# 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

## 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 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 |
| 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 |
| 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% |

## 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-Q2 | 2023-03-31 |  | 39,208,000 |  | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.21 | 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-Q3 | 2024-06-30 |  | 53,043,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 |  |  | 0.30 | 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-Q3 | 2025-06-30 |  | 50,523,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 |  |  | 0.31 | 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 |

## Macro Cross-References
- [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- [UNRATE](/indicator/UNRATE/): Unemployment Rate
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit
- [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food
- [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy
- [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter
- [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index
- [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate
- [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate
- [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio
- [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed
- [CE16OV](/indicator/CE16OV/): Employment Level
- [ICSA](/indicator/ICSA/): Initial Claims
- [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm
- [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period
- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade
- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income
- [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate
- [M2SL](/indicator/M2SL/): M2
- [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance
- [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States
- [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States
- [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States
- [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States
- [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States
- [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized
- [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized
- [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks
- [GDP](/indicator/GDP/): Gross Domestic Product
- [GPDI](/indicator/GPDI/): Gross Private Domestic Investment
- [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment
- [PCEC](/indicator/PCEC/): Personal Consumption Expenditures
- [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services
- [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt
- [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit
- [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts
- [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures
- [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing
- [USCONS](/indicator/USCONS/): All Employees, Construction
- [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade
- [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities
- [USGOVT](/indicator/USGOVT/): All Employees, Government
- [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private
- [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods
- [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- [BUSINV](/indicator/BUSINV/): Total Business Inventories
- [EXPGS](/indicator/EXPGS/): Exports of Goods and Services
- [IMPGS](/indicator/IMPGS/): Imports of Goods and Services
- [IR](/indicator/IR/): Import Price Index (End Use): All Commodities
- [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1014739/000101473926000011/bios-20260331.htm

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization.
Confidence: high
Filing date: 2026-04-30
Report date: 2026-03-31

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 87 full service pharmacies, including 73 with ambulatory infusion suites. Additionally, the Company has 111 stand-alone ambulatory infusion suites, including 28 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.

21

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 months ended March 31, 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.

22

Table of Contents

Results of Operations

The following table presents Option Care Health’s consolidated results of operations for the three months ended March 31, 2026 and 2025 (in thousands, except for percentages):

Three Months Ended March 31,

2026

2025

Amount

% of Revenue

Amount

% of Revenue

NET REVENUE

$

1,350,654 

100.0 

%

$

1,332,972 

100.0 

%

COST OF REVENUE

1,088,640 

80.6 

%

1,069,920 

80.3 

%

GROSS PROFIT

262,014 

19.4 

%

263,052 

19.7 

%

OPERATING COSTS AND EXPENSES:

Selling, general and administrative expenses

174,562 

12.9 

%

168,118 

12.6 

%

Depreciation and amortization expense

14,907 

1.1 

%

15,746 

1.2 

%

Total operating expenses

189,469 

14.0 

%

183,864 

13.8 

%

OPERATING INCOME

72,545 

5.4 

%

79,188 

5.9 

%

OTHER INCOME (EXPENSE):

Interest expense, net

(13,304)

(1.0)

%

(13,231)

(1.0)

%

Equity in earnings of joint ventures

1,689 

0.1 

%

1,729 

0.1 

%

Other, net

73 

— 

%

(4,130)

(0.3)

%

Total other (expense) income

(11,542)

(0.9)

%

(15,632)

(1.2)

%

INCOME BEFORE INCOME TAXES

61,003 

4.5 

%

63,556 

4.8 

%

INCOME TAX EXPENSE

15,660 

1.2 

%

16,814 

1.3 

%

NET INCOME

$

45,343 

3.4 

%

$

46,742 

3.5 

%

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:

Change in unrealized (loss) gain on cash flow hedges, net of income tax benefit of $239 and $783, respectively

(732)

(0.1)

%

(2,398)

(0.2)

%

OTHER COMPREHENSIVE (LOSS) INCOME

(732)

(0.1)

%

(2,398)

(0.2)

%

NET COMPREHENSIVE INCOME

$

44,611 

3.3 

%

$

44,344 

3.3 

%

23

Table of Contents

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 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 March 31, 2026 and 2025.

Gross Profit

Three Months Ended March 31,

2026

2025

Variance

(in thousands, except for percentages)

Net revenue

$

1,350,654 

$

1,332,972 

$

17,682 

1.3 

%

Cost of revenue

1,088,640 

1,069,920 

18,720 

1.7 

%

Gross profit

$

262,014 

$

263,052 

$

(1,038)

(0.4)

%

Gross profit margin

19.4 

%

19.7 

%

The increase in net revenue was primarily driven by high single-digit growth in the Company’s acute portfolio of therapies, while the chronic portfolio of therapies were down slightly compared to prior year. Acute growth was driven by a focus on maintaining referral source and payer relationships along with strong partnerships with hospitals and health systems. The chronic portfolio revenue was primarily impacted by shifts within the chronic inflammatory disease (“CID”) portfolio, related to increased patient attrition and unfavorable therapy mix, as well as slower than expected growth of certain other specialty therapies. Management now expects the CID dynamics to negatively impact gross profit by approximately $55 million in 2026. The increase in cost of revenue was primarily driven by the growth in revenue and therapy mix, while the decrease in gross profit margin was primarily due to headwinds on the CID portfolio.

Operating Expenses

Three Months Ended March 31,

2026

2025

Variance

(in thousands, except for percentages)

Selling, general and administrative expenses

$

174,562 

$

168,118 

$

6,444 

3.8 

%

Depreciation and amortization expense

14,907 

15,746 

(839)

(5.3)

%

Total operating expenses

$

189,469 

$

183,864 

$

5,605 

3.0 

%

The increase in selling, general and administrative expenses during the three months ended March 31, 2026 was primarily due to investment in internal resources, technology, and other general costs to support both ongoing business needs as well as future business growth. The Company anticipates these investments will drive revenue growth and enhance profitability and cash generation over time.

24

Table of Contents

Other Income (Expense)

Three Months Ended March 31,

2026

2025

Variance

(in thousands, except for percentages)

Interest expense, net

$

(13,304)

$

(13,231)

$

(73)

0.6 

%

Equity in earnings of joint ventures

1,689 

1,729 

(40)

(2.3)

%

Other, net

73 

(4,130)

4,203 

NM(1)

Total other (expense) income

$

(11,542)

$

(15,632)

$

4,090 

(26.2)

%

(1) Not meaningful

The change in Other, net was primarily attributable to prior year accruals related to an abandoned or unclaimed property voluntary disclosure agreement (“VDA”) program with no comparable accruals in the current period. This VDA is related to the pre-merger operations of BioScrip, Inc. (“BioScrip”), which was entered into by BioScrip prior to its merger with the Company in 2019. As of March 31, 2026, the matters related to this program are ongoing.

Income Tax Expense

Three Months Ended March 31,

2026

2025

Variance

(in thousands, except for percentages)

Income tax expense

$

15,660 

$

16,814 

$

(1,154)

(6.9)

%

The Company recorded income tax expense of $15.7 million and $16.8 million for the three months ended March 31, 2026 and 2025, respectively, which represents an effective tax rate of 25.7% and 26.5%, respectively. The variance in the Company’s effective tax rate of 25.7% and 26.5% for the three months ended March 31, 2026 and 2025, respectively, compared to the federal statutory rate of 21%, as well as year-over-year changes, was primarily attributable to state taxes in multiple jurisdictions and various non-deductible expenses.

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization.
Confidence: high

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.

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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.

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 

%

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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

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%

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

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 

%

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.

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Other Income (Expense)

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 

%

(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’s First Lien Term Loan, compared to the year ended December 31, 2024. See Note 11, Indebtedness, of the consolidated financial statements for further information.

The change in other, net during the year ended December 31, 2025 was primarily attributable to accruals for an abandoned or unclaimed property voluntary disclosure agreement program related to the pre-merger operations of BioScrip, Inc. (“BioScrip”), which was entered into by BioScrip prior to its merger with the Company in 2019. As of December 31, 2025, the matters related to this program are ongoing. Additionally, the change in other, net was attributable to the $4.7 million loss on extinguishment of debt from the Company’s debt refinancing during the year ended December 31, 2025 with no comparable activity during the year ended December 31, 2024.

Income Tax Expense

Year Ended December 31,

2025

2024

Variance

(in thousands, except for percentages)

Income tax expense

$

75,315 

$

71,776 

$

3,539 

4.9 

%

The Company recorded income tax expense of $75.3 million and $71.8 million, which represents an effective tax rate of 26.6% and 25.3% for the years ended December 31, 2025 and 2024, respectively. The income tax expense for the year ended December 31, 2025 includes the release of $0.4 million of state valuation allowance, compared to a $2.2 million release in 2024. The variance in the Company’s effective tax rate of 26.6% and 25.3% for the years ended December 31, 2025 and 2024, respectively, compared to the federal statutory rate of 21%, as well as year-over-year changes, was primarily attributable to the inclusion of state taxes in multiple jurisdictions, various non-deductible expenses, and changes in state valuation allowance.

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Net Income and Other Comprehensive (Loss) Income

Year Ended December 31,

2025

2024

Variance

(in thousands, except for percentages)

Net income

$

207,585 

$

211,823 

$

(4,238)

(2.0)

%

Other comprehensive income (loss), net of tax:

Change in unrealized (loss) gain on cash flow hedges, net of income tax benefit (expense)

(6,941)

(3,931)

(3,010)

76.6 

%

Other comprehensive (loss) income

(6,941)

(3,931)

(3,010)

76.6 

%

Net comprehensive income

$

200,644 

$

207,892 

$

(7,248)

(3.5)

%

The change in net income was attributable to the factors described in the above sections.

For the years ended December 31, 2025 and 2024, the change in unrealized (loss) gain on cash flow hedge, net of income tax benefit (expense) was related to the change in fair market value of the $300.0 million interest rate cap hedge executed in October 2021.

Net comprehensive income decreased to $200.6 million for the year ended December 31, 2025, compared to net comprehensive income of $207.9 million for the year ended December 31, 2024, primarily as a result of the factors described in the above sections.

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Table of Contents

Liquidity and Capital Resources

For the years ended December 31, 2025 and 2024, the Company’s primary sources of liquidity were cash and cash equivalents of $232.6 million and $412.6 million, respectively. As of December 31, 2025, the Company had $396.0 million of borrowings available under its credit facilities (net of $4.0 million undrawn letters of credit issued and outstanding), described further below. During the years ended December 31, 2025 and 2024, the Company’s positive cash flows from operations have enabled investments in pharmacy, infusion suites, and information technology infrastructure to support growth and create additional capacity in the future, as well as to pursue acquisitions and repurchases of Company shares.

The Company’s primary uses of cash and cash equivalents include supporting our ongoing business activities, internal investment in resources to support future growth, investment in capital expenditures in both facilities and technology, the pursuit of acquisitions, and the pursuit of share repurchases.

Ongoing operating cash outflows are associated with procuring and dispensing drugs, personnel and other costs associated with servicing patients, as well as paying cash interest on outstanding debt and cash taxes. Ongoing investing cash flows are primarily associated with capital projects and business acquisitions, the improvement and maintenance of our pharmacy facilities and investment in our information technology systems. Ongoing financing cash flows are primarily associated with the quarterly principal payments on our outstanding debt, along with potential future share repurchases.

Our business strategy includes strategic deployment of capital to internal investments in resources, infrastructure, and technologies to support future growth, the pursuit of strategic tuck-in and adjacent acquisitions that complement our existing operations and the pursuit of share repurchases. We continue to evaluate acquisition opportunities and view acquisitions as a key part of our growth strategy. The Company has generally funded its acquisitions with cash and cash equivalents. The Company may require additional capital in excess of current availability in order to complete future acquisitions. It is impossible to predict the amount of capital that may be required for acquisitions, and there is no assurance that sufficient financing for these activities will be available on acceptable terms.

Short-Term and Long-Term Liquidity Requirements

The Company’s ability to make principal and interest payments on any borrowings under our credit facilities and our ability to fund planned capital expenditures will depend on our ability to generate cash and cash equivalents in the future, which to a certain extent, is subject to general economic, financial, competitive, regulatory and other conditions. Based on our current level of operations and planned capital expenditures, we believe that our existing cash and cash equivalents balances, expected cash flows generated from operations, and credit facility will be sufficient to meet our operating requirements over the next 12 months and beyond. We may require additional borrowings under our credit facilities and alternative forms of financings or investments to achieve our longer-term strategic plans.

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Credit Facilities

On September 22, 2025, the Company entered into the fourth amendment (“the Fourth Amendment”) to the amended and restated First Lien Credit Agreement (the “Credit Agreement”) dated as of October 27, 2021. The Fourth Amendment, among other things, (i) refinances the existing term loans with a new class of term loans (the “First Lien Term Loan”), reduces the interest rate on the First Lien Term Loan from Term Secured Overnight Financing Rate (“SOFR”) plus 2.25% to Term SOFR plus 1.75% and extends the maturity date of the First Lien Term Loan to September 22, 2032, (ii) provides for an additional $49.6 million of incremental First Lien Term Loan indebtedness, and (iii) extends the maturity date of the revolving credit commitments under the Credit Agreement (the “Revolver Facility”) to September 22, 2030.

Under the Fourth Amendment, the principal balance of the First Lien Term Loan is repayable in quarterly installments of $1.7 million plus interest, with a final payment of all remaining outstanding principal due on September 22, 2032. Interest on the First Lien Term Loan is payable monthly on either (i) the SOFR plus an applicable margin of 1.75% for Term SOFR Loans; or (ii) a base rate, plus 0.75% for Base Rate Loans.

The Senior Notes bear interest at a rate of 4.375% per annum, which are payable semi-annually in arrears on October 31 and April 30 of each year, and which began on April 30, 2022. The Senior Notes mature on October 31, 2029.

The Company’s Revolver Facility provides for borrowings up to $400.0 million pursuant to which such lenders have agreed to make Revolving Credit Loans to the Company. The Revolver Facility matures on the date that is the earlier of (i) September 22, 2030 and (ii) the date that is 91 days prior to the stated maturity date applicable to the Senior Notes to the extent any amount of the Senior Notes remains unpaid and outstanding as of the date that is 91 days prior to the stated maturity date applicable to the Senior Notes. Borrowings under the Revolver Facility will bear interest at a rate equal to, at the option of the Company, either (i) the Term SOFR applicable thereto plus the Applicable Rate or (ii) the then-applicable Base Rate plus the Applicable Rate, which Applicable Rate shall be, subject to certain caveats thereto, as follows (i) until delivery of financial statements and related Compliance Certificate for the first full fiscal quarter ending after the effective date of the Fourth Amendment, (A) for Term SOFR Loans, 1.75%, or (B) for Base Rate Loans, 0.75% and (ii) thereafter, the Applicable Rate for Term SOFR Loans and Base Rate Loans, based upon the Total Net Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to the terms of the Credit Agreement. As of December 31, 2025, the Company had $4.0 million of undrawn letters of credit issued and outstanding, resulting in net borrowing availability under the Revolver Facility of $396.0 million.

Interest payments over the course of long-term debt obligations total an estimated $338.1 million based on final maturity dates of the Company’s credit facilities. Interest payments are calculated based on current rates as of December 31, 2025. Actual payments are based on changes in SOFR and exclude the interest rate cap derivative instrument.

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Cash Flows

Year Ended December 31, 2025 Compared to Year Ended December 31, 2024

The following table presents selected data from Option Care Health’s consolidated statements of cash flows for the years ended December 31, 2025 and 2024:

Year Ended December 31,

2025

2024

Variance

(in thousands)

Net cash provided by operating activities

$

258,447 

$

323,392 

$

(64,945)

Net cash used in investing activities

(161,083)

(36,470)

(124,613)

Net cash used in financing activities

(277,305)

(218,206)

(59,099)

Net (decrease) increase in cash and cash equivalents

(179,941)

68,716 

(248,657)

Cash and cash equivalents - beginning of period

412,565 

343,849 

68,716 

Cash and cash equivalents - end of period

$

232,624 

$

412,565 

$

(179,941)

Cash Flows from Operating Activities

The change in cash provided by operating activities during the year ended December 31, 2025 was primarily due to increases in inventories due to strategic purchases and a focus on maximizing the impact from volume based rebates and prompt pay purchase discounts. The change was also largely related to an increase in accounts receivable driven by revenue growth. The change in cash provided by operating activities for the year ended December 31, 2024 was largely driven by an increase in accounts payable due to timing of strategic purchases in inventories ahead of expected future price increases on certain drugs.

Cash Flows from Investing Activities

The increase in cash used in investing activities during the year ended December 31, 2025 was primarily related to the Intramed Plus acquisition activity with no comparable activity during the year ended December 31, 2024.

Cash Flows from Financing Activities

The increase in cash used in financing activities was primarily related to the Company’s $310.0 million repurchase of common stock and related excise taxes during the year ended December 31, 2025, compared to $252.7 million repurchase of common stock and related excise taxes during the year ended December 31, 2024. The increase was partially offset by the Company’s debt refinancing in September 2025, in which $49.6 million in net proceeds from issuance of debt was received.

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Critical Accounting Estimates

The Company prepares its consolidated financial statements in accordance with United States generally accepted accounting principles (“GAAP”), which require the Company to make estimates and assumptions. The Company evaluates its estimates and assumptions on an ongoing basis. Estimates and assumptions are based on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making assumptions about the carrying values of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period presented. The Company’s actual results may differ from these estimates, and different assumptions or conditions may yield different estimates.

The following discussion is not intended to be a comprehensive list of all the accounting policies, estimates or assumptions made in the preparation of our financial statements. A discussion of our significant accounting policies, including further discussion of the accounting policies described below, can be found in Note 2, Summary of Significant Accounting Policies, within the notes to the consolidated financial statements included in Item 8 of this Annual Report.

Revenue Recognition and Accounts Receivable

Net revenue is reported at the net realizable value amount that reflects the consideration the Company expects to receive in exchange for providing services. Revenues are from commercial payers, government payers, and patients for goods and services provided and are based on a gross price based on payer contracts, fee schedules, or other arrangements less any implicit price concessions.

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.

The Company assesses the expected consideration to be received at the time of patient acceptance based on the verification of the patient’s insurance coverage, historical information with the patient, similar patients, or the payer. Performance obligations are determined based on the nature of the services provided by the Company. The majority of the Company’s performance obligations are to provide infusion services to deliver medicine, nutrients, or fluids directly into the body.

The Company provides a variety of infusion-related therapies to patients, which frequently include multiple deliverables of pharmaceutical drugs and related nursing services. After applying the criteria from Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”), the Company concluded that multiple performance obligations exist in its contracts with its customers. Revenue is allocated to each performance obligation based on relative standalone price, determined based on reimbursement rates established in the third-party payer contracts. Pharmaceutical drug revenue is recognized at the time the pharmaceutical drug is delivered to the patient, and nursing revenue is recognized on the date of service.

The Company’s accounts receivable are reported at the net realizable value amount that reflects the consideration the Company expects to receive in exchange for providing services, which is inclusive of adjustments for price concessions. The majority of accounts receivable are due from private insurance carriers and governmental healthcare programs, such as Medicare and Medicaid.

Price concessions may result from patient hardships, patient uncollectible accounts sent to collection agencies, lack of recovery due to not receiving prior authorization, differing interpretations of covered therapies in payer contracts, different pricing methodologies, or various other reasons.

Included in accounts receivable are earned but unbilled gross receivables. Delays ranging from one day up to several weeks between the date of service and billing can occur due to delays in obtaining certain required payer-specific documentation from internal and external sources.

After applying the criteria from ASC 606, an allowance for doubtful accounts is established only as a result of an adverse change in the payers’ ability to pay outstanding billings. As of December 31, 2025 and 2024, the Company had an immaterial allowance for doubtful accounts. The Company recorded an allowance for implicit price concessions based on its historical experience of additional revenue being recorded or revenue being written off when amounts received are greater than or less than the originally estimated net realizable value. The detailed assessments included, among other factors, current over/under payments which had not yet been applied to an account, historical contractual adjustments, and historical payments. Contractual allowance estimates are adjusted to actual amounts as cash is received and claims are settled.

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Business Acquisitions

The Company accounts for business acquisitions in accordance with ASC Topic 805, Business Combinations (“ASC 805”), with assets and liabilities being recorded at their acquisition date fair values and goodwill being calculated as the purchase price in excess of the net identifiable assets. The application of ASC 805 requires management to make estimates and assumptions when determining the acquisition date fair values of acquired assets and assumed liabilities. Management’s estimates and assumptions include, but are not limited to, the future cash flows an asset is expected to generate and the weighted-average cost of capital. See Note 3, Business Acquisitions, for further discussion of business acquisitions.