BrightSpring Health Services, Inc. Reports First Quarter 2025 Financial Results and Increases Full Year 2025 Guidance

LOUISVILLE, Ky., May 02, 2025 (GLOBE NEWSWIRE) -- BrightSpring Health Services, Inc. (“BrightSpring” or the “Company”) (NASDAQ: BTSG), a leading provider of home and community-based health services for complex populations, today announced financial results for the first quarter ended March 31, 2025, and increased Revenue and Adjusted EBITDA1 guidance. Financial Highlights(note: all figures exclude the Community Living business) Net Revenue of $2,878 million, up 25.9% compared to $2,286 million in the first quarter of 2024.Net Income from Continuing Operations of $9.2 million, compared to Net Loss from Continuing Operations of $56.0 million in the first quarter of 2024.Adjusted EBITDA1 of $131 million, up 28.2% versus $102 million in the first quarter of 2024.Planned divestiture of Community Living business to Sevita, announced on January 20, 2025, remains on track to be divested this year.Increased 2025 Revenue and Adjusted EBITDA guidance: Revenue: $12,000 - $12,500 millionAdjusted EBITDA1: $570 - $585 million “BrightSpring’s focus on serving patients with quality and efficient care in home and community settings continues to be foundational to the Company’s growth and financial performance,” said Jon Rousseau, Chairman, President, and Chief Executive Officer of the Company. “We are pleased with our first quarter results across the Pharmacy and Provider service lines, as we reach more patients with high-quality solutions, leverage our scaled platform and processes, and invest in best practices and the future. We remain confident in our team’s ability to bring timely, coordinated, and impactful services and care to the populations we serve, where they are.” First Quarter 2025 Financial Results (note: all figures exclude the Community Living business) Net Revenue of $2,878 million, up 25.9% compared to $2,286 million in the first quarter of 2024. Gross Profit of $338 million, up 15.7% compared to $292 million in the first quarter of 2024. Net Income from Continuing Operations of $9.2 million, compared to Net Loss from Continuing Operations of $56.0 million in the first quarter of 2024. Adjusted EBITDA1 of $131 million, up 28.2% compared to $102 million in the first quarter of 2024. 1Adjusted EBITDA is a non-GAAP financial measure. Please see “Non-GAAP Financial Information” and the end of this press release for a reconciliation of Adjusted EBITDA to net income (loss) from continuing operations, the most directly comparable financial measure prepared in accordance with GAAP. Key Financials (for BrightSpring continuing operations) Three Months Ended March 31, (Unaudited) 2025 2024 % ($ in millions) Pharmacy Solutions Revenue $2,532 $1,977 28% Provider Services Revenue 346 309 12% Total Revenue $2,878 $2,286 26% Three Months Ended March 31, (Unaudited) 2025 2024 % ($ in millions) Pharmacy Solutions segment EBITDA $116 $88 31% Provider Services segment EBITDA 51 47 9% Total Segment Adjusted EBITDA $167 $135 24% Corporate Costs (36) (33) - Total Company Adjusted EBITDA(1) $131 $102 28% 1Adjusted EBITDA is a non-GAAP financial measure. Please see “Non-GAAP Financial Information” and the end of this press release for a reconciliation of Adjusted EBITDA to net income (loss) from continuing operations, the most directly comparable financial measure prepared in accordance with GAAP. Full Year 2025 Financial Guidance For the full year 2025, BrightSpring is increasing guidance, which excludes the Community Living business and the effects of any future closed acquisitions. All growth rates are shown as compared to the full year 2024 Revenue and Adjusted EBTIDA results, excluding the Community Living business. Net Revenue of $12,000 million to $12,500 million, or 19.1% to 24.1% growth. Pharmacy Segment Revenue of $10,550 million to $11,000 million, or 20.5% to 25.7% growth.Provider Segment Revenue of $1,450 million to $1,500 million, or 10.0% to 13.8% growth. Adjusted EBITDA2 of $570 million to $585 million, or 23.9% to 27.2% growth. A copy of the Company’s first quarter 2025 earnings presentation is available on the Company’s investor relations website, https://ir.brightspringhealth.com/ 2A reconciliation of the foregoing guidance for the non-GAAP metric of Adjusted EBITDA to GAAP net income (loss) from continuing operations cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results. Webcast and Conference Call Details BrightSpring will host a conference call today, May 2, 2025, at 8:30 a.m. Eastern Time. Investors interested in listening to the conference call are required to register online. A live and archived webcast of the event will be available on the “Events & Presentations” section of the BrightSpring website at https://ir.brightspringhealth.com/. The Company has posted supplemental financial information on the first quarter 2025 results that it will reference during the conference call. The supplemental information can be found under the “Events & Presentations” on the Company’s investor relations page. About BrightSpring Health Services BrightSpring Health Services provides complementary home- and community-based pharmacy and provider health solutions for complex populations in need of specialized and/or chronic care. Through the Company’s service lines, including pharmacy, home health care and primary care, and rehabilitation and behavioral health, we provide comprehensive and more integrated care and clinical solutions in all 50 states to over 450,000 customers, clients and patients daily. BrightSpring has consistently demonstrated strong and often industry-leading quality metrics across its services lines while improving the quality of life and health for high-need individuals and reducing overall costs to the healthcare system. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, our operations and financial performance. Forward-looking statements include all statements that are not historical facts. These forward-looking statements may relate to matters which include, but are not limited to, industries, business strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. In some cases, we have used words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,” “foreseeable,” “target,” “guidance,” the negative version of these words, or similar terms and phrases to identify these forward-looking statements. The forward-looking statements are based on management’s current expectations and are not historical facts or guarantees of future performance. The forward-looking statements relate to the future and are therefore subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs, and projections will result or be achieved. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, and other factors, many of which are beyond our control. We believe that these factors include but are not limited to the following: our operation in a highly competitive industry;our inability to maintain relationships with existing patient referral sources or establish new referral sources;changes to Medicare and Medicaid rates or methods governing Medicare and Medicaid payments for our services;cost containment initiatives of third-party payors, including post-payment audits;the implementation of alternative payment models and the transition of Medicaid and Medicare beneficiaries to managed care organizations may limit our market share and could adversely affect our revenues;changes in the case mix of patients, as well as payor mix and payment methodologies, and decisions and operations of third-party organizations;our reliance on federal and state spending, budget decisions, and continuous governmental operations which may fluctuate under different political conditions;changes in drug utilization and/or pricing, PBM contracts, and Medicare Part D/Medicaid reimbursement, which may negatively impact our profitability;changes in our relationships with pharmaceutical suppliers, including changes in drug availability or pricing;reliance on the continual recruitment and retention of nurses, pharmacists, therapists, caregivers, direct support professionals, and other qualified personnel, including senior management;compliance with or changes to federal, state, and local laws and regulations that govern our employment practices, including minimum wage, living wage, and paid time-off requirements;fluctuation of our results of operations on a quarterly basis;harm caused by labor relation matters;limitations in our ability to control reimbursement rates received for our services if we are unable to maintain or reduce our costs to provide such services;delays in collection or non-collection of our accounts receivable, particularly during the business integration process;failure to manage our growth effectively, which may inhibit our ability to execute our business plan, maintain high levels of service and satisfaction or adequately address competitive challenges;our ability to identify, successfully complete and manage acquisitions, joint ventures, and other strategic initiatives, including the pending sale of our Community Living business;our ability to continue to provide consistently high quality of care;maintenance of our corporate reputation or the emergence of adverse publicity, including negative information on social media or changes in public perception of our services;contract continuance, expansion and renewal with our existing customers, including renewals at lower fee levels, customers declining to purchase additional services from us, or reduction in the services received from us pursuant to those contracts;effective investment in, implementation of improvements to and proper maintenance of the uninterrupted operation and data integrity of our information technology and other business systems;security breaches, loss of data, and other disruptions, which could compromise sensitive business or patient information; cause a loss of confidential patient data, employee data or personal information; or prevent access to critical information and thereby expose us to liability, litigation, and federal and state governmental inquiries and damage our reputation and brand;risks related to credit card payments and other payment methods;potential substantial malpractice or other similar claims;various risks related to governmental inquiries, regulatory actions, and whistleblower and other lawsuits, which may not be entirely covered by insurance;our current insurance program, which may expose us to unexpected costs, particularly if we incur losses not covered by our insurance or if claims or losses differ from our estimates;factors outside of our control, including those listed, which have required and could in the future require us to record an asset impairment of goodwill;a pandemic, epidemic, or outbreak of an infectious disease;inclement weather, natural disasters, acts of terrorism, riots, civil insurrection or social unrest, looting, protests, strikes, or street demonstrations; andsignificant changes in tax or trade policies, tariffs, or trade relations between the United States and other countries, such as the imposition of unilateral tariffs on imported products; andour inability to adequately protect our intellectual property rights. The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law. These factors should not be construed as exhaustive, and should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results may vary in material respects from those projected in these forward-looking statements. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward- looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make. For additional information on these and other factors that could cause BrightSpring’s actual results to differ materially from expected results, please see our filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov. Non-GAAP Financial Measures This press release contains “non-GAAP financial measures,” including “EBITDA” and “Adjusted EBITDA,” which are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States, or GAAP. EBITDA and Adjusted EBITDA have been presented in this release as supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP, because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management also believes that these measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Management uses EBITDA and Adjusted EBITDA to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish and award discretionary annual incentive compensation, and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. EBITDA and Adjusted EBITDA are not GAAP measures of our financial performance and should not be considered as an alternative to net income (loss) as a measure of financial performance or any other performance measures derived in accordance with GAAP. Additionally, these measures are not intended to be a measure of free cash flow available for management’s discretionary use as they do not consider certain cash requirements such as tax payments, debt service requirements, total capital expenditures, and certain other cash costs that may recur in the future. Management defines EBITDA as net income (loss) from continuing operations before income tax benefit, interest expense, net and depreciation and amortization. Management also defines Adjusted EBITDA as EBITDA, further adjusted to exclude non-cash share-based compensation, acquisition, integration and transaction-related costs, restructuring and divestiture-related and other costs, legal costs and settlements associated with certain historical matters for PharMerica, significant projects, and management fees. The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. Please see the end of this press release for reconciliations of non-GAAP financial measures to the most directly comparable financial measure prepared in accordance with GAAP. BrightSpring Contact: Investor Relations:David Deuchler, CFAGilmartin Group LLCir@brightspringhealth.com Media Contact:Leigh Whiteleigh.white@brightspringhealth.com502.630.7412 BrightSpring Health Services, Inc. and SubsidiariesConsolidated Balance SheetsMarch 31, 2025 and December 31, 2024(In thousands, except share and per share data)(Unaudited) March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $52,337 $60,954 Accounts receivable, net of allowance for credit losses 975,264 902,782 Inventories 533,637 636,561 Prepaid expenses and other current assets 131,027 161,310 Current assets held for sale 836,183 131,447 Total current assets 2,528,448 1,893,054 Property and equipment, net of accumulated depreciation of $355,623 and $339,892 at March 31, 2025 and December 31, 2024, respectively 177,228 180,570 Goodwill 2,370,024 2,363,884 Intangible assets, net of accumulated amortization 568,284 595,224 Operating lease right-of-use assets, net 162,371 161,032 Deferred income taxes, net 2,311 5,288 Other assets 38,279 39,128 Non-current assets held for sale — 687,960 Total assets $5,846,945 $5,926,140 Liabilities, Redeemable Noncontrolling Interest, and Equity Current liabilities: Trade accounts payable $868,080 $923,926 Accrued expenses 302,590 295,746 Current portion of obligations under operating leases 38,687 38,910 Current portion of obligations under financing leases 3,287 3,463 Current portion of long-term debt 48,725 48,725 Current liabilities held for sale 196,248 117,563 Total current liabilities 1,457,617 1,428,333 Obligations under operating leases, net of current portion 130,360 129,467 Obligations under financing leases, net of current portion 6,477 6,530 Long-term debt, net of current portion 2,489,339 2,561,858 Long-term liabilities 72,585 71,190 Non-current liabilities held for sale — 77,177 Total liabilities 4,156,378 4,274,555 Redeemable noncontrolling interest 3,323 3,730 Shareholders' equity: Common stock, $0.01 par value, 1,500,000,000 shares authorized, 175,183,434 and 174,245,990 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively $1,752 $1,742 Preferred stock, $0.01 par value, 250,000,000 authorized, no shares issued and outstanding at March 31, 2025 and December 31, 2024 — — Additional paid-in capital 1,880,099 1,866,850 Accumulated deficit (192,613) (222,155)Accumulated other comprehensive (loss) income (1,869) 1,418 Total shareholders' equity 1,687,369 1,647,855 Noncontrolling interest (125) — Total equity 1,687,244 1,647,855 Total liabilities, redeemable noncontrolling interest, and equity $5,846,945 $5,926,140 BrightSpring Health Services, Inc. and SubsidiariesConsolidated Statements of OperationsFor the three months ended March 31, 2025 and 2024(In thousands, except per share amounts)(Unaudited) For the Three Months Ended March 31, 2025 2024 Revenues: Products $2,532,171 $1,977,035 Services 345,958 308,731 Total revenues 2,878,129 2,285,766 Cost of goods 2,328,215 1,807,100 Cost of services 211,545 186,175 Gross profit 338,369 292,491 Selling, general, and administrative expenses 287,630 307,826 Operating income (loss) 50,739 (15,335)Loss on extinguishment of debt — 12,726 Interest expense, net 41,763 54,470 Income (loss) from continuing operations before income taxes 8,976 (82,531)Income tax benefit (240) (26,504)Income (loss) from continuing operations, net of income taxes 9,216 (56,027)Income from discontinued operations, net of income taxes 19,794 9,642 Net income (loss) 29,010 (46,385)Net loss attributable to noncontrolling interests included in continuing operations (532) (635)Net income (loss) attributable to BrightSpring Health Services, Inc. and subsidiaries $29,542 $(45,750) Net income (loss) per common share: Basic income (loss) per share attributable to common shareholders: Continuing operations $0.05 $(0.31)Discontinued operations $0.10 $0.05 Net income (loss) $0.15 $(0.26)Diluted income (loss) per share attributable to common shareholders: Continuing operations $0.05 $(0.31)Discontinued operations $0.09 $0.05 Net income (loss) $0.14 $(0.26)Weighted average shares outstanding: Basic 201,005 175,531 Diluted 214,927 175,531 BrightSpring Health Services, Inc. and SubsidiariesConsolidated Statements of Cash FlowsFor the three months ended March 31, 2025 and 2024(In thousands)(Unaudited) For the Three Months Ended March 31, 2025 2024 Operating activities: Net income (loss) $29,010 $(46,385)Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: Depreciation and amortization 42,161 48,922 Impairment of long-lived assets 3,411 1,769 Change in fair value of contingent consideration, net 1,698 — Provision for credit losses 8,101 6,622 Amortization of deferred debt issuance costs 2,749 4,447 Share-based compensation 15,681 24,848 Deferred income taxes, net 4,031 (31,732)Loss on extinguishment of debt — 12,726 (Gain) loss on disposition of fixed assets (287) 122 Other 161 (312)Change in operating assets and liabilities, net of acquisitions and dispositions: Accounts receivable (79,449) (115,576)Prepaid expenses and other current assets 23,973 8,916 Inventories 103,300 30,485 Trade accounts payable (53,871) 21,605 Accrued expenses 8,643 (43,430)Other assets and liabilities (7,714) (1,886)Net cash provided by (used in) operating activities $101,598 $(78,859)Investing activities: Purchases of property and equipment $(17,632) $(21,816)Acquisitions of businesses (6,754) (9,394)Other 195 272 Net cash used in investing activities $(24,191) $(30,938)Financing activities: Long-term debt borrowings $— $2,566,000 Long-term debt repayments (11,792) (3,359,353)Proceeds from issuance of common stock on initial public offering, net — 656,485 Proceeds from issuance of tangible equity units, net — 389,000 Repayments of the Revolving Credit Facility, net (63,300) (50,700)Payment of debt issuance costs — (42,963)Repurchase of shares of common stock — (325)Proceeds from shares issued under share-based compensation plan 345 — Taxes paid related to net share settlement of equity awards (2,763) — Purchase of redeemable noncontrolling interest (5,100) (300)Payment of financing lease obligations (3,408) (3,081)Net cash (used in) provided by financing activities $(86,018) $154,763 Net (decrease) increase in cash and cash equivalents (8,611) 44,966 Cash and cash equivalents at beginning of period 61,253 13,071 Cash and cash equivalents at end of period $52,642 $58,037 Cash and cash equivalents included in assets held for sale at end of period 305 2,494 Cash and cash equivalents included in continuing operations at end of period $52,337 $55,543 BrightSpring Health Services, Inc. and SubsidiariesReconciliation of EBITDA and Adjusted EBITDAFor the three months ended March 31, 2025 and 2024(Unaudited) The following table reconciles net income (loss) from continuing operations to EBITDA and Adjusted EBITDA: ($ in thousands) For the Three Months Ended March 31, 2025 2024 Net income (loss) from continuing operations $9,216 $(56,027)Income tax benefit (240) (26,504)Interest expense, net 41,763 54,470 Depreciation and amortization 40,832 39,236 EBITDA $91,571 $11,175 Non-cash share-based compensation (1) 12,474 23,586 Acquisition, integration, and transaction-related costs (2) 9,521 8,541 Restructuring and divestiture-related and other costs (3) 17,496 23,899 Legal costs and settlements (4) — 10,473 Significant projects (5) — 1,160 Management fee (6) — 23,381 Total adjustments $39,491 $91,040 Adjusted EBITDA $131,062 $102,215 (1)Represents non-cash share-based compensation to certain members of our management and full-time employees. The three months ended March 31, 2024 includes $15.0 million of previously unrecognized share-based compensation expense related to performance-vesting options under the 2017 Stock Plan, a portion of which vested upon completion of the IPO.(2)Represents transaction costs incurred in connection with planned, completed, or terminated acquisitions, which include investment banking fees, legal diligence and related documentation costs, finance and accounting diligence and documentation; costs associated with the integration of acquisitions, including any facility consolidation, integration travel, or severance; and costs associated with other planned, completed, or terminated non-routine transactions.(3)Represents costs associated with restructuring-related activities, including closure, and related license impairment, and severance expenses associated with certain enterprise-wide or significant business line cost-savings measures. These costs include $10.0 million and $6.1 million of costs that did not meet the criteria for discontinued operations related to the Community Living divestiture for the three months ended March 31, 2025 and 2024, respectively. These costs also include $12.7 million of unamortized debt issuance costs associated with the extinguishment of our Second Lien Facility in the three months ended March 31, 2024.(4)Represents settlement and defense costs associated with certain historical PharMerica litigation matters, including the Silver matter, all of which were finalized in 2024. See Note 13 within the unaudited condensed consolidated financial statements and related notes in this Quarterly Report on Form 10-Q for additional information.(5)Represents costs associated with certain transformational projects and for the periods presented primarily included general ledger system implementation, pharmacy billing system implementation, and ransomware attack response costs, all of which were finalized in 2024.(6)Represents annual management fees payable to the Managers under the Monitoring Agreement through the date of the IPO, and $22.7 million of termination fees resulting from the termination of the Monitoring Agreement upon completion of the IPO Offerings. All management fees ceased following the completion of the IPO in 2024. BrightSpring Health Services, Inc. and SubsidiariesReconciliation of Adjusted EPSFor the three months ended March 31, 2025 and 2024(Unaudited) The following table reconciles diluted EPS to Adjusted EPS: (shares in thousands) For the Three Months Ended March 31, 2025 2024 Diluted EPS from continuing operations $0.05 $(0.31)Non-cash share-based compensation (1) 0.06 0.13 Acquisition, integration, and transaction-related costs (1) 0.04 0.05 Restructuring and divestiture-related and other costs (1) 0.08 0.13 Legal costs and settlements (1) — 0.06 Significant projects (1) — 0.01 Management fee (1) — 0.13 Income tax impact on adjustments (2) (0.04) (0.11)Adjusted EPS $0.19 $0.09 Weighted average common shares outstanding used in calculating diluted U.S. GAAP net income (loss) per share 214,927 175,531 Weighted average common shares outstanding used in calculating diluted Non-GAAP income (loss) per share 214,927 186,783 (1)This adjustment reflects the per share impact of the adjustment reflected within the definition of Adjusted EBITDA.(2)The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate for the respective non-GAAP adjustment.

BrightSpring Health Services, Inc. Reports First Quarter 2025 Financial Results and Increases Full Year 2025 Guidance

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