BrightSpring Health Services, Inc. Q1 FY2025 earnings call

Jon Rousseau thanked employees and noted strong first-quarter performance with revenue and adjusted EBITDA growth. The planned divestiture of the community living business is expected to close in the second half of 2025, with FTC second request received. Quality highlights included home health over 80% branches 4-star+, hospice visits 50% above national average, etc. Discussed external regulatory topics like pharma tariffs and IRA, with no material impact expected in 2025. Procurement and lean initiatives drive efficiencies across the organization.

Total company revenue for the first quarter was $2.9 billion, representing 26% year-over-year growth. Pharmacy Solutions revenue was $2.5 billion, a 28% year-over-year increase, while provider services revenue was $346 million, a 12% year-over-year growth. Pharmacy Solutions adjusted EBITDA was $116 million, growing 31% year over year with a 4.6% margin. Provider services adjusted EBITDA was $51 million, growing 9% year over year with a 14.8% margin. Within pharmacy, infusion and specialty revenue was $2 billion, a 33% year-over-year growth, and home and community pharmacy revenue was $581 million, a 14% year-over-year growth. Within provider services, home health care revenue was $178 million, a 21% year-over-year growth; rehab revenue was $70 million, a 5% year-over-year growth; and personal care revenue was $98 million, a 3% year-over-year growth.

Increased total revenue guidance to $12 billion to $12.5 billion (19.1%-24.1% growth year over year) and adjusted EBITDA guidance to $570 million to $585 million (23.9%-27.2% growth year over year), driven by strong pharmacy volume, provider performance, and operational initiatives.

Uncertainty around pharma tariffs with no significant policy in place yet, monitoring potential 2026 impact; FTC second request on community living divestiture approval process.

Q: Can you talk about the factors driving gross profit per script?

A: It's a function of product mix, payer mix, and procurement efforts.

Q: How does IRA impact growth?

A: No meaningful swing, confidence in growth continues as per long-term track record.

Q: Scenario around tariffs?

A: Uncertain, brand reimbursed off cost, generic competitive with multiple sourcing options.

Q: Thoughts on Amedisys acquisition?

A: Fits M&A philosophy, no leverage impact expected.

Q: What are the drivers of the guidance update?

A: Strong pharmacy volume, margin expansion initiatives in both pharmacy and provider segments.

Q: Update on bundled services and ACOs?

A: Steady progress, potential EBITDA contribution, with slow and steady growth expected.

Q: Cash flow and seasonality?

A: Q1 strong, Q2 lower due to tax payments and other one-time items, but steady overall.