Option Care Health, Inc.

Revenue in the second quarter was $1.4 billion, up 2% versus last year and up 7% sequentially. Gross profit dollars grew 2% sequentially but were slightly down versus last year; SG&A was down 3% year over year to approximately 11% of revenue. Adjusted EBITDA was $117.5 million, up 3% year over year and up 12% sequentially, and adjusted EPS was $0.45, up $0.04 year over year. Operating cash flow was $184 million and net debt leverage was 2.1x. Full-year 2026 guidance remains revenue of $5.675 billion to $5.775 billion, adjusted EBITDA of $480 million to $495 million, and adjusted EPS of $1.85 to $1.92; operating cash flow target remains at least $320 million. For Q3, management expects sequential revenue growth in the low to mid-single digits and sequential EBITDA growth in the mid-single digit range.

John Charles Rademacher framed the quarter as proof that the turnaround and strategic initiatives are starting to work, but he repeatedly said he is still not satisfied with performance. He highlighted the company’s national scale with local responsiveness, citing strength in acute, improvement in chronic, and expansion in clinics, technology, and AI-enabled workflow tools. His tone was constructive and confident, with emphasis on building momentum through the back half of 2026 and into 2027 rather than declaring victory.

Meenal Sethna emphasized that the quarter came in ahead of expectations and that the company generated strong cash, with $184 million of operating cash flow and 2.1x net debt leverage. She said the company repurchased $150 million of stock in Q2 and that current guidance does not assume any new buybacks beyond that action. She also reiterated the CID-related headwinds: roughly 600 basis points of revenue headwinds and $55 million of gross profit headwinds for 2026, while noting Stelara and related biosimilars are expected to be less than 1% of 2026 net revenue and gross profit. She narrowed full-year adjusted EBITDA and EPS ranges, kept revenue guidance unchanged, and said SG&A growth should remain at or slightly below gross profit growth.

Analysts focused on the implied Q3/Q4 ramp, the mix between acute and chronic, and whether the back-half improvement depended on cost cuts. Management said the guidance is mainly driven by revenue growth from commercial investments, CID census recovery, and ongoing technology/process improvements, with cost actions as a supporting factor rather than the main driver. Questions also covered competitive infusion dynamics, white-bagging, CVS/Stelara formulary changes, and possible CMS home infusion coverage expansion; management said the CMS proposal is narrow and likely not material, and that they have not seen a significant white-bagging impact. On capital allocation, management clarified that no incremental buybacks are embedded in guidance.