Option Care Health, Inc. Q4 FY2025 earnings call

• Option Care Health is the nation's largest independent provider of home and alternate site infusion therapy, serving over 315,000 unique patients and over 2.5 million infusion events in 2025. - Continued to capitalize on industry dynamics, opening new infusion suites and pharmacies, deploying innovative technology, deepening referral base, and expanding formulary. - Partnerships with payers continue to deepen, with active site of care programs and new programs added in 2025. - Strong pipeline of infused and injectable drugs, with pharma partnerships expanding. - Invested in growth across the platform, adding talent, strengthening technology stack, and making ambulatory infusion clinic investments. Pro forma infusion clinic visits grew over 25% in Q4 2025 for Intramed Plus.

For the full year 2025, net revenue was $5.6 billion, up 13% over prior year. Acute revenue grew in the mid-teens, while chronic therapies grew in the low double digits. Gross profit dollars grew 7.4% and SG&A percent of sales declined 50 basis points to 12.1%. Adjusted EBITDA was $471 million, up 6%, with an EBITDA margin of 8.3%. Adjusted diluted EPS was $1.72, up 9%. For 2026, guidance is full year revenue of $5.8 billion to $6 billion, adjusted EBITDA of $480 million to $505 million, adjusted diluted EPS of $1.82 to $1.92, and operating cash flow of at least $340 million.

• Reaffirmed 2026 guidance with full year revenue of $5.8 billion to $6 billion (4% growth midpoint, 400 basis point headwind from Stelara and biosimilars). - Adjusted EBITDA guidance of $480 million to $505 million, including $25 million to $35 million gross profit headwind from Stelara and biosimilars. - Adjusted diluted EPS guidance of $1.82 to $1.92. - Operating cash flow guidance of greater than $340 million. - Forecasted net interest expense of $50 million to $55 million, tax rate of 26% to 28%, and share count of 159 million shares for Q1 2026.

Q: David MacDonald asked about affordability with payers and hospital systems.

A: John Rademacher said they're working closely with payers on site of care initiatives to reduce total cost of care, and have strong relationships with hospital systems to transition patients.

Q: Jacob asked about the outlook and early trends.

A: Meenal Sethna and John Rademacher said no changes to guidance, trends are in line with expectations.

Q: Pito Chickering asked about quantifying Stelara impact and acute/chronic growth.

A: Meenal Sethna said Stelara impact patterned as expected, John Rademacher discussed acute and chronic growth expectations.

Q: Brian Tanquilut asked about EBITDA trajectory.

A: John Rademacher and Meenal Sethna said fundamentals are strong, expecting double-digit EBITDA once Stelara headwinds are behind.

Q: Lisa Gill asked about capital allocation and M&A.

A: Meenal Sethna and John Rademacher said M&A is a focus, looking for strategic and financially accretive opportunities.

Q: Albert Rice asked about AI applications.

A: John Rademacher and Meenal Sethna discussed AI applications in various areas like call centers and workforce optimization.

Q: Joanna Gajuk asked about nontraditional payers and limited distribution drugs.

A: John Rademacher talked about nontraditional payers being conveners, and discussed limited distribution drugs and their platforms.

Q: Charles Rhyee asked about Stelara census and 340B.

A: Meenal Sethna said no substantial changes to Stelara census assumptions, John Rademacher discussed 340B support.

Q: Erin Wright asked about competitive landscape.

A: John Rademacher said there's continued runway in the market.

Q: Raj Kumar asked about investment thesis and AI benefit.

A: John Rademacher discussed AI benefits in claim processing and overall investments in various areas