | Six Months Ended Jun 30, 2024 | | :------------------------------------ | :------------- | :------------- | | Net Cash Provided by Operating Activities | 37,486 | 37,787 | | Net Cash Used in Investing Activities | (18,549) | (16,702) | | Net Cash Used in Financing Activities | (4,780) | (20,299) | | Net Change in Cash & Cash Equivalents | 14,157 | 786 | | Cash & Cash Equivalents at End of Period | 18,817 | 1,538 | - For the first six months of 2025, net proceeds from equity issuance were $29.039 million, with an equivalent amount of Class A common stock repurchased[30] Non-GAAP Financial Measures & Reconciliations Use of Non-GAAP Financial Measures Guardian uses non-GAAP metrics like Adjusted EBITDA and EPS to assess core operations, acknowledging their limitations and the impracticality of reconciling future projections - The company uses Adjusted EBITDA, Adjusted EPS, and Adjusted SG&A to better understand and evaluate core operating performance and trends[20] - Adjusted EBITDA is defined as net income (loss) plus interest expense, income tax, depreciation, and amortization, further adjusted for share-based compensation, acquisition accounting adjustments, certain legal and regulatory matters, and financing-related activities[17] - Limitations of non-GAAP measures include not reflecting interest and income tax payments, capital expenditure requirements, changes in working capital, and the impact of share-based compensation and certain legal and regulatory matters[23] - The company cannot quantitatively reconcile projected Adjusted EBITDA without unreasonable effort due to the variability and complexity of certain reconciling items like income tax and share-based compensation[24] Reconciliation of Non-GAAP Financial Measures Detailed reconciliation tables are provided for Adjusted EBITDA, EPS, and SG&A to GAAP equivalents, with Q2 2025 Adjusted EBITDA at $25.0 million or 7.2% of revenue Reconciliation of Non-GAAP Financial Measures | Metric (in thousands of dollars) | Q2 2025 | Q2 2024 | Six Months Ended Jun 30, 2025 | Six Months Ended Jun 30, 2024 | | :------------------------------------ | :------------- | :------------- | :------------- | :------------- | | Net Income | 8,827 | 15,848 | 18,100 | 22,943 | | EBITDA | 18,008 | 21,788 | 36,379 | 34,399 | | Adjusted EBITDA | 24,952 | 21,676 | 48,385 | 41,931 | | Adjusted EBITDA as % of Revenue | 7.2% | 7.2% | 7.2% | 7.3% | | Diluted EPS | 0.14 | N/A | 0.29 | N/A | | Adjusted EPS | 0.23 | N/A | 0.47 | N/A | | GAAP SG&A Expenses | 55,566 | 44,283 | 106,910 | 91,451 | | Adjusted SG&A | 48,622 | 42,725 | 94,904 | 82,249 | - Reconciling items include share-based compensation, certain legal and regulatory matters, financing-related activities, amortization of acquisition-related intangible assets, and adjusted income tax impact[34]