BrightSpring Health Services, Inc. (BTSG)
NASDAQ:BTSG
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BrightSpring Health Services, Inc.
(NASDAQ:BTSG)
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Rating:72Outperform
Price Target:
$64.00
▲(35.39% Upside)
Action:Reiterated
Date:05/22/26
The score is driven primarily by improving fundamentals (return to profitability, strong TTM free cash flow, and a healthier balance sheet) and supportive technical trend strength. These positives are moderated by thin margins and historical cash-flow volatility, extended momentum signals (RSI/Stoch), and earnings-call headwinds from IRA/brand-to-generic impacts and competitive PBM/payer dynamics.
Positive Factors
Return to profitability & strong FCF
BrightSpring’s return to positive net income and nearly one-to-one free cash flow indicates the business is generating durable internal capital. Sustainable FCF supports deleveraging, reinvestment in growth initiatives, and resilience to reimbursement or cost pressures over the next several quarters.
Negative Factors
Thin and declining margins
Persistently narrow margins leave limited buffer for rising drug acquisition, labor, or administrative costs. With gross margin trending lower, sustained cost pressure or reimbursement reductions could compress profitability quickly, making margin expansion essential to maintain durable earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Return to profitability & strong FCF
BrightSpring’s return to positive net income and nearly one-to-one free cash flow indicates the business is generating durable internal capital. Sustainable FCF supports deleveraging, reinvestment in growth initiatives, and resilience to reimbursement or cost pressures over the next several quarters.
Read all positive factors
BrightSpring Health Services, Inc. (BTSG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.96B
Dividend YieldN/A
Average Volume (3M)2.69M
Price to Earnings (P/E)53.6
Beta (1Y)1.05
Revenue Growth17.97%
EPS Growth290.87%
CountryUS
Employees37,000
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)1.52
Shares Outstanding193,918,400
10 Day Avg. Volume2,174,339
30 Day Avg. Volume2,688,916
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)4.05
Price to Sales (P/S)0.59
P/FCF Ratio19.22
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue1.01
Enterprise Value/Gross Profit8.29
Enterprise Value/Ebitda21.96
Forecast
1Y Price Target
$61.15Price Target Upside29.37% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)1.68
Revenue Forecast (FY)$15.05B
BrightSpring Health Services, Inc. Business Overview & Revenue Model
Company Description
BrightSpring Health Services, Inc. operates a home and community-based healthcare services platform in the United States. The company's platform focuses on delivering pharmacy and provider services, including clinical and supportive care in home a...
How the Company Makes Money
BrightSpring primarily makes money by delivering reimbursable healthcare services and pharmacy services to patients in home and community settings. Key revenue streams include: (1) Services revenue from home health, hospice, and community/behavior...
BrightSpring Health Services, Inc. Earnings Call Summary
Earnings Call Date:May 01, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial momentum: double-digit revenue growth, a 45% increase in adjusted EBITDA, improved margins, solid segment performance in specialty, infusion and home health, successful integration contributions, and a meaningful cash proceeds event to strengthen the balance sheet. These positives are tempered by clear, quantified headwinds from IRA impacts and brand-to-generic conversions (~$600M aggregate headwind referenced), a Q1 rise in corporate investments, and ongoing PBM/payer competitive dynamics. Management characterized the headwinds as expected and actionable and reiterated guidance, suggesting confidence in execution and mitigation plans.Positive Updates
Strong Top-Line Growth
Total company revenue of $3.6 billion in Q1 2026, up 26% year-over-year. Pharmacy Solutions revenue $3.2 billion (+25% YoY) and Provider Services revenue $442 million (+28% YoY).
Negative Updates
Home & Community Pharmacy Revenue Decline from IRA and Customer Exits
Home & Community Pharmacy revenue of $527 million, down 9% YoY. Management attributes an approximately $50 million Q1 impact from IRA and the deliberate exit of uneconomic customers. Expect ~ $45 million revenue impact per remaining quarter in 2026 and a ~ $175 million full-year Home & Community IRA impact.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total company revenue of $3.6 billion in Q1 2026, up 26% year-over-year. Pharmacy Solutions revenue $3.2 billion (+25% YoY) and Provider Services revenue $442 million (+28% YoY).
Read all positive updates
Company Guidance
BrightSpring guided 2026 (ex‑Community Living and any not‑closed acquisitions) to total revenue of $14.725–$15.225 billion (Pharmacy Solutions $12.85–$13.30 billion; Provider Services $1.875–$1.925 billion), implying 14.1%–17.9% growth vs. 2025, total adjusted EBITDA of $795–$825 million (up ~28.7%–33.6% vs. 2025) that includes ~ $30 million of year‑1 EBITDA from the Amedisys/LHC assets, approximately $500 million of annual operating cash flow (ex‑Community Living cash flow), quarterly interest expense of ~ $35 million, net debt of ~ $1.7 billion and leverage of 2.27x (pro‑forma 2.40x after an expected ~ $100 million Q2 cash tax on the ~ $811 million net Community Living proceeds), and management reiterated a ~ $175 million full‑year IRA revenue headwind to Home & Community Pharmacy (about $45 million per remaining quarter).BrightSpring Health Services, Inc. Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
72
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.65B | 12.91B | 11.27B | 8.83B | 7.72B | 6.70B |
| Gross Profit | 1.66B | 1.52B | 1.59B | 1.43B | 1.35B | 1.25B |
| EBITDA | 627.26M | 572.34M | 398.13M | 349.52M | 391.80M | 433.34M |
| Net Income | 235.56M | 190.67M | -18.06M | -154.60M | -53.91M | 49.80M |
Balance Sheet | ||||||
| Total Assets | 6.21B | 6.41B | 5.93B | 5.53B | 5.44B | 5.51B |
| Cash, Cash Equivalents and Short-Term Investments | 888.80M | 88.37M | 61.25M | 13.07M | 13.63M | 46.73M |
| Total Debt | 2.70B | 2.84B | 2.90B | 3.67B | 3.68B | 3.77B |
| Total Liabilities | 4.22B | 4.53B | 4.27B | 4.92B | 4.66B | 4.71B |
| Stockholders Equity | 1.98B | 1.88B | 1.65B | 584.74M | 754.78M | 774.82M |
Cash Flow | ||||||
| Free Cash Flow | 412.12M | 394.69M | -57.14M | 137.26M | -74.77M | 210.90M |
| Operating Cash Flow | 511.51M | 490.17M | 23.77M | 210.78M | -4.65M | 270.17M |
| Investing Cash Flow | 466.50M | -305.08M | -140.24M | -134.43M | 45.36M | -1.19B |
| Financing Cash Flow | -141.86M | -157.87M | 164.65M | -76.91M | -73.81M | 705.22M |
BrightSpring Health Services, Inc. Technical Analysis
Positive
47.27
Price Trends
49.75
Positive
44.82
Positive
37.87
Positive
Market Momentum
3.30
Negative
76.43
Negative
90.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTSG, the sentiment is Positive. The current price of 47.27 is below the 20-day moving average (MA) of 56.64, below the 50-day MA of 49.75, and above the 200-day MA of 37.87, indicating a bullish trend. The MACD of 3.30 indicates Negative momentum. The RSI at 76.43 is Negative, neither overbought nor oversold. The STOCH value of 90.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BTSG.
BrightSpring Health Services, Inc. Risk Analysis
BrightSpring Health Services, Inc. disclosed 56 risk factors in its most recent earnings report. BrightSpring Health Services, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BrightSpring Health Services, Inc. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.00B | 30.55 | 13.34% | ― | 6.59% | 36.67% | |
73 Outperform | $4.35B | -7.19 | -167.01% | ― | 49.78% | -484.05% | |
72 Outperform | $11.96B | 53.60 | 12.71% | ― | 17.97% | 290.87% | |
59 Neutral | $2.71B | 122.71 | 0.01% | ― | 24.72% | 35.79% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $444.30M | -0.89 | -77.89% | ― | -21.26% | -290.08% |
* Healthcare Sector Average
BTSG
BrightSpring Health Services, Inc.
61.68
37.75
157.75%
EVH
Evolent Health
3.95
-3.62
-47.82%
PGNY
Progyny
25.56
3.86
17.79%
PRVA
Privia Health Group
21.51
-1.32
-5.78%
HNGE
Hinge Health, Inc. Class A
56.21
15.76
38.96%
BrightSpring Health Services, Inc. Corporate Events
Executive/Board ChangesShareholder Meetings
BrightSpring Shareholders Back Board, Auditor and Pay Practices
Positive
May 21, 2026
At its May 21, 2026 annual meeting, BrightSpring Health Services reported that 186.46 million shares, representing about 96.53% of voting power as of the March 30, 2026 record date, were present in person or by proxy. Stockholders elected three Cl...
Stock BuybackPrivate Placements and FinancingRegulatory Filings and Compliance
BrightSpring Announces Secondary Offering and Share Repurchase Plan
Neutral
Mar 4, 2026
On March 2, 2026, BrightSpring Health Services, Inc. entered into an underwriting agreement with KKR-affiliated and management selling stockholders and Goldman Sachs Co. LLC for an underwritten secondary offering of 20,000,000 common shares at $4...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.