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Jun 30, 2023

Option Care Health Q2 2023 Earnings Report

Option Care Health's financial performance improved in Q2 2023, marked by revenue growth, increased profitability, and strategic developments.

Key Takeaways

Option Care Health reported a strong second quarter in 2023, with a 9.0% increase in net revenue to $1,069.1 million and a significant 237.2% rise in net income to $114.4 million. The company's adjusted EBITDA also saw a substantial increase of 29.2%, reaching $110.1 million. Despite terminating the Merger Agreement with Amedisys, Inc. and receiving a termination fee, the company remains confident in its growth trajectory for the remainder of the year.

Net revenue increased by 9.0% to $1,069.1 million compared to Q2 2022.

Gross profit rose by 15.6% to $250.8 million, representing 23.5% of net revenue.

Net income surged by 237.2% to $114.4 million, with basic earnings per share at $0.64.

Adjusted EBITDA increased by 29.2% to $110.1 million.

Total Revenue
$1.07B
Previous year: $981M
+9.0%
EPS
$0.63
Previous year: $0.19
+231.6%
Adjusted EBITDA
$110M
Previous year: $85.2M
+29.3%
Cash Flow from Operations
$170M
Previous year: $104M
+62.4%
Gross Profit
$251M
Previous year: $217M
+15.6%
Cash and Equivalents
$441M
Previous year: $204M
+116.2%
Free Cash Flow
$162M
Previous year: $99.6M
+62.4%
Total Assets
$3.32B
Previous year: $2.99B
+11.2%

Option Care Health

Option Care Health

Forward Guidance

Option Care Health provides financial guidance for the full year 2023, including net revenue between $4.2 billion and $4.3 billion, adjusted EBITDA between $415 million and $425 million, and cash flow from operations of at least $350 million.

Positive Outlook

  • Net Revenue of $4.2 billion to $4.3 billion
  • Adjusted EBITDA of $415 million to $425 million
  • Cash Flow from Operations of at least $350 million
  • Effective tax rate of 27% to 29%
  • Net interest expense of approximately $55.0 million to $59.0 million