BrightSpring Health Services, Inc.

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Bright Spring Health Services, Inc. Second Quarter 2025 Earnings Call. At this time, you are in listen-only mode. Later, we will conduct a question and answer session. To ask a question at that time, please press star 1-1 on your touchtone telephone. To remove your question, please press star 1-1 again. Please stand by. Our conference will begin shortly. I would now like to hand the conference over to the first speaker today, You may begin.

Good morning. Thank you for participating in today's conference call. My name is David Deichler with Investor Relations for BrightSpring. I'm joined on today's call by John Rousseau, Chief Executive Officer, and Jen Phipps, Chief Financial Officer. Earlier today, BrightSpring released financial results for the quarter ended June 30th, 2025. A copy of the press release and presentation is available on the company's Investor Relations website. Please note that today's discussion will include certain forward-looking statements that reflect our current assumptions and expectations. including those related to our future financial performance in industry and market conditions. Such forward-looking statements are not guarantees of future performance. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations. We encourage you to review the information in today's press release and presentation, as well as in our quarterly report on Form 10Q that will be filed with the SEC, including the specific risk factors and uncertainties discussed in our Form 10K and Form 10Q. Such factors may be updated from time to time in our periodic filings with the SEC, and we do not undertake any duty to update any forward-looking statements except as required by law. During the call, we will use non-GAAP financial measures when talking about the company's financial performance and financial condition. You can find additional information on these non-GAAP measures and reconciliations of our non-GAAP financial measures to the most directly comparable GAAP financial measures to the extent available without unreasonable effort in today's earnings press release and presentation, which again are available on our Investor Relations website. This webcast is being recorded and will be available for replay on our Investor Relations website. And with that, I will turn the call over to John Rousseau, Chief Executive Officer.

Good morning, everyone, and thank you for joining Bright Spring's second quarter 2025 earnings call. I would like to begin by expressing my gratitude to all of our Bright Spring teammates across the country who work hard to provide high quality and compassionate care to patients every day. they make a tremendous impact. Through the first half of the year, we have executed on our plans across the organization with a high level of focus and discipline, and we are pleased with the performance of our businesses. Second quarter results exceeded expectations and have us well positioned to continue to deliver on our goals for the balance of the year. We remain committed to disciplined growth across the company by executing in each of our markets while leveraging our scale and best practices, making smart growth investments, and continuing to provide the high quality of care to patients. Before discussing BrightSpring's second quarter performance, I would like to remind you that the company's financial performance and 2025 guidance principally pertain to the continuing operations and do not include results from the community living business. At this time, we expect the community living divestiture transaction to close in the fourth quarter of this year, subject to regulatory approvals and typical closing conditions, and we continue to work with the FTC as they complete their second review of the transaction. For the second quarter, Bright Spring's revenue and adjusted EBITDA both grew approximately 30% versus last year's comparable quarter. Total company revenue of $3.1 billion represented 29% growth year over year, with pharmacy solutions revenue of $2.8 billion, increasing 32% year over year, and provider services revenue of $358 million, increasing 11% year over year. Total company adjusted EBITDA of $143 million in the quarter also grew 29% compared to the same period last year, driven by strong volume and revenue results across the businesses, particularly in our Onco360 and CareMed specialty pharmacy business. EBITDA margin for the company was 4.5%, which was flat compared to the second quarter of last year. Every service line in the company experienced solid growth as compared to last year, reflective of broad-based operational performance. Given the results in the quarter and with an updated outlook for the remainder of 2025, we are increasing total revenue and adjusted EBITDA guidance for 2025. with adjusted EBITDA guidance increasing by $20 million at the low and high ends of the prior range communicated in May to $590 to $605 million for the year. As a reminder, this 2025 guidance excludes community living, which is reported as discontinued operations in our financial results. The $605 million upper end of the guidance range would compare to $460 million in 2024 and $391 million in 2023, excluding the QIP and community living as well. And at the high end of the range would represent 31.5% growth versus 2024. Jen will discuss Bright Spring's second quarter financial results and 2025 outlook in more detail shortly. At BrightSpring, we prioritize quality services, people, and continuous improvement in operations across the organization to deliver well-coordinated, comparatively lower cost, and timely and highly proximal care to patients in their preferred setting. We remain committed to leveraging our unique level of complementary scale while investing in areas that will enable further efficiencies, resulting in innovative and enhanced care services for complex patient populations. In the past quarter, we continue to grow volumes and win customers due to high patient and provider satisfaction scores, our reach, education, and support of prescriber referral sources, and reliable end-to-end services for patients. We have a very high quality standard and work hard every day to ensure our standards are met across the company. In home health, 90% of our locations achieve four or more stars. and we have a leading 98% timely initiation of care with services that have lowered patient hospitalizations and hospital readmission rates. In hospice, with a top 5% ranked hospice program in the U.S., our hospice quality index score is well above national average, and we deliver 30% more visits to patients versus national average. In rehab, our patient satisfaction score remains at 99%, and our 4.54 satisfaction score out of five in personal care remains very high. In infusion, our patient satisfaction score was approximately 95%, and our discharge rate due to completion of therapy was 96%. While in home and community pharmacy, we had a 99.99% dispense accuracy, order completeness of 99%, and on-time delivery of 97%. Last, in specialty pharmacy, our medication possession ratio was 93%, much higher than the national average. Time to first fill was 3.6 days, and our net promoter score in the most recent quarter remained at a best-in-class level, with CareMed, our growing rare and complex disease pharmacy, receiving a perfect NPS of 100. Overall, Bright Spring continues to exhibit excellent quality in patient and customer satisfaction across our business lines every day. Turning to the company's financial results, total pharmacy solutions revenue grew 32% in the second quarter, and adjusted EBITDA also increased by 32% versus the prior year, with total pharmacy script volume growth of 7% to 10.9 million in the quarter. In the specialty and infusion business, revenue grew 39% year over year, exceeding expectations, and underpinned by strong service levels payer and manufacturing partners, exceptional patient service, continued LDD wins and launches, generic drug conversion and utilization, and fee-for-service and hub growth. Specialty scripts grew 38% in the second quarter driven by continued performance from both brand LDDs and generic script growth. We ended Q2 with 131 LDDs, including five LDD launches in the quarter, Our LDD portfolio has now expanded to 133 therapies, and we expect 16 to 18 additional LDD launches over the next 12 to 18 months. In the second quarter, we were selected as the national pharmacy partner for a number of newly approved therapies and the treatment of advanced cancers and rare genetic disorders. We are proud of our ability to support these therapies as a preferred pharmacy partner and are excited about the potential of these groundbreaking therapies to make a positive impact on patient lives. Turning to infusion, the business performed in line with our expectations in the quarter with solid revenue and EBITDA year-over-year growth and benefiting from improved profitability, operational initiatives, and organic volume growth under augmented leadership in place in the quarter. we remain enthusiastic about the opportunity in both acute and chronic therapies, especially as we continue to make operational and technological enhancements in the business. In home and community pharmacy, revenue grew 11% in the quarter, driven by increased script volumes and customer wins, with solid EBITDA growth year over year. The positive performance in the quarter has been the result of timely and customized delivery of pharmacy services to assisted living, behavioral, skilled nursing and rehab, hospice, PACE, and at-home facilities and settings, along with cost and process improvement initiatives. We believe that there exists attractive additional growth potential in these markets. Moving to the provider segment, we are proud of how the business performed both in the quarter and so far in 2025. Provider revenue grew 11% year-over-year, and segment-adjusted EBITDA also grew 11%, with a segment-adjusted EBITDA margin in the quarter of 15.8%. In home healthcare, comprised of the home health, hospice, and primary care businesses, revenue, which represents 50% of the revenue in the provider segment, grew 17% compared with the second quarter last year. average daily census grew 6% year-over-year to over 30,000, with home health and hospice census growth of 10%. Our commitment to leading service quality has resulted in continued high patient satisfaction scores. We remain optimistic about the home-based primary care opportunity and have seen good traction thus far as we continue to leverage proximity and access to patients through our core pharmacy and provider services building out our value-based care model more broadly. In rehab care, revenue that represented approximately 20% of provider revenue in the second quarter grew 9% year-over-year, with 6% growth in person served and approximately 10% growth in core rehab hours billed. Results in the business were driven by strong stakeholder satisfaction scores and neuro rehab program and rehab in motion de novo location additions. Both home health care and rehab EBITDA grew well into the double digits year over year on a percentage basis. In personal care, which represented approximately 30% of provider revenue in the second quarter, revenue growth was 4%, driven by steady nominal growth in persons served. In the quarter, we continued to provide high-quality patient support services for activities of daily living and saw strong satisfaction scores as a result. While community living is not included in our continuing results and current guidance, the business continues to perform very well with stronger-than-ever quality metrics. Community living adjusted EBITDA has grown well into the double digits year-to-date on a percentage basis. I would also like to discuss a few recent industry topics and help contextualize them as it relates to our business. Across the BrightSpring platform, we provide services for patients who need significant help with disease, illness, or accident treatment and recovery. Our businesses are crucial to the support and outcomes of some of the most acute and complex patients in the healthcare system and are provided in preferred and lower cost settings. As such, these services have tremendous value, as evidenced by extensive studies, including many peer-reviewed articles in leading journals. For example, home and community pharmacy interventions, such as post-discharge medication reviews and follow-up calls, have been shown to be 99% effective in keeping recently discharged patients at home. 65% of readmissions after a SNF-to-home transition are due to medication errors, and a pharmacy transitions program reduces readmissions by 23%. The average cost per day of home care is 90% less than hospital care, and hospice care is 98% less expensive per day than an ICU stay. Post-acute home health care reduces 90-day medical spend by 36%, and readmission rates by 28%. 80% of ACOs report that post-discharge home visits are critical for cost containment of their most complex patients. Patients that are discharged from the inpatient setting without home health are 43% more likely to die within 90 days compared to patients who do receive home health, and 36% more likely to be readmitted, and 16% more likely to have an ED visit. Home-based palliative and hospice care is associated with $12,000 lower cost per patient in the final three months of life, largely due to a 35% reduction in Medicare spending and a 34% reduction in hospital admissions in the final month. And in our JAMDA-published study in 2023, our home health combined with Continued Care Rx in-home med management showed a 70% reduction in hospitalizations. These are just a few of the ROI data points out there for our services that demonstrate their value. Over the last few months, CMS released several preliminary rates for service lines in which we operate, including hospice and home health. The preliminary hospice rate was as expected and adequate to cover annual expense increases and operational investments to continue to service patients with high-quality care. and hospice care represents about two-thirds of our home healthcare business. The preliminary home health rate was not adequate to cover annual expense increases and operational needs to support these patient populations. It would be disruptive to patients and is in contrast to the voluminous amount of third-party data that demonstrates the significant patient, health, and cost outcome benefits from high-quality home health services. However, We note that in the future, the rate adjustments tied to the implementation of PDGM will fall away and home health rates are expected to improve. With the final rate update TBD and coming out in the fall, we also note that home health is only approximately 1.5% of total company revenue today. We still have relatively modest size in home health and have been growing into the market in a measured way, and thus are minimally impacted by any rate changes today, while expecting customary rate increases in the future as we further scale in both home health and hospice, as well as rehab, primary care, and value-based care in the most attractive markets in pharmacies. As it relates to recent pharmacy regulatory topics, such as pharma tariffs and the IRA, we do not believe that pharmacies are an intended source of economic change through policy. Pharmacies provide a critical and last-mile service that physicians, manufacturers, and patients all recognize as being fundamental to the delivery of care. While policymakers discuss any potential policies, we are confident that they will always be thoughtful so as to not compromise patient care or access to essential medications. We have a very experienced and informed government relations team who is working with state and federal agencies to help educate and inform the discussion on topics related to our services. Regardless of any policy and or industry dynamics at play, Bright Spring is always committed to operating at the highest level, providing exceptional care to patients, and using many different growth levers as afforded to us by our differentiated platform. Every year, our company has some policy or industry issues that are favorable and some that are unfavorable, and we always work through these to deliver for our patients and stakeholders, as evidenced by our almost decade-long 15% revenue and EBITDA CAGRs, which has been driven by the demand for our high ROI services and the quality and strong volume growth of our services, our scale-enabled efficiencies, and a near 100% success rate accretive acquisitions that expand our geographic coverage overall we are very pleased with our results in the second quarter in the first half of the year with both periods realizing approximately 30% year-over-year adjusted EBITDA growth our current full year guidance representing similar to slightly higher growth and we are enthusiastic about continued momentum and a high level of growth in 2026 at Bright Spring We strive to achieve consistency and quality, above-market volume growth, operational execution and efficiency, and leading performance in accretive acquisitions, all underpinned by our scaled platform of complementary services and deep functional capabilities. With that, I'll turn the call over to Jeff.