Press Release: BrightSpring Health Services, Inc. Reports Fourth Quarter and Full Year 2025 Financial Results and Provides Full Year 2026 Guidance

Dow Jones
Feb 27

LOUISVILLE, Ky., Feb. 27, 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 fourth quarter and full year ended December 31, 2025 and initiated full year 2026 Revenue and Adjusted EBITDA(1) guidance.

Fourth Quarter 2025 Financial Highlights

(note: all figures represent continuing operations and exclude the Community Living business)

   -- Net revenue of $3,551 million, up 29.3% compared to $2,747 million in the 
      fourth quarter of 2024 
 
   -- Gross profit of $413 million, up 21.8% compared to $339 million in the 
      fourth quarter of 2024 
 
   -- Net income of $49.6 million compared to net income of $4.3 million in the 
      fourth quarter of 2024 
 
   -- Adjusted EBITDA1 of $184 million, up 40.7% compared to $130 million in 
      the fourth quarter of 2024 
 
   -- Acquired 107 home health and hospice branches as a part of the Amedisys 
      and LHC acquisition 
 
   -- Repurchased 1,500,000 shares of common stock, for approximately $43.2 
      million, in connection with the October 2025 secondary offering by 
      affiliates of Kohlberg Kravis Roberts & Co. L.P. and certain members of 
      management 

Full Year 2025 Financial Highlights

(note: all figures represent continuing operations and exclude the Community Living business)

   -- Net revenue of $12,911 million, up 28.2% compared to $10,072 million in 
      full year 2024 
 
   -- Gross profit of $1,518 million, up 19.8% compared to $1,266 million in 
      full year 2024 
 
   -- Net income of $104.8 million, compared to a net loss of $68.9 million in 
      full year 2024 
 
   -- Operating cash flow of $490 million, compared to $24 million in full year 
      2024 
 
   -- Adjusted EBITDA1 of $618 million, up 34.2% compared to $460 million in 
      full year 2024 
 
   -- Leverage2 of 2.99x as of December 31, 2025 compared to leverage of 4.16x 
      on December 31, 2024 
 
   -- Planned divestiture of Community Living business to Sevita, announced on 
      January 20, 2025, is expected to close by the end of the first quarter of 
      2026 

"In 2025, BrightSpring's financial performance was driven by ongoing demand for our high-quality and differentiated services and operational capabilities," said Jon Rousseau, Chairman, President, and Chief Executive Officer of the Company. "I am pleased with our results across the enterprise, underpinned by the people and processes we have in place, which expand the reach and impact of our mission every day. In 2026, we remain focused on delivering superior, timely, and lower-cost coordinated patient care that provides significant value to the healthcare system, the individuals we serve, and our organization."

(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 (loss) from continuing operations, the most directly comparable financial measure prepared in accordance with GAAP.

(2) The results of the Community Living business are included in the calculation of our leverage pursuant to the terms of our First Lien Credit Agreement.

 
Key Financials(3) (for BrightSpring continuing operations) 
 
                   Three Months 
                      Ended                  Year Ended 
                   December 31,             December 31, 
                   (Unaudited)              (Unaudited) 
                  --------------          ---------------- 
                   2025    2024     %       2025     2024        % 
                   -----   -----  ------   ------   ------  ------ 
($ in millions) 
Pharmacy 
 Solutions 
 Revenue          $3,157  $2,397  32%     $11,446  $ 8,754  31% 
Provider 
 Services 
 Revenue             394     350  13%       1,465    1,318  11% 
                   -----   -----           ------   ------ 
Total Revenue     $3,551  $2,747  29%     $12,911  $10,072  28% 
                   =====   =====           ======   ====== 
 
 
                    Three Months 
                        Ended                   Year Ended 
                    December 31,               December 31, 
                     (Unaudited)                (Unaudited) 
                  -----------------          ----------------- 
                   2025    2024        %      2025    2024           % 
                   ----    ----      ------   ----    ----      ------ 
($ in millions) 
Pharmacy 
 Solutions 
 segment EBITDA   $ 162   $ 113      44%     $ 544   $ 395      38% 
Provider 
 Services 
 segment EBITDA      64      56      16%       233     205      13% 
                   ----    ----               ----    ---- 
Total Segment 
 Adjusted 
 EBITDA           $ 227   $ 168      35%     $ 776   $ 600      29% 
Corporate Costs     (43)    (38)      -       (159)   (140)      - 
                   ----    ----               ----    ---- 
Total Company 
 Adjusted 
 EBITDA(1)        $ 184   $ 130      41%     $ 618   $ 460      34% 
                   ====    ====               ====    ==== 
 

Business Metrics

 
                  Three Months Ended                  Year Ended 
                     December 31,                    December 31, 
                     (Unaudited)                     (Unaudited) 
                ----------------------          ---------------------- 
                   2025        2024       %        2025        2024          % 
                ----------  ----------  ------  ----------  ----------  ------ 
Pharmacy 
Solutions 
Prescriptions 
 dispensed      10,844,786  10,967,463  (1%)    43,367,072  41,816,584   4% 
Revenue per 
 script ($)         291.07      218.56  33%         263.93      209.35  26% 
Gross Profit 
 per script 
 ($)                 23.52       18.65  26%          21.64       17.83  21% 
Provider 
Services 
Home Health 
 Care average 
 daily census       34,593      30,019  15%         31,135      28,532   9% 
Rehab Care 
 persons 
 served              7,363       6,544  13%          7,127       6,597   8% 
Personal Care 
 persons 
 served             16,175      15,874   2%         16,079      15,879   1% 
 

(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 (loss) 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 providing 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 $14,450 million to $15,000 million, or 11.9% to 16.2% growth. 
 
          -- Pharmacy Segment Revenue of $12,600 million to $13,100 million, or 
             10.1% to 14.5% growth. 
 
          -- Provider Segment Revenue of $1,850 million to $1,900 million, or 
             26.3% to 29.7% growth. 
 
   -- Total Adjusted EBITDA4 of $760 million to $790 million, or 23.1% to 27.9% 
      growth. 
 
   -- The Amedysis and LHC acquisition is expected to contribute approximately 
      $30 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 (loss) 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, February 27(th) 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 fourth quarter and fiscal year 2025 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 pharmacy and provider health solutions for complex populations in need of specialized and/or chronic care. Through the Company's service lines, including pharmacy, home health care and primary care, and rehabilitation and behavioral health, we provide comprehensive and integrated care and clinical solutions in all 50 states to over 465,000 customers, clients and patients daily. BrightSpring has consistently demonstrated strong and industry-leading quality metrics across its services lines, while improving the quality of life and health for high-need individuals and reducing overall costs to the healthcare system.

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 not GAAP measures of our financial performance and should not be considered as an alternative to net income (loss) 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 (loss) from continuing operations before income tax expense (benefit), 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, restructuring and divestiture-related and other costs, legal costs and settlements associated with certain historical matters for PharMerica, significant projects, and management fees.

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: Media Contact:

David Deuchler, CFA Leigh White

Gilmartin Group LLC leigh.white@brightspringhealth.com

ir@brightspringhealth.com 502.630.7412

 
          BrightSpring Health Services, Inc. and Subsidiaries 
                      Consolidated Balance Sheets 
                       December 31, 2025 and 2024 
            (In thousands, except share and per share data) 
                              (Unaudited) 
 
                             December 31, 2025     December 31, 2024 
                            -------------------   ------------------- 
Assets 
Current assets: 
Cash and cash equivalents    $           88,370    $           60,954 
Accounts receivable, net 
 of allowance for credit 
 losses                                 989,719               902,782 
Inventories                             815,180               636,561 
Prepaid expenses and other 
 current assets                         118,592               161,310 
Current assets held for 
 sale                                   882,189               131,447 
                                ---------------       --------------- 
      Total current assets            2,894,050             1,893,054 
                                ---------------       --------------- 
Property and equipment, 
 net of accumulated 
 depreciation of $404,878 
 and $339,892 at December 
 31, 2025 and 2024, 
 respectively                           204,689               180,570 
Goodwill                              2,545,673             2,363,884 
Intangible assets, net of 
 accumulated amortization               557,555               595,224 
Operating lease 
 right-of-use assets, net               171,632               161,032 
Deferred income taxes, net                   --                 5,288 
Other assets                             39,712                39,128 
Non-current assets held 
 for sale                                    --               687,960 
                                ---------------       --------------- 
      Total assets           $        6,413,311    $        5,926,140 
                                ===============       =============== 
Liabilities, Redeemable 
Noncontrolling Interests, 
and Equity 
Current liabilities: 
Trade accounts payable       $        1,217,946    $          923,926 
Accrued expenses                        333,024               295,746 
Current portion of 
 obligations under 
 operating leases                        42,936                38,910 
Current portion of 
 obligations under 
 financing leases                         6,794                 3,463 
Current portion of 
 long-term debt                          52,340                48,725 
Current liabilities held 
 for sale                               195,994               117,563 
                                ---------------       --------------- 
      Total current 
       liabilities                    1,849,034             1,428,333 
                                ---------------       --------------- 
Obligations under 
 operating leases, net of 
 current portion                        135,420               129,467 
Obligations under 
 financing leases, net of 
 current portion                         14,544                 6,530 
Long-term debt, net of 
 current portion                      2,455,204             2,561,858 
Deferred income taxes, 
net                                       6,178                    -- 
Long-term liabilities                    66,565                71,190 
Non-current liabilities 
 held for sale                               --                77,177 
                                ---------------       --------------- 
      Total liabilities               4,526,945             4,274,555 
                                ---------------       --------------- 
Redeemable noncontrolling 
 interests                               11,227                 3,730 
Shareholders' equity: 
Common stock, $0.01 par 
 value, 1,500,000,000 
 shares authorized, 
 192,124,125 and 
 174,245,990 shares issued 
 and outstanding at 
 December 31, 2025 and 
 2024, respectively          $            1,921    $            1,742 
Preferred stock, $0.01 
par value, 250,000,000 
authorized, no shares 
issued and outstanding at 
December 31, 2025 and 
2024                                         --                    -- 
Additional paid-in capital            1,954,482             1,866,850 
Accumulated deficit                     (74,647)             (222,155) 
Accumulated other 
 comprehensive (loss) 
 income                                  (6,691)                1,418 
                                ---------------       --------------- 
   Total shareholders' 
    equity                            1,875,065             1,647,855 
                                ---------------       --------------- 
Noncontrolling interest                      74                    -- 
                                ---------------       --------------- 
      Total equity                    1,875,139             1,647,855 
                                ---------------       --------------- 
      Total liabilities, 
       redeemable 
       noncontrolling 
       interests, and 
       equity                $        6,413,311    $        5,926,140 
                                ===============       =============== 
 
 
          BrightSpring Health Services, Inc. and Subsidiaries 
                 Consolidated Statements of Operations 
           For the three and twelve months ended December 31, 
                              2025 and 2024 
                (In thousands, except per share amounts) 
                              (Unaudited) 
 
                    For the Three Months       For the Years Ended 
                     Ended December 31,            December 31, 
                   ----------------------   ------------------------- 
                      2025        2024         2025          2024 
                   ----------  ----------   -----------   ----------- 
Revenues: 
   Products        $3,156,539  $2,397,059   $11,445,777   $ 8,754,282 
   Services           394,092     349,906     1,464,787     1,317,932 
                    ---------   ---------    ----------    ---------- 
Total revenues      3,550,631   2,746,965    12,910,564    10,072,214 
Cost of goods       2,901,500   2,192,520    10,507,431     8,008,501 
Cost of services      236,583     215,777       885,356       797,286 
                    ---------   ---------    ----------    ---------- 
Gross profit          412,548     338,668     1,517,777     1,266,427 
Selling, general, 
 and 
 administrative 
 expenses             304,435     283,129     1,222,525     1,158,473 
                    ---------   ---------    ----------    ---------- 
Operating income      108,113      55,539       295,252       107,954 
Loss on 
 extinguishment 
 of debt                   --          --            --        12,726 
Interest expense, 
 net                   38,535      46,180       157,311       190,546 
                    ---------   ---------    ----------    ---------- 
Income (loss) 
 from continuing 
 operations 
 before income 
 taxes                 69,578       9,359       137,941       (95,318) 
Income tax 
 expense 
 (benefit)             20,027       5,077        33,145       (26,387) 
                    ---------   ---------    ----------    ---------- 
Income (loss) 
 from continuing 
 operations, net 
 of income taxes       49,551       4,282       104,796       (68,931) 
Income from 
 discontinued 
 operations, net 
 of income taxes       27,769      11,122        84,317        48,410 
                    ---------   ---------    ----------    ---------- 
Net income (loss)      77,320      15,404       189,113       (20,521) 
Net income (loss) 
 attributable to 
 noncontrolling 
 interests 
 included in 
 continuing 
 operations               240        (595)       (1,553)       (2,459) 
                    ---------   ---------    ----------    ---------- 
Net income (loss) 
 attributable to 
 BrightSpring 
 Health Services, 
 Inc. and 
 subsidiaries      $   77,080  $   15,999   $   190,666   $   (18,062) 
                    =========   =========    ==========    ========== 
 
Net income 
(loss) per 
common share: 
Basic income 
(loss) per share 
attributable to 
common 
shareholders: 
   Continuing 
    operations     $     0.24  $     0.02   $      0.53   $     (0.34) 
   Discontinued 
    operations     $     0.14  $     0.06   $      0.41   $      0.25 
                    ---------   ---------    ----------    ---------- 
   Net income 
    (loss) per 
    share          $     0.38  $     0.08   $      0.94   $     (0.09) 
Diluted income 
(loss) per share 
attributable to 
common 
shareholders: 
   Continuing 
    operations     $     0.23  $     0.02   $      0.48   $     (0.34) 
   Discontinued 
    operations     $     0.12  $     0.06   $      0.39   $      0.25 
                    ---------   ---------    ----------    ---------- 
   Net income 
    (loss) per 
    share          $     0.35  $     0.08   $      0.87   $     (0.09) 
Weighted average 
shares 
outstanding: 
   Basic              203,702     200,312       202,564       192,997 
   Diluted            218,417     213,160       219,774       192,997 
 
 
           BrightSpring Health Services, Inc. and Subsidiaries 
                  Consolidated Statements of Cash Flows 
           For the three and twelve months ended December 31, 
                              2025 and 2024 
                             (In thousands) 
                               (Unaudited) 
 
                       For the Three Months      For the Years Ended 
                        Ended December 31,           December 31, 
                       ---------------------   ----------------------- 
                         2025        2024        2025         2024 
                       ---------   ---------   ---------   ----------- 
Operating 
activities: 
   Net income (loss)   $  77,320   $  15,404   $ 189,113   $   (20,521) 
   Adjustments to 
   reconcile net 
   income (loss) to 
   cash provided by 
   operating 
   activities: 
     Depreciation and 
      amortization        39,524      54,881     164,277       204,482 
     Impairment of 
      long-lived 
      assets               6,102       5,454      12,628        10,235 
     Change in fair 
      value of 
      contingent 
      consideration, 
      net                     --       2,261      (1,266)        2,261 
     Payment of 
      contingent 
      consideration 
      in excess of 
      acquisition 
      date fair 
      value                   --      (2,351)     (6,170)       (2,351) 
     Provision for 
      credit losses        7,504      12,102      56,227        33,998 
     Amortization of 
      deferred debt 
      issuance costs       2,858       2,631      11,242        12,108 
     Share-based 
      compensation        14,366      13,980      70,099        69,174 
     Deferred income 
      taxes, net          (3,424)      1,867      14,842       (25,914) 
     Loss on 
      extinguishment 
      of debt                 --          --          --        12,726 
     Loss on 
      disposition of 
      fixed assets           573         156       2,076           101 
     Other                (2,518)     (1,492)     (4,356)       (2,451) 
     Change in 
     operating 
     assets and 
     liabilities, 
     net of 
     acquisitions: 
      Accounts 
       receivable         31,402     (15,044)   (131,287)     (179,040) 
      Prepaid 
       expenses and 
       other current 
       assets              5,812      10,065      30,669         7,595 
      Inventories       (175,627)   (162,249)   (177,906)     (236,514) 
      Trade accounts 
       payable           221,335     147,646     264,171       303,209 
      Accrued 
       expenses           14,791       5,452      32,003      (144,580) 
      Other assets 
       and 
       liabilities        (8,459)       (151)    (36,193)      (20,744) 
                        --------    --------    --------    ---------- 
      Net cash 
       provided by 
       operating 
       activities      $ 231,559   $  90,612   $ 490,169   $    23,774 
                        --------    --------    --------    ---------- 
Investing 
activities: 
     Purchases of 
      property and 
      equipment        $ (37,665)  $ (15,311)  $ (95,484)  $   (80,913) 
     Acquisitions of 
      businesses, net 
      of cash 
      acquired          (196,256)        (42)   (204,564)      (59,797) 
     Other                    37        (427)     (5,031)          473 
                        --------    --------    --------    ---------- 
      Net cash used 
       in investing 
       activities      $(233,884)  $ (15,780)  $(305,079)  $  (140,237) 
                        --------    --------    --------    ---------- 
Financing 
activities: 
   Long-term debt 
    borrowings         $      --   $      --   $      --   $ 2,566,000 
   Long-term debt 
    repayments           (12,342)    (11,701)    (50,275)   (3,396,334) 
   Proceeds from 
    issuance of 
    common stock on 
    initial public 
    offering, net             --          --          --       656,485 
   Proceeds from 
    issuance of 
    tangible equity 
    units, net                --          --          --       389,000 
   (Repayments) 
    borrowings of the 
    Revolving Credit 
    Facility, net             --     (33,800)    (63,300)       12,600 
   Payment of debt 
    issuance costs            --      (3,857)         --       (47,045) 
   Repurchase of 
    shares of common 
    stock                (43,173)         --     (43,173)         (650) 
   Proceeds from 
    shares issued 
    under share-based 
    compensation 
    plan                  10,600       1,004      25,281         1,535 
   Payment of taxes 
    related to net 
    share settlement 
    of equity awards      (1,971)     (1,196)     (7,554)       (1,196) 
   Payment of 
    contingent 
    consideration up 
    to acquisition 
    date fair value         (200)      2,351        (200)       (1,805) 
   Purchase of 
    redeemable 
    noncontrolling 
    interest                  --          --      (5,100)       (2,316) 
   Payment of 
    financing lease 
    obligations           (3,412)     (2,353)    (13,545)      (11,629) 
                        --------    --------    --------    ---------- 
      Net cash (used 
       in) provided 
       by financing 
       activities      $ (50,498)  $ (49,552)  $(157,866)  $   164,645 
                        --------    --------    --------    ---------- 
      Net (decrease) 
       increase in 
       cash and cash 
       equivalents       (52,823)     25,280      27,224        48,182 
   Cash and cash 
    equivalents at 
    beginning of 
    period               141,300      35,973      61,253        13,071 
                        --------    --------    --------    ---------- 
   Cash and cash 
    equivalents at 
    end of period      $  88,477   $  61,253   $  88,477   $    61,253 
                        --------    --------    --------    ---------- 
   Cash and cash 
    equivalents 
    included in 
    assets held for 
    sale at end of 
    period                   107         299         107           299 
                        --------    --------    --------    ---------- 
   Cash and cash 
    equivalents 
    included in 
    continuing 
    operations at end 
    of period          $  88,370   $  60,954   $  88,370   $    60,954 
                        ========    ========    ========    ========== 
 
 
      BrightSpring Health Services, Inc. and Subsidiaries 
          Reconciliation of EBITDA and Adjusted EBITDA 
       For the three and twelve months ended December 31, 
                          2025 and 2024 
                          (Unaudited) 
 
     The following table reconciles net income (loss) from 
      continuing operations to EBITDA and Adjusted EBITDA: 
 
                         For the Three       For The Twelve 
($ in thousands)          Months Ended        Months Ended 
                          December 31,        December 31, 
                       ------------------  ------------------ 
                         2025      2024      2025      2024 
                       --------  --------  --------  -------- 
Net income (loss) 
 from continuing 
 operations            $ 49,551  $  4,282  $104,796  $(68,931) 
Income tax expense 
 (benefit)               20,027     5,077    33,145   (26,387) 
Interest expense, net    38,535    46,180   157,311   190,546 
Depreciation and 
 amortization            39,524    42,675   162,948   162,144 
                        -------   -------   -------   ------- 
EBITDA                 $147,637  $ 98,214  $458,200  $257,372 
Non-cash share-based 
 compensation(1)         13,009    11,543    59,164    61,336 
Acquisition, 
 integration, and 
 transaction-related 
 costs(2)                 5,613     6,625    40,424    31,953 
Restructuring and 
 divestiture-related 
 and other costs(3)      17,289    14,046    59,782    61,688 
Legal costs and 
 settlements(4)              --        --        --    21,886 
Significant 
 projects(5)                 --        --        --     2,604 
Management fees(6)           --        --        --    23,381 
                        -------   -------   -------   ------- 
Total adjustments      $ 35,911  $ 32,214  $159,370  $202,848 
                        -------   -------   -------   ------- 
Adjusted EBITDA        $183,548  $130,428  $617,570  $460,220 
                        =======   =======   =======   ======= 
 

(1) Represents non-cash share-based compensation to certain members of our management and other full-time employees. The year ended December 31, 2024 includes $15.0 million of previously unrecognized share-based compensation expense related to performance-vesting options under the 2017 Stock Plan, a portion of which vested upon completion of the IPO.

(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. The years ended December 31, 2025 and 2024 included other non-routine transaction costs of $26.8 million and $5.8 million, respectively.

(3) Represents costs associated with restructuring-related activities, including closure costs, and related license impairment, and severance expenses associated with certain enterprise-wide or significant business line cost-savings measures. These costs included $23.4 million and $23.7 million of costs that did not meet the criteria for discontinued operations related to the Community Living divestiture for the years ended December 31, 2025 and 2024, respectively. These costs also included $12.7 million of unamortized debt issuance costs associated with the extinguishment of our Second Lien Facility in the year ended December 31, 2024.

(4) Represents settlement and defense costs associated with certain historical PharMerica litigation matters, including the Silver matter, all of which were finalized in 2024.

(5) Represents costs associated with certain transformational projects and for the periods presented primarily included general ledger system implementation, pharmacy billing system implementation, and ransomware attack response costs, all of which were finalized in 2024.

(6) Represents annual management fees payable to the Managers under the Monitoring Agreement through the date of the IPO, and $22.7 million of termination fees resulting from the Monitoring Agreement being terminated upon completion of the IPO Offerings. All management fees ceased following the completion of the IPO in 2024.

 
         BrightSpring Health Services, Inc. and Subsidiaries 
                   Reconciliation of Adjusted EPS 
         For the three and twelve months ended December 31, 
                            2025 and 2024 
                             (Unaudited) 
 
The following table reconciles diluted EPS to Adjusted 
 EPS: 
 
                            For the Three        For The Twelve 
(shares in thousands)       Months Ended          Months Ended 
                            December 31,          December 31, 
                         -------------------   ------------------- 
                           2025       2024       2025       2024 
                         --------   --------   --------   -------- 
Diluted EPS              $   0.23   $   0.02   $   0.48   $  (0.34) 
Non-cash share-based 
 compensation(1)             0.06       0.05       0.27       0.30 
Acquisition, 
 integration, and 
 transaction-related 
 costs(1)                    0.03       0.03       0.18       0.16 
Restructuring and 
 divestiture-related 
 and other costs(1)          0.08       0.07       0.27       0.31 
Legal costs and 
 settlements(1)                --         --         --       0.11 
Significant projects(1)        --         --         --       0.01 
Management fee(1)              --         --         --       0.12 
Income tax impact on 
 adjustments(2)             (0.07)     (0.04)     (0.20)     (0.32) 
                          -------    -------    -------    ------- 
Adjusted EPS             $   0.33   $   0.13   $   1.00   $   0.35 
                          =======    =======    =======    ======= 
 
Weighted average common 
 shares outstanding 
 used in calculating 
 diluted U.S. GAAP net 
 income (loss) per 
 share                    218,417    213,160    219,774    192,997 
Weighted average common 
 shares outstanding 
 used in calculating 
 diluted Non-GAAP 
 earnings per share       218,417    213,160    219,774    202,106 
 

(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 the year ended December 31, 2024, the income tax impact on adjustments is inclusive of a discrete tax benefit related to the Silver matter that was finalized in connection with the signing of the settlement agreement during the second fiscal quarter of 2024. For all periods presented, the income tax impact on adjustments is inclusive of a discrete tax benefit related to share-based compensation.

(END) Dow Jones Newswires

February 27, 2026 06:00 ET (11:00 GMT)

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