# Option Care Health, Inc. (OPCH) Informational only - not investment advice. CIK: 0001014739 SIC: 8082 Services-Home Health Care Services SIC breadcrumb: [Services](/division/I/) > [SIC Major Group 80](/major-group/80/) > [SIC 8082 Services-Home Health Care Services](/industry/8082/) Latest 10-K filed: 2026-02-24 SEC page: https://www.sec.gov/edgar/browse/?CIK=1014739 Filing source: https://www.sec.gov/Archives/edgar/data/1014739/000101473926000008/bios-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-24 · accession 0001014739-26-000008 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001014739.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 5,649,519,000 USD | 2025 | verified | | Net income | 207,585,000 USD | 2025 | verified | | Assets | 3,455,769,000 USD | 2025 | verified | | Free cash flow | 217,140,000 USD | 2025 | computed | | Net margin | 3.67% | 2025 | computed | | Operating margin | 5.98% | 2025 | computed | | Revenue YoY | +13.03% | 2025 | computed | | ROE | 15.65% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | OPCH | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 3.7% | 3.2% | 56 | 56 | | Operating margin | 6.0% | 5.5% | 56 | 51 | | Revenue growth | 13.0% | 11.8% | 52 | 57 | | FCF margin | 3.8% | 5.4% | 43 | 48 | | ROE | 15.7% | 7.9% | 79 | 53 | | ROA | 6.0% | 2.8% | 70 | 58 | | Liabilities / equity | 1.61 | 1.13 | 62 | 54 | | Current ratio | 1.53 | 1.63 | 42 | 58 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 80 SIC Major Group 80, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 5649519000 | USD | 2025 | 2026-02-24 | | Net income | 207585000 | USD | 2025 | 2026-02-24 | | Assets | 3455769000 | USD | 2025 | 2026-02-24 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001014739.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2010 | 2011 | 2012 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | 935,589,000 | 1,828,046,000 | 1,939,791,000 | 2,310,417,000 | 3,032,610,000 | 3,438,640,000 | 3,869,036,000 | 4,302,324,000 | 4,998,202,000 | 5,649,519,000 | | Net income | | | | -42,765,000 | 3,878,000 | -6,115,000 | -75,920,000 | -8,076,000 | 139,898,000 | 150,556,000 | 267,090,000 | 211,823,000 | 207,585,000 | | Operating income | | | | -10,989,000 | 27,279,000 | 38,269,000 | -319,000 | 110,755,000 | 190,841,000 | 240,231,000 | 314,595,000 | 321,833,000 | 337,906,000 | | Gross profit | | | | 262,082,000 | 445,999,000 | 422,215,000 | 512,999,000 | 682,264,000 | 779,606,000 | 866,918,000 | 981,223,000 | 1,012,993,000 | 1,087,895,000 | | Diluted EPS | -1.37 | 0.14 | 1.15 | | | | -0.49 | -0.04 | 0.77 | 0.83 | 1.48 | 1.23 | 1.27 | | Operating cash flow | | | | -42,541,000 | 37,871,000 | 24,428,000 | 39,467,000 | 127,392,000 | 208,569,000 | 267,547,000 | 371,295,000 | 323,392,000 | 258,447,000 | | Capital expenditures | | | | | 24,956,000 | 26,276,000 | 28,292,000 | 26,875,000 | 25,632,000 | 35,358,000 | 41,866,000 | 35,606,000 | 41,307,000 | | Share buybacks | | | | | | | | | 0.00 | 0.00 | 250,261,000 | 252,726,000 | 309,951,000 | | Assets | | | | 604,985,000 | 603,092,000 | 1,428,211,000 | 2,589,547,000 | 2,647,439,000 | 2,790,918,000 | 3,112,936,000 | 3,217,035,000 | 3,421,743,000 | 3,455,769,000 | | Liabilities | | | | 566,604,000 | 605,765,000 | 825,386,000 | 1,682,720,000 | 1,631,715,000 | 1,615,032,000 | 1,726,833,000 | 1,795,363,000 | 2,017,505,000 | 2,129,376,000 | | Stockholders' equity | | | | 600,770,000 | 606,105,000 | 602,825,000 | 906,827,000 | 1,015,724,000 | 1,175,886,000 | 1,386,103,000 | 1,421,672,000 | 1,404,238,000 | 1,326,393,000 | | Cash and cash equivalents | | | | 9,569,000 | 39,457,000 | 36,391,000 | 67,056,000 | 99,265,000 | 119,423,000 | 294,186,000 | 343,849,000 | 412,565,000 | 232,624,000 | | Free cash flow | | | | | 12,915,000 | -1,848,000 | 11,175,000 | 100,517,000 | 182,937,000 | 232,189,000 | 329,429,000 | 287,786,000 | 217,140,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2010 | 2011 | 2012 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | -4.57% | 0.21% | -0.32% | -3.29% | -0.27% | 4.07% | 3.89% | 6.21% | 4.24% | 3.67% | | Operating margin | | | | -1.17% | 1.49% | 1.97% | -0.01% | 3.65% | 5.55% | 6.21% | 7.31% | 6.44% | 5.98% | | Return on equity | | | | -7.12% | 0.64% | -1.01% | -8.37% | -0.80% | 11.90% | 10.86% | 18.79% | 15.08% | 15.65% | | Return on assets | | | | -7.07% | 0.64% | -0.43% | -2.93% | -0.31% | 5.01% | 4.84% | 8.30% | 6.19% | 6.01% | | Liabilities / equity | | | | 0.94 | 1.00 | 1.37 | 1.86 | 1.61 | 1.37 | 1.25 | 1.26 | 1.44 | 1.61 | | Current ratio | | | | 1.33 | 1.77 | 1.95 | 1.69 | 1.51 | 1.55 | 1.76 | 1.77 | 1.70 | 1.53 | ## As-reported value updates 20 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/OPCH/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001014739.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2011-Q4 | 2011-12-31 | 483,305,000 | | | derived Q4 = FY annual - nine-month YTD | | 2012-Q1 | 2012-03-31 | 155,633,000 | | | reported discrete quarter | | 2012-Q2 | 2012-06-30 | 155,901,000 | | | reported discrete quarter | | 2012-Q3 | 2012-09-30 | 170,365,000 | | | reported discrete quarter | | 2013-Q1 | 2013-03-31 | 199,071,000 | | | reported discrete quarter | | 2013-Q2 | 2013-06-30 | 190,733,000 | | | reported discrete quarter | | 2013-Q3 | 2013-09-30 | 208,879,000 | | | reported discrete quarter | | 2014-Q1 | 2014-03-31 | 239,643,000 | | | reported discrete quarter | | 2014-Q2 | 2014-03-31 | 239,300,000 | | | reported discrete quarter | | 2014-Q3 | 2014-09-30 | 243,959,000 | | | reported discrete quarter | | 2022-Q2 | 2022-06-30 | | | 0.19 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | 0.21 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.21 | reported discrete quarter | | 2023-Q2 | 2023-03-31 | | 39,208,000 | | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 0.63 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | 114,403,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | | | 0.31 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | | 57,177,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | | 44,791,000 | 0.26 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | 44,791,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | | | 0.30 | reported discrete quarter | | 2024-Q3 | 2024-06-30 | | 53,043,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | | | 0.31 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | | 60,133,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 1,332,972,000 | 46,742,000 | 0.28 | reported discrete quarter | | 2025-Q2 | 2025-03-31 | | 46,742,000 | | reported discrete quarter | | 2025-Q2 | 2025-06-30 | | | 0.31 | reported discrete quarter | | 2025-Q3 | 2025-06-30 | | 50,523,000 | | reported discrete quarter | | 2025-Q3 | 2025-09-30 | | | 0.32 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | | 58,504,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 1,350,654,000 | 45,343,000 | 0.29 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from OPCH's latest 10-K: [/company/OPCH/business/](/company/OPCH/business/). ## Risk Factors Verbatim Item 1A Risk Factors from OPCH's latest 10-K: [/company/OPCH/risk-factors/](/company/OPCH/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1014739/000101473926000023/bios-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-07-29 Report date: 2026-06-30 Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations Unless the context requires otherwise, references in this report to “Option Care Health,” the “Company,” “we,” “us” and “our” refer to Option Care Health, Inc. and its consolidated subsidiaries. Management’s discussion and analysis of financial condition and results of operations (“MD&A”) is intended to assist the reader in understanding and assessing significant changes and trends related to our results of operations and financial condition. The following discussion and analysis should be read in conjunction with the Company’s unaudited condensed consolidated financial statements and the related notes thereto included in Item 1 of Part I of this Quarterly Report on Form 10-Q (this “Form 10-Q”). Certain statements in this 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”), may cause our actual results, financial position, and cash and cash equivalents generated from operations to differ materially from these forward-looking statements. Business Overview Option Care Health, and its wholly-owned subsidiaries, provide infusion therapy and other ancillary health care services through a national network of 86 full service pharmacies and 187 ambulatory infusion suites, including 32 with advanced practitioner capabilities. Our services are provided in coordination with, and under the direction of, the patient’s physician. Our multidisciplinary team of clinicians, including pharmacists, nurses, and dietitians work with the physician to develop a plan of care suited to each patient’s specific needs. We provide home infusion services consisting of anti-infectives, nutrition support, therapies for neurological disorders and chronic inflammatory disorders, immunoglobulin therapy, and other therapies for chronic and acute conditions. Our national footprint enables us to collaborate with health systems and national payers to provide high quality care at an appropriate cost in a comfortable setting. We have established key relationships that allow us access to local resources to ensure responsiveness to our patients’ needs. At the center of everything we do is the patient. This is the driving force behind all of our actions and the partnerships that we have across the healthcare ecosystem. 22 Table of Contents Composition of Results of Operations The following results of operations include the accounts of Option Care Health and our subsidiaries for the three and six months ended June 30, 2026 and 2025. Gross Profit Gross profit represents our net revenue less cost of revenue. Net Revenue. Infusion and related healthcare services revenue is reported at the estimated net realizable amounts from third-party payers and patients for goods sold and services rendered. When pharmaceuticals are provided to a patient, revenue is recognized upon delivery of the goods. When nursing services are provided, revenue is recognized when the services are rendered. Due to the nature of the healthcare industry and the reimbursement environment in which the Company operates, certain estimates are required to record revenue and accounts receivable at their net realizable values at the time goods or services are provided. Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. Specifically, the complexity of many third-party billing arrangements and the uncertainty of reimbursement amounts for certain services from certain payers may result in adjustments to amounts originally recorded. Cost of Revenue. Cost of revenue consists of the actual cost of pharmaceuticals and other medical supplies dispensed to patients. In addition to product costs, cost of revenue includes warehousing costs, purchasing costs, depreciation expense relating to revenue-generating assets, such as infusion pumps, shipping and handling costs, and wages and related costs for the pharmacists, nurses, and all other employees and contracted workers directly involved in providing service to the patient. The Company receives volume-based rebates and prompt payment discounts from some of its pharmaceutical and medical supplies vendors. These payments are recorded as a reduction of inventory and are accounted for as a reduction of cost of revenue when the related inventory is sold. Operating Costs and Expenses Selling, General and Administrative Expenses. Selling, general and administrative expenses consist principally of salaries for administrative employees that directly and indirectly support the operations, occupancy costs, marketing expenditures, insurance, and professional fees. Depreciation and Amortization Expense. Depreciation within this caption relates to property and equipment and amortization relates to intangibles. Depreciation of revenue-generating assets, such as infusion pumps, is included in cost of revenue. Other Income (Expense) Interest Expense, Net. Interest expense consists principally of interest and fee payments on the Company’s outstanding borrowings under the First Lien Term Loan, Revolver Facility, Senior Notes, amortization of discount and deferred financing fees, payments associated with the interest rate cap, and interest income earned on cash and cash equivalents. Refer to the “Liquidity and Capital Resources” section below for further discussion of these outstanding borrowings. Equity in Earnings of Joint Ventures. Equity in earnings of joint ventures consists of our proportionate share of equity earnings or losses from equity investments in two infusion joint ventures with healthcare systems. Other, Net. Other income (expense) primarily includes activity related to non-operating income and expenses. Income Tax Expense. The Company is subject to taxation in the United States and various states. The Company’s income tax expense is reflective of the current federal and state tax rates. Change in Unrealized (Loss) Gain on Cash Flow Hedge, Net of Income Tax Benefit (Expense). Change in unrealized (loss) gain on cash flow hedge, net of income tax benefit (expense), consists of the (loss) gain associated with the changes in the fair value of derivatives designated as hedging instruments related to the interest rate cap hedge, net of income taxes. 23 Table of Contents Results of Operations The following table presents Option Care Health’s consolidated results of operations for the three and six months ended June 30, 2026 and 2025 (in thousands, except for percentages): [[GREPCENT_TABLE]] [["","Three Months Ended June 30,","","Six Months Ended June 30,"],["","2026","","2025","","2026","","2025"],["","Amount","","% of Revenue","","Amount","","% of Revenue","","Amount","","% of Revenue","","Amount","","% of Revenue"],["NET REVENUE","$","1,442,400","","","100.0","%","","$","1,416,085","","","100.0","%","","$","2,793,054","","","100.0","%","","$","2,749,057","","","100.0","%"],["COST OF REVENUE","1,175,149","","","81.5","%","","1,147,042","","","81.0","%","","2,263,789","","","81.1","%","","2,216,962","","","80.6","%"],["GROSS PROFIT","267,251","","","18.5","%","","269,043","","","19.0","%","","529,265","","","18.9","%","","532,095","","","19.4","%"],["OPERATING COSTS AND EXPENSES:"],["Selling, general and administrative expenses","164,659","","","11.4","%","","170,092","","","12.0","%","","339,221","","","12.1","%","","338,210","","","12.3","%"],["Depreciation and amortization expense","17,452","","","1.2","%","","16,241","","","1.1","%","","32,359","","","1.2","%","","31,987","","","1.2","%"],["Total operating expenses","182,111","","","12.6","%","","186,333","","","13.2","%","","371,580","","","13.3","%","","370,197","","","13.5","%"],["OPERATING INCOME","85,140","","","5.9","%","","82,710","","","5.8","%","","157,685","","","5.6","%","","161,898","","","5.9","%"],["OTHER INCOME (EXPENSE):"],["Interest expense, net","(14,020)","","","(1.0)","%","","(14,447)","","","(1.0)","%","","(27,324)","","","(1.0)","%","","(27,678)","","","(1.0)","%"],["Equity in earnings of joint ventures","1,704","","","0.1","%","","1,395","","","0.1","%","","3,393","","","0.1","%","","3,124","","","0.1","%"],["Other, net","1,163","","","0.1","%","","(797)","","","(0.1)","%","","1,236","","","\u2014","%","","(4,927)","","","(0.2)","%"],["Total other (expense) income","(11,153)","","","(0.8)","%","","(13,849)","","","(1.0)","%","","(22,695)","","","(0.8)","%","","(29,481)","","","(1.1)","%"],["INCOME BEFORE INCOME TAXES","73,987","","","5.1","%","","68,861","","","4.9","%","","134,990","","","4.8","%","","132,417","","","4.8","%"],["INCOME TAX EXPENSE","20,074","","","1.4","%","","18,338","","","1.3","%","","35,734","","","1.3","%","","35,152","","","1.3","%"],["NET INCOME","$","53,913","","","3.7","%","","$","50,523","","","3.6","%","","$","99,256","","","3.6","%","","$","97,265","","","3.5","%"],["OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:"],["Change in unrealized (loss) gain on cash flow hedges, net of income tax benefit (expense) of $374, $548, $613 and $1,331, respectively","(1,142)","","","(0.1)","%","","(1,684)","","","(0.1)","%","","(1,874)","","","(0.1)","%","","(4,082)","","","(0.1)","%"],["OTHER COMPREHENSIVE (LOSS) INCOME","(1,142)","","","(0.1)","%","","(1,684)","","","(0.1)","%","","(1,874)","","","(0.1)","%","","(4,082)","","","(0.1)","%"],["NET COMPREHENSIVE INCOME","$","52,771","","","3.7","%","","$","48,839","","","3.4","%","","$","97,382","","","3.5","%","","$","93,183","","","3.4","%"]] [[/GREPCENT_TABLE]] 24 Table of Contents Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025 The following tables present selected consolidated comparative results of operations from Option Care Health’s unaudited condensed consolidated financial statements for the three months ended June 30, 2026 and 2025. Gross Profit [[GREPCENT_TABLE]] [["","Three Months Ended June 30,"],["","2026","","2025","","Variance"],["","(in thousands, except for percentages)"],["Net revenue","$","1,442,400","","","$","1,416,085","","","$","26,315","","","1.9","%"],["Cost of revenue","1,175,149","","","1,147,042","","","28,107","","","2.5","%"],["Gross profit","$","267,251","","","$","269,043","","","$","(1,792)","","","(0.7)","%"],["Gross profit margin","18.5","%","","19.0","%"]] [[/GREPCENT_TABLE]] The increase in net revenue was primarily driven by continued strong growth in the Company's acute portfolio of therapies, which saw high single-digit growth over the prior year, reflecting ongoing success in maintaining referral source and payer relationships and strong partnerships with hospitals and health systems. The Company’s chronic portfolio of therapies was flat versus the prior year. This was driven by growth in both the IG/neuro and rare and orphan portfolio and offset by a decline within the chronic inflammatory disease ("CID") portfolio, primarily due to patient attrition and unfavorable therapy mix. Management continues to expect CID-related dynamics to negatively impact gross profit by approximately $55 million during 2026. The increase in cost of revenue was primarily attributable to higher revenue volumes and changes in therapy mix. Gross profit decreased slightly primarily due to the impact of shifts in therapy mix, including the continued headwinds in the CID portfolio, partially offset by growth in higher-margin therapies and ongoing operational initiatives. Operating Expenses [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1014739/000101473926000008/bios-20251231.htm Complete FY 2025 MD&A: /company/OPCH/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-02-24 Report date: 2025-12-31 Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations The following Management’s Discussion and Analysis of Financial Condition and Results of Operations is designed to assist the reader in understanding our consolidated financial statements, the changes in certain key items in those financial statements from year-to-year and the primary factors that accounted for those changes as well as how certain accounting principles affect our consolidated financial statements. Except for the historical information contained herein, the following discussion contains forward-looking statements that are subject to known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. We discuss such risks, uncertainties and other factors throughout this Annual Report and specifically under the caption “Forward-Looking Statements” and in Item 1A. “Risk Factors” in this Annual Report. In addition, the following discussion of financial condition and results of operations should be read in conjunction with the consolidated financial statements and notes thereto appearing in Item 8 in this Annual Report. Business Overview Option Care Health and its wholly-owned subsidiaries provide infusion therapy and other ancillary healthcare services through a national network of 196 locations around the United States. Our national footprint enables us to collaborate with health systems and national payers to provide high quality care at an appropriate cost in a comfortable setting. We have established key relationships that allow us access to local resources to ensure responsiveness to our patients’ needs. At the center of everything we do is the patient. This is the driving force behind all of our actions and the partnerships that we have broadly across the healthcare ecosystem. 29 Table of Contents Composition of Results of Operations The following results of operations include the accounts of Option Care Health and our subsidiaries for the years ended December 31, 2025 and 2024. Gross Profit Gross profit represents our net revenue less cost of revenue. Net Revenue. Infusion and related healthcare services revenue is reported at the estimated net realizable amounts from third-party payers and patients for goods sold and services rendered. When pharmaceuticals are provided to a patient, revenue is recognized upon delivery of the goods. When nursing services are provided, revenue is recognized when the services are rendered. Due to the nature of the healthcare industry and the reimbursement environment in which the Company operates, certain estimates are required to record revenue and accounts receivable at their net realizable values at the time goods or services are provided. Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. Specifically, the complexity of many third-party billing arrangements and the uncertainty of reimbursement amounts for certain services from certain payers may result in adjustments to amounts originally recorded. Cost of Revenue. Cost of revenue consists of the actual cost of pharmaceuticals and other medical supplies dispensed to patients. In addition to product costs, cost of revenue includes warehousing costs, purchasing costs, depreciation expense relating to revenue-generating assets, such as infusion pumps, shipping and handling costs, and wages and related costs for the pharmacists, nurses, and all other employees and contracted workers directly involved in providing service to the patient. The Company receives volume-based rebates and prompt payment discounts from some of its pharmaceutical and medical supplies vendors. These payments are recorded as a reduction of inventory and are accounted for as a reduction of cost of revenue when the related inventory is sold. Operating Costs and Expenses Selling, General and Administrative Expenses. Selling, general and administrative expenses consist principally of salaries for administrative employees that directly and indirectly support the operations, occupancy costs, marketing expenditures, insurance, and professional fees. Depreciation and Amortization Expense. Depreciation within this caption relates to property and equipment and amortization relates to intangibles. Depreciation of revenue-generating assets, such as infusion pumps, is included in cost of revenue. Other Income (Expense) Interest Expense, Net. Interest expense consists principally of interest and fee payments on the Company’s outstanding borrowings under the First Lien Term Loan, Revolver Facility, Senior Notes, amortization of discount and deferred financing fees, payments associated with the interest rate cap, and interest income earned on cash and cash equivalents. Refer to the “Liquidity and Capital Resources” section below for further discussion of these outstanding borrowings. Equity in Earnings of Joint Ventures. Equity in earnings of joint ventures consists of our proportionate share of equity earnings or losses from equity investments in two infusion joint ventures with health systems. Other, Net. Other (expense) income primarily includes activity related to non-operating income and expenses. Income Tax Expense. The Company is subject to taxation in the United States and various states. The Company’s income tax expense is reflective of the current federal and state tax rates. Change in Unrealized (Loss) Gain on Cash Flow Hedge, Net of Income Tax Benefit (Expense). Change in unrealized (loss) gain on cash flow hedge, net of income tax benefit (expense), consists of the (loss) gain associated with the changes in the fair value of derivatives designated as hedging instruments related to the interest rate cap, net of income taxes. 30 Table of Contents Results of Operations The following table presents Option Care Health’s consolidated results of operations for the years ended December 31, 2025 and 2024 (in thousands, except for percentages). For a discussion of Option Care Health’s consolidated results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023, refer to Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2024 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 26, 2025. [[GREPCENT_TABLE]] [["","Year Ended December 31,"],["","2025","","2024"],["","Amount","","% of Revenue","","Amount","","% of Revenue"],["NET REVENUE","$","5,649,519","","","100.0","%","","$","4,998,202","","","100.0","%"],["COST OF REVENUE","4,561,624","","","80.7","%","","3,985,209","","","79.7","%"],["GROSS PROFIT","1,087,895","","","19.3","%","","1,012,993","","","20.3","%"],["OPERATING COSTS AND EXPENSES:"],["Selling, general and administrative expenses","682,451","","","12.1","%","","630,251","","","12.6","%"],["Depreciation and amortization expense","67,538","","","1.2","%","","60,909","","","1.2","%"],["Total operating expenses","749,989","","","13.3","%","","691,160","","","13.8","%"],["OPERATING INCOME","337,906","","","6.0","%","","321,833","","","6.4","%"],["OTHER INCOME (EXPENSE):"],["Interest expense, net","(54,558)","","","(1.0)","%","","(49,029)","","","(1.0)","%"],["Equity in earnings of joint ventures","7,409","","","0.1","%","","5,964","","","0.1","%"],["Other, net","(7,857)","","","(0.1)","%","","4,831","","","0.1","%"],["Total other (expense) income","(55,006)","","","(1.0)","%","","(38,234)","","","(0.8)","%"],["INCOME BEFORE INCOME TAXES","282,900","","","5.0","%","","283,599","","","5.7","%"],["INCOME TAX EXPENSE","75,315","","","1.3","%","","71,776","","","1.4","%"],["NET INCOME","$","207,585","","","3.7","%","","$","211,823","","","4.2","%"],["OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:"],["Change in unrealized (loss) gain on cash flow hedges, net of income tax benefit (expense) of $2,272 and $1,284, respectively","(6,941)","","","(0.1)","%","","(3,931)","","","(0.1)","%"],["OTHER COMPREHENSIVE (LOSS) INCOME","(6,941)","","","(0.1)","%","","(3,931)","","","(0.1)","%"],["NET COMPREHENSIVE INCOME","$","200,644","","","3.6","%","","$","207,892","","","4.2","%"]] [[/GREPCENT_TABLE]] 31 Table of Contents Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 The following table presents selected consolidated comparative results of operations for the years ended December 31, 2025 and 2024: Gross Profit [[GREPCENT_TABLE]] [["","Year Ended December 31,"],["","2025","","2024","","Variance"],["","(in thousands, except for percentages)"],["Net revenue","$","5,649,519","","$","4,998,202","","$","651,317","","13.0","%"],["Cost of revenue","4,561,624","","3,985,209","","576,415","","14.5","%"],["Gross profit","$","1,087,895","","$","1,012,993","","$","74,902","","7.4","%"],["Gross profit margin","19.3%","","20.3%"]] [[/GREPCENT_TABLE]] The increase in net revenue during the year ended December 31, 2025 was primarily driven by organic growth in the Company’s portfolio of therapies, consisting of acute revenue that had mid-teens growth relative to the prior year while chronic revenue grew in the low double-digits. Acute growth was largely driven by the impact of shifts in the competitive landscape, which increased the volume of patient service. The increase in cost of revenue was primarily driven by the growth in revenue and therapy mix. The decrease in gross profit margin was primarily due to mix, including certain higher cost therapies included within chronic growth (including rare and orphan therapies) as well as biosimilar adoption, partially offset by certain mitigation efforts executed in the first quarter of 2025. Management expects these dynamics to negatively impact gross profit by $25 million to $35 million in 2026. Operating Expenses [[GREPCENT_TABLE]] [["","Year Ended December 31,"],["","2025","","2024","","Variance"],["","(in thousands, except for percentages)"],["Selling, general and administrative expenses","$","682,451","","","$","630,251","","","$","52,200","","8.3","%"],["Depreciation and amortization expense","67,538","","","60,909","","","6,629","","10.9","%"],["Total operating expenses","$","749,989","","","$","691,160","","","$","58,829","","8.5","%"]] [[/GREPCENT_TABLE]] The increase in selling, general and administrative expenses during the year ended December 31, 2025 was primarily due to investment in internal resources and other general costs to support both ongoing business needs as well as future business growth. Selling, general and administrative expenses have declined as a percentage of revenue to 12.1% for the year ended December 31, 2025 compared to 12.6% for the year ended December 31, 2024, due to the Company’s focus on leveraging existing infrastructure to control spending. The increase in depreciation and amortization expense was primarily due to the Intramed Plus acquisition. See Note 3, Business Acquisitions, of the consolidated financial statements for further information. 32 Table of Contents Other Income (Expense) [[GREPCENT_TABLE]] [["","Year Ended December 31,"],["","2025","","2024","","Variance"],["","(in thousands, except for percentages)"],["Interest expense, net","$","(54,558)","","","$","(49,029)","","","$","(5,529)","","11.3","%"],["Equity in earnings of joint ventures","7,409","","","5,964","","","1,445","","24.2","%"],["Other, net","(7,857)","","","4,831","","","(12,688)","","NM(1)"],["Total other (expense) income","$","(55,006)","","","$","(38,234)","","","$","(16,772)","","43.9","%"]] [[/GREPCENT_TABLE]] (1) Not meaningful The increase in interest expense, net during the year ended December 31, 2025 was primarily attributable to less interest income generated from our cash and cash equivalents due to lower interest rates, partially offset by a decrease in the interest rate on the Company [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/OPCH/mda/fy2025/ All MD&A years: /company/OPCH/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/OPCH/mda/fy2024/): filed 2025-02-26; accession 0001014739-25-000012 (https://www.sec.gov/Archives/edgar/data/1014739/000101473925000012/bios-20241231.htm) - [FY 2023 MD&A](/company/OPCH/mda/fy2023/): filed 2024-02-22; accession 0001014739-24-000009 (https://www.sec.gov/Archives/edgar/data/1014739/000101473924000009/bios-20231231.htm) - [FY 2022 MD&A](/company/OPCH/mda/fy2022/): filed 2023-02-23; accession 0001014739-23-000009 (https://www.sec.gov/Archives/edgar/data/1014739/000101473923000009/bios-20221231.htm) - [FY 2021 MD&A](/company/OPCH/mda/fy2021/): filed 2022-02-23; accession 0001014739-22-000009 (https://www.sec.gov/Archives/edgar/data/1014739/000101473922000009/bios-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 8082 Services-Home Health Care Services) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/OPCH.md · JSON record: /company/OPCH.json · verified financials: /company/OPCH/financials.json / /company/OPCH/financials.csv · machine TOC for the whole site: /llms.txt