BrightSpring Health Services, Inc. (BTSG)
NASDAQ:BTSG
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BrightSpring Health Services, Inc.
(NASDAQ:BTSG)
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Rating:70Outperform
Price Target:
$46.00
▲(8.67% Upside)
Action:UpgradedDate:03/18/26
The score is driven primarily by improving financial performance (profitability, cash flow, and leverage repair) and a positive earnings outlook with strong 2026 growth and margin-expansion guidance. The main constraints are a high valuation multiple with no dividend support and mixed near-term technical momentum, alongside quantified IRA/generic and customer-transition headwinds.
Positive Factors
Balance-sheet repair
Material deleveraging through 2025 meaningfully reduces financial risk and increases strategic flexibility. A much lower debt load and recovered equity base support opportunistic M&A, targeted buybacks or debt paydown and make the firm more resilient to reimbursement or volume shocks over the next 2–6 months.
Negative Factors
IRA and generic reimbursement headwinds
Quantified multi-hundred-million dollar headwinds from IRA and brand-to-generic conversions represent structural reimbursement pressure. These reductions in realized reimbursement could compress margins and offset volume gains, forcing sustained operational offsets or margin recovery initiatives to hit guidance.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet repair
Material deleveraging through 2025 meaningfully reduces financial risk and increases strategic flexibility. A much lower debt load and recovered equity base support opportunistic M&A, targeted buybacks or debt paydown and make the firm more resilient to reimbursement or volume shocks over the next 2–6 months.
Read all positive factors
BrightSpring Health Services, Inc. (BTSG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.19B
Dividend YieldN/A
Average Volume (3M)3.19M
Price to Earnings (P/E)39.8
Beta (1Y)1.02
Revenue Growth17.23%
EPS GrowthN/A
CountryUS
Employees37,000
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.33
Shares Outstanding193,549,160
10 Day Avg. Volume3,724,937
30 Day Avg. Volume3,194,918
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 Cap1.34
Enterprise Value/Revenue0.85
Enterprise Value/Gross Profit7.21
Enterprise Value/Ebitda23.82
Forecast
1Y Price Target
$51.70Price Target Upside22.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)1.55
Revenue Forecast (FY)$14.85B
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 makes money primarily by delivering healthcare services and dispensing/providing pharmacy-related services that are reimbursed by government programs, managed care plans, and other payors. In its Provider Services segment, revenue is ...
BrightSpring Health Services, Inc. Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Positive
The call was predominantly positive: BrightSpring reported strong 2025 results with robust revenue (28% YoY) and EBITDA (34% YoY) growth, meaningful improvement in cash flow and leverage, high-quality operational metrics across business lines, and confident 2026 guidance (midpoint implying ~14% revenue and ~25% EBITDA growth). Management also outlined strategic M&A activity (Amedisys acquisition) and a pending Community Living divestiture expected to generate ~$715M of net proceeds to further reduce leverage. Offsetting these positives are notable near-term headwinds from IRA and brand-to-generic conversions (gross impacts quantified in the hundreds of millions), disruption from a large customer bankruptcy and exit of uneconomic customers, and integration/timing risk related to acquired assets. Overall, the highlights—strong growth, cash generation, margin expansion, and balance sheet improvement—outweigh the lowlights, which are being actively managed.Positive Updates
Strong Top-Line and EBITDA Growth (2025)
Full year 2025 total revenue of $12.9B, representing 28% year-over-year growth; full year adjusted EBITDA of $618M, up 34% year over year. Fourth quarter revenue grew ~29% and adjusted EBITDA grew ~41% versus prior-year quarter.
Negative Updates
Revenue Impact from IRA and Brand-to-Generic Conversions
Management disclosed material revenue headwinds from IRA and brand-to-generic conversions: specialty & infusion IRA revenue headwind ~ $200M; combined brand-to-generic + IRA impact in specialty & infusion a little over $400M; additional home & community IRA impact ~ $175M. Company stated there remain net headwinds to navigate in 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Top-Line and EBITDA Growth (2025)
Full year 2025 total revenue of $12.9B, representing 28% year-over-year growth; full year adjusted EBITDA of $618M, up 34% year over year. Fourth quarter revenue grew ~29% and adjusted EBITDA grew ~41% versus prior-year quarter.
Read all positive updates
Company Guidance
BrightSpring guided 2026 total revenue of $14.45B–$15.0B (Pharmacy Solutions $12.6B–$13.1B; Provider Services $1.85B–$1.90B), which represents ~11.9%–16.2% growth over 2025 (≈14% at the midpoint), and total adjusted EBITDA of $760M–$790M (≈23.1%–27.9% growth year‑over‑year, ≈25% at the midpoint), which includes an expected ~$30M EBITDA contribution from the Amedisys/LHC acquisition; guidance excludes Community Living and any not‑closed deals. Management flagged specific 2026 revenue headwinds—~$200M from IRA in specialty/infusion, a little over $400M total in specialty/infusion when including brand‑to‑generic conversions, and ~$175M IRA impact in home & community pharmacy—while forecasting broad‑based margin expansion from procurement and operational initiatives, 16–20+ LDD launches over the next 12–18 months, sequential quarterly growth through the year (Q1 is the shortest quarter), and home & community script pressures expected to normalize by ~Q3.BrightSpring Health Services, Inc. Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.91B | 11.27B | 8.83B | 7.72B | 6.70B |
| Gross Profit | 1.52B | 1.59B | 1.43B | 1.35B | 1.25B |
| EBITDA | 459.53M | 398.13M | 349.52M | 391.80M | 433.34M |
| Net Income | 190.67M | -18.06M | -154.60M | -53.91M | 49.80M |
Balance Sheet | |||||
| Total Assets | 6.41B | 5.93B | 5.53B | 5.44B | 5.51B |
| Cash, Cash Equivalents and Short-Term Investments | 88.37M | 61.25M | 13.07M | 13.63M | 46.73M |
| Total Debt | 2.84B | 2.90B | 3.67B | 3.68B | 3.77B |
| Total Liabilities | 4.53B | 4.27B | 4.92B | 4.66B | 4.71B |
| Stockholders Equity | 1.88B | 1.65B | 584.74M | 754.78M | 774.82M |
Cash Flow | |||||
| Free Cash Flow | 394.69M | -57.14M | 137.26M | -74.77M | 210.90M |
| Operating Cash Flow | 490.17M | 23.77M | 210.78M | -4.65M | 270.17M |
| Investing Cash Flow | -310.18M | -140.24M | -134.43M | 45.36M | -1.19B |
| Financing Cash Flow | -152.77M | 164.65M | -76.91M | -73.81M | 705.22M |
BrightSpring Health Services, Inc. Technical Analysis
Positive
42.33
Price Trends
40.45
Positive
38.10
Positive
31.49
Positive
Market Momentum
0.79
Negative
52.89
Neutral
65.83
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 42.33 is above the 20-day moving average (MA) of 41.71, above the 50-day MA of 40.45, and above the 200-day MA of 31.49, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 65.83 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 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.41B | 37.40 | 11.37% | ― | 11.41% | 8.70% | |
70 Outperform | $8.19B | 39.79 | 10.71% | ― | 17.23% | ― | |
70 Outperform | $2.48B | 126.39 | 0.01% | ― | 19.01% | 38.68% | |
64 Neutral | $2.86B | -6.96 | -132.16% | ― | 50.67% | -578.00% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
45 Neutral | $246.72M | -0.85 | -69.22% | ― | -16.65% | -71.92% |
* Healthcare Sector Average
BTSG
BrightSpring Health Services, Inc.
42.33
24.24
134.00%
EVH
Evolent Health
2.21
-7.26
-76.66%
PGNY
Progyny
17.27
-5.07
-22.69%
PRVA
Privia Health Group
20.02
-2.43
-10.82%
HNGE
Hinge Health, Inc. Class A
36.25
-3.91
-9.74%
BrightSpring Health Services, Inc. Corporate Events
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.