BrightSpring Health Services, Inc. Tangible Equity Unit Q2 FY2025 earnings call

• Jon Rousseau thanked teammates and noted second quarter results exceeded expectations. - Revenue and adjusted EBITDA grew 30% y-o-y. Total company revenue $3.1B, Pharmacy Solutions $2.8B (+32%), Provider Services $358M (+11%). - High quality metrics: 90% of home health locations had 4+ stars, 98% timely care initiation in home health; hospice quality index above national average; rehab patient satisfaction 99%; Home & Community Pharmacy dispense accuracy 99.99%; Specialty Pharmacy medication possession ratio 93%. - Discussed growth in volumes, customer wins due to high satisfaction, and investments in efficiencies and innovative care services.

For the second quarter, BrightSpring's revenue and adjusted EBITDA both grew approximately 30% versus last year's comparable quarter. Total company revenue was $3.1 billion, a 29% year-over-year growth. Pharmacy Solutions revenue was $2.8 billion, increasing 32% year-over-year, contributing a significant portion. Provider Services revenue was $358 million, up 11% year-over-year. Pharmacy Solutions adjusted EBITDA was $125 million, growing 32%, with an adjusted EBITDA margin of 4.5%. Provider Services adjusted EBITDA was $56 million, growing 11%, with a margin of 15.8%.

• Increased total revenue guidance to $12.2B - $12.6B and adjusted EBITDA guidance to $590M - $605M for 2025. - Driven by improved pharmacy revenue outlook, procurement and efficiency initiatives, strong provider performance, and improved profitability in infusion.

• Regulatory risks: CMS hospice and home health rate updates, with home health preliminary rate not adequate; potential policy impacts on pharmacies from pharma tariffs and IRA. - Integration risks with acquisitions, waiting on outcomes of Community Living divestiture and Amedisys transaction.

Q: Whit Mayo asked about infusion performance and growth expectations.

A: Jon Rousseau said infusion had strong quarter, new leadership, and expects continued growth, especially in acute therapies.

Q: A.J. Rice asked about back half guidance uplift.

A: Jon Rousseau mentioned continued momentum across company, efficiency initiatives, and favorable rate developments.

Q: Albert J. William Rice asked about M&A pipeline.

A: Jon Rousseau said continued focus on low-multiple tuck-in acquisitions, waiting on divestiture outcomes.

Q: David Larsen asked about home health rule.

A: Jon Rousseau said home health has strong ROI, expects rate support to improve, and is growing into the space.

Q: Joanna Gajuk asked about Specialty Pharmacy growth pace.

A: Jon Rousseau said growth driven by service quality, infrastructure, and business development, expecting continued growth.

Q: Brian Gil Tanquilut asked about LDD pipeline and rare disease in Specialty Pharmacy.

A: Jon Rousseau said 16-18 LDD launches expected, rare disease leverages core capabilities.

Q: Charles Rhyee asked about generics in Pharmacy.

A: Jon Rousseau said focus on generic utilization, invested in clinical liaison team.

Q: Erin Elizabeth Wilson Wright asked about market share gains and M&A opportunities.

A: Jon Rousseau said focused on acute infusion market, strong M&A track record.

Q: Matthew Dale Gillmor asked about procurement efforts.

A: Jon Rousseau said robust procurement team working on continuous improvement, including tech and AI.

Q: Lawrence Scott Solow asked about value-based contracts and Haven Hospice.

A: Jon Rousseau said value-based contracts progressing, Haven Hospice performing well ahead of expectations