BrightSpring Health Services, Inc.
For the period ended Sep 30, 2026. Filed Oct 30, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 30, 2026
BTSG$67.15+2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-31.
0001193125-26-327014
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-30.
0001865782-26-000012
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 196 previous paragraphs and 195 current paragraphs.
102 unchanged; 63 reworded; 28 added; 30 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 16 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (28)
Current report
Company leverage of 1.79x at September 30, 2026
Current report
Revenue grew by $879.1 million, or 26.4%, to $4.2 billion
Current report
Net income from continuing operations increased by $63.3 million to $100.8 million
Current report
Selling, general, and administrative expenses were $358.1 million for the three months ended September 30, 2026, as compared with $304.2 million for the three months ended September 30, 2025, an increase of $53.9 million or 17.7%. The increase primarily resulted from the following segment activity and factors:
Current report
an increase of $44.3 million, or 14.6%, on consolidated third quarter of 2025 selling, general, and administrative expenses, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below;
Current report
an increase of $3.7 million, or 1.2%, on consolidated third quarter of 2025 selling, general, and administrative expenses, due to non-cash share-based compensation related to the equity awards granted to management and certain full-time employees; and,
Current report
Net Income from Continuing Operations
Current report
Adjusted EBITDA was $227.8 million for the three months ended September 30, 2026, as compared with $160.4 million for the three months ended September 30, 2025, an increase of $67.3 million or 42.0%. The increase primarily resulted from the following segment activity and factors:
Current report
an increase of $79.3 million, or 49.4%, on consolidated third quarter of 2025 Adjusted EBITDA, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below; offset by
Current report
an increase of $162.1 million, or 17.7%, on consolidated 2025 selling, general, and administrative expenses, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below;
Current report
an increase of $4.3 million, or 0.5%, on consolidated 2025 selling, general, and administrative expenses, due to non-cash share-based compensation related to the equity awards granted to management and certain full-time employees; and,
Current report
an increase of $15.9 million, or 1.7%, on consolidated 2025 selling, general, and administrative expenses, as a result of an increase in investments in information technology, positions to support growth within the business, and certain public company costs incurred year-over-year; offset by,
Current report
Net Income from Continuing Operations
Current report
Adjusted EBITDA was $623.0 million for the nine months ended September 30, 2026, as compared with $434.0 million for the nine months ended September 30, 2025, an increase of $189.0 million or 43.5%. The increase primarily resulted from the following segment activity and factors:
Current report
an increase of $221.3 million, or 51.0%, on consolidated 2025 Adjusted EBITDA, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below; offset by
Current report
Selling, general, and administrative expenses were $139.8 million for the three months ended September 30, 2026, as compared with $131.1 million for the three months ended September 30, 2025, an increase of $8.7 million or 6.6%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period.
Current report
Selling, general, and administrative expenses were $440.5 million for the nine months ended September 30, 2026, as compared with $382.9 million for the nine months ended September 30, 2025, an increase of $57.6 million or 15.0%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period.
Current report
Effective July 1, 2026, the Company realigned its Rehab in Motion business from the Rehab Care sub-segment to the Home Health Care sub-segment to reflect how the business is managed. Prior period sub-segment information has been recast to conform to the current presentation. The change did not affect consolidated company or segment results. The impact on prior periods was not material.
Current report
Revenues were $480.8 million for the three months ended September 30, 2026, as compared with $367.1 million for the three months ended September 30, 2025, an increase of $113.7 million or 31.0%. The increase primarily resulted from the following segment activity and factors:
Current report
Revenues attributable to Home Health Care were $288.3 million for the three months ended September 30, 2026, as compared with $189.2 million for the three months ended September 30, 2025, an increase of $99.1 million or 52.4%. Revenues attributable to Rehab Care were $81.8 million for the three months ended September 30, 2026, as compared with $75.5 million for the three months ended September 30, 2025, an increase of $6.3 million or 8.3%. Revenues attributable to Personal Care were $110.7 million for the three months ended September 30, 2026, as compared with $102.4 million for the three months ended September 30, 2025, an increase of $8.3 million or 8.1%.
Current report
Cost of services was $278.3 million for the three months ended September 30, 2026, as compared with $220.8 million for the three months ended September 30, 2025, an increase of $57.5 million or 26.0% The increase primarily resulted from the aforementioned revenue growth.
Current report
Selling, general, and administrative expenses were $128.6 million for the three months ended September 30, 2026, as compared with $93.0 million for the three months ended September 30, 2025, an increase of $35.6 million or 38.2%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period.
Current report
Effective July 1, 2026, the Company realigned its Rehab in Motion business from the Rehab Care sub-segment to the Home Health Care sub-segment to reflect how the business is managed. Prior period sub-segment information has been recast to conform to the current presentation. The change did not affect consolidated company or segment results. The impact on prior periods was not material.
Current report
Revenues were $1,389.1 million for the nine months ended September 30, 2026, as compared with $1,070.7 million for the nine months ended September 30, 2025, an increase of $318.5 million or 29.7%. The increase primarily resulted from the following segment activity and factors:
Current report
Revenues attributable to Home Health Care were $833.7 million for the nine months ended September 30, 2026, as compared with $552.8 million for the nine months ended September 30, 2025, an increase of $280.9 million or 50.8%. Revenues attributable to Rehab Care were $236.3 million for the nine months ended September 30, 2026, as compared with $217.9 million for the nine months ended September 30, 2025, an increase of $18.4 million or 8.4%. Revenues attributable to Personal Care were $319.1 million for the nine months ended September 30, 2026, as compared with $300.0 million for the nine months ended September 30, 2025, an increase of $19.1 million or 6.4%.
Current report
Cost of services was $810.6 million for the nine months ended September 30, 2026, as compared with $648.8 million for the nine months ended September 30, 2025, an increase of $161.8 million or 24.9%. The increase primarily resulted from the aforementioned revenue growth.
Current report
Selling, general, and administrative expenses were $379.5 million for the nine months ended September 30, 2026, as compared with $275.0 million for the nine months ended September 30, 2025, an increase of $104.5 million or 38.0%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period.
Current report
Nine Months Ended September 30, 2026 and 2025
Removed paragraphs (30)
Previous report
$300.0 million paydown and concurrent modification of our First Lien Facility, including interest rate refinancings that resulted in interest savings
Previous report
Completed an underwritten secondary offering of our common stock by affiliates Kohlberg Kravis Roberts & Co. L.P. and certain members of management in June 2026
Previous report
Repurchased 1,026,465 shares of common stock in connection with the June 2026 secondary offering
Previous report
Company leverage of 2.15x at June 30, 2026
Previous report
Revenue grew by $725.4 million, or 23.0%, to $3.9 billion
Previous report
Net income increased by $78.1 million to $86.6 million
Previous report
Recent Developments
Previous report
On June 6, 2026, KKR Stockholder and certain management selling stockholders completed a registered secondary public offering of 14,999,771 shares of the Company’s common stock (the “June 2026 Offering”). The Company did not sell any shares of common stock that were offered in the June 2026 Offering. Also, the Company did not receive any proceeds from the June 2026 Offering, other than proceeds received in connection with the cash exercise of stock options by the management selling stockholders in connection with the June 2026 Offering.
Previous report
In connection with the June 2026 Offering, the Company concurrently purchased from the underwriter, out of the aggregate of 14,999,771 shares of common stock that were the subject of the June 2026 Offering, 1,026,465 shares of common stock at a price of $58.453 per share, for a total purchase price of $60.0 million. The purchase price reflected a discount to the closing market price on the date of purchase. The repurchase was reviewed and approved by the Audit Committee of our Board of Directors.
Previous report
Selling, general, and administrative expenses were $362.4 million for the three months ended June 30, 2026, as compared with $326.3 million for the three months ended June 30, 2025, an increase of $36.1 million or 11.1%. The increase primarily resulted from the following segment activity and factors:
Previous report
an increase of $44.2 million, or 13.5%, on consolidated second quarter of 2025 selling, general, and administrative expenses, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below;
Previous report
Net Income
Previous report
Adjusted EBITDA was $205.5 million for the three months ended June 30, 2026, as compared with $142.5 million for the three months ended June 30, 2025, an increase of $63.0 million or 44.2%. The increase primarily resulted from the following segment activity and factors:
Previous report
an increase of $73.8 million, or 51.8%, on consolidated second quarter of 2025 Adjusted EBITDA, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below; offset by
Previous report
an increase of $117.8 million, or 19.2%, on consolidated 2025 selling, general, and administrative expenses, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below; offset by,
Previous report
a decrease of $8.6 million, or 1.4%, on consolidated 2025 selling, general, and administrative expenses, as a result of a decrease in other operational expenses year-over-year.
Previous report
Net Income
Previous report
Adjusted EBITDA was $395.3 million for the six months ended June 30, 2026, as compared with $273.6 million for the six months ended June 30, 2025, an increase of $121.7 million or 44.5%. The increase primarily resulted from the following segment activity and factors:
Previous report
an increase of $142.0 million, or 51.9%, on consolidated 2025 Adjusted EBITDA, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below; offset by
Previous report
Selling, general, and administrative expenses were $143.6 million for the three months ended June 30, 2026, as compared with $136.0 million for the three months ended June 30, 2025, an increase of $7.6 million or 5.6%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period.
Previous report
Selling, general, and administrative expenses were $300.6 million for the six months ended June 30, 2026, as compared with $251.8 million for the six months ended June 30, 2025, an increase of $48.9 million or 19.4%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period.
Previous report
Revenues were $466.0 million for the three months ended June 30, 2026, as compared with $357.6 million for the three months ended June 30, 2025, an increase of $108.4 million or 30.3%. The increase primarily resulted from the following segment activity and factors:
Previous report
Revenues attributable to Home Health Care were $277.6 million for the three months ended June 30, 2026, as compared with $184.5 million for the three months ended June 30, 2025, an increase of $93.1 million or 50.5%. Revenues attributable to Rehab Care were $81.9 million for the three months ended June 30, 2026, as compared with $73.2 million for the three months ended June 30, 2025, an increase of $8.7 million or 11.9%. Revenues attributable to Personal Care were $106.5 million for the three months ended June 30, 2026, as compared with $99.9 million for the three months ended June 30, 2025, an increase of $6.6 million or 6.6%.
Previous report
Cost of services was $271.4 million for the three months ended June 30, 2026, as compared with $216.4 million for the three months ended June 30, 2025, an increase of $55.0 million or 25.4%. The increase primarily resulted from the aforementioned revenue growth.
Previous report
Selling, general, and administrative expenses were $128.5 million for the three months ended June 30, 2026, as compared with $91.9 million for the three months ended June 30, 2025, an increase of $36.6 million or 39.9%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period.
Previous report
Revenues were $908.4 million for the six months ended June 30, 2026, as compared with $703.5 million for the six months ended June 30, 2025, an increase of $204.8 million or 29.1%. The increase primarily resulted from the following segment activity and factors:
Previous report
Revenues attributable to Home Health Care were $543.3 million for the six months ended June 30, 2026, as compared with $362.9 million for the six months ended June 30, 2025, an increase of $180.4 million or 49.7%. Revenues attributable to Rehab Care were $156.7 million for the six months ended June 30, 2026, as compared with $143.0 million for the six months ended June 30, 2025, an increase of $13.7 million or 9.6%. Revenues attributable to Personal Care were $208.4 million for the six months ended June 30, 2026, as compared with $197.6 million for the six months ended June 30, 2025, an increase of $10.8 million or 5.5%.
Previous report
Cost of services was $532.3 million for the six months ended June 30, 2026, as compared with $428.0 million for the six months ended June 30, 2025, an increase of $104.3 million or 24.4%. The increase primarily resulted from the aforementioned revenue growth.
Previous report
Selling, general, and administrative expenses were $250.9 million for the six months ended June 30, 2026, as compared with $182.0 million for the three months ended June 30, 2025, an increase of $69.0 million or 37.9%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period.
Previous report
Six Months Ended June 30, 2026 and 2025
Reworded paragraphs (63)
Previous wording
We are a leading home and community-based healthcare services platform, focused on delivering complementary pharmacy and provider services to medically complex patients. We have a differentiated approach to care delivery, with an integrated and scaled model that addresses critical services that the highest-need and highest-cost patients require. With a focus on Senior and Specialty patients, our platform provides pharmacy and provider services (both clinical and supportive care in nature) in lower-cost home and community settings largely to Medicare, Medicaid, and commercially-insured populations. We are an essential part of our nation’s health delivery network as a front-line provider of high-quality and cost-effective care to a large and growing number of people, who increasingly require a combination of specialized solutions to enable holistic health care management. Our presence spans all 50 states; we serve over 485,000 patients daily through our approximately 12,700 clinical providers and pharmacists; and our services make a profound impact in the lives and communities of the people we serve.
Current wording
We are a leading home and community-based healthcare services platform, focused on delivering complementary pharmacy and provider services to medically complex patients. We have a differentiated approach to care delivery, with an integrated and scaled model that addresses critical services that the highest-need and highest-cost patients require. With a focus on Senior and Specialty patients, our platform provides pharmacy and provider services (both clinical and supportive care in nature) in lower-cost home and community settings largely to Medicare, Medicaid, and commercially-insured populations. We are an essential part of our nation’s health delivery network as a front-line provider of high-quality and cost-effective care to a large and growing number of people, who increasingly require a combination of specialized solutions to enable holistic health care management. Our presence spans all 50 states; we serve approximately 500,000 patients daily through our approximately 12,700 clinical providers and pharmacists; and our services make a profound impact in the lives and communities of the people we serve.
Previous wording
Unless otherwise noted, amounts and disclosures throughout this Management’s Discussion and Analysis relate to our continuing operations. Refer to “PART I - Item 1. Note 2” of our Form 10-K for additional information regarding discontinued operations.
Current wording
Unless otherwise noted, amounts and disclosures throughout this Management’s Discussion and Analysis relate to our continuing operations. Refer to Note 2 to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q and Note 2 to our audited consolidated financial statements included in Part II, Item 8 of our Form 10-K for additional information regarding discontinued operations.
Previous wording
Second Quarter of 2026 Key Highlights
Current wording
Third Quarter of 2026 Key Highlights
Previous wording
Financial Performance Highlights: Second Quarter of 2026 Compared to Second Quarter of 2025
Current wording
Financial Performance Highlights: Third Quarter of 2026 Compared to Third Quarter of 2025
Previous wording
Pharmacy Solutions segment revenue grew by $617.1 million, or 22.1%, to $3.4 billion
Current wording
Pharmacy Solutions segment revenue grew by $765.5 million, or 25.8%, to $3.7 billion
Previous wording
Provider Services segment revenue grew by $108.4 million, or 30.3%, to $466.0 million
Current wording
Provider Services segment revenue grew by $113.7 million, or 31.0%, to $480.8 million
Previous wording
Adjusted EBITDA(1) increased by $63.0 million, or 44.2%, to $205.5 million
Current wording
Adjusted EBITDA(1) increased by $67.3 million, or 42.0%, to $227.8 million
Previous wording
Pharmacy Solutions segment EBITDA increased by $55.4 million, or 44.4%, to $180.0 million
Current wording
Pharmacy Solutions segment EBITDA increased by $61.0 million, or 43.3%, to $202.0 million
Previous wording
Provider Services segment EBITDA grew by $18.4 million, or 32.6%, to $74.9 million
Current wording
Provider Services segment EBITDA grew by $18.3 million, or 30.1%, to $79.0 million
Previous wording
Diluted EPS increased by $0.35 from $0.04 to $0.39
Current wording
Diluted EPS increased by $0.29 from $0.17 to $0.46
Previous wording
Adjusted EPS(1) increased by $0.23 from $0.22 to $0.45
Current wording
Adjusted EPS(1) increased by $0.24 from $0.30 to $0.54
Previous wording
We are characterized by payor diversification across our platform. Our payors are principally federal, state, and local governmental agencies, commercial insurance, private, and other payors. Additionally, our Medicaid payors can be further broken down across each individual state with our top 10 Medicaid states representing 7% and 6% of total Company revenue for the three and six months ended June 30, 2026 and 2025, respectively.
Current wording
We are characterized by payor diversification across our platform. Our payors are principally federal, state, and local governmental agencies, commercial insurance, private, and other payors. Additionally, our Medicaid payors can be further broken down across each individual state with our top 10 Medicaid states representing 7% of total Company revenue for the three and nine months ended September 30, 2026 and 2025.
Previous wording
We provide our services across all 50 states, Puerto Rico and Canada, with our top 10 states of operations comprising 53% and 52% of total Company revenues for the three and six months ended June 30, 2026, respectively, compared to 53% for the three and six months ended June 30, 2025. The federal, state, and local programs under which we operate are subject to legislative and budgetary changes that can influence reimbursement rates.
Current wording
We provide our services across all 50 states, Puerto Rico and Canada, with our top 10 states of operations comprising 52% of total Company revenues for the three and nine months ended September 30, 2026 compared to 53% for the three and nine months ended September 30, 2025. The federal, state, and local programs under which we operate are subject to legislative and budgetary changes that can influence reimbursement rates.
Previous wording
See Note 3 of the unaudited condensed consolidated financial statements and related notes in this Form 10-Q for more information regarding revenue by payor type for each reportable segment for the three and six months ended June 30, 2026 and 2025.
Current wording
See Note 3 of the unaudited condensed consolidated financial statements and related notes in this Form 10-Q for more information regarding revenue by payor type for each reportable segment for the three and nine months ended September 30, 2026 and 2025.
Previous wording
Our revenue is dependent upon our contracts and relationships with payors for our “must-serve” patient populations. We partner with a large and diverse set of payor groups nationally and in each of our markets, to form provider networks and to lower the overall cost of care. We structure our payor contracts to help both providers and payors achieve their objectives in a mutually aligned manner. Maintaining, supporting, and both deepening and increasing the number of these contracts and relationships, particularly as we continue to grow market share and enter new markets, is important for our long-term success.
Current wording
Our revenue is dependent upon our contracts and relationships with payors for our “must-serve” patient populations. We partner with a large and diverse set of payor groups nationally and in each of our markets, to form provider networks and to lower the overall cost of care. We structure our payor contracts to help both providers and payors achieve their objectives in a mutually aligned manner.
Previous wording
We provide multiple pharmacy and provider services to approximately 9,500 patients today, and we believe that there are substantially more opportunities to deliver more integrated care, given the hundreds of thousands of patients we serve and a similar number of patients discharging from customers annually. Value-add, beneficial, and multiple integrated care opportunities exist for our customer base and all Senior and Specialty patient populations not only across pharmacy and provider services, but also within each segment. Within pharmacy services, Continue CareRx is aimed at providing medication risk and therapy management continuously and longitudinally post discharge from hospitals and skilled nursing customers. Within provider services, patients often transition from home health to hospice services and can receive therapy and supportive care services concurrent with each other and with home health and hospice.
Current wording
We provide multiple pharmacy and provider services to approximately 10,000 patients today, and we believe that there are substantially more opportunities to deliver more integrated care, given the hundreds of thousands of patients we serve and a similar number of patients discharging from customers annually. Value-add, beneficial, and multiple integrated care opportunities exist for our customer base and all Senior and Specialty patient populations not only across pharmacy and provider services, but also within each segment. Within pharmacy services, Continue CareRx is aimed at providing medication risk and therapy management continuously and longitudinally post discharge from hospitals and skilled nursing customers. Within provider services, patients often transition from home health to hospice services and can receive therapy and supportive care services concurrent with each other and with home health and hospice.
Previous wording
The scale and depth of our complimentary platform of diverse yet related customer and patient services – that complex patients require – positions us at the forefront with governmental and commercial payors who are increasingly seeking ways to expand value-based reimbursement models. Our high-quality services that are delivered in home and community-based and patient and family-preferred settings at lower comparable costs are well-positioned for the long term, and we continue to add wraparound care management capabilities and offerings to our core services. In addition to our large Medicare and Medicaid beneficiary populations, we have a large number of non-governmental payor contracts across the organization today, which both diversifies our payor mix, and provides for additional value-based opportunities and partnerships. The Company’s focused build out of its (i) Home-Based Primary Care, transitional care programs, and in-home medication therapy management, and (ii) Clinical (Nursing) Hub, are key enablers to coordinate base pharmacy and provider services and drive improved quality and lower costs for value-based care constructs. In addition to numerous payor contracts that feature reimbursement incentives, in the past year the Company has entered into several accountable care organization (“ACO”) arrangements to participate in shared savings from its attributed primary care patients and other ACO partnerships and contract as a preferred provider.
Current wording
The scale and depth of our complimentary platform of diverse yet related customer and patient services – that complex patients require – positions us at the forefront with governmental and commercial payors who are increasingly seeking ways to expand value-based reimbursement models. Our high-quality services that are delivered in home and community-based and patient and family-preferred settings at lower comparable costs are well-positioned for the long term, and we continue to add wraparound care management capabilities and offerings to our core services. In addition to our large Medicare and Medicaid beneficiary populations, we have a large number of non-governmental payor contracts across the organization today, which both diversifies our payor mix, and provides for additional value-based opportunities and partnerships. The Company’s focused build out of its (i) Home-Based Primary Care, transitional care programs, and in-home medication therapy management, and (ii) Clinical (Nursing) Hub, are key enablers to coordinate base pharmacy and provider services and drive improved quality and lower costs for value-based care constructs. In addition to numerous payor contracts that feature reimbursement incentives, in the past year the Company has entered into accountable care organization (“ACO”) arrangements to participate in shared savings from its attributed primary care patients and other ACO partnerships and contract as a preferred provider.
Previous wording
Revenues were $3,873.1 million for the three months ended June 30, 2026, as compared with $3,147.7 million for the three months ended June 30, 2025, an increase of $725.4 million or 23.0%. The increase resulted from growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below.
Current wording
Revenues were $4,213.2 million for the three months ended September 30, 2026, as compared with $3,334.1 million for the three months ended September 30, 2025, an increase of $879.1 million or 26.4%. The increase resulted from growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below.
Previous wording
Cost of goods was $3,109.0 million for the three months ended June 30, 2026, as compared with $2,556.4 million for the three months ended June 30, 2025, an increase of $552.6 million or 21.6%. The increase resulted from an increase in Pharmacy Solutions cost of goods. See additional discussion in “—Segment Results of Operations” below.
Current wording
Cost of goods was $3,416.4 million for the three months ended September 30, 2026, as compared with $2,721.3 million for the three months ended September 30, 2025, an increase of $695.1 million or 25.5%. The increase resulted from an increase in Pharmacy Solutions cost of goods. See additional discussion in “—Segment Results of Operations” below.
Previous wording
Cost of services was $271.4 million for the three months ended June 30, 2026, as compared with $216.4 million for the three months ended June 30, 2025, an increase of $55.0 million or 25.4%. The increase resulted from an increase in Provider Services cost of services. See additional discussion in “—Segment Results of Operations” below.
Current wording
Cost of services was $278.3 million for the three months ended September 30, 2026, as compared with $220.8 million for the three months ended September 30, 2025, an increase of $57.5 million or 26.0%. The increase resulted from an increase in Provider Services cost of services. See additional discussion in “—Segment Results of Operations” below.
Previous wording
an increase of $5.1 million, or 1.6%, on consolidated second quarter of 2025 selling, general, and administrative expenses, as a result of an increase in other operational expenses year-over-year; offset by,
Current wording
an increase of $8.5 million, or 2.8%, on consolidated third quarter of 2025 selling, general, and administrative expenses, as a result of an increase in investments in information technology, positions to support growth within the business, and certain public company costs incurred year-over-year; offset by,
Previous wording
a decrease of $13.2 million, or 4.0%, on consolidated second quarter of 2025 selling, general, and administrative expenses, as a result of a decrease in acquisition, integration, and transaction-related costs year-over-year.
Current wording
a decrease of $2.6 million, or 0.9%, on consolidated third quarter of 2025 selling, general, and administrative expenses, as a result of a decrease in acquisition, integration, and transaction-related costs year-over-year.
Previous wording
Interest expense, net was $36.9 million for the three months ended June 30, 2026, as compared with $38.8 million for the three months ended June 30, 2025, a decrease of $1.9 million or 4.9%. The decrease primarily resulted from a decrease in both the variable-rate and applicable margin for the three months ended June 30, 2026 as compared to the prior period and lower outstanding term debt as compared to the prior period, and was partially offset by a $4.0 million decrease in interest income received related to cash flow hedges of interest rate risk.
Current wording
Interest expense, net was $31.0 million for the three months ended September 30, 2026, as compared with $38.2 million for the three months ended September 30, 2025, a decrease of $7.2 million or 18.8%. The decrease primarily resulted from a decrease in both the variable-rate and applicable margin for the three months ended September 30, 2026 as compared to the prior period and lower outstanding term debt as compared to the prior period, and was partially offset by a $4.0 million decrease in interest income received related to cash flow hedges of interest rate risk.
Previous wording
Income tax expense was $6.9 million for the three months ended June 30, 2026, as compared with $1.2 million for the three months ended June 30, 2025. The $5.7 million increase in the income tax expense is primarily driven by the increase in pre-tax book income for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, which was partially offset by a lower effective tax rate for the three months ended June 30, 2026 of 7.4% compared to 12.7% for the three months ended June 30, 2025. The lower effective tax rate was primarily driven by higher excess tax benefits recognized on share-based compensation awards during 2026. These favorable impacts were partially offset by limitations on the deductibility of certain executive compensation.
Current wording
Income tax expense was $28.6 million for the three months ended September 30, 2026, as compared with $12.1 million for the three months ended September 30, 2025. The $16.5 million increase in the income tax expense is primarily driven by the increase in pre-tax book income for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025, which was partially offset by a lower effective tax rate for the three months ended September 30, 2026 of 22.1% compared to 24.4% for the three months ended September 30, 2025. The lower effective tax rate was primarily driven by higher excess tax benefits recognized on share-based compensation awards during 2026. These favorable impacts were partially offset by limitations on the deductibility of certain executive compensation.
Previous wording
Net income was $86.6 million for the three months ended June 30, 2026, as compared with $8.5 million for the three months ended June 30, 2025, an increase of $78.1 million. The increase in net income is primarily attributable to the increase in gross profit and the aforementioned decrease in interest expense, net, partially offset by an increase in selling, general, and administrative expenses and income tax expense.
Current wording
Net income from continuing operations was $100.8 million for the three months ended September 30, 2026, as compared with $37.5 million for the three months ended September 30, 2025, an increase of $63.3 million. The increase in net income from continuing operations is primarily attributable to the increase in gross profit and the aforementioned decrease in interest expense, net, partially offset by an increase in selling, general, and administrative expenses and income tax expense.
Previous wording
a decrease of $10.8 million, or 7.6%, on consolidated second quarter of 2025 Adjusted EBITDA, as a result of increases in certain public company costs incurred, investments in information technology, and positions to support growth within the business.
Current wording
a decrease of $12.0 million, or 7.4%, on consolidated third quarter of 2025 Adjusted EBITDA, as a result of increases in investments in information technology, positions to support growth within the business, and certain public company costs incurred.
Previous wording
Revenues were $7,486.9 million for the six months ended June 30, 2026, as compared with $6,025.8 million for the six months ended June 30, 2025, an increase of $1,461.0 million or 24.2%. The increase resulted from growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below.
Current wording
Revenues were $11,700.1 million for the nine months ended September 30, 2026, as compared with $9,359.9 million for the nine months ended September 30, 2025, an increase of $2,340.2 million or 25.0%. The increase resulted from growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below.
Previous wording
Cost of goods was $5,979.6 million for the six months ended June 30, 2026, as compared with $4,884.6 million for the six months ended June 30, 2025, an increase of $1,095.0 million or 22.4%. The increase resulted from an increase in Pharmacy Solutions cost of goods. See additional discussion in “—Segment Results of Operations” below.
Current wording
Cost of goods was $9,396.0 million for the nine months ended September 30, 2026, as compared with $7,605.9 million for the nine months ended September 30, 2025, an increase of $1,790.1 million or 23.5%. The increase resulted from an increase in Pharmacy Solutions cost of goods. See additional discussion in “—Segment Results of Operations” below.
Previous wording
Cost of services was $532.3 million for the six months ended June 30, 2026, as compared with $428.0 million for the six months ended June 30, 2025, an increase of $104.3 million or 24.4%. The increase resulted from an increase in Provider Services cost of services. See additional discussion in “—Segment Results of Operations” below.
Current wording
Cost of services was $810.6 million for the nine months ended September 30, 2026, as compared with $648.8 million for the nine months ended September 30, 2025, an increase of $161.8 million or 24.9%. The increase resulted from an increase in Provider Services cost of services. See additional discussion in “—Segment Results of Operations” below.
Previous wording
Selling, general, and administrative expenses were $723.1 million for the six months ended June 30, 2026, as compared with $613.9 million for the six months ended June 30, 2025, an increase of $109.2 million or 17.8%. The increase primarily resulted from the following segment activity and factors:
Current wording
Selling, general, and administrative expenses were $1,081.2 million for the nine months ended September 30, 2026, as compared with $918.1 million for the nine months ended September 30, 2025, an increase of $163.1 million or 17.8%. The increase primarily resulted from the following segment activity and factors:
Previous wording
Interest expense, net was $75.5 million for the six months ended June 30, 2026, as compared with $80.5 million for the six months ended June 30, 2025, a decrease of $5.0 million or 6.3%. The decrease primarily resulted from a decrease in both the variable-rate and applicable margin for the six months ended June 30, 2026 as compared to the prior period and lower outstanding term debt as compared to the prior period, and was partially offset by a $7.8 million decrease in interest income received related to cash flow hedges of interest rate risk.
Current wording
Interest expense, net was $106.5 million for the nine months ended September 30, 2026, as compared with $118.8 million for the nine months ended September 30, 2025, a decrease of $12.2 million or 10.3%. The decrease primarily resulted from a decrease in both the variable-rate and applicable margin for the nine months ended September 30, 2026 as compared to the prior period and lower outstanding term debt as compared to the prior period, and was partially offset by a $11.8 million decrease in interest income received related to cash flow hedges of interest rate risk.
Previous wording
Income tax expense was $15.5 million for the six months ended June 30, 2026, as compared with $1.0 million for the six months ended June 30, 2025. The $14.5 million increase in the income tax expense is primarily driven by the increase in pre-tax book income for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, and an increase in the effective tax rate for the six months ended June 30, 2026 of 8.8% compared to 5.3% for the six months ended June 30, 2025. The increase in the effective tax rate is primarily attributable to the comparatively favorable impact of year-to-date discrete tax benefits on pre-tax income in each respective period. These favorable impacts were partially offset by limitations on the deductibility of certain executive compensation.
Current wording
Income tax expense was $44.1 million for the nine months ended September 30, 2026, as compared with $13.1 million for the nine months ended September 30, 2025. The $31.0 million increase in the income tax expense is primarily driven by the increase in pre-tax book income for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025, and an increase in the effective tax rate for the nine months ended September 30, 2026 of 14.4% compared to 19.2% for the nine months ended September 30, 2025. The lower effective tax rate was primarily driven by higher excess tax benefits recognized on share-based compensation awards during 2026. These favorable impacts were partially offset by limitations on the deductibility of certain executive compensation.
Previous wording
Net income was $160.9 million for the six months ended June 30, 2026, as compared with $17.8 million for the six months ended June 30, 2025, an increase of $143.1 million. The increase in net income is primarily attributable to the increase in gross profit and the aforementioned decrease in interest expense, net, partially offset by an increase in selling, general, and administrative expenses and income tax expense.
Current wording
Net income from continuing operations was $261.7 million for the nine months ended September 30, 2026, as compared with $55.2 million for the nine months ended September 30, 2025, an increase of $206.4 million. The increase in net income from continuing operations is primarily attributable to the increase in gross profit and the aforementioned decrease in interest expense, net, partially offset by an increase in selling, general, and administrative expenses and income tax expense.
Previous wording
a decrease of $20.3 million, or 7.4%, on consolidated 2025 Adjusted EBITDA, as a result of increases in certain public company costs incurred, investments in information technology, and positions to support growth within the business.
Current wording
a decrease of $32.3 million, or 7.5%, on consolidated 2025 Adjusted EBITDA, as a result of increases in investments in information technology, positions to support growth within the business, and certain public company costs incurred.
Previous wording
Revenues were $3,407.1 million for the three months ended June 30, 2026, as compared with $2,790.1 million for the three months ended June 30, 2025, an increase of $617.1 million or 22.1%. The increase primarily resulted from volume growth in prescriptions dispensed within Specialty and Infusion Pharmacy partially offset by a decline in prescriptions dispensed within Home and Community Pharmacy. Revenues attributable to Specialty and Infusion Pharmacy were $2,867.5 million for the three months ended June 30, 2026, as compared with $2,203.4 million for the three months ended June 30, 2025, an increase of $664.1 million or 30.1% attributable to an increase in prescriptions dispensed on certain specialty branded drugs. Revenues attributable to Home and Community Pharmacy were $539.6 million for the three months ended June 30, 2026, as compared with $586.7 million for the three months ended June 30, 2025, a decrease of $47.1 million or 8.0%, primarily attributable to impacts from the Inflation Reduction Act, which has resulted in significant reductions in federal healthcare spending, including through mandatory Medicare drug price negotiations and rebates, and statutory caps on negotiated prices.
Current wording
Revenues were $3,732.4 million for the three months ended September 30, 2026, as compared with $2,967.0 million for the three months ended September 30, 2025, an increase of $765.5 million or 25.8%. The increase primarily resulted from volume growth in prescriptions dispensed within Specialty and Infusion Pharmacy partially offset by a decline in prescriptions dispensed within Home and Community Pharmacy. Revenues attributable to Specialty and Infusion Pharmacy were $3,179.8 million for the three months ended September 30, 2026, as compared with $2,377.0 million for the three months ended September 30, 2025, an increase of $802.8 million or 33.8% attributable to an increase in prescriptions dispensed on certain specialty branded drugs. Revenues attributable to Home and Community Pharmacy were $552.6 million for the three months ended September 30, 2026, as compared with $590.0 million for the three months ended September 30, 2025, a decrease of $37.4 million or 6.3%, primarily attributable to impacts from the Inflation Reduction Act, which has resulted in reductions in federal healthcare spending, including through mandatory Medicare drug price negotiations and rebates, and statutory caps on negotiated prices.
Previous wording
Cost of goods was $3,109.0 million for the three months ended June 30, 2026, as compared with $2,556.4 million for the three months ended June 30, 2025, an increase of $552.6 million or 21.6%. The increase primarily resulted from the aforementioned revenue growth in the period as well as an increase in cost per prescription dispensed as a result of mix shift.
Current wording
Cost of goods was $3,416.4 million for the three months ended September 30, 2026, as compared with $2,721.3 million for the three months ended September 30, 2025, an increase of $695.1 million or 25.5%. The increase primarily resulted from the aforementioned revenue growth in the period as well as an increase in cost per prescription dispensed as a result of mix shift.
Previous wording
Gross profit was $298.2 million for the three months ended June 30, 2026, as compared with $233.7 million for the three months ended June 30, 2025, an increase of $64.5 million or 27.6%. The increase primarily resulted from the aforementioned revenue growth in the period, primarily the result of outsized volume growth as well as mix in certain specialty branded drugs, which have lower margins.
Current wording
Gross profit was $316.0 million for the three months ended September 30, 2026, as compared with $245.7 million for the three months ended September 30, 2025, an increase of $70.4 million or 28.6%. The increase primarily resulted from the aforementioned revenue growth in the period, primarily the result of outsized volume growth as well as mix in certain specialty branded drugs, which have lower margins.
Previous wording
Gross profit margin for the three months ended June 30, 2026 was 8.8% compared to 8.4% for the three months ended June 30, 2025. The increase in gross profit margin is due to mix shift in the Pharmacy Solutions segment with greater relative volume growth in Specialty and Infusion Pharmacy, along with product-level mix shifts and rate changes, partially offset by an increase in the fulfillment cost per script in Home and Community Pharmacy.
Current wording
Gross profit margin for the three months ended September 30, 2026 was 8.5% compared to 8.3% for the three months ended September 30, 2025. The increase in gross profit margin is due to mix shift in the Pharmacy Solutions segment with greater relative volume growth in Specialty and Infusion Pharmacy, along with product-level mix shifts and rate changes, partially offset by an increase in the fulfillment cost per script in Home and Community Pharmacy.
Previous wording
Segment EBITDA was $180.0 million for the three months ended June 30, 2026, as compared with $124.7 million for the three months ended June 30, 2025, an increase of $55.4 million or 44.4%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period. See Note 11 “Segment Information” to our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q for further discussion.
Current wording
Segment EBITDA was $202.0 million for the three months ended September 30, 2026, as compared with $141.0 million for the three months ended September 30, 2025, an increase of $61.0 million or 43.3%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period. See Note 11 “Segment Information” to our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q for further discussion.
Previous wording
Revenues were $6,578.5 million for the six months ended June 30, 2026, as compared with $5,322.3 million for the six months ended June 30, 2025, an increase of $1,256.3 million or 23.6%. The increase primarily resulted from volume growth in prescriptions dispensed within Specialty and Infusion Pharmacy partially offset by a decline in prescriptions dispensed within Home and Community Pharmacy. Revenues attributable to Specialty and Infusion Pharmacy were $5,511.8 million for the six months ended June 30, 2026, as compared with $4,154.9 million for the six months ended June 30, 2025, an increase of $1,356.9 million or 32.7% attributable to an increase in prescriptions dispensed on certain specialty branded drugs. Revenues attributable to Home and Community Pharmacy were $1,066.7 million for the six months ended June 30, 2026, as compared with $1,167.4 million for the six months ended June 30, 2025, a decrease of $100.7 million or 8.6%, primarily attributable to impacts from the Inflation Reduction Act, which has resulted in significant reductions in federal healthcare spending, including through mandatory Medicare drug price negotiations and rebates, and statutory caps on negotiated prices.
Current wording
Revenues were $10,311.0 million for the nine months ended September 30, 2026, as compared with $8,289.2 million for the nine months ended September 30, 2025, an increase of $2,021.7 million or 24.4%. The increase primarily resulted from volume growth in prescriptions dispensed within Specialty and Infusion Pharmacy partially offset by a decline in prescriptions dispensed within Home and Community Pharmacy. Revenues attributable to Specialty and Infusion Pharmacy were $8,691.7 million for the nine months ended September 30, 2026, as compared with $6,531.9 million for the nine months ended September 30, 2025, an increase of $2,159.8 million or 33.1% attributable to an increase in prescriptions dispensed on certain specialty branded drugs. Revenues attributable to Home and Community Pharmacy were $1,619.3 million for the nine months ended September 30, 2026, as compared with $1,757.3 million for the nine months ended September 30, 2025, a decrease of $138.0 million or 7.9%, primarily attributable to impacts from the Inflation Reduction Act, which has resulted in reductions in federal healthcare spending, including through mandatory Medicare drug price negotiations and rebates, and statutory caps on negotiated prices.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Maintaining, supporting, and both deepening and increasing the number of these contracts and relationships, particularly as we continue to grow market share and enter new markets, is important for our long-term success.
Current report — wording carried from elsewhere
a decrease of $19.2 million, or 2.1%, on consolidated 2025 selling, general, and administrative expenses, as a result of a decrease in acquisition, integration, and transaction-related costs year-over-year.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
On May 28, 2026, the company used proceeds from the Community Living divestiture to repay $300.0 million of Tranche B-5 and established a new Tranche B-6 Term Loan of $2,214.9 million to refinance the remaining Tranche B-5 balance at SOFR plus 2.00% (or ABR plus 1.00%), maturing February 21, 2031. Additionally, borrowings of the Revolver bear interest at a rate equal to SOFR (with a floor of 0.00%) plus 2.00% for the Revolving Credit Loans or ABR (with a floor of 0.00%) plus 1.00% for the Swingline Loans.