BrightSpring Health Services Reports 27.6% Revenue Growth to $11.3 Billion in 2024

BrightSpring Health Services, Inc. reported significant revenue growth in its 2024 10-K filing, increasing by $2.4 billion (27.6%) to $11.3 billion compared to $8.8 billion in 2023. This growth was driven by increases in both its Pharmacy Solutions and Provider Services segments. Pharmacy Solutions revenue rose by $2.2 billion (34.2%) to $8.8 billion, while Provider Services revenue increased by $208.5 million (9.0%) to $2.5 billion. The company's net loss decreased from $156.8 million to $20.5 million, a reduction of $136.3 million. Excluding a $30 million quality incentive payment received in 2023, the net loss decreased by $166.5 million.

Adjusted EBITDA, a non-GAAP measure, increased by $50.3 million (9.3%) to $588.1 million. Excluding the 2023 quality incentive payment, Adjusted EBITDA increased by $80.5 million (15.9%). The Pharmacy Solutions segment saw EBITDA growth of $23.7 million (6.4%), or $53.9 million (15.8%) excluding the incentive payment, while the Provider Services segment experienced EBITDA growth of $53.9 million (17.6%). The company's loss per share decreased from $(1.31) to $(0.09), and adjusted EPS increased from $0.07 to $0.56.

Strategic developments in 2024 included the completion of the company's initial public offering (IPO), raising $1.045 billion in net proceeds, the extinguishment of its Second Lien Facility, and the paydown and modification of its First Lien Facility. Eight acquisitions were completed across both segments, and the company announced a pending divestiture of its Community Living business for $835 million, expected to close in 2025. This divestiture is anticipated to increase strategic focus and operational efficiencies. The company also granted $63.3 million in equity awards to management and employees at the time of the IPO and an additional 7.7 million restricted stock units in the second quarter.

Key operational developments included filling over 41 million prescriptions in 2024 across its 180 pharmacies and serving over 450,000 patients daily through approximately 11,000 clinical providers and pharmacists. Growth in Infusion and Specialty Pharmacy prescriptions exceeded 22%, and Home and Community Pharmacy prescriptions grew by over 11% year-over-year. In Provider Services, Home Health Care census and rehab hours served increased by approximately 9% and 13%, respectively. The company highlighted its focus on operational excellence, resulting in approximately $67.5 million in annual savings in 2024 through process improvements. The company also emphasized its commitment to quality and compliance, investing over $200 million annually in related initiatives.

The company's outlook is positive, with expectations for continued revenue and Adjusted EBITDA growth following the divestiture of the Community Living business. However, the filing also details numerous risk factors, including intense competition, reliance on government funding, regulatory changes, and the challenges of managing rapid growth and integrating acquisitions. The company acknowledges the potential for fluctuations in quarterly results and the impact of interest rate risk on its variable-rate debt. The company also notes that it has no current plans to pay cash dividends on its common stock.