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OPTION CARE HEALTH REPORTS FINANCIAL RESULTS FOR FOURTH QUARTER AND FULL YEAR 2024
BANNOCKBURN, IL., February 26, 2025 - Option Care Health, Inc. (the “Company” or “Option Care Health”) (Nasdaq: OPCH), the nation’s largest independent provider of home and alternate site infusion services, announced today financial results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024 Financial Highlights
•Net revenue of $1,346.4 million, up 19.7% compared to $1,124.4 million in the fourth quarter of 2023
•Gross profit of $268.4 million, or 19.9% of net revenue, up 8.6% compared to $247.1 million, or 22.0% of net revenue, in the fourth quarter of 2023
•Net income of $60.1 million, compared to net income of $57.2 million, in the fourth quarter of 2023 and diluted earnings per share of $0.35, up 9.4% compared to diluted earnings per share of $0.32 in the fourth quarter of 2023
•Adjusted net income of $75.5 million, compared to adjusted net income of $66.7 million in the fourth quarter of 2023 and adjusted diluted earnings per share of $0.44, up 15.8% compared to adjusted diluted earnings per share of $0.38 in the fourth quarter of 2023
•Adjusted EBITDA of $121.6 million, up 8.9% compared to $111.6 million in the fourth quarter of 2023
•Cash flow from operations of $36.1 million, down 29.1% compared to cash flow from operations of $51.0 million in the fourth quarter of 2023
•Repurchased approximately $90.0 million of stock in the fourth quarter of 2024
Full Year 2024 Financial Highlights
•Net revenue of $4,998.2 million, up 16.2% compared to $4,302.3 million in full year 2023
•Gross profit of $1,013.0 million, or 20.3% of revenue, up 3.2% compared to $981.2 million, or 22.8% of revenue, in full year 2023
•Net income of $211.8 million, compared to net income of $267.1 million in full year 2023 and diluted earnings per share of $1.23, down 16.9% compared to diluted earnings per share of $1.48, inclusive of the impact from non-operating income, in full year 2023
•Adjusted net income of $272.8 million, compared to adjusted net income of $257.7 million in full year 2023 and adjusted diluted earnings per share of $1.58, up 10.5% compared to adjusted diluted earnings per share of $1.43 in full year 2023
•Adjusted EBITDA of $443.8 million, up 4.4% compared to $425.2 million in full year 2023
•Cash flow from operations of $323.4 million, down 12.9% compared to $371.3 million in full year 2023


John C. Rademacher, Chief Executive Officer, commented, “The Option Care Health team’s execution produced solid financial results in the fourth quarter and full year 2024, demonstrating resilience in a dynamic and challenging period, while continuing to place the patient at the center of everything that we do. I am excited about the road ahead and the opportunity to leverage our capabilities to provide more patients high quality, affordable care, in a setting in which they wish to receive it.”
Full Year 2025 Financial Guidance
For the full year 2025, Option Care Health expects to deliver the following financial results:
•Net revenue of $5.3 billion to $5.5 billion
•Adjusted diluted earnings per share of $1.59 to $1.69
•Adjusted EBITDA of $450 million to $470 million
•Cash flow from operations of at least $320 million
•Effective tax rate of 25% - 27%
•Net interest expense of approximately $55 million to $60 million
Conference Call
Option Care Health will host a conference call to discuss its financial results later today at 8:30 a.m. EST. The conference call can be accessed via a live audio webcast that will be available online at investors.optioncarehealth.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.
About Option Care Health
Option Care Health is the nation’s largest independent provider of home and alternate site infusion services. With over 8,000 team members, including more than 5,000 clinicians, we work compassionately to elevate standards of care for patients with acute and chronic conditions in all 50 states. Through our clinical leadership, expertise and national scale, Option Care Health is reimagining the infusion care experience for patients, customers and teammates. To learn more, please visit our website at optioncarehealth.com.
Investor Contact
Mike Shapiro
Chief Financial Officer
T: (312) 940-2538
mike.shapiro@optioncare.com


Forward-Looking Statements - Safe Harbor
This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “estimate,” “expect,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we may make regarding future revenues, future earnings, regulatory developments, market developments, new products and growth strategies, integration activities and the effects of any of the foregoing on our future results of operations or financial conditions.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: changes in laws and regulations applicable to our business model; changes in market conditions and receptivity to our services and offerings; pending and future litigation; potential liability for claims not covered by insurance; and loss of relationships with managed care organizations and other non-governmental third party payers. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our periodic reports as filed with the SEC.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.


Note Regarding Use of Non-GAAP Financial Measures
In addition to reporting financial information in accordance with generally accepted accounting principles (GAAP), the Company is also reporting Adjusted net income, Adjusted EBITDA and Adjusted earnings per share ("Adjusted EPS"), which are non-GAAP financial measures. These adjusted measures are not measurements of financial performance under GAAP and should not be used in isolation or as a substitute or alternative to net income, earnings per share, or any other performance measure derived in accordance with GAAP, or as a substitute or alternative to cash flow from operating activities or a measure of the Company’s liquidity. In addition, the Company's definitions of Adjusted net income, Adjusted EBITDA, and Adjusted EPS may not be comparable to similarly titled non-GAAP financial measures reported by other companies. As defined by the Company: (i) Adjusted net income represents net income before intangible asset amortization expense, stock-based compensation expense, and restructuring, acquisition, integration and other expenses, net of tax adjustments (ii) Adjusted EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization, stock-based compensation expense, loss on extinguishment of debt, and restructuring, acquisition, integration and other expenses, and (iii) Adjusted earnings per share represents Adjusted net income divided by weighted average common shares outstanding, diluted. As part of restructuring, acquisition, integration and other expenses, the Company may incur significant charges such as the write down of certain long‑lived assets, temporary redundant expenses, professional fees, certain litigation expenses and reserves related to acquired businesses, potential retention and severance costs and potential accelerated payments or termination costs for certain of its contractual obligations. Management believes that these adjusted measures provide useful supplemental information regarding the performance of Option Care Health’s business operations and facilitate comparisons to the Company’s historical operating results. We have not reconciled Adjusted EBITDA or Adjusted diluted earnings per share guidance to net income as management believes creation of this reconciliation would not be practicable due to the uncertainty regarding, and potential variability of, material reconciling items. Full reconciliations of each adjusted measure to the most comparable GAAP financial measure are set forth below.


  Schedule 1

OPTION CARE HEALTH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)(UNAUDITED)
December 31,
20242023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$412,565 $343,849 
Accounts receivable, net409,733 377,658 
Inventories388,131 274,004 
Prepaid expenses and other current assets112,198 98,744 
Total current assets1,322,627 1,094,255 
NONCURRENT ASSETS:
Property and equipment, net127,367 120,630 
Intangible assets, net16,993 20,092 
Referral sources, net284,017 315,304 
Goodwill1,540,246 1,540,246 
Other noncurrent assets130,493 126,508 
Total noncurrent assets2,099,116 2,122,780 
TOTAL ASSETS $3,421,743 $3,217,035 
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable$610,779 $426,513 
Other current liabilities169,367 191,796 
Total current liabilities780,146 618,309 
NONCURRENT LIABILITIES:
Long-term debt, net of discount, deferred financing costs and current portion1,104,641 1,056,650 
Other noncurrent liabilities132,718 120,404 
Total noncurrent liabilities1,237,359 1,177,054 
Total liabilities2,017,505 1,795,363 
STOCKHOLDERS' EQUITY1,404,238 1,421,672 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$3,421,743 $3,217,035 


Schedule 2

OPTION CARE HEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)(UNAUDITED)
Three Months Ended
December 31,
Year Ended
December 31,
2024202320242023
NET REVENUE$1,346,418 $1,124,390 $4,998,202 $4,302,324 
COST OF REVENUE1,078,039 877,267 3,985,209 3,321,101 
GROSS PROFIT268,379 247,123 1,012,993 981,223 
OPERATING COSTS AND EXPENSES:
Selling, general and administrative expenses164,727 147,783 630,251 607,427 
Depreciation and amortization expense16,615 14,784 60,909 59,201 
Total operating expenses181,342 162,567 691,160 666,628 
OPERATING INCOME87,037 84,556 321,833 314,595 
OTHER INCOME (EXPENSE):
Interest expense, net(10,879)(12,432)(49,029)(51,248)
Other, net4,891 6,801 10,795 95,395 
Total other (expense) income(5,988)(5,631)(38,234)44,147 
INCOME BEFORE INCOME TAXES81,049 78,925 283,599 358,742 
INCOME TAX EXPENSE 20,916 21,748 71,776 91,652 
NET INCOME$60,133 $57,177 $211,823 $267,090 
Earnings per share, basic$0.36 $0.32 $1.23 $1.49 
Earnings per share, diluted$0.35 $0.32 $1.23 $1.48 
Weighted average common shares outstanding, basic168,816 176,055 171,567 178,973 
Weighted average common shares outstanding, diluted169,980 177,743 172,845 180,375 


Schedule 3

OPTION CARE HEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)(UNAUDITED)
Year Ended
December 31,
20242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $211,823 $267,090 
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization expense63,498 62,200 
Deferred income taxes - net12,656 12,766 
Other non-cash adjustments55,661 50,684 
Changes in operating assets and liabilities:
Accounts receivable, net(32,075)224 
Inventories(114,127)(51,000)
Accounts payable183,395 47,703 
Other(57,439)(18,372)
Net cash provided by operating activities323,392 371,295 
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment(35,606)(41,866)
Proceeds from sale of assets— 3,743 
Business acquisitions, net of cash acquired— (12,494)
Other investing activities(864)(5,889)
Net cash used in investing activities(36,470)(56,506)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of debt49,959 — 
Purchase of company stock and related excise taxes(252,726)(250,261)
Other financing activities(15,439)(14,865)
Net cash used in financing activities(218,206)(265,126)
NET INCREASE IN CASH AND CASH EQUIVALENTS68,716 49,663 
Cash and cash equivalents - beginning of the period343,849 294,186 
CASH AND CASH EQUIVALENTS - END OF PERIOD$412,565 $343,849 



Schedule 4
OPTION CARE HEALTH, INC.
RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES
(IN THOUSANDS)(UNAUDITED)
Three Months Ended 
 December 31,		Year Ended
December 31,
2024202320242023
Net income$60,133 $57,177 $211,823 $267,090 
Interest expense, net10,879 12,432 49,029 51,248 
Income tax expense20,916 21,748 71,776 91,652 
Depreciation and amortization expense17,469 15,777 63,498 62,200 
EBITDA109,397 107,134 396,126 472,190 
EBITDA adjustments
Stock-based incentive compensation expense8,523 7,571 36,143 30,479 
Loss on extinguishment of debt— — 377 — 
Restructuring, acquisition, integration and other (1)3,639 (3,103)11,143 (77,486)
Adjusted EBITDA$121,559 $111,602 $443,789 $425,183 
Net income$60,133 $57,177 $211,823 $267,090 
Intangible asset amortization expense8,596 8,629 34,405 34,381 
Stock-based incentive compensation expense8,523 7,571 36,143 30,479 
Restructuring, acquisition, integration and other (1)3,639 (3,103)11,143 (77,486)
Total pre-tax adjustments20,758 13,097 81,691 (12,626)
Tax adjustments (2)(5,356)(3,615)(20,668)3,220 
Adjusted net income$75,535 $66,659 $272,846 $257,684 
Earnings per share, diluted$0.35 $0.32 $1.23 $1.48 
Adjusted earnings per share, diluted$0.44 $0.38 $1.58 $1.43 
Weighted average common shares outstanding, diluted169,980 177,743 172,845 180,375 
(1) Restructuring, acquisition, integration and other for the year ended December 31, 2023 includes the Amedisys merger termination fee, net of merger-related expenses
(2) Tax adjustments for the three months and year ended December 31, 2024 and 2023 includes the estimated income tax effect on non-GAAP adjustments based on the effective tax rate