Option Care Health Announces Financial Results for the Second Quarter Ended June 30, 2025

July 30, 2025 07:00 ET | Source: Option Care Health, Inc. BANNOCKBURN, Ill., July 30, 2025 (GLOBE NEWSWIRE) -- Option Care Health, Inc. (the “Company” or “Option Care Health”) (Nasdaq: OPCH), the nation’s largest independent provider of home and alternate site infusion services, announced today financial results for the second quarter ended June 30, 2025. Second Quarter 2025 Financial Highlights Net revenue of $1,416.1 million, up 15.4% compared to $1,227.2 million in the second quarter of 2024Gross profit of $269.0 million, or 19.0% of net revenue, up 7.9% compared to $249.4 million, or 20.3% of net revenue, in the second quarter of 2024Net income of $50.5 million, compared to net income of $53.0 million, in the second quarter of 2024 and diluted earnings per share of $0.31, up 3.3% compared to diluted earnings per share of $0.30 in the second quarter of 2024Adjusted net income of $67.5 million, compared to adjusted net income of $64.9 million, in the second quarter of 2024 and adjusted diluted earnings per share of $0.41, up 10.8% compared to adjusted diluted earnings per share of $0.37 in the second quarter of 2024Adjusted EBITDA of $114.0 million, up 5.2% compared to $108.4 million in the second quarter of 2024Cash provided by operating activities of $90.3 million, compared to cash provided by operating activities of $195.7 million in the second quarter of 2024Repurchased approximately $50.0 million of stock in the second quarter of 2025 John C. Rademacher, Chief Executive Officer, commented, “I am proud of the second quarter performance and the Option Care Health team's ability to show resilience in a dynamic marketplace. We continue to execute on opportunities to provide strong clinical outcomes while helping reduce the total cost of care.” Updated Full Year 2025 Financial Guidance For the full year 2025, Option Care Health now expects to generate: Net revenue of $5.50 billion to $5.65 billionAdjusted diluted earnings per share of $1.65 to $1.72Adjusted EBITDA of $465 million to $475 millionCash flow from operations of at least $320 millionEffective tax rate of 25% - 27%Net interest expense of approximately $55 million to $60 million Conference Call Option Care Health will host a conference call to discuss its second quarter 2025 financial results later today at 8:30 a.m. ET. The conference call can be accessed via a live audio webcast that will be available online at investors.optioncarehealth.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days. About Option Care Health Option Care Health is the nation’s largest independent provider of home and alternate site infusion services. With over 8,000 team members including more than 5,000 clinicians, we work compassionately to elevate standards of care for patients with acute and chronic conditions in all 50 states. Through our clinical leadership, expertise and national scale, Option Care Health is reimagining the infusion care experience for patients, customers and team members. To learn more, please visit our website at optioncarehealth.com. Investor Contact Mike ShapiroChief Financial OfficerT: (312) 940-2538mike.shapiro@optioncare.com Forward-Looking Statements - Safe Harbor This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “estimate,” “expect,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we may make regarding future revenues, future earnings, regulatory developments, market developments, new products and growth strategies, integration activities and the effects of any of the foregoing on our future results of operations or financial conditions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: changes in laws and regulations applicable to our business model; changes in market conditions and receptivity to our services and offerings; pending and future litigation; potential liability for claims not covered by insurance; and loss of relationships with managed care organizations and other non-governmental third party payers. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our periodic reports as filed with the SEC. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. Note Regarding Use of Non-GAAP Financial Measures In addition to reporting financial information in accordance with generally accepted accounting principles (GAAP), the Company is also reporting Adjusted net income, Adjusted EBITDA and Adjusted earnings per share ("Adjusted EPS"), which are non-GAAP financial measures. These adjusted measures are not measurements of financial performance under GAAP and should not be used in isolation or as a substitute or alternative to net income, earnings per share, or any other performance measure derived in accordance with GAAP, or as a substitute or alternative to cash flow from operating activities or a measure of the Company’s liquidity. In addition, the Company's definitions of Adjusted net income, Adjusted EBITDA, and Adjusted EPS may not be comparable to similarly titled non-GAAP financial measures reported by other companies. As defined by the Company: (i) Adjusted net income represents net income before intangible asset amortization expense, stock-based compensation expense, and restructuring, acquisition, integration and other expenses, net of tax adjustments, (ii) Adjusted EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization, stock-based compensation expense, loss on extinguishment of debt, and restructuring, acquisition, integration and other expenses, and (iii) Adjusted earnings per share represents Adjusted net income divided by weighted average common shares outstanding, diluted. As part of restructuring, acquisition, integration and other expenses, the Company may incur significant charges such as the write down of certain long‑lived assets, temporary redundant expenses, professional fees, certain litigation expenses and reserves related to acquired businesses, potential retention and severance costs and potential accelerated payments or termination costs for certain of its contractual obligations. Management believes that these adjusted measures provide useful supplemental information regarding the performance of Option Care Health’s business operations and facilitate comparisons to the Company’s historical operating results. We have not reconciled Adjusted EBITDA or Adjusted diluted earnings per share guidance to net income as management believes creation of this reconciliation would not be practicable due to the uncertainty regarding, and potential variability of, material reconciling items. Full reconciliations of each adjusted measure to the most comparable GAAP financial measure are set forth below. Schedule 1 OPTION CARE HEALTH, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(IN THOUSANDS)(UNAUDITED) June 30, 2025 December 31, 2024ASSETS CURRENT ASSETS: Cash and cash equivalents$198,818 $412,565Accounts receivable, net 481,253 409,733Inventories 403,542 388,131Prepaid expenses and other current assets 91,616 112,198Total current assets 1,175,229 1,322,627 NONCURRENT ASSETS: Property and equipment, net 133,673 127,367Intangible assets, net 23,566 16,993Referral sources, net 304,151 284,017Goodwill 1,605,855 1,540,246Other noncurrent assets 140,352 130,493Total noncurrent assets 2,207,597 2,099,116TOTAL ASSETS$3,382,826 $3,421,743 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable$590,221 $610,779Other current liabilities 183,399 169,367Total current liabilities 773,620 780,146 NONCURRENT LIABILITIES: Long-term debt, net of discount, deferred financing costs and current portion 1,103,701 1,104,641Other noncurrent liabilities 145,557 132,718Total noncurrent liabilities 1,249,258 1,237,359Total liabilities 2,022,878 2,017,505 STOCKHOLDERS’ EQUITY 1,359,948 1,404,238TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$3,382,826 $3,421,743 Schedule 2 OPTION CARE HEALTH, INC.CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)(UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 NET REVENUE$1,416,085 $1,227,186 $2,749,057 $2,373,238 COST OF REVENUE 1,147,042 977,821 2,216,962 1,885,373 GROSS PROFIT 269,043 249,365 532,095 487,865 OPERATING COSTS AND EXPENSES: Selling, general and administrative expenses 170,092 153,783 338,210 308,525 Depreciation and amortization expense 16,241 14,907 31,987 29,635 Total operating expenses 186,333 168,690 370,197 338,160 OPERATING INCOME 82,710 80,675 161,898 149,705 OTHER INCOME (EXPENSE): Interest expense, net (14,447) (12,603) (27,678) (25,805)Other, net 598 3,969 (1,803) 5,096 Total other expense (13,849) (8,634) (29,481) (20,709) INCOME BEFORE INCOME TAXES 68,861 72,041 132,417 128,996 INCOME TAX EXPENSE 18,338 18,998 35,152 31,162 NET INCOME$50,523 $53,043 $97,265 $97,834 Earnings per share, basic$0.31 $0.31 $0.59 $0.56 Earnings per share, diluted$0.31 $0.30 $0.59 $0.56 Weighted average common shares outstanding, basic 162,931 172,927 164,188 173,428 Weighted average common shares outstanding, diluted 164,133 174,090 165,402 174,831 Schedule 3 OPTION CARE HEALTH, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(IN THOUSANDS)(UNAUDITED) Six Months Ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income$97,265 $97,834 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization expense 33,326 30,802 Other adjustments 35,857 38,874 Changes in operating assets and liabilities: Accounts receivable, net (61,392) (90,642)Inventories (12,718) (7,417)Prepaid expenses and other current assets 17,606 (1,745)Accounts payable (27,904) 107,558 Accrued compensation and employee benefits 8,730 (30,206)Other (7,651) (18,187)Net cash provided by operating activities 83,119 126,871 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of property and equipment (18,466) (15,597)Business acquisitions, net of cash acquired (117,247) — Net cash used in investing activities (135,713) (15,597) CASH FLOWS FROM FINANCING ACTIVITIES: Purchase of company stock and related excise taxes (152,429) (118,122)Proceeds from issuance of debt — 49,959 Other financing activities (8,724) (10,088)Net cash used in financing activities (161,153) (78,251) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (213,747) 33,023 Cash and cash equivalents - beginning of the period 412,565 343,849 CASH AND CASH EQUIVALENTS - END OF PERIOD$198,818 $376,872 Schedule 4 OPTION CARE HEALTH, INC.QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)(UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income$50,523 $53,043 $97,265 $97,834 Interest expense, net 14,447 12,603 27,678 25,805 Income tax expense 18,338 18,998 35,152 31,162 Depreciation and amortization expense 16,953 15,497 33,326 30,802 EBITDA 100,261 100,141 193,421 185,603 EBITDA adjustments Stock-based incentive compensation expense 10,712 7,608 19,513 17,213 Loss on extinguishment of debt — 377 — 377 Restructuring, acquisition, integration and other 3,045 231 12,850 3,454 Adjusted EBITDA$114,018 $108,357 $225,784 $206,647 Net income$50,523 $53,043 $97,265 $97,834 Intangible asset amortization expense 9,297 8,604 18,394 17,213 Stock-based incentive compensation expense 10,712 7,608 19,513 17,213 Restructuring, acquisition, integration and other 3,045 231 12,850 3,454 Total pre-tax adjustments 23,054 16,443 50,757 37,880 Tax adjustments (1) (6,109) (4,546) (13,451) (9,134)Adjusted net income$67,468 $64,940 $134,571 $126,580 Earnings per share, diluted$0.31 $0.30 $0.59 $0.56 Adjusted earnings per share, diluted$0.41 $0.37 $0.81 $0.72 Weighted average common shares outstanding, diluted 164,133 174,090 165,402 174,831 (1) Tax adjustments for the three and six months ended June 30, 2025 and 2024 includes the estimated income tax effect on non-GAAP adjustments based on the effective tax rate

Option Care Health Announces Financial Results for the Second Quarter Ended June 30, 2025

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