BrightSpring Raises Outlook as Earnings Growth Outpaces Sales
Revenue reached $3.873 billion as BrightSpring lifted its full-year sales forecast.
BrightSpring Health Services (BTSG), the home- and community-based health-services provider, posted a 44.2% increase in second-quarter adjusted EBITDA as margins widened despite slower sales growth.
The quarter extended a shift toward faster profit growth. Adjusted EBITDA reached $206 million, roughly matching the first quarter’s 44.8% growth and exceeding the fourth quarter’s 40.7% pace, while the adjusted EBITDA margin expanded to about 5.3% from 4.5% a year earlier.
Revenue rose 23.0% from a year earlier, decelerating from 25.6% in the first quarter and 29.3% in the fourth quarter of 2024. Income from continuing operations climbed to $86.6 million from $8.5 million, while adjusted earnings more than doubled to $0.45 a share from $0.22.
Pharmacy Solutions revenue increased 22% to $3.407 billion, though growth slowed from 25% in the prior quarter. Prescriptions dispensed were essentially flat at 10.84 million, leaving a 22% rise in revenue per prescription to $314.20 as the principal sales driver. Pharmacy segment EBITDA rose 44% to $180 million.
Provider Services supplied a faster-growing counterweight. Revenue rose 30% to $466 million, accelerating from 28% in the first quarter, while segment EBITDA increased 33% to $75 million. Home Health Care’s average daily census climbed 54% to 46,448 following the acquisition of 107 home-health and hospice branches.
BrightSpring now expects full-year revenue of $15.100 billion to $15.425 billion, up from its previous range of $14.725 billion to $15.225 billion. The revised forecast implies growth of 17.0% to 19.5%, compared with the prior 14.1% to 17.9% range.
The company repurchased $60 million of stock during the quarter and paid down $300 million of its First Lien Facility, helping reduce leverage to 2.15 times from 2.27 times at the end of March. Quarterly operating cash flow declined to $43.9 million from $49.1 million a year earlier, leaving cash conversion as a qualifier to the broader earnings gains.