**Premier, Inc. Reports Fiscal Year 2025 Results, Announces Strategic Realignment**
Premier, Inc. (PINC) reported its fiscal year 2025 financial results, showcasing a net revenue of $1.01 billion, a decrease of 11% compared to $1.14 billion in fiscal year 2024. Net income from continuing operations was $72.7 million, down from $104.2 million in the previous fiscal year. The company's non-GAAP Adjusted EBITDA was $253.1 million, a significant decrease from $389.0 million in fiscal year 2024. These results reflect a challenging year marked by strategic realignments and market pressures.
The company experienced revenue declines in both its segments. Supply Chain Services reported a net revenue of $631.0 million, an 8% decrease from $689.4 million in fiscal year 2024, primarily due to increased revenue share obligations to members. Performance Services saw a 15% decrease in net revenue, falling to $381.6 million from $446.6 million in the prior year, driven by contract expirations and a shift from SaaS-based products to licensed-based products. Total GPO purchasing volume by all members participating in Premier’s GPO was more than $87 billion for the calendar year 2024.
Premier underwent strategic changes during the fiscal year, including the divestiture of S2S Global, its direct sourcing subsidiary, in exchange for a 20% minority interest in Prestige Ameritech, Ltd. This transaction resulted in a gain of $12.8 million in continuing operations, but a net loss of $39.8 million when accounting for discontinued operations. Additionally, Contigo Health sold certain assets and liabilities associated with its wrap network business for $15.0 million, resulting in a gain of $13.9 million. The company also completed $800 million in share repurchases under a previously authorized program.
Looking ahead, Premier faces challenges including intense competition, consolidation in the healthcare industry, and potential delays in revenue recognition. The company is focused on innovating its product offerings, including integrating artificial intelligence, and managing its cost structure to navigate these challenges. Premier is also subject to various healthcare regulations, including the Affordable Care Act and HIPAA, and must comply with complex federal and state laws governing financial relationships among healthcare providers. The company's Board of Directors has declared a quarterly cash dividend of $0.21 per share, payable on September 15, 2025, but future dividend payments will be determined at the discretion of the Board.
About Premier, Inc.
Premier, Inc. is a healthcare improvement company providing data analytics, supply chain management, and performance improvement solutions to hospitals, health systems, and healthcare providers in the U.S. Its core offerings include group purchasing, clinical and operational analytics, consulting, and SaaS-based tools to enhance care quality, reduce costs, and optimize operational efficiency across the healthcare continuum. The company leverages its extensive member network and proprietary data to drive innovation and value-based care.
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