BrightSpring Health Services, Inc.

Hello, and thank you for standing by. Welcome to Bright Spring Health Services, Inc. First Quarter 2026 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during the session, you will need to press star 11 on your telephone. You will then hear an automatic message advising your hand is raised. To withdraw your question, please press star 11 again. We ask that you limit yourself to one question and one follow-up. I would now like to hand the conference over to David Deichler. Please go ahead.

Good morning. Thank you for participating in today's conference call. My name is David Deichler with Investor Relations at Bright Spring. I'm joined on today's call by John Rousseau, Chief Executive Officer, and Jen Fitz, Chief Financial Officer. Earlier today, Bright Spring released financial results for the quarter ended March 31st, 2026. 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 and 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 and as well as our quarterly report on Form 10-Q that will be filed with the SEC, including specific risk factors and uncertainties discussed in our Form 10-K and Form 10-Q. 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 conditions. 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. With that, I will now turn the call over to John Rousseau, Chief Executive Officer.

Good morning, everyone, and thank you for joining Bright Spring's first quarter of 2026 earnings call. I'd like to start by thanking everyone at Bright Spring who drives our mission forward and makes a lasting impact every day. We're grateful for their hard work and commitment, enabling us to deliver high quality and timely care to patients. Before we speak to first quarter performance, a few key messages and takeaways from our investor day in March and why we are optimistic about the company's prospects in the years ahead. Bright Spring is a national leader in home and community health services, serving complex patients in the healthcare system. We deliver high-quality services at significant scale with a disciplined operating model that focuses on patient and provider outcomes. Throughout our service lines, that focus on quality care underpins commercial efforts supporting sustainable growth. Our organizational culture of continuous improvement and best practice sharing will continue to enable operations that expand the impact we're making in providing comparatively lower cost services for complex patients across the country. In pharmacy solutions, the growth outlook is healthy, with the specialty and infusion businesses continuing to deliver impressive script growth and patient satisfaction scores. We continue to see strong volume performance from both brand LDDs and generics, and we added four exclusive and ultra-narrow LDDs to our portfolio in the first quarter, bringing our total number of LDDs to 153. Infusion represents one of our larger geographic expansion opportunities looking forward, covering today about one-third of the country on the acute side and half the country in chronic specialty. Home and Community Pharmacy is looking to drive organic, profitable growth in assisted living, behavioral, hospice, PACE, skilled nursing, and other markets supported by investments and automation across our national pharmacy footprint. On the provider side, in our home healthcare businesses, we continue to expect organic growth to be underpinned by market share gains from high quality services and scaled market development and clinical support teams that we continue to invest in. In 2026, We are integrating the Acquired and Medicis and LHC branches and expect approximately 30 million of EBITDA contribution in year one. We are continuously looking to innovate services and associated operational processes to drive outcomes and growth with numerous payer agreements and partnerships that reflect this. In Palliative and Hospice, The strength of our quality results and our patient-centric approach positions us well in a market that remains significantly underutilized, with only half of eligible patients receiving such valuable care today. Rehab continues to deliver consistent growth in home and community settings with excellent clinical outcomes, as we continue to expand in the senior setting through rehab in motion in assisted living facilities. Home-based primary care and value-based care initiatives, while still in earlier stages, produce meaningful reductions in hospitalization, help coordinate other needed services, and represent significant potential for future growth as we scale. Bright Spring is firmly positioned on the right side of the most important trends in healthcare to address system and patient needs. With a differentiated enterprise and a unique set of assets that deliver real solutions to patients, providers, and payers alike. With that context, let me turn to the first quarter. As a reminder, the company's financial results in 2026 guidance pertain to continuing operations and do not include results from the divested community living business nor the impact of any future closed acquisitions. We completed the sale of community living to Civita on March 30th, 2026, which resulted in net cash proceeds before tax of approximately $811 million. The proceeds from this transaction will be used to further strengthen the balance sheet, including both debt pay down and cash availability. Overall, we are pleased with our first quarter financial results with total company revenue of 3.6 billion that grew 26% year over year. Pharmacy Solutions revenue of 3.2 billion and provider services revenue of $442 million represented 25 and 28% growth respectively. First quarter 2026 adjusted EBITDA of $190 million grew 45% year-over-year with an adjusted EBITDA margin of 5.3%, a 70 basis point improvement year-over-year. Margin expansion was primarily driven by mix and operational efficiencies across the organization. On cash flow, the company realized $123 million of cash flow from operations in the quarter, excluding fees from the community living divestiture. Leverage was 2.27 times as of March 31, 2026, which declined from 2.99 times as of December 31, 2025. Proforma leverage on March 31 was 2.40 times when factoring in cash taxes associated with the community living proceeds that will be paid in Q2. Performance in the quarter was driven by a high quality of care and patient satisfaction. In home health, over 91% of our branches are four stars or greater. We have an industry leading timely initiation of care of greater than 99%. And in Q1, 65 home health locations were named a best home health provider by US News and World Report. In hospice, quality measures remain well above national average, with significantly more visits provided, a top 5% ranked hospice program in the US, and a CAHPS overall hospice rating of 87%. In rehab, patient satisfaction scores are at 98% with outpatient and 97% with home and community rehab. In personal care, we have a client satisfaction score of 4.6 out of 5, consistent with the fourth quarter. On the pharmacy side, in home and community, dispensing accuracy was 99.99%. Order completeness was 99%, and on-time delivery was 96%. And in infusion, our patient satisfaction score was 94%. 97% of discharges were due to completion of therapy, and importantly, we saw recent improvements in both acute and specialty turnaround times near internal goals aimed at best in class. And specialty pharmacy demonstrated a consistently high medication possession ratio of 92.1% in the quarter, along with time to first fill of 4.6 days, both much better than national average. I'd like to close by emphasizing that Bright Springs' continued focus on serving large and growing markets providing high-quality care for patients, building and leveraging scale, and institutionalizing a disciplined operating model are what collectively differentiate the company. We serve expanding populations of high-acuity individuals with solutions delivered in the home or community settings that consistently improve clinical outcomes while reducing total cost of care. We are deliberate in our corporate strategy, and we use our platform scale to generate operational efficiencies while deploying best practices across our pharmacy and provider service lines, equipping them with the resources and capabilities they need to execute and grow. We believe this approach and model is what creates durable value and the most positive impact for all of our stakeholders. Bright Springs' first quarter saw broad-based momentum across both the pharmacy and provider segments that reflected execution on our operating and growth priorities, which we laid out at our investor day in March. We feel good about the performance of the business through the first three months and are on track to deliver the updated full-year guidance provided today. With that, I'll turn the call over to Jen.