Company Performance - BrightSpring Health Services, Inc. reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, and up from $0.12 per share a year ago, representing an earnings surprise of 137.50% [1] - The company posted revenues of $2.88 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.44%, compared to revenues of $2.58 billion in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - BrightSpring Health Services, Inc. shares have increased by approximately 5.1% since the beginning of the year, while the S&P 500 has declined by 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $2.89 billion, and for the current fiscal year, it is $0.57 on revenues of $11.89 billion [7] Industry Outlook - The Medical Services industry, to which BrightSpring belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 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: 001-41938 BrightSpring Health Services, Inc. (Exact Name of Registrant as Specified in its Charter) | Delaware | 82-2956404 | | --- | --- | | (State or other jurisdiction of | (I. ...

Financial Performance - BrightSpring's total revenue for Q1 2025 reached $2878 million, a 25.9% increase year-over-year[18] - Adjusted EBITDA for Q1 2025 was $131.1 million, representing a 28.2% growth compared to the previous year[18] - Pharmacy Solutions revenue grew by 28.1% to $2532 million in Q1 2025[18] - Provider Services revenue increased by 12.1% to $346 million in Q1 2025[18] Segment Performance - Within Pharmacy Solutions, Infusion and Specialty revenue saw a 33.2% increase, reaching $1952 million[18] - Home and Community Pharmacy revenue grew by 13.6% to $581 million[18] - Pharmacy Segment EBITDA increased by 31.2% to $116 million[18] - Home Health Care revenue within Provider Services grew by 20.9% to $178 million[18] Business Metrics - Home Health Care average daily census increased by 11.6% year-over-year, reaching 30,241 in Q1 2025[29] - Prescriptions dispensed in Pharmacy Solutions increased by 10.4% year-over-year[25] - Revenue per script in Pharmacy Solutions grew by 16.0% year-over-year to $232.79[25] Guidance - The company updated its FY 2025 total revenue guidance to a range of $12000 million to $12500 million, representing a 19.1% to 24.1% year-over-year growth[37]

First Quarter 2025 Earnings Overview BrightSpring reported strong Q1 2025 financial results, with significant revenue and Adjusted EBITDA growth, and positive net income [Financial Highlights (Q1 2025)](index=1&type=section&id=Financial%20Highlights%20(Q1%202025)) BrightSpring reported strong Q1 2025 financial results, with significant growth in revenue, gross profit, and Adjusted EBITDA, and a return to net income | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | Change (%) | | :-------------------------------- | :----------------- | :----------------- | :--------- | | Net Revenue | $2,878 | $2,286 | 25.9% | | Gross Profit | $338 | $292 | 15.7% | | Net Income (Loss) from Cont. Ops | $9.2 | $(56.0) | N/A | | Adjusted EBITDA | $131 | $102 | 28.2% | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Jon Rousseau highlighted the company's foundational focus on quality and efficient home and community-based care for complex populations, expressing satisfaction with Q1 results across Pharmacy and Provider service lines and confidence in future service delivery - CEO Jon Rousseau emphasized the company's foundational focus on quality and efficient care in home and community settings for complex populations, driving growth and financial performance[2](index=2&type=chunk) - The company is pleased with Q1 results across Pharmacy and Provider service lines, reaching more patients, leveraging its scaled platform, and investing in best practices[2](index=2&type=chunk) [Full Year 2025 Guidance Update](index=1&type=section&id=Full%20Year%202025%20Guidance%20Update) BrightSpring increased its full-year 2025 guidance for both Revenue and Adjusted EBITDA, excluding the Community Living business, projecting strong growth across both Pharmacy and Provider segments - BrightSpring increased its full-year 2025 guidance for Revenue and Adjusted EBITDA, excluding the Community Living business and the effects of any future closed acquisitions[5](index=5&type=chunk)[7](index=7&type=chunk) | Metric | Guidance Range (Millions) | Growth vs FY2024 (%) | | :---------------------- | :------------------------ | :------------------- | | Net Revenue | $12,000 - $12,500 | 19.1% - 24.1% | | Pharmacy Segment Revenue | $10,550 - $11,000 | 20.5% - 25.7% | | Provider Segment Revenue | $1,450 - $1,500 | 10.0% - 13.8% | | Adjusted EBITDA | $570 - $585 | 23.9% - 27.2% | [Strategic Updates](index=1&type=section&id=Strategic%20Updates) The planned divestiture of the Community Living business to Sevita, announced in January 2025, remains on track for completion this year - The planned divestiture of the Community Living business to Sevita, announced on January 20, 2025, is on track to be completed this year[5](index=5&type=chunk) Company Information This section provides an overview of BrightSpring Health Services and details regarding its Q1 2025 earnings webcast and conference call [About BrightSpring Health Services](index=3&type=section&id=About%20BrightSpring%20Health%20Services) BrightSpring Health Services is a leading provider of complementary home- and community-based pharmacy and provider health solutions for complex populations, serving over 450,000 patients daily across all 50 states with a focus on quality metrics and cost reduction - BrightSpring provides complementary home- and community-based pharmacy and provider health solutions for complex populations in need of specialized and/or chronic care[12](index=12&type=chunk) - The company serves over **450,000 customers, clients, and patients daily** across all 50 states through service lines including pharmacy, home health care and primary care, and rehabilitation and behavioral health[12](index=12&type=chunk) - BrightSpring consistently demonstrates strong quality metrics, improves the quality of life and health for high-need individuals, and reduces overall costs to the healthcare system[12](index=12&type=chunk) [Webcast and Conference Call Details](index=3&type=section&id=Webcast%20and%20Conference%20Call%20Details) BrightSpring hosted a conference call on May 2, 2025, to discuss Q1 2025 results, with a live and archived webcast available on its investor relations website, where supplemental financial information was also posted - A conference call was held on **May 2, 2025, at 8:30 a.m. Eastern Time**, with online registration required for investors[10](index=10&type=chunk) - A live and archived webcast, along with supplemental financial information, is available on the 'Events & Presentations' section of the BrightSpring investor relations website[11](index=11&type=chunk) Consolidated Financial Statements This section presents BrightSpring's consolidated balance sheets, statements of operations, and cash flows for the first quarter of 2025 and comparative periods [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, BrightSpring's total assets decreased slightly compared to December 31, 2024, primarily due to a reclassification of non-current assets held for sale to current assets held for sale, while total liabilities also decreased | Item | March 31, 2025 (Thousands) | December 31, 2024 (Thousands) | Change (Thousands) | | :----------------------------------- | :------------------------- | :-------------------------- | :----------------- | | Total assets | $5,846,945 | $5,926,140 | $(79,195) | | Current assets held for sale | $836,183 | $131,447 | $704,736 | | Non-current assets held for sale | — | $687,960 | $(687,960) | | Total liabilities | $4,156,378 | $4,274,555 | $(118,177) | | Total shareholders' equity | $1,687,369 | $1,647,855 | $39,514 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, BrightSpring reported a significant increase in total revenues and a shift from a net loss to net income from continuing operations, driven by higher product and service revenues and reduced interest expense | Item | Q1 2025 (Thousands) | Q1 2024 (Thousands) | Change (Thousands) | | :------------------------------------------------- | :------------------ | :------------------ | :----------------- | | Total revenues | $2,878,129 | $2,285,766 | $592,363 | | Gross profit | $338,369 | $292,491 | $45,878 | | Operating income (loss) | $50,739 | $(15,335) | $66,074 | | Interest expense, net | $41,763 | $54,470 | $(12,707) | | Income (loss) from continuing operations, net of taxes | $9,216 | $(56,027) | $65,243 | | Net income (loss) attributable to BrightSpring | $29,542 | $(45,750) | $75,292 | | Basic EPS from continuing operations | $0.05 | $(0.31) | N/A | | Diluted EPS from continuing operations | $0.05 | $(0.31) | N/A | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) BrightSpring's operating activities generated positive cash flow in Q1 2025, a significant improvement from a net cash outflow in Q1 2024, while cash used in investing activities decreased and financing activities shifted from providing cash to using cash | Item | Q1 2025 (Thousands) | Q1 2024 (Thousands) | Change (Thousands) | | :-------------------------------------- | :------------------ | :------------------ | :----------------- | | Net cash provided by (used in) operating activities | $101,598 | $(78,859) | $180,457 | | Net cash used in investing activities | $(24,191) | $(30,938) | $6,747 | | Net cash (used in) provided by financing activities | $(86,018) | $154,763 | $(240,781) | | Net (decrease) increase in cash and cash equivalents | $(8,611) | $44,966 | $(53,577) | | Cash and cash equivalents at end of period | $52,642 | $58,037 | $(5,395) | Non-GAAP Financial Measures This section explains BrightSpring's non-GAAP financial measures, including EBITDA and Adjusted EBITDA, and provides their reconciliation to GAAP net income [Explanation of Non-GAAP Measures](index=5&type=section&id=Explanation%20of%20Non-GAAP%20Measures) BrightSpring uses non-GAAP financial measures like EBITDA and Adjusted EBITDA to provide investors and analysts with a clearer view of core operating performance by excluding non-recurring or non-operational items, aiding in performance comparison and strategic evaluation, while acknowledging their limitations as analytical tools - Non-GAAP measures (EBITDA, Adjusted EBITDA) are used to supplement GAAP results, assisting investors and analysts in comparing operating performance consistently by excluding items not indicative of core operations[19](index=19&type=chunk)[21](index=21&type=chunk) - Management uses these measures for evaluating business strategies, budgeting, establishing incentive compensation, and comparing performance against peer companies[19](index=19&type=chunk) - EBITDA is defined as net income (loss) from continuing operations before income tax benefit, interest expense, net, and depreciation and amortization. Adjusted EBITDA further excludes non-cash share-based compensation, acquisition/integration/transaction costs, restructuring/divestiture costs, legal costs, significant projects

Core Viewpoint - BrightSpring Health Services, Inc. reported strong financial results for Q1 2025, with significant increases in revenue and adjusted EBITDA, and has raised its full-year guidance for revenue and adjusted EBITDA [1][6]. Financial Performance - Net Revenue for Q1 2025 reached $2,878 million, a 25.9% increase from $2,286 million in Q1 2024 [3][6]. - Gross Profit for the same period was $338 million, up 15.7% from $292 million in Q1 2024 [3][6]. - Net Income from Continuing Operations was $9.2 million, a turnaround from a Net Loss of $56.0 million in Q1 2024 [3][6]. - Adjusted EBITDA for Q1 2025 was $131 million, reflecting a 28.2% increase compared to $102 million in Q1 2024 [4][6]. Segment Performance - Pharmacy Solutions Revenue was $2,532 million, up 28% from $1,977 million in Q1 2024 [5]. - Provider Services Revenue increased by 12% to $346 million from $309 million in Q1 2024 [5]. Guidance and Future Outlook - The company has increased its 2025 Revenue guidance to a range of $12,000 million to $12,500 million, representing a growth of 19.1% to 24.1% [6][14]. - Adjusted EBITDA guidance for 2025 is now set at $570 million to $585 million, indicating a growth of 23.9% to 27.2% [6][14]. Strategic Initiatives - The planned divestiture of the Community Living business to Sevita is on track to be completed within the year [6].

Core Viewpoint - BrightSpring Health Services, Inc. (BTSG) is expected to report a year-over-year increase in earnings and revenues for the quarter ended March 2025, with a consensus EPS estimate of $0.14, reflecting a +16.7% change, and revenues projected at $2.73 billion, up 5.9% from the previous year [1][3]. Earnings Expectations - The stock price may increase if the actual earnings exceed expectations in the upcoming report scheduled for May 2, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 1.73% lower over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +106.62% for BrightSpring, suggesting analysts have become more optimistic about the company's earnings prospects [11]. - The company currently holds a Zacks Rank of 3, indicating a hold position, which suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, BrightSpring exceeded the expected EPS of $0.19 by delivering $0.22, resulting in a surprise of +15.79%. Over the last four quarters, the company has beaten consensus EPS estimates twice [13]. Industry Comparison - Another player in the Zacks Medical Services industry, Organon (OGN), is expected to report earnings of $0.92 per share, reflecting a year-over-year decline of -24.6%, with revenues projected at $1.54 billion, down 4.9% [17]. - Organon's consensus EPS estimate has been revised down by 1.7% over the last 30 days, and it currently has a negative Earnings ESP of -1.91%, making it difficult to predict a beat on the consensus EPS estimate [18].

Company Announcement - BrightSpring Health Services, Inc. plans to release its first quarter 2025 financial results on May 2, 2025, prior to an earnings conference call at 8:30 a.m. ET on the same day [1] Conference Call Details - Participants can register for the conference call before the 8:30 a.m. ET start, and a live and archived webcast will be available on the Company's investor relations website [2] Company Overview - BrightSpring Health Services provides home- and community-based pharmacy and provider health solutions for complex populations, serving over 450,000 customers daily across all 50 states [3] - The Company offers services including pharmacy, home health care, primary care, rehabilitation, and behavioral health, demonstrating strong quality metrics and improving health outcomes while reducing healthcare costs [3]

Financial Data and Key Metrics Changes - Total revenue for 2024 was $11,300,000,000, representing a 28% year-over-year growth, with Q4 revenue of $3,100,000,000 reflecting a 29% increase from the prior year [10][25] - Adjusted EBITDA for the full year 2024 was $588,000,000, showing a 16% growth year-over-year, while Q4 adjusted EBITDA was $167,000,000, growing 17% compared to Q4 2023 [11][27] - The company increased its revenue and adjusted EBITDA guidance for 2025, expecting total revenue between $11,600,000,000 and $12,100,000, and adjusted EBITDA between $545,000,000 and $560,000,000 [30][31] Business Line Data and Key Metrics Changes - Pharmacy Solutions revenue for 2024 was $8,800,000,000, a 34% increase year-over-year, with Q4 revenue of $2,400,000,000 growing 34% compared to Q4 2023 [10][25] - Provider Services revenue for 2024 was $2,500,000,000, reflecting a 9% growth year-over-year, with Q4 revenue of $656,000,000, an 11% increase from the prior year [10][25] - Home Health Care revenue grew 17% year-over-year in Q4, while Community and Rehab Care revenue increased by 8% [20][26] Market Data and Key Metrics Changes - The company reported a 13% lower healthcare cost for patients in skilled nursing facilities and a 31% reduction for patients in assisted living, indicating effective cost management and care delivery [14] - The company achieved high customer satisfaction scores, with a net promoter score of 98 for Onco360 and 100 for CareMed, reflecting strong service quality in specialty pharmacy [12][16] Company Strategy and Development Direction - The company is focused on operational efficiencies and quality improvements, aiming to deepen its reach to more patients and enhance service delivery across pharmacy and provider businesses [10][23] - The divestiture of the Community Living business is expected to streamline operations and enhance growth rates in remaining segments, with a strategic focus on home health care, rehab, and personal care [22][23] - The company continues to invest in technology and automation to drive efficiencies and improve service delivery across all business lines [16][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining double-digit growth rates, emphasizing a strong operational infrastructure and a focus on quality and efficiency [60][63] - The company is optimistic about the reimbursement environment for home health and hospice services, anticipating enhanced rates due to improved quality metrics [51][56] - Management acknowledged potential risks from the IRA but remains confident in the company's diversified growth drivers to absorb any impacts [87] Other Important Information - The company has launched 12 limited distribution drugs (LDDs) in 2024, with plans for an additional 16 to 18 launches in the next 12 to 18 months, indicating a robust pipeline in specialty pharmacy [18] - The company has implemented over 100 procurement and automation programs to drive process improvements and cost efficiencies [16][48] Q&A Session Summary Question: Comments on limited distribution drug business and competitive landscape - Management noted no significant changes in the market, with a trend towards more niche therapies and a narrowing of pharmacy networks, which has benefited the company [34] Question: Growth trajectory for the infusion business - Management expects the infusion business to grow above 20% in 2025, driven by operational improvements and a focus on specialty care [40] Question: Cumulative savings from internal efficiency initiatives - Management highlighted ongoing efforts in process optimization and automation, contributing to EBITDA growth and reinvestment in the business [49] Question: Outlook for home health and hospice development - Management aims to double home health and hospice revenue in the next five years, supported by a favorable reimbursement environment [51] Question: ACO arrangements and their impact - Management views ACO participation as an upside opportunity, with expectations for shared savings based on positive outcomes [74] Question: Specialty pricing and revenue growth sustainability - Management reported stability in specialty pricing and a diverse portfolio that supports continued revenue growth [77]

Forward-Looking Statements; Non-GAAP Financial Information Fourth Quarter 2024 Earnings Presentation March 6, 2025 1 Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, our operations and financial performance. Forward-looking statements include all statements that are not historical facts. These forward-loo ...

Table of Contents As filed with the Securities and Exchange Commission on January 25, 2024 Registration No. 333-276348 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 3 to FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 BrightSpring Health Services, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) Delaware 8082 82-2956404 (I ...