Guardian Pharmacy Services (GRDN) 47th Annual Raymond James Institutional Investor Conference summary

Market positioning and industry landscape

• Holds a 13% share in the assisted living pharmacy market, serving about 140,000 residents, with significant room for growth as the market remains highly fragmented and largely private pay.

• Faces minimal national competition in the assisted living channel, with most competitors being small independents struggling to scale or invest in value-added services.

• Enjoys high barriers to entry due to its tech-enabled, service-led model and scale advantages in purchasing, reimbursement, and national accounts.

• The "silver tsunami" demographic trend is driving secular growth, with the population of assisted living residents rising as baby boomers age.

• Omnicare's bankruptcy is being monitored as a potential opportunity for market expansion.

Growth strategy and operations

• Growth is driven by a combination of organic expansion, greenfield startups in contiguous markets, and disciplined M&A, with about two-thirds of growth being organic.

• M&A targets are typically strong operators who want to grow with the platform; integration takes 3-4 years to reach mature profitability.

• Recent investments in new pharmacies have temporarily lowered EBITDA margins, but these are expected to be accretive by 2027-2029.

• Achieves high adoption rates (90%) within facilities by equipping operators and families with tools and support, leading to strong B2C conversion over time.

• Maintains a robust data analytics platform to track clinical interventions and optimize medication regimens, resulting in significant cost savings for customers.

Financial performance and reimbursement

• Reports strong financial performance, high cash conversion (60%), and no debt.

• Revenue per script is about $50, with gross profit per script around $10; generics make up 90% of volume and a growing share of profit.

• Successfully mitigated the impact of the Inflation Reduction Act on EBITDA by moving to direct PBM contracts and aligning margin dollars with effort.

• Market share does not affect reimbursement rates, but high share in certain markets increases importance to PBMs and CMS for network adequacy.

• No preference between standalone Part D and Medicare Advantage plans, as reimbursement is the same; value is delivered through high adherence rates that benefit payers.