Guardian Pharmacy Services, Inc.

Reported second-quarter revenue was $351.2 million, up 2% year over year; absent IRA-related pricing reductions, revenue would have been up low double digits. Gross profit increased to $80 million, up 18% year over year, with gross margin of 22.8%. Adjusted EBITDA was $29.7 million, up 19% year over year, with adjusted EBITDA margin of 8.4%; net income was $22.1 million versus $8.8 million in the year-ago quarter. Residents served at quarter end were over 210,000, up high single digits, and script volumes also increased high single digits. For full-year 2026, guidance was raised to revenue of $1.43 billion to $1.45 billion and adjusted EBITDA of $129 million to $131 million; management said second-half reported revenue is expected to decline year over year by a low-single-digit percentage due to IRA pricing reductions, while underlying revenue growth absent the IRA should remain in the high single digits.

Fred Burke said Guardian is executing well across local markets and making progress on strategic priorities, especially geographic expansion. He framed the quarter as evidence that the company has mitigated the profitability hit from IRA-related reimbursement changes through disciplined execution, while still delivering adjusted EBITDA growth. His tone was confident and constructive, highlighting leadership changes, succession planning, and the planned Class B-to-Class A conversion as part of a managed, orderly evolution of the company.

Will Mudd said the quarter benefited from organic growth, M&A, higher resident acuity, plan optimization, and favorable product and payer mix. He cited gross profit of $80 million, gross margin of 22.8%, SG&A of $56.5 million or 16.9% of revenue, adjusted EBITDA of $29.7 million, and cash of close to $90 million versus about $65 million in the prior quarter. He also noted an $8.5 million cash payment from a payer dispute settlement recognized in other income, excluded from adjusted EBITDA, and said stock-based compensation was $2.9 million and should stay near that level. He raised full-year guidance from $1.4 billion to $1.42 billion revenue and $123 million to $127 million adjusted EBITDA to $1.43 billion to $1.45 billion and $129 million to $131 million, and said the outlook excludes future acquisitions.

Analysts focused on the ramp timing for newly announced M&A and greenfields, with management saying it typically takes about 4 years to bring new locations to corporate-average profitability. Questions also centered on the IRA, including the next tranche of drugs and whether PBM arrangements have already mitigated future impacts; Fred Burke said the company expects to absorb the revenue reduction but feels comfortable it has mitigated the margin impact. Management was also asked about the new regional leadership structure, and David Morris said it should add guidance, consistency, accountability, and support while preserving local entrepreneurship. On capital deployment, Fred said Guardian prefers to use cash for acquisitions and greenfield start-ups and wants to keep dry powder while Omnicare remains unresolved; he said Omnicare is not included in guidance.