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Jun 30
Premier Q4 2025 Earnings Report
Premier's Q4 2025 earnings report showed a decrease in total net revenue and net income from continuing operations, but exceeded expectations for overall revenue and profitability for the full fiscal year, driven by strong performance in Supply Chain Services.
Key Takeaways
Premier, Inc. reported a total net revenue of $262.9 million for the fiscal-year 2025 fourth quarter, a 12% decrease from the prior year. GAAP net income from continuing operations was $18.0 million, or $0.22 per fully diluted share, a significant drop from $60.9 million in the prior-year period. Despite these declines, the company's full-year adjusted EPS was above the high end of its guidance range, largely due to better-than-anticipated results in the Supply Chain Services segment. The company also provided fiscal-year 2026 financial guidance.
Fourth-quarter total net revenue was $262.9 million, a 12% decrease year-over-year, but better than company expectations.
GAAP net income from continuing operations for Q4 was $18.0 million, a 70% decrease from the prior-year period.
Adjusted EPS for Q4 was $0.43, a 30% decrease year-over-year, but full-year adjusted EPS exceeded guidance.
The Supply Chain Services segment performed better than anticipated, contributing to overall revenue and profitability exceeding expectations for the fiscal year.
Premier
Premier
Premier Revenue by Segment
Revenue by Segment
Supply Chain Services Revenue
CapyFin.comPerformance Services Revenue
CapyFin.com Forward Guidance
For fiscal year 2026, Premier expects total net revenue excluding Contigo Health to be between $940 million and $1 billion, with adjusted EBITDA ranging from $230 million to $245 million, and adjusted EPS between $1.33 and $1.43. This guidance is based on key assumptions including net administrative fees revenue of $520 million to $540 million and capital expenditures of approximately $80 million.
Positive Outlook
- Expected total net revenue excluding Contigo Health of $940 million to $1 billion.
- Anticipated Adjusted EBITDA of $230 million to $245 million.
- Projected Adjusted EPS of $1.33 to $1.43.
- Strong free cash flow conversion of 70% to 80% of adjusted EBITDA.
- Net administrative fees revenue expected to be $520 million to $540 million, including non-healthcare member purchasing.
Challenges Ahead
- Guidance excludes financial contributions from Contigo Health, as its operations are expected to be transitioned or wound down.
- The company does not provide forward-looking guidance on a GAAP basis, making direct comparisons challenging.
- Certain financial information for GAAP reconciliation is not available and cannot be reasonably estimated.
- Adjustments for non-GAAP guidance may be affected by changes in ongoing assumptions and non-recurring items.
- The exact amount of certain adjustments for non-GAAP guidance is not currently determinable but may be significant.
Revenue & Expenses
Visualization of income flow from segment revenue to net income