BrightSpring Health Services (NasdaqGS:BTSG) Q4 2025 Earnings call February 27, 2026 08:30 AM ET Company ParticipantsAJ Rice - Managing DirectorCharles Rhyee - Managing DirectorDavid Deuchler - Investor RelationsJared Haase - Equity Research AssociateJen Phipps - CFOJon Rousseau - President and CEOMatthew Gillmor - DirectorWhit Mayo - Senior Managing DirectorConference Call ParticipantsAnn Hynes - Senior Healthcare Services Equity Analyst and Managing DirectorBrian Tanquilut - Senior AnalystDavid Larsen - A ...

Guerisoli attributed performance to a mix of acquisitions, same-store improvement, and leadership development, including adding more than 100 leaders to the company’s CEO-in-Training program and elevating 39 leaders to C-level roles within local operations. He reiterated Pennant’s five areas of focus: leadership development, clinical excellence, employee experience, margin improvement, and growth.For the full year, Pennant reported revenue of $947.7 million, up $252.5 million, or 36.3%, versus the prior yea ...

Financial Performance - Addus HomeCare reported a 25.6% increase in net service revenues, reaching $373.1 million for the fourth quarter of 2025 [2][6] - The company's net income for the fourth quarter was $29.8 million, or $1.61 per diluted share, with adjusted net income per diluted share increasing by 28.3% year-over-year to $1.77 [3][6] - Adjusted EBITDA grew by 33.3% year-over-year, amounting to $50.3 million, indicating strong financial health and cash flow generation [4][6] Stock Performance - Despite strong financial results, Addus HomeCare's stock price has decreased by 10.57%, currently trading at $105.20 [4][6] - The stock has fluctuated between $101 and $113 today, with a 52-week high of $124.44 and a low of $88.96 [5] - The company's market capitalization is approximately $1.94 billion, with a trading volume of 679,173 shares, reflecting strong investor interest [5]

Summary of The Pennant Group Conference Call Company Overview - The Pennant Group operates in the home health, hospice, and senior living sectors, primarily on the West Coast and in some Midwest states, with operations across 14 states [8][10][12]. Recent Acquisition - The company is acquiring assets from Amedisys as part of the Optum transaction, specifically in Tennessee, Georgia, and Alabama, which will enhance its presence in the Southeast [10][11]. - The acquisition is expected to close in early Q4 2025, with a court order mandating closure within the first few weeks of October [11]. Business Model and Differentiation - The Pennant Group emphasizes a local leadership model, investing in local leaders to drive operations and decision-making [13][14]. - The company has programs like the CEO in Training program, which allows Executive Directors to become CEOs, fostering an entrepreneurial environment [13][14]. - The focus is on accountability and peer support among local leaders to drive results [14][15]. Growth Strategy - The company is disciplined in its acquisition strategy, prioritizing locations with strong leadership and operational support [15][16]. - It is agnostic regarding service lines, willing to invest in home health, hospice, or senior living opportunities based on leadership availability [17][18]. Operational Challenges and Strategies - The company is preparing for a potential 6.5% cut in reimbursement rates from CMS, emphasizing the need for efficiency and local accountability [33][34]. - Local teams are expected to adapt by reallocating resources and focusing on profitable service lines [34][37]. - The company is actively lobbying against the proposed cuts, emphasizing the importance of home health in the healthcare system [35][36]. Joint Ventures and Partnerships - The Pennant Group is exploring joint ventures as a strategy for market entry and growth, leveraging the reputation and resources of established healthcare systems [28][29][30]. - A joint venture with the University of Tennessee Medical Center will be part of the Tennessee operations [30]. Medicaid Exposure - Approximately 25% to 30% of revenue comes from Medicaid or waiver programs, with the company monitoring changes in Medicaid benefits closely [52][53]. Future Outlook - The company believes that opportunities for consolidation may arise due to potential distress in the industry from reimbursement cuts [39][41]. - The leadership is confident in their ability to maintain strong cash flows and continue investing in growth despite regulatory challenges [40][42]. Key Takeaways - The Pennant Group has a robust operational model focused on local leadership and accountability, which has proven effective in various market conditions [55][56]. - The company is well-positioned to adapt to regulatory changes and capitalize on potential acquisition opportunities in a challenging environment [37][41].

Group 1 - The S&P 500 market index gained 1.9% in August 2025, indicating a potential total return of 25.3% if sustained for 12 months [1] - UnitedHealth Group delivered the strongest performance in the S&P 500 for August 2025 with a 24.2% price gain, recovering from a 20% decline in July due to disappointing earnings [2][8] - The recovery was driven by two significant events on the same day: Berkshire Hathaway's investment in UnitedHealth and the closing of a $3.3 billion acquisition of Amedisys [6][9] Group 2 - Berkshire Hathaway filed a report indicating a new position of 5 million shares in UnitedHealth, which investors interpreted as a strong endorsement of the company's investment value [6][7] - The acquisition of Amedisys had been pending since summer 2023, but the market reaction was more influenced by the Berkshire investment [9]

Core Insights - UnitedHealth Group Incorporated (UNH) has reached a settlement with the DOJ to proceed with its $3.3 billion acquisition of Amedisys, which will involve divesting 164 locations to address antitrust concerns [1][2][7] - The acquisition is significant as it allows UNH to expand into the growing home-healthcare sector, which is increasingly important due to the aging U.S. population and rising demand for in-home services [3][4] - UNH's stock has underperformed, losing 50.1% year-to-date compared to the industry's decline of 41.7% [6] Company Developments - Amedisys was fined $1.1 million for inaccurately certifying compliance with the HSR Act, which initially led to DOJ challenges regarding the merger's potential impact on patient choice and healthcare costs [2][7] - The acquisition is expected to strengthen UNH's Optum arm, enhancing its diversification efforts and positioning the company to better manage rising medical costs and scrutiny over Medicare Advantage payment rates [4][5] Industry Trends - M&A activity in the healthcare sector is on the rise, with Elevance Health acquiring Granular Insurance Company and The Doctors Company agreeing to acquire ProAssurance Corporation for approximately $1.3 billion [5] - The ongoing consolidation in healthcare indicates a strategic shift towards enhancing service offerings and improving cost management solutions for self-funded employers [5] Valuation and Estimates - UNH currently trades at a forward price-to-earnings ratio of 14.13, above the industry average of 12.30, with a Value Score of B [9] - The Zacks Consensus Estimate for UNH's 2025 earnings is projected at $17.32 per share, reflecting a 37.4% decline from the previous year [10]

Financial Data and Key Metrics Changes - The company reported Q2 2025 revenue of $219.5 million, an increase of $50.8 million or 30.1% year-over-year, and adjusted EBITDA of $16.4 million, up $3.2 million or 24.5% from the prior year quarter [7][32][10] - GAAP diluted earnings per share for the quarter was $0.20, while adjusted diluted earnings per share was $0.27 [32] Business Line Data and Key Metrics Changes - In the Home Health and Hospice segment, revenue reached $166 million, an increase of $40.7 million or 32.5%, with adjusted EBITDA of $25.5 million, up $5.9 million or 29.9% year-over-year [15] - Hospice revenue was $73.8 million, an increase of $14.4 million or 24.3%, with hospice admissions up 14.7% and average daily census up 21.4% [16] - Home health revenue grew to $79.2 million, an increase of $17.6 million or 28.5%, with total home health admissions increasing 26.1% [19] - Senior Living segment revenue improved to $53.5 million, an increase of $10 million or 23.1%, with same store occupancy exceeding 80% [24][26] Market Data and Key Metrics Changes - The company anticipates full-year revenue in the range of $852.8 million to $887.6 million, with adjusted earnings per share expected between $1.09 and $1.15 [13][32] - The proposed 2026 Home Health Rule suggests a net reduction of 6.4% in aggregate payments to home health agencies, which could impact the company's revenue [21][22] Company Strategy and Development Direction - The company is focused on leadership development, clinical excellence, employee engagement, margin improvement, and growth as key focus areas for continuous improvement [7] - The acquisition of divested assets from Amedisys and UnitedHealth Group is seen as a significant opportunity to expand operations in attractive markets, particularly in Tennessee, Alabama, and Georgia [12][29] - The company is committed to adapting its operations to the changing regulatory environment and believes in the essential role of home health services in the healthcare continuum [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the proposed home health rule, stating it could negatively affect access to care for vulnerable patients and increase overall healthcare spending [22][23] - Despite challenges, management remains optimistic about the company's growth trajectory, citing strong performance across various segments and a healthy balance sheet [10][13] Other Important Information - The company has a strong focus on operational efficiency and has implemented various initiatives to improve clinical quality and financial performance [20][24] - The company is actively preparing for the integration of newly acquired assets and has invested in leadership and operational training to ensure a smooth transition [58][70] Q&A Session Summary Question: Insights on the Tennessee market and payer landscape - Management highlighted the unique opportunities in the Tennessee market, emphasizing the potential for building a care continuum and the presence of quality providers [41][43] Question: Impact of proposed clawback on capitated relationships - Management acknowledged that adjustments from Medicare rate changes could affect both traditional and capitated contracts, but emphasized the company's diversified business model [46][48] Question: Sustainability of revenue per occupied bed in senior living - Management indicated that while they anticipate mid-single-digit growth in revenue per occupied bed, they are encouraged by recent occupancy growth [54][56] Question: Preparations for the Amedisys acquisition - Management detailed investments in leadership and resources to ensure a successful transition and operational efficiency post-acquisition [57][58] Question: Balancing M&A versus market share growth amid regulatory changes - Management expressed confidence that disruptions in the market could create opportunities for growth, emphasizing a strategic approach to acquisitions [59][62]

Unitedhealth and home health and hospice care company Amedisys have reached a proposed a settlement with the US Justice Department in a lawsuit that challenged the companies’ $3.3 billion deal https://t.co/Dz04v51xeF ...

Group 1 - The article emphasizes a technical focus on fundamental value drivers of business economics to identify high probability long-term investment opportunities [1] - The company aims to buy securities at prices that are appropriate relative to their intrinsic worth, indicating a value investing strategy [1] - Research covers a wide range of financial markets, including investment securities and futures & options markets, catering to various market participants [1] Group 2 - The analyst discloses no current stock or derivative positions in the companies mentioned, ensuring an unbiased perspective [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company mentioned [2] - Seeking Alpha clarifies that past performance does not guarantee future results, highlighting the importance of individual due diligence [3]

Company Overview - Amedisys Inc. provides home health and hospice services across the U.S., catering to the growing chronic, co-morbid, and aging population [13] - The company offers clinically focused programs for chronic conditions such as diabetes and coronary artery disease, along with various rehabilitative programs [13] Zacks Rank and Style Scores - Amedisys holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating a strong overall rating [14] - The Value Style Score for Amedisys is B, supported by attractive valuation metrics, including a forward P/E ratio of 19.74 [14] - Recent upward revisions in earnings estimates by three analysts have increased the Zacks Consensus Estimate by $0.09 to $5.00 per share for fiscal 2025 [14] Investment Potential - Amedisys is highlighted as a stock to watch due to its solid Zacks Rank and top-tier Value and VGM Style Scores, making it a candidate for investors' short lists [15]