BTSG

BrightSpring Health Services (BTSG) is back in focus after recent reports highlighted strong quarterly performance, long term revenue growth and an approximately 9% uplift in earnings expectations that coincided with a Zacks Rank #1 rating. The share price tells a similar story of strong interest in BrightSpring Health Services, with a year-to-date share price return of 58.59% and a 1-year total shareholder return of 156.64%. This comes even after a 15.95% decline over the past 30 days from the latest close at $60.90, which suggests that momentum has cooled recently but remains strong over a longer horizon. Scan the momentum story around BrightSpring Health Services against a hand picked set of other fast moving healthcare opportunities in the 39 healthcare AI stocks. After a move this sharp in BrightSpring Health Services, investors are left weighing how much of the good news is already in the price and how much potential upside, if any, the current valuation still leaves on the table. BrightSpring Health Services has a narrative fair value of $70.59 versus the last close at $60.90, which frames the stock as materially undervalued on that basis and helps explain why some investors are still focused on the upside case despite recent share price volatility. Read the complete narrative. Want to see why this narrative values BrightSpring Health Services above the current price? The fair value leans heavily on pharmacy driven margins, scaling cash generation and a future earnings multiple usually associated with faster growing healthcare platforms. Interested in which specific growth and profitability assumptions sit behind that $70.59 figure and how the business mix feeds into it? The full narrative lays out those moving parts in detail. Result: Fair Value of $70.59 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, BrightSpring Health Services still faces risks if pharmacy margins compress, or if deleveraging stalls and investors start to question the premium multiple embedded in this narrative. Find out about the key risks to this BrightSpring Health Services narrative. The narrative fair value of $70.59 points to upside for BrightSpring Health Services. However, the P/E ratio of 51x is far above the US Healthcare industry at 25.6x, the peer average at 39.2x, and even the fair ratio of 36.2x. That kind of gap can mean valuation risk if expectations are not met. Investors weighing this richer P/E against the undervalued narrative have a clear trade off to judge. Is the current price already baking in a lot of the pharmacy story, or does the premium multiple still leave room if execution stays on track? See what the numbers say about this price — find out in our valuation breakdown. Given the mixed signals around BrightSpring Health Services, it makes sense to pressure test the story against the numbers yourself and move quickly while sentiment is still forming. To see how the positives and negatives compare side by side, review the 4 key rewards and 1 important warning sign. If you like the BrightSpring Health Services story but do not want to rely on a single stock, you may want to broaden your watchlist with a few targeted screens. Target potential value opportunities by scanning companies that look mispriced on quality and fundamentals through the 46 high quality undervalued stocks. Prioritize resilience by focusing on stocks highlighted in the 76 resilient stocks with low risk scores. Look for earlier stage opportunities that still clear quality hurdles by reviewing the 22 elite penny stocks with strong financials. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BTSG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the senior health, home health & hospice industry, including BrightSpring Health Services (NASDAQ:BTSG) and its peers. The senior health, home care, and hospice care industries provide essential services to aging populations and patients with chronic or terminal conditions. These companies benefit from stable, recurring revenue driven by relationships with patients and families that can extend many months or even years. However, the labor-intensive nature of the business makes it vulnerable to rising labor costs and staffing shortages, while profitability is constrained by reimbursement rates from Medicare, Medicaid, and private insurers. Looking ahead, the industry is positioned for tailwinds from an aging population, increasing chronic disease prevalence, and a growing preference for personalized in-home care. Advancements in remote monitoring and telehealth are expected to enhance efficiency and care delivery. However, headwinds such as labor shortages, wage inflation, and regulatory uncertainty around reimbursement could pose challenges. Investments in digitization and technology-driven care will be critical for long-term success. The 7 senior health, home health & hospice stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.5%. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9% since the latest earnings results. Founded in 1974, BrightSpring Health Services (NASDAQ:BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services. BrightSpring Health Services reported revenues of $3.87 billion, up 23% year on year. This print exceeded analysts’ expectations by 5.9%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations. "We are pleased with the Company’s second quarter results that reflect our quality focus, service level performance, and dedication to the patients we serve," said Jon Rousseau, Chairman, President, and Chief Executive Officer of BrightSpring. BrightSpring Health Services achieved the biggest analyst estimate beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 17.4% since reporting and currently trades at $60.18. We think BrightSpring Health Services is a good business, but is it a buy today? Read our full report here, it’s free. With a unique business model combining end-of-life care and household services, Chemed (NYSE:CHE) operates two distinct businesses: VITAS, which provides hospice care for terminally ill patients, and Roto-Rooter, which offers plumbing and water restoration services. Chemed reported revenues of $673.3 million, up 8.8% year on year, outperforming analysts’ expectations by 1.2%. The business had a very strong quarter with an impressive beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates. The market seems content with the results as the stock is up 4.4% since reporting. It currently trades at $540.55. Is now the time to buy Chemed? Access our full analysis of the earnings results here, it’s free. With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ:AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders. AdaptHealth reported revenues of $740.3 million, up 12.7% year on year, falling short of analysts’ expectations by 12.6%. It was a disappointing quarter as it posted full-year revenue and EBITDA guidance missing analysts’ expectations significantly. AdaptHealth delivered the weakest performance against analyst estimates and weakest full-year guidance update among its peers. As expected, the stock is down 48.3% since the results and currently trades at $5.60. Read our full analysis of AdaptHealth’s results here. With a nationwide network of 177 locations serving 43 states and a team of over 4,500 clinicians, Option Care Health (NASDAQ:OPCH) is the largest independent provider of home and alternate site infusion services, delivering medications and clinical support to patients across the United States. Option Care Health reported revenues of $1.44 billion, up 1.9% year on year. This number topped analysts’ expectations by 1.6%. It was a strong quarter as it also put up an impressive beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates. The stock is up 5.3% since reporting and currently trades at $23.68. Read our full, actionable report on Option Care Health here, it’s free. With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE:BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities. Brookdale reported revenues of $718.6 million, down 11.6% year on year. This print missed analysts’ expectations by 2.3%. Taking a step back, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but full-year EBITDA guidance meeting analysts’ expectations. Brookdale had the slowest revenue growth in the group. The stock is down 11% since reporting and currently trades at $12.19. Read our full, actionable report on Brookdale here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. BrightSpring Health Services (BTSG) was in focus after releasing second quarter 2026 results on July 31, alongside updated full year revenue guidance that shaped investor expectations for the rest of the year. See our latest analysis for BrightSpring Health Services. BrightSpring Health Services shares have been volatile in recent weeks, with a 3.09% 1 day share price gain following earnings offset by a 14.30% decline over 30 days. However, the year to date share price return of 55.42% and 1 year total shareholder return of 166.55% suggest momentum has still been strong overall as investors absorb the raised 2026 revenue guidance and prior fund related selling. If BrightSpring Health Services has your attention after these earnings, it can be useful to see how other healthcare names are priced for growth in AI supported care, starting with 43 healthcare AI stocks Bulls point to BrightSpring Health Services' rapid growth and raised 2026 guidance, while bears focus on volatility and prior fund selling. Which side does the current valuation actually support as you weigh the stock today? The most followed narrative for BrightSpring Health Services places fair value at $70.59 per share, compared to the latest close at $59.68, which implies upside in that framework. Read the complete narrative. Want to see what sits behind that pharmacy centric thesis and $70.59 fair value for BrightSpring Health Services? The narrative from prajeesh leans heavily on margin expansion, mix shift in pharmacy revenue and a step change in free cash flow. Curious which earnings and valuation assumptions tie those threads together into that specific price target. Result: Fair Value of $70.59 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, BrightSpring Health Services still faces risks around execution on pharmacy margins and any slowdown in revenue growth, which could act as a catalyst for reassessing that valuation story. Find out about the key risks to this BrightSpring Health Services narrative. While the community narrative points to BrightSpring Health Services trading below a $70.59 fair value, the current P/E of 50x tells a different story. It stands well above the US Healthcare industry at 24.7x, the peer average at 22.7x, and even the 35.9x fair ratio our models suggest the market could move toward. That gap leaves less room for error if earnings or sentiment slip, even with strong growth forecasts. The question for you is whether this premium reflects a durable pharmacy platform or simply stretches what you are comfortable paying for expected earnings. See what the numbers say about this price — find out in our valuation breakdown. The mix of enthusiasm and caution around BrightSpring Health Services is clear, so it makes sense to move quickly and test the numbers against your own expectations. To see both sides of the story in one place, review the 4 key rewards and 1 important warning sign If BrightSpring Health Services has sharpened your focus on healthcare opportunities, do not stop here. Broader ideas from other sectors can round out your watchlist and highlight different risk and return profiles. Target potential upside in smaller companies that already show strong financial foundations by scanning the 19 elite penny stocks with strong financials. Zero in on companies that combine quality with attractive pricing by reviewing the 49 high quality undervalued stocks. Strengthen your core holdings with companies that emphasize resilience by assessing the 85 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BTSG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

BrightSpring Health Services delivered revenue and adjusted profit above Wall Street expectations in Q2, but the market’s negative reaction reflected concerns about underlying headwinds. Management attributed strong year-over-year growth to continued expansion in its Specialty and Infusion pharmacy business, alongside disciplined operational execution and efficiency gains from technology investments. CEO Jon Rousseau detailed that "our Specialty and Infusion business delivered revenue growth of 30% and script growth of 31%," with performance supported by new limited distribution drug (LDD) launches and broad-based volume growth. However, segments like Home and Community Pharmacy were impacted by customer exits and regulatory headwinds, which management acknowledged as ongoing challenges. Is now the time to buy BTSG? Find out in our full research report (it’s free). Revenue: $3.87 billion vs analyst estimates of $3.66 billion (23% year-on-year growth, 5.9% beat) Adjusted EPS: $0.45 vs analyst estimates of $0.40 (13% beat) Adjusted EBITDA: $205.5 million vs analyst estimates of $195.7 million (5.3% margin, 5% beat) The company lifted its revenue guidance for the full year to $15.26 billion at the midpoint from $14.98 billion, a 1.9% increase EBITDA guidance for the full year is $832.5 million at the midpoint, above analyst estimates of $816.3 million Operating Margin: 3.4%, up from 1.5% in the same quarter last year Market Capitalization: $12.7 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Charles Rhyee (TD Cowen) asked about the contribution of generics, especially Revlimid, and the impact of increased corporate expenses. CEO Jon Rousseau stated there were no changes in generic expectations, and CFO Jennifer Phipps attributed higher expenses to technology and key hires. Ann Hynes (Mizuho) questioned the sequential decline in Pharmacy segment gross margin. Rousseau explained that Q2 margins were healthy and seasonal, with normalized gross profit per script actually improving. Scott Fidel (Goldman Sachs) inquired about acute versus chronic infusion growth and investments. Rousseau described acute infusion growth as significantly above market rates and outlined ongoing investments in chronic infrastructure and AI-enabled intake processes. Pito Chickering (Deutsche Bank) asked about LDD ramp and potential participation in new drug launches. Rousseau expressed enthusiasm for both oncology and non-oncology wins, while Phipps provided guidance on continued quarter-over-quarter EBITDA growth. A.J. Rice (UBS) sought clarification on capital structure plans and acquisition pipeline. Phipps and Rousseau highlighted improved leverage, credit upgrades, and a focus on disciplined, accretive M&A, particularly in core service lines. Looking ahead, the StockStory team will be monitoring (1) the pace of Specialty and Infusion LDD launches and partnership wins, (2) the impact of technology and automation projects on operational efficiency and margin trends, and (3) ongoing integration outcomes from recent acquisitions in Provider Services. Additionally, we will track regulatory developments around the IRA and reimbursement models, as well as execution in new geographic markets and service lines. BrightSpring Health Services currently trades at $60.75, down from $72.88 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Friday, July 31, 2026 at 8:30 a.m. ET Investor Relations - David Deuchler Chief Executive Officer - Jon Rousseau Chief Financial Officer - Jennifer Phipps Operator: Thank you for standing by, and welcome to BrightSpring Health Services Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I would now like to hand the call over to David Deuchler, Investor Relations. Please go ahead. David Deuchler: Good morning. Thank you for participating in today's conference call. My name is David Deuchler with Investor Relations at BrightSpring. I'm joined on today's call by Jon Rousseau, Chief Executive Officer; and Jen Phipps, Chief Financial Officer. Earlier today, BrightSpring released financial results for the quarter ended June 30, 2026. A copy of the press release and presentation is available on the company's Investor Relations website. Please note that today's discussion will include certain forward-looking statements that reflect our current assumptions and expectations, including those related to our future financial performance and industry market conditions. Such forward-looking statements are not guarantees of future performance. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations. We encourage you to review the information in today's press release and presentation as well as in our quarterly report on Form 10-Q that will be filed with the SEC, including specific risk factors and uncertainties discussed in our Form 10-K and Form 10-Q. Such factors may be updated from time to time in our periodic filings with the SEC, and we do not undertake any duty to update any forward-looking statements, except as required by law. During the call, we will use non-GAAP financial measures when talking about the company's financial performance and financial condition. You can find additional information on these non-GAAP measures and reconciliations of our non-GAAP financial measures to their most directly comparable GAAP financial measures to the extent available without unreasonable effort in today's press release and presentation, which again are available on our Investor Relations website. This webcast is being recorded and will be available for replay on our Investor Relations website. With that, I will now turn the call over to Jon Rousseau, Chief Executive Officer. Jon Rousseau: Good morning, everyone, and thank you for joining BrightSpring's Second Quarter 2026 Earnings Call. I'd like to start by thanking everyone at BrightSpring who drives our mission forward and makes a lasting impact every day. We're grateful for the hard work and commitment of all of our teammates, enabling us to deliver high-quality and timely care to patients in so many communities across the U.S. As we grow the BrightSpring platform, we remain focused on our important role and value proposition of delivering quality services and compassionate care to patients in lower cost and most often patient-preferred settings. Our strategy is aligned with many secular trends in U.S. health care, and we are focused on strong execution, thoughtful innovation and continuous improvement to drive greater impact and sustained growth. Our business continues to be underpinned by quality and operational performance, and these fundamental and critical enablers go hand-in-hand with patient volume increases, expansion into adjacent and new markets and disciplined capital allocation. We see many opportunities for the company in the years ahead. Turning to the second quarter. We were pleased with the performance across the organization, which reinforces our conviction in the value that we provide to patients and stakeholders across the country. Financial results for the quarter came in ahead of baseline expectations with total company revenue of $3.9 billion that represented 23% year-over-year growth and adjusted EBITDA of $206 million that grew 44% year-over-year. In the segments, Pharmacy Solutions revenue of $3.4 billion represented 22% growth year-over-year and adjusted EBITDA of $180 million represented an increase of 44% versus last year. In Provider Services, revenue of $466 million represented 30% growth and adjusted EBITDA of $75 million increased 33% versus last year. In Pharmacy Solutions, we saw continued business momentum in the second quarter. Our Specialty and Infusion business delivered revenue growth of 30% and script growth of 31%, reflecting strong performance from the clinical, operational and commercial teams and relationships developed with manufacturers, physicians and patients over the years. Our Specialty business continues to be driven by the branded oncology LDD portfolio, while we continue to leverage proven and core capabilities and expand into other targeted therapeutic areas, including certain rare, orphan and other complex therapies with noteworthy partnership wins in these areas. During the quarter, we added 2 ultra-narrow network LDDs to our portfolio, bringing the total number of LDDs to 155. For the year, we have launched 12 LDDs through Q2, 4 as exclusive partners and 8 ultra-narrow. And we, of course, continue to be extremely committed to our manufacturing and biotech partners and patients to deliver the best possible service support and experience for these life-changing and life-saving therapies. Additionally, we continue to see solid contribution from generic scripts, driven in part by newly available generic alternatives last year and this year. The Infusion business delivered solid volume growth across both acute and chronic therapies in line with expectations, driven by operational initiatives and service levels as well as growth investments and execution this year. We plan to expand both the acute and chronic footprint into new markets in the future and are optimistic about the opportunity to scale this business. In Home and Community Pharmacy, we continue to operate at a high level with service levels and controllable customer retention at all-time highs as we serve a variety of growing end markets, including assisted living, behavioral, hospice, PACE, skilled nursing and others. Second quarter volume and revenue performance in the Home and Community Pharmacy business was impacted by the exit of certain skilled nursing customers last year and earlier this year, which in some cases has helped improve profitable growth year-to-date. We continue to invest in automation and technology to improve efficiency and service across our scaled national footprint and the positive impact of these initiatives was reflected in the profitability of the business in the quarter, which was up year-over-year. On the Provider side, the Home Health Care business performed well, driven by strong need and demand for these valuable services and continued volume growth above industry levels as well as de novo investments, preferred MA and ACO contract execution and contribution from acquisitions, all underpinned by leading quality results across the provider service lines. We are pleased with the integration of the Amedisys and LHC branches, with the Home Health team doing a great job of integrating, particularly in the areas of HR and IT, all while we continue to have nearly 95% of our branches at 4 star or better. We now expect an EBITDA contribution of approximately $35 million in 2026 from these acquired branches. Our hospice services continue to demonstrate industry-leading quality metrics and strong census growth. The Rehab Care business continues its long-standing performance with continued payer contract advancements for these highly clinical neurotherapy programs, entry into new markets and programs like Rehab in Motion resonating with patients and customers. All retention metrics for our clinicians continue to improve every year with retention at best practice levels. Personal Care continues to provide consistent high-quality supportive care to patients who need assistance with activities of daily living in the home with a growth rate in hours served well above the industry growth rate. And in our home-based primary care business, our quality measures are extremely good, demonstrating significant reductions in hospitalizations and overall health care costs realized by patients in our network. We continue to expand and invest in business development in this service line while further integrating with home health and hospice, also laying the groundwork for future growth in quality-based payment models. At the corporate level and across the organization, we continue to invest in and progress on key clinical, HR and operational systems and new applications, including leveraging new automation and AI tools and agents in areas such as hiring, onboarding, intake, documentation, medication reviews and patient care plans. We've now had almost 300 employees receive Lean Sigma certification of various belts while completing Lean projects for each across the organization as we further institutionalize Lean business processes every year. On acquisitions, we have a full pipeline per usual. And while we remain very disciplined in executing deals that clearly meet our strategy and objectives, we are optimistic about possible transactions in the second half, having signed several small tuck-ins and geographical expansions in the past quarter. Now let me provide a few more financial highlights from the second quarter, which Jen will discuss in greater detail in a few minutes. As a reminder, the company's financial results referenced pertain to continuing operations and do not include results from the Community Living business, which was divested on March 30, 2026. Second quarter financial results came in ahead of baseline expectations with total company revenue of $3.9 billion, representing 23% year-over-year growth. Pharmacy Solutions revenue of $3.4 billion and Provider Services revenue of $466 million represented 22% and 30% growth, respectively. Second quarter adjusted EBITDA of $206 million grew 44% year-over-year, representing an adjusted EBITDA margin of 5.3%, an 80 basis point improvement versus last year. Profitability in the quarter again benefited from the scale and complementary diversification of our platform across our target Home and Community end markets, which enables tangible advantages, including breadth and optionality of opportunities for revenue generation, disciplined operational execution leveraging top-down driven best practices, procurement and contracting processes across the organization, the cumulative impact of our lean and process improvement programs, ongoing technology and AI investments and our acquisition integration capabilities and synergies. Many initiatives contributed to the profitability and margin performance in the quarter, and these remain an important source of ongoing efficiency generation going forward. From a cash flow perspective, the company generated $144 million of cash flow from operations in the quarter, excluding a onetime cash tax payment of approximately $100 million related to the Community Living transaction. Leverage was reduced to 2.15x as of June 30, 2026. We now expect approximately $600 million of operating cash flow this year with EBITDA to operating cash conversion of around 70%, and leverage for the year to end below 2x before any potential acquisitions. Also in the quarter, we received ratings upgrades from both S&P and Moody's, and we refinanced our debt at a 50 basis points lower spread. As mentioned, performance in the quarter was underpinned by consistent focus on quality of care and patient satisfaction. Additional quality measures of note included an industry-leading timely initiation of care of 99% in Home Health, hospice quality measures that continue to be well above the national average with a CAHPS overall hospice rating of 89%, rehab patient satisfaction scores above 97% and client satisfaction scores of 4.6 out of 5 in Personal Care. On the Pharmacy side, in Home and Community Pharmacy, dispensing accuracy was 99.98%, order completeness was 99% and on-time delivery was 94.3%. While in Infusion, our patient satisfaction score was 94% with 94% of discharges due to completion of therapy. Specialty Pharmacy demonstrated quality metrics well above the national average in the second quarter, delivering a high medication possession ratio of 93% and time to first fill of 3.7 days with industry-leading Net Promoter Scores. We are very pleased to consistently demonstrate exceptional service and quality across our businesses. Earlier this month, CMS released the calendar year 2027 preliminary rate for home health services. The preliminary rates include a positive annual payment update, the first such upward adjustment in several years and a positive starting point. We continue to work with CMS and Congress to highlight third-party data showing the positive health outcomes and lower Medicare cost profile of high-quality, clinically appropriate and medically necessary home health services. To close, the second quarter reflected consistent execution that we strive for every day with broad performance and steady progress towards our operating and growth priorities. We are building upon a strong foundation of growth anchored on quality to drive scale while we deploy best practices and processes across the organization to continually improve operations for the future. As we move into the second half of the year, the business is well positioned, momentum is broad-based, and we are confident in our ability to deliver the updated full year guidance Jen will discuss in a moment. With that, I'll turn the call over to her. Jennifer Phipps: Thank you, Jon. As a reminder, we closed the Community Living transaction on March 30, 2026, and all financial results reflect only continuing operations with Community Living results reflected in discontinued operations. For the second quarter of 2026, the company revenue was $3.9 billion, representing 23% growth from the prior year period. Pharmacy Solutions segment revenue in the quarter was $3.4 billion, achieving 22% year-over-year growth. Within the Pharmacy segment, Specialty and Infusion revenue was $2.9 billion, representing growth of 30% from prior year, which was driven by branded LDDs and new LDD launches script growth as well as wraparound fee-for-service program growth, generics, acute infusion growth and strong commercial execution in both the Specialty and Infusion businesses. Home and Community Pharmacy revenue was $540 million, representing a decline of 8% year-over-year due to an approximate $50 million impact from the IRA, along with our decision to exit some uneconomic customers, both of which we have previously discussed and performed as expected. On the IRA impact for the balance of the year, we continue to see a revenue impact in Home and Community Pharmacy of approximately $45 million in each of the remaining quarters in 2026, bringing the total year IRA impact to Home and Community pharmacy revenue of approximately $200 million. In the Provider Services segment, we reported revenue of $466 million, which represents 30% growth compared to the prior year. Home Health Care reported $278 million in revenue, growing 51% versus last year. Revenue performance was driven by average daily census growth, de novo expansions and the impact of the acquired Amedisys and LHC branches, which contributed approximately $78 million of revenue and approximately $8 million of adjusted EBITDA in the second quarter. Rehab Care revenue was $82 million, growing 12% versus last year, with healthy growth in persons served and hours billed in core neuro rehab, along with the continued momentum in our Rehab in Motion program. Personal Care revenue was $107 million, representing 7% growth year-over-year, driven by modest growth in persons served, strong growth in hours billed and stable operations. Moving down the P&L. Second quarter company gross profit was $493 million, representing growth of 32% compared with the second quarter of last year. Adjusted EBITDA for the total company was $206 million in the second quarter, an increase of 44% compared to the second quarter of 2025. Adjusted EPS for the total company was $0.45. Company profitability benefited from strong top line performance across the businesses as well as consistent operational execution in addition to and from investments related to technology and AI. We continue to make targeted investments supporting a variety of operational processes and programs that will improve procurement efficiencies, streamline operations and further standardize best practices throughout the organization. Turning to segment profitability performance in the second quarter. Pharmacy Solutions gross profit was $298 million, growing 28% compared with the second quarter of last year. Adjusted EBITDA for Pharmacy Solutions was $180 million for the second quarter, an increase of 44% compared to last year, representing an adjusted EBITDA margin of 5.3%, which increased approximately 80 basis points versus last year and was similar to the first quarter of 2026. Second quarter Pharmacy profitability benefited from strong branded LDD portfolio performance, product mix across all Pharmacy businesses, pharma services and hub revenue and gross profit as well as continued investments to improve operational performance. Of note, notwithstanding external IRA and any payer impacts, Home and Community Pharmacy EBITDA performed well year-over-year in the quarter due to our internal continued operational process improvements underpinned by the deployment of new technologies. Provider Services gross profit was $195 million, growing 38% versus the second quarter of last year, with adjusted EBITDA of $75 million, growing 33% versus last year. This represents an adjusted EBITDA margin of 16.1%, up approximately 30 basis points compared to last year. We have continued to see the benefits of operational initiatives that we have put in place over the past year, driving broad-based growth, greater efficiency and economies of scale and increased margins across our Provider Services lines. On a total company basis, cash flow from operations was $44 million in the second quarter. Excluding the onetime cash payment for taxes of approximately $100 million related to the Community Living transaction, cash flow from operations was $144 million. Recall that the discontinued operations cash flows are included in the consolidated company cash flows. As we look forward to the balance of the year, excluding Community Living related cash flow impact, we expect to deliver approximately $600 million of annual operating cash flow. As of June 30, net debt outstanding was approximately $1.7 billion, and we finished the quarter with a leverage ratio of 2.15x, which includes the impact of approximately $100 million of taxes associated with the Community Living divestiture in the quarter. As mentioned during the Q1 2026 earnings call, our leverage at Q1 when adjusting for the Community Living taxes that were due subsequent to quarter end was a leverage of 2.4x. We were able to reduce our leverage from Q1 2026 to Q2 2026 on an adjusted basis by 0.25x. Our leverage ratio also includes $120 million of share repurchases year-to-date. During the second quarter, we repaid approximately $300 million of the term loan with proceeds from the Community Living sale and repriced the loan at SOFR plus 200. This compares with SOFR plus 325 at the time of our IPO and reflects strong operating performance of the business, improved cash flow generation and our lower leverage position of the company since the IPO. During Q2, Moody's and S&P both upgraded BrightSpring's credit rating, better reflecting our leverage position and debt management philosophies. Moody's upgraded its rating to Ba3 from B1, and our senior secured first lien revolving credit facility and senior secured first lien Term Loan B ratings to Ba3 from B1. S&P upgraded our issuer credit rating to BB- from B+ and also upgraded the ratings on our revolving credit facility and first-lien term loans to BB- from B+. The company has evolved since going public in January 2024 with business mix, scale, operating performance and leverage all further improved. As we move into the second half of the year and 2027, we will continue to evaluate options for the most appropriate capital structure needed to support growth over the next 5 years. Turning to guidance for 2026, which excludes the Community Living business as well as any acquisitions that have not yet closed. Total revenues is expected to be in the range of $15.1 billion to $15.425 billion, including Pharmacy Solutions revenue of $13.2 billion to $13.5 billion and Provider Services revenue of $1.9 billion to $1.925 billion. This range reflects 17.0% to 19.5% growth over full year 2025, excluding Community Living in both years. Total adjusted EBITDA is now expected to be in the range of $820 million to $845 million for full year 2026. This would reflect 32.8% to 36.8% growth over full year 2025, excluding Community Living in both years. Included in total adjusted EBITDA is expected contribution from the Amedisys and LHC assets acquisitions of approximately $35 million. I will now turn it back to Jon. Jon Rousseau: Thanks, Jen, and thank you for your time today to go through BrightSpring's second quarter 2026 results. We will now open up the call for questions. Operator? Operator: [Operator Instructions] Our first question comes from the line of Charles Rhyee of TD Cowen. Charles Rhyee: Congrats on the quarter. I just wanted to ask maybe what you're seeing in terms of generics. There's a lot of discussion the other day about Revlimid. And I think you guys had said previously that, that was kind of coming on in stages. Just curious maybe sort of the contribution you saw in the quarter from that? And maybe just give us an update on what you're seeing, how we should be thinking about layering in the benefit as we look to the rest of '26. And then maybe, Jen, just real quick, any comments on sort of the step-up in corporate expense in the quarter. Jon Rousseau: Charles, I'm not entirely familiar with any news on Revlimid lately, but that started going generic about 4 years ago. It's been fully generic for quite a while now. So there's really been no change whatsoever to our expectations this year. Jennifer Phipps: Yes. From a corporate standpoint, Charles, we did see an increase as we continue to increase some investments across key hires, including some key hires we have in a couple of different business roles as well as corporate leaders that we're really excited about that are going to help drive value. We also did continue to invest in AI and automation technology projects throughout the quarter, and we'll be looking for the benefit of those to come on either later in the year or very early next year. Operator: Our next question comes from the line of Ann Hynes of Mizuho. Ann Hynes: I just want to focus on gross margin in the Pharmacy segment. It was up year-over-year 40 basis points, but it was down sequentially 70 basis points. And when I look historically, gross margin is usually flat or up Q1 to Q2. Can you just tell us what's going on? Jon Rousseau: Yes, Ann, the margins in Q2 were very healthy again and completely in line with our expectations. We had seasonality in Q1 of this year, which is very typical and typical for your gross margin to be a little bit higher in Q1 versus Q2 for a variety of reasons. And on a GP per script basis, actually, when you normalize for that, our GP per script was actually up in Q2. So I would just reiterate that in the business, year-over-year growth was still 28% in GP, higher than revenue growth and Specialty script growth, in particular, was 32% year-over-year and even 15% up sequentially. Operator: Our next question comes from the line of Scott Fidel of Goldman Sachs. Scott Fidel: Would be interested if you can maybe parse out in the Infusion business, maybe talk about how growth in the chronic versus the acute segments looked in terms of anything to call out year-over-year or sequentially. And then maybe just talk about in terms of the continued sort of investment and build-out in the chronic infusion side of the business in terms of momentum there in terms of manufacturing engagement or demand or any other milestones you'd want to call out. Jon Rousseau: Scott. Yes, I mean, look, we continue to be really positive on the Infusion market, notwithstanding some things here and there. It's a $20 billion market, still pretty fragmented, less competitive on the acute side for a variety of reasons, just given the demands of service delivery requirements there. But within that market, I can say that our acute volume year-over-year was up over 20%, which is what, some 7 to 8x what that market grows at. So some of our investments really pay off. And I think as we sit here today, there's another 12 to 15 states that we want to be in over the next 5 years. So we really view Infusion as a long-term play here where we can continue to grind away. On the chronic side, we're still making progress, nowhere near where we want to be. Nevertheless, the volume growth on that side of the business year-over-year was close to 20%. We've done some things like roll out white glove concierge programs for things like Ig. We've seen that increase our conversion rate noticeably in the quarter. We're going to do that on some other target therapies. And we just continue to invest and add into the business in terms of capabilities and infrastructure. We've got a key AI project going on, on the intake side. And we've made some key hires, upgraded CFO in the business within the last quarter, some commercial investments as well, brought in new leadership from a data analytics standpoint. And we're starting to put this business together from a payer and purchasing standpoint in a more integrated way with our Pharmacy for America business and all of that scale over there. So we see a lot of benefits from that in the future as well. So it's been a really productive quarter in that business, but remain, I would say, more enthusiastic from a long-term perspective. Operator: Our next question comes from the line of Pito Chickering of Deutsche Bank. Pito Chickering: Can you talk about the ramp of the LDDs in the back half of the year and how to think about the contribution of revenue and EBITDA? Any color if you will be involved in daraxonrasib when it launches in the fall? And how should we think about the overall EBITDA seasonality in 3Q and 4Q? Jon Rousseau: Yes. I'll let Jen handle some of this. But Pito, we remain really enthusiastic about that business, just given we've already won 12 LDDs to date this year. As mentioned in the script, not only are we continuing to try to be the best oncology partner we can be within, I think, one of the more dynamic and innovative spaces within the specialty market. We're really leveraging those capabilities as much as we can, not only from an operational, but from a commercial perspective and field perspective to extend our partnerships outside of oncology. And we have a lot of those today. And some of our most, I would say, exciting wins here going forward have actually been outside of oncology now. So we're not at liberty to talk about any specific drugs, but we're well aware of the situation you referenced. And again, I think we're always leveraging our unique operational capabilities and our customer satisfaction feedback and our value-add wraparound services for manufacturers, which include patient contact centers, nursing services, 3PL, data analytics agreements and capabilities. We just continue to lean into those as much as we can and leverage our track record to put ourselves in a great position to continue to be a partnership to partner for a lot of these just incredible therapies that are in the pipeline. So optimistic about it as well. And the year is playing out as planned, if not a little bit better than planned, and we couldn't be more enthusiastic about the future. Jennifer Phipps: Yes. The only thing I would add, Pito, in terms of growth through each quarter of 2026 and our guidance, we have delivered a very strong first half, $206 million in the quarter. We expect quarter-over-quarter growth continuing for the rest in the balance of 2026. We do expect that growth quarter-over-quarter to be very similar. So Q2 going to Q3, Q3 going to Q4, we expect continued growth and that to be very similar to -- in Q3 and Q4's growth to be similar to each other. Jon Rousseau: Yes. I mean last year's second half for a variety of reasons and catalysts was a really huge second half, and we're going to be lapping that. But we still expect robust year-over-year growth. I mean if you look at the first half versus the -- our guidance and the high end of the guidance, that obviously implies pretty good continued growth throughout the year. Operator: Our next question comes from the line of Stephen Baxter of Wells Fargo. Stephen Baxter: I was hoping to get an update on pharmacy sourcing initiatives as you continue to build scale. And then relatedly, we saw some headlines recently about the potential for generic tariffs starting in a couple of years. So how are you thinking about the potential impact of that? And how do you build contingencies for that into your contracting? Jon Rousseau: Yes. I would just say from a purchasing perspective, that's something that we've had a focus on for a decade now. If you look at our value proposition as a home and community health care company targeting what we believe to be the most attractive markets and those of highest need and then just leveraging our scale in our operating and commercial capabilities, that scale component has been a focus for us for a really long time. And so we continue to do what we can there. And I think what we've done more and more over time that we're continuing to do is to really try to be one face to a lot of our external partners to be able to leverage that scale as much as we can, and we'll continue to do that. Jennifer Phipps: From a tariff perspective, there continues to be a lot of noise, but nothing that has impacted the company to date. We're pleased that the Trump administration has pushed any potential tariffs on generics to 2028. We continue to be flexible, as Jon mentioned, in our purchasing contracts. There's a lot of opportunities to buy drugs from different locations. We continue to monitor that closely, and we'll obviously continue to exercise good judgment as best we can as we approach any tariff impact that there could be. Jon Rousseau: Yes. Look, I mean, the good news is like generics are obviously a lot lower cost, right? And so for that reason, as we kind of look across our business and take a view of it, when you look at the product by product, business by business, that's not something that has us concerned as we think about our long-term growth algorithm and adding up all the different growth pieces that are going to go into it over the years, we don't view that as something that's worrisome. Operator: Our next question comes from the line of A.J. Rice of UBS. Albert Rice: I'm just interested maybe in pursuing a little more Jen's comments in the prepared remarks that you were looking at options for evaluating what the optimal capital structure is for the company going forward. I know you've gotten rid of -- or gotten the proceeds in now from the Community Living divestiture. Are you thinking maybe you can lean into acquisitions a little more? Maybe give us a little flavor of what you're seeing in terms of the pipeline as well. Or is there something else you're looking at in terms of commenting on optimal capital structure? Jennifer Phipps: Yes. A.J., thank you so much. We appreciate the question. We're really proud of the work that we've done from a balance sheet perspective with our leverage at 2.15x at the end of this quarter. We really are excited about the position that puts us in. As Jon mentioned in the call, I mentioned in the call, we were able to reduce our interest expense. We continue to look at what makes sense from a capital structure perspective, especially with the ratings upgrades and what makes sense there. We do believe that we will continue to be able to lean in on M&A, and we have a very robust pipeline. As Jon has mentioned, that continues to be very robust, and we're excited about the back half of 2026 and into 2027 that the balance sheet position has really given us a lot of flexibility from a capital standpoint. Jon Rousseau: A.J., I would just add, we're actually thinking about adding to that M&A team. I mean we've got 7 people on the team already. They do a great job. But really the hallmark of our M&A approach over the last 10 years now has been really targeting tuck-ins in geographically adjacent areas where we can apply better operational capabilities and synergies to drive a lot of accretive deals. So we operate in massive markets. Some of our markets don't really have acquisition opportunities. But you look at Home Health, Hospice, Rehab, Infusion, Primary Care, Home and Community Pharmacy, those all do. And so the ability to be the scale provider across these markets and leverage all of our scale, synergies and operational capabilities is just a really big value proposition. So I think that's something that, particularly from a smaller tuck-in perspective, we'll probably look to even increase the frequency on. And in terms of medium to a little bit bigger size deals and for us, bigger is still always probably less than $30 million or $40 million of EBITDA. That pipeline continues to be huge and long, and we continue to get people who proactively approach us who really want to be a part of our enterprise as a long-term home. But some people out there always do and are increasingly doing goofy things on prices and valuations in some of these markets that go well into the 20x EBITDA. So we just stay incredibly disciplined. We pick our spots, and we've got our hit list right now, and we'll see if they work out or not. But it's always got to meet our criteria, and we always try to make everything work in the equation and stay pretty disciplined. But great to see where the balance sheet has evolved. And I mean, we'll do over $600 million of OCF this year. The free cash flow is not going to be far behind it. And I think we're just really pleased with how that's played out over time. Operator: Our next question comes from the line of David Larsen of BTIG. David Larsen: Can you talk a bit about your selling efforts like -- and how they've evolved? So if you're talking to an acute care IDN, what is the sort of the value prop to those hospital systems? How much time do you spend selling to the actual health plans? Are they encouraging their networks to work with you? And then how many reps do you have like commission-based reps, really, if any, just how that has evolved over time? Jon Rousseau: Yes. I mean I just think fundamentally, our value proposition is to be a leading partner where we can deliver hopefully some of the highest quality services to payers and to hospital systems and to ACOs to everybody. And really help, in particular, in those first 30 to 60 days post discharge to reduce unnecessary bounce backs in ER visits. And that's what we've been really focused on for years. And so our ability to be a preferred provider in a narrower network with ACOs, with some hospital systems, with payers, we've seen the ability to execute on those agreements here over the last couple of years, and it will remain a really key focus for us. I think in part, that is one reason why we're seeing growth rates well above the industry averages here. I mean even on the Provider side, David, while the business grew over 30% all in from an EBITDA perspective year-over-year, I mean, organically, we were just a touch under 20% on the Provider side organically. But I think that's at play. It starts with our quality. But then you've got to be a great partner, Johnny on the spot service all day long with thousands and thousands of referral sources and hundreds of thousands of patients on a daily basis. So we have a lot of individual clinical liaisons across our service lines that are in doctor offices and hospital systems every day. I mean it's -- if you look across the breadth of the company, it's probably near 1,000 clinical liaisons across our service lines, just doing great educational and support work every day. So I think our ability to more formalize post-discharge programs and enter into even more preferred agreements with individuals, there's only more and more opportunity and a lot of opportunity to do that. But building on some of the things we already have done in that area, which has been a part of our volume growth. Operator: Our next question comes from the line of Sean Dodge of BMO Capital Markets. Sean Dodge: In Pharmacy, the IRA headwinds this year, Jen, you said $200 million now to Home and Community. And I think you said before, $175 million to Specialty and Infusion. Is that still what you're expecting for Specialty? And then is it too early to tell? Are there kind of any directional indicators you can give us on the impact either in aggregate or by subsegment there, what the impact from the next round next year will be? Jennifer Phipps: Yes. So IRA for Home and Community is just a touch higher than where we were based on our sale of the drugs this year. So it's about $200 million that we expect for the balance of the year. So -- or not the balance of the year, for the full year, about $50 million worth of impact in each quarter. The EBITDA impact remains about the same as we had previously expected and stated, which is $15 million for the year. That's for Home and Community. IRA impact in Specialty, just as a reminder, from an EBITDA standpoint is really nothing, but from a revenue headwind standpoint, does remain around that $175 million for the year. Jon Rousseau: And we tried to get well ahead of this from an operational perspective. And a lot of the things we've done on technology and automation and AI last year and now this year are going to play out into next year as well. So now that IRA thing needs to get fixed. It's still broken in its approach and how it was applied to the industry. But we're doing everything we can from an internal perspective to control what we can control. And the team's operational execution this year has just been phenomenal. And we're seeing that play out in the business, and it will continue to play out next year and makes us optimistic about the prospects for that business this year. I mean it's going to have an up second half, had an up second quarter, and there's some good drivers there for next year from an operational perspective and in a lot of these growth markets that we're in like ALF and behavioral. So unfortunate that we have to deal with some of these unintended consequences and things that occur on some of these legislative items, but we continue to work our way through it. Jennifer Phipps: Yes. And just to your question on 2027, the drugs, they selected the largest drugs first as we think about 2027 impacts really from a Home and Community standpoint, it's about 50% of the impact that we had in 2026 is our best view. And obviously, we continue to work, as Jon mentioned, from a regulatory standpoint and then also on payer contracting to mitigate the impact for 2027 in addition to the work that we're doing operationally. Operator: Our next question comes from the line of Joanna Gajuk of Bank of America. Joanna Gajuk: If I may a follow-up a question on the question around the gross profit in the Pharmacy segment. So like you said, the gross profit per script was up 28% or so year-over-year. But I guess, sequentially, it did decline slightly, right? So is that the new sort of number, the $27.50, call it, gross profit per script as a good number to think about going forward? Is there more, I guess, growth that we should assume for that metric going forward? And kind of remind us the main drivers and specifically, if there's a way for you to help us quantify or understand the impact of the fee-for-service revenue adding to that metric as well. Jon Rousseau: Yes, Joanna. I mean I would just take a step back and just sort of as we think about the broad growth of the company, really pleased across the board with what we've done, not only on the Pharmacy side, but then you look at the Provider side, 44% and 30%. So we always think about the company just from a total growth perspective and go from there with all the different pieces in the organization. Within Specialty and Infusion, a lot of different levers there and a lot of different moving pieces that all contributed to the quarter. As you said there at the end, fee-for-service is certainly one of them. We've really focused on having best-in-class wraparound services to support our manufacturing and biotech partners and all of their patients in 5 or 6 different dimensions of what we offer them from a partnership perspective. So that capability set and the volume of patients we're serving and the amount of manufacturers we're serving with those wraparound value drivers does continue to increase at a very healthy clip. But it very was multifaceted growth, not only across the enterprise, but within Specialty and Infusion. And you have the acute business and Infusion doing really well. The chronic business is growing there, operational efficiencies. We've actually won 5 LDDs in infusion in the past 6 months, too. So we're turning our focus from an LDD perspective, leveraging our know-how on that side in the oncology world to Infusion too. And then you look within Specialty and the 12 LDD launches this year, 8 networks, 2, 4 exclusives. You've got the fee-for-service, you've got OpEx per script leverage, and you've got continued partnership as we help drive generic conversions as they come out. So there's a lot there, and we're always focused on a lot of different growth levers. GP per script in the quarter was up sequentially when you adjust for some typical seasonality and some items that occur in Q1. As we look to the rest of the year, we think that is a pretty stable level. But everything is within our expectations right now fully. And as we think about the rest of the year and next year, nothing has been outside of what we would have expected whatsoever. Operator: Our next question comes from the line of Whit Mayo of Leerink Partners. Benjamin Mayo: Jon, you've talked about acute infusion as being an area of focus for the organization. I was just wondering if any of the potential 340B changes sort of impact your views on that. Jon Rousseau: Whit, no, that is not a meaningful part of our Infusion business. Operator: Our next question comes from the line of Raj Kumar of Stephens. Raj Kumar: Maybe kind of going back to the generic conversion component of the growth here. And as we kind of think about 2027 and that pipeline, maybe any way of framing what that -- what the branded versions of those drugs make up in the kind of current script that you're seeing year-to-date as we try to kind of frame the opportunity for 2027? Jon Rousseau: Yes. The launches that we -- the brands going generic that we see in 2027 will probably happen later in the year, which would be our expectation right now. Operator: Our next question comes from the line of Matthew Gillmor of KeyBanc. Matthew Gillmor: I wanted to see if you could frame up the rare and orphan opportunity relative to oncology. And then can you help us think through any sort of augmentation or investments into the sales force that needs to go along with that? Or does that leverage the existing sales force within Specialty Pharmacy? Jon Rousseau: Yes. On the latter, you're exactly right. And I think that's something that's really interesting to us. We've got several hundred folks that are clinical liaisons working across thousands of prescriber offices today. I think some other niche companies that have only focused on rare and orphan in the past don't have a sales force. So we see the -- and then we've got 155 LDD programs and 15 years of experience in that area. But I mean, there -- it's not 1 or 2 therapies that we're supporting outside of oncology. It's quite a few. And we've had some really noteworthy wins there here in the last 6 months, which has been terrific to see, and it's been based on the long track record that we can point to across our history of other LDDs. So we can 100% service almost any other therapy outside of oncology within the world that you referenced. And that's why that's an obvious area of strategic growth for us. But that market is sizable. I don't think it's nearly as sizable as oncology, but it is sizable, and it's -- we wouldn't be spending time on it if we didn't think it could be a meaningful contributor in the future. It's nowhere near as big as oncology, but it is an interesting market. Operator: Our next question comes from the line of Jared Haase of William Blair. Jared Haase: Maybe I'll drill back to your comments about seeing retention at all-time highs in the Home and Community business. I'm curious, would you sort of primarily attribute that to some of the technology initiatives that you guys have put in place? Or is there anything else that you would call out driving that retention? And I guess, how much more incremental opportunity do you see to push retention higher as sort of another growth lever going forward? Jon Rousseau: Yes, Jared, I really appreciate that question. So that's been an area of focus for a really long time. I mean it's really fundamentally 3 things. We continue to invest in our individuals from a compensation and benefits perspective. And that's been a continued focus for us, and we've been able to do that within our financial performance here for a really long time. We want to attract really good talent and the best talent. And so I think we've really tried to reward our people as best we can. I would say, to your point, exactly number two on technology and process, how do you try to make the job as efficient as possible for people so they don't have headaches. We've tried to be really innovative with our approaches there and lean in to make -- to give them every ability to focus on the patient as much as they can versus some of the headaches administratively and with paperwork that you might face. So that's been a huge area of focus for us. And we continue to do that. I would say just really third, from a training perspective, it's a huge investment for us. We try to make sure the onboarding experience is as seamless as possible and people get trained and they're invested in from a talent perspective and a development perspective, too. We have all sorts of programs in the company where people can graduate through and move up and be advanced in their career at the organization. So people and talent management is kind of a passion for us here. And the bigger we get, we just try to invest more and more in that if we can. And then culturally, we just try to be a good place to work. We focus on the mission every day. We try to reward people and try to create a very mission-focused culture where everybody is really respectful of what we're trying to do here and each other. And I think it's a place people like to work. Operator: Our next question comes from the line of Erin Wright of Morgan Stanley. Erin Wilson Wright: So I want to go back to gross profit per script. It was up 28% in the second quarter, 50% in the first quarter, 21% in 2025. But before that, it was like roughly flat. So can you give us a little bit of a context of what led to the inflection and some of those durable overarching drivers there as we kind of head into 2027 as well? And somewhat of a related question, can you speak to hub services, particularly like in terms of how big it is, how much of a driver that is for you? How important that is to growth? Can you remind us of how some of those fee-for-service relationships work? Jon Rousseau: Yes. I would say just any changes in our gross profit margin are always a function of mix in every one of our businesses. And as we've layered on more fee-for-service business, really, those services are offered in every one of our launches. And so that's something that we're seeing consistently now is when we come to market with a new drug. There's a lot of other services that we have to offer to our partners for real-time visibility and optimal patient outcomes. And so it's not the majority, certainly of our profitability in the business, but I would say it has become a meaningful probably top 4, top 3 contributor to margin in the business. Operator: Our next question comes from the line of Brian Tanquilut of Jefferies. Brian Tanquilut: Congrats on the quarter. Jon, maybe as we think about some of these bigger oncology or oral oncologics that are coming down the pipeline, how do we think about the dynamics of those shifting or going down the LDD pipe? And as we think through exclusive agreements versus really ultra-narrow networks? And then maybe, Jen, just related to that question, from a margin perspective, just curious how to think through the differences between those 2, like exclusives and ultra-narrow and how that ramps over time? Jon Rousseau: Yes, sure. I mean, Brian, I mean, I just would agree with your point that we're very enthusiastic about the pipeline within oncology. There's a lot of innovation that obviously continues to go on there, and we've tried to position ourselves as the partner and choice in that market for a long time. Jennifer Phipps: Yes. And I would just add from a margin perspective, we typically are negotiating with payers on a basket of LDDs, which includes exclusive and ultra-narrow. So certainly, having exclusives and ultra-narrows has been a differentiator for us and our ability to negotiate rate on those drugs. Operator: Our next question comes from the line of Parker Snure of Raymond James. Parker Snure: So just piggybacking off a previous question on the sales force in Pharmacy. If I look at the G&A in the Pharmacy business, it stepped down in the second quarter, about $13 million to $14 million from the first quarter. Just curious on the drivers there. Was there any timing of certain investments or anything else you'd call out? And just how should we expect that line item to track going forward? Jennifer Phipps: Yes. So we did have some specific onetime investments in the first quarter that we had a mix of both ongoing investments. We talked about that last quarter, sales force and other key positions as we've been layering out our management team to support future growth. We did have some AI projects and some other automation work, that spend wrapped up in the first quarter. We continue to have other projects and spend, some of which is in our corporate spend in the second quarter. Operator: Our next question comes from the line of Jason Cassorla of Guggenheim. Jason Cassorla: Great. Maybe just on the Amedisys and LHC assets, you upped the EBITDA expectation there for about $5 million, which isn't significant for the enterprise, but it's almost an incremental 20% step-up in EBITDA for those assets specifically. So I guess, just can you walk through the drivers there beyond just perhaps the pricing benefits of hopping on to your platform? I guess just any help there would be great. Jennifer Phipps: So integration in that business has continued to go really well. As we started off the year from a guidance perspective, we had planned for a slower ramp on some of the growth initiatives that we would have just to make sure that the team had the time that they needed in order to really be able to do the integration work that we had going on. Some of the investments that we needed to make, so Q1 to Q2, we talked last quarter about some investments. All of -- as of today, all of our business lines are -- and branches are now on our Home Care, home-based system. We're working through the final steps of integration, and we just feel more confident about the ability to increase that guidance. Jon Rousseau: Integration has gone extremely well and the volume is moving up under our ownership now. Operator: Thank you. I would now like to turn the conference back to Jon Rousseau for closing remarks. Jon Rousseau: Thank you, everybody, for joining today. We really appreciate your time on the call, and it was a productive quarter, I think, as well. We just continue to really invest for the future at the same time as delivering on today, and we look forward to talking with you in another 90 days. Thank you, and have a great day. Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in BrightSpring Health Services, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and BrightSpring Health Services wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. BrightSpring Health (BTSG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

BrightSpring Health Services, Inc. BTSG used its second-quarter 2026 earnings call to emphasize broad operating momentum, improving profitability and a stronger full-year outlook. Adjusted EPS of 45 cents topped the Zacks Consensus Estimate of 37 cents. Revenues of $3.87 billion exceeded the Zacks Consensus Estimate of $3.65 billion. BrightSpring Health Services, Inc. price-consensus-eps-surprise-chart | BrightSpring Health Services, Inc. Quote Management’s message centered on execution across Pharmacy Solutions and Provider Services, while lower leverage and strong cash generation are creating more flexibility for acquisitions and other growth investments. Executive vice president and CFO Jennifer Phipps raised full-year revenue guidance to $15.1-$15.425 billion, implying 17-19.5% growth over the figure for 2025 on a continuing-operations basis. Phipps also lifted adjusted EBITDA guidance to $820-$845 million, representing 32.8-36.8% growth. The outlook includes about $35 million of 2026 adjusted EBITDA from acquired Amedisys and LHC branches. Chairman, president and CEO Jon Rousseau said second-half momentum is broad-based. Phipps added that adjusted EBITDA should continue growing sequentially through the third and fourth quarter at similar quarter-to-quarter rates. Rousseau said Specialty and Infusion remained central growth engines, with revenues up 30% and scripts up 31% year over year. BrightSpring launched 12 limited-distribution drugs through the second quarter, including four exclusive and eight ultra-narrow arrangements. Phipps said Pharmacy Solutions adjusted EBITDA rose 44% to $180 million, with margin expanding about 80 basis points to 5.3%. Management pointed to branded LDD performance, product mix, pharma services and operational improvements. In Q&A, a Morgan Stanley analyst asked about the sharp improvement in gross profit per script. Rousseau said mix and expanding fee-for-service offerings are important drivers, with those services now a meaningful top-three or top-four contributor to Pharmacy margins. Phipps said Provider Services revenues increased 30% to $466 million, while adjusted EBITDA grew 33% to $75 million. Home Health Care revenues rose 51% to $278 million. The acquired Amedisys and LHC branches contributed about $78 million of revenues and $8 million of adjusted EBITDA in the second quarter. Phipps said integration progress and stronger volume supported the higher full-year EBITDA expectation for those assets. Rousseau also highlighted de novo expansion, preferred MA and ACO contracts, and strong quality metrics as drivers of Home Health growth. He added organic Provider EBITDA growth was just under 20%. Phipps said leverage ended the second quarter at 2.15x after BrightSpring repaid roughly $300 million of term debt. The company expects leverage below 2x by year-end before any acquisitions. Rousseau said operating cash flow should be about $600 million for 2026. Excluding a roughly $100 million one-time tax payment tied to the Community Living divestiture, second-quarter operating cash flow was $144 million. A UBS analyst asked whether the improved balance sheet could support more M&A. Phipps said the company has substantial flexibility, while Rousseau described a robust pipeline but stressed discipline, particularly as some market valuations reach more than 20 times EBITDA. A Mizuho analyst questioned the sequential decline in Pharmacy gross margin. Rousseau said the first quarter benefited from normal seasonality and maintained that second-quarter profitability was healthy, with gross profit per script higher after normalization. A BMO Capital Markets analyst focused on IRA-related pressure. Phipps said Home and Community Pharmacy faces about $200 million of 2026 revenue impact, with roughly $15 million of EBITDA impact. For 2027, Phipps said the current view for Home and Community Pharmacy is about half the 2026 IRA effect. Rousseau emphasized continued work on technology, automation and payer contracting to offset pressures management can influence. Rousseau framed quality, operational discipline and patient-service performance as the foundation for growth across the platform. Management continues investing in automation, AI, hiring, onboarding and clinical workflows while expanding selected service lines. The call also reinforced a disciplined capital-allocation posture. BrightSpring intends to pursue tuck-in acquisitions and geographic expansion while maintaining operating standards and balance-sheet flexibility. BTSG sports a Zacks Rank #1 (Strong Buy), along with a Value Score of B and Growth, Momentum and VGM Scores of A. Under the Zacks Style Scores framework, A and B grades are the preferred scores, particularly when paired with a Zacks Rank #1 or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. That combination places BTSG within the profile Zacks identifies as favorable for potential near-term performance across multiple investing styles. However, the Zacks Rank can change as analysts revise earnings estimates following the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BrightSpring Health Services, Inc. (BTSG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BrightSpring Health Services, Inc. BTSG reported second-quarter 2026 adjusted earnings per share (EPS) of 45 cents, which beat the Zacks Consensus Estimate of 37 cents by 21.6%. The bottom line improved 104.5% year over year. GAAP EPS in the quarter was 39 cents compared with 4 cents in the year-ago quarter. Revenues increased 23% year over year to $3.87 billion and surpassed the Zacks Consensus Estimate by 6.1%. Revenue growth was fueled by strong performance in Pharmacy Solutions and Provider Services, primarily driven by the Specialty and Infusion business and the Home Health Care business. Year to date, the company’s shares have gained 59.4% against the industry’s 1% fall. The broader S&P 500 Index has increased 9.4% in the same time frame. Image Source: Zacks Investment Research Pharmacy Solutions Revenues from this segment totaled $3.41 billion, up 22.1% year over year. Growth was driven by strong performance in Specialty and Infusion Pharmacy, supported by branded limited distribution drugs, new LDD launches, generic utilization, fee-for-service programs and solid commercial execution. Specialty and Infusion revenues increased 30.1% year over year to $2.87 billion. The business benefited from growth in specialty scripts, expansion of the LDD portfolio and higher contributions from hub and service programs. Specialty and Infusion prescription growth was 31%, with the company adding two ultra-narrow network limited distribution drugs during the quarter, bringing its portfolio to 155. It launched 12 limited distribution drugs in the first half, including four exclusive partnerships and eight ultra-narrow arrangements. Infusion recorded solid acute and chronic therapy volume growth, aided by operational initiatives and ongoing investments in capabilities and infrastructure. However, Home and Community revenues declined 8% year over year. The decrease reflected the impact of the Inflation Reduction Act, and the company stopped doing business with certain uneconomic customers. Despite the revenue pressure, operational improvements and technology investments supported year-over-year profitability growth. Provider Services Revenues totaled $466 million, up 30.3% year over year. Growth was primarily driven by Home Health Care, supported by higher average daily census, de novo expansion and contributions from the acquired Amedisys and LHC branches. Home Health Care revenues increased 50.5% year over year. Rehab Care revenues increased 11.9% on growth in persons served and hours billed, along with continued momentum in the Rehab in Motion program. Personal Care revenues improved 6.6% on higher hours billed and stable operations. Gross profit was $492.7 million, up 31.5% year over year. As a percentage of revenues, the gross margin was 12.7%, up 80 bps from the prior-year quarter’s figure. Selling, general and administrative expenses totaled $362.4 million, up 11.1% year over year. Operating income totaled $130.4 million, up 168.5% year over year. As a percentage of revenues, the operating margin was 3.4%, up 180 bps from the prior-year quarter’s figure. BrightSpring exited the second quarter with cash and cash equivalents of $550.4 million compared with $888.8 million in the previous quarter. Total assets decreased to $5.99 billion from $6.21 billion in the previous quarter. Cumulative net cash provided by operating activities during second-quarter 2026 was $166.9 million compared with $150.7 million in the year-ago period. BrightSpring Health Services, Inc. price-consensus-eps-surprise-chart | BrightSpring Health Services, Inc. Quote BrightSpring now expects 2026 revenues of $15.10 billion to $15.425 billion, up from the prior range of $14.725 billion to $15.225 billion. Pharmacy Solutions revenues are projected at $13.20 billion to $13.50 billion, while Provider Services revenues are expected to be between $1.90 billion and $1.925 billion. Adjusted EBITDA guidance increased to $820 million-$845 million from $795 million-$825 million. The company expects approximately $600 million in operating cash flow and year-end leverage below two times before potential acquisitions. The Zacks Consensus Estimate for its revenues and earnings is pegged at $15.01 billion and $1.71 per share, respectively. BrightSpring delivered another strong quarter, with second-quarter 2026 earnings and revenues surpassing estimates. Performance reflected broad-based growth across Pharmacy Solutions and Provider Services, along with solid operational execution. Adjusted EBITDA growth outpaced revenue growth, while margin expansion underscored the benefits of scale, favorable business mix and process improvements. BrightSpring continues to invest in automation, artificial intelligence and standardized operating processes to improve efficiency across hiring, onboarding, intake, documentation, medication reviews and patient care planning. The company is expanding its Lean Sigma program to institutionalize process improvement and support consistent execution across the organization. Management remains focused on expanding into adjacent markets, strengthening payer and provider relationships and increasing the use of preferred-provider arrangements. BTSG is laying the groundwork for greater participation in quality-based payment models while pursuing geographic expansion in infusion and other home- and community-based services. The company maintains an active acquisition pipeline focused on tuck-ins and geographic expansion, though management continues to emphasize valuation discipline and integration capabilities. However, reimbursement pressure remains a key challenge. The Inflation Reduction Act continues to weigh on pharmacy revenues, while future Medicare and Medicaid rate changes could affect provider operations. BrightSpring also faces execution risks related to acquisition integration, labor availability, payer contracting and the timing of returns from ongoing technology investments. BrightSpring currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader medical space are McKesson MCK, Phibro Animal Health PAHC and Cardinal Health CAH, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. McKesson has an estimated long-term growth rate of 13.7%. MCK’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.09%. McKesson’s shares have gained 4.3% compared with the industry’s 1.7% growth in the year-to-date period. Phibro Animal Health has an estimated long-term growth rate of 21.3%. PAHC’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 16.25%. Phibro Animal Health stock has lost 2.7% compared with the industry’s 18.1% decline in the year-to-date period. Cardinal Health has an estimated long-term growth rate of 17%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.27%. Cardinal Health’s shares have risen 11.9% compared with the industry’s 1.7% growth in the year-to-date period. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BrightSpring Health Services, Inc. (BTSG) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). 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In the second quarter of 2026, BrightSpring Health Services reported revenue of US$3.87 billion and net income of US$84.29 million, with earnings per share rising sharply versus a year earlier and six‑month results also materially higher. Alongside these results, the company raised its full‑year 2026 revenue guidance to a range of US$15.10 billion to US$15.43 billion, highlighting management confidence even as investors weigh what this means for profit margins and growth expectations. With BrightSpring lifting its 2026 revenue guidance after strong quarterly earnings, we’ll examine how this update affects its existing investment narrative. The latest GPUs need a type of rare earth metal called Neodymium and there are only 29 companies in the world exploring or producing it. Find the list for free. To own BrightSpring, you need to believe its home and community care and specialty pharmacy platform can translate strong top line momentum into durable, efficient earnings while managing reimbursement and leverage risks. The latest results support the near term catalyst of execution on growth, even as the sharp post earnings share price drop highlights how sensitive the stock is to concerns about profit margins and valuation. The biggest near term risk remains margin pressure from labor, reimbursement and financing costs. The most relevant recent announcement is BrightSpring’s decision to raise 2026 revenue guidance to US$15.10 billion to US$15.43 billion after its Q2 report. That uplift, following earlier guidance increases this year, ties directly into the current catalyst: whether the company can convert higher revenue into sustainable profitability without stretching its balance sheet further. How management balances growth investments, acquisition activity and debt reduction will be central to how this guidance is interpreted over time. Yet behind the strong revenue guide, one risk investors should be aware of is how higher volumes intersect with already tight margins and... Read the full narrative on BrightSpring Health Services (it's free!) BrightSpring Health Services’ narrative projects $20.6 billion revenue and $607.7 million earnings by 2029. Uncover how BrightSpring Health Services' forecasts yield a $59.60 fair value, in line with its current price. Before this earnings beat, the most optimistic analysts were already assuming roughly US$22.1 billion of revenue and about US$743 million of earnings by 2029, which is a much more aggressive path than the baseline view and could look either more achievable or more stretched once this latest guidance and margin debate are fully reflected in their models. Explore 5 other fair value estimates on BrightSpring Health Services - why the stock might be worth over 2x more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your BrightSpring Health Services research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. Our free BrightSpring Health Services research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate BrightSpring Health Services' overall financial health at a glance. Our daily scans reveal stocks with breakout potential. Don't miss this chance: Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. Outshine the giants: these 16 early-stage AI stocks could fund your retirement. Find 55 companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BTSG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a 44% year-over-year increase in adjusted EBITDA, fueled by scale advantages and disciplined operational execution across both Pharmacy and Provider segments. Specialty Pharmacy growth was underpinned by the expansion of the branded oncology Limited Distribution Drug (LDD) portfolio, adding 12 new LDDs in the first half of 2026. Provider Services growth of 30% was supported by strong demand in Home Health and the successful integration of acquired Amedisys and LHC branches. Management attributed margin expansion to the cumulative impact of Lean Sigma process improvements and the deployment of AI tools in clinical documentation and intake. Pharmacy Solutions benefited from a shift toward higher-value wraparound fee-for-service programs that support manufacturer partners and patient outcomes. The exit of certain uneconomic skilled nursing customers in the Home and Community Pharmacy business helped improve overall profitable growth despite lower volumes. Operational efficiency was bolstered by high clinician retention rates, which management described as being at 'best practice levels' due to targeted technology and training investments. Full-year 2026 adjusted EBITDA guidance was raised to a range of $820 million to $845 million, reflecting confidence in second-half momentum and acquisition synergies. Management expects to deliver approximately $600 million in annual operating cash flow, with leverage projected to fall below 2x by year-end before potential acquisitions. The company plans to expand its acute and chronic infusion footprint into 12 to 15 new states over the next five years to capture share in the fragmented $20 billion market. Future growth strategy includes leveraging existing oncology LDD capabilities to move into rare, orphan, and other complex therapeutic areas. Guidance assumes a continued quarterly revenue impact of approximately $45 million from Inflation Reduction Act (IRA) provisions for the remainder of 2026. The divestiture of the Community Living business was completed on March 30, 2026, resulting in a one-time cash tax payment of approximately $100 million. Debt was refinanced at a 50 basis points lower spread following credit rating upgrades from both S&P and Moody's. Management noted that while generic tariffs are a topic of industry discussion, they do not anticipate a material impact on the long-term growth algorithm. The company is actively evaluating its capital structure to support a five-year growth plan, including potential increases in M&A frequency for small tuck-in deals. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that the sequential margin decline from Q1 to Q2 was due to typical seasonality, noting that gross profit per script actually increased when normalized. Growth in fee-for-service wraparound programs has become a top-three contributor to Pharmacy margins. BrightSpring intends to leverage its existing sales force of 1,000 clinical liaisons to expand beyond oncology into rare and orphan therapies. While the rare disease market is smaller than oncology, management views it as a meaningful long-term contributor due to their established LDD infrastructure. EBITDA contribution expectations for these acquired branches were raised to $35 million for 2026 due to faster-than-expected integration of IT and HR systems. The company has successfully integrated the acquired Amedisys and LHC branches into its Home Health team, particularly within HR and IT systems. Management expects the 2027 IRA impact to be approximately 50% of the 2026 levels, as the largest drugs were addressed in the initial round. The company is actively working on regulatory advocacy and payer contract renegotiations to mitigate future impacts.

Interested in BrightSpring Health Services, Inc.? Here are five stocks we like better. BrightSpring exceeded its Q2 baseline expectations: Revenue rose 23% year over year to $3.9 billion, while adjusted EBITDA increased 44% to $206 million, lifting the margin to 5.3%. Pharmacy Solutions led performance with 22% revenue growth and 44% adjusted EBITDA growth, while Provider Services revenue rose 30%, supported by strong home-health growth and contributions from acquired Amedisys and LHC branches. The company reaffirmed its 2026 outlook for $15.1 billion-$15.425 billion in revenue and $820 million-$845 million in adjusted EBITDA. BrightSpring also reduced net debt by about $300 million, received credit-rating upgrades, and expects year-end leverage below 2 times. BrightSpring Health Services (NASDAQ:BTSG) reported second-quarter 2026 results that exceeded its baseline expectations, led by growth in its Pharmacy Solutions and Provider Services businesses, while reaffirming confidence in its updated full-year outlook. Chief Executive Officer Jon Rousseau said the company generated $3.9 billion in second-quarter revenue, up 23% from a year earlier, and adjusted EBITDA of $206 million, an increase of 44%. Adjusted EBITDA margin rose 80 basis points year over year to 5.3%. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now The company’s reported continuing-operations results exclude its community living business, which BrightSpring divested on March 30, 2026. Pharmacy Solutions revenue totaled $3.4 billion, rising 22% year over year, while adjusted EBITDA increased 44% to $180 million. The segment’s gross profit rose 28% to $298 million. → Microsoft Just Flipped the AI Spending Narrative Overnight Specialty and infusion revenue was $2.9 billion, up 30% from the prior-year quarter. Chief Financial Officer Jen Phipps said the performance reflected branded limited-distribution-drug, or LDD, growth and new launches, script growth, fee-for-service programs, generic drugs, acute infusion growth and commercial execution. Rousseau said specialty and infusion script growth reached 31%, while specialty pharmacy script growth was 32% year over year, according to management’s comments during the call. The company added two ultra-narrow-network LDDs during the quarter, bringing its total LDD portfolio to 155. Through the first half of 2026, it launched 12 LDDs, including four exclusive partnerships and eight ultra-narrow arrangements. → Carrier Earnings Could Send the Stock to a New All-Time High The company said it is expanding its specialty capabilities beyond oncology into rare, orphan and other complex therapies. Rousseau said BrightSpring’s existing clinical liaison organization and experience managing LDD programs provide a foundation for pursuing those opportunities. In infusion, Rousseau said acute-care volume rose more than 20% year over year and chronic infusion volume increased nearly 20%. The company sees room to expand its acute infusion business into another 12 to 15 states over the next five years, he said. Home and community pharmacy revenue declined 8% to $540 million. Phipps attributed the decrease to an approximately $50 million second-quarter impact from the Inflation Reduction Act, or IRA, as well as BrightSpring’s exits from certain uneconomic customers. The company expects IRA-related revenue impact in home and community pharmacy of about $45 million in each remaining quarter of 2026, for about $200 million for the full year. Despite those revenue pressures, management said home and community pharmacy EBITDA improved year over year, supported by operational improvements and technology investments. Provider Services revenue increased 30% from a year earlier to $466 million, with adjusted EBITDA rising 33% to $75 million. Segment adjusted EBITDA margin expanded approximately 30 basis points to 16.1%. Home healthcare revenue rose 51% to $278 million, driven by average daily census growth, de novo expansion and acquired Amedisys and LHC branches. Those acquired branches contributed approximately $78 million in revenue and $8 million in adjusted EBITDA during the quarter. BrightSpring now expects the acquired Amedisys and LHC assets to contribute approximately $35 million in adjusted EBITDA in 2026. Phipps said the company increased that expectation as integration progressed ahead of its prior assumptions. The company has moved its business lines and branches onto its home-based care system and is completing final integration steps, she said. Rehab care revenue increased 12% to $82 million, while personal care revenue grew 7% to $107 million. Rousseau said personal care growth was supported by hours served that remained above industry growth levels. He also said clinician retention metrics have improved each year and are at what the company considers best-practice levels. The company cited quality measures including a 99% timely initiation-of-care rate in home health, an 89% overall hospice rating under the Consumer Assessment of Healthcare Providers and Systems survey, rehab patient satisfaction above 97%, and personal-care client satisfaction of 4.6 out of five. BrightSpring reported $44 million in operating cash flow for the quarter. Excluding a roughly $100 million one-time cash tax payment related to the community living sale, operating cash flow was $144 million. Net debt was approximately $1.7 billion as of June 30, and the company’s leverage ratio was 2.15 times. BrightSpring repaid about $300 million of its term loan during the quarter using proceeds from the community living transaction and repriced the loan to SOFR plus 200 basis points, compared with SOFR plus 325 basis points at the time of its initial public offering. Moody’s upgraded BrightSpring’s rating to Ba3 from B1, while S&P upgraded its issuer credit rating to BB- from B+. Management said the company expects to end 2026 with leverage below 2 times before potential acquisitions. Rousseau said BrightSpring has a substantial acquisition pipeline and signed several small tuck-in and geographic-expansion transactions during the prior quarter. He said the company remains disciplined on valuations and primarily targets tuck-in acquisitions and adjacent markets where it can apply operational capabilities and synergies. For 2026, BrightSpring expects total revenue of $15.1 billion to $15.425 billion, representing growth of 17.0% to 19.5% over 2025 after excluding community living in both periods. Pharmacy Solutions revenue is expected to range from $13.2 billion to $13.5 billion. Provider Services revenue is expected to range from $1.9 billion to $1.925 billion. Total adjusted EBITDA is expected to be $820 million to $845 million, representing growth of 32.8% to 36.8% over 2025 on a comparable basis. Operating cash flow is expected to be approximately $600 million, excluding community-living-related cash flow effects. Phipps said BrightSpring expects sequential adjusted EBITDA growth in both the third and fourth quarters, though the company will be comparing against a strong second half in 2025. Rousseau said management remains optimistic about the company’s position entering the second half of the year, citing broad-based operating momentum, ongoing technology and automation investments, and continued growth opportunities across its healthcare markets. BrightSpring Health Services (NASDAQ: BTSG) is a leading provider of home and community-based care and workforce solutions aimed at seniors, individuals with disabilities and those facing behavioral health challenges. The company's operations encompass a broad spectrum of services, including personal care, skilled nursing, therapy, habilitation and supported living, as well as specialized behavioral health programs delivered through both clinical and non-clinical channels. Through its network of subsidiary brands, BrightSpring offers integrated care in the patient's home environment, fostering independence and improving quality of life. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "BrightSpring Health Services Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

LOUISVILLE, Ky., July 31, 2026 (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 second quarter ended June 30, 2026, and increased full year 2026 Revenue and Adjusted EBITDA1 guidance. Second Quarter 2026 Financial Highlights(note: On March 30, 2026, BrightSpring completed the divestiture of the Community Living business and as such, all financial results provided pertain to continuing operations) Net revenue of $3,873 million, up 23.0% compared to $3,148 million in the second quarter of 2025 Gross profit of $493 million, up 31.5% compared to $375 million in the second quarter of 2025 Net income of $87 million compared to $9 million in the second quarter of 2025 Adjusted EBITDA1 of $206 million, up 44.2% compared to $143 million in the second quarter of 2025 Leverage of 2.15x as of June 30, 2026, compared to leverage of 2.27x on March 31, 2026 $300.0M paydown and concurrent modification of the First Lien Facility, including interest rate refinancings that resulted in interest savings Completion of an underwritten secondary offering of common stock by affiliates of Kohlberg Kravis Roberts & Co. L.P. and certain members of management in June 2026, and a concurrent $60.0 million repurchase of 1,026,465 shares of common stock from the underwriter "We are pleased with the Company’s second quarter results that reflect our quality focus, service level performance, and dedication to the patients we serve," said Jon Rousseau, Chairman, President, and Chief Executive Officer of BrightSpring. "We remain grounded in disciplined operational execution and delivering high-quality and effective care. Our service lines have significant long-term opportunity to better address the needs of all healthcare stakeholders, and we remain committed to innovation and leadership in our industry to impact more patients in the future." 1Adjusted EBITDA is a non-GAAP financial measure. Please see “Non-GAAP Financial Information” at the end of this press release for a reconciliation of Adjusted EBITDA to net income from continuing operations, the most directly comparable financial measure prepared in accordance with GAAP. Key Financials3 *n.m.: not meaningful Business Metrics 1 Adjusted 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 from continuing operations, the most directly comparable financial measure prepared in accordance with GAAP. 3 Financial tables may not foot due to rounding. Full Year 2026 Financial Guidance For the full year 2026, BrightSpring is increasing Revenue and Adjusted EBITDA 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 2025 Revenue and Adjusted EBITDA results, excluding the Community Living business: Revenues of $15,100 million to $15,425 million, or 17.0% to 19.5% growth Total Adjusted EBITDA4 of $820 million to $845 million, or 32.8% to 36.8% growth The Amedisys and LHC branches acquisition is expected to contribute approximately $35 million in Adjusted EBITDA in 2026 4 A reconciliation of the foregoing guidance for the non-GAAP metric of Adjusted EBITDA to GAAP net income 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 The Company will host a conference call today, July 31st 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 information on the second quarter 2026 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 health solutions for medically complex populations in need of specialized and/or chronic care. Through the Company’s service lines, including pharmacy, home health care, and rehabilitation, we provide comprehensive and more integrated care and clinical solutions in all 50 states to over 485,000 customers, clients and patients daily. BrightSpring has consistently demonstrated strong and industry-leading quality metrics across its services lines, while improving the health and quality of life for high-need individuals and reducing overall healthcare system costs. 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, divestitures and other significant transactions and strategic initiatives; 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; our inability to adequately protect our intellectual property rights; risks related to our compliance with our regulatory framework; the significant interests of KKR Stockholder may conflict with our stockholders’ interests in the future; our substantial indebtedness; significant 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, including impacts on imported drug products, which could result in supply chain disruptions and significant increases in costs; and fluctuations in the amount and frequency of repurchases of our common stock. 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,” “Adjusted EBITDA,” and “Adjusted EPS,” 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, Adjusted EBITDA, and Adjusted EPS 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, Adjusted EBITDA, and Adjusted EPS 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, Adjusted EBITDA, and Adjusted EPS are non-GAAP measures of our financial performance and should not be considered as an alternative to net income 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 from continuing operations before income tax expense, 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, and restructuring and divestiture-related and other costs. 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, CFASVP, Strategic Finance & Investor RelationsExecutive Director, BrightSpring Health [email protected] Media Contact:Leigh WhiteVice President, Communications & [email protected] (1) Represents non-cash share-based compensation to certain members of our management and full-time employees. (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. (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. For all periods presented, the income tax impact on adjustments is inclusive of a discrete tax benefit related to share-based compensation.

This article first appeared on GuruFocus. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. BrightSpring Health Services Inc (NASDAQ:BTSG) delivered strong Q2 2026 results with total revenue of $3.9 billion, up 23% year-over-year, and adjusted EBITDA of $206 million, up 44% year-over-year, exceeding baseline expectations. The company's Pharmacy Solutions segment saw robust growth, with specialty and infusion revenue up 30% and script growth of 31%, driven by a strong branded oncology LDD portfolio and expansion into rare, orphan, and other complex therapies. Provider Services revenue grew 30% year-over-year, with home health care performing well due to volume growth above industry levels, de novo investments, and successful integration of Amedisys and LHC branches, now expected to contribute approximately $35 million in EBITDA for 2026. The company reduced its leverage to 2.15 times as of June 30, 2026, received credit rating upgrades from both S&P and Moody's, and refinanced its debt at a 50 basis points lower spread, improving its financial flexibility. BrightSpring Health Services Inc (NASDAQ:BTSG) raised its full-year 2026 adjusted EBITDA guidance to $820 million to $845 million, reflecting 32.8% to 36.8% growth, and expects approximately $600 million of operating cash flow for the year. The company continues to demonstrate industry-leading quality metrics across its businesses, including 99% timely initiation of care in home health, 99.98% dispensing accuracy in pharmacy, and high patient satisfaction scores, underpinning its value proposition. Home and community pharmacy revenue declined 8% year-over-year due to an approximate $50 million impact from the IRA and the exit of certain uneconomic skilled nursing customers, with a total expected revenue impact of approximately $200 million for 2026. The company faces ongoing headwinds from the IRA, with an expected $175 million revenue impact in specialty and infusion for the year, and anticipates a 2027 impact in home and community pharmacy that is about 50% of the 2026 level. Corporate expenses increased in the quarter due to investments in key hires, AI, and automation technology projects, which may pressure near-term profitability before benefits are realized later in the year or early next year. Gross margin in the pharmacy segment decreased sequentially by 70 basis points from Q1 to Q2, although the company attributes this to typical seasonality and notes that gross profit per script was up when normalized. The company remains disciplined in M&A but faces a competitive environment with some valuations reaching over 20 times EBITDA, which could limit the pace of accretive acquisitions despite a robust pipeline. Potential future tariffs on generic drugs, while pushed to 2028, remain a source of uncertainty, though the company notes it has flexibility in purchasing contracts and does not view it as a significant long-term concern. Warning! GuruFocus has detected 7 Warning Signs with BTSG. Is BTSG fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an update on the ramp of Limited Distribution Drugs (LDDs) in the back half of the year, the potential for direct-to-asset launches, and how we should think about EBITDA seasonality in Q3 and Q4?A: John Rousseau (CEO): We remain highly enthusiastic about the business, having already won 12 LDDs this year. We are leveraging our capabilities beyond oncology into other therapeutic areas, with some of our most exciting wins now coming from outside oncology. While we cannot discuss specific drugs, we are leveraging our operational capabilities, customer satisfaction feedback, and wraparound services to secure partnerships. Jen Phipps (CFO) added that they expect continued quarter-over-quarter growth in the second half of 2026, with Q3 and Q4 growth being very similar to each other, despite lapping a strong second half last year. Q: What is driving the strong gross profit per script growth, and can you provide more context on the fee-for-service (hub) revenue contribution and its importance to growth?A: John Rousseau (CEO): Changes in gross profit margin are always a function of mix across our businesses. As we layer on more fee-for-service business, which is now offered in every launch, it has become a meaningful contributor to marginlikely a top three or top four driver. This includes services like patient contact centers, nursing services, 3PL, and data analytics that we provide to manufacturing partners, which are increasingly important for real-time visibility and optimal patient outcomes. Q: Can you parse out the growth in the infusion business between chronic and acute segments, and discuss the momentum and investments in the chronic infusion side?A: John Rousseau (CEO): We remain very positive on the infusion market, which is a $20 billion market that is still fragmented. Acute volume grew over 20% year-over-year, which is seven to eight times the market growth rate. We plan to expand into 12 to 15 additional states over the next five years. On the chronic side, volume growth was close to 20% year-over-year. We have rolled out white-glove concierge programs for therapies like IG, which have noticeably increased conversion rates. We are also investing in AI for intake processes, making key hires, and integrating the business more closely with our Pharmacy for America operations to leverage scale. Q: What is the current status of the IRA impact on the pharmacy business, and what are the expectations for 2027?A: Jen Phipps (CFO): The IRA impact for Home and Community pharmacy is now expected to be approximately $200 million for the full year 2026, with an EBITDA impact of about $15 million. For Specialty and Infusion, the revenue headwind remains around $175 million with no significant EBITDA impact. For 2027, we estimate the impact on Home and Community will be about 50% of the 2026 level. John Rousseau (CEO) added that they are working to mitigate the impact through operational execution, technology, and automation, and are optimistic about the business's prospects despite the legislative headwinds. Q: Can you discuss the company's capital structure strategy, the M&A pipeline, and how the balance sheet position enables future growth?A: Jen Phipps (CFO): We are proud of our balance sheet progress, with leverage at 2.15 times at the end of Q2. We received ratings upgrades from Moody's and S&P and repriced our term loan at a lower spread. This position gives us significant flexibility to lean into M&A. John Rousseau (CEO) added that they are considering adding to their M&A team. The focus remains on tuck-in acquisitions and geographic expansions where they can apply operational capabilities and synergies. While the pipeline is robust, they remain disciplined, especially as some valuations in the market are reaching 20 times EBITDA. They expect to generate over $600 million in operating cash flow this year, providing ample firepower for deals. Q: Can you explain the drivers behind the increased EBITDA expectation for the Amedisys and LHC Group assets, and how the integration is progressing?A: Jen Phipps (CFO): The integration has gone very well. We initially planned for a slower ramp to allow the team time for integration work. As of today, all business lines and branches are on our home care home-based system. We are working through the final steps of integration and feel more confident in the ability to increase the guidance to approximately $35 million in EBITDA contribution for 2026. John Rousseau (CEO) added that integration has gone extremely well and volume is moving up under our ownership. Q: How are the company's selling efforts evolving, particularly with acute care IDNs and health plans, and what is the value proposition?A: John Rousseau (CEO): Our fundamental value proposition is to be a leading partner delivering high-quality services to payers, hospital systems, and ACOs, particularly in the first 30 to 60 days post-discharge to reduce unnecessary readmissions. This focus has driven growth rates well above industry averages. We have nearly 1,000 clinical liaisons across our service lines in doctor offices and hospital systems daily. We are seeing more opportunities to formalize post-discharge programs and enter into preferred agreements, which has been a key part of our volume growth. Q: What is driving the record-high retention in the home and community pharmacy business, and how much more opportunity is there to push it higher?A: John Rousseau (CEO): Retention is driven by three fundamental things: continued investment in compensation and benefits to attract and retain top talent, technology and process improvements to make jobs more efficient and reduce administrative headaches, and significant investment in training and career development programs. We also focus on creating a mission-driven culture where people feel respected and valued. As we grow, we continue to invest more in these areas, which should drive retention even higher. Q: Can you provide an update on the rare and orphan drug opportunity relative to oncology, and what investments are needed in the sales force?A: John Rousseau (CEO): We are leveraging our existing sales force of several hundred clinical liaisons who work across thousands of prescriber offices. Unlike some niche companies that focus only on rare and orphan drugs and lack a sales force, we have 155 LDD programs and 15 years of experience. We are supporting quite a few therapies outside of oncology and have had noteworthy wins in the last six months. While the rare and orphan market is not as large as oncology, it is sizable and a meaningful strategic growth area for us. Q For the complete transcript of the earnings call, please refer to the full earnings call transcript.