BrightSpring Health Services (BTSG) investor relations material

Key growth drivers and business performance

• Achieved broad-based growth across pharmacy and provider businesses, with specialty pharmacy outperforming and driving significant upside, supported by high service levels, strong manufacturer partnerships, and clinical liaison investments.

• Specialty pharmacy saw 40%+ revenue growth year-to-date, following similar growth in prior years, attributed to new drug launches, limited distribution network wins, and increased generic conversions.

• Fee-for-service business grew 40-50% in gross profit, outpacing core revenue growth, due to expanded service offerings and data agreements with manufacturers.

• Operational efficiency improved, with OpEx per script benefiting from scale and process optimization as prescription volumes rose over 30% annually.

• Investments in IT, AI, and key personnel are ongoing to support future growth and operational excellence.

Market dynamics and future outlook

• Specialty pharmacy growth is expected to remain above industry averages in the near term, driven by innovative therapies and generics, but long-term high growth rates may moderate as scale increases.

• The pipeline of new drugs remains robust, with $90 billion in therapies expected over the next 5-7 years, while generic conversions will continue to impact revenue and margin dynamics.

• Gross profit per script has improved, aided by generic conversions and the growing mix of specialty pharmacy scripts.

• Infusion business, after a two-year re-engineering, is positioned for 30-35% EBITDA growth next year, with a strategy to expand both acute and chronic therapy offerings and geographic reach.

• Expansion will focus on deepening presence in existing states and entering new ones, with 90% of nurses employed directly.

Provider segment and acquisition strategy

• Provider businesses, especially hospice, are expected to grow faster than end-market volume, supported by high-quality services and strong rate support.

• Hospice business benefits from higher patient contact and a focus on culture and quality, with plans to expand palliative care programs to all states by next year.

• Home health outlook improved with recent regulatory changes, reducing the risk of permanent rate cuts, though future acquisition activity will depend on long-term rate stability.

• Recent acquisition of divested Amedisys and LHC branches was a unique opportunity, with integration and performance optimization prioritized for 2026.

• Long-term strategy emphasizes operational excellence, scale, and selective M&A, with potential for value-based care as a future growth driver.