Premier(US:PINC)2025-11-04 21:31Financial Performance - Total net revenue for Q1 FY2026 was $240.0 million, a decrease of 3% from $248.1 million in the prior-year period[2][8] - Net income from continuing operations was $15.3 million, or $0.21 per share, down 79% from $72.9 million, or $0.72 per share, in the prior-year period[2][9][10] - Adjusted EBITDA for Q1 FY2026 was $55.0 million, a decrease of 12% from $62.4 million in the prior-year period[2][11] - Performance Services segment net revenue decreased by 9% to $87.9 million, primarily due to lower license revenue[17] - Supply Chain Services segment net revenue was approximately flat at $152.1 million compared to $151.4 million in the prior-year period[13] - Adjusted EPS for Q1 FY2026 was $0.30, down 12% from $0.34 in the prior-year period[6][12] - Operating income decreased to $24,884,000 for the three months ended September 30, 2025, down from $35,315,000 in the prior year, representing a decline of approximately 29%[49] - Net income attributable to stockholders for the three months ended September 30, 2025, was $17,579,000, compared to $70,784,000 in the same period of 2024, reflecting a decrease of about 75%[49] - Basic earnings per share from continuing operations was $0.21 for the three months ended September 30, 2025, down from $0.72 in the prior year, a decline of approximately 71%[49] - Net income from continuing operations for Q3 2025 was $15,287, a decrease of 78.9% compared to $72,940 in Q3 2024[58] - Free cash flow for Q3 2025 was $(14,022), down from $16,170 in Q3 2024, indicating a significant decline in cash generation[55] - Adjusted EBITDA for Q3 2025 was $54,950, a decrease of 12.0% from $62,428 in Q3 2024[58] - Net revenue for Q3 2025 was $240,004, down 3.4% from $248,142 in Q3 2024[66] - Basic earnings per share attributable to stockholders for Q3 2025 was $0.21, down from $0.71 in Q3 2024[63] Cash and Liquidity - Cash and cash equivalents as of September 30, 2025, were $43.4 million, down from $83.7 million as of June 30, 2025[18] - Net cash provided by operating activities decreased to $15.9 million from $80.0 million in the prior-year period[19] - Cash and cash equivalents decreased significantly to $43,380,000 as of September 30, 2025, from $83,725,000 as of June 30, 2025, a decline of approximately 48%[51] - The company reported a net cash provided by operating activities from continuing operations of $15,930, down 80.1% from $80,043 in Q3 2024[55] - The company made cash payments of $10,448 to OMNIA for the sale of future revenues in Q3 2025, compared to $20,949 in Q3 2024[55] - The company reported a net decrease in cash and cash equivalents of $40,345 in Q3 2025, compared to a decrease of $38,190 in Q3 2024[53] Assets and Liabilities - Total assets decreased to $3,051,371,000 as of September 30, 2025, from $3,097,074,000 as of June 30, 2025, a reduction of about 1.5%[51] - Total liabilities decreased to $1,523,098,000 as of September 30, 2025, from $1,566,497,000 as of June 30, 2025, a reduction of about 2.8%[51] Corporate Actions and Guidance - The company has suspended the declaration and distribution of common stock dividends due to a pending acquisition by Patient Square Capital[24] - Premier is withdrawing previously issued fiscal-year 2026 guidance due to the pending acquisition[7] - The pending acquisition of Premier by Patient Square Capital is subject to regulatory approvals and other conditions, which may affect future operations and financial results[44] - The company expects to wind down the remaining components of the Contigo Health business by December 31, 2025, which may impact future financial performance[42] - Adjusted net income and adjusted EBITDA measures excluding Contigo Health are provided for better understanding of operating performance[42] Impairment and Other Expenses - The company incurred impairment of assets amounting to $1,758 in Q3 2025, with no such expense reported in Q3 2024[58]