Option Care Health, Inc. (OPCH) Earnings

Management highlights

### Overall Performance & Recognition - Option Care Health is the largest independent U.S. provider of home and alternate-site infusion therapy, ranked #15 on Time's 2026 World's Most Impactful Companies list. - Q2 2026 revenue, adjusted EBITDA, and EPS all beat management expectations, with strong cash generation; $150 million in shares were repurchased under the company's buyback program in Q2, reflecting a commitment to disciplined capital allocation. ### Strategic Initiatives & Operational Improvements - Realigned commercial team resources to expand reach and frequency across top specialty practices and accounts, strengthening the go-to-market strategy. - Continued investment in artificial intelligence, digital tools, workflow automation, and advanced analytics to improve care coordination, reduce administrative burden, enhance patient/provider/employee experiences, and improve operational efficiency. Specific investments focus on patient onboarding, claims processing, nurse routing/scheduling, delivery optimization, and patient communication, with the goal of reducing overall healthcare costs and freeing clinicians to spend more time with patients. - Expanded ambulatory infusion clinic footprint, adding 5 new facilities in Q2; clinic visits grew over 20% YoY, with over 35% of all nursing visits now conducted in company-owned suites or clinics, confirming clinic-based growth as a strong complement to the core home infusion pharmacy model.

Guidance

- Full-year 2026 revenue guidance is maintained at $5.675 billion to $5.775 billion, unchanged from prior projections. - Full-year adjusted EBITDA guidance is narrowed to $480 million to $495 million, and adjusted EPS guidance is narrowed to $1.85 to $1.92, reflecting cost reduction initiatives, variable compensation adjustments, and expected revenue growth momentum. The narrowed range accounts for potential upside from new rare/orphan drug launches launching in late 2026. - Net interest expense is expected to remain in the $50 million to $55 million range, full-year tax rate guidance is maintained at 26% to 28%, and operating cash flow guidance of at least $320 million for 2026 is maintained. - SG&A growth is projected to be at or slightly below full-year gross profit growth, in line with prior expectations. - For Q3 2026, management expects low-to-mid single-digit sequential revenue growth and mid-single-digit sequential adjusted EBITDA growth over Q2 2026, consistent with historical seasonality. Continued sequential momentum from Q3 to Q4 is expected, in line with historical seasonal patterns of stronger second half performance.

Segment performance

Total company Q2 2026 revenue was $1.4 billion, up 2% year-over-year (YoY) and 7% sequentially. The Acute Therapy segment delivered high single-digit organic YoY revenue growth, with sequential and YoY growth across all key categories and patient volumes, outperforming broader industry growth. The Chronic Therapy platform segment had flat YoY revenue and high single-digit sequential growth over Q1 2026: the IG Neuro sub-segment delivered sequential and YoY revenue growth and is a key growth driver; the Chronic Inflammatory Disease (CID) sub-segment stabilized after a Q1 2026 reset, with sequential patient census growth in Q2; the Rare and Orphan sub-segment delivered solid sequential and YoY revenue growth across therapies, with new therapies added that will go live in late 2026 to early 2027. Adjusted EBITDA for the company was $117.5 million, up 3% YoY and 12% sequentially. SG&A was 11% of total revenue, down 3% YoY.

Risks & headwinds

- CID portfolio revenue and growth profit headwinds from the Stelara biosimilar entry are expected to remain consistent with prior guidance, with a projected 600 basis point year-over-year revenue headwind and $55 million growth profit headwind for full-year 2026; Stelara and related biosimilars are expected to represent less than 1% of 2026 net revenue and growth profit. - Launch timing for new rare and orphan therapies is partially dependent on regulatory approvals outside of the company's control, which could impact 2026 revenue outcomes. - Increased PBM white bagging efforts for high-cost infusion therapies create portfolio pressure, though management notes limited direct impact to its pharmacy-based model and has accounted for known formulary shifts in current guidance. - All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from current projections.

Analyst Q&A

• Q: Analyst asked for update on traction of 2026 strategic initiatives (commercial realignment, technology investments) and timing of their financial impact / return to historical long-term growth rates. /

  A: Management noted significant progress in setting the framework for realigned commercial resources and go-to-market strategy, with momentum expected to build through the second half of 2026 and into 2027. Strong progress has also been made deploying AI and advanced technology for nurse productivity, routing, scheduling, delivery optimization, and patient onboarding, with tangible benefits already visible in Q2 2026 results, and momentum expected to continue. Management stated the foundation is in place to return to historical sequential growth, but declined to provide 2027 guidance at this time.

• Q: Analyst asked what the expected impact of CMS's 2027 proposal to expand Medicare coverage for certain home infusion pumps and drugs would be for Option Care. /

  A: Management has long advocated for expanded Medicare home infusion coverage, and noted the proposed expansion only covers a narrow set of therapies. The company is well-positioned to participate in the expanded coverage, and will continue to push for broader expansion to capture additional cost savings for the system.

• Q: Analyst asked how much Q3/Q4 guidance relies on proactive administrative cost cuts, and if future share buybacks are embedded in current guidance. /

  A: Current guidance only incorporates the $150 million Q2 share buyback already completed, with no incremental future buybacks assumed. Revenue growth from commercial investments and ongoing CID patient census recovery are the core drivers of guidance, not large proactive cost cuts. Ongoing efficiency improvements driven by technology deployment (which improves productivity and reduces administrative burden) are expected to contribute, rather than abrupt across-the-board cost cuts.

• Q: Analyst asked if the long-term chronic home infusion market growth expectation of low double-digit growth remains intact, and if Option Care can still grow at or above market rate. /

  A: Management reaffirmed strong long-term market fundamentals, noting Option Care's unique position with a hybrid medical/pharmacy billing model, broad payer access, strong pharma partnerships for new product launches, and a position on the right side of the cost-quality equation. The company remains well-positioned to capture market growth and outperform the market after the CID portfolio reset is complete.