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Sep 30, 2022

Option Care Health Q3 2022 Earnings Report

Announced financial results, demonstrating growth in revenue, gross profit, and adjusted EBITDA compared to the same quarter last year.

Key Takeaways

Option Care Health reported a strong third quarter with a 14.5% increase in net revenue, a 7.4% increase in gross profit, and a 9.8% increase in adjusted EBITDA. The company's focus on patient care and strategic investments drove solid financial results despite inflationary pressures.

Net revenue reached $1,020.9 million, a 14.5% increase year-over-year.

Gross profit was $218.0 million, up 7.4% compared to the third quarter of 2021.

Net income increased to $38.8 million, or $0.21 per share.

Cash flow from operations was $87.0 million, compared to $51.2 million in the same period last year.

Total Revenue
$1.02B
Previous year: $892M
+14.5%
EPS
$0.21
Previous year: $0.2
+5.0%
Adjusted EBITDA
$85.6M
Previous year: $78M
+9.8%
Cash Flow from Operations
$87M
Previous year: $51.2M
+69.9%
Gross Profit
$218M
Previous year: $203M
+7.4%
Cash and Equivalents
$255M
Previous year: $201M
+27.2%
Free Cash Flow
$80.1M
Previous year: $46.3M
+73.0%
Total Assets
$3.07B
Previous year: $2.79B
+10.3%

Option Care Health

Option Care Health

Forward Guidance

Option Care Health revised its full year 2022 guidance, expecting to generate net revenue of $3.90 billion to $3.95 billion, adjusted EBITDA of $336 million to $341 million and cash flow from operations of at least $250 million.

Positive Outlook

  • Net Revenue of $3.90 billion to $3.95 billion
  • Adjusted EBITDA of $336 million to $341 million
  • Cash Flow from Operations of at least $250 million
  • Focus on quality patient care
  • Investments for future growth

Challenges Ahead

  • Changes in laws and regulations applicable to our business model
  • Changes in market conditions and receptivity to our services and offerings
  • Results of litigation
  • The loss of one or more key payers
  • Ongoing challenging inflationary environment