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BrightSpring Health Services, Inc. (BTSG)
NASDAQ:BTSG
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BrightSpring Health Services, Inc.
(NASDAQ:BTSG)
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Rating:67Neutral
Price Target:
$43.00
▲(8.72% Upside)
BrightSpring Health Services has a moderate overall stock score of 67. The most significant factors include strong earnings call performance with increased guidance and robust revenue growth. However, financial performance is constrained by high leverage and low profitability margins. Technical analysis shows bullish momentum, but overbought conditions could lead to a pullback. The valuation is a concern due to a high P/E ratio and lack of dividend yield.
Positive Factors
Revenue Growth
Sustained double-digit revenue growth indicates durable demand and successful scaling across segments. Growing top line expands operating leverage potential, funds reinvestment and M&A, and supports long-term margin improvement if operational efficiencies persist.
Pharmacy Solutions Strength
Rapid growth in Pharmacy Solutions, especially specialty and infusion, reflects exposure to complex, higher-acuity care channels with stickier payor relationships. This segment provides durable, higher-growth cash flows and strategic differentiation versus commoditized pharmacy services.
Improved Cash Generation
Material FCF expansion and healthy FCF to net income ratio show improving cash conversion. Strong cash generation provides durable capacity to pay down debt, fund targeted acquisitions, and support operational investments independent of short-term market moves.
Negative Factors
High Leverage
Elevated leverage constrains financial flexibility, raises interest expense sensitivity, and limits strategic optionality. Even with recent reductions, sustained debt levels increase refinancing and covenant risk, reducing resilience to reimbursement or demand shocks.
Low Profitability Margins
Compressing gross and net margins signal persistent cost or reimbursement pressure. Thin profitability limits retained earnings for reinvestment, makes the business more reliant on external financing, and reduces the cushion against reimbursement or labor-cost headwinds.
Divestiture Delay / Execution Risk
Delay in the Community Living sale defers expected proceeds and strategic simplification, prolonging integration and execution uncertainty. This postponement can slow deleveraging plans, postpone capital deployment, and keeps transitional management distractions in place.
BrightSpring Health Services, Inc. (BTSG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.04B
Dividend YieldN/A
Average Volume (3M)4.71M
Price to Earnings (P/E)66.0
Beta (1Y)1.06
Revenue Growth17.23%
EPS GrowthN/A
CountryUS
Employees37,000
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.30
Shares Outstanding180,352,300
10 Day Avg. Volume4,742,774
30 Day Avg. Volume4,710,325
Financial Highlights & Ratios
PEG Ratio2.03
Price to Book (P/B)1.99
Price to Sales (P/S)0.29
P/FCF Ratio-57.52
Enterprise Value/Market Cap1.38
Enterprise Value/Revenue0.78
Enterprise Value/Gross Profit6.38
Enterprise Value/Ebitda21.85
Forecast
1Y Price Target
$44.44Price Target Upside12.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
BrightSpring Health Services, Inc. Business Overview & Revenue Model
Company DescriptionBrightSpring 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 and community settings to Medicare, Medicaid, and insured populations. It serves patients through clinical providers and pharmacists. BrightSpring Health Services, Inc. was formerly known as Phoenix Parent Holdings Inc. and changed its name to BrightSpring Health Services, Inc. in May 2021. The company was founded in 1974 and is based in Louisville, Kentucky.
How the Company Makes MoneyBrightSpring Health Services generates revenue through multiple channels, primarily by providing direct care services to individuals through government contracts, private insurance reimbursements, and out-of-pocket payments from clients. Key revenue streams include Medicaid-funded services, which make up a significant portion of their income, as well as partnerships with healthcare providers and community organizations that enhance service delivery. Additionally, the company invests in technology solutions that improve operational efficiency and care outcomes, contributing to cost savings and revenue growth. Strategic alliances with healthcare systems and participation in value-based care models further bolster its financial performance.
BrightSpring Health Services, Inc. Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance, with significant revenue and EBITDA growth across segments, especially in Pharmacy Solutions and Provider Services. The company successfully launched new therapies in Specialty Pharmacy and reported high patient satisfaction. However, challenges such as flat EBITDA margins, home health rate concerns, and a customer bankruptcy were noted. Overall, the positive aspects outweighed the negative, indicating a strong outlook.Q2-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
BrightSpring reported a 29% year-over-year increase in total company revenue, reaching $3.1 billion. Adjusted EBITDA also grew by 29% to $143 million in the second quarter of 2025.
Pharmacy Solutions Segment Success
Pharmacy Solutions revenue grew 32% year-over-year to $2.8 billion, driven by a 39% increase in Infusion and Specialty revenue and an 11% increase in Home & Community Pharmacy revenue.
Provider Services Expansion
Provider Services revenue grew 11% year-over-year to $358 million, with home healthcare revenue up 17%, rehab revenue up 9%, and personal care revenue up 4%.
Market Leadership in Specialty Pharmacy
Specialty scripts grew 38% in the second quarter, with 5 LDD launches. The LDD portfolio expanded to 133 therapies, with plans for 16 to 18 additional launches over the next 12 to 18 months.
High Patient Satisfaction and Performance Metrics
BrightSpring reported high patient satisfaction scores across various segments, including a 99% satisfaction score in rehab and a 98% timely initiation of care in home health.
Updated 2025 Guidance
The company increased its total revenue guidance to $12.2 billion to $12.6 billion and adjusted EBITDA guidance to $590 million to $605 million for the full year 2025.
Negative Updates
Flat EBITDA Margin
Despite revenue growth, the EBITDA margin remained flat at 4.5% compared to the second quarter of last year.
Home Health Rate Concerns
The preliminary home health rate was not adequate to cover annual expense increases and operational needs, posing potential future challenges.
Bankruptcy Impact on Home & Community Pharmacy
A Home & Community Pharmacy customer filed for bankruptcy, although BrightSpring plans to continue service and has accounted for the impact in Q2 results.
Company Guidance
During the second quarter of 2025, BrightSpring Health Services reported impressive financial results, with revenue and adjusted EBITDA both growing approximately 30% compared to the same period last year. The company's total revenue reached $3.1 billion, marking a 29% increase year-over-year. Pharmacy Solutions revenue was particularly strong at $2.8 billion, up 32%, while Provider Services revenue increased by 11% to $358 million. BrightSpring's adjusted EBITDA for the quarter was $143 million, maintaining an EBITDA margin of 4.5%. Given the robust performance, the company raised its 2025 guidance, projecting adjusted EBITDA to be between $590 million and $605 million, reflecting a growth rate of 31.5% compared to 2024. The company also highlighted significant operational achievements, including 38% growth in specialty scripts and strong performance across all service lines, contributing to its optimistic outlook for the remainder of the year and into 2026.BrightSpring Health Services, Inc. Financial Statement Overview
Summary
BrightSpring Health Services demonstrates moderate financial performance with revenue and cash flow growth. However, profitability margins are under pressure, and high leverage poses potential risks. The company needs to improve operational efficiency and manage debt levels to enhance financial stability.Income Statement
BrightSpring Health Services shows moderate revenue growth with a 3.57% increase in TTM. However, the gross profit margin has declined to 12.30% from previous years, indicating rising costs or pricing pressures. The net profit margin is low at 1.04%, suggesting limited profitability. EBIT and EBITDA margins have also decreased, reflecting operational challenges.65
Positive
Balance Sheet
The company has a high debt-to-equity ratio of 1.56, indicating significant leverage, which could pose financial risks. Return on equity is modest at 7.74%, showing some profitability but not exceptional. The equity ratio is relatively low, suggesting a reliance on debt financing.58
Neutral
Cash Flow
BrightSpring Health Services has shown strong free cash flow growth of 44.46% in TTM, indicating improved cash generation. The operating cash flow to net income ratio of 0.18 suggests moderate cash conversion efficiency. The free cash flow to net income ratio is healthy at 0.71, reflecting good cash flow management.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.41B | 11.27B | 8.83B | 7.72B | 6.70B | 5.58B |
| Gross Profit | 1.53B | 1.59B | 1.43B | 1.35B | 1.25B | 1.05B |
| EBITDA | 445.83M | 398.13M | 349.52M | 391.80M | 433.34M | 346.69M |
| Net Income | 129.59M | -18.06M | -154.60M | -53.91M | 49.80M | 20.81M |
Balance Sheet | ||||||
| Total Assets | 6.05B | 5.93B | 5.53B | 5.44B | 5.51B | 4.54B |
| Cash, Cash Equivalents and Short-Term Investments | 140.34M | 61.25M | 13.07M | 13.63M | 46.73M | 262.00M |
| Total Debt | 2.70B | 2.90B | 3.67B | 3.68B | 3.77B | 2.97B |
| Total Liabilities | 4.23B | 4.27B | 4.92B | 4.66B | 4.71B | 3.81B |
| Stockholders Equity | 1.82B | 1.65B | 584.74M | 754.78M | 774.82M | 704.98M |
Cash Flow | ||||||
| Free Cash Flow | 276.09M | -57.14M | 137.26M | -74.77M | 210.90M | 170.73M |
| Operating Cash Flow | 349.22M | 23.77M | 210.78M | -4.65M | 270.17M | 222.64M |
| Investing Cash Flow | -86.97M | -140.24M | -134.43M | 45.36M | -1.19B | -451.85M |
| Financing Cash Flow | -156.92M | 164.65M | -76.91M | -73.81M | 705.22M | 472.92M |
BrightSpring Health Services, Inc. Technical Analysis
Positive
39.55
Price Trends
36.90
Positive
33.41
Positive
27.46
Positive
Market Momentum
0.75
Positive
57.13
Neutral
52.90
Neutral
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 39.55 is above the 20-day moving average (MA) of 39.02, above the 50-day MA of 36.90, and above the 200-day MA of 27.46, indicating a bullish trend. The MACD of 0.75 indicates Positive momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 52.90 is Neutral, 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 57 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 | $2.09B | 38.84 | 11.37% | ― | 11.41% | 8.70% | |
70 Outperform | $3.18B | ― | ― | ― | 50.67% | -578.00% | |
69 Neutral | $2.81B | 160.35 | 2.74% | ― | 19.01% | 38.68% | |
67 Neutral | $7.04B | 66.03 | 4.25% | ― | 17.23% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $379.44M | -2.06 | -13.63% | ― | -16.65% | -71.92% |
* Healthcare Sector Average
BTSG
BrightSpring Health Services, Inc.
39.55
15.31
63.16%
EVH
Evolent Health
3.23
-7.35
-69.47%
PGNY
Progyny
24.53
0.99
4.21%
PRVA
Privia Health Group
22.77
0.23
1.02%
HNGE
Hinge Health, Inc. Class A
37.65
-2.51
-6.25%
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.