Option Care Health’s second quarter was marked by robust top-line growth, but the market reacted negatively to the results. Management credited the double-digit revenue increase to strong execution in both acute and chronic therapy portfolios, as well as deeper partnerships with payers and pharmaceutical manufacturers. CEO John Rademacher noted, “Our national scale and nimble operating model enabled us to deliver consistent results despite industry headwinds.” Gross profit dollar growth was supported by therapy mix and productivity gains, though limited distribution and rare therapies weighed on gross margin rates.
Is now the time to buy OPCH? Find out in our full research report (it’s free).
Option Care Health (OPCH) Q2 CY2025 Highlights:
- Revenue: $1.42 billion vs analyst estimates of $1.35 billion (15.4% year-on-year growth, 4.6% beat)
- Adjusted EPS: $0.41 vs analyst estimates of $0.40 (3.6% beat)
- Adjusted EBITDA: $114 million vs analyst estimates of $110.8 million (8.1% margin, 2.9% beat)
- The company lifted its revenue guidance for the full year to $5.58 billion at the midpoint from $5.5 billion, a 1.4% increase
- Management raised its full-year Adjusted EPS guidance to $1.69 at the midpoint, a 1.8% increase
- EBITDA guidance for the full year is $470 million at the midpoint, above analyst estimates of $464.9 million
- Operating Margin: 5.8%, in line with the same quarter last year
- Market Capitalization: $4.52 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Option Care Health’s Q2 Earnings Call
- David Samuel MacDonald (Truist): Asked about payer conversations and site-of-service redirection. CEO John Rademacher highlighted increasing interest from payers in alternate site solutions to manage costs and observed growing volumes in these areas.
- Joanna Sylvia Gajuk (Bank of America): Inquired about the advanced practitioner model’s expansion into oncology and Alzheimer’s. Rademacher explained the state-by-state rollout and noted early but encouraging adoption in higher-acuity patient groups.
- Philip Chickering (Deutsche Bank): Questioned gross profit dollar growth despite Stelara headwinds. CFO Michael Shapiro detailed strong execution in core acute therapies and favorable therapy mix as key contributors.
- Albert J. William Rice (UBS): Asked about inventory strategy in relation to tariffs. Shapiro described a proactive but measured approach, maintaining around one month of inventory and leveraging supplier relationships to mitigate risk.
- Sarah Elizabeth Conrad (Goldman Sachs): Queried the drivers of higher SG&A growth. Shapiro referenced acquisition costs and accelerated investment in new clinical initiatives as key factors, while noting operating leverage improvements.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be looking for (1) evidence that biosimilar adoption is ramping and supporting stable patient volumes, (2) further expansion and productivity gains in infusion suite utilization, and (3) sustained partnership momentum with payers and pharmaceutical manufacturers. Progress on technology-driven efficiencies and successful integration of new therapy offerings will also be key indicators of execution.
Option Care Health currently trades at $28.33, down from $30.16 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.