GRDN

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 4:30 p.m. ET Vice President, Investor Relations - Ashley Stockton President and Chief Executive Officer - Fred Burke Chief Operating Officer - David Morris Chief Financial Officer - Will Mudd Operator: Hello, everyone. Thank you for joining us, and welcome to Guardian Pharmacy's Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the call over to Ashley Stockton, Investor Relations. Please go ahead. Ashley Stockton: Good afternoon. Thank you for participating in today's conference call. This is Ashley Stockton, Vice President, Investor Relations for Guardian Pharmacy Services. I'm joined on today's call by Fred Burke, President and Chief Executive Officer; David Morris, Chief Operating Officer; and Will Mudd, Chief Financial Officer. After the close today, Guardian posted its financial results for the quarter ended June 30, 2026. A copy of the press release 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 and market conditions. Such forward-looking statements are not guarantees of future performance and 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 quarterly report on Form 10-Q as well as the specific risk factors and uncertainties discussed in our annual report on Form 10-K. We do not undertake any duty to update any forward-looking statements, which speak only as of the date they are made. On today's call, we also will use certain non-GAAP financial measures when discussing the company's financial performance and condition. You can find additional information on these non-GAAP measures and reconciliations to their most directly comparable GAAP financial measures in today's press release, which again is available on our Investor Relations website. And now I will turn it over to Fred for high-level commentary. Fred Burke: Thank you, Ashley, and good afternoon, everyone. We appreciate you joining us today to review Guardian's second quarter results. But before David and Will review the second quarter in detail, I would like to begin with some perspective on our performance through the first half of 2026 and our outlook for the remainder of the year. Guardian continues to execute well, supported by solid fundamentals across our local markets and meaningful progress against our strategic priorities, including continued geographic expansion. Through the first half of 2026, reported revenue grew 2%. Absent the IRA pricing reductions, revenue would have increased low double digits, a clearer indication of the underlying growth of the business. Importantly, we have successfully mitigated the profitability impact of the changing reimbursement environment under the IRA through disciplined execution across the business, enabling us to generate adjusted EBITDA growth of 23% during the first half of 2026 compared with the first half of 2025. Based on our year-to-date performance and current expectations for the balance of the year, we are raising our full year 2026 outlook. We now expect revenue of $1.43 billion to $1.45 billion and adjusted EBITDA of $129 million to $131 million. As we move through the remainder of the year, our priorities remain consistent, delivering outstanding service to the residents and communities we support, expanding our platform in attractive markets, investing in the clinical and operational capabilities that strengthen our value proposition and maintaining the financial discipline that has long been a hallmark of our model. Supporting those priorities requires an organizational structure and leadership team capable of managing the scale of the business today while positioning for growth ahead. At the broader corporate level, in June, we took an important step in the evolution of our company with the appointment of David Morris as Chief Operating Officer. David assumed this role after serving as Guardian's Chief Financial Officer since inception. He has played a central role in building this company and has helped shape our strategy, financial discipline and operating model. He knows our business, our pharmacy leaders and our local markets extremely well. Moving into the broader COO role gives David the opportunity to apply his experience more directly to our operations and sales organizations. The new field operations leadership team we put in place earlier this year to help advance operational excellence now reports to David. He will discuss this new structure in greater detail. With David moving into the COO role, we are pleased to have appointed Will Mudd as Chief Financial Officer. Will joined Guardian in 2012 and has worked closely with David for more than a decade. During that time, he has taken on increasing responsibility across the organization and has played an important role in building and scaling the financial infrastructure that supported Guardian's growth and our transition to becoming a public company. His appointment is a natural progression and reflects our confidence in his ability to lead the finance organization through Guardian's next phase of growth. These transitions demonstrate the depth of talent we have developed within Guardian, the strength of our succession planning process and our commitment to creating opportunities for leaders to grow within the organization. Alongside these changes, Kendall Forbes, a co-founder and long-term business partner who played an important role in Guardian's development, has retired. We are grateful for his many contributions to Guardian over the years and wish him all the best in his next chapter. Lastly, I want to briefly address the upcoming conversion of the final tranche of our Class B common stock into Class A common stock, which will occur in late September and represents approximately 13.5 million shares. Following that conversion, we expect between 35 million to 37 million shares of Class A common stock will be held collectively by employees, members of management and directors, including shares they hold today. Nearly all those shares are subject to a closed window trading restriction until the next open trading window following our third quarter earnings release, which is currently expected in early to mid-November. The management and directors who hold the substantial majority of shares remain committed to taking a measured and prudent approach to liquidity over time to ensure a structured and orderly process with minimal market disruption. With that, I will turn the call over to David, who will provide additional perspective on our operations. David Morris: Thanks, Fred. I'm pleased to report that we delivered another solid quarter. Will plans to review our financial results in greater detail, but I would like to provide some operating context and discuss the progress we are making to strengthen Guardian's infrastructure as we scale. Our clinical capabilities remain an important part of our value proposition and support our ability to drive top line growth. Through the first half of the year, our clinicians have served over 300,000 residents. Across this population, our pharmacy teams have completed more than 50,000 clinical interventions affecting over 45,000 residents. As an example, we identified approximately 4,000 allergy risks and 5,000 instances of potentially duplicate drug therapies. These interventions help reduce medication-related risk for our facility partners and more importantly, help prevent adverse health outcomes across the resident population. We're also advancing several new clinical initiatives and are highly encouraged by the progress we are seeing. One example is our falls risk program, which we are expanding to additional facilities for further evaluation. Early data has shown meaningful improvement in outcomes, and we are encouraged by the opportunity to assess the program across a broader resident population and data set. Turning to profitability. We continue to translate strong top line performance into bottom line growth. As we scale, we are benefiting from increased purchasing leverage, improved labor productivity and greater efficiency across our support infrastructure. While we expect these benefits to continue, we also recognize the importance of investing in the leadership, systems and infrastructure necessary to support our future growth and we'll do so as necessary. The strength of our operating performance is also supporting solid cash generation. Beyond our capital expenditure needs, we continue to view M&A and greenfield start-ups as a highly attractive use of capital and an important driver of incremental growth. Consistent with that strategy, subsequent to quarter end, we announced the acquisition of Wellness Concepts, a long-term care pharmacy based in the Shenandoah Valley of Virginia. This pharmacy adds a service-oriented team with a strong reputation for quality in the communities it serves. While it was smaller in size, it was very much in line with the type of pharmacy we look to add to our platform. Additionally, we launched a new greenfield pharmacy in Lexington, Kentucky, marking our first location in that state. Lexington is the fourth greenfield pharmacy developed by the team that joined Guardian through our Middle Tennessee acquisition in 2009. The launch is a collaborative effort between our Tennessee and Cincinnati pharmacies and demonstrates how acquired talent and local market expertise can come together to support continued growth. This effort is being led by David Brown, one of our newly appointed Senior Vice President, Regional leaders. That brings me to one of our most important organizational initiatives in recent years, the implementation of our new regional leadership structure. To enhance our organization, we have appointed 8 regional Senior Vice Presidents from within the company to provide leadership across our national footprint. These are some of our strongest and most experienced operators who have a proven track record. They understand our pharmacy teams, our customers and the markets in which we operate. The objective is to bring greater consistency, accountability and support to our local pharmacies while preserving the entrepreneurial culture and local decision-making that have always distinguished Guardian. Our regional leaders will help pharmacies share best practices, develop and mentor local management teams and identify opportunities to operate more efficiently and effectively. They will also play a central role in strengthening 2-way communication between our pharmacies and support organization. This includes translating company-wide priorities into action at the local level while ensuring that the experience and perspective of our local operators help inform broader strategic decisions. While the COO role is new for me, I have worked closely with our pharmacies and these regional leaders since Guardian's earliest days. I look forward to deepening those relationships and working alongside them to strengthen execution throughout the organization. I'll now turn it over to Will for a review of the quarter. Will Mudd: Thank you, David, and good afternoon, everyone. I'm pleased to be speaking with you today in my first earnings call as Chief Financial Officer. I've had the privilege of working closely with David, Fred and the finance organization for many years, and I'm excited to continue supporting the company's growth with the same financial discipline and operational focus that have helped define Guardian's success. I'll now walk through our second quarter results in more detail and provide additional context around our outlook for the remainder of this year. Residents served at quarter end were over 210,000, up high single digit year-over-year, reflecting continued growth across our facility base, increased adoption rates and continued contributions from M&A. Script volumes also increased high single digits year-over-year. Reported revenue for the quarter was $351.2 million, up 2% year-over-year. Absent IRA-related pricing reductions, revenue would have been up low double digits year-over-year in the quarter. Revenue growth benefited from organic growth, M&A, higher resident acuity and our continued plan optimization efforts. We also saw favorable product and payer mix, both of which we expect to remain supportive through the end of the year. These factors benefited gross profit, which increased to $80 million in the quarter, up 18% year-over-year with a gross margin of 22.8%. We delivered this improvement despite continued pressure from higher fuel costs. SG&A was $56.5 million and represented 16.9% of revenues in the quarter, in line with our expectation. As we highlighted last quarter, we reached a settlement in a payer dispute that resulted in an $8.5 million cash payment, which was recognized as other income in the second quarter. Because the settlement payment is not reflective of our ongoing operating performance, it has been excluded from adjusted EBITDA. Importantly, the resolution also helped establish a stronger, mutually beneficial relationship with the payer, which was our objective from the onset. Stock-based compensation was $2.9 million in the quarter and should remain near this level on a quarterly basis for the balance of the year. Adjusted EBITDA was $29.7 million, representing 19% year-over-year growth and an adjusted EBITDA margin of 8.4%. We achieved this margin while continuing to absorb dilution from the acquisitions and greenfield startups completed in 2024 and 2025. These locations remain below our corporate margin and reduced consolidated margin by approximately 60 basis points during the quarter compared with 80 basis points in the first quarter, demonstrating continued progress in bringing the group closer to our consolidated margin. The effective tax rate for the quarter was 26%, in line with our expectations. Net income is $22.1 million, inclusive of the previously mentioned $8.5 million settlement compared to $8.8 million in the year ago quarter. Turning to the balance sheet. We ended the quarter with cash of close to $90 million, up from approximately $65 million in the prior quarter. Importantly, cash conversion returned to a more normalized level following a onetime working capital reset associated with the implementation of the IRA in the first quarter. As Fred noted, based on our first half performance and current expectations for the remainder of the year, we are raising our full year 2026 guidance. We now expect revenue in the range of $1.43 billion to $1.45 billion, up from $1.4 billion to $1.42 billion. Our adjusted EBITDA range goes to $129 million to $131 million, up from $123 million to $127 million. As we have historically stated, our outlook does not include any contribution from future acquisitions. However, we will continue to actively pursue business development opportunities consistent with our approach in prior years. With the larger acquisitions completed in the prior year now fully lapped, second half forecasted revenue growth will be driven primarily by organic performance with a modest contribution from the two smaller acquisitions thus far in 2026. As such, absent the IRA pricing reductions, we expect underlying revenue growth to remain in the high single digits. Reported revenue, however, in the second half of the year is expected to decline year-over-year by a low single-digit percentage, reflecting the continued impact of the IRA-related pricing reductions. We expect our adjusted EBITDA margin to remain relatively stable in the third quarter, followed by a typical seasonal increase in the fourth quarter associated with vaccine activity. With that, I'll turn it back over to Fred for closing comments. Fred Burke: Thank you, Will. Again, we are very pleased with our performance through the first half of 2026 and with the continued execution across the organization, particularly in managing the impact of the IRA-related pricing environment. We will continue to focus on driving profitable growth across our existing markets, expanding through greenfield development and pursuing disciplined M&A. We have a strong and experienced leadership team in place to execute against these priorities with continuity, accountability and operating focus as we continue to scale the business. Combined with our strong balance sheet and meaningful financial flexibility, these capabilities position Guardian to build on the momentum we have established. As always, I want to thank our teams throughout Guardian. Their commitment to our residents, our facility partners and one another is what makes Guardian such a special organization. Operator, we'll now open the line for questions. Operator: [Operator Instructions] Your first question comes from the line of Brian Tanquilut with Jefferies. Brian Tanquilut: Congrats on the first strong quarter. Maybe before I forgot, David, Will, congrats also on the promotion. Maybe, Fred, when I think about the M&A and the greenfields that were announced in the press release here, just thinking about how you're thinking of the ramp process or ramp phase and how long that will take for those specific assets to get to company averages? And then if you can share with us your thoughts or some visibility into the pipeline for both greenfields and M&A for the rest of the year and into next year. Fred Burke: Thank you very much, Brian. I appreciate you joining and in answer to your question. We have a very robust pipeline, as David mentioned, both for greenfields and for new M&A activity. We've always said that it takes us roughly 4 years to bring these new locations up to the corporate average profitability, some quicker, some may be a little longer depending on what has to be done. So in terms of these two particular, I would forecast that it will be about normal. Brian Tanquilut: Got you. Okay. And then maybe shifting gears, just as I think about the IRA, there are obviously a new set of drugs coming under the IRA pricing changes in 2028. I think Trulicity and Rexulti are a couple of drugs in mind. But how do we think about what that does to you guys? Or have the PBM arrangements been addressed to where future changes from the IRA are already covered? Fred Burke: We will suffer the revenue decline associated with the price reduction, but this next tranche represents about 40%. Am I right, David, about 40% of the 2026 tranche? So the impact -- revenue impact is going to be less in '27 than it was in '26. On the EBITDA side, yes, we are comfortable that we've mitigated the margin impact. Operator: Your next question from the line of Raj Kumar with Stephens. Raj Kumar: David, Will, congrats on the new roles. Maybe I want to follow up on. So I think you called out it's now a 40% relative to the 2026 impact for IRA. I think last quarter, you had called out it being 50%. So there's a 10-point improvement there. So curious on what's driving that differential and what underlying operational improvements or PBM payer contracting improvements have taken place since then to kind of drive that conviction? Fred Burke: Raj, the revenue impact is yet to be definitively analyzed because we don't yet have the specific drug. So we're just guesstimating at this point based on the relative volume of the '27 tranche relative to the '26 tranche. So somewhere in that range that is what it will be, but we'll know here pretty soon. Raj Kumar: Okay. Got it. And then kind of thinking, David, maybe more specifically to you on some of the kind of initiatives you called out. I guess kind of as you think about maybe kind of mobilizing it and kind of putting it into more of an illustrative manner for the payers and the PBM partners, kind of, what are some of the milestones and kind of ways do you kind of foresee kind of playing into the longer-term outcome for kind of all of these clinical capabilities that you called out? David Morris: Raj, that's something that we've talked about in the past few years. It's been ongoing, and we set out probably 5 years ago with a very intensive education process with all of our payers to make sure they understood the value that we bring to the equation for these frail residents and for the ultimate health plans themselves. But more near term, we've talked about our falls risk program, and it continues to make great progress. Our sample size is relatively small, but we've seen meaningful reductions in the fall-related risk metrics. And we'll be providing more detail as we continue to roll out this plan and we have more representative data to talk about. Operator: Your next question from the line of Parker Snure with Raymond James. Parker Snure: Just wanted to ask on the regional leadership structure changes. Just is this going to create any changes just in how you operate on a day-to-day basis? And what capabilities or strengths do you think that this will add to the overall enterprise? David Morris: There will be gradual changes. But as we talked about in the opening comments, these are leaders that have been with us probably 15-plus years on average. They've run very strong businesses, grown regions prior to the reorg. And yes, they will be able to provide more guidance and assistance and insight into some of our local presidents, some that have been with us for a while, some that are new through our M&A activity, and I think we will heavily strengthen the organization as we prepare it for continued growth. So we think it will be a very positive impact. And it's early on, but are already starting to see some impact. Parker Snure: Okay. Great. And if I can just get one follow-up. Just on capital deployment. You have $90 million of cash on your balance sheet, no debt, strong free cash flow, relatively low CapEx. Just outside of M&A, how are you thinking about potential capital deployment, maybe potential shareholder returns? Or do you want to remain flexible? Fred Burke: Thank you for that. It's a very positive problem to deal with. And yes, our main focus is to deploy cash on acquisitions and greenfield start-ups because it leverages our business so well. Also, at this point, we want to maintain dry powder until we know for certain what happens with the Omnicare assets in case there's any opportunity there. Well, of course, as we move through, we'll reassess but are exploring all options. Operator: [Operator Instructions] Our next question from the line of Allen Lutz of Bank of America. Allen Lutz: Fred, I want to follow up on that last comment you made around Omnicare and keeping some dry powder available. I know it's a difficult subject to opine on, but what are the range of outcomes for you that we should be thinking about related to that process as we think about the remainder of the year? And can you just remind us, is any impact from Omnicare and sort of the fallout there reflected in the 2026 guide? Fred Burke: Good question. I wish I could answer it definitively, but I cannot. The deal has not closed, at least not that we're aware of. And until it does, I don't know that we can really engage in any further conversations. There may or may not be interest on their part, but we're prudently standing by in case that they may seek to divest some of their assets. Certainly, we view it as an organic growth opportunity. But at the moment, since we're in somewhat of a standstill mode, we have not incorporated any of that into our guidance. Operator: Your next question from the line of Grayson McAlister with Truist. Grayson Joshua McAlister: This is Grayson on for Dave. I just wanted to extend my congratulations to Will and David as well. I wanted to go back to the Lexington greenfield. Obviously, it fits in pretty nicely between your Tennessee and Cincinnati pharmacies. And I'd imagine you're already serving some clients in the state. So could you just talk a little bit about the thought process that goes behind that greenfield? And then any benefit that you get in the state just from serving some of the same clients or leveraging capabilities through some of your more legacy pharmacies? David Morris: Grayson, great question. If you look at the map, you can see that obviously, we're not in Kentucky. I mentioned this marks our first location there, but we have locations in proximity. We're currently serving business in Kentucky from some of our other facilities. And I think this is a perfect example of a contiguous expansion with existing team. So this is what we seek to do as there's enough business in an area to launch a bricks-and-mortar site. And yes, there will be assistance from existing Guardian pharmacies, be it Columbus, Ohio or other surrounding pharmacies to help launch this business and support it as it comes up to scale. Operator: There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Guardian Pharmacy 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 Guardian Pharmacy 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. Guardian Pharmacy Services (GRDN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Guardian Pharmacy Services (GRDN) reported second quarter 2026 results on 6 August with higher net income versus a year earlier and updated full year guidance that points to higher expected revenue and adjusted EBITDA. Management linked the guidance change to underlying growth drivers, including mitigation of Inflation Reduction Act pricing pressures, recent acquisitions, new pharmacy openings, and a revised regional leadership structure that is now in place. See our latest analysis for Guardian Pharmacy Services. The upbeat earnings and guidance shift have fed directly into Guardian Pharmacy Services’ recent momentum, with a 1-day share price return of 11.05% and a year-to-date share price return of 48.43%. The 1-year total shareholder return of 119.48% highlights how strongly sentiment has turned over a longer horizon. If Guardian Pharmacy Services’ move has caught your attention, this can be a useful moment to see what else is gaining traction in the market. Investors looking beyond healthcare can use our screener to surface 19 top founder-led companies Guardian Pharmacy Services’ recent upswing could reflect investors finally focusing on stronger earnings, or it could be sentiment running ahead of itself after a hot streak. How does the current valuation stack up against that backdrop? Guardian Pharmacy Services is trading at $43.83, compared with a widely followed narrative fair value of $47 that uses a detailed long term cash flow view. Read the complete narrative. Read the complete narrative. Curious how that growth story translates into $47 per share? The narrative leans on measured revenue expansion, firmer margins and a rich future earnings multiple. The mix matters. Result: Fair Value of $47 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Guardian Pharmacy Services’ story can change quickly if reimbursement terms tighten, or if acquisitions and new locations take longer than planned to reach target profitability. Find out about the key risks to this Guardian Pharmacy Services narrative. On earnings and cash flows, Guardian Pharmacy Services screens cheaply. The SWS DCF model points to a fair value of $62.09 per share, compared with the current $43.83 price. That still flags the stock as undervalued, although any DCF result depends heavily on long term cash flow assumptions. How much weight do you put on that kind of model? Look into how the SWS DCF model arrives at its fair value. Does the current Guardian Pharmacy Services story look too optimistic or not optimistic enough to you? Act quickly, review the data points that matter, and weigh them against the 3 key rewards. If Guardian Pharmacy Services has sharpened your focus, do not stop here. Use the Simply Wall St screener to quickly spot other opportunities that could fit your approach. Target potential mispricing by scanning companies that look cheap on quality and value using the 52 high quality undervalued stocks. Strengthen your income watchlist by reviewing companies with higher yields and resilience through the 8 dividend fortresses. Prioritise capital protection by focusing on companies that score well on financial strength via the solid balance sheet and fundamentals stocks screener (48 results). 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 GRDN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Guardian Pharmacy Services, Inc.? Here are five stocks we like better. Guardian reported solid Q2 operating growth: Revenue rose 2% year over year to $351.2 million, while adjusted EBITDA increased 19% to $29.7 million. Gross profit climbed 18% and net income rose to $22.1 million, helped in part by an $8.5 million payer-dispute settlement. The company raised its 2026 outlook to revenue of $1.43 billion–$1.45 billion and adjusted EBITDA of $129 million–$131 million, citing strong underlying growth despite continued Inflation Reduction Act pricing pressure. Guardian is expanding through acquisitions, new pharmacy locations and clinical programs, while strengthening its leadership structure. The company ended the quarter with nearly $90 million in cash and remains focused on acquisitions and greenfield investments. 5 Small-Cap Stocks With Impressive Growth and Upside Potential Guardian Pharmacy Services (NYSE:GRDN) reported second-quarter revenue growth of 2% year over year to $351.2 million, while adjusted EBITDA increased 19% to $29.7 million, as the company said it continued to offset profitability pressure from Inflation Reduction Act-related drug pricing reductions. Chief Executive Officer Fred Burke said first-half reported revenue rose 2%, but would have increased by a low-double-digit percentage without IRA pricing reductions. Adjusted EBITDA for the first half increased 23% from the year-earlier period, according to the company. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Guardian Pharmacy Stock Pops on Q3 Strength and Upbeat Forecast Based on first-half performance and expectations for the rest of the year, Guardian raised its 2026 outlook. The company now expects revenue of $1.43 billion to $1.45 billion, compared with its prior range of $1.40 billion to $1.42 billion. It raised projected adjusted EBITDA to $129 million to $131 million from $123 million to $127 million. Chief Financial Officer Will Mudd said revenue in the quarter benefited from organic growth, acquisitions, higher resident acuity, plan optimization efforts, and favorable product and payer mix. Residents served at quarter-end exceeded 210,000, increasing by a high-single-digit percentage year over year, while prescription volumes also rose by a high-single-digit percentage. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Gross profit rose 18% to $80 million, resulting in a gross margin of 22.8%, despite higher fuel costs. Selling, general and administrative expenses were $56.5 million, or 16.9% of revenue. Guardian recorded net income of $22.1 million, compared with $8.8 million in the prior-year quarter. The quarter’s net income included an $8.5 million cash payment from the settlement of a payer dispute, which was recorded as other income and excluded from adjusted EBITDA because the company said it was not representative of ongoing operating performance. → No Hangover: Revisiting Microsoft One Week After Earnings Mudd said acquisitions and greenfield locations launched in 2024 and 2025 remained below Guardian’s corporate margin and reduced consolidated margin by roughly 60 basis points in the second quarter. That was an improvement from an estimated 80-basis-point impact in the first quarter. For the second half, the company expects reported revenue to decline year over year by a low-single-digit percentage because of continued IRA-related pricing reductions. Excluding those reductions, underlying revenue growth is expected to remain in the high-single digits. Guardian expects adjusted EBITDA margin to be relatively stable in the third quarter and to increase seasonally in the fourth quarter due to vaccine activity. Burke said the next tranche of IRA pricing reductions is expected to have a smaller revenue effect than the 2026 tranche. He said the company expects the next group to represent roughly 40% of the 2026 tranche, though the estimate has not been definitively analyzed because the specific drugs have not yet been identified. He added that Guardian is comfortable it has mitigated the margin impact on EBITDA. Chief Operating Officer David Morris said Guardian’s clinicians served more than 300,000 residents in the first half of 2026 and completed more than 50,000 clinical interventions affecting more than 45,000 residents. Those interventions included identifying approximately 4,000 allergy risks and 5,000 potential duplicate drug therapies. The company is also expanding its Falls Risk Program to additional facilities for further evaluation. Morris said early data showed meaningful improvements in outcomes, although he noted the sample size remains relatively small. Guardian announced after the end of the quarter that it acquired Wellness Concepts, a long-term care pharmacy in Virginia’s Shenandoah Valley. Morris described the business as smaller in size but consistent with the types of service-oriented pharmacies Guardian seeks to add to its platform. The company also opened a greenfield pharmacy in Lexington, Kentucky, its first location in the state. Morris said the site is supported by Guardian’s Tennessee and Cincinnati pharmacies and illustrates the company’s approach to expanding into contiguous markets where it already serves business from nearby operations. Burke said the company generally expects it to take roughly four years for new acquisitions and greenfield locations to reach corporate-average profitability, though individual locations may progress faster or take longer depending on their circumstances. Guardian appointed Morris as COO after he had served as CFO since the company’s inception. Mudd, who joined Guardian in 2012 and had worked with Morris for more than a decade, succeeded him as CFO. The company also established a regional leadership structure, appointing eight internal senior vice presidents to oversee its national footprint. Morris said the leaders are expected to provide greater consistency, accountability and support for local pharmacies while maintaining local decision-making and the company’s entrepreneurial culture. Guardian ended the quarter with nearly $90 million in cash, up from about $65 million in the prior quarter. Mudd said cash conversion returned to a more normalized level after a one-time working-capital reset related to IRA implementation in the first quarter. Burke said the company’s primary capital-allocation focus remains acquisitions and greenfield startups. He said Guardian also intends to retain financial flexibility while it monitors potential opportunities involving Omnicare assets, though no impact from such opportunities is included in the company’s guidance. Burke also said the final tranche of Class B common stock is expected to convert into Class A common stock in late September, representing approximately 13.5 million shares. Following the conversion, the company expects employees, management and directors collectively to hold between 35 million and 37 million Class A shares, with nearly all subject to closed-window trading restrictions until the next open trading window following third-quarter earnings. Guardian Pharmacy Services, Inc, a pharmacy service company, provides a suite of technology-enabled services designed to help residents of long-term health care facilities (LTCFs) in the United States. Its individualized clinical, drug dispensing, and administration capabilities are used to serve the needs of residents in lower acuity LTCFs, such as assisted living facilities and behavioral health facilities and group homes. The company's Guardian Compass includes dashboards created using data from its data warehouse to help its local pharmacies plan, track, and optimize their business operations; and GuardianShield Programs for LTCFs. 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 "Guardian Pharmacy Services Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Guardian Pharmacy Services Inc (NYSE:GRDN) raised its full-year 2026 revenue and adjusted EBITDA guidance, reflecting strong first-half performance and confidence in the business outlook. Adjusted EBITDA grew 23% in the first half of 2026, demonstrating successful mitigation of the profitability impact from IRA-related pricing reductions. Residents served and script volumes both increased high single-digits year-over-year, indicating continued organic growth and strong demand. Gross profit increased 18% year-over-year in Q2, with gross margin expanding to 22.8%, driven by favorable product and payer mix and operational efficiencies. The company is actively expanding through strategic M&A and greenfield startups, including the acquisition of Wellness Concepts and a new pharmacy in Lexington, Kentucky. Guardian Pharmacy Services Inc (NYSE:GRDN) maintains a strong balance sheet with nearly $90 million in cash and no debt, providing significant financial flexibility for future growth initiatives. Reported revenue growth was only 2% in Q2 due to the negative impact of IRA-related pricing reductions, masking the underlying low double-digit growth. Reported revenue in the second half of 2026 is expected to decline by a low single-digit percentage year-over-year due to continued IRA pricing pressures. The company faces ongoing uncertainty and potential revenue impact from the next tranche of IRA pricing changes expected in 2027 and 2028. Recent acquisitions and greenfield startups continue to dilute consolidated margins, though the impact is gradually decreasing. The company is maintaining a 'standstill mode' regarding potential Omnicare asset opportunities, creating uncertainty around capital deployment and future growth prospects. Higher fuel costs continue to pressure gross profit, adding to operational headwinds. Warning! GuruFocus has detected 2 Warning Sign with KRMN. Is GRDN fairly valued? Test your thesis with our free DCF calculator. Q: Fred, regarding the M&A and greenfield announcements, how long will the ramp process take for these specific assets to reach company averages, and what is the visibility into the pipeline for both greenfields and M&A for the rest of the year and into next year? A: Fred (Executive Chairman): We have a very robust pipeline for both greenfields and M&A. It typically takes us roughly four years to bring new locations up to the corporate average profitability, though some are quicker and some take a little longer. For these two particular locations, I would forecast the ramp will be about normal. Q: With the new set of drugs coming under the IRA in 2028 (like Trulicity), how should we think about the impact, and have PBM arrangements been addressed to cover future changes? A: Fred (Executive Chairman): We will suffer the revenue decline associated with the price reduction, but this next tranche represents about 40% of the 2026 trial. The revenue impact in 2027 will be less than it was in 2026. On the EBITDA side, we are comfortable that we have mitigated the margin impact. Q: You noted the 2027 IRA impact is now 40% relative to the 2026 impact, which was previously called out at 50%. What is driving that 10-point differential and what operational or payer contracting improvements have driven that conviction? A: Fred (Executive Chairman): The revenue impact is yet to be definitively analyzed because we don't yet have the specific drugs. We are guesstimating based on the relative volume of the 2027 tranche compared to the 2026 tranche. We will know more definitively soon. Q: David, regarding the clinical initiatives you called out, what are some of the milestones and ways you foresee these capabilities playing into longer-term outcomes for payers and PBM partners? A: David (COO): This has been an ongoing process for the past few years. We set out five years ago with an intensive education process with all our payors to ensure they understood the value we bring for trail residents and health plans. More near-term, our Falls Risk Program continues to make great progress. While the sample size is small, we have seen meaningful reductions in fall-related risk metrics and will provide more detail as we roll out the plan and have more representative data. Q: Will the new regional leadership structure create changes in day-to-day operations, and what capabilities or strengths will it add to the enterprise? A: David (COO): There will be gradual changes. These leaders have been with us for 15-plus years on average and have run very strong businesses. They will provide more guidance and assistance to local Presidents, some of whom are new through M&A activity. This will heavily strengthen the organization as we prepare for continued growth. It's early, but we are already starting to see a positive impact. Q: With $90 million in cash, no debt, and strong free cash flow, how are you thinking about capital deployment outside of M&A, such as shareholder returns, or do you want to remain flexible? A: Fred (Executive Chairman): Our main focus is to deploy cash on acquisitions and greenfield startups because it leverages our business well. At this point, we want to maintain dry powder until we know for certain what happens with the Omnicare assets in case there is an opportunity. As we move through, we will reassess and explore all options. Q: Fred, regarding the Omnicare assets and keeping dry powder, what are the range of outcomes we should consider, and is any impact from Omnicare reflected in the 2026 guidance? A: Fred (Executive Chairman): I cannot answer definitively as the deal is not closed, at least not that we are aware of. Until it closes, we cannot engage in further conversations. There may or may not be interest on their part, but we are prudently standing by in case they seek to divest assets. We view it as an organic growth opportunity, but since we are in a standstill mode, we have not incorporated any of that into our guidance. Q: Regarding the Lexington greenfield, it sits nicely between your Tennessee and Cincinnati pharmacies. Can you discuss the thought process behind that greenfield and any benefits from serving the same clients or leveraging capabilities from legacy pharmacies? A: David (COO): We are not currently in Kentucky, and this marks our first location there, but we have locations in proximity and are currently serving business in Kentucky from other facilities. This is a perfect example of contiguous expansion with existing teams. As there is enough business in an area, we launch a bricks-and-mortar site with assistance from existing Guardian pharmacies, such as Columbus, Ohio, to help launch and support it as it scales. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Guardian Pharmacy Services (GRDN) came out with quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.54%. A quarter ago, it was expected that this provider of pharmacy services to long-term care facilities would post earnings of $0.24 per share when it actually produced earnings of $0.29, delivering a surprise of +20.83%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Guardian Pharmacy, which belongs to the Zacks Medical - Drugs industry, posted revenues of $351.77 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.57%. This compares to year-ago revenues of $344.33 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Guardian Pharmacy shares have added about 34.6% since the beginning of the year versus the S&P 500's gain of 12.8%. While Guardian Pharmacy has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Guardian Pharmacy was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.29 on $360.31 million in revenues for the coming quarter and $1.25 on $1.42 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Drugs is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Aquestive Therapeutics (AQST), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This specialty pharmaceutical company is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of +28.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Aquestive Therapeutics' revenues are expected to be $12.26 million, up 22.6% from the year-ago quarter. 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 Guardian Pharmacy Services, Inc. (GRDN) : Free Stock Analysis Report Aquestive Therapeutics, Inc. (AQST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ATLANTA, August 06, 2026--(BUSINESS WIRE)--Guardian Pharmacy Services, Inc. (NYSE: GRDN), one of the nation's leading long-term care ("LTC") pharmacy services companies, announced today its financial results for the second quarter ended June 30, 2026. The Company also raised its full-year guidance. Second Quarter Financial Results Revenue of $351.8 million, up 2% year-over-year. Residents served ended the quarter at approximately 210,000, up 8% year-over-year. Net Income of $22.1 million, inclusive of an $8.5 million settlement related to a payor dispute, compared to $8.8 million in the prior-year period. Adjusted EBITDA of $29.7 million, compared to $25.0 million in the prior-year period. Diluted EPS of $0.34 for the quarter, with Adjusted EPS of $0.29.1 Cash and cash equivalents totaled $89.8 million at quarter-end, with no long-term debt outstanding under our credit facility. CEO Commentary "Guardian delivered another strong quarter, with continued momentum across our local markets," said Fred Burke, President and Chief Executive Officer. "While IRA-related pricing reductions affected reported revenue growth, which was up 2%, the underlying business remained strong. Absent the price reductions from the IRA, revenues would have been up low double digits compared to the second quarter of 2025. We also continued to expand profitability, reflecting the benefits of scale, purchasing leverage and improved operating efficiency." Burke continued, "Our second-quarter performance, together with our outlook for the remainder of the year, gives us the confidence to raise our 2026 guidance." FY 2026 Outlook – Updating Guidance The guidance below excludes any future acquisitions. M&A and Greenfields Subsequent to quarter-end, Guardian completed the acquisition of Wellness Concepts, a long-term care pharmacy based in Grottoes, Virginia. Founded in 1999, Wellness Concepts has established a strong reputation for service and quality care throughout the Shenandoah Valley. The pharmacy’s existing leadership and employees will remain in place. Guardian also launched a new greenfield pharmacy in Lexington, Kentucky, representing the Company’s first location in the state. The pharmacy was developed collaboratively by Guardian’s Tennessee and Cincinnati operations under the leadership of David Brown, one of the Company’s recently appointed regional senior vice presidents. Lexington represents the fourth greenfield pharmacy developed by this leadership team since joining Guardian through the Company’s Middle Tennessee acquisition in 2009. Together, these investments further expand Guardian’s geographic footprint and demonstrate the Company’s ability to combine local market expertise, acquired talent and disciplined development to support long-term growth. Leadership and Organizational Updates As previously announced, Guardian appointed David Morris as Chief Operating Officer and Will Mudd as Chief Financial Officer, effective July 1, 2026. Mr. Morris previously served as Guardian’s Chief Financial Officer and has played a central role in the Company’s development since its inception. In his new role, he will oversee Guardian’s pharmacy operations and sales organization. Mr. Mudd joined Guardian in 2012 and has held positions of increasing responsibility across the Company’s finance organization. He most recently served as Senior Vice President of Finance and has been instrumental in developing the financial infrastructure that supported Guardian’s growth and transition to becoming a public company. The appointments reflect the depth of Guardian’s leadership team and support the Company’s continued evolution as it expands its national platform. In connection with these organizational changes, Guardian also implemented a regional leadership structure led by eight regional senior vice presidents, designed to strengthen accountability, improve coordination and better support local pharmacy teams while preserving the entrepreneurial culture and local decision-making central to Guardian’s operating model. Conference Call Details Guardian will host a conference call to discuss these results today at 4:30 pm ET. The call can be accessed live by dialing +1 (833) 461-5787 for participants located in the United States and Canada, or +1 (585) 542-9983 for international participants, and referencing conference ID "153 713 694." A webcast replay will be available shortly after the call’s completion at https://investors.guardianpharmacy.com About Guardian Pharmacy Services Guardian Pharmacy Services is one of the nation’s leading long-term care pharmacy services companies. Through its locally‑based business model, Guardian partners with long-term care facilities ("LTCFs") to deliver medications and a comprehensive suite of technology-enabled services designed to enhance care and improve adherence to drug regimens, helping to reduce the cost of care and improve clinical outcomes. With a growing network of more than 61 licensed pharmacies, 54 of which are full-service, Guardian is dedicated to providing exceptional service to approximately 210,000 residents (as of June 30, 2026). Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements. Forward-looking statements are all statements other than those of historical fact. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions, or future events or performance are not historical facts and are forward-looking. These statements are often, but not always, made through the use of words such as "aims," "anticipates," "believes," "continue," "estimates," "expects," "intends," "may," "outlook," "plans," "projects," "seeks," "should," "will," "would," and similar expressions. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements are not guarantees of future performance and involve risks and uncertainties which are subject to change based on various important factors, many of which are beyond our control. Such risks and uncertainties include: our ability to effectively execute our business and growth strategies, implement new initiatives and improve efficiency; our ability to effectively market and sell, customer acceptance of, and competition for, our pharmaceutical and health care services in new and existing markets; our relationships with pharmaceutical wholesalers and key manufacturers, LTCFs and health plan payors; our ability to maintain and expand relationships with LTCF operators on favorable terms; our ability to identify, complete and successfully integrate acquisitions; the impact of a national emergency, public health crisis, global pandemic or outbreak of infectious disease on our employees, business, supply chain and the LTCFs we serve; continuing government and private efforts to lower pharmaceutical costs, including by capping the prices for certain drugs and limiting pharmacy reimbursements; changes in, and our ability to comply with, healthcare and other applicable laws, regulations or interpretations; further consolidation of managed care organizations and other health plan payors and changes in the terms of our agreements with these parties; our ability to retain members of our senior management team, our local pharmacy management teams and our pharmacy professionals; our exposure to, and the results of, claims, legal proceedings and governmental inquiries; our ability to maintain the security and integrity of our operating and information technology systems and infrastructure (e.g., against cyber-attacks); product liability, product recall, personal injury or other health and safety issues related to the pharmaceuticals we dispense; the impact of supply chain and other manufacturing disruptions or trade policies related to the pharmaceuticals we dispense; the sufficiency of our sources of liquidity and financial resources to fund our future operating expenses and capital expenditure requirements, and our ability to raise additional capital, if needed; and the misuse or off-label use, or errors in the dispensing or administration, of the pharmaceuticals we dispense. We are subject to additional risks and uncertainties described in our periodic reports filed with the Securities and Exchange Commission from time to time, including in the "Risk Factors" section contained in our most recent Annual Report on Form 10-K, which report is publicly available at www.sec.gov and via our website, investors.guardianpharmacy.com. Any forward-looking statements in this press release should be evaluated in light of these important risk factors. This press release reflects management’s views as of the date hereof. Except to the extent required by applicable law, Guardian undertakes no obligation to update or revise any information contained in this press release beyond the published date, whether as a result of new information, future events or otherwise. Additional Information This release should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q and subsequent filings. Copies of our reports are available on our website at no expense at investors.guardianpharmacy.com and through the SEC’s website at www.sec.gov. Use of Non-GAAP Financial Measures To supplement the results presented in our consolidated financial statements in accordance with GAAP, we also present Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS, which are financial measures not based on any standardized methodology prescribed by GAAP. We define Adjusted EBITDA as net income before interest expense (income), income taxes, depreciation and amortization, as adjusted to exclude the impact of items and amounts that we view as not indicative of our core operating performance, including share-based compensation, certain legal and regulatory items, financing-related and other activities, and payor-reimbursement matters. We define Adjusted Net Income as net income attributable to Guardian Pharmacy Services, Inc. before share-based compensation expense, certain legal and other regulatory items, financing-related and other activities, payor-reimbursement matters, amortization expense associated with acquisition-related intangible assets, and the income tax impact of the adjustments. We define Adjusted EPS as Adjusted Net Income divided by the total weighted average of diluted shares for Class A common stock and Class B common stock. Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS do not have a definition under GAAP, and our definition of Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS may not be the same as, or comparable to, similarly titled measures used by other companies. We use Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS to better understand and evaluate our core operating performance and trends. We believe that presenting Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS provides useful information to investors in understanding and evaluating our operating results, as it permits investors to view our core business performance using the same metrics that management uses to evaluate our performance. There are a number of limitations related to the use of Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS rather than the most directly comparable GAAP financial measure, including: Adjusted EBITDA does not reflect interest and income tax payments that represent a reduction in cash available to us; Depreciation and amortization are non-cash charges and the assets being depreciated may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS do not reflect changes in, or cash requirements for, our working capital needs; Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS do not consider the impact of share-based compensation; and Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS exclude the impact of certain legal and regulatory items, and payor-reimbursement matters which can affect our current and future cash requirements. Because of these limitations, Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. You should consider Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS alongside other financial measures, including net income, diluted EPS, and our other financial results presented in accordance with GAAP. A reconciliation of Adjusted EBITDA to net income and of Adjusted Net Income to Net Income Attributable to Guardian Pharmacy Services, Inc., the most directly comparable GAAP financial measures, are set forth below. Guardian has not provided a quantitative reconciliation of forecasted adjusted EBITDA to forecasted net income within this release because Guardian is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence due to the variability and complexity of such items. These items include, but are not limited to, income taxes and share-based compensation. These items, which could materially affect the computation of forecasted net income, are inherently uncertain and depend on various factors that are not estimable at this time. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806913846/en/ Contacts Investor Contact: Ashley Stockton, Vice President, Investor [email protected]

Investors were underwhelmed by the solid earnings posted by Guardian Pharmacy Services, Inc. (NYSE:GRDN) recently. Our analysis says that investors should be optimistic, as the strong profit is built on solid foundations. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. This ratio tells us how much of a company's profit is not backed by free cashflow. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking. For the year to March 2026, Guardian Pharmacy Services had an accrual ratio of -0.11. Therefore, its statutory earnings were quite a lot less than its free cashflow. Indeed, in the last twelve months it reported free cash flow of US$70m, well over the US$53.1m it reported in profit. Guardian Pharmacy Services shareholders are no doubt pleased that free cash flow improved over the last twelve months. Having said that, there is more to the story. We can see that unusual items have impacted its statutory profit, and therefore the accrual ratio. See our latest analysis for Guardian Pharmacy Services That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Guardian Pharmacy Services' profit was reduced by unusual items worth US$10m in the last twelve months, and this helped it produce high cash conversion, as reflected by its unusual items. In a scenario where those unusual items included non-cash charges, we'd expect to see a strong accrual ratio, which is exactly what has happened in this case. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. If Guardian Pharmacy Services doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year. In conclusion, both Guardian Pharmacy Services' accrual ratio and its unusual items suggest that its statutory earnings are probably reasonably conservative. Based on these factors, we think Guardian Pharmacy Services' earnings potential is at least as good as it seems, and maybe even better! So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. In terms of investment risks, we've identified 1 warning sign with Guardian Pharmacy Services, and understanding it should be part of your investment process. Our examination of Guardian Pharmacy Services has focussed on certain factors that can make its earnings look better than they are. And it has passed with flying colours. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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.