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Mar 31, 2024

Option Care Health Q1 2024 Earnings Report

Option Care Health's financial performance for Q1 2024 showed revenue growth and increased net income amidst a disruptive environment.

Key Takeaways

Option Care Health reported a 12.8% increase in net revenue to $1,146.1 million for Q1 2024, with net income rising by 14.2% to $44.8 million. Adjusted EBITDA increased by 4.8% to $98.3 million. The company reaffirmed its commitment to patient care while navigating a challenging environment.

Net revenue increased by 12.8% to $1,146.1 million compared to Q1 2023.

Net income rose by 14.2% to $44.8 million, or $0.26 earnings per share.

Adjusted EBITDA increased by 4.8% to $98.3 million.

Cash flow from operations was $(68.8) million, impacted by the Change Healthcare cybersecurity incident.

Total Revenue
$1.15B
Previous year: $1.02B
+12.8%
EPS
$0.26
Previous year: $0.21
+23.8%
Adjusted EBITDA
$98.3M
Previous year: $93.8M
+4.8%
Cash Flow from Operations
-$68.8M
Previous year: $89.8M
-176.7%
Gross Profit
$239M
Previous year: $229M
+4.1%
Cash and Equivalents
$220M
Previous year: $298M
-26.3%
Free Cash Flow
-$74.6M
Previous year: $84M
-188.8%
Total Assets
$3.25B
Previous year: $3.13B
+3.8%

Option Care Health

Option Care Health

Forward Guidance

For the full year 2024, Option Care Health expects to generate net revenue between $4.65 billion and $4.8 billion and adjusted EBITDA between $430 million and $450 million. They anticipate cash flow from operations of at least $300 million, an effective tax rate of 26% - 28%, and net interest expense of approximately $55 million to $60 million.

Positive Outlook

  • Net revenue of $4.65 billion to $4.8 billion
  • Adjusted EBITDA of $430 million to $450 million
  • Cash flow from operations of at least $300 million
  • Effective tax rate of 26% - 28%
  • Net interest expense of approximately $55 million to $60 million