Option Care Health, Inc. Q3 FY2025 earnings call

• Introduced new team members: Meenal Sethna as CFO, Stephen Shulstein as Vice President of Investor Relations. - Third quarter results were strong with balanced growth across therapy portfolios. - Benefiting from market trends like shift of care to home and ambulatory settings. - Strong relationships with payers and pharma manufacturers. - Expanded utilization of bed day management programs and site of care initiatives. - Invested in platform enhancements including new infusion clinics, advanced practitioner footprint, and technology. - Integrated acquisitions like Intramed Plus successfully.

Revenue grew 12% in the third quarter. Acute therapy grew in the mid-teens, while chronic therapies grew in the low double digits. Gross profit was $273 million, up 6.3% year-over-year. Adjusted EBITDA was $119.5 million, up 3.4% year-over-year. Adjusted earnings per share were $0.45, up 9.8% year-over-year. Revenue contribution from acute and chronic therapies varied, with acute showing mid-teens growth and chronic in low double digits, contributing to the overall 12% revenue growth.

• Full year 2025 revenue expected $5.6 billion to $5.65 billion. - Adjusted EBITDA expected $468 million to $473 million. - Adjusted EPS expected $1.68 to $1.72. - Midpoints of guidance raised reflecting confidence in the platform and team execution. - Guidance incorporates expectations on potential tariffs and policy changes with no material financial impact in 2025.

• Impact of Stelara biosimilar uptake with potential revenue and gross profit drag. - Regulatory dynamics and competitive landscape posing challenges. - Uncertainty around the pace of Stelara biosimilar conversion and its impact on financials.

Q: What is the uptake of the Stelara biosimilar and how does it evolve?

A: Uptake started in the second quarter and continued in the third. Expect continued slow uptake with further step down in price due to January 1 calendar roll and IRA impact. Hard to size 2026 impact now.

Q: How about G&A costs?

A: G&A has been impacted by debt refinancing, Intramed acquisition, variable comp, and investments in growth. Leverage is down, and cash flow generation is strong.

Q: M&A opportunities?

A: Assessing tuck-in and near adjacency opportunities, disciplined in approach, focusing on leveraging scale and infrastructure.