Option Care Health Reports 16.3% Revenue Growth to $1.33 Billion in Q1 2025

Option Care Health, Inc. reported a significant increase in financial performance for the first quarter of 2025, with net revenue reaching $1.33 billion, a 16.3% increase from $1.15 billion in the same period of 2024. The company's gross profit also rose to $263.1 million, up from $238.5 million, although the gross profit margin decreased slightly to 19.7% from 20.8%. The increase in revenue was primarily driven by organic growth in the company's therapy portfolio, particularly in acute and chronic revenue streams, which saw mid- and high-teen percentage increases, respectively.

In terms of profitability, Option Care Health reported a net income of $46.7 million, a 4.4% increase from $44.8 million in the prior year. The company’s operating income improved to $79.2 million from $69.0 million, reflecting a focus on leveraging existing infrastructure to control costs, as evidenced by a decrease in selling, general, and administrative expenses as a percentage of revenue. However, the effective tax rate increased to 26.5% from 21.4%, primarily due to differences in federal and state tax rates and non-deductible expenses.

Strategically, Option Care Health completed the acquisition of Intramed Plus, Inc. on January 24, 2025, for a purchase price of $117.3 million. This acquisition is expected to enhance the company's operational efficiencies and expand its service offerings. The company operates a national network of 190 locations, including 91 full-service pharmacies and 99 stand-alone ambulatory infusion suites, which positions it well for continued growth in the infusion therapy market.

Operationally, the company reported a decrease in cash and cash equivalents to $171.4 million from $412.6 million at the end of 2024, largely due to cash used in investing activities related to the Intramed Plus acquisition. The company also repurchased $100 million of its common stock during the quarter, reflecting its commitment to returning value to shareholders. As of March 31, 2025, the company had $395.9 million available under its credit facilities, indicating a strong liquidity position to support future growth initiatives.

Looking ahead, Option Care Health anticipates continued growth driven by its expanded service offerings and strategic acquisitions. The company expects to face challenges related to the competitive landscape and reimbursement environment but remains focused on leveraging its operational efficiencies to enhance profitability. The management's outlook suggests a commitment to maintaining strong cash flows and pursuing additional acquisition opportunities to further strengthen its market position.