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Mar 31
Premier Q3 2025 Earnings Report
Premier reported fiscal-year 2025 third-quarter financial results.
Key Takeaways
Premier's overall revenue and profitability grew sequentially and exceeded expectations for the third quarter, largely due to better-than-anticipated results in the Supply Chain Services segment. The company is increasing its adjusted EBITDA and adjusted EPS guidance and reaffirming the midpoint of its consolidated revenue guidance range.
Total net revenue for the third quarter of fiscal-year 2025 was $261.4 million, a 9% decrease from the prior-year period.
GAAP net income from continuing operations was $27.6 million, or $0.32 per fully diluted share.
Adjusted earnings per share excluding Contigo Health was $0.46.
Adjusted EBITDA was $71.7 million, a decrease of 25% from the prior-year period.
Premier
Premier
Premier Revenue by Segment
Revenue by Segment
Supply Chain Services Revenue
CapyFin.comPerformance Services Revenue
CapyFin.com Forward Guidance
Premier is increasing its adjusted EBITDA and adjusted EPS guidance for fiscal-year 2025 and reaffirming the midpoint of its consolidated revenue guidance range excluding Contigo Health.
Positive Outlook
- Total Net Revenue Excluding Contigo Health midpoint reaffirmed.
- Adjusted EBITDA guidance increased by $6 million at the midpoint.
- Adjusted Net Income guidance increased by $5 million at the midpoint.
- Adjusted EPS guidance increased by $0.10 at the midpoint.
- Diluted Weighted Average Shares reduced by 3 million shares.
Challenges Ahead
- Supply Chain Services segment net revenue expected to be above midpoint (previously midpoint).
- Performance Services Excluding Contigo Health net revenue expected to be below midpoint (previously midpoint).
- Net administrative fees revenue guidance range includes a lower upper end ($545 million vs $545 million).
- Non-healthcare member purchasing revenue within net administrative fees includes a lower upper end ($70 million vs $75 million).
- Supply Chain Services software licenses, other services and support revenue guidance range includes a lower upper end ($75 million vs $85 million).
Revenue & Expenses
Visualization of income flow from segment revenue to net income