BrightSpring Health Services, Inc. Common Stock Q3 FY2025 earnings call

• Thanked employees for their dedication in providing high-quality care. - Financial results for Q3 were in line with preliminary announcements, with revenue up ~28% and adjusted EBITDA up ~37% y/y. - Community Living divestiture expected to close in Q1 2026, subject to regulatory approvals. - Pharmacy Solutions saw growth in specialty and infusion, with specialty scripts up ~40% in Q3. - Provider segment had strong performance in home health, rehab, and personal care, with home health average daily census up 3% y/y and hospice up ~15% y/y. - Implemented continuous lean automation and efficiency programs contributing to growth and margin improvement.

Total company revenue was $3.3 billion in the third quarter, with Pharmacy Solutions revenue at $3.0 billion (up 31% y/y) and Provider Services revenue at $367 million (up 9% y/y). Pharmacy Solutions adjusted EBITDA grew 42% y/y, driven by specialty and infusion growth. Provider Services adjusted EBITDA grew 16% y/y, with home health care (50% of provider revenue) up 12% y/y, rehab care (20% of provider revenue) up 9% y/y, and personal care (30% of provider revenue) up 6% y/y. Pharmacy Solutions had a 31% y/y revenue growth and 42% y/y adjusted EBITDA growth, while Provider Services saw 9% y/y revenue growth and 16% y/y adjusted EBITDA growth.

• Total revenue for 2025 expected in the range of $12.5 billion to $12.8 billion, with Pharmacy Solutions revenue $11.05 billion to $11.3 billion and Provider Services revenue $1.45 billion to $1.5 billion. - Total adjusted EBITDA for 2025 expected in the range of $605 million to $615 million. - Amedisys and LHC branch acquisitions expected to close this quarter and be accretive to 2026 results. - Leverage ratio at September 30 was 3.3x, with a goal of below 3x by year-end.

• Regulatory approvals for Community Living divestiture could impact the closing timeline. - Impact of specific customer divestitures and flu season on pharmacy volumes. - Interest rate risks due to hedging activities. - Potential impact of drug pricing dynamics on the portfolio, though branded GP is not the majority of the portfolio.

Q: On the pacing of new drug launches, Jon mentioned the pipeline remains robust with 16 to 18 launches over next 12-18 months despite some coming sooner.

A: Pipeline unchanged, robust, with some therapies coming sooner but future pace confident.

Q: On Amedisys and LHC branch acquisitions, Jon said universe of divested branches increased slightly, transaction expected to close this quarter.

A: Slight increase in divested branches included, transaction to close this quarter.

Q: On sources of accretion for Amedisys transaction, Jon said limited to disclose but optimistic about applying practices for growth and efficiency.

A: Limited disclosure, but optimistic about integrating practices for growth and efficiency.

Q: On Omnicare bankruptcy and opportunity to pick up share, Jon said not material, focused on own customers and end markets.

A: Not material, focused on own customers and end markets, with strong performance in key service lines driving EBITDA.

Q: On LDDs and drug approvals, Jon said no impact, pipeline as big as ever.

A: No impact on LDDs, pipeline remains robust.

Q: On EBITDA guidance raise, Jennifer said reflects core performance and efficiency efforts.

A: Correct, reflects core performance and efficiency efforts.

Q: On future opportunities and margins, Jon spoke to growth in infusion, hospice, LDDs, home health, and process automation.

A: Growth in various service lines, infusion bearing fruit, hospice performing well, LDDs and conversions, home health with acquisitions and automation, and focus on process and automation.