Option Care Health Q1 2025 Earnings Summary

Revenue and Earnings
- Net revenue: $1.333 billion, up 16.3% from Q1 2024
- Gross profit: $263.1 million (19.7% of revenue) vs. $238.5 million (20.8% of revenue) in Q1 2024
- Net income: $46.7 million, up from $44.8 million
- GAAP diluted EPS: $0.28, up 7.7% from $0.26
- Adjusted net income: $67.1 million, up from $61.6 million
- Adjusted diluted EPS: $0.40, up 14.3% from $0.35
- Adjusted EBITDA: $111.8 million, up 13.7% from $98.3 million

Cash Flow and Balance Sheet
- Cash used in operating activities: $7.2 million (improved from $68.8 million used in Q1 2024)
- Cash and cash equivalents: $171.4 million at quarter end, down from $412.6 million at end of 2024
- Long-term debt: $1.1 billion

Capital Allocation
- Share repurchases: approximately $100 million during Q1 2025

Updated 2025 Guidance
- Net revenue expected between $5.4 billion and $5.6 billion
- Adjusted diluted EPS expected between $1.61 and $1.70
- Adjusted EBITDA expected between $455 million and $470 million
- Cash flow from operations expected to be at least $320 million
- Effective tax rate expected between 25% and 27%
- Net interest expense estimated between $55 million and $60 million

Option Care Health reported strong financial performance for the fourth quarter and full year 2024, showing significant revenue growth and steady profitability despite a dynamic healthcare environment.

For the fourth quarter of 2024, net revenue increased by 19.7% to $1.35 billion, compared to $1.12 billion in the same period of 2023. Gross profit rose by 8.6% to $268.4 million, though gross margin declined slightly to 19.9% from 22.0%. Net income stood at $60.1 million, reflecting a 5.1% increase from $57.2 million in the prior year. Adjusted net income grew to $75.5 million, with adjusted diluted earnings per share rising 15.8% to $0.44. Adjusted EBITDA reached $121.6 million, an 8.9% increase. However, cash flow from operations fell 29.1% to $36.1 million. The company repurchased approximately $90 million of stock during the quarter.

For the full year 2024, net revenue grew 16.2% to $5.0 billion. Gross profit increased modestly to $1.01 billion, though gross margin declined to 20.3% from 22.8%. Net income was $211.8 million, down from $267.1 million in 2023, largely due to non-operating income in the prior year. Diluted earnings per share fell to $1.23 from $1.48, while adjusted net income climbed to $272.8 million, with adjusted diluted EPS increasing 10.5% to $1.58. Adjusted EBITDA improved 4.4% to $443.8 million. Operating cash flow decreased 12.9% to $323.4 million.

Looking ahead, Option Care Health projects 2025 net revenue between $5.3 billion and $5.5 billion. Adjusted diluted EPS is expected to range from $1.59 to $1.69, while adjusted EBITDA is forecasted at $450 million to $470 million. The company anticipates cash flow from operations of at least $320 million, with an effective tax rate of 25%-27% and net interest expenses between $55 million and $60 million.

CEO John C. Rademacher emphasized the company’s resilience and commitment to patient-centered care, expressing confidence in its ability to expand services and deliver affordable healthcare.

A conference call to discuss the results will be held on February 26, 2025, at 8:30 a.m. EST, with a webcast available for 90 days.