Core Insights - BrightSpring Health Services anticipates broad-based growth and margin expansion in 2026, driven by strong volume growth and operational efficiencies across pharmacy and provider services [4][3][6] Pharmacy Growth - Specialty and infusion segments are expected to continue larger script growth opportunities, with 2026 growth anticipated to be at least consistent with 2025 [1] - The company is focused on script growth in home and community pharmacy, although it will face year-over-year headwinds due to prior customer profitability actions and divestitures starting in Q3 2025 [1] Financial Guidance - BrightSpring has provided EBITDA guidance for 2026 in the range of $760 million to $790 million, with core growth (excluding Amedisys assets) projected at 18% to 23% [2][6] - The company has mitigated the impact of the Inflation Reduction Act (IRA) on EBITDA from an initial estimate of $35–40 million to approximately $15 million through negotiations with pharmacy benefit managers (PBMs) [8][9] Operational Efficiency - Multiple contributors to margin expansion include ongoing operational efficiencies, process improvements, and favorable mix dynamics in both pharmacy and provider services [3][4] - The company expects approximately 16 to 18 limited distribution drug (LDD) launches in 2026, which will support EBITDA margin leverage [7] Provider Services and Acquisitions - BrightSpring is integrating assets acquired from Amedisys, expecting to improve margins and drive growth through this integration [16] - The company has seen significant mitigation from home health reimbursement rules for 2025, reinforcing the importance of home health services [15] Balance Sheet and Capital Allocation - Leverage has decreased from a peak of 4.5x to 2.99x at year-end, with a long-term target of approximately 2.5x or below, and an expectation to be under 2x by the end of 2026 absent M&A [5][18] - The company views M&A as a key driver of shareholder value and plans to pursue small "tuck-in" deals, while not expecting a broad share repurchase program at this time [19] Future Outlook - Looking beyond 2026, the company expects the IRA impact to diminish, estimating a 50% reduction in impact for 2027 compared to 2026 [12] - An upcoming investor day is planned to outline long-term targets and growth opportunities across business lines [20]