Option Care Health, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 29 July 2026: press release. Guidance figures: 1 raised, 1 lowered, 2 new, 2 kept. The quarter’s numbers.

Key takeaways

Revenue rose 1.9% year over year: Net revenue was $1,442.4 million against $1,416.1 million a year earlier. Six-month net revenue was $2,793.1 million against $2,749.1 million. Source
Adjusted EBITDA rose 3.0%: Adjusted EBITDA was $117.5 million against $114.0 million. Six-month adjusted EBITDA was $222.3 million against $225.8 million. Source
Adjusted diluted EPS rose to $0.45: Adjusted diluted EPS was $0.45 against $0.41, up 9.8%. Six-month adjusted diluted EPS was $0.85 against $0.81. Source
SG&A expense declined: Selling, general and administrative expenses were $161.1 million against $167.5 million. Six-month SG&A was $331.1 million against $330.3 million. Source
Second-quarter operating cash flow was $184M: Cash provided by second-quarter operating activities was $184 million. Six-month operating cash flow was $171.5 million against $83.1 million; the first quarter had used $12.1 million. Source
Second-quarter buybacks of $150M: The company repurchased $150 million of outstanding shares in the quarter. Six-month purchases of stock and related excise taxes were $170.5 million, against $152.4 million. Source
Results credited to 2026 initiatives: The CEO attributed the quarter's results to operational execution and the positive impact of the company's 2026 strategic initiatives. Source

“Looking ahead, our results reinforce our confidence in the underlying fundamentals of the business, but there is still work to do as we further position the company for a sustainable long-term growth trajectory.”
John C. Rademacher, Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Net revenue Source	Full year 2026	$5.675 billion to $5.775 billion	Kept
Adjusted diluted EPS Source	Full year 2026	$1.85 to $1.92	Raised from $1.82 to $1.92
Adjusted EBITDA Source	Full year 2026	$480 million to $495 million	Lowered from $480 million to $505 million
Cash provided by operating activities Source	Full year 2026	at least $320 million	Kept
Net revenue, sequential growth Source	Third quarter 2026 compared with second quarter 2026	low to mid single-digits growth	New
Adjusted EBITDA, sequential growth Source	Third quarter 2026 compared with second quarter 2026	mid single-digits growth	New

What changed from last quarter

Guidance raised: Low end of full-year adjusted diluted EPS guidance raised from $1.82 to $1.85. Source
Guidance lowered: High end of full-year adjusted EBITDA guidance lowered from $505 million to $495 million. Source
New guidance: Third-quarter sequential guidance for net revenue and adjusted EBITDA was given; the prior release had none. Source
Guidance kept: Full-year net revenue range and operating cash flow floor were unchanged from the first quarter release. Source

Revenue and EBITDA growth

Revenue rose 1.9% year over year: Net revenue was $1,442.4 million against $1,416.1 million a year earlier. Six-month net revenue was $2,793.1 million against $2,749.1 million. Source
Adjusted EBITDA rose 3.0%: Adjusted EBITDA was $117.5 million against $114.0 million. Six-month adjusted EBITDA was $222.3 million against $225.8 million. Source
GAAP net income rose 6.7%: GAAP net income was $53.9 million against $50.5 million. Six-month net income was $99.3 million against $97.3 million. Source

Per-share earnings and share count

Adjusted diluted EPS rose to $0.45: Adjusted diluted EPS was $0.45 against $0.41, up 9.8%. Six-month adjusted diluted EPS was $0.85 against $0.81. Source
GAAP diluted EPS rose to $0.35: GAAP diluted EPS was $0.35 against $0.31, up 12.9%. Six-month GAAP diluted EPS was $0.64 against $0.59. Source
Diluted share count declined: Weighted average diluted shares were 153.5 million in the quarter, against 164.1 million a year earlier. Source

“we believe we are well positioned to achieve our 2026 priorities while creating meaningful value for our patients, partners, and shareholders.”
John C. Rademacher, Chief Executive Officer

Costs, gross profit and interest

SG&A expense declined: Selling, general and administrative expenses were $161.1 million against $167.5 million. Six-month SG&A was $331.1 million against $330.3 million. Source
Gross profit slightly lower: Gross profit was $267.3 million against $269.0 million, while cost of revenue rose to $1,175.1 million from $1,147.0 million. Source
Restructuring charges slightly higher: Restructuring, acquisition, integration and other expense was $3.5 million against $2.6 million. Six-month figure was $8.2 million against $7.9 million. Source
Net interest expense eased: Interest expense, net was $14.0 million against $14.4 million. Other, net income was $2.9 million against $0.6 million. Source

Cash flow and balance sheet

Second-quarter operating cash flow was $184M: Cash provided by second-quarter operating activities was $184 million. Six-month operating cash flow was $171.5 million against $83.1 million; the first quarter had used $12.1 million. Source
Inventory fell and added to cash: Inventories were $399.6 million at June 30, against $471.1 million at December 31. The six-month inventory change added $71.5 million to operating cash flow. Source
Receivables rose over the half: Accounts receivable were $511.5 million at June 30, against $473.6 million at December 31. Source
Cash and debt levels: Cash and equivalents were $193.8 million at June 30, against $198.8 million a year earlier. Long-term debt was $1,152.0 million, against $1,154.1 million at December 31. Source

Capital returns and investment

Second-quarter buybacks of $150M: The company repurchased $150 million of outstanding shares in the quarter. Six-month purchases of stock and related excise taxes were $170.5 million, against $152.4 million. Source
Capital spending slightly higher: Acquisition of property and equipment was $20.1 million for six months, against $18.5 million. No business acquisitions occurred in 2026; 2025 included $117.2 million. Source
Financing outflows led by share purchases: Net cash used in financing activities was $189.3 million for six months, against $161.2 million, including $170.5 million of stock purchases and excise taxes. Source

Strategy, footprint and leadership view

Results credited to 2026 initiatives: The CEO attributed the quarter's results to operational execution and the positive impact of the company's 2026 strategic initiatives. Source
Largest independent infusion provider: The company describes itself as the largest independent provider of home and alternate site infusion services, operating in all 50 states. Source
Clinical platform and national scale: The company cites clinical leadership, expertise and national scale as the basis for reimagining the infusion care experience. Source
Team size and clinician count: The company reports over 8,000 team members, including more than 5,000 clinicians. Source

Coming up, as management said on 29 July 2026

Third-quarter sequential guidance: Management guided third-quarter net revenue and adjusted EBITDA growth relative to the second quarter, in the ranges stated above. Source

Earlier plans management reported on

Not stated: Management said it believes the company is well positioned to achieve its 2026 priorities. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

OPTION CARE HEALTH ANNOUNCES FINANCIAL RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2026

BANNOCKBURN, IL., July 29, 2026 - Option Care Health, Inc. (the “Company” or “Option Care Health”) (Nasdaq: OPCH), the nation’s largest independent provider of home and alternate site infusion services, announced today financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Financial Highlights

(year-over-year comparisons unless otherwise noted)

Net revenue of $1,442 million, up 1.9%
GAAP net income of $53.9 million, up 6.7%
GAAP diluted earnings per share of $0.35, up 12.9%
Adjusted EBITDA of $117.5 million, up 3.0%
Adjusted diluted earnings per share of $0.45, up 9.8%
Cash provided by Q2 operating activities of $184 million
Repurchased $150 million of outstanding shares in the quarter

John C. Rademacher, Chief Executive Officer, commented, “I’m proud of our team as we delivered strong second quarter results, reflecting solid operational execution and the positive impact of our 2026 strategic initiatives. Looking ahead, our results reinforce our confidence in the underlying fundamentals of the business, but there is still work to do as we further position the company for a sustainable long-term growth trajectory. Given the strength of our clinical platform, significant market opportunities and our operational focus, we believe we are well positioned to achieve our 2026 priorities while creating meaningful value for our patients, partners, and shareholders.”

Updated Full Year and Third Quarter 2026 Financial Guidance

For the full year 2026, Option Care Health expects the following:

Net revenue of $5.675 billion to $5.775 billion
Adjusted diluted earnings per share of $1.85 to $1.92
Adjusted EBITDA of $480 million to $495 million
Cash provided by operating activities of at least $320 million

For the third quarter 2026, Option Care Health expects the following compared to the second quarter 2026:

Sequential net revenue growth in the low to mid single-digits
Sequential Adjusted EBITDA growth in the mid single-digits

Conference Call

Option Care Health will host a conference call to discuss its results on Wednesday, July 29, 2026, at 8:30 a.m. ET. The conference call can be accessed via a live audio webcast that will be available online at investors.optioncarehealth.com. A replay of the call will be available at the same web link for 90 days after the call.

About Option Care Health

Option Care Health is the nation’s largest independent provider of home and alternate site infusion services. With over 8,000 team members, including more than 5,000 clinicians, we work compassionately to elevate standards of care for patients with acute and chronic conditions in all 50 states. Through our clinical leadership, expertise and national scale, Option Care Health is reimagining the infusion care experience for patients, customers and team members. To learn more, please visit our website at optioncarehealth.com.

Forward-Looking Statements - Safe Harbor

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “estimate,” “expect,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements the Company may make regarding future revenues, future earnings, other future financial results, regulatory developments, market developments, new products and growth strategies and the effects of any of the foregoing on its future results of operations or financial condition.

Forward-looking statements notice

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. The Company's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: changes in laws, regulations or trade policies applicable to its business model; loss of relationships with managed care organizations and other non-governmental third party payers; changes in the pharmaceutical industry, including limiting or discontinuing research, development, production and marketing of pharmaceuticals compatible with its services; changes in market conditions and receptivity to its services and offerings; and pending and future litigation or potential liability for claims not covered by insurance. For a detailed discussion of the risk factors that could affect its actual results, please refer to the risk factors identified in the Company's SEC reports as filed with the SEC.

Any forward-looking statement made by the Company in this press release is based only on information currently available to it and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Note Regarding Use of Non-GAAP Financial Measures

In addition to reporting financial information in accordance with generally accepted accounting principles (GAAP), the Company is also reporting Adjusted net income, Adjusted EBITDA and Adjusted diluted earnings per share ("EPS"), which are non-GAAP financial measures. These adjusted measures are not measurements of financial performance under GAAP and should not be used in isolation or as a substitute or alternative to net income, EPS, or any other performance measure derived in accordance with GAAP, or as a substitute or alternative to cash flow from operating activities or a measure of the Company’s liquidity. In addition, the Company's definitions of Adjusted net income, Adjusted EBITDA, and Adjusted diluted EPS may not be comparable to similarly titled non-GAAP financial measures reported by other companies. As defined by the Company: (i) Adjusted net income represents net income before intangible asset amortization expense, stock-based compensation expense, loss on extinguishment of debt, and restructuring, acquisition, integration and other expenses, net of tax adjustments, (ii) Adjusted EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization, stock-based compensation expense, loss on extinguishment of debt, and restructuring, acquisition, integration and other expenses, and (iii) Adjusted diluted EPS represents Adjusted net income divided by weighted average common shares outstanding, diluted. As part of restructuring, acquisition, integration and other expenses, the Company may incur significant charges such as the write down of certain long‑lived assets, temporary redundant expenses, professional fees, certain litigation expenses and reserves related to acquired businesses, potential retention and severance costs and potential accelerated payments or termination costs for certain of its contractual obligations. Management believes that these adjusted measures provide useful supplemental information regarding the performance of Option Care Health’s business operations and facilitate comparisons to the Company’s historical operating results. The Company has not reconciled Adjusted EBITDA guidance to net income or Adjusted diluted EPS guidance to GAAP diluted EPS as management believes creation of this reconciliation would not be practicable due to the uncertainty regarding, and potential variability of, material reconciling items. Full reconciliations of each historical adjusted measure to the most comparable GAAP financial measure are set forth below.

Schedule 1

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS)(UNAUDITED)

	June 30, 2026	December 31, 2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$193,767	$232,624
Accounts receivable, net	511,507	473,566
Inventories	399,605	471,149
Prepaid expenses and other current assets	95,713	87,629
Total current assets	1,200,592	1,264,968
NONCURRENT ASSETS:
Property and equipment, net	140,408	139,236
Intangible assets, net	20,229	21,897
Referral sources, net	270,410	287,281
Goodwill	1,606,743	1,606,743
Other noncurrent assets	140,395	135,644
Total noncurrent assets	2,178,185	2,190,801
TOTAL ASSETS	$3,378,777	$3,455,769
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$639,767	$639,829
Other current liabilities	179,710	189,519
Total current liabilities	819,477	829,348
NONCURRENT LIABILITIES:
Long-term debt, net of discount, deferred financing costs and current portion	1,152,040	1,154,052
Other noncurrent liabilities	147,362	145,976
Total noncurrent liabilities	1,299,402	1,300,028
Total liabilities	2,118,879	2,129,376
STOCKHOLDERS’ EQUITY	1,259,898	1,326,393
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$3,378,777	$3,455,769

Schedule 2

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)(UNAUDITED)

	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
NET REVENUE	$1,442,400	$1,416,085	$2,793,054	$2,749,057
COST OF REVENUE	1,175,149	1,147,042	2,263,789	2,216,962
GROSS PROFIT	267,251	269,043	529,265	532,095
OPERATING COSTS AND EXPENSES:
Selling, general and administrative expenses	161,110	167,467	331,065	330,275
Restructuring, acquisition, integration and other	3,549	2,625	8,156	7,935
Depreciation and amortization expense	17,452	16,241	32,359	31,987
Total operating expenses	182,111	186,333	371,580	370,197
OPERATING INCOME	85,140	82,710	157,685	161,898
OTHER INCOME (EXPENSE):
Interest expense, net	(14,020)	(14,447)	(27,324)	(27,678)
Other, net	2,867	598	4,629	(1,803)
Total other (expense) income	(11,153)	(13,849)	(22,695)	(29,481)
INCOME BEFORE INCOME TAXES	73,987	68,861	134,990	132,417
INCOME TAX EXPENSE	20,074	18,338	35,734	35,152
NET INCOME	$53,913	$50,523	$99,256	$97,265
Earnings per share, basic	$0.35	$0.31	$0.64	$0.59
Earnings per share, diluted	$0.35	$0.31	$0.64	$0.59
Weighted average common shares outstanding, basic	152,931	162,931	154,782	164,188
Weighted average common shares outstanding, diluted	153,485	164,133	155,772	165,402

Schedule 3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)(UNAUDITED)

	Six Months Ended June 30,
	2026	2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$99,256	$97,265
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	34,037	33,326
Other adjustments	31,535	35,857
Changes in operating assets and liabilities:
Accounts receivable, net	(37,941)	(61,392)
Inventories	71,544	(12,718)
Prepaid expenses and other current assets	(9,958)	17,606
Accounts payable	2,610	(27,904)
Accrued compensation and employee benefits	(4,188)	8,730
Other	(15,410)	(7,651)
Net cash provided by operating activities	171,485	83,119
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(20,123)	(18,466)
Business acquisitions, net of cash acquired	-	(117,247)
Other investing activities	(877)	-
Net cash used in investing activities	(21,000)	(135,713)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of company stock and related excise taxes	(170,545)	(152,429)
Other financing activities	(18,797)	(8,724)
Net cash used in financing activities	(189,342)	(161,153)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(38,857)	(213,747)
Cash and cash equivalents - beginning of period	232,624	412,565
CASH AND CASH EQUIVALENTS - END OF PERIOD	$193,767	$198,818

Schedule 4

QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)(UNAUDITED)

	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Net income	$53,913	$50,523	$99,256	$97,265
Interest expense, net	14,020	14,447	27,324	27,678
Income tax expense	20,074	18,338	35,734	35,152
Depreciation and amortization expense	18,382	16,953	34,037	33,326
EBITDA	106,389	100,261	196,351	193,421
EBITDA adjustments
Stock-based incentive compensation expense	8,382	10,712	18,581	19,513
Restructuring, acquisition, integration and other (1)	2,711	3,045	7,320	12,850
Adjusted EBITDA	$117,482	$114,018	$222,252	$225,784
Net income	$53,913	$50,523	$99,256	$97,265
Intangible asset amortization expense	9,269	9,297	18,539	18,394
Stock-based incentive compensation expense	8,382	10,712	18,581	19,513
Restructuring, acquisition, integration and other (1)	2,711	3,045	7,320	12,850
Total pre-tax adjustments	20,362	23,054	44,440	50,757
Tax adjustments (2)	(5,589)	(6,109)	(11,777)	(13,451)
Adjusted net income	$68,686	$67,468	$131,919	$134,571
Earnings per share, diluted	$0.35	$0.31	$0.64	$0.59
Adjusted earnings per share, diluted	$0.45	$0.41	$0.85	$0.81
Weighted average common shares outstanding, diluted	153,485	164,133	155,772	165,402

(1) Restructuring, acquisition, integration and other includes $3,549 and $8,156 of operating expenses for the three and six months ended June 30, 2026, respectively. Restructuring, acquisition, integration and other includes $2,625 and $7,935 of operating expenses for the three and six months ended June 30, 2025, respectively.

(2) Tax adjustments for the three and six months ended June 30, 2026 and 2025 includes the estimated income tax effect on non-GAAP adjustments based on the effective tax rate.

Contacts
Bob Okunski
Vice President, Investor Relations investor.relations@optioncare.com