Guardian Pharmacy Services (GRDN) Stephens Annual Investment Conference summary

Business model and market focus

• Focuses on assisted living and memory care, with a 13% national market share and a goal to reach 20-30% over time.

• Differentiates through clinician-led, tech-enabled service tailored to high-acuity, elderly residents.

• Assisted living chosen due to long-term growth, increasing resident acuity, and a large addressable market.

• Offers advanced analytics and medication management platforms to improve care and efficiency.

• Competes mainly with independent operators lacking scale and capital for advanced services.

Growth strategy and expansion

• Organic growth driven by increasing market share locally and nationally, contiguous greenfield startups, and deeper penetration in existing facilities.

• Pharmacies expand into adjacent markets once critical mass is reached, then establish new locations.

• Resident adoption rate is a key lever, with new facilities often starting at 50-70% and rising to 89-90% corporate average.

• Large and regional accounts are expected to grow as the market consolidates and relationships deepen.

• Inorganic growth includes acquisitions driven by both partner demand and market attractiveness, with integration focused on finding the right operator fit.

Operational integration and profitability

• Acquired pharmacies typically reach corporate average profitability in four years, but integration can be faster if systems align.

• Immediate implementation of purchasing scale and reimbursement systems accelerates integration.

• New acquisitions can quickly take on national accounts and grow organically.

• Expansion sometimes leverages opportunities from market changes, such as operator transitions.

• Pharmacies often expand physical footprint as they grow, with average size increasing over time.