10-Q

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

BrightSpring Health Services, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

(Unaudited)


	June 30, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	550,381	$	88,370
Accounts receivable, net of allowance for credit losses		1,139,420		989,719
Inventories		575,009		815,180
Prepaid expenses and other current assets		205,163		118,592
Current assets held for sale		—		882,189
Total current assets		2,469,973		2,894,050
Property and equipment, net of accumulated depreciation of $438,963 and $404,878 at June 30, 2026 and December 31, 2025, respectively		213,866		204,689
Goodwill		2,535,244		2,545,673
Intangible assets, net of accumulated amortization		514,424		557,555
Operating lease right-of-use assets, net		166,976		171,632
Other assets		85,234		39,712
Total assets	$	5,985,717	$	6,413,311
Liabilities, Redeemable Noncontrolling Interests, and Equity
Current liabilities:
Trade accounts payable	$	1,090,915	$	1,217,946
Accrued expenses		371,701		333,024
Current portion of obligations under operating leases		44,663		42,936
Current portion of obligations under financing leases		6,909		6,794
Current portion of long-term debt		41,445		52,340
Current liabilities held for sale		—		195,994
Total current liabilities		1,555,633		1,849,034
Obligations under operating leases, net of current portion		132,046		135,420
Obligations under financing leases, net of current portion		13,273		14,544
Long-term debt, net of current portion		2,149,315		2,455,204
Deferred income taxes, net		636		6,178
Long-term liabilities		76,612		66,565
Total liabilities		3,927,515		4,526,945
Redeemable noncontrolling interests		9,417		11,227
Shareholders’ equity:
Common stock, $0.01 par value, 1,500,000,000 shares authorized, 197,509,491 and 192,124,125 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	$	1,975	$	1,921
Preferred stock, $0.01 par value, 250,000,000 authorized, no shares issued and outstanding at June 30, 2026 and December 31, 2025		—		—
Additional paid-in capital		2,004,123		1,954,482
Retained earnings (accumulated deficit)		38,434		(74,647	)
Accumulated other comprehensive income (loss)		4,185		(6,691	)
Total shareholders’ equity		2,048,717		1,875,065
Noncontrolling interest		68		74
Total equity		2,048,785		1,875,139
Total liabilities, redeemable noncontrolling interests, and equity	$	5,985,717	$	6,413,311

See accompanying notes to the condensed consolidated financial statements.

BrightSpring Health Services, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)


	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
Revenues:
Products	$	3,407,173		$	2,790,101		$	6,578,522		$	5,322,272
Services		465,967			357,597			908,339			703,555
Total revenues		3,873,140			3,147,698			7,486,861			6,025,827
Cost of goods		3,108,992			2,556,402			5,979,567			4,884,617
Cost of services		271,402			216,444			532,326			427,989
Gross profit		492,746			374,852			974,968			713,221
Selling, general, and administrative expenses		362,355			326,295			723,128			613,925
Operating income		130,391			48,557			251,840			99,296
Interest expense, net		36,879			38,778			75,494			80,541
Income from continuing operations before income taxes		93,512			9,779			176,346			18,755
Income tax expense		6,908			1,238			15,459			998
Income from continuing operations, net of income taxes		86,604			8,541			160,887			17,757
(Loss) income from discontinued operations, net of income taxes		(2,395	)		19,001			71,932			38,795
Net income		84,209			27,542			232,819			56,552
Net loss attributable to noncontrolling interests included in continuing operations		(81	)		(666	)		(238	)		(1,198	)
Net income attributable to BrightSpring Health Services, Inc. and subsidiaries	$	84,290		$	28,208		$	233,057		$	57,750

Net income per common share (Note 10):
Basic income (loss) per share attributable to common shareholders:
Continuing operations	$	0.42		$	0.05		$	0.78		$	0.09
Discontinued operations	$	(0.01	)	$	0.09		$	0.35		$	0.20
Net income per share	$	0.41		$	0.14		$	1.13		$	0.29
Diluted income (loss) per share attributable to common shareholders:
Continuing operations	$	0.39		$	0.04		$	0.73		$	0.09
Discontinued operations	$	(0.01	)	$	0.09		$	0.32		$	0.18
Net income per share	$	0.38		$	0.13		$	1.05		$	0.27
Weighted average shares outstanding:
Basic		206,042			201,807			205,381			200,516
Diluted		220,276			216,336			221,191			214,963

See accompanying notes to the condensed consolidated financial statements.

BrightSpring Health Services, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

(In thousands)

(Unaudited)


	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
Net income	$	84,209		$	27,542		$	232,819		$	56,552
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(114	)		246			(206	)		208
Cash flow hedges:
Net change in fair value, net of tax (1)		5,896			614			11,858			722
Amounts reclassified to earnings, net of tax (2)		(332	)		(3,321	)		(776	)		(6,678	)
Total other comprehensive income (loss), net of tax		5,450			(2,461	)		10,876			(5,748	)
Total comprehensive income		89,659			25,081			243,695			50,804
Comprehensive loss attributable to redeemable noncontrolling interests		(86	)		(508	)		(245	)		(915	)
Comprehensive income (loss) attributable to noncontrolling interest		5			(158	)		7			(283	)
Comprehensive income attributable to BrightSpring Health Services, Inc. and subsidiaries	$	89,740		$	25,747		$	243,933		$	52,002

(1)

The income tax effects of the net change in fair value were $(1,914) and $(3,849) for the three and six months ended June 30, 2026, respectively, and $(201) and $(234) for the three and six months ended June 30, 2025, respectively.

(2)

The income tax effects of amounts reclassified to earnings were $108 and $252 for the three and six months ended June 30, 2026, respectively, and $1,080 and $2,167 for the three and six months ended June 30, 2025, respectively.

See accompanying notes to the condensed consolidated financial statements.

BrightSpring Health Services, Inc. and Subsidiaries

Condensed Consolidated Statements of Shareholders’ Equity

(In thousands, except share data)

(Unaudited)


	For the Three Months Ended June 30, 2026
	Common Stock						Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive (Loss) Income			Noncontrolling Interest		Total
	Shares			Amount
Balances at March 31, 2026		193,209,722		$	1,932		$	1,964,516		$	14,135		$	(1,265	)	$	63	$	1,979,381
Net income (1)		—			—			—			84,290			—			5		84,295
Other comprehensive income, net of tax		—			—			—			—			5,450			—		5,450
Share-based compensation		—			—			19,493			—			—			—		19,493
Exercise of stock options		2,562,315			25			20,298			—			—			—		20,323
Issuance of common stock for settlement of RSUs		256,489			3			(3	)		—			—			—		—
Tax effect of net share settlement of equity awards		(18,716	)		(1	)		(898	)		—			—			—		(899	)
Conversion of tangible equity units into common stock		2,526,146			25			(25	)		—			—			—		—
Share repurchase		(1,026,465	)		(9	)		—			(59,991	)		—			—		(60,000	)
Other		—			—			742			—			—			—		742
Balances at June 30, 2026		197,509,491		$	1,975		$	2,004,123		$	38,434		$	4,185		$	68	$	2,048,785


	For the Three Months Ended June 30, 2025
	Common Stock						Additional Paid-In Capital			Accumulated Deficit			Accumulated Other Comprehensive Loss			Noncontrolling Interest			Total
	Shares			Amount
Balances at March 31, 2025		175,183,434		$	1,752		$	1,880,099		$	(192,613	)	$	(1,869	)	$	(125	)	$	1,687,244
Net income (loss) (1)		—			—			—			28,208			—			(158	)		28,050
Other comprehensive loss, net of tax		—			—			—			—			(2,461	)		—			(2,461	)
Share-based compensation		—			—			22,802			—			—			—			22,802
Exercise of stock options		1,283,882			14			8,703			—			—			—			8,717
Issuance of common stock for settlement of RSUs		649,010			6			(6	)		—			—			—			—
Tax effect of net share settlement of equity awards		(60,999	)		(1	)		(1,744	)		—			—			—			(1,745	)
Balances at June 30, 2025		177,055,327		$	1,771		$	1,909,854		$	(164,405	)	$	(4,330	)	$	(283	)	$	1,742,607

(1)Net income (loss) to the Company for the three months ended June 30, 2026 and 2025 excludes ($86) and $(508), respectively, allocable to the redeemable noncontrolling interests for our joint venture arrangements.

BrightSpring Health Services, Inc. and Subsidiaries

Condensed Consolidated Statements of Shareholders’ Equity (continued)

(In thousands, except share data)

(Unaudited)


	For the Six Months Ended June 30, 2026
	Common Stock						Additional Paid-In Capital			(Accumulated Deficit) Retained Earnings			Accumulated Other Comprehensive (Loss) Income			Noncontrolling Interest			Total
	Shares			Amount
Balances at December 31, 2025		192,124,125		$	1,921		$	1,954,482		$	(74,647	)	$	(6,691	)	$	74		$	1,875,139
Net income (1)		—			—			—			233,057			—			7			233,064
Other comprehensive income, net of tax		—			—			—			—			10,876			—			10,876
Share-based compensation		—			—			23,169			—			—			—			23,169
Exercise of stock options		3,940,023			39			32,376			—			—			—			32,415
Issuance of common stock for settlement of RSUs		1,572,874			16			(16	)		—			—			—			—
Tax effect of net share settlement of equity awards		(162,405	)		(2	)		(6,605	)		—			—			—			(6,607	)
Conversion of tangible equity units into common stock		2,526,146			25			(25	)		—			—			—			—
Share repurchase		(2,491,272	)		(24	)		—			(119,976	)		—			—			(120,000	)
Other		—			—			742			—			—			(13	)		729
Balances at June 30, 2026		197,509,491		$	1,975		$	2,004,123		$	38,434		$	4,185		$	68		$	2,048,785


	For the Six Months Ended June 30, 2025
	Common Stock						Additional Paid-In Capital			Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interest			Total
	Shares			Amount
Balances at December 31, 2024		174,245,990		$	1,742		$	1,866,850		$	(222,155	)	$	1,418		$	—		$	1,647,855
Net income (loss) (1)		—			—			—			57,750			—			(283	)		57,467
Other comprehensive loss, net of tax		—			—			—			—			(5,748	)		—			(5,748	)
Share-based compensation		—			—			38,483			—			—			—			38,483
Exercise of stock options		1,320,135			14			9,048			—			—			—			9,062
Issuance of common stock for settlement of RSUs		1,701,546			17			(17	)		—			—			—			—
Tax effect of net share settlement of equity awards		(212,344	)		(2	)		(4,510	)		—			—			—			(4,512	)
Balances at June 30, 2025		177,055,327		$	1,771		$	1,909,854		$	(164,405	)	$	(4,330	)	$	(283	)	$	1,742,607

(1) Net income (loss) to the Company for the six months ended June 30, 2026 and 2025 excludes ($245) and $(915), respectively, allocable to the redeemable noncontrolling interests for our joint venture arrangements.

See accompanying notes to the condensed consolidated financial statements.

BrightSpring Health Services, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)


	For the Six Months Ended
	June 30,
	2026			2025
Operating activities:
Net income	$	232,819		$	56,552
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		80,517			84,000
Change in fair value of contingent consideration, net		—			2,003
Payment of contingent consideration in excess of acquisition date fair value		—			(1,500	)
Provision for credit losses		22,865			40,658
Amortization of deferred debt issuance costs		5,764			5,543
Share-based compensation		23,169			38,483
Deferred income taxes, net		(9,529	)		3,892
Gain on sale of discontinued operations		(101,868	)		—
Other		1,014			3,186
Change in operating assets and liabilities, net of acquisitions and dispositions:
Accounts receivable		(152,577	)		(112,756	)
Prepaid expenses and other current assets		(86,132	)		24,411
Inventories		239,989			11,473
Trade accounts payable		(87,503	)		53,277
Accrued expenses		27,951			(43,490	)
Other assets and liabilities		(29,620	)		(15,058	)
Net cash provided by operating activities	$	166,859		$	150,674
Investing activities:
Purchases of property and equipment	$	(50,576	)	$	(42,057	)
Acquisitions of businesses		(42,203	)		(6,754	)
Proceeds from sale of discontinued operations		810,908			—
Other		1,066			1,377
Net cash provided by (used in) investing activities	$	719,195		$	(47,434	)
Financing activities:
Long-term debt repayments	$	(320,491	)	$	(23,720	)
Repayments of the Revolving Credit Facility, net		—			(63,300	)
Payments of debt issuance costs		(3,378	)		—
Repurchases of shares of common stock		(120,000	)		—
Proceeds from shares issued under share-based compensation plan		32,415			9,062
Taxes paid related to net share settlement of equity awards		(6,607	)		(4,512	)
Purchase of redeemable noncontrolling interest		(267	)		(5,100	)
Payments of financing lease obligations		(5,822	)		(6,691	)
Net cash used in financing activities	$	(424,150	)	$	(94,261	)
Net increase in cash and cash equivalents		461,904			8,979
Cash and cash equivalents at beginning of period		88,477			61,253
Cash and cash equivalents at end of period	$	550,381		$	70,232
Cash and cash equivalents included in assets held for sale at end of period		—			162
Cash and cash equivalents included in continuing operations at end of period	$	550,381		$	70,070

See accompanying notes to the condensed consolidated financial statements.

BrightSpring Health Services, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (continued)

(In thousands)

(Unaudited)


	For the Six Months Ended
	June 30,
	2026		2025
Supplemental disclosures of cash flow information:
Cash paid for:
Interest, net	$	75,457	$	96,069
Income taxes, net of refunds	$	156,704	$	13,022
Supplemental schedule of non-cash investing and financing activities:
Financing lease obligations assumed	$	3,783	$	6,691
Purchases of property and equipment in accounts payable	$	3,666	$	4,103

Index to Notes to Condensed Consolidated Financial Statements


	Page

Note 1 - Significant Accounting Policies	11
Note 2 - Discontinued Operations	12
Note 3 - Revenue	14
Note 4 - Acquisitions	15
Note 5 - Goodwill and Intangible Assets	17
Note 6 - Debt and Derivatives	18
Note 7 - TEUs	20
Note 8 - Income Taxes	20
Note 9 - Detail of Certain Balance Sheet Accounts	21
Note 10 - Earnings Per Share	22
Note 11 - Segment Information	23

BrightSpring Health Services, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Significant Accounting Policies

Description of Business

BrightSpring Health Services, Inc. and its subsidiaries (“BrightSpring”, the “Company”, “we,” “us,” or “our”) is a leading home and community-based healthcare services platform, focused on delivering complementary pharmacy and provider services to medically complex patients. Our platform delivers clinical services and pharmacy solutions across Medicare, Medicaid, and commercially-insured populations.

On December 7, 2017, affiliates of Kohlberg Kravis Roberts & Co. L.P. (“KKR Stockholder”) and Walgreens Boots Alliance, Inc. (“WBA”) purchased PharMerica Corporation (“PharMerica”) and on March 5, 2019, expanded with the acquisition of BrightSpring Health Holdings Corp. The surviving entity was renamed BrightSpring Health Services, Inc. WBA sold their remaining ownership interests in the Company in 2025 through open market transactions and is no longer considered a related party of the Company. As a result of the registered secondary public offerings in 2025, the Company no longer qualifies as a “controlled company” under the Nasdaq Stock Market LLC listing standards.

On January 17, 2025, the Company entered into a purchase agreement to divest its community living services, home and community based waiver programs, and intermediate care facilities (the “Community Living business”). The transaction closed on March 30, 2026.

In March and June 2026, KKR Stockholder and certain management selling stockholders completed additional registered secondary public offerings of 20,000,000 and 14,999,771 shares of the Company’s common stock, respectively (collectively, the “2026 Secondary Offerings”). The Company did not sell any shares of common stock that were offered in the 2026 Secondary Offerings. The Company did not receive any proceeds from the 2026 Secondary Offerings, other than proceeds received in connection with the cash exercise of stock options by the management selling stockholders in connection with the 2026 Secondary Offerings. In connection with the March and June 2026 secondary public offerings, the Company concurrently purchased from the underwriter 1,464,807 and 1,026,465 shares of common stock, respectively. The price per share paid by the Company with respect to the concurrent share repurchases was equal to the price at which the underwriter purchased the shares from the selling stockholders in the 2026 Secondary Offerings. The par value of the shares repurchased and the amount paid to repurchase the shares in excess of the par value were recorded as common stock and retained earnings, respectively, in the unaudited condensed consolidated balance sheets.

Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts of BrightSpring Health Services, Inc. and its subsidiaries. The Company consolidates its majority-owned and controlled entities, including variable interest entities (“VIEs”) for which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated.

We record a noncontrolling interest for the allocable portion of income or loss and comprehensive income or loss to which the noncontrolling interest holders are entitled based upon their ownership share of the affiliate. The Company determined noncontrolling interests for certain of these VIEs to be redeemable noncontrolling interests, which are presented in the unaudited condensed consolidated balance sheets as redeemable noncontrolling interests.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly our financial position, our results of operations, and our cash flows in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting. Our results of operations for the interim periods presented are not necessarily indicative of the results of our operations for the entire year.

As discussed in Note 2, the Community Living business met the criteria to be reported as discontinued operations and held for sale during the first fiscal quarter of 2025. Therefore, the Company has reported the historical results of the Community Living business, including the results of operations and cash flows as discontinued operations for all periods presented herein, and related assets and liabilities, as held for sale as of December 31, 2025. Unless otherwise noted, all activities and amounts reported in the accompanying notes to the unaudited condensed consolidated financial statements relate to the continuing operations of the Company and exclude activities and amounts related to the Community Living business.

This report should be read in conjunction with our consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025, which includes information and disclosures not included herein. Certain

information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted from the interim financial information presented, as allowed by the rules and regulations of the Securities and Exchange Commission.

Use of Estimates

The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts and related disclosures. We rely on historical experience and on various other assumptions that we believe to be reasonable under the circumstances to make judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Significant estimates are involved in the valuation of accounts receivable, inventory, intangible assets, derivatives, contingent consideration, taxes, insurance reserves, share-based compensation, and goodwill. Actual amounts may differ from these estimates.

Commitments and Contingencies

The Company is party to various legal and/or administrative proceedings arising out of the operation of our programs and arising in the ordinary course of business. We record accruals for such contingencies to the extent that we conclude it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We do not believe the ultimate liability, if any, for outstanding proceedings or claims, individually or in the aggregate, in excess of amounts already provided, will have a material adverse effect on our consolidated financial condition, results of operations, or cash flows. It is reasonably possible that an adverse determination might have an impact on a particular period. While we believe our provision for legal contingencies is adequate, the outcome of legal proceedings is difficult to predict, and we may settle legal claims or be subject to judgments for amounts that exceed our estimates.

Related Party Transactions

There were no material related party transactions that meet the requirements for disclosure in the periods presented other than those disclosed elsewhere in these notes to the unaudited condensed consolidated financial statements.

Recently Adopted Accounting Standards

There were no new accounting standards adopted during the six months ended June 30, 2026.

Recently Issued Accounting Standards

In November 2024, the FASB issued Accounting Standards Update (“ASU”) 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which was further clarified in January 2025 through the issuance of ASU 2025-01. These ASUs require new financial statement disclosures to provide disaggregated information for certain types of expenses, including purchases of inventory, employee compensation, depreciation, and amortization in commonly presented expense captions such as cost of goods and services and selling, general, and administrative expenses. The amendments in these ASUs are effective for annual periods beginning after December 15, 2026, with early adoption permitted. The adoption of this guidance will have no impact on the Company’s consolidated financial condition or results of operations. The Company is currently evaluating the impact to the related disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which modernizes the accounting for internal-use software costs by removing all references to prescriptive and sequential software development stages. The new standard requires entities to consider whether significant development uncertainty has been resolved before starting to capitalize software costs and aligns disclosure requirements with Accounting Standards Codification (“ASC”) 360, Property, Plant, and Equipment. The ASU is effective for annual and interim reporting periods beginning after December 15, 2027, and can be applied prospectively, retrospectively, or using a modified transition method, with early adoption permitted. The Company is currently evaluating the impacts of this guidance on the consolidated financial statements and related disclosures.

2. Discontinued Operations

On January 17, 2025, BrightSpring entered into a definitive agreement to sell its Community Living business to National Mentor Holdings, Inc. (the “Purchaser”) for $835.0 million in cash upon closing, subject to certain post-closing adjustments. We entered into the transaction in order to streamline our service offerings and further focus on the senior and specialty populations. On March 30,

2026, the Company completed the transaction pursuant to the terms of the definitive agreement for cash proceeds of $810.9 million, resulting in a pre-tax gain on sale of $101.9 million.

The following table reconciles the gross proceeds with the gain on sale, net of tax for the sale of the Community Living business:


	For the Six Months Ended
	June 30,
	2026
Gross proceeds	$	835,000
Less: certain post-closing adjustments		12,617
Less: direct costs to sell		13,854
Less: carrying amount of Community Living business		706,661
Gain on sale of discontinued operations	$	101,868
Less: current and deferred tax impact		72,218
Net gain on sale of discontinued operations	$	29,650

The Company determined the divestiture of the Community Living business represents a strategic shift that will have a major effect on its business and concluded the criteria for classification as discontinued operations were met during the first fiscal quarter of 2025. Accordingly, the Community Living business is reported as discontinued operations in accordance with ASC 205-20, Discontinued Operations. The Community Living business was historically presented as a part of the Provider Services reportable segment.

In accordance with ASC 205-20, Allocation of Interest to Discontinued Operations, the Company elected to allocate interest expense to discontinued operations for the Company’s debt that is not directly attributed to the Community Living business. Interest expense was allocated based on a ratio of net assets held for sale to the sum of consolidated net assets and consolidated debt. In addition, upon closing of the divestiture, we entered into a transition services agreement (“TSA”) with the Purchaser to support the Purchaser's post-closing operations of the Community Living business by providing the Purchaser with certain transition services in exchange for service fees in the form of both fixed-price and pass through costs over the 18 months following the close of the transaction. Transition services primarily include finance and accounting, human resources, IT, facilities management, and compliance services. The fees associated with the services rendered under the TSA are presented in selling, general, and administrative expenses in the unaudited condensed consolidated statement of operations and are not material to our results of operations.

The financial results of the Community Living business are presented as (loss) income from discontinued operations on our unaudited condensed consolidated statements of operations. The following table presents the financial results of the Community Living business (in thousands):


	For the Three Months Ended					For the Six Months Ended
	June 30,					June 30,
	2026			2025		2026		2025
Services revenue	$	—		$	307,683	$	306,646	$	606,789
Cost of services		—			211,614		206,585		415,797
Gross profit		—			96,069		100,061		190,992
Selling, general, and administrative expenses		7,703			63,739		45,669		124,483
Operating (loss) income of discontinued operations		(7,703	)		32,330		54,392		66,509
Interest expense, net		—			7,590		6,677		15,497
(Loss) gain on sale of discontinued operations		(1,544	)		—		101,868		—
(Loss) income of discontinued operations before incomes taxes		(9,247	)		24,740		149,583		51,012
Income tax (benefit) expense of discontinued operations		(6,852	)		5,739		77,651		12,217
(Loss) income from discontinued operations, net of income taxes	$	(2,395	)	$	19,001	$	71,932	$	38,795

The following table presents the aggregate carrying amounts of assets and liabilities held for sale for the Community Living business as of December 31, 2025 in the unaudited condensed consolidated balance sheet (in thousands):


Assets
Current assets:
Cash and cash equivalents	$	107
Accounts receivable, net of allowance for credit losses		136,875
Inventories		3,294
Prepaid expenses and other current assets		2,717
Total current assets held for sale		142,993
Property and equipment, net of accumulated depreciation of $104,314		83,465
Goodwill		307,640
Intangible assets, net of accumulated amortization		216,192
Operating lease right-of-use assets, net		129,005
Other assets		2,894
Total assets held for sale	$	882,189
Liabilities
Current liabilities:
Trade accounts payable	$	25,081
Accrued expenses		59,038
Current portion of obligations under operating leases		32,749
Current portion of obligations under financing leases		7,691
Total current liabilities held for sale		124,559
Obligations under operating leases, net of current portion		57,771
Obligations under financing leases, net of current portion		12,766
Deferred income taxes, net		390
Long-term liabilities		508
Total liabilities held for sale	$	195,994

The following table presents the significant non-cash items and purchases of property and equipment for the discontinued operations that are included in the accompanying unaudited condensed consolidated statements of cash flows (in thousands):


	For the Six Months Ended
	June 30,
	2026			2025
Cash flows from operating activities of discontinued operations:
Depreciation and amortization	$	—		$	1,329
Share-based compensation		(9,296	)		6,501
Gain on sale of discontinued operations		(101,868	)		—

Cash flows used in investing activities of discontinued operations:
Purchases of property and equipment		3,085			5,868

3. Revenue

The Company is substantially dependent on revenues received under contracts with federal, state, and local government agencies. Operating funding sources are generally earned from Medicaid, Medicare, commercial insurance reimbursement, and from private and other payors. There is no single customer whose revenue was 10% or more of our consolidated revenue during the periods presented. The following tables set forth revenue by payor type (in millions):


	Pharmacy Solutions
	For the Three Months Ended June 30,										For the Six Months Ended June 30,
	2026					2025					2026					2025
	Revenue		% of Revenue			Revenue		% of Revenue			Revenue		% of Revenue			Revenue		% of Revenue
Commercial insurance	$	1,053.5		27.2	%	$	742.0		23.6	%	$	2,012.9		26.9	%	$	1,416.5		23.5	%
Medicaid		339.3		8.8	%		266.2		8.5	%		647.9		8.7	%		504.4		8.4	%
Medicare Part A		136.3		3.5	%		138.9		4.4	%		274.0		3.7	%		279.3		4.6	%
Medicare Part B		18.3		0.5	%		18.7		0.6	%		38.6		0.5	%		38.2		0.6	%
Medicare Part C		653.7		16.9	%		555.6		17.7	%		1,256.1		16.8	%		1,043.3		17.3	%
Medicare Part D		1,149.9		29.7	%		1,008.4		32.0	%		2,224.0		29.7	%		1,919.3		31.9	%
Private & other		56.1		1.4	%		60.3		1.8	%		125.0		1.6	%		121.3		2.0	%
	$	3,407.1		88.0	%	$	2,790.1		88.6	%	$	6,578.5		87.9	%	$	5,322.3		88.3	%


	Provider Services
	For the Three Months Ended June 30,										For the Six Months Ended June 30,
	2026					2025					2026					2025
	Revenue		% of Revenue			Revenue		% of Revenue			Revenue		% of Revenue			Revenue		% of Revenue
Commercial insurance	$	59.0		1.5	%	$	44.1		1.4	%	$	113.9		1.5	%	$	85.5		1.4	%
Medicaid		97.3		2.5	%		88.5		2.8	%		194.4		2.6	%		173.6		2.9	%
Medicare Part A		173.5		4.5	%		125.8		4.0	%		344.7		4.6	%		248.2		4.1	%
Medicare Part B		12.3		0.3	%		1.4		0.0	%		13.8		0.2	%		2.9		0.0	%
Medicare Part C		66.8		1.7	%		34.6		1.1	%		131.4		1.8	%		67.2		1.1	%
Private & other		57.1		1.5	%		63.2		2.1	%		110.2		1.4	%		126.1		2.2	%
	$	466.0		12.0	%	$	357.6		11.4	%	$	908.4		12.1	%	$	703.5		11.7	%


	Consolidated
	For the Three Months Ended June 30,										For the Six Months Ended June 30,
	2026					2025					2026					2025
	Revenue		% of Revenue			Revenue		% of Revenue			Revenue		% of Revenue			Revenue		% of Revenue
Commercial insurance	$	1,112.5		28.7	%	$	786.1		25.0	%	$	2,126.8		28.4	%	$	1,502.0		24.9	%
Medicaid		436.6		11.3	%		354.7		11.3	%		842.3		11.3	%		678.0		11.3	%
Medicare Part A		309.8		8.0	%		264.7		8.4	%		618.7		8.3	%		527.5		8.7	%
Medicare Part B		30.6		0.8	%		20.1		0.6	%		52.4		0.7	%		41.1		0.6	%
Medicare Part C		720.5		18.6	%		590.2		18.8	%		1,387.5		18.6	%		1,110.5		18.4	%
Medicare Part D		1,149.9		29.7	%		1,008.4		32.0	%		2,224.0		29.7	%		1,919.3		31.9	%
Private & other		113.2		2.9	%		123.5		3.9	%		235.2		3.0	%		247.4		4.2	%
	$	3,873.1		100.0	%	$	3,147.7		100.0	%	$	7,486.9		100.0	%	$	6,025.8		100.0	%

Refer to Note 11 for the disaggregation of revenue by reportable segment.

4. Acquisitions

2026 Acquisitions

There were no acquisitions completed during the six months ended June 30, 2026.

2025 Acquisitions

During the year ended December 31, 2025, we completed three acquisitions within the Provider Services segment for aggregate consideration net of cash acquired of $247.0 million. We entered into these transactions in order to expand our services and geographic offerings. The operating results of these acquisitions are included in our unaudited condensed consolidated financial statements from the respective dates of the acquisition.

Amedisys and LHC Branches Acquisition

The Company entered into a purchase agreement with Amedisys, Inc., UnitedHealth Group Incorporated and certain of their respective subsidiaries, to purchase certain Amedisys home health and hospice care centers and certain UnitedHealth Group care centers (the “Amedisys and LHC Branches Acquisition”), which is comprised of 110 branches, for a total purchase price of $246.4 million, net of cash acquired. On December 1, 2025 and December 31, 2025, the Company closed on the acquisition of 103 branches and 4 branches, respectively, as a part of the Amedisys and LHC Branches Acquisition for aggregate consideration of $238.5 million net of cash acquired, of which $42.2 million was paid in the first fiscal quarter of 2026. The closing of the remaining three branches is expected to occur in fiscal year 2026, subject to customary regulatory approvals and other closing conditions.

Upon closing, we entered into a one-year TSA with the sellers to support our post-closing operations of the Amedisys and LHC Branches Acquisition. The sellers will continue to provide certain transition services in exchange for fixed-price service fees. Transition services primarily include finance and accounting, human resources, IT, and legal and compliance services. The fees associated with the services rendered under the TSA are not material to our results of operations and are recorded within selling, general, and administrative expenses in our unaudited condensed consolidated statements of operations.

The Amedisys and LHC Branches Acquisition provides home health and hospice care services through several legal entities in 18 states, of which the branches in 17 states have been acquired as of June 30, 2026. Its results are consolidated within the Provider Services reportable segment. The allocation of the purchase price is provisional as of June 30, 2026. Provisional amounts primarily relate to the valuation of intangible assets, certain lease right-of-use assets and lease liabilities, working capital accounts (accounts receivable and certain accruals), and the valuation of redeemable noncontrolling interests. The provisional status is due to pending third‑party valuations, receipt of additional information from the sellers, and completion of certain closing procedures. We expect to complete the purchase price allocation no later than December 1, 2026. During the measurement period, we will record adjustments to provisional amounts with a corresponding adjustment to goodwill, reflecting facts and circumstances that existed as of the acquisition dates. The following table summarizes the consideration paid (in thousands) for the Amedisys and LHC Branches Acquisition and the provisional fair value of the assets acquired and the liabilities assumed at the respective acquisition dates.


Accounts receivable	$	35,456
Prepaid expenses and other current assets		32
Property and equipment		5,633
Goodwill		164,753
Intangible assets		62,897
Operating lease right-of-use assets		12,604
Other assets		88
Trade accounts payable		1,881
Accrued expenses		12,313
Current portion of obligations under operating leases		4,177
Current portion of obligations under financing leases		1,797
Obligations under operating leases, net of current portion		8,427
Obligations under financing leases, net of current portion		3,587
Long-term liabilities		2,773
Redeemable noncontrolling interests		8,084
Noncontrolling interest		(35	)
Aggregate purchase price, net of cash acquired	$	238,459

The Company acquired eight joint ventures as a part of the transaction which are recorded either as redeemable noncontrolling interests or noncontrolling interest on the unaudited condensed consolidated balance sheets based on the nature of the joint venture. During the second fiscal quarter of 2026, the Company purchased the remaining redeemable noncontrolling interest in one of the joint ventures.

The fair value of acquired licenses of $62.9 million was based upon a third-party valuation, of which $56.0 million were assigned an indefinite life. The definite-lived licenses have an estimated weighted average useful life of 10.0 years. We expect all of the goodwill will be deductible for tax purposes. The Company believes the resulting amount of goodwill reflects its expectation of synergistic benefits of the acquisition.

The Amedisys and LHC Branches Acquisition contributed $77.9 million and $156.4 million in revenue during the three and six months ended June 30, 2026, respectively. The Amedisys and LHC Branches Acquisition contributed $6.8 million and $14.2 million

in operating income during the three and six months ended June 30, 2026, respectively. The Amedisys and LHC Branches Acquisition was not completed until the fourth fiscal quarter of 2025; as such it did not contribute any revenue or operating income during the three and six months ended June 30, 2025.

The following table contains the unaudited pro forma consolidated financial information, assuming that the Amedisys and LHC Branches Acquisition transaction closed on January 1, 2025 (in thousands):


	For the Three Months Ended		For the Six Months Ended
	June 30,		June 30,
	2025		2025
Revenue	$	3,236,252	$	6,199,846
Operating income	$	52,101	$	112,825
Net income from continuing operations attributable to BrightSpring Health Services, Inc. and subsidiaries	$	11,795	$	28,832

These pro forma results include adjustments for current factors that would affect the business, including non-recurring transaction costs, depreciation, amortization of acquired intangible assets, and income taxes based on the Company’s statutory tax rate. The unaudited pro forma financial information is not necessarily indicative of either future results of operations or results of operations that might have been achieved had the acquisition been consummated as of January 1, 2025 and does not reflect any operating efficiencies and cost savings that may be realized from the integration of the acquisition.

Others

Aggregate consideration for the two other acquisitions completed in 2025 was approximately $8.5 million. No cash was acquired as a part of these transactions. The operating results of the acquisitions are not material to our results of operations.

The Company expects to finalize the purchase price allocation for the 2025 acquisitions prior to the one-year anniversary date of each acquisition. During the three and six months ended June 30, 2025, the Company incurred $8.3 million and $8.9 million, respectively, of transaction costs related to all 2025 acquisitions, including those acquisitions completed in subsequent quarters of 2025. These costs are included in selling, general, and administrative expenses in our unaudited condensed consolidated statements of operations.

5. Goodwill and Intangible Assets

A summary of changes to goodwill, by reportable segment, is as follows (in thousands):


	Goodwill
	Pharmacy Solutions		Provider Services			Total
Goodwill at January 1, 2026*	$	841,052	$	1,704,621		$	2,545,673
Measurement period adjustments		—		(10,289	)		(10,289	)
Foreign currency adjustments		—		(140	)		(140	)
Goodwill at June 30, 2026*	$	841,052	$	1,694,192		$	2,535,244

* For the periods presented, the carrying amount of goodwill is presented net of accumulated impairment losses of $40.9 million, which were incurred in fiscal year 2022.

Intangible assets are as follows (in thousands):


	June 30, 2026						December 31, 2025
	Gross		Accumulated Amortization		Net Carrying Value		Gross		Accumulated Amortization		Net Carrying Value		Life (Years)
Customer relationships	$	501,510	$	381,851	$	119,659	$	502,160	$	356,146	$	146,014	5-20
Trade names		318,768		165,644		153,124		318,768		154,601		164,167	2-20
Licenses		67,120		21,011		46,109		67,395		18,886		48,509	10-20
Doctor/payor network		3,300		2,922		378		5,650		4,987		663	5-8
Covenants not to compete		3,834		2,438		1,396		6,654		4,717		1,937	2-7
Other intangible assets		10,940		8,707		2,233		10,940		7,925		3,015	5-7
Total definite-lived assets	$	905,472	$	582,573	$	322,899	$	911,567	$	547,262	$	364,305
Licenses		191,525		—		191,525		193,250		—		193,250	Indefinite
Total intangible assets	$	1,096,997	$	582,573	$	514,424	$	1,104,817	$	547,262	$	557,555

Amortization expense for the three and six months ended June 30, 2026 was $22.4 million and $43.1 million, respectively, as compared to $23.6 million and $47.0 million for the three and six months ended June 30, 2025, respectively.

6. Debt and Derivatives

The table below summarizes the total outstanding debt of the Company (in thousands):


	June 30, 2026					December 31, 2025
	Rate			Amount		Rate			Amount
First Lien Incremental Term Loan Tranche B-6 - payable to lenders at SOFR plus applicable margin		5.62	%	$	2,214,872		—		$	—
First Lien Incremental Term Loan Tranche B-5 - payable to lenders at SOFR plus applicable margin		—			—		6.22	%		2,521,255
Revolving Credit Loans - payable to lenders at SOFR plus applicable margin		5.62	%		—		6.47	%		—
Swingline/Base Rate - payable to lenders at ABR plus applicable margin		7.75	%		—		8.50	%		—
Amortizing Notes (1)					19,278					31,360
Notes payable and other					15,103					17,129
Total debt					2,249,253					2,569,744
Less: debt issuance costs, net					58,493					62,200
Total debt, net of debt issuance costs					2,190,760					2,507,544
Less: current portion of long-term debt					41,445					52,340
Total long-term debt, net of current portion				$	2,149,315				$	2,455,204

(1)

See Note 7 for discussion of Amortizing Notes.

We are required to disclose the fair value of financial instruments for which it is practicable to estimate the fair value, even though these instruments are not recognized at fair value in the consolidated balance sheets. The following table presents the carrying value and estimated fair values of the Company’s debt obligations as of June 30, 2026 (in millions):


			Fair Value at Reporting Date Using
Financial Instrument	Carrying Value as of June 30, 2026		Markets for Identical Item (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
First Lien Term Loan	$	2,214,872	$	—	$	2,214,872	$	—
Amortizing Notes		19,278		—		19,302		—
Total debt instruments	$	2,234,150	$	—	$	2,234,174	$	—

The following discussion summarizes the debt agreements and related modification for the six months ended June 30, 2026 and the year ended December 31, 2025.

First Lien Credit Agreement

On March 5, 2019, the Company entered into a First Lien Credit Agreement (the “First Lien”), with Morgan Stanley Senior Funding, Inc., as the Administrative Agent and the Collateral Agent.

On December 11, 2024, we amended the First Lien to refinance the outstanding principal by establishing a Tranche B-5 Term Loan (“Tranche B-5”) in an aggregate principal amount of $2,553.2 million at a rate equal to Secured Overnight Financing Rate (“SOFR”) plus 2.50% or Alternate Base Rate (“ABR”) plus 1.50% with a maturity date of February 21, 2031. Principal payments were due on the last business day of each quarter, which commenced in the first fiscal quarter of 2025 and equated to 0.25% of the principal at issuance, with a balloon payment due February 21, 2031.

On May 28, 2026, we used a portion of the net proceeds received from the Community Living divestiture to repay $300.0 million of the borrowing under Tranche B-5 and amended the First Lien to establish a new Tranche B-6 Term Loan (“Tranche B-6”) in an aggregate principal amount of $2,214.9 million. The proceeds from Tranche B-6 borrowings were used to refinance the equivalent amount of the remaining Tranche B-5, after the aforementioned debt paydown, at a rate equal to SOFR plus 2.00% or ABR plus 1.00% with a maturity date of February 21, 2031. The transaction was accounted for as a debt modification. Principal payments are due on the last business day of each quarter, which will commence in the third fiscal quarter of 2026 and equate to 0.25% of the principal at issuance, with a balloon payment due February 21, 2031.

Revolving Credit Facility

The First Lien also extends credit in the form of a Revolving Credit Facility with a borrowing capacity of $475.0 million (the “Revolver”), of which up to $50.0 million is available as swingline loans and up to $82.5 million is available as letters of credit (the “LC Sublimit”). The Revolver will mature on June 30, 2028. In connection with the First Lien debt modification on May 28, 2026, borrowings of the Revolver bear interest at a rate equal to SOFR (with a floor of 0.00%) plus 2.00% for the Revolving Credit Loans or ABR (with a floor of 0.00%) plus 1.00% for the Swingline Loans. Prior to the debt modification, borrowings bore interest at a rate equal to SOFR (with a floor of 0.00%) plus 2.75% for the Revolving Credit Loans and ABR (with a floor of 0.00%) plus 1.75% for the Swingline Loans. As of June 30, 2026 and December 31, 2025, the Company had $475.0 million of borrowing capacity available under the Revolver as there were no borrowings under the Revolver or letters of credit outstanding.

The Company’s First Lien also provides for an additional $65.0 million of letter of credit commitments (the “LC Facility”), which are not subject to the LC Sublimit and do not reduce the Revolver borrowing capacity. As of June 30, 2026, there were $63.9 million of letters of credit outstanding under the LC Facility, resulting in an available borrowing capacity of $1.1 million. As of December 31, 2025, there were $62.8 million of letters of credit outstanding under the LC Facility, resulting in an available borrowing capacity of $2.2 million.

Derivative Financial Instruments


	Notional Amount as of
Financial Institution	June 30, 2026		December 31, 2025		Effective Dates	Fixed Rates
Credit Agricole Corporate and Investment Bank	$	500	$	500	1-year period ending September 30, 2026		3.72500	%
Mizuho Capital Markets		500		500	1-year period ending September 30, 2026		3.61121	%
Credit Agricole Corporate and Investment Bank		250		250	3-year period ending September 30, 2028		3.33150	%
Morgan Stanley		250		250	3-year period ending September 30, 2028		3.17700	%
Existing contracts	$	1,500	$	1,500

Mizuho Capital Markets	$	500	$	500	2-year period ending September 30, 2028		3.20220	%
Forward starting contracts (1)	$	500	$	500

(1)

During the fourth fiscal quarter of 2025, we entered into a forward starting interest rate swap agreement, with a $500 million notional amount, to hedge the cash flow risk of variability in interest payment on our variable rate borrowings. The effective date of the forward starting interest rate swap agreement is September 30, 2026. As of June 30, 2026, this contract meets the criteria of a cash flow hedge.

The net fair value of the cash flow hedges as of June 30, 2026 and December 31, 2025 was a $14.3 million asset and a $0.4 million liability, respectively, and is reflected in prepaid expenses and other current assets, other assets, accrued expenses and long-term liabilities, as applicable, in the unaudited condensed consolidated balance sheets. Refer to Note 9 for details. The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models. The key inputs for the valuation models are quoted market prices, interest rates, forward yield curves, and credit risk adjustments that are necessary to reflect the probability of default by the counterparty or us.

Amounts reported in accumulated other comprehensive income (“AOCI”) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. Net interest received, including payments made or received under the cash flow hedges, was $0.4 million and $1.0 million for the three and six months ended June 30, 2026, respectively, as compared to $4.4 million and $8.8 million for the three and six months ended June 30, 2025, respectively. The Company expects approximately $6.5 million of pre-tax gains to be reclassified out of AOCI into earnings within the next twelve months.

The debt modification did not impact the effectiveness of the cash flow hedge arrangements outstanding as of June 30, 2026.

7. Tangible Equity Units(“TEUs”)

Concurrently with the IPO in 2024, we issued 8,000,000 TEUs, which have a stated amount of $50.00 per unit. Each TEU is comprised of a prepaid stock purchase contract (“Purchase Contract”) and a senior amortizing note (“Amortizing Note”) due February 1, 2027, each issued by the Company. Each TEU may be separated by a holder into its constituent Purchase Contract and Amortizing Note, each of which is considered a freestanding financial instrument. The proceeds from the issuance were allocated to equity and debt based on the relative fair value of the respective components of each TEU.

The value allocated to the Purchase Contract is reflected net of issuance costs in additional paid-in capital. The value allocated to the Amortizing Notes is reflected in long-term debt, with payments expected in the next twelve months reflected in current portion of long-term debt, in the unaudited condensed consolidated balance sheets. The long-term portion of the Amortizing Notes as of December 31, 2025 was $6.6 million. Because the final installment payment date of February 1, 2027 is within one year of June 30, 2026, the entire carrying amount of the Amortizing Notes was classified within current portion of long-term debt as of June 30, 2026. The current portion of the Amortizing Notes as of June 30, 2026 and December 31, 2025 was $19.3 million and $24.8 million, respectively. Issuance costs related to the Amortizing Notes are reflected as a reduction of the carrying amount and are amortized through the maturity date using the effective interest rate method.

Amortizing Notes

The Company pays equal quarterly cash installments of $0.8438 per Amortizing Note on February 1, May 1, August 1 and November 1, commencing on May 1, 2024, except for the May 1, 2024 installment payment, which was $0.8531 per Amortizing Note, with a final installment payment date of February 1, 2027. In the aggregate, the annual quarterly cash installments are the equivalent of 6.75% per year. Each installment payment constitutes a payment of interest and a partial repayment of principal. The Company paid $6.7 million and $13.5 million in TEU installment payments during the three and six months ended June 30, 2026, respectively, as compared to $6.7 million and $13.5 million during the three and six months ended June 30, 2025, respectively. The Amortizing Notes rank equally in right of payment with all other existing and future unsecured senior indebtedness and rank senior to all of our existing and future indebtedness, if any, that is subordinated to the Amortizing Notes.

Purchase Contracts

At any time prior to the second scheduled trading day immediately preceding February 1, 2027, a holder may elect to settle its Purchase Contract early, in whole or in part, at an early settlement rate equal to the minimum settlement rate. The Company has the right to settle the Purchase Contracts on or after November 1, 2024, in whole but not in part, on a date fixed by it at an early mandatory settlement rate equal to the maximum settlement rate, subject to certain exceptions. During the three and six months ended June 30, 2026, 2,526,146 TEUs were converted at the holder’s option. During the three and six months ended June 30, 2025, no TEUs were converted at the holder’s option.

Unless settled earlier at the holder’s option or at the Company’s election, each Purchase Contract will, subject to postponement in certain limited circumstances, automatically settle on February 1, 2027 for a number of shares of our common stock, subject to certain anti-dilution adjustments, based upon the 20-day volume-weighted average price of our common stock.

The Purchase Contracts are mandatorily convertible into a minimum of 26.2 million shares or a maximum of 30.8 million shares of our common stock on the mandatory settlement date (unless redeemed by us or settled earlier at the unit holder's option). The 26.2 million minimum shares are included in the calculation of basic weighted average shares outstanding. The difference between the minimum and maximum shares represents potentially dilutive securities, which are included in the calculation of diluted weighted average shares outstanding to the extent that the average applicable market value is equal to or greater than $13.00 but is less than or equal to $15.28 during the period (see Note 10).

8. Income Taxes

The provision for income taxes is attributable to U.S federal, state, and foreign income taxes. The Company’s effective tax rate used for interim periods is based on an estimated annual effective tax rate and includes the tax effect of items required to be recorded discretely in the interim periods in which those items occur.

A reconciliation of the Company’s effective tax rate is as follows:


	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
Estimated annual effective tax rate before discrete items		25.4	%		27.1	%		25.4	%		26.4	%
Discrete items recognized		(18.0	)%		(14.4	)%		(16.6	)%		(21.1	)%
Effective tax rate recognized in the statements of operations		7.4	%		12.7	%		8.8	%		5.3	%

During the three and six months ended June 30, 2026 and 2025, the Company’s effective tax rates were lower than the U.S. federal income tax rate, primarily due to excess tax benefits recognized on share-based compensation awards. Excess tax benefits totaled $16.9 million and $29.3 million for the three and six months ended June 30, 2026, respectively, compared to $1.4 million and $3.7 million for the three and six months ended June 30, 2025. These benefits are recognized as discrete tax items in the periods in which awards vest or are exercised and can vary significantly based on the Company’s stock price and employee activity. The favorable impact of these benefits was partially offset by permanent tax adjustments related to compensation that is nondeductible under Section 162(m) of the Internal Revenue Code.

9. Detail of Certain Balance Sheet Accounts

Prepaid expenses and other current assets consist of the following (in thousands):


	June 30, 2026		December 31, 2025
Non-trade receivables	$	61,709	$	38,196
Income tax receivable		49,050		864
Rebate receivable		45,393		32,407
Inventory returns receivable		11,594		11,019
Dues and subscriptions		11,573		7,588
Prepaid insurance		5,440		13,255
Other prepaid expenses and current assets		20,404		15,263
Total prepaid expenses and other current assets	$	205,163	$	118,592

Other assets consist of the following (in thousands):


	June 30, 2026		December 31, 2025
Insurance recoveries	$	40,760	$	7,251
Interest rate swaps		14,167		1,181
Other investments		7,544		7,481
Cloud computing		6,863		6,017
Deposits		5,816		5,722
Deferred compensation		5,022		4,702
Notes receivable		1,940		4,012
Other assets		3,122		3,346
Total other assets	$	85,234	$	39,712

Accrued expenses consist of the following (in thousands):


	June 30, 2026		December 31, 2025
Wages and payroll taxes	$	153,232	$	131,162
Compensated absences		35,152		31,543
Health insurance reserves		28,011		15,389
Workers compensation insurance reserves		19,992		24,897
Legal settlements and professional fees		18,569		10,525
Checks in excess of cash balance		17,731		34,824
General and professional liability insurance reserves		16,376		7,696
Deferred revenue		13,083		9,039
Property insurance reserves		8,085		11,170
Automobile insurance reserves		6,529		5,585
Taxes other than income taxes		4,243		3,506
Other		50,698		47,688
Total accrued expenses	$	371,701	$	333,024

Long-term liabilities consist of the following (in thousands):


	June 30, 2026		December 31, 2025
General and professional liability insurance reserves	$	37,219	$	25,032
Workers compensation insurance reserves		24,591		25,369
Automobile insurance reserves		7,795		9,849
Deferred compensation		5,022		4,702
Other		1,985		1,613
Total long-term liabilities	$	76,612	$	66,565

10. Earnings Per Share (“EPS”)

Basic net income (loss) per share of common stock excludes dilution and is reported separately for continuing operations and discontinued operations. Basic net income (loss) per share of common stock for continuing operations and discontinued operations is calculated by dividing net income (loss) from continuing operations and discontinued operations attributable to common shareholders by the weighted average number of shares outstanding for the reporting period. Diluted net income per share of common stock is computed by giving effect to the weighted average of all potentially dilutive common stock. In periods of net loss, no potentially dilutive common shares are included in the diluted shares outstanding as the effect is anti-dilutive.

The number of additional shares of common stock related to restricted stock units (“RSUs”) and stock option awards is calculated using the treasury stock method, if dilutive.

For the three and six months ended June 30, 2026 and 2025, the TEUs were assumed to be outstanding at the minimum settlement amount for weighted-average shares for basic EPS. For the three and six months ended June 30, 2026 and 2025, the Company’s average applicable market value was greater than $15.28, resulting in no dilutive impact to EPS for TEUs. See Note 7 for further discussion of TEUs.

The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common shareholders (in thousands, except per share amounts):


	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
Numerator:
Net income from continuing operations	$	86,604		$	8,541		$	160,887		$	17,757
Less: Net loss attributable to noncontrolling interests		(81	)		(666	)		(238	)		(1,198	)
Net income from continuing operations attributable to common shareholders		86,685			9,207			161,125			18,955
Net (loss) income from discontinued operations		(2,395	)		19,001			71,932			38,795
Net income attributable to common shareholders	$	84,290		$	28,208		$	233,057		$	57,750

Denominator:
Weighted-average shares outstanding - basic		206,042			201,807			205,381			200,516

Effect of dilutive securities:
Stock options		8,947			8,098			9,468			8,167
RSUs		5,287			6,431			6,342			6,280
TEUs		—			—			—			—
Weighted-average shares outstanding - diluted		220,276			216,336			221,191			214,963

Basic income (loss) per share attributable to common shareholders:
Continuing operations	$	0.42		$	0.05		$	0.78		$	0.09
Discontinued operations	$	(0.01	)	$	0.09		$	0.35		$	0.20
Net income per share	$	0.41		$	0.14		$	1.13		$	0.29

Diluted income (loss) per share attributable to common shareholders:
Continuing operations	$	0.39		$	0.04		$	0.73		$	0.09
Discontinued operations	$	(0.01	)	$	0.09		$	0.32		$	0.18
Net income per share	$	0.38		$	0.13		$	1.05		$	0.27

There were no potentially dilutive common share equivalents excluded from the computation of diluted net income (loss) per share for the three and six months ended June 30, 2026. For the three and six months ended June 30, 2025, there were an immaterial number of potentially dilutive common share equivalents excluded from the computation of diluted net income (loss) per share because their effect would have been anti-dilutive.

11. Segment Information

The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer, who evaluates the performance of our segments and allocates resources based on segment EBITDA. Segment EBITDA is used as the key profitability measure when we set our annual operating plan for each segment, is the metric with which our CODM assesses segment results, and is a key component of our annual variable compensation plans. Segment EBITDA is commonly used as an analytical indicator within the health care industry and is utilized in the evaluation of segment operating performance as it is a profit measure that is generally within the control of the operating segments.

For all segments, the CODM uses segment EBITDA in the annual budgeting and monthly forecasting process. The CODM considers actual-to budget and actual-to current forecast variances for segment EBITDA on a monthly basis for evaluating performance of each segment and making decisions about allocating capital and other resources to each segment.

Segment amounts exclude certain expenses not specifically identifiable to the segments for functions performed in a centralized manner, which include accounting, finance, human resources, legal, information technology, corporate office support, and overall corporate management. Segment assets and capital expenditures are not provided to the Company’s CODM and, therefore, are not disclosed.

The following tables set forth information about the Company’s reportable segments, along with the items necessary to reconcile the segment information to the totals reported in the Company’s unaudited condensed consolidated statements of operations as follows (in thousands):


	For the Three Months Ended June 30, 2026
	Pharmacy Solutions		Provider Services		Total Segments
Products revenue	$	3,407,173	$	—	$	3,407,173
Services revenue		—		465,967		465,967
Cost of drugs		2,916,899		—		2,916,899
Cost of services		—		271,402		271,402
Other direct costs (1)		192,093		—		192,093
Segment selling, general, and administrative expenses (2)		143,612		128,515		272,127
Segment depreciation and amortization expense (3)		25,480		8,811		34,291
Segment EBITDA	$	180,049	$	74,861	$	254,910


	For the Three Months Ended June 30, 2025
	Pharmacy Solutions		Provider Services		Total Segments
Products revenue	$	2,790,101	$	—	$	2,790,101
Services revenue		—		357,597		357,597
Cost of drugs		2,377,477		—		2,377,477
Cost of services		—		216,444		216,444
Other direct costs (1)		178,925		—		178,925
Segment selling, general, and administrative expenses (2)		136,040		91,871		227,911
Segment depreciation and amortization expense (3)		27,033		7,174		34,207
Segment EBITDA	$	124,692	$	56,456	$	181,148


	For the Six Months Ended June 30, 2026
	Pharmacy Solutions		Provider Services		Total Segments
Products revenue	$	6,578,522	$	—	$	6,578,522
Services revenue		—		908,339		908,339
Cost of drugs		5,589,692		—		5,589,692
Cost of services		—		532,326		532,326
Other direct costs (1)		389,875		—		389,875
Segment selling, general, and administrative expenses (2)		300,646		250,937		551,583
Segment depreciation and amortization expense (3)		50,808		15,765		66,573
Segment EBITDA	$	349,117	$	140,841	$	489,958


	For the Six Months Ended June 30, 2025
	Pharmacy Solutions		Provider Services		Total Segments
Products revenue	$	5,322,272	$	—	$	5,322,272
Services revenue		—		703,555		703,555
Cost of drugs		4,525,053		—		4,525,053
Cost of services		—		427,989		427,989
Other direct costs (1)		359,564		—		359,564
Segment selling, general, and administrative expenses (2)		251,778		181,973		433,751
Segment depreciation and amortization expense (3)		54,541		13,943		68,484
Segment EBITDA	$	240,418	$	107,536	$	347,954

(1)

Other direct costs primarily includes direct labor costs, delivery costs, insurance, and depreciation and amortization expense that relates to revenue-generating assets.

(2)

Segment selling, general, and administrative expense includes indirect labor costs, depreciation and amortization, insurance, rent, lease, supplies, professional services, maintenance, repairs, utilities, and communications expense.

(3)

Total segment depreciation and amortization expense is presented in other direct costs, costs of services, and segment general and administrative expenses, based on the associated asset.


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
Reconciliation of income:
Total Segment EBITDA	$	254,910	$	181,148	$	489,958	$	347,954
Segment depreciation and amortization		34,291		34,207		66,573		68,484
Expenses not allocated at segment level:
Selling, general, and administrative expenses		83,096		90,752		157,601		165,987
Depreciation and amortization		7,132		7,632		13,944		14,187
Interest expense, net		36,879		38,778		75,494		80,541
Income tax expense		6,908		1,238		15,459		998
Net income from continuing operations	$	86,604	$	8,541	$	160,887	$	17,757

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion analyzes our financial condition and results of operations and should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q (our “Form 10-Q”). This discussion contains forward-looking statements that involve risks and uncertainties. See “Forward-Looking Statements.” When reviewing the discussion below, you should keep in mind the substantial risks and uncertainties that characterize our business. Known material factors that could affect our financial performance and actual results, and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this discussion or otherwise made by our management, are described in Item 2 of Part I of this Form 10-Q, and in Item 1A, “Risk Factors” of Part I of our Annual Report on Form 10-K for the year ended December 31, 2025 (our “Form 10-K”). Factors that could cause or contribute to such difference are not limited to those identified in “Risk Factors.” When used in the following discussion, “Senior” patients and populations mean individuals who are aged 65 and older, and “Specialty” patients and populations mean individuals who have unique, specialized and most often chronic/life-long health conditions and needs.

Overview

We are a leading home and community-based healthcare services platform, focused on delivering complementary pharmacy and provider services to medically complex patients. We have a differentiated approach to care delivery, with an integrated and scaled model that addresses critical services that the highest-need and highest-cost patients require. With a focus on Senior and Specialty patients, our platform provides pharmacy and provider services (both clinical and supportive care in nature) in lower-cost home and community settings largely to Medicare, Medicaid, and commercially-insured populations. We are an essential part of our nation’s health delivery network as a front-line provider of high-quality and cost-effective care to a large and growing number of people, who increasingly require a combination of specialized solutions to enable holistic health care management. Our presence spans all 50 states; we serve over 485,000 patients daily through our approximately 12,700 clinical providers and pharmacists; and our services make a profound impact in the lives and communities of the people we serve.

Unless otherwise noted, amounts and disclosures throughout this Management’s Discussion and Analysis relate to our continuing operations. Refer to “PART I - Item 1. Note 2” of our Form 10-K for additional information regarding discontinued operations.

For additional overview of our business, see “PART I - Item 1. Business” of our Form 10-K.

Second Quarter of 2026 Key Highlights

•

$300.0 million paydown and concurrent modification of our First Lien Facility, including interest rate refinancings that resulted in interest savings

•

Completed an underwritten secondary offering of our common stock by affiliates Kohlberg Kravis Roberts & Co. L.P. and certain members of management in June 2026

•

Repurchased 1,026,465 shares of common stock in connection with the June 2026 secondary offering

•

Company leverage of 2.15x at June 30, 2026

Financial Performance Highlights: Second Quarter of 2026 Compared to Second Quarter of 2025

•

Revenue grew by $725.4 million, or 23.0%, to $3.9 billion

•

Pharmacy Solutions segment revenue grew by $617.1 million, or 22.1%, to $3.4 billion

•

Provider Services segment revenue grew by $108.4 million, or 30.3%, to $466.0 million

•

Net income increased by $78.1 million to $86.6 million

•

Adjusted EBITDA(1) increased by $63.0 million, or 44.2%, to $205.5 million

•

Pharmacy Solutions segment EBITDA increased by $55.4 million, or 44.4%, to $180.0 million

•

Provider Services segment EBITDA grew by $18.4 million, or 32.6%, to $74.9 million

•

Diluted EPS increased by $0.35 from $0.04 to $0.39

•

Adjusted EPS(1) increased by $0.23 from $0.22 to $0.45

(1) Reconciliation of GAAP to non-GAAP results is provided below under the section entitled “Non-GAAP Financial Measures.”

Recent Developments

On May 28, 2026, the company used proceeds from the Community Living divestiture to repay $300.0 million of Tranche B-5 and established a new Tranche B-6 Term Loan of $2,214.9 million to refinance the remaining Tranche B-5 balance at SOFR plus 2.00% (or ABR plus 1.00%), maturing February 21, 2031. Additionally, borrowings of the Revolver bear interest at a rate equal to SOFR (with a floor of 0.00%) plus 2.00% for the Revolving Credit Loans or ABR (with a floor of 0.00%) plus 1.00% for the Swingline Loans.

On June 6, 2026, KKR Stockholder and certain management selling stockholders completed a registered secondary public offering of 14,999,771 shares of the Company’s common stock (the “June 2026 Offering”). The Company did not sell any shares of common stock that were offered in the June 2026 Offering. Also, the Company did not receive any proceeds from the June 2026 Offering, other than proceeds received in connection with the cash exercise of stock options by the management selling stockholders in connection with the June 2026 Offering.

In connection with the June 2026 Offering, the Company concurrently purchased from the underwriter, out of the aggregate of 14,999,771 shares of common stock that were the subject of the June 2026 Offering, 1,026,465 shares of common stock at a price of $58.453 per share, for a total purchase price of $60.0 million. The purchase price reflected a discount to the closing market price on the date of purchase. The repurchase was reviewed and approved by the Audit Committee of our Board of Directors.

Our Service Offerings

We are one of the largest independent providers of home and community-based health services in the United States, delivering both pharmacy and provider services. We believe our high-quality and complementary health services offerings address significant and important patient and stakeholder needs. We enhance patient outcomes through the delivery and coordination of high-quality services that high-need, high-cost patients require. Our services are principally delivered in patient-preferred and lower-cost settings and often over longer periods of time, given the chronic nature of the patient conditions that we address. We believe our breadth of service capabilities and proven outcomes position us as a provider of choice for patients, families, referral sources, customers, and payors. We deliver services through two reportable segments: Pharmacy Solutions and Provider Services. For additional details regarding our diversified service offerings within each reportable segment see “PART I - Item 1. Business” of our Form 10-K.

The following table summarizes the revenues generated by each of our reportable segments:


	For the Three Months Ended										For the Six Months Ended
	June 30,										June 30,
	2026					2025					2026					2025
($ in millions)	Revenue		% of Revenue			Revenue		% of Revenue			Revenue		% of Revenue			Revenue		% of Revenue
Pharmacy Solutions	$	3,407.1		88.0	%	$	2,790.1		88.6	%	$	6,578.5		87.9	%	$	5,322.3		88.3	%
Provider Services		466.0		12.0	%		357.6		11.4	%		908.4		12.1	%		703.5		11.7	%
Consolidated BrightSpring	$	3,873.1		100.0	%	$	3,147.7		100.0	%	$	7,486.9		100.0	%	$	6,025.8		100.0	%

Payor Mix

We are characterized by payor diversification across our platform. Our payors are principally federal, state, and local governmental agencies, commercial insurance, private, and other payors. Additionally, our Medicaid payors can be further broken down across each individual state with our top 10 Medicaid states representing 7% and 6% of total Company revenue for the three and six months ended June 30, 2026 and 2025, respectively.

We provide our services across all 50 states, Puerto Rico and Canada, with our top 10 states of operations comprising 53% and 52% of total Company revenues for the three and six months ended June 30, 2026, respectively, compared to 53% for the three and six months ended June 30, 2025. The federal, state, and local programs under which we operate are subject to legislative and budgetary changes that can influence reimbursement rates.

The following tables summarize the percentage of revenue generated by each payor type for each of our service offerings and reportable segments:


	For the Three Months Ended June 30, 2026
	Commercial insurance			Medicaid			Medicare Part A			Medicare Part B			Medicare Part C			Medicare Part D			Private & other			Total
Specialty and Infusion Pharmacy		24.5	%		7.5	%		—			0.5	%		16.9	%		23.9	%		0.8	%		74.1	%
Home and Community Pharmacy		2.7	%		1.3	%		3.5	%		—			0.0	%		5.8	%		0.6	%		13.9	%
Pharmacy Solutions		27.2	%		8.8	%		3.5	%		0.5	%		16.9	%		29.7	%		1.4	%		88.0	%
Home Health Care		0.4	%		0.2	%		4.5	%		0.3	%		1.6	%		—			0.2	%		7.2	%
Rehab Care		1.0	%		0.6	%		—			0.0	%		0.1	%		—			0.4	%		2.1	%
Personal Care		0.1	%		1.7	%		—			—			—			—			0.9	%		2.7	%
Provider Services		1.5	%		2.5	%		4.5	%		0.3	%		1.7	%		—			1.5	%		12.0	%
Consolidated BrightSpring		28.7	%		11.3	%		8.0	%		0.8	%		18.6	%		29.7	%		2.9	%		100.0	%


	For the Three Months Ended June 30, 2025
	Commercial insurance			Medicaid			Medicare Part A			Medicare Part B			Medicare Part C			Medicare Part D			Private & other			Total
Specialty and Infusion Pharmacy		20.9	%		6.5	%		—			0.6	%		17.7	%		23.3	%		1.0	%		70.0	%
Home and Community Pharmacy		2.7	%		2.0	%		4.4	%		—			0.0	%		8.7	%		0.8	%		18.6	%
Pharmacy Solutions		23.6	%		8.5	%		4.4	%		0.6	%		17.7	%		32.0	%		1.8	%		88.6	%
Home Health Care		0.2	%		0.3	%		4.0	%		0.0	%		1.1	%		—			0.3	%		5.9	%
Rehab Care		1.1	%		0.6	%		—			0.0	%		0.0	%		—			0.6	%		2.3	%
Personal Care		0.1	%		1.9	%		—			—			—			—			1.2	%		3.2	%
Provider Services		1.4	%		2.8	%		4.0	%		0.0	%		1.1	%		—			2.1	%		11.4	%
Consolidated BrightSpring		25.0	%		11.3	%		8.4	%		0.6	%		18.8	%		32.0	%		3.9	%		100.0	%


	For the Six Months Ended June 30, 2026
	Commercial insurance			Medicaid			Medicare Part A			Medicare Part B			Medicare Part C			Medicare Part D			Private & other			Total
Specialty and Infusion Pharmacy		24.2	%		7.4	%		—			0.5	%		16.8	%		23.8	%		0.9	%		73.6	%
Home and Community Pharmacy		2.7	%		1.3	%		3.7	%		—			0.0	%		5.9	%		0.7	%		14.3	%
Pharmacy Solutions		26.9	%		8.7	%		3.7	%		0.5	%		16.8	%		29.7	%		1.6	%		87.9	%
Home Health Care		0.4	%		0.2	%		4.6	%		0.2	%		1.7	%		—			0.2	%		7.3	%
Rehab Care		1.0	%		0.6	%		—			0.0	%		0.1	%		—			0.4	%		2.1	%
Personal Care		0.1	%		1.8	%		—			—			—			—			0.8	%		2.7	%
Provider Services		1.5	%		2.6	%		4.6	%		0.2	%		1.8	%		—			1.4	%		12.1	%
Consolidated BrightSpring		28.4	%		11.3	%		8.3	%		0.7	%		18.6	%		29.7	%		3.0	%		100.0	%


	For the Six Months Ended June 30, 2025
	Commercial insurance			Medicaid			Medicare Part A			Medicare Part B			Medicare Part C			Medicare Part D			Private & other			Total
Specialty and Infusion Pharmacy		20.8	%		6.4	%		—			0.6	%		17.3	%		22.9	%		0.9	%		68.9	%
Home and Community Pharmacy		2.7	%		2.0	%		4.6	%		—			0.0	%		9.0	%		1.1	%		19.4	%
Pharmacy Solutions		23.5	%		8.4	%		4.6	%		0.6	%		17.3	%		31.9	%		2.0	%		88.3	%
Home Health Care		0.2	%		0.3	%		4.1	%		0.0	%		1.1	%		—			0.4	%		6.1	%
Rehab Care		1.1	%		0.6	%		—			0.0	%		0.0	%		—			0.6	%		2.3	%
Personal Care		0.1	%		2.0	%		—			—			—			—			1.2	%		3.3	%
Provider Services		1.4	%		2.9	%		4.1	%		0.0	%		1.1	%		—			2.2	%		11.7	%
Consolidated BrightSpring		24.9	%		11.3	%		8.7	%		0.6	%		18.4	%		31.9	%		4.2	%		100.0	%

See Note 3 of the unaudited condensed consolidated financial statements and related notes in this Form 10-Q for more information regarding revenue by payor type for each reportable segment for the three and six months ended June 30, 2026 and 2025.

Trends and Other Factors Affecting Business

Expansion of our Pharmacy Solutions

We focus on providing health-dependent medications in a timely and well-supported manner to our patients receiving pharmacy solutions in their home and community-based settings. Our pharmacy services are primarily delivered directly to patients in their place of residence, home, or stay, and sometimes in a clinic setting. According to industry reports, pharmacy solutions delivered to and tailored for the home environment, such as home infusion services, oncology services, and daily medication management services in the home, will continue to grow faster than the overall and general pharmacy market. We have continued to expand our pharmacy capabilities to serve this need. We are a leading independent pharmacy provider in our respective pharmacy patient markets, and we expect to continue to increase our share, including home infusion patients, specialty oncology patients, behavioral patients, in-home Seniors, and hospice patients.

Continued Growth of our Provider Services Patient Populations

We focus on delivering high-touch and coordinated services to medically complex Senior and Specialty patients in the home and community-based settings where they live. As the baby boomer population ages, Seniors, who comprise a significant majority of our patients, will represent a higher percentage of the overall population. Given the proven value proposition of home-based health services, we believe patients will increasingly seek treatment and referral sources and payors will increasingly support treatment in homes more often than in higher cost, less convenient, higher acuity institutional settings.

The vast majority of patients we serve in our provider businesses are served in the home, and we have purposefully continued to expand our service offering and footprint to serve patients in this lower cost setting. Since 2019, we built upon supportive care services to patients, as we have meaningfully expanded our footprint of highly clinical and expert services to home health, rehabilitation, and hospice patients to address a large national healthcare need and more completely and better serve Senior and Specialty patients in the home as evidenced by continued census growth within the Provider Services segment. Our complementary services that address the multiple needs of these patient populations will increasingly provide integrated care opportunities to provide more complete and better coordinated services to patients across health settings and stages.

Stable Reimbursement Environment Across our Portfolio of Businesses

Our revenue is dependent upon our contracts and relationships with payors for our “must-serve” patient populations. We partner with a large and diverse set of payor groups nationally and in each of our markets, to form provider networks and to lower the overall cost of care. We structure our payor contracts to help both providers and payors achieve their objectives in a mutually aligned manner. Maintaining, supporting, and both deepening and increasing the number of these contracts and relationships, particularly as we continue to grow market share and enter new markets, is important for our long-term success.

We have observed relatively stable reimbursement rates from government and commercial payors in our pharmacy and provider services over a number of years, particularly for services provided to high-need, medically complex populations. Due to the medical necessity of our services, which are lower cost than healthcare services provided in other settings and reduce ER, hospital and institutional facility utilization, we have a history of reimbursement stability.

Culture of Quality and Compliance and Consistent Operations Execution

Quality and compliance are central to our strategies and mission. We have demonstrated leading and excellent service and customer/patient/family satisfaction scores across the organization, as referenced in prior filings such as our Form 10-K. In addition to quality and compliance resources and programs in field operations, we invest in people, training, auditing, signature programs, accreditations, advocacy, and technologies to support quality, compliance, and safety as part of our “Quality First” framework. We have demonstrated consistently high and often leading marks for service levels, satisfaction scores, and quality metrics in our industries.

Operational excellence is also an ongoing focus at the Company, including how we collect and share key metrics, hold operational reviews, audit, conduct training, deploy expert support resources, execute on corrective and preventative actions, and implement continuous improvement initiatives across the organization. We have continued to make investments in automation, data, and technology systems to support enhanced workflows, further scale, and future growth across service lines.

Ability to Build De Novo Locations

We have a proven ability to augment growth of existing operations by expanding our presence and opening new locations – in both of our reportable segments, Pharmacy Solutions and Provider Services – across geographies with consistent ramp-up in performance after site opening. We believe our platform can continue to build further scale nationally, adding density to additional and targeted key markets as a lever to facilitate maximum pharmacy and provider services overlap, integrated and value-based care, and growth. The Company’s geographic and operations scale, and platform of complementary segments and service lines, provides us with access to more de novo opportunities to consider and prioritize.

We typically identify and open new locations within proximity of an existing location as we leverage existing market knowledge and presence to expand in target markets, regions, and states. Our internal support resources in real estate, purchasing, IT, credentialing, payor contracting, HR, and sales and marketing, along with our Project Management Office, help to support and manage de novo locations from start to opening. We expect to continue to selectively and strategically expand our footprint within the United States and extend our service offerings to our patients and for customers, referral sources, and payors. We believe de novo investments facilitate more integrated care capability and are a meaningful organic growth driver for the Company.

Ability to Facilitate Integrated Care

Our operating model consists of complementary pharmacy and provider services that high-need Senior and Specialty populations require, and it is designed to increasingly coordinate, manage, and serve patients across our various needs and settings over time, leading to improved patient, family, physician, and referral source satisfaction, improved payor experiences, and better

outcomes. Our performance and potential to drive increased service volume for increased patient and health outcomes impact is driven partly by our appeal with our patients, families, customers, referral sources, and payors to provide multiple integrated care services – either in the same setting at the same time or across settings and stages of health – within our collection of pharmacy solutions and provider services and differentiated overall capabilities.

We provide multiple pharmacy and provider services to approximately 9,500 patients today, and we believe that there are substantially more opportunities to deliver more integrated care, given the hundreds of thousands of patients we serve and a similar number of patients discharging from customers annually. Value-add, beneficial, and multiple integrated care opportunities exist for our customer base and all Senior and Specialty patient populations not only across pharmacy and provider services, but also within each segment. Within pharmacy services, Continue CareRx is aimed at providing medication risk and therapy management continuously and longitudinally post discharge from hospitals and skilled nursing customers. Within provider services, patients often transition from home health to hospice services and can receive therapy and supportive care services concurrent with each other and with home health and hospice.

Aligning to Value-Based Care Reimbursement Models with Innovative Solutions

The scale and depth of our complimentary platform of diverse yet related customer and patient services – that complex patients require – positions us at the forefront with governmental and commercial payors who are increasingly seeking ways to expand value-based reimbursement models. Our high-quality services that are delivered in home and community-based and patient and family-preferred settings at lower comparable costs are well-positioned for the long term, and we continue to add wraparound care management capabilities and offerings to our core services. In addition to our large Medicare and Medicaid beneficiary populations, we have a large number of non-governmental payor contracts across the organization today, which both diversifies our payor mix, and provides for additional value-based opportunities and partnerships. The Company’s focused build out of its (i) Home-Based Primary Care, transitional care programs, and in-home medication therapy management, and (ii) Clinical (Nursing) Hub, are key enablers to coordinate base pharmacy and provider services and drive improved quality and lower costs for value-based care constructs. In addition to numerous payor contracts that feature reimbursement incentives, in the past year the Company has entered into several accountable care organization (“ACO”) arrangements to participate in shared savings from its attributed primary care patients and other ACO partnerships and contract as a preferred provider.

Components of Results of Operations

Revenues. The Company recognizes the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. For transactions involving the transfer of goods, revenues are primarily recognized when the customer obtains control of the products sold, which is generally upon shipment or delivery, depending on the delivery terms specified in the sales agreement. For transactions exclusively involving provision of services, revenues are recognized over time based on an appropriate measure of progress.

Cost of Goods and Cost of Services. We classify expenses directly related to providing goods and services, including depreciation and amortization, as cost of goods and cost of services. Direct costs and expenses principally include cost of drugs, net of rebates, salaries and benefits for direct care and service professionals, contracted labor costs, insurance costs, transportation costs for clients requiring services, certain client expenses such as food, supplies and medicine, residential occupancy expenses, which primarily comprise rent and utilities, and other miscellaneous direct goods or service-related expenses.

Selling, General, and Administrative Expenses. Selling, general, and administrative expenses consist of expenses incurred in support of our operations and administrative functions and include labor costs, such as salaries, bonuses, commissions, benefits, and travel-related expenses, distribution expenses, facilities rental costs, third-party revenue cycle management costs, and corporate support costs including finance, information technology, legal costs and settlements, human resources, procurement, and other administrative costs.

Interest Expense, net. Interest expense, net includes the debt service costs associated with our various debt instruments, including our First Lien Facilities, and the amortization of related deferred financing fees, which are amortized over the term of the respective credit agreement. Interest expense, net also includes the portion of the gain or loss on our interest rate swap agreements that is reclassified into earnings.

Income Tax Expense. Our provision for income taxes is based on permanent book/tax differences and statutory tax rates in the various jurisdictions in which we operate. Significant estimates and judgments are required in determining the provision for income taxes.

Results of Operations

Consolidated Results of Operations

Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025

The following table sets forth, for the periods indicated, our consolidated results of operations.


($ in thousands)	For the Three Months Ended June 30,
					Change
	2026		2025		Amount			%
Revenues:
Products	$	3,407,173	$	2,790,101	$	617,072			22.1	%
Services		465,967		357,597		108,370			30.3	%
Total revenues		3,873,140		3,147,698		725,442			23.0	%
Cost of goods		3,108,992		2,556,402		552,590			21.6	%
Cost of services		271,402		216,444		54,958			25.4	%
Gross profit		492,746		374,852		117,894			31.5	%
Selling, general, and administrative expenses		362,355		326,295		36,060			11.1	%
Operating income		130,391		48,557		81,834			168.5	%
Interest expense, net		36,879		38,778		(1,899	)		(4.9	)%
Income from continuing operations before income taxes		93,512		9,779		83,733		n.m.
Income tax expense		6,908		1,238		5,670		n.m.
Net income from continuing operations	$	86,604	$	8,541	$	78,063		n.m.
Adjusted EBITDA (1)	$	205,505	$	142,517	$	62,988			44.2	%

* n.m.: not meaningful

(1) Reconciliation of GAAP to non-GAAP results is provided below under the section entitled “Non-GAAP Financial Measures.”

The following discussion of our results of operations should be read in conjunction with the foregoing table summarizing our consolidated results of operations.

Revenues

Revenues were $3,873.1 million for the three months ended June 30, 2026, as compared with $3,147.7 million for the three months ended June 30, 2025, an increase of $725.4 million or 23.0%. The increase resulted from growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below.

Cost of Goods

Cost of goods was $3,109.0 million for the three months ended June 30, 2026, as compared with $2,556.4 million for the three months ended June 30, 2025, an increase of $552.6 million or 21.6%. The increase resulted from an increase in Pharmacy Solutions cost of goods. See additional discussion in “—Segment Results of Operations” below.

Cost of Services

Cost of services was $271.4 million for the three months ended June 30, 2026, as compared with $216.4 million for the three months ended June 30, 2025, an increase of $55.0 million or 25.4%. The increase resulted from an increase in Provider Services cost of services. See additional discussion in “—Segment Results of Operations” below.

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses were $362.4 million for the three months ended June 30, 2026, as compared with $326.3 million for the three months ended June 30, 2025, an increase of $36.1 million or 11.1%. The increase primarily resulted from the following segment activity and factors:

•

an increase of $44.2 million, or 13.5%, on consolidated second quarter of 2025 selling, general, and administrative expenses, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below;

•

an increase of $5.1 million, or 1.6%, on consolidated second quarter of 2025 selling, general, and administrative expenses, as a result of an increase in other operational expenses year-over-year; offset by,

•

a decrease of $13.2 million, or 4.0%, on consolidated second quarter of 2025 selling, general, and administrative expenses, as a result of a decrease in acquisition, integration, and transaction-related costs year-over-year.

Interest Expense, net

Interest expense, net was $36.9 million for the three months ended June 30, 2026, as compared with $38.8 million for the three months ended June 30, 2025, a decrease of $1.9 million or 4.9%. The decrease primarily resulted from a decrease in both the variable-rate and applicable margin for the three months ended June 30, 2026 as compared to the prior period and lower outstanding term debt as compared to the prior period, and was partially offset by a $4.0 million decrease in interest income received related to cash flow hedges of interest rate risk.

Income Tax Expense

Income tax expense was $6.9 million for the three months ended June 30, 2026, as compared with $1.2 million for the three months ended June 30, 2025. The $5.7 million increase in the income tax expense is primarily driven by the increase in pre-tax book income for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, which was partially offset by a lower effective tax rate for the three months ended June 30, 2026 of 7.4% compared to 12.7% for the three months ended June 30, 2025. The lower effective tax rate was primarily driven by higher excess tax benefits recognized on share-based compensation awards during 2026. These favorable impacts were partially offset by limitations on the deductibility of certain executive compensation.

Net Income

Net income was $86.6 million for the three months ended June 30, 2026, as compared with $8.5 million for the three months ended June 30, 2025, an increase of $78.1 million. The increase in net income is primarily attributable to the increase in gross profit and the aforementioned decrease in interest expense, net, partially offset by an increase in selling, general, and administrative expenses and income tax expense.

Adjusted EBITDA (1)

Adjusted EBITDA was $205.5 million for the three months ended June 30, 2026, as compared with $142.5 million for the three months ended June 30, 2025, an increase of $63.0 million or 44.2%. The increase primarily resulted from the following segment activity and factors:

•

an increase of $73.8 million, or 51.8%, on consolidated second quarter of 2025 Adjusted EBITDA, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below; offset by

•

a decrease of $10.8 million, or 7.6%, on consolidated second quarter of 2025 Adjusted EBITDA, as a result of increases in certain public company costs incurred, investments in information technology, and positions to support growth within the business.

(1) Reconciliation of GAAP to non-GAAP results is provided below under the section entitled “Non-GAAP Financial Measures.”

Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025

The following table sets forth, for the periods indicated, our consolidated results of operations.


($ in thousands)	For the Six Months Ended June 30,
					Change
	2026		2025		Amount			%
Revenues:
Products	$	6,578,522	$	5,322,272	$	1,256,250			23.6	%
Services		908,339		703,555		204,784			29.1	%
Total revenues		7,486,861		6,025,827		1,461,034			24.2	%
Cost of goods		5,979,567		4,884,617		1,094,950			22.4	%
Cost of services		532,326		427,989		104,337			24.4	%
Gross profit		974,968		713,221		261,747			36.7	%
Selling, general, and administrative expenses		723,128		613,925		109,203			17.8	%
Operating income		251,840		99,296		152,544			153.6	%
Interest expense, net		75,494		80,541		(5,047	)		(6.3	)%
Income from continuing operations before income taxes		176,346		18,755		157,591		n.m.
Income tax expense		15,459		998		14,461		n.m.
Net income from continuing operations	$	160,887	$	17,757	$	143,130		n.m.
Adjusted EBITDA (1)	$	395,266	$	273,579	$	121,687			44.5	%

* n.m.: not meaningful

(1) Reconciliation of GAAP to non-GAAP results is provided below under the section entitled “Non-GAAP Financial Measures.”

The following discussion of our results of operations should be read in conjunction with the foregoing table summarizing our consolidated results of operations.

Revenues

Revenues were $7,486.9 million for the six months ended June 30, 2026, as compared with $6,025.8 million for the six months ended June 30, 2025, an increase of $1,461.0 million or 24.2%. The increase resulted from growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below.

Cost of Goods

Cost of goods was $5,979.6 million for the six months ended June 30, 2026, as compared with $4,884.6 million for the six months ended June 30, 2025, an increase of $1,095.0 million or 22.4%. The increase resulted from an increase in Pharmacy Solutions cost of goods. See additional discussion in “—Segment Results of Operations” below.

Cost of Services

Cost of services was $532.3 million for the six months ended June 30, 2026, as compared with $428.0 million for the six months ended June 30, 2025, an increase of $104.3 million or 24.4%. The increase resulted from an increase in Provider Services cost of services. See additional discussion in “—Segment Results of Operations” below.

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses were $723.1 million for the six months ended June 30, 2026, as compared with $613.9 million for the six months ended June 30, 2025, an increase of $109.2 million or 17.8%. The increase primarily resulted from the following segment activity and factors:

•

an increase of $117.8 million, or 19.2%, on consolidated 2025 selling, general, and administrative expenses, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below; offset by,

•

a decrease of $8.6 million, or 1.4%, on consolidated 2025 selling, general, and administrative expenses, as a result of a decrease in other operational expenses year-over-year.

Interest Expense, net

Interest expense, net was $75.5 million for the six months ended June 30, 2026, as compared with $80.5 million for the six months ended June 30, 2025, a decrease of $5.0 million or 6.3%. The decrease primarily resulted from a decrease in both the variable-rate and applicable margin for the six months ended June 30, 2026 as compared to the prior period and lower outstanding term debt as compared to the prior period, and was partially offset by a $7.8 million decrease in interest income received related to cash flow hedges of interest rate risk.

Income Tax Expense

Income tax expense was $15.5 million for the six months ended June 30, 2026, as compared with $1.0 million for the six months ended June 30, 2025. The $14.5 million increase in the income tax expense is primarily driven by the increase in pre-tax book income for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, and an increase in the effective tax rate for the six months ended June 30, 2026 of 8.8% compared to 5.3% for the six months ended June 30, 2025. The increase in the effective tax rate is primarily attributable to the comparatively favorable impact of year-to-date discrete tax benefits on pre-tax income in each respective period. These favorable impacts were partially offset by limitations on the deductibility of certain executive compensation.

Excess tax benefits associated with share-based compensation are recorded as discrete tax items in the period in which the related awards vest or are exercised. Accordingly, the amount of such benefits may fluctuate significantly from period to period based on the Company’s stock price and employee vesting and exercise activity.

Net Income

Net income was $160.9 million for the six months ended June 30, 2026, as compared with $17.8 million for the six months ended June 30, 2025, an increase of $143.1 million. The increase in net income is primarily attributable to the increase in gross profit and the aforementioned decrease in interest expense, net, partially offset by an increase in selling, general, and administrative expenses and income tax expense.

Adjusted EBITDA (1)

Adjusted EBITDA was $395.3 million for the six months ended June 30, 2026, as compared with $273.6 million for the six months ended June 30, 2025, an increase of $121.7 million or 44.5%. The increase primarily resulted from the following segment activity and factors:

•

an increase of $142.0 million, or 51.9%, on consolidated 2025 Adjusted EBITDA, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below; offset by

•

a decrease of $20.3 million, or 7.4%, on consolidated 2025 Adjusted EBITDA, as a result of increases in certain public company costs incurred, investments in information technology, and positions to support growth within the business.

(1) Reconciliation of GAAP to non-GAAP results is provided below under the section entitled “Non-GAAP Financial Measures.”

Segment Results of Operations

Pharmacy Solutions Segment

Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025

The following table sets forth, for the periods indicated, our segment results of operations for Pharmacy Solutions.


	Pharmacy Solutions
($ in thousands, except Business Metrics)	For the Three Months Ended
	June 30,				Change
	2026		2025		Amount			%
Revenues	$	3,407,173	$	2,790,101	$	617,072			22.1	%
Cost of goods		3,108,992		2,556,402		552,590			21.6	%
Gross profit		298,181		233,699		64,482			27.6	%
Selling, general, and administrative expenses		143,612		136,040		7,572			5.6	%
Segment operating income	$	154,569	$	97,659	$	56,910			58.3	%
Segment EBITDA	$	180,049	$	124,692	$	55,357			44.4	%

Business Metrics:
Prescriptions dispensed		10,844,038		10,851,773		(7,735	)		(0.1	)%
Revenue per script	$	314.20	$	257.11	$	57.09			22.2	%
Gross profit per script	$	27.50	$	21.54	$	5.96			27.7	%

The following discussion of our Pharmacy Solutions segment results of operations should be read in conjunction with the foregoing table summarizing our segment results of operations.

Revenues

Revenues were $3,407.1 million for the three months ended June 30, 2026, as compared with $2,790.1 million for the three months ended June 30, 2025, an increase of $617.1 million or 22.1%. The increase primarily resulted from volume growth in prescriptions dispensed within Specialty and Infusion Pharmacy partially offset by a decline in prescriptions dispensed within Home and Community Pharmacy. Revenues attributable to Specialty and Infusion Pharmacy were $2,867.5 million for the three months ended June 30, 2026, as compared with $2,203.4 million for the three months ended June 30, 2025, an increase of $664.1 million or 30.1% attributable to an increase in prescriptions dispensed on certain specialty branded drugs. Revenues attributable to Home and Community Pharmacy were $539.6 million for the three months ended June 30, 2026, as compared with $586.7 million for the three months ended June 30, 2025, a decrease of $47.1 million or 8.0%, primarily attributable to impacts from the Inflation Reduction Act, which has resulted in significant reductions in federal healthcare spending, including through mandatory Medicare drug price negotiations and rebates, and statutory caps on negotiated prices.

The increase in revenue per prescription dispensed is due to mix changes year-over-year and a greater relative increase in volume growth in certain specialty brand drugs, which carry a higher revenue per prescription dispensed.

Cost of Goods

Cost of goods was $3,109.0 million for the three months ended June 30, 2026, as compared with $2,556.4 million for the three months ended June 30, 2025, an increase of $552.6 million or 21.6%. The increase primarily resulted from the aforementioned revenue growth in the period as well as an increase in cost per prescription dispensed as a result of mix shift.

Gross profit was $298.2 million for the three months ended June 30, 2026, as compared with $233.7 million for the three months ended June 30, 2025, an increase of $64.5 million or 27.6%. The increase primarily resulted from the aforementioned revenue growth in the period, primarily the result of outsized volume growth as well as mix in certain specialty branded drugs, which have lower margins.

Gross profit margin for the three months ended June 30, 2026 was 8.8% compared to 8.4% for the three months ended June 30, 2025. The increase in gross profit margin is due to mix shift in the Pharmacy Solutions segment with greater relative volume growth in Specialty and Infusion Pharmacy, along with product-level mix shifts and rate changes, partially offset by an increase in the fulfillment cost per script in Home and Community Pharmacy.

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses were $143.6 million for the three months ended June 30, 2026, as compared with $136.0 million for the three months ended June 30, 2025, an increase of $7.6 million or 5.6%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period.

Segment EBITDA

Segment EBITDA was $180.0 million for the three months ended June 30, 2026, as compared with $124.7 million for the three months ended June 30, 2025, an increase of $55.4 million or 44.4%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period. See Note 11 “Segment Information” to our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q for further discussion.

Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025

The following table sets forth, for the periods indicated, our segment results of operations for Pharmacy Solutions.


	Pharmacy Solutions
($ in thousands, except Business Metrics)	For the Six Months Ended
	June 30,				Change
	2026		2025		Amount			%
Revenues	$	6,578,522	$	5,322,272	$	1,256,250			23.6	%
Cost of goods		5,979,567		4,884,617		1,094,950			22.4	%
Gross profit		598,955		437,655		161,300			36.9	%
Selling, general, and administrative expenses		300,646		251,778		48,868			19.4	%
Segment operating income	$	298,309	$	185,877	$	112,432			60.5	%
Segment EBITDA	$	349,117	$	240,418	$	108,699			45.2	%

Business Metrics:
Prescriptions dispensed		21,573,914		21,729,067		(155,153	)		(0.7	)%
Revenue per script	$	304.93	$	244.94	$	59.99			24.5	%
Gross profit per script	$	27.76	$	20.14	$	7.62			37.8	%

The following discussion of our Pharmacy Solutions segment results of operations should be read in conjunction with the foregoing table summarizing our segment results of operations.

Revenues

Revenues were $6,578.5 million for the six months ended June 30, 2026, as compared with $5,322.3 million for the six months ended June 30, 2025, an increase of $1,256.3 million or 23.6%. The increase primarily resulted from volume growth in prescriptions dispensed within Specialty and Infusion Pharmacy partially offset by a decline in prescriptions dispensed within Home and Community Pharmacy. Revenues attributable to Specialty and Infusion Pharmacy were $5,511.8 million for the six months ended June 30, 2026, as compared with $4,154.9 million for the six months ended June 30, 2025, an increase of $1,356.9 million or 32.7% attributable to an increase in prescriptions dispensed on certain specialty branded drugs. Revenues attributable to Home and Community Pharmacy were $1,066.7 million for the six months ended June 30, 2026, as compared with $1,167.4 million for the six months ended June 30, 2025, a decrease of $100.7 million or 8.6%, primarily attributable to impacts from the Inflation Reduction Act, which has resulted in significant reductions in federal healthcare spending, including through mandatory Medicare drug price negotiations and rebates, and statutory caps on negotiated prices.

Cost of Goods

Cost of goods was $5,979.6 million for the six months ended June 30, 2026, as compared with $4,884.6 million for the six months ended June 30, 2025, an increase of $1,095.0 million or 22.4%. The increase primarily resulted from the aforementioned revenue growth in the period as well as an increase in cost per prescription dispensed as a result of mix shift.

Gross profit was $599.0 million for the six months ended June 30, 2026, as compared with $437.7 million for the six months ended June 30, 2025, an increase of $161.3 million or 36.9%. The increase primarily resulted from the aforementioned revenue growth

in the period, primarily the result of outsized volume growth as well as mix in certain specialty branded drugs, which have lower margins.

Gross profit margin for the six months ended June 30, 2026 was 9.1% compared to 8.2% for the six months ended June 30, 2025. The increase in gross profit margin is due to mix shift in the Pharmacy Solutions segment with greater relative volume growth in Specialty and Infusion Pharmacy, along with product-level mix shifts and rate changes, partially offset by an increase in the fulfillment cost per script in Home and Community Pharmacy.

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses were $300.6 million for the six months ended June 30, 2026, as compared with $251.8 million for the six months ended June 30, 2025, an increase of $48.9 million or 19.4%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period.

Segment EBITDA

Segment EBITDA was $349.1 million for the six months ended June 30, 2026, as compared with $240.4 million for the six months ended June 30, 2025, an increase of $108.7 million or 45.2%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period. See Note 11 “Segment Information” to our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q for further discussion.

Provider Services Segment

Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025

The following table sets forth, for the years indicated, our segment results of operations for Provider Services.


	Provider Services
($ in thousands, except Business Metrics)	For the Three Months Ended
	June 30,				Change
	2026		2025		Amount		%
Revenues	$	465,967	$	357,597	$	108,370		30.3	%
Cost of services		271,402		216,444		54,958		25.4	%
Gross profit		194,565		141,153		53,412		37.8	%
Selling, general, and administrative expenses		128,515		91,871		36,644		39.9	%
Segment operating income	$	66,050	$	49,282	$	16,768		34.0	%
Segment EBITDA	$	74,861	$	56,456	$	18,405		32.6	%

Business Metrics:
Home Health Care average daily census		46,448		30,085		16,363		54.4	%
Rehab Care persons served		7,755		7,119		636		8.9	%
Personal Care persons served		16,357		16,138		219		1.4	%

The following discussion of our Provider Services segment results of operations should be read in conjunction with the foregoing table summarizing our segment results of operations.

Revenues

Revenues were $466.0 million for the three months ended June 30, 2026, as compared with $357.6 million for the three months ended June 30, 2025, an increase of $108.4 million or 30.3%. The increase primarily resulted from the following segment activity and factors:

•

a $77.9 million, or 21.8%, increase from the Amedisys and LHC Branches acquisition; and

•

a $30.5 million, or 8.5%, increase primarily from volume growth as well as rate increases received during the period.

Revenues attributable to Home Health Care were $277.6 million for the three months ended June 30, 2026, as compared with $184.5 million for the three months ended June 30, 2025, an increase of $93.1 million or 50.5%. Revenues attributable to Rehab Care were $81.9 million for the three months ended June 30, 2026, as compared with $73.2 million for the three months ended June 30, 2025, an increase of $8.7 million or 11.9%. Revenues attributable to Personal Care were $106.5 million for the three months ended June 30, 2026, as compared with $99.9 million for the three months ended June 30, 2025, an increase of $6.6 million or 6.6%.

Cost of Services

Cost of services was $271.4 million for the three months ended June 30, 2026, as compared with $216.4 million for the three months ended June 30, 2025, an increase of $55.0 million or 25.4%. The increase primarily resulted from the aforementioned revenue growth.

Gross profit was $194.6 million for the three months ended June 30, 2026, as compared with $141.2 million for the three months ended June 30, 2025, an increase of $53.4 million or 37.8%. The increase primarily resulted from the aforementioned revenue growth and costs of services improvements in the period.

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses were $128.5 million for the three months ended June 30, 2026, as compared with $91.9 million for the three months ended June 30, 2025, an increase of $36.6 million or 39.9%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period.

Segment EBITDA

Segment EBITDA was $74.9 million for the three months ended June 30, 2026, as compared with $56.5 million for the three months ended June 30, 2025, an increase of $18.4 million or 32.6%. The increase primarily resulted from the aforementioned revenue growth. See Note 11 “Segment Information" to our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q for further discussion.

Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025

The following table sets forth, for the years indicated, our segment results of operations for Provider Services.


	Provider Services
($ in thousands, except Business Metrics)	For the Six Months Ended
	June 30,				Change
	2026		2025		Amount		%
Revenues	$	908,339	$	703,555	$	204,784		29.1	%
Cost of services		532,326		427,989		104,337		24.4	%
Gross profit		376,013		275,566		100,447		36.5	%
Selling, general, and administrative expenses		250,937		181,973		68,964		37.9	%
Segment operating income	$	125,076	$	93,593	$	31,483		33.6	%
Segment EBITDA	$	140,841	$	107,536	$	33,305		31.0	%

Business Metrics:
Home Health Care average daily census		46,258		30,163		16,095		53.4	%
Rehab Care persons served		7,688		6,909		779		11.3	%
Personal Care persons served		16,219		16,001		218		1.4	%

The following discussion of our Provider Services segment results of operations should be read in conjunction with the foregoing table summarizing our segment results of operations.

Revenues

Revenues were $908.4 million for the six months ended June 30, 2026, as compared with $703.5 million for the six months ended June 30, 2025, an increase of $204.8 million or 29.1%. The increase primarily resulted from the following segment activity and factors:

•

a $156.4 million, or 22.2%, increase from the Amedisys and LHC Branches acquisition; and

•

a $48.4 million, or 6.9%, increase primarily from volume growth as well as rate increases received during the period.

Revenues attributable to Home Health Care were $543.3 million for the six months ended June 30, 2026, as compared with $362.9 million for the six months ended June 30, 2025, an increase of $180.4 million or 49.7%. Revenues attributable to Rehab Care were $156.7 million for the six months ended June 30, 2026, as compared with $143.0 million for the six months ended June 30, 2025, an increase of $13.7 million or 9.6%. Revenues attributable to Personal Care were $208.4 million for the six months ended June 30, 2026, as compared with $197.6 million for the six months ended June 30, 2025, an increase of $10.8 million or 5.5%.

Cost of Services

Cost of services was $532.3 million for the six months ended June 30, 2026, as compared with $428.0 million for the six months ended June 30, 2025, an increase of $104.3 million or 24.4%. The increase primarily resulted from the aforementioned revenue growth.

Gross profit was $376.0 million for the six months ended June 30, 2026, as compared with $275.6 million for the six months ended June 30, 2025, an increase of $100.4 million or 36.5%. The increase primarily resulted from the aforementioned revenue growth and costs of services improvements in the period.

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses were $250.9 million for the six months ended June 30, 2026, as compared with $182.0 million for the three months ended June 30, 2025, an increase of $69.0 million or 37.9%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period.

Segment EBITDA

Segment EBITDA was $140.8 million for the six months ended June 30, 2026, as compared with $107.5 million for the six months ended June 30, 2025, an increase of $33.3 million or 31.0%. The increase primarily resulted from the aforementioned revenue growth. See Note 11 “Segment Information" to our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q for further discussion.

Non-GAAP Financial Measures

In addition to our results of operations prepared in accordance with U.S. GAAP, which we have discussed above, we also evaluate our financial performance using EBITDA, Adjusted EBITDA, and Adjusted EPS. These non-GAAP financial measures are not intended to replace financial performance measures determined in accordance with U.S. GAAP, such as net income and diluted EPS. Rather, we present EBITDA, Adjusted EBITDA, and Adjusted EPS as supplemental measures of our performance.

EBITDA, Adjusted EBITDA, and Adjusted EPS

The following are key financial metrics and, when used in conjunction with U.S. GAAP measures, we believe they provide useful information for evaluating our core business performance, enable comparison of financial results across periods, and allow for greater transparency with respect to key metrics used by management for financial and operational decision-making. We define EBITDA as net income before income tax expense, interest expense, net, and depreciation and amortization. Adjusted EBITDA and Adjusted EPS exclude certain other items that are either non-recurring, infrequent, non-cash, unusual, or items deemed by management to not be indicative of the performance of our core operations, including non-cash, share-based compensation; acquisition, integration, and transaction-related costs; and restructuring and divestiture-related and other costs. In determining which adjustments are made to arrive at Adjusted EBITDA and Adjusted EPS, management considers both (1) certain non-recurring, infrequent, non-cash, or unusual items, which can vary significantly from year to year, as well as (2) certain other items that may be recurring, frequent, or settled in cash but which management does not believe are indicative of our core operating performance. The financial measure calculated under U.S. GAAP which is most directly comparable to Adjusted EBITDA is net income. The financial measure calculated under U.S. GAAP which is most directly comparable to Adjusted EPS is diluted EPS.

We have historically incurred substantial acquisition, integration, and transaction-related costs. The underlying acquisition activities take place over a defined timeframe, have distinct project timelines, and are incremental to activities and costs that arise in the ordinary course of our business. Therefore, we have excluded these costs from our Adjusted EBITDA and Adjusted EPS because it provides management a normalized view of our core, ongoing operations after integrating our acquired companies.

EBITDA, Adjusted EBITDA, and Adjusted EPS are not measures of financial performance under U.S. GAAP and should be considered in addition to, and not as a substitute for, net income, diluted EPS or other financial measures calculated in accordance with U.S. GAAP. Our method of determining non-GAAP financial measures may differ from other companies’ financial measures and therefore may not be comparable to methods used by other companies.

Given our determination of adjustments in arriving at our computations of EBITDA, Adjusted EBITDA and Adjusted EPS, these non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as substitutes or alternatives to net income or loss, operating income or loss, earnings or loss per diluted share, cash flows from operating activities, total indebtedness, or any other financial measures calculated in accordance with U.S. GAAP.

The following table reconciles net income from continuing operations to EBITDA and Adjusted EBITDA:


($ in thousands)	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
Net income from continuing operations	$	86,604	$	8,541	$	160,887	$	17,757
Income tax expense		6,908		1,238		15,459		998
Interest expense, net		36,879		38,778		75,494		80,541
Depreciation and amortization		41,423		41,839		80,517		82,671
EBITDA	$	171,814	$	90,396	$	332,357	$	181,967
Non-cash share-based compensation (1)		19,488		19,508		32,604		31,982
Acquisition, integration, and transaction-related costs (2)		6,630		19,828		12,730		29,349
Restructuring and divestiture-related and other costs (3)		7,573		12,785		17,575		30,281
Total adjustments	$	33,691	$	52,121	$	62,909	$	91,612
Adjusted EBITDA	$	205,505	$	142,517	$	395,266	$	273,579

(1)

Represents non-cash share-based compensation to certain members of our management and full-time employees.

(2)

Represents transaction costs incurred in connection with planned, completed, or terminated acquisitions, which include investment banking fees, legal diligence and related documentation costs, finance and accounting diligence and documentation; costs associated with the integration of acquisitions, including any facility consolidation, integration travel, or severance; and costs associated with other planned, completed, or terminated non-routine transactions.

(3)

Represents costs associated with restructuring-related activities, including closure, and related license impairment, and severance expenses associated with certain enterprise-wide or significant business line cost-savings measures.

The following table reconciles diluted EPS to Adjusted EPS:


(shares in thousands)	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
Diluted EPS	$	0.39		$	0.04		$	0.73		$	0.09
Non-cash share-based compensation (1)		0.09			0.09			0.15			0.15
Acquisition, integration, and transaction-related costs (1)		0.03			0.09			0.06			0.14
Restructuring and divestiture-related and other costs (1)		0.03			0.06			0.08			0.14
Income tax impact on adjustments (2)		(0.09	)		(0.06	)		(0.19	)		(0.10	)
Adjusted EPS	$	0.45		$	0.22		$	0.83		$	0.42

Weighted average common shares outstanding used in calculating diluted U.S. GAAP net income per share		220,276			216,336			221,191			214,963
Weighted average common shares outstanding used in calculating diluted Non-GAAP income per share		220,276			216,336			221,191			214,963

(1)

This adjustment reflects the per share impact of the adjustment reflected within the definition of Adjusted EBITDA.

(2)

The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate for the respective non-GAAP adjustment. For all periods presented, the income tax impact on adjustments is inclusive of a discrete tax benefit related to share-based compensation.

Liquidity and Capital Resources

Our principal sources of cash have historically been from operating activities. Our principal source of liquidity in excess of cash from operating activities has historically been from proceeds from our debt facilities and issuances of common stock. Our principal uses of cash and liquidity have historically been for acquisitions, debt service requirements, and financing of working capital. We believe that our operating cash flows, available cash on hand, and availability under our Revolving Credit Facility and the LC Facility will be sufficient to meet our cash requirements for the next twelve months and beyond. Our cash flows are primarily provided by the continuing operations of the Company. Our future capital requirements will depend on many factors that are difficult to predict, including the size, timing, and structure of any future acquisitions, future capital investments, and future results of operations. We cannot assure you that cash provided by operating activities or cash and cash equivalents will be sufficient to meet our future needs. If we are unable to generate sufficient cash flows from operations in the future, we may have to obtain additional financing. If we obtain additional capital by issuing equity, the interests of our existing stockholders will be diluted. If we incur additional indebtedness, that

indebtedness may contain significant financial and other covenants that may significantly restrict our operations. We cannot assure you that we could obtain refinancing or additional financing on favorable terms or at all.

We evaluate our liquidity based upon the availability we have under our First Lien Facilities in addition to the net cash provided by (used in) operating, investing, and financing activities. Specifically, we review the activity under the Revolving Credit Facility and the LC Facility and consider period end balances outstanding under the Revolving Credit Facility and the LC Facility. Based upon the outstanding borrowings and letters of credit under the Revolving Credit Facility and the LC Facility, we calculate the availability for incremental borrowings under the Revolving Credit Facility and the LC Facility. Such amount, in addition to cash on our balance sheet, is what we consider to be our “Total Liquidity.”

The following table provides a calculation of our Total Liquidity:


($ in thousands)	For the Six Months Ended June 30,		For the Year Ended December 31,
	2026		2025
Revolving Credit Facility Rollforward
Beginning Revolving Credit Facility balance	$	—	$	63,300
Repayments of the Revolving Credit Facility, net		—		(63,300	)
Ending Revolving Credit Facility balance	$	—	$	—
Calculation of Revolving Credit Facility and LC Facility availability
Revolving Credit Facility and LC Facility limit	$	540,000	$	540,000
Less: outstanding Revolving Credit Facility balance		—		—
Less: outstanding letters of credit subject to LC Sublimit		—		—
Less: outstanding letters of credit under the LC Facility		63,909		62,790
End of period Revolving Credit Facility and LC Facility availability		476,091		477,210
End of period cash balance		550,381		88,370
Total Liquidity, end of period	$	1,026,472	$	565,580

Cash Flow Activity

The activity discussed in this section relates to our consolidated company results and includes the impacts of discontinued operations.

Six Months Ended June 30, 2026 and 2025

The following table sets forth a summary of our cash flows provided by (used in) operating, investing, and financing activities for the periods presented:


($ in thousands)	For the Six Months Ended June 30,
	2026			2025			Variance
Net cash provided by operating activities	$	166,859		$	150,674		$	16,185
Net cash provided by (used in) investing activities	$	719,195		$	(47,434	)	$	766,629
Net cash used in financing activities	$	(424,150	)	$	(94,261	)	$	(329,889	)

Operating Activities

Net cash provided by operating activities was $166.9 million for the six months ended June 30, 2026, compared to $150.7 million for the six months ended June 30, 2025. The change was primarily due to the following:

•

a $152.5 million increase in operating income from continuing operations in 2026 as compared to 2025;

•

a $20.6 million decrease in cash outflows for interest, net primarily as a result of a reduction in the variable-rate and applicable margin on our outstanding term debt, and refinancing of our First Lien in the second fiscal quarter of 2026; offset by

•

a $143.7 million increase in cash outflows for income taxes, which includes $97.0 million of taxes paid as a result of the Community Living divestiture; and

•

a $17.0 million increase in transaction costs related to the closing of the Community Living divestiture in the first fiscal quarter of 2026.

Investing Activities

Net cash provided by (used in) investing activities increased by $766.6 million, from a cash outflow of $47.4 million in the six months ended June 30, 2025 to a cash inflow of $719.2 million in the six months ended June 30, 2026. The increase was primarily due to proceeds from the sale of our Community Living business of $810.9 million, offset by a $35.4 million decrease in cash paid for acquisitions in 2026 compared to 2025.

Financing Activities

Net cash used in financing activities was $424.2 million for the six months ended June 30, 2026, primarily attributable to repayments on our long-term debt of $320.5 million, repurchase of shares of common stock of $120.0 million in connection with the March and June 2026 secondary offerings, and payment of finance lease obligations of $5.8 million, offset by the net proceeds from share-based compensation and settlement of equity awards of $25.8 million and other financing activities.

Net cash used in financing activities was $94.3 million for the six months ended June 30, 2025, primarily attributable to repayments on our long-term debt of $23.7 million, net repayments on our Revolving Credit Facility of $63.3 million, payment of financing lease obligations of $6.7 million, and other financing activities.

Debt

We typically incur debt to finance mergers and acquisitions, and we borrow under our Revolving Credit Facility for working capital purposes, as well as to finance acquisitions, as needed. Below is a summary of our long-term indebtedness as of June 30, 2026 and December 31, 2025.

First Lien Credit Agreement

On March 5, 2019, the Company entered into the First Lien Credit Agreement, among Phoenix Intermediate Holdings Inc., as Holdings, Phoenix Guarantor Inc., as the Borrower, the several lenders from time to time parties thereto and Morgan Stanley Senior Funding, Inc., as the Administrative Agent and Collateral Agent (the “First Lien Credit Agreement”). On December 11, 2024 we amended the First Lien to refinance the outstanding principal by establishing Tranche B-5 in an aggregate principal amount of $2,553.2 million at a rate equal to SOFR plus 2.50% or ABR plus 1.50% with a maturity date of February 21, 2031.

On May 28, 2026, we used a portion of the net proceeds received from the Community Living divestiture to repay $300.0 million of the borrowing under Tranche B-5, and amended the First Lien to establish a new Tranche B-6 Term Loan (“Tranche B-6”) in an aggregate principal amount of $2,214.9 million. The proceeds from Tranche B-6 borrowings were used to refinance the equivalent amount of the remaining Tranche B-5, after the aforementioned debt paydown, at a rate equal to SOFR plus 2.00% or ABR plus 1.00% with a maturity date of February 21, 2031. The transaction was accounted for as a debt modification. Principal payments are due on the last business day of each quarter, which will commence in the third fiscal quarter of 2026 and equate to 0.25% of the principal at issuance, with a balloon payment due February 21, 2031.

For additional information about our First Lien Credit Agreement, see Note 6 of the unaudited condensed consolidated financial statements and related notes in this Quarterly Report on Form 10-Q.

The First Lien Credit Agreement described above contain customary negative covenants, including, but not limited to, restrictions on the Company and its restricted subsidiaries’ ability to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets, make acquisitions, loans, advances, or investments, pay dividends, sell or otherwise transfer assets, prepay or modify terms of certain junior indebtedness, enter into transactions with affiliates, or change their lines of business or fiscal year. In addition, under the Revolving Credit Facility, the Company will not permit the consolidated first lien secured debt to consolidated EBITDA (as defined in the First Lien Credit Agreement) ratio to be greater than 6.90 to 1.00, which shall be tested as of the end of the most recent quarter at any time when the aggregate revolving credit loans exceed 35% of the total revolving credit commitments.

We were in compliance with all applicable financial covenants as of June 30, 2026 and December 31, 2025.

Revolving Credit Facility

In connection with the First Lien debt modification on May 28, 2026, borrowings of the Revolver bear interest at a rate equal to SOFR (with a floor of 0.00%) plus 2.00% for the Revolving Credit Loans or ABR (with a floor of 0.00%) plus 1.00% for the Swingline Loans. Prior to the debt modification, borrowings bore interest at a rate equal to SOFR (with a floor of 0.00%) plus 2.75% for the Revolving Credit Loans and ABR (with a floor of 0.00%) plus 1.75% for the Swingline Loans. The total borrowing capacity under the Revolving Credit Facility included in the First Lien Credit Agreement (the “Revolver”) was $475.0 million as of June 30, 2026 and December 31, 2025. As of June 30, 2026 and December 31, 2025, the Company had $475.0 million of borrowing capacity available under the Revolver as there were no borrowings under the Revolver or letters of credit outstanding.

The First Lien Credit Agreement provides for an additional $65.0 million of letter of credit commitments, or the LC Facility, which are not subject to the LC Sublimit. As of June 30, 2026, there were $63.9 million of letters of credit outstanding under the LC Facility, resulting in an available borrowing capacity of $1.1 million. As of December 31, 2025, there were $62.8 million of letters of credit outstanding under the LC Facility, resulting in an available borrowing capacity of $2.2 million.

For additional information about our Revolving Credit Facility and LC Facility, see Note 6 of the unaudited condensed consolidated financial statements and related notes in this Quarterly Report on Form 10-Q.

Interest Rate Swap Agreements

To manage fluctuations in cash flows resulting from changes in the variable interest rates, the Company entered into receive-variable, pay-fixed interest rate swap agreements. For the six months ended June 30, 2026 and the year ended December 31, 2025, interest expense, net includes interest income received related to cash flow hedges of interest rate risk of $1.0 million and $15.2 million, respectively. Refer to Note 6 within our unaudited condensed consolidated financial statements and related notes in this Quarterly Report on Form 10-Q for further discussion.

Tangible Equity Units

Concurrently with the IPO, we issued 8,000,000 Tangible Equity Units (“TEUs”), which have a stated amount of $50.00 per unit. Each TEU is comprised of a prepaid stock purchase contract (“Purchase Contract”) and a senior amortizing note (“Amortizing Note”) due February 1, 2027, each issued by the Company. The Company will pay equal quarterly cash installments of $0.8438 per Amortizing Note on February 1, May 1, August 1 and November 1, commencing on May 1, 2024, except for the May 1, 2024 installment payment, which was $0.8531 per Amortizing Note, with a final installment payment date of February 1, 2027. In the aggregate, the annual quarterly cash installments will be equivalent of 6.75% per year. Each installment payment constitutes a payment of interest and a partial repayment of principal. Each TEU may be separated by a holder into its constituent Purchase Contract and Amortizing Note. Refer to Note 7 within our unaudited condensed consolidated financial statements and related notes in this Quarterly Report on Form 10-Q for further discussion.

The table below summarizes the total outstanding debt of the Company:


($ in thousands)	Rate						Long-term obligation and note payable				Interest Expense
	June 30, 2026			December 31, 2025			June 30, 2026		December 31, 2025		Six Months Ended June 30, 2026			Fiscal Year 2025
First Lien Incremental Term Loan Tranche B-6 - payable to lenders at SOFR plus applicable margin		5.62	%		—		$	2,214,872	$	—	$	11,758		$	—
First Lien Incremental Term Loan Tranche B-5 - payable to lenders at SOFR plus applicable margin		—			6.22	%		—		2,521,255		63,091			146,482
Revolving Credit Loans - payable to lenders at SOFR plus applicable margin		5.62	%		6.47	%		—		—		—			—
Swingline/Base Rate - payable to lenders at ABR plus applicable margin		7.75	%		8.50	%		—		—		2,476			6,996
Amortizing Notes								19,278		31,360		1,219			4,183
Notes payable and other								15,103		17,129		434			886
Amortization of deferred financing costs and other, net of interest income from cash flow hedges								—		—		(3,484	)		(1,236	)
Total debt							$	2,249,253	$	2,569,744	$	75,494		$	157,311
Less: debt issuance costs, net								58,493		62,200
Total debt, net of debt issuance costs								2,190,760		2,507,544
Less: current portion of long-term debt								41,445		52,340
Total long-term debt, net of current portion							$	2,149,315	$	2,455,204

Our Company leverage, as calculated under our First Lien Credit Agreement, was 2.15x and 2.99x at June 30, 2026 and December 31, 2025, respectively. The results of the Community Living business are excluded from the calculation for June 30, 2026 since the Company divested the Community Living business prior to the end of the period. The results of the Community Living business are included in the calculation for December 31, 2025 pursuant to the terms of our First Lien Credit Agreement.


Delaware	82-2956404
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
805 N. Whittington Parkway Louisville, Kentucky	40222
(Address of principal executive offices)	(Zip Code)


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


		Page

PART I.	FINANCIAL INFORMATION	3

Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Comprehensive Income	5
	Condensed Consolidated Statements of Shareholders’ Equity	6
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Condensed Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	44
Item 4.	Controls and Procedures	44

PART II.	OTHER INFORMATION	46

Item 1.	Legal Proceedings	46
Item 1A.	Risk Factors	46
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	46
Item 3.	Defaults Upon Senior Securities	46
Item 4.	Mine Safety Disclosures	46
Item 5.	Other Information	46
Item 6.	Exhibits	47
Signatures		49


		Incorporated by Reference
Exhibit Number	Description	Form	File No.	Exhibit	Filing Date

2.1*	Purchase Agreement, dated January 17, 2025, by and among Res-Care, Inc., certain other affiliated entities, National Mentor Holdings, Inc., and BrightSpring Health Services, Inc. (solely for purposes of Section 5.24).	8-K	001-41938	2.1	1/21/2025
2.2	First Amendment to Purchase Agreement, dated December 5, 2025, by and among Res-Care, Inc., certain other affiliated entities, National Mentor Holdings, Inc., and BrightSpring Health Services, Inc.	10-K	001-41938	2.2	2/27/2026
3.1	Second Amended and Restated Certificate of Incorporation of BrightSpring Health Services, Inc.	8-K	001-41938	3.1	1/30/2024
3.2	Amended and Restated Bylaws of BrightSpring Health Services, Inc.	8-K	001-41938	3.2	1/30/2024
4.1	Purchase Contract Agreement, dated as of January 30, 2024, between BrightSpring Health Services, Inc. and U.S. Bank Trust Company, National Association, as purchase contract agent, as attorney-in-fact for the Holders from time to time as provided therein and as trustee under the indenture referred to therein.	8-K	001-41938	4.1	1/30/2024
4.2	Form of Unit (included in Exhibit 4.1).	8-K	001-41938	4.2	1/30/2024
4.3	Form of Purchase Contract (included in Exhibit 4.1).	8-K	001-41938	4.3	1/30/2024
4.4	Indenture, dated as of January 30, 2024, between BrightSpring Health Services, Inc. and U.S. Bank Trust Company, National Association, as trustee.	8-K	001-41938	4.4	1/30/2024
4.5	First Supplemental Indenture, dated as of January 30, 2024, between BrightSpring Health Services, Inc. and U.S. Bank Trust Company, National Association, as trustee, paying agent and security registrar.	8-K	001-41938	4.5	1/30/2024
4.6	Form of Amortizing Note (included in Exhibit 4.5).	8-K	001-41938	4.6	1/30/2024
4.7	Registration Rights Agreement, dated December 7, 2017, by and among Phoenix Parent Holdings Inc., KKR Phoenix Aggregator L.P., and Walgreens Co.	S-1/A	333-276348	4.1	1/10/2024
10.1	Amendment No. 10, dated as of May 28, 2026, by and among Phoenix Intermediate Holdings Inc., Phoenix Guarantor Inc., the several lenders from time to time parties thereto and Morgan Stanley Senior Funding Inc. as administrative agent and collateral agent to the First Lien Credit Agreement, dated as of March 5, 2019, by and among Phoenix Intermediate Holdings Inc., Phoenix Guarantor Inc., the lenders party thereto, and Morgan Stanley Senior Funding, Inc. (with amended First Lien Credit Agreement attached as Exhibit A).
31.1	Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)


	BrightSpring Health Services, Inc.

Date: July 31, 2026	By:	/s/ Jon Rousseau
		Jon Rousseau
		Chairman, President, and Chief Executive Officer
		(Principal Executive Officer)

Date: July 31, 2026	By:	/s/ Jennifer Phipps
		Jennifer Phipps
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)