BTSG has completed an offering, with the final price set within the anticipated range of $21.50 to $22.24. The offering was managed jointly by Goldman Sachs and BofA, who served as the primary book-running managers for this financial event.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for BrightSpring Health Services Inc (BTSG, Financial) is $26.84 with a high estimate of $31.00 and a low estimate of $25.00. The average target implies an upside of 20.69% from the current price of $22.24. More detailed estimate data can be found on the BrightSpring Health Services Inc (BTSG) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, BrightSpring Health Services Inc's (BTSG, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
BTSG Key Business Developments
Release Date: May 02, 2025
- Total Revenue: $2.9 billion, 26% growth year-over-year.
- Pharmacy Solutions Revenue: $2.5 billion, 28% growth year-over-year.
- Provider Services Revenue: $346 million, 12% growth year-over-year.
- Adjusted EBITDA: $131 million, 28% growth year-over-year.
- Pharmacy Segment Script Volume Growth: 10% to 10.9 million scripts.
- Specialty and Infusion Revenue Growth: 33% year-over-year.
- Home and Community Pharmacy Revenue Growth: 14% year-over-year.
- Home Healthcare Revenue: $178 million, 21% growth year-over-year.
- Rehab Revenue: $70 million, 5% growth year-over-year.
- Personal Care Revenue: $98 million, 3% growth year-over-year.
- Gross Profit: $338 million, 16% growth year-over-year.
- Cash Flow from Operations: $102 million in the first quarter.
- Net Debt Outstanding: Approximately $2.5 billion with a leverage ratio of 3.87 times.
- 2025 Revenue Guidance: $12 billion to $12.5 billion.
- 2025 Adjusted EBITDA Guidance: $570 million to $585 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BrightSpring Health Services Inc (BTSG, Financial) reported a strong start to 2025 with first-quarter results exceeding expectations.
- Total company revenue grew by 26% year-over-year, reaching $2.9 billion.
- Pharmacy solutions revenue increased by 28% year-over-year, driven by strong performance in Onco360 and CareMed specialty pharmacy businesses.
- Adjusted EBITDA for the company grew by 28% compared to the same period last year, indicating improved operational efficiency.
- The company increased its total revenue and adjusted EBITDA guidance for 2025, reflecting confidence in continued growth.
Negative Points
- The company is facing regulatory scrutiny with a second request for review from the SEC regarding the planned divestiture of the community living business.
- There are uncertainties related to potential future pharma tariffs, which could impact the company's operations.
- The leap year in 2024 resulted in fewer days in Q1 2025, negatively impacting EBITDA by $3.7 million.
- Gross margin was impacted by a mix of revenue, with larger growth in the specialty pharmacy business, which carries lower than corporate average gross margins.
- The company is subject to potential impacts from the Inflation Reduction Act (IRA) and Medicaid discussions, although it currently does not foresee significant changes.
