Guardian Pharmacy Services (GRDN) Q1 2026 earnings summary

Executive summary

• Revenue grew 2.2% year-over-year to $336.6 million for Q1 2026, with net income rising to $13.5 million from $9.3 million in the prior-year period.

• Residents served increased 10% year-over-year to approximately 207,000, reflecting strong operational growth and robust organic expansion.

• Adjusted EBITDA rose to $29.8 million, up from $23.4 million year-over-year, and adjusted EPS was $0.29.

• Successfully offset profitability impact from Inflation Reduction Act (IRA) pricing resets, maintaining margin stability and strong service levels.

• Growth strategy combines organic expansion and acquisitions, with recent acquisitions contributing to increased residents served and prescriptions dispensed.

Financial highlights

• Gross profit increased to $76.3 million from $64.3 million year-over-year, with gross margin rising as cost of goods sold as a percentage of revenue fell to 77.3%.

• Adjusted EBITDA margin increased to 8.8% from 7.1% year-over-year.

• Net income margin improved to 4.0% of revenue, up from 2.8% year-over-year.

• Cash and cash equivalents at quarter-end were $64.9 million, with no long-term debt outstanding.

• Net cash provided by operating activities was $6.1 million for Q1 2026, down from $17.6 million in Q1 2025, mainly due to working capital changes.

Outlook and guidance

• FY 2026 revenue guidance maintained at $1.40–$1.42 billion; adjusted EBITDA guidance raised to $123–$127 million from $120–$124 million, reflecting $3 million in discrete benefits.

• Guidance incorporates anticipated fuel and labor cost pressures, with confidence in ability to manage these headwinds.

• Guidance excludes future acquisitions.

• The company believes existing cash, cash flow, and credit facility are sufficient for at least the next 12 months.