Option Care Health (NasdaqGS:OPCH) Q3 2025 Earnings Call October 30, 2025 08:30 AM ET Speaker4Good day and thank you for standing by. Welcome to the Option Care Health third quarter 2025 earnings conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To w ...

Financial Data and Key Metrics Changes - Revenue growth of 15% year-over-year in Q2, with adjusted EBITDA growth of 5% and adjusted EPS growth of 10.8% [6][14][15] - Gross profit increased to $269 million, reflecting an 8% growth compared to the previous year [14] - Cash flow from operations exceeded $90 million in Q2, with a full-year target of over $320 million [9][10] Business Line Data and Key Metrics Changes - Acute therapy growth was in the mid-teens, while chronic therapies also saw mid-teens growth [6][13] - Performance in rare and orphan therapies remained strong, contributing positively to overall revenue [6][14] Market Data and Key Metrics Changes - The company is well-positioned in a growing industry, capitalizing on shifting competitive dynamics and deepening partnerships with payers and pharmaceutical manufacturers [4][8] - The market access team is actively working with national payers to broaden access and improve cost-effective care [8] Company Strategy and Development Direction - The company is increasing its guidance for revenue, adjusted EBITDA, and adjusted EPS for the year, reflecting confidence in ongoing momentum [12][16] - Focus on expanding therapy portfolio and enhancing clinical capabilities through investments in technology and partnerships [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's resilience in navigating regulatory changes and competitive dynamics [5][12] - The company anticipates continued growth in 2025, with expectations for revenue between $5.5 billion and $5.65 billion [16] Other Important Information - The company executed $50 million in share repurchases during the quarter, demonstrating confidence in long-term potential [10][15] - Investments in artificial intelligence and advanced analytics are aimed at improving operational efficiency [11] Q&A Session Summary Question: Can you discuss conversations with payers regarding cost pressures? - Management noted productive conversations with payers, highlighting increased interest in utilizing their services to provide high-quality care at appropriate costs [18][20] Question: Are you seeing growth in chronic therapy utilization? - Management confirmed that chronic therapy utilization continues to grow, with a significant portion of nursing visits occurring in their infusion suites [21][22] Question: Can you elaborate on the advanced practitioner model? - The advanced practitioner model allows the company to serve more complex patients and expand its patient portfolio, particularly in oncology and neurological disorders [24][52] Question: What are your thoughts on the impact of tariffs and MFN pricing? - Management indicated that they do not expect tariffs to have a material impact in 2025 and are proactively managing procurement strategies [62][63] Question: How is the company managing inventory in light of potential tariffs? - The company maintains a month of inventory and has increased inventory levels deliberately to ensure responsiveness to market demands [67][69] Question: What is driving the increase in SG&A expenses? - The increase in SG&A is attributed to acquisitions and accelerated growth initiatives, with a focus on expanding clinical capabilities and new therapy launches [88][89]