Option Care Raises EPS Floor as Quarterly Profit Rebounds
The infusion-services provider generated $184 million in second-quarter operating cash flow.
Option Care Health (OPCH), the infusion-services provider, reported higher second-quarter earnings as profitability recovered from a first-quarter decline and revenue growth remained subdued.
Revenue growth edged up to 1.9% from 1.3% in the first quarter, remaining well below the 8.8% pace recorded in the fourth quarter of 2024. Revenue increased 6.8% sequentially, reflecting a stronger quarter-over-quarter performance.
Second-quarter revenue rose 1.9% from a year earlier to $1.442 billion. Diluted earnings increased 12.9% to $0.35 a share, aided by a 6.5% reduction in the diluted share count.
Gross margin narrowed to about 18.5% from 19.0% a year earlier as gross profit fell 0.7%, even as revenue increased. That pressure was contained further down the income statement.
Operating income rose 2.9%, and operating margin edged up to about 5.9% from 5.8%. Adjusted earnings before interest, taxes, depreciation and amortization increased 3.0% to $117.5 million, reversing the first quarter’s decline.
Cash generation strengthened, with six-month operating cash flow more than doubling to $171.5 million. The company generated $184 million during the second quarter after using $12.1 million in the first.
Option Care maintained its 2025 revenue forecast of $5.675 billion to $5.775 billion, a range lowered in April. The company raised the bottom of its adjusted earnings outlook to $1.85 a share from $1.82 while keeping the upper end at $1.92.
The company trimmed the top of its adjusted EBITDA forecast by $10 million to $495 million and retained the $480 million lower bound. Its outlook calls for at least $320 million in operating cash flow, while third-quarter guidance projects low- to mid-single-digit sequential revenue growth and mid-single-digit adjusted EBITDA growth.
Option Care repurchased $150 million of shares during the quarter, up from $17.5 million in the first quarter, putting more of the improved cash generation toward reducing its share count.