BrightSpring Health Services, Inc. Common Stock Q4 FY2025 earnings call

• John Rousseau expressed appreciation to Bright Spring teammates and highlighted 2025 as productive with revenue and EBITDA growth, divestiture of community living business approved by FTC with expected cash proceeds for debt paydown, acquisition of Amedisys and LHC home health assets in Q4. • Discussed strong patient satisfaction and quality scores across various services. • Mentioned 7-year CAGR of 22% on revenue and 18% on adjusted EBITDA. • Announced Investor Day on March 17th. • Jen Phipps reminded about financial results related to continuing operations, discussed fourth quarter and full-year 2025 financials, and 2026 guidance excluding community living and unclosed acquisitions.

Total pharmacy solutions revenue grew 32% in the fourth quarter and adjusted EBITDA grew 44% versus prior year. Total pharmacy script volume was $10.8 million in the quarter. Specialty and infusion script growth was 30% year-over-year in Q4. In provider services, segment revenue grew 13% year-over-year in the fourth quarter, with segment adjusted EBITDA growing 16% year-over-year and an adjusted EBITDA margin of 16.4% in the fourth quarter. Home healthcare, representing ~55% of provider segment revenue, grew 19% year-over-year. Rehab care, ~20% of provider revenue, grew 8% year-over-year. Personal care, ~25% of provider revenue, had steady to up revenue growth of 4% year over year.

• 2026 total revenue expected to be in the range of $14.45 billion to $15.0 billion, including pharmacy solutions revenue of $12.6 billion to $13.1 billion and provider services revenue of $1.85 billion to $1.9 billion, reflecting 11.9% to 16.2% growth over full year 2025 excluding community living. • Total adjusted EBITDA expected to be in the range of $760 million to $790 million for full year 2026, reflecting 23.1% to 27.9% growth over full year 2025 excluding community living, with expected contribution from Amedisys and LHC acquisition of $30 million. • Q1 is typically the lowest quarter from an annualized perspective, with sequential growth expected in each quarter of 2026, and margin growth driven by different products coming online and a generic launch in Q2.

Q: About points of variability in 2026 forecast, A: Continuing to drive volume growth, sales investments, Lean Sigma tech and AI projects, and integrating Amedisys and LHC acquisitions.

Q: Comments on generic conversion, biosimilar, A: 16-20 new LDD introductions expected, winning rare/orphan and non-oncology LDDs, biosimilar impact minimal.

Q: EBITDA and margins for segments in 2026, A: EBITDA outpaces revenue, margin expansion from product mix, operational efficiencies, and investments.

Q: Views on home health rate environment, A: Baseline view flat, optimistic with potential for rate increases.

Q: Earnings impact on specialty when drugs launch generic, A: Multifactorial growth, brand LDDs, generic utilization, fee-for-service business.

Q: Margin profile of Amedisys assets, A: Hope to drive to higher margin, integration work ongoing.

Q: Cadence of quarters in 2026, A: Sequential growth expected, Q1 lowest, margin growth throughout year.

Q: Pharmacy revenue guidance moving parts, A: Headwinds from IRA, brand to generic conversions, strong growth despite headwinds.

Q: Update on infusion business, A: High growth, top two provider in acute, expanding specialty, investing in resources.

Q: Onco360 Salesforce role, A: Long-standing relationships, increased field force investments, high net promoter scores.

Q: Pharmacy segment margins in 2026, A: Improvement from mix shift, operational improvements, economies of scale.

Q: Integration milestones with LHC, A: Assimilation well, cultural fit, margin opportunity, overlap with hospice branches.

Q: Headwind in LTC business from IRA, A: Working on enhanced dispensing fee, volume growth, operational efficiencies.

Q: Margin expansion drivers in pharmacy, A: Operational efficiencies, economies of scale, strong growth targets