BrightSpring Health Services, Inc.
For the period ended Jun 30, 2025. Filed Aug 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 1, 2025
BTSG$67.15+2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0000950170-25-062263
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0000950170-25-101119
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 175 previous paragraphs and 209 current paragraphs.
97 unchanged; 55 reworded; 44 added; 21 removed; 2 previous and 13 current paragraphs rearranged.
Tables are not compared: 11 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (44)
Current report
Completion of underwritten secondary offering of our common stock by affiliates of Kohlberg Kravis Roberts & Co. L.P. and certain members of management, which was completed in June 2025. As a result of this offering, we are no longer a “controlled company” within the meaning of the corporate governance standards of Nasdaq.
Current report
Revenue grew by $709.4 million, or 29.1%, to $3,147.7 million
Current report
Net income remained flat at $8.5 million
Current report
Basic and diluted earnings per share (EPS) remained flat at $0.05 and $0.04, respectively
Current report
Discontinued Operations
Current report
On January 17, 2025, the Company entered into a definitive agreement to sell its Community Living business to National Mentor Holdings, Inc. (the “Purchaser”), for $835.0 million in cash upon closing, subject to certain post-closing adjustments. We entered into the transaction in order to streamline our service offerings and further focus on the senior and specialty populations. The transaction is currently expected to close in late 2025, subject to receipt of customary regulatory approvals and satisfaction of other closing conditions.
Current report
The Company has determined the divestiture of the Community Living business represents a strategic shift that will have a major effect on its business and has concluded the criteria for classification as discontinued operations were met during the first fiscal quarter of 2025. Accordingly, the Community Living business is reported as discontinued operations in accordance with Accounting Standards Codification (“ASC”) 205-20, Discontinued Operations. The related assets and liabilities of the Community Living business are classified as assets and liabilities held for sale in the accompanying unaudited condensed consolidated balance sheet as of June 30, 2025, and the results of operations from the Community Living business are classified as discontinued operations in the unaudited condensed consolidated statements of operations. Applicable amounts in prior years have been recast to conform to this discontinued operations presentation. The Community Living business was historically presented as a part of the Provider Services reportable segment.
Current report
See Note 2 “Discontinued Operations” within the unaudited condensed consolidated financial statements and related notes, included elsewhere in this Form 10-Q.
Current report
Selling, general, and administrative expenses were $326.3 million for the three months ended June 30, 2025, as compared with $273.5 million for the three months ended June 30, 2024, an increase of $52.8 million or 19.3%. The increase primarily resulted from the following segment activity and factors:
Current report
an increase of $27.7 million, or 10.1% growth on consolidated second quarter of 2024 selling, general, and administrative expenses, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below;
Current report
an increase of $14.8 million, or 5.4%, increase in consolidated second quarter of 2024 selling, general, and administrative expenses, as a result of an increase in acquisition, integration and transaction-related expenses; and,
Current report
Income Tax Expense (Benefit)
Current report
Net Income
Current report
Adjusted EBITDA was $142.5 million for the three months ended June 30, 2025, as compared with $110.6 million for the three months ended June 30, 2024, an increase of $31.9 million or 28.8%. The increase primarily resulted from the following segment activity and factors:
Current report
n.m.: not meaningful
Current report
Revenues were $6,025.8 million for the six months ended June 30, 2025, as compared with $4,724.0 million for the six months ended June 30, 2024, an increase of $1,301.8 million or 27.6%. The increase resulted from growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below.
Current report
Cost of goods was $4,884.6 million for the six months ended June 30, 2025, as compared with $3,738.9 million for the six months ended June 30, 2024, an increase of $1,145.8 million or 30.6%. The increase resulted from an increase in Pharmacy Solutions cost of goods. See additional discussion in “—Segment Results of Operations” below.
Current report
Cost of services was $428.0 million for the six months ended June 30, 2025, as compared with $380.5 million for the six months ended June 30, 2024, an increase of $47.5 million or 12.5%. The increase resulted from an increase in Provider Services cost of services. See additional discussion in “—Segment Results of Operations” below.
Current report
Selling, general, and administrative expenses were $613.9 million for the six months ended June 30, 2025, as compared with $581.3 million for the six months ended June 30, 2024, an increase of $32.6 million or 5.6%. The increase primarily resulted from the following segment activity and factors:
Current report
an increase of $43.0 million, or 7.4% growth on consolidated 2024 selling, general, and administrative expenses, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below;
Current report
an increase of $15.8 million, or 2.7%, increase in consolidated second quarter of 2024 selling, general, and administrative expenses, as a result of an increase in acquisition, integration and transaction-related expenses;
Current report
an increase of $1.6 million, or 0.3%, growth on consolidated 2024 selling, general, and administrative expenses, as a result of an increase in other operational expenses year-over-year; offset by,
Current report
Interest Expense, net
Current report
Interest expense, net was $80.5 million for the six months ended June 30, 2025, as compared with $97.8 million for the six months ended June 30, 2024, a decrease of $17.2 million or 17.6%. The decrease primarily resulted from a decrease in both the variable-rate and applicable margin for the six months ended June 30, 2025 as compared to the prior periods and lower outstanding term debt as compared to the prior period, offset by a $10.3 million decrease in interest income received related to cash flow hedges of interest rate risk.
Current report
Income Tax Expense (Benefit)
Current report
Adjusted EBITDA (1)
Current report
Adjusted EBITDA was $273.6 million for the six months ended June 30, 2025, as compared with $212.9 million for the six months ended June 30, 2024, an increase of $60.7 million or 28.5%. The increase primarily resulted from the following segment activity and factors:
Current report
Selling, general, and administrative expenses were $136.0 million for the three months ended June 30, 2025, as compared with $115.5 million for the three months ended June 30, 2024, an increase of $20.6 million or 17.8%. The increase primarily resulted from the aforementioned revenue growth in the period with selling, general, and administrative expenses growing less than the volume growth rate and demonstrating economies of scale.
Current report
Revenues were $5,322.3 million for the six months ended June 30, 2025, as compared with $4,091.5 million for the six months ended June 30, 2024, an increase of $1,230.7 million or 30.1%. The increase primarily resulted from volume growth in prescriptions dispensed across and within the Pharmacy Solutions segment. Revenues attributable to Infusion and Specialty Pharmacy were $4,154.9 million for the six months ended June 30, 2025, as compared with $3,051.7 million for the six months ended June 30, 2024, an increase of $1,103.2 million or 36.2% attributable to an increase in prescriptions dispensed on certain specialty branded drugs. Revenues attributable to Home and Community Pharmacy were $1,167.4 million for the six months ended June 30, 2025, as compared with $1,039.8 million for the six months ended June 30, 2024, an increase of $127.6 million or 12.3% attributable to volume growth.
Current report
Cost of goods was $4,884.6 million for the six months ended June 30, 2025, as compared with $3,738.9 million for the six months ended June 30, 2024, an increase of $1,145.8 million or 30.6%. The increase primarily resulted from the aforementioned revenue growth in the period as well as an increase in cost per prescription dispensed as a result of mix shift.
Current report
Selling, general, and administrative expenses were $251.8 million for the six months ended June 30, 2025, as compared with $224.5 million for the six months ended June 30, 2024, an increase of $27.3 million or 12.2%. The increase primarily resulted from the aforementioned revenue growth in the period with selling, general, and administrative expenses growing less than the volume growth rate and demonstrating economies of scale.
Current report
Segment EBITDA was $240.4 million for the six months ended June 30, 2025, as compared with $182.7 million for the six months ended June 30, 2024, an increase of $57.7 million or 31.6%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period. See Note 15 “Segment Information” to our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q for further discussion.
Current report
Cost of services was $216.4 million for the three months ended June 30, 2025, as compared with $194.3 million for the three months ended June 30, 2024, an increase of $22.1 million or 11.4%. The increase primarily resulted from the aforementioned revenue growth.
Current report
Selling, general, and administrative expenses were $91.9 million for the three months ended June 30, 2025, as compared with $84.7 million for the three months ended June 30, 2024, an increase of $7.1 million or 8.4%. The increase primarily resulted from the aforementioned revenue growth in the period with selling, general, and administrative expenses growing less than the volume growth rate and demonstrating economies of scale.
Current report
Segment EBITDA was $56.5 million for the three months ended June 30, 2025, as compared with $50.7 million for the three months ended June 30, 2024, an increase of $5.8 million or 11.4%. The increase primarily resulted from the aforementioned revenue growth. See Note 15 “Segment Information" to our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q for further discussion.
Current report
Revenues were $703.5 million for the six months ended June 30, 2025, as compared with $632.5 million for the six months ended June 30, 2024, an increase of $71.1 million or 11.2%. The increase primarily resulted from volume growth as well as rate increases received during the period. Revenues attributable to Home Health Care were $362.9 million for the six months ended June 30, 2025, as compared with $305.2 million for the six months ended June 30, 2024, an increase of $57.7 million or 18.9%. Revenues attributable to Rehab Care were $143.0 million for the six months ended June 30, 2025, as compared with $136.7 million for the six months ended June 30, 2024, an increase of $6.3 million or 4.6%. Revenues attributable to Personal Care were $197.6 million for the six months ended June 30, 2025, as compared with $190.6 million for the six months ended June 30, 2024, an increase of $7.0 million or 3.7%.
Current report
Cost of services was $428.0 million for the six months ended June 30, 2025, as compared with $380.5 million for the six months ended June 30, 2024, an increase of $47.5 million or 12.5%. The increase primarily resulted from the aforementioned revenue growth.
Current report
Gross profit was $275.6 million for the six months ended June 30, 2025, as compared with $252.0 million for the six months ended June 30, 2024, an increase of $23.6 million or 9.4%. The increase primarily resulted from the aforementioned revenue growth and costs of services improvements in the period.
Current report
Selling, general, and administrative expenses were $182.0 million for the six months ended June 30, 2025, as compared with $166.3 million for the six months ended June 30, 2024, an increase of $15.7 million or 9.4%. The increase primarily resulted from the aforementioned revenue growth in the period with selling, general, and administrative expenses growing less than the volume growth rate and demonstrating economies of scale.
Current report
Segment EBITDA was $107.5 million for the six months ended June 30, 2025, as compared with $97.4 million for the six months ended June 30, 2024, an increase of $10.1 million or 10.4%. The increase primarily resulted from the aforementioned revenue growth. See Note 15 “Segment Information" to our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q for further discussion.
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Removed paragraphs (21)
Previous report
Completed one acquisition within our Provider Services segment
Previous report
Revenue grew by $592.4 million, or 25.9%, to $2,878.1 million
Previous report
Net loss decreased by $65.2 million from $56.0 million to net income of $9.2 million
Previous report
Loss per share decreased by $0.36 from $(0.31) to $0.05
Previous report
Initial Public Offering
Previous report
On January 30, 2024, we completed our initial public offering (“IPO”) of 53,333,334 shares of common stock at a price of $13.00 per share and a concurrent offering of 8,000,000 6.75% tangible equity units (“TEUs”) with a stated amount of $50.00 per unit (collectively, the “IPO Offerings”). The net proceeds from the IPO Offerings amounted to $656.5 million and $389.0 million for the common stock and TEUs, respectively, after deducting underwriting discounts, commissions, and offering-related expenses. The shares of common stock and TEUs began trading on the Nasdaq Global Select Market on January 26, 2024 under the ticker symbols “BTSG” and “BTSGU,” respectively.
Previous report
We used the proceeds received from the IPO Offerings (i) to repay all indebtedness outstanding under the Second Lien Facility, (ii) to repay all indebtedness outstanding under the Revolving Credit Facility, (iii) to repay $343.3 million outstanding aggregate amount under the First Lien Facility, and (iv) to pay certain expenses in the offering. We have used and intend to use the remaining proceeds for general corporate purposes. Additionally, we paid $22.7 million of termination fees in connection with the termination of our monitoring agreement with our controlling stockholders, Kohlberg Kravis Roberts & Co. L.P. (“KKR”) and Walgreens Boots Alliance, Inc. (together with KKR, the “Managers”) (the “Monitoring Agreement”). The Company paid these fees during the fourth fiscal quarter of 2024.
Previous report
Cost of Goods
Previous report
Cost of Services
Previous report
Selling, general, and administrative expenses were $287.6 million for the three months ended March 31, 2025, as compared with $307.8 million for the three months ended March 31, 2024, a decrease of $20.2 million or 6.6%. The decrease primarily resulted from the following segment activity and factors:
Previous report
Income Tax Benefit
Previous report
Adjusted EBITDA was $131.1 million for the three months ended March 31, 2025, as compared with $102.2 million for the three months ended March 31, 2024, an increase of $28.8 million or 28.2%. The increase primarily resulted from the following segment activity and factors:
Previous report
Cost of Goods
Previous report
Selling, general, and administrative expenses were $115.7 million for the three months ended March 31, 2025, as compared with $109.0 million for the three months ended March 31, 2024, an increase of $6.7 million or 6.2%. The increase primarily resulted from the aforementioned revenue growth in the period with selling, general, and administrative expenses growing less than the volume growth rate and demonstrating economies of scale.
Previous report
Segment EBITDA
Previous report
Cost of Services
Previous report
Cost of services was $211.5 million for the three months ended March 31, 2025, as compared with $186.2 million for the three months ended March 31, 2024, an increase of $25.4 million or 13.6%. The increase primarily resulted from the aforementioned revenue growth and included operational improvements resulting in lower costs of services increases compared to revenue growth.
Previous report
Selling, general, and administrative expenses were $90.1 million for the three months ended March 31, 2025, as compared with $81.5 million for the three months ended March 31, 2024, an increase of $8.6 million or 10.5%. The increase primarily resulted from the aforementioned revenue growth in the period with selling, general, and administrative expenses growing less than the volume growth rate and demonstrating economies of scale.
Previous report
Segment EBITDA
Previous report
Segment EBITDA was $51.1 million for the three months ended March 31, 2025, as compared with $46.8 million for the three months ended March 31, 2024, an increase of $4.3 million or 9.3%. The increase primarily resulted from the aforementioned revenue growth and operational improvements impacting cost of services. See Note 15 “Segment Information" to our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q for further discussion.
Previous report
a $80.9 million increase in cash outflows due to a decrease in strategic inventory purchases;
Reworded paragraphs (55)
Previous wording
We are a leading home and community-based healthcare services platform, focused on delivering complementary pharmacy and provider services to complex patients. We have a differentiated approach to care delivery, with an integrated and scaled model that addresses critical services that the highest-need and highest-cost patients require. With a focus on Senior and Specialty patients, which includes Behavioral populations, our platform provides pharmacy and provider services (both clinical and supportive care in nature) in lower-cost home and community settings largely to Medicare, Medicaid, and commercially-insured populations. We are an essential part of our nation’s health delivery network as a front-line provider of high-quality and cost-effective care to a large and growing number of people, who increasingly require a combination of specialized solutions to enable holistic health care management. Our presence spans all 50 states, we serve over 450,000 patients daily through our approximately 11,000 clinical providers and pharmacists, and our services make a profound impact in the lives and communities of the people we serve.
Current wording
We are a leading home and community-based healthcare services platform, focused on delivering complementary pharmacy and provider services to complex patients. We have a differentiated approach to care delivery, with an integrated and scaled model that addresses critical services that the highest-need and highest-cost patients require. With a focus on Senior and Specialty patients, which includes Behavioral populations, our platform provides pharmacy and provider services (both clinical and supportive care in nature) in lower-cost home and community settings largely to Medicare, Medicaid, and commercially-insured populations. We are an essential part of our nation’s health delivery network as a front-line provider of high-quality and cost-effective care to a large and growing number of people, who increasingly require a combination of specialized solutions to enable holistic health care management. Our presence spans all 50 states, we serve over 460,000 patients daily through our approximately 10,000 clinical providers and pharmacists, and our services make a profound impact in the lives and communities of the people we serve.
Previous wording
On January 17, 2025, the Company entered into a purchase agreement with National Mentor Holding, Inc. to divest our community living services, home and community based waiver programs, and intermediate care facilities (the “Community Living business”), for $835 million, subject to typical adjustments for working capital and other customary items. We expect the divestiture to close in 2025, subject to customary closing conditions. This transaction provides for continuity of important intellectual and developmental disability services while BrightSpring focuses on a concentrated group of customers, patients and stakeholders in the future. We believe the Company’s streamlined service offerings will result in increased strategic focus, operational efficiencies, a refined payer mix, and greater clinical integration and business synergy across the Provider Services segment. The divestiture will also augment our expected Revenue and Adjusted EBITDA growth rates and maximize exposure to target growth markets that require BrightSpring’s needed and valuable solutions, such as home health, rehab, primary care, and hospice.
Current wording
On January 17, 2025, the Company entered into a purchase agreement with National Mentor Holding, Inc. to divest our community living services, home and community based waiver programs, and intermediate care facilities (the “Community Living business”), for $835 million, subject to typical adjustments for working capital and other customary items. We expect the divestiture to close in late 2025, subject to customary closing conditions. This transaction provides for continuity of important intellectual and developmental disability services while BrightSpring focuses on a concentrated group of customers, patients and stakeholders in the future. We believe the Company’s streamlined service offerings will result in increased strategic focus, operational efficiencies, a refined payer mix, and greater clinical integration and business synergy across the Provider Services segment. The divestiture will also augment our expected Revenue and Adjusted EBITDA growth rates and maximize exposure to target growth markets that require BrightSpring’s needed and valuable solutions, such as home health, rehab, primary care, and hospice.
Previous wording
The Company has determined the divestiture of the Community Living business represents a strategic shift that will have a major effect on its business and therefore met the criteria for classification as discontinued operations in the first fiscal quarter of 2025. As a result, the financial results of the Community Living business, which were previously reported as part of our Provider Services segment, have been classified as discontinued operations in the unaudited condensed consolidated statements of operations, and its assets and liabilities have been classified as held for sale for all periods presented. Unless otherwise noted, amounts and disclosures throughout this Management’s Discussion and Analysis relate to our continuing operations. Refer to Item 1. Note 2 for additional information regarding discontinued operations.
Current wording
The Company has determined the divestiture of the Community Living business represents a strategic shift that will have a major effect on its business and therefore met the criteria for classification as discontinued operations in the first fiscal quarter of 2025. As a result, in accordance with ASC 205-20, the financial results of the Community Living business, which were previously reported as part of our Provider Services segment, have been classified as discontinued operations in the unaudited condensed consolidated statements of operations, and the Community Living business's assets and liabilities have been classified as held for sale for all periods presented. Unless otherwise noted, amounts and disclosures throughout this Management’s Discussion and Analysis relate to our continuing operations. Refer to “PART I - Item 1. Note 2” of our Form 10-K for additional information regarding discontinued operations.
Previous wording
First Quarter of 2025 Key Highlights
Current wording
Second Quarter of 2025 Key Highlights:
Previous wording
Announcement of definitive agreement to divest the Community Living business
Current wording
Announcement of definitive agreement to purchase home health and hospice care centers of Amedisys, Inc., and certain group care centers of UnitedHealth Group.
Previous wording
Financial Performance Highlights: First Quarter of 2025 Compared to First Quarter of 2024
Current wording
Financial Performance Highlights: Second Quarter of 2025 Compared to Second Quarter of 2024
Previous wording
Pharmacy Solutions segment revenue grew by $555.1 million, or 28.1%, to $2,532.2 million
Current wording
Pharmacy Solutions segment revenue grew by $675.6 million, or 32.0%, to $2,790.1 million
Previous wording
Provider Services segment revenue grew by $37.2 million, or 12.1%, to $345.9 million
Current wording
Provider Services segment revenue grew by $33.8 million, or 10.5%, to $357.6 million
Previous wording
Adjusted EBITDA(1) increased by $28.8 million, or 28.2%, to $131.1 million
Current wording
Adjusted EBITDA(1) increased by $31.9 million, or 28.8%, to $142.5 million
Previous wording
Pharmacy Solutions segment EBITDA increased by $27.6 million, or 31.2%, to $115.7 million
Current wording
Pharmacy Solutions segment EBITDA increased by $30.2 million, or 32.0%, to $124.7 million
Previous wording
Provider Services segment EBITDA grew by $4.3 million, or 9.3%, to $51.1 million
Current wording
Provider Services segment EBITDA grew by $5.8 million, or 11.4%, to $56.5 million
Previous wording
Adjusted EPS(1) increased by $0.10 from $0.09 to $0.19
Current wording
Adjusted EPS(1) increased by $0.16 from $0.06 to $0.22
Previous wording
We are characterized by payor diversification across our platform. Our payors are principally federal, state, and local governmental agencies, commercial insurance, private, and other payors. Additionally, our Medicaid payors can be further broken down across each individual state with our top 10 Medicaid states representing 6% of total Company revenue for the three months ended March 31, 2025, compared to 7% for the three months ended March 31, 2024.
Current wording
We are characterized by payor diversification across our platform. Our payors are principally federal, state, and local governmental agencies, commercial insurance, private, and other payors. Additionally, our Medicaid payors can be further broken down across each individual state with our top 10 Medicaid states representing 6% of total Company revenue for the three and six months ended June 30, 2025, compared to 7% for the three and six months ended June 30, 2024.
Previous wording
We provide our services across all 50 states, Puerto Rico and Canada, with our top 10 states of operations comprising 53% of total Company revenues for the three months ended March 31, 2025 compared to 54% for the three months ended March 31, 2024. The federal, state, and local programs under which we operate are subject to legislative and budgetary changes that can influence reimbursement rates.
Current wording
We provide our services across all 50 states, Puerto Rico and Canada, with our top 10 states of operations comprising 53% of total Company revenues for the three and six months ended June 30, 2025, compared to 52% and 53% for the three and six months ended June 30, 2024, respectively. The federal, state, and local programs under which we operate are subject to legislative and budgetary changes that can influence reimbursement rates.
Previous wording
See Note 3 of the unaudited condensed consolidated financial statements and related notes in this Form 10-Q for more information regarding revenue by payor type for each reportable segment for the three months ended March 31, 2025 and 2024.
Current wording
See Note 3 of the unaudited condensed consolidated financial statements and related notes in this Form 10-Q for more information regarding revenue by payor type for each reportable segment for the three and six months ended June 30, 2025 and 2024.
Previous wording
We focus on providing health-dependent medications in a timely and well-supported manner to our patients receiving pharmacy solutions in their home and community-based settings. Our pharmacy services are primarily delivered directly to patients in their place of residence, home, or stay, and sometimes in a clinic setting. According to industry reports, pharmacy solutions delivered to and tailored for the home environment, such as home infusion services, oncology services, and daily medication management services in the home, will continue to grow faster than the overall and general pharmacy market. We have continued to expand our pharmacy capabilities to serve this need. Overall, our pharmacy has grown patient census and prescriptions by approximately 11% and 10%, respectively, in the first fiscal quarter of 2025 compared to the first fiscal quarter of 2024. We are a leading independent pharmacy provider in our respective pharmacy patient markets, and we expect to continue to increase our share, including home infusion patients, specialty oncology patients, behavioral patients, in-home Seniors, and hospice patients.
Current wording
We focus on providing health-dependent medications in a timely and well-supported manner to our patients receiving pharmacy solutions in their home and community-based settings. Our pharmacy services are primarily delivered directly to patients in their place of residence, home, or stay, and sometimes in a clinic setting. According to industry reports, pharmacy solutions delivered to and tailored for the home environment, such as home infusion services, oncology services, and daily medication management services in the home, will continue to grow faster than the overall and general pharmacy market. We have continued to expand our pharmacy capabilities to serve this need. Overall, our pharmacy has grown patient census and prescriptions by approximately 6% and 7%, respectively, in the second fiscal quarter of 2025 compared to the second fiscal quarter of 2024. We are a leading independent pharmacy provider in our respective pharmacy patient markets, and we expect to continue to increase our share, including home infusion patients, specialty oncology patients, behavioral patients, in-home Seniors, and hospice patients.
Previous wording
We provide multiple pharmacy and provider services to approximately [20,000] patients today, and we believe that there are substantially more opportunities to deliver more integrated care, given the hundreds of thousands of patients we serve and a similar number of patients discharging from customers annually. Value-add, beneficial, and multiple integrated care opportunities exist for our customer base and all Senior and Specialty patient populations not only across pharmacy and provider services, but also within each segment. Within pharmacy services, CCRx is aimed at providing medication risk and therapy management continuously and longitudinally post discharge from hospitals and skilled nursing customers. Within the provider services, patients often transition from home health to hospice services and can receive therapy and supportive care services concurrent with each other and with home health and hospice.
Current wording
We provide multiple pharmacy and provider services to approximately 9,000 patients today, and we believe that there are substantially more opportunities to deliver more integrated care, given the hundreds of thousands of patients we serve and a similar number of patients discharging from customers annually. Value-add, beneficial, and multiple integrated care opportunities exist for our customer base and all Senior and Specialty patient populations not only across pharmacy and provider services, but also within each segment. Within pharmacy services, CCRx is aimed at providing medication risk and therapy management continuously and longitudinally post discharge from hospitals and skilled nursing customers. Within provider services, patients often transition from home health to hospice services and can receive therapy and supportive care services concurrent with each other and with home health and hospice.
Previous wording
In November 2023, the Company agreed to settle the Silver matter without admitting liability, as discussed under Part I, Item 3. “Legal Proceedings” in our Annual Report on Form 10-K for the year ended December 31, 2024. On May 29, 2024, the parties entered into a final settlement agreement, which was approved by both the United States Department of Justice and the District Court. The total financial impact of the settlement was $120.0 million; $115.0 million of which was recorded during the year ended December 31, 2023 as an estimate, and an incremental $5.0 million was recorded in the year ended December 31, 2024 once the settlement agreement was finalized. We paid $110.0 million of the settlement in 2024, and the remainder was paid in April 2025. The District Court entered an order dismissing the Silver action in its entirety, with prejudice, on July 3, 2024. See Note 13 “Commitments and Contingencies” within the unaudited condensed consolidated financial statements and related notes, included elsewhere in this Form 10-Q.
Current wording
In November 2023, the Company agreed to settle the Silver matter without admitting liability, as discussed under Part I, Item 3. “Legal Proceedings” in our Annual Report on Form 10-K for the year ended December 31, 2024. On May 29, 2024, the parties entered into a final settlement agreement, which was approved by both the United States Department of Justice and the District Court. The total financial impact of the settlement was $120.0 million; all of which has been paid as of April 2025. We paid $110.0 million of the settlement in 2024, and the remainder in April 2025. The District Court entered an order dismissing the Silver action in its entirety, with prejudice, on July 3, 2024. See Note 13 “Commitments and Contingencies” within the unaudited condensed consolidated financial statements and related notes, included elsewhere in this Form 10-Q.
Previous wording
Income Tax Benefit. Our provision for income taxes is based on permanent book/tax differences and statutory tax rates in the various jurisdictions in which we operate. Significant estimates and judgments are required in determining the provision for income taxes.
Current wording
Income Tax Expense (Benefit). Our provision for income taxes is based on permanent book/tax differences and statutory tax rates in the various jurisdictions in which we operate. Significant estimates and judgments are required in determining the provision for income taxes.
Previous wording
Revenues were $2,878.1 million for the three months ended March 31, 2025, as compared with $2,285.8 million for the three months ended March 31, 2024, an increase of $592.4 million or 25.9%. The increase resulted from growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below.
Current wording
Revenues were $3,147.7 million for the three months ended June 30, 2025, as compared with $2,438.3 million for the three months ended June 30, 2024, an increase of $709.4 million or 29.1%. The increase resulted from growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below.
Previous wording
Cost of goods was $2,328.2 million for the three months ended March 31, 2025, as compared with $1,807.1 million for the three months ended March 31, 2024, an increase of $521.1 million or 28.8%. The increase resulted from an increase in Pharmacy Solutions cost of goods. See additional discussion in “—Segment Results of Operations” below.
Current wording
Cost of goods was $2,556.4 million for the three months ended June 30, 2025, as compared with $1,931.8 million for the three months ended June 30, 2024, an increase of $624.6 million or 32.3%. The increase resulted from an increase in Pharmacy Solutions cost of goods. See additional discussion in “—Segment Results of Operations” below.
Previous wording
Cost of services was $211.5 million for the three months ended March 31, 2025, as compared with $186.2 million for the three months ended March 31, 2024, an increase of $25.4 million or 13.6%. The increase resulted from an increase in Provider Services cost of services. See additional discussion in “—Segment Results of Operations” below.
Current wording
Cost of services was $216.4 million for the three months ended June 30, 2025, as compared with $194.3 million for the three months ended June 30, 2024, an increase of $22.1 million or 11.4%. The increase resulted from an increase in Provider Services cost of services. See additional discussion in “—Segment Results of Operations” below.
Previous wording
a decrease of $1.7 million, or 0.6%, decline on consolidated first quarter of 2024 selling, general, and administrative expenses, as a result of an increase in other operational expenses year-over-year.
Current wording
an increase of $4.3 million, or 1.6%, increase in consolidated second quarter of 2024 selling, general, and administrative expenses, as a result of an increase in other operational expenses year-over-year.
Previous wording
Interest expense, net was $41.8 million for the three months ended March 31, 2025, as compared with $54.5 million for the three months ended March 31, 2024, a decrease of $12.7 million or 23.3%. The decrease primarily resulted from lower outstanding term debt as compared to the prior period offset by a $5.1 million decrease in interest income related to cash flow hedges of interest rate risk.
Current wording
Interest expense, net was $38.8 million for the three months ended June 30, 2025, as compared with $43.3 million for the three months ended June 30, 2024, a decrease of $4.5 million or 10.4%. The decrease primarily resulted from a decrease in both the variable-rate and applicable margin for the three months ended June 30, 2025 as compared to the prior period, offset by a $5.1 million decrease in interest income received related to cash flow hedges of interest rate risk.
Previous wording
Income tax benefit was $0.2 million for the three months ended March 31, 2025, as compared with $26.5 million for the three months ended March 31, 2024, a decrease of $26.3 million. The decrease in the income tax benefit is primarily driven by the increase in pre-tax book income for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, and a decrease in the effective tax rate for the three months ended March 31, 2025 of (2.7)% compared to 32.1% for the three months ended March 31, 2024. The decrease in the effective tax rate is primarily as a result of $2.4 million in tax benefits resulting from the recognition of excess tax benefits from stock-based compensation and partially offset by limitations on the deductibility of certain executive compensation as a percentage of estimated pre-tax book income for the three months ended March 31, 2024.
Current wording
Income tax expense was $1.2 million for the three months ended June 30, 2025, as compared with an income tax benefit of $13.1 million for the three months ended June 30, 2024, an increase in the expense of $14.4 million. The increase in the income tax expense is primarily driven by the increase in pre-tax book income for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, and a decrease in the effective tax rate for the three months ended June 30, 2025 of 12.7% compared to 283.3% for the three months ended June 30, 2024. The decrease in the effective tax rate is primarily as a result of $1.4 million in tax benefits resulting from the recognition of excess tax benefits from stock-based compensation and partially offset by limitations on the deductibility of certain executive compensation as a percentage of estimated pre-tax book income for the three months ended June 30, 2025. In addition, the discrete tax benefit related to the Silver matter increased the effective tax rate on pre-tax book loss for the three months ended June 30, 2024.
Previous wording
an increase of $31.9 million, or 31.2% growth on consolidated first quarter of 2024 Adjusted EBITDA, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below; offset by
Current wording
an increase of $36.0 million, or 32.5% growth on consolidated second quarter of 2024 Adjusted EBITDA, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below; offset by
Previous wording
a decrease of $3.1 million, or 3.0% decline on consolidated first quarter of 2024 Adjusted EBITDA, as a result of increases in certain public company costs incurred, investments in information technology, and positions to support growth within the business.
Current wording
a decrease of $4.1 million, or 3.7% decline on consolidated second quarter of 2024 Adjusted EBITDA, as a result of increases in certain public company costs incurred, investments in information technology, and positions to support growth within the business.
Previous wording
a decrease of $22.7 million, or 7.4%, decline on consolidated first quarter of 2024 selling, general, and administrative expenses, as a result of the termination fees incurred at the time of the IPO Offerings in connection with the termination of our Monitoring Agreement for which there is no comparable expense in 2025;
Current wording
a decrease of $22.7 million, or 3.9%, decline on consolidated 2024 selling, general, and administrative expenses, as a result of the termination fees incurred at the time of the IPO Offerings in connection with the termination of our Monitoring Agreement for which there is no comparable expense in 2025; and
Previous wording
a decrease of $11.1 million, or 3.6%, decline on consolidated first quarter of 2024 selling, general, and administrative expenses, due to non-cash share-based compensation related to the new equity awards granted to management and certain full-time employees in conjunction with the IPO; and
Current wording
a decrease of $5.1 million, or 0.9%, decline on consolidated 2024 selling, general, and administrative expenses, due to non-cash share-based compensation related to the equity awards granted to management and certain full-time employees.
Previous wording
During the three months ended March 31, 2024, we used proceeds from the IPO Offerings to repay the Second Lien on January 30, 2024 and as a result incurred a loss on extinguishment of debt of $12.7 million related to the write-off of unamortized debt issuance costs. There was no loss on extinguishment of debt recognized for the three months ended March 31, 2025.
Current wording
During the six months ended June 30, 2024, we used proceeds from the IPO Offerings to repay the Second Lien on January 30, 2024 and as a result incurred a loss on extinguishment of debt of $12.7 million related to the write-off of unamortized debt issuance costs. There was no loss on extinguishment of debt recognized for the six months ended June 30, 2025.
Previous wording
Net income was $9.2 million for the three months ended March 31, 2025, as compared with a net loss of $56.0 million for the three months ended March 31, 2024, an increase of $65.2 million. The increase in net income is primarily attributable to the increase in gross profit and the aforementioned decrease in interest expense, net, selling, general, and administrative expenses and loss on extinguishment of debt.
Current wording
Net income was $17.8 million for the six months ended June 30, 2025, as compared with a net loss of $47.5 million for the six months ended June 30, 2024, an increase of $65.3 million. The increase in net income is primarily attributable to the increase in gross profit and the aforementioned decrease in interest expense, net, and loss on extinguishment of debt, partially offset by an increase in selling, general, and administrative expenses and income tax expense.
Previous wording
an increase of $15.3 million, or 5.0% growth on consolidated first quarter of 2024 selling, general, and administrative expenses, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below; offset by,
Current wording
an increase of $67.9 million, or 31.9% growth on consolidated 2024 Adjusted EBITDA, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below; offset by
Previous wording
Revenues were $2,532.2 million for the three months ended March 31, 2025, as compared with $1,977.0 million for the three months ended March 31, 2024, an increase of $555.1 million or 28.1%. The increase primarily resulted from volume growth in prescriptions dispensed across and within the Pharmacy Solutions segment. Revenues attributable to Infusion and Specialty Pharmacy were $1,951.5 million for the three months ended March 31, 2025, as compared with $1,465.6 million for the three months ended March 31, 2024, an increase of $485.9 million or 33.2% attributable to an increase in prescriptions dispensed on certain specialty branded drugs. Revenues attributable to Home and Community Pharmacy were $580.7 million for the three months ended March 31, 2025, as compared with $511.4 million for the three months ended March 31, 2024, an increase of $69.3 million or 13.6% attributable to volume growth.
Current wording
Revenues were $2,790.1 million for the three months ended June 30, 2025, as compared with $2,114.5 million for the three months ended June 30, 2024, an increase of $675.6 million or 32.0%. The increase primarily resulted from volume growth in prescriptions dispensed across and within the Pharmacy Solutions segment. Revenues attributable to Infusion and Specialty Pharmacy were $2,203.4 million for the three months ended June 30, 2025, as compared with $1,586.1 million for the three months ended June 30, 2024, an increase of $617.3 million or 38.9% attributable to an increase in prescriptions dispensed on certain specialty branded drugs. Revenues attributable to Home and Community Pharmacy were $586.7 million for the three months ended June 30, 2025, as compared with $528.4 million for the three months ended June 30, 2024, an increase of $58.3 million or 11.0% attributable to volume growth.
Previous wording
Cost of goods was $2,328.2 million for the three months ended March 31, 2025, as compared with $1,807.1 million for the three months ended March 31, 2024, an increase of $521.1 million or 28.8%. The increase primarily resulted from the aforementioned revenue growth in the period as well as an increase in cost per prescription dispensed as a result of mix shift.
Current wording
Cost of goods was $2,556.4 million for the three months ended June 30, 2025, as compared with $1,931.8 million for the three months ended June 30, 2024, an increase of $624.6 million or 32.3%. The increase primarily resulted from the aforementioned revenue growth in the period as well as an increase in cost per prescription dispensed as a result of mix shift.
Previous wording
Gross profit was $204.0 million for the three months ended March 31, 2025, as compared with $169.9 million for the three months ended March 31, 2024, an increase of $34.0 million or 20.0%. The increase primarily resulted from the aforementioned revenue growth in the period, primarily the result of outsized volume growth as well as mix in certain specialty branded drugs, which have lower margins.
Current wording
Gross profit was $233.7 million for the three months ended June 30, 2025, as compared with $182.7 million for the three months ended June 30, 2024, an increase of $51.0 million or 27.9%. The increase primarily resulted from the aforementioned revenue growth in the period, primarily the result of outsized volume growth as well as mix in certain specialty branded drugs, which have lower margins.
Previous wording
Gross profit margin for the three months ended March 31, 2025 was 8.1% compared to 8.6% for the three months ended March 31, 2024. The decrease in gross profit margin is due to mix shift in the Pharmacy Solutions segment with greater relative volume growth in Infusion and Specialty Pharmacy, along with product-level mix shifts, rate changes, and an increase in the fulfillment cost per script in Home and Community Pharmacy.
Current wording
Gross profit margin for the three months ended June 30, 2025 was 8.4% compared to 8.6% for the three months ended June 30, 2024. The decrease in gross profit margin is due to mix shift in the Pharmacy Solutions segment with greater relative volume growth in Infusion and Specialty Pharmacy, along with product-level mix shifts, rate changes, and an increase in the fulfillment cost per script in Home and Community Pharmacy.
Previous wording
Segment EBITDA was $115.7 million for the three months ended March 31, 2025, as compared with $88.2 million for the three months ended March 31, 2024, an increase of $27.6 million or 31.2%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period. See Note 15 “Segment Information” to our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q for further discussion.
Current wording
Segment EBITDA was $124.7 million for the three months ended June 30, 2025, as compared with $94.5 million for the three months ended June 30, 2024, an increase of $30.2 million or 32.0%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period. See Note 15 “Segment Information” to our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q for further discussion.
Previous wording
Revenues were $345.9 million for the three months ended March 31, 2025, as compared with $308.8 million for the three months ended March 31, 2024, an increase of $37.2 million or 12.1%. The increase primarily resulted from volume growth as well as rate increases received during the period. Revenues attributable to Home Health Care were $178.4 million for the three months ended March 31, 2025, as compared with $147.6 million for the three months ended March 31, 2024, an increase of $30.8 million or 20.9%.
Current wording
Revenues were $357.6 million for the three months ended June 30, 2025, as compared with $323.8 million for the three months ended June 30, 2024, an increase of $33.8 million or 10.5%. The increase primarily resulted from volume growth as well as rate increases received during the period. Revenues attributable to Home Health Care were $184.5 million for the three months ended June 30, 2025, as compared with $157.6 million for the three months ended June 30, 2024, an increase of $26.9 million or 17.1%. Revenues attributable to Rehab Care were $73.2 million for the three months ended June 30, 2025, as compared with $70.0 million for the three months ended June 30, 2024, an increase of $3.2 million or 4.6%. Revenues attributable to Personal Care were $99.9 million for the three months ended June 30, 2025, as compared with $96.2 million for the three months ended June 30, 2024, an increase of $3.7 million or 3.8%.
Previous wording
Gross profit was $134.4 million for the three months ended March 31, 2025, as compared with $122.6 million for the three months ended March 31, 2024, an increase of $11.9 million or 9.7%. The increase primarily resulted from the aforementioned revenue growth and costs of services improvements in the period.
Current wording
Gross profit was $141.2 million for the three months ended June 30, 2025, as compared with $129.4 million for the three months ended June 30, 2024, an increase of $11.7 million or 9.0%. The increase primarily resulted from the aforementioned revenue growth and costs of services improvements in the period.
Previous wording
The following are key financial metrics and, when used in conjunction with U.S. GAAP measures, we believe they provide useful information for evaluating our core business performance, enable comparison of financial results across periods, and allow for greater transparency with respect to key metrics used by management for financial and operational decision-making. We define EBITDA as net income (loss) before income tax benefit, interest expense, net, and depreciation and amortization. Adjusted EBITDA and Adjusted EPS exclude certain other items that are either non-recurring, infrequent, non-cash, unusual, or items deemed by management to not be indicative of the performance of our core operations, including non-cash, share-based compensation; acquisition, integration, and transaction-related costs; restructuring and divestiture-related and other costs; legal costs associated with certain historical matters for PharMerica and settlement costs; significant projects; and management fees. In determining which adjustments are made to arrive at Adjusted EBITDA and Adjusted EPS, management considers both (1) certain non-recurring, infrequent, non-cash, or unusual items, which can vary significantly from year to year, as well as (2) certain other items that may be recurring, frequent, or settled in cash but which management does not believe are indicative of our core operating performance. The financial measure calculated under U.S. GAAP which is most directly comparable to Adjusted EBITDA is net income (loss). The financial measure calculated under U.S. GAAP which is most directly comparable to Adjusted EPS is diluted EPS.
Current wording
The following are key financial metrics and, when used in conjunction with U.S. GAAP measures, we believe they provide useful information for evaluating our core business performance, enable comparison of financial results across periods, and allow for greater transparency with respect to key metrics used by management for financial and operational decision-making. We define EBITDA as net income (loss) before income tax expense (benefit), interest expense, net, and depreciation and amortization. Adjusted EBITDA and Adjusted EPS exclude certain other items that are either non-recurring, infrequent, non-cash, unusual, or items deemed by management to not be indicative of the performance of our core operations, including non-cash, share-based compensation; acquisition, integration, and transaction-related costs; restructuring and divestiture-related and other costs; legal costs associated with certain historical matters for PharMerica and settlement costs; significant projects; and management fees. In determining which adjustments are made to arrive at Adjusted EBITDA and Adjusted EPS, management considers both (1) certain non-recurring, infrequent, non-cash, or unusual items, which can vary significantly from year to year, as well as (2) certain other items that may be recurring, frequent, or settled in cash but which management does not believe are indicative of our core operating performance. The financial measure calculated under U.S. GAAP which is most directly comparable to Adjusted EBITDA is net income (loss). The financial measure calculated under U.S. GAAP which is most directly comparable to Adjusted EPS is diluted EPS.
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Rearranged current paragraphs (13)
Current report — wording carried from elsewhere
an increase of $6.0 million, or 2.2%, growth on consolidated second quarter of 2024 selling, general, and administrative expenses, due to non-cash share-based compensation related to the equity awards granted to management and certain full-time employees;
Current report — wording carried from elsewhere
Net income was $8.5 million for the three months ended June 30, 2025, as compared with $8.5 million for the three months ended June 30, 2024, an increase of $0.1 million or 0.6%. The increase in net income is primarily attributable to the increase in gross profit and the aforementioned decrease in interest expense, net, offset by an increase in selling, general, and administrative expenses and income tax expense.
Current report — wording carried from elsewhere
The following table sets forth, for the periods indicated, our consolidated results of operations.
Current report — wording carried from elsewhere
The following discussion of our results of operations should be read in conjunction with the foregoing table summarizing our consolidated results of operations.
Current report — wording carried from elsewhere
Income tax expense was $1.0 million for the six months ended June 30, 2025, as compared with an income tax benefit of $39.6 million for the six months ended June 30, 2024, an increase in the expense of $40.6 million. The increase in the income tax expense is primarily driven by the increase in pre-tax book income for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, and a decrease in the effective tax rate for the six months ended June 30, 2025 of 5.3% compared to 45.5% for the six months ended June 30, 2024. The decrease in the effective tax rate is primarily as a result of $3.7 million in tax benefits resulting from the recognition of excess tax benefits from stock-based compensation and partially offset by limitations on the deductibility of certain executive compensation as a percentage of estimated pre-tax book income for the six months ended June 30, 2025. In addition, the discrete tax benefit related to the Silver matter increased the effective tax rate on pre-tax book loss for the six months ended June 30, 2024.
Current report — wording carried from elsewhere
a decrease of $7.2 million, or 3.4% decline on consolidated 2024 Adjusted EBITDA, as a result of increases in certain public company costs incurred, investments in information technology, and positions to support growth within the business.
Current report — wording carried from elsewhere
The following table sets forth, for the periods indicated, our segment results of operations for Pharmacy Solutions.
Current report — wording carried from elsewhere
The following discussion of our Pharmacy Solutions segment results of operations should be read in conjunction with the foregoing table summarizing our segment results of operations.
Current report — wording carried from elsewhere
The increase in revenue per prescription dispensed is due to mix changes year-over-year and a greater relative increase in volume growth in certain specialty brand drugs, which carry a higher revenue per prescription dispensed.
Current report — wording carried from elsewhere
Gross profit was $437.7 million for the six months ended June 30, 2025, as compared with $352.7 million for the six months ended June 30, 2024, an increase of $85.0 million or 24.1%. The increase primarily resulted from the aforementioned revenue growth in the period, primarily the result of outsized volume growth as well as mix in certain specialty branded drugs, which have lower margins.
Current report — wording carried from elsewhere
Gross profit margin for the six months ended June 30, 2025 was 8.2% compared to 8.6% for the six months ended June 30, 2024. The decrease in gross profit margin is due to mix shift in the Pharmacy Solutions segment with greater relative volume growth in Infusion and Specialty Pharmacy, along with product-level mix shifts, rate changes, and an increase in the fulfillment cost per script in Home and Community Pharmacy.
Current report — wording carried from elsewhere
The following discussion of our Provider Services segment results of operations should be read in conjunction with the foregoing table summarizing our segment results of operations.
Current report — wording carried from elsewhere
For additional information about our First Lien Credit Agreement, see Note 6 of the unaudited condensed consolidated financial statements and related notes in this Quarterly Report on Form 10-Q.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Revenues attributable to Rehab Care were $69.8 million for the three months ended March 31, 2025, as compared with $66.7 million for the three months ended March 31, 2024, an increase of $3.1 million or 4.6%. Revenues attributable to Personal Care were $97.7 million for the three months ended March 31, 2025, as compared with $94.5 million for the three months ended March 31, 2024, an increase of $3.2 million or 3.4%.
Previous report — wording carried elsewhere
Three Months Ended March 31, 2025 and 2024