Option Care Health, Inc.

Good day and welcome to the Option Care Health second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Bob Okunski, Vice President of Investor Relations. Please go ahead.

Good morning and welcome to OptumCare Health's second quarter 2026 earnings conference call. With me today are John Rademacher, President and Chief Executive Officer, and Meenal Sethna, Executive Vice President and Chief Financial Officer. Before we begin, a reminder that today's discussion will include certain forward-looking statements that reflect our current assumptions and expectations. These forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from our expectations. We assume no obligation to update any forward-looking statements except as required by law. We will also use non-GAAP financial measures when talking about the company's performance and financial condition. For more information on the specific risks and uncertainties, as well as our non-GAAP measures, we encourage you to review the information in today's press release, which is posted on the investor relations portion of our website, as well as in our form 10-K and 10-Q filed with the SEC. Finally, for the question and answer portion of today's call, we ask that you limit questions to one question and one follow-up per participant. With that, I will turn the call over to John.

John? Thanks, Bob. Good morning, everyone, and thank you for joining us. We're pleased to share updates on our second quarter, 2026, today. Before I do this, I want to take a moment to say thank you to the OptionCare Health team for their unwavering commitment to the patients and communities that we serve every day. I am grateful to our team members whose dedication to clinical excellence, patient outcomes, and service quality continues to differentiate OptionCare Health in the marketplace. Their efforts continue to strengthen our foundation and have contributed to the positive momentum we are seeing across the business. And as recognition of the great work our team does on a daily basis, we're incredibly proud to be ranked number 15 on Time's World's Most Impactful Companies of 2026 list that was presented by Time and Statista earlier in the second quarter. At a high level, as the nation's largest independent provider of home and alternate site infusion therapy, our strategy is built on a national scale with local responsiveness. Our comprehensive network of home infusion pharmacies and infusion suites, UREC-accredited specialty pharmacy centers of excellence, along with the breadth and depth of our nursing resources, uniquely positions us in the marketplace. We combine consistent, high-quality clinical care with local access Leveraging our platform of infusion suites and clinics to drive clinical innovation while meeting patients where they want to be. This model not only helps us deliver reliable clinical excellent care for hospitals and health systems, specialty physician practices, and health plans across the country, but also positions us as an important solution to help drive down rising healthcare costs. and our platform provides broad payer access, expanded pharmacy capabilities and a robust nursing network that can oversee patients in their home or one of our more than 190 facilities, making us a strong solution for pharma partners who require these services from a channel partner in support of their medicines. Turning to our results, we delivered a strong second quarter performance reflecting the strength of our operational execution and the positive impact of our 2026 strategic initiatives and focus on recovery. Although I am pleased with our progress in the second quarter, I am not satisfied with our performance, knowing we have much greater potential given the strength of our platform and the quality of our team. In the quarter, revenue, adjusted EBITDA and EPS were all ahead of our expectations and we had a strong quarter of cash generation. Additionally, we repurchased $150 million in stock under our buyback program in the second quarter, reinforcing our commitment to discipline capital allocation and shareholders' return. Finally, we made significant progress on many of our strategic initiatives to position us for long-term growth. Diving into revenue dynamics, within our acute therapy portfolio, We posted another strong quarter of organic growth in the high single digits as we continue to be the partner of choice for many hospitals, health systems, and providers. As a reminder, ACUTE is a very time-sensitive and local therapy platform, requiring close coordination with hospitals and healthcare providers to safely and effectively transition patients to home-based environments, and we do this on a national scale. Our ability to consistently deliver for providers and their patients drove another quarter of above-market, high single-digit revenue growth. With acute, we saw both sequential and year-over-year growth across all key therapeutic categories and the number of patients served. Looking ahead, we expect our acute portfolio to continue to grow faster than the broader industry as we deepen our partnerships with hospitals and health systems. Across our chronic platform, revenue for the quarter was in line with last year and up high single digits sequentially from the first quarter. Breaking this down across the larger therapeutic categories we serve, we delivered another strong quarter in IG Neuro portfolio, showing sequential and year-over-year revenue growth. We remain excited about the opportunities in this portfolio and expect to continue the momentum as the key drivers for the company moving forward. Across our chronic inflammatory portfolio, as we refer to as CID, we began to stabilize our portfolio coming out of the first quarter reset and saw our second quarter patient census rise sequentially. As we move through the remainder of the year, we expect to further grow our patient census in CID products as we monitor this patient base and product Our Rare and Orphan portfolio also delivered solid results for revenue growth, both sequentially and year-over-year. Growth was broad-based across a range of therapies and reflects our close relationships with our pharma partners and the strength of our clinical capabilities. We are excited about the momentum we are building and continue to focus on expanding our Rare and Orphan portfolio and have added new therapies to our portfolio. Some of these will not go live until late 2026, early 2027. However, this is a sign of strength of our offering. We believe we possess a competitive advantage given our national scale with local reach, broad market access for both pharmacy and medical benefits, along with consistent clinical execution through our dedicated program teams. This combined with specialized data capture and reporting positions as a strong partner for pharmaceutical manufacturers. We remain confident in the strength of our platform to support these clinically complex therapies and the value they provide for our patients and partners. Additionally, we have made good progress on advancing on our strategic initiatives to sharpen our execution, improve our operational competitiveness, and identify the best opportunities to invest in the business to resume our growth trajectory. These initiatives include strengthening our commercial team, enhancing our go-to-market strategy, and improving our operational effectiveness. Additionally, we have realigned resources and rebalanced coverage across our top specialty practices and accounts to increase reach and frequency and drive growth. Technology and data analytics also remains important enablers of our strategy as well. We are continuing to invest in artificial intelligence Digital tools, workflow automation, and advanced analytics that improve care coordination, reduce administrative complexity, and enhance the experience for patients, referral sources, and employees. We believe these capabilities will become increasingly important as healthcare continues its transition towards more connected, efficient, and patient-centered models of care. We are also advancing a coordinated set of technology and process improvements across a number of areas to provide a more frictionless experience for our patients and providers. These investments include developing tools in areas such as patient admission and onboarding, claims processing, and patient communication. Additionally, we are deploying technology solutions incorporating artificial intelligence to improve field productivity and operational effectiveness while improving profitability. Our approach with these initiatives is to combine advanced technology with experienced teams to identify patient requirements earlier, strengthen authorization and claim submission, and reduce repetitive work. Ultimately, we believe the application of artificial intelligence will reduce the cost of healthcare while improving clinician efficiency enabling them to spend more time with their patients. Finally, we further expanded our ambulatory infusion clinic footprint, adding five new facilities in the second quarter. Utilization of these facilities continues to expand, with visits growing more than 20% year over year. We are now operating with advanced practitioner capabilities in key markets, and we will continue to drive performance through deeper partnership with local providers. These trends reinforce our confidence in clinic-based growth as an important complement to our pharmacy model. And we continue to leverage our entire network of infusion suites, conducting over 35% of our nursing visits in one of our suites or clinics during the quarter. In closing, I want to again thank our team for their outstanding work and commitment. The strength of our second quarter results reinforces our confidence in the underlying fundamentals of the business. While we are encouraged by our progress, we are not satisfied with the results. There are still significant opportunities to improve process, enhance productivity, strengthen patient access, expand our clinical reach, and drive growth. Our team is committed to continuous improvement and to delivering sustainable long-term value for our patients, partners, and shareholders. And with that, I will turn the call over to Meenal. Meenal?