Tue, Apr 29, 8:01 PM (24 days ago)
**Option Care Health, Inc. (OPCH) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $1,332,972,000 (up 16.3% YoY) - **Net Income:** $46,742,000 (up 4.4% YoY) - **Gross Profit Margin:** 19.7% (down from 20.8% YoY) - **Operating Income Margin:** 5.9% (down from 6.0% YoY) - **Effective Tax Rate:** 26.5% (up from 21.4% YoY) **Cash Flow:** - **Net Cash Used in Operations:** $(7,214,000) (improved from $(68,784,000) YoY) - **Net Cash Used in Investing Activities:** $(126,693,000) (due to Intramed Plus acquisition) - **Net Cash Used in Financing Activities:** $(107,286,000) (due to $100M share repurchase) **Earnings Changes & Trends:** - **Revenue Growth:** Driven by organic growth in therapy portfolio, with acute revenue growing in the mid-teens and chronic revenue in the high-teens. - **Gross Profit Margin Decline:** Due to higher cost therapies and temporary mitigation of procurement spread reduction. - **Operating Expenses:** Increased due to salaries, benefits, and general costs, but declined as a percentage of revenue. - **Net Income:** Increased due to revenue growth and operating expense management. **Uncertainties & Future Operations:** - **Procurement Spread:** Full negative impact expected in Q2 and beyond. - **Acquisitions:** Company continues to evaluate opportunities and views acquisitions as a key growth strategy. - **Share Repurchase:** $100M repurchase in Q1, with $400M remaining under the program. - **Debt:** Quarterly principal payments on outstanding debt, with significant maturities in 2028 and 2029. - **Cash Flow:** Expects to meet operating requirements over the next 12 months and beyond, but may require additional financing for long-term strategic plans. **Key Metrics:** - **Current Ratio:** 1.55 (improved from 1.47 YoY) - **Debt-to-Equity Ratio:** 0.87 (improved from 0.94 YoY) - **Interest Coverage Ratio:** 4.9x (improved from 4.1x YoY) **Ticker:** OPCH **Conclusion:** Option Care Health demonstrated solid revenue growth and improved cash flow from operations in Q1 2025. However, gross profit margin declined due to higher cost therapies and temporary mitigation of procurement spread reduction. The company continues to invest in growth through acquisitions and share repurchases, while managing operating expenses and debt. Future performance will depend on the company's ability to navigate uncertainties related to procurement spread, acquisitions, and debt maturities.