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BrightSpring Health Services, Inc. (BTSG)
:BTSG
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BrightSpring Health Services, Inc.
(NASDAQ:BTSG)
Rating:68Neutral
Price Target:
$21.00
▲(8.47% Upside)
Positive Factors
Earnings and Revenue
Management is high-quality, and the company sets expectations well, beating consensus EBITDA and revenue in 6 of the past 6 quarters.
Profitability
Management expects a meaningful acceleration in profitability for the second half, with trends that can drive significant upside.
Strategic Business Decisions
Selling the Community Living business is seen as a prudent decision, enabling management and investors to focus on the core specialty pharmacy business.
Negative Factors
Policy and Funding Risks
Some policy questions linger regarding government exposure and policy/funding risks, particularly with changes in Medicaid exposure.
Policy Headwinds
Policy headwinds from the Inflation Reduction Act are acknowledged, but other operational efficiencies are expected to offset these challenges.
BrightSpring Health Services, Inc. (BTSG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.52B
Dividend YieldN/A
Average Volume (3M)2.43M
Price to Earnings (P/E)69.3
Beta (1Y)1.07
Revenue Growth20.60%
EPS GrowthN/A
CountryUS
Employees37,000
SectorGeneral
Sector StrengthN/A
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.22
Shares Outstanding177,148,700
10 Day Avg. Volume3,360,256
30 Day Avg. Volume2,427,388
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 Cap2.20
Enterprise Value/Revenue0.65
Enterprise Value/Gross Profit5.02
Enterprise Value/Ebitda18.24
Forecast
1Y Price Target
$29.71Price Target Upside53.46% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
BrightSpring Health Services, Inc. Business Overview & Revenue Model
Company DescriptionBrightSpring Health Services, Inc. (BTSG) is a leading provider of comprehensive home and community-based health services. The company operates across several sectors, including home health care, hospice services, behavioral health, and pharmacy services. BrightSpring is dedicated to enhancing the quality of life for patients and clients by delivering a range of essential healthcare services in a personalized and compassionate manner.
How the Company Makes MoneyBrightSpring Health Services, Inc. generates revenue through a diverse range of health care services. The company's primary revenue streams include payments for home health care services, where they provide in-home medical and personal care to patients. Additionally, BrightSpring earns from hospice services, offering end-of-life care, and from behavioral health services, which include mental health and substance abuse treatment. The company also benefits financially from its pharmacy services division, which delivers medications and pharmaceutical care to patients. Key partnerships with healthcare providers, insurance companies, and government programs like Medicare and Medicaid significantly contribute to BrightSpring's earnings by facilitating access to a wide patient base and ensuring payment for services rendered.
BrightSpring Health Services, Inc. Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: -6.25%|
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted BrightSpring's strong revenue and EBITDA growth, driven by significant performance in Pharmacy Solutions and Provider Services. Increased guidance for 2025 and high patient satisfaction scores were notable achievements. However, challenges included a flat EBITDA margin and modest impact from home health rate inadequacies. Overall, the highlights significantly outweigh the lowlights.Q2-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
BrightSpring's revenue and adjusted EBITDA both grew approximately 30% year-over-year, with total company revenue of $3.1 billion, representing 29% growth, and adjusted EBITDA of $143 million, up by 29%.
Pharmacy Solutions Performance
Pharmacy Solutions revenue grew 32% to $2.8 billion, with Specialty and Infusion business revenue up 39% year-over-year. Specialty scripts increased by 38%.
Provider Services Growth
Provider Services revenue grew 11% year-over-year, with home healthcare revenue up 17%, rehab revenue up 9%, and personal care revenue up 4%.
Increased 2025 Guidance
BrightSpring increased its 2025 total revenue guidance to $12.2 billion to $12.6 billion and adjusted EBITDA guidance to $590 million to $605 million.
High Patient Satisfaction Scores
BrightSpring achieved high patient satisfaction scores across various services, with home health locations attaining 4 or more stars and hospice quality index scores well above the national average.
Infusion Business Improvements
The Infusion business saw solid revenue and EBITDA growth, driven by improved profitability, operational initiatives, and new leadership.
Negative Updates
Flat EBITDA Margin
Despite revenue growth, the EBITDA margin for the company remained flat at 4.5% compared to the previous year.
Modest Home Health Impact
The preliminary home health rate was not adequate to cover annual expense increases and operational needs, although the business represents only 1.5% of total company revenue.
Bankruptcy of a Home & Community Pharmacy Customer
A Home & Community Pharmacy customer filed for bankruptcy, but BrightSpring plans to continue servicing them, with the situation already reflected in Q2 results.
Company Guidance
During the BrightSpring Health Services, Inc. second quarter 2025 earnings call, the company announced significant financial achievements and updated guidance. Revenue grew by 29% year-over-year to $3.1 billion, driven primarily by a 32% increase in Pharmacy Solutions revenue, which reached $2.8 billion, and an 11% rise in Provider Services revenue totaling $358 million. Adjusted EBITDA also experienced a 29% growth, reaching $143 million, with a stable EBITDA margin of 4.5%. As a result of this robust performance, BrightSpring raised its full-year 2025 revenue guidance to $12.2 billion to $12.6 billion and adjusted EBITDA guidance to $590 million to $605 million, reflecting a 31.5% growth compared to 2024 at the high end. The company highlighted strong growth across its service lines, including a 39% increase in Infusion and Specialty revenue and a 17% rise in home healthcare revenue. BrightSpring also noted its continued commitment to providing high-quality care and achieving operational efficiencies, with expectations of further momentum and growth in 2026.BrightSpring Health Services, Inc. Financial Statement Overview
Summary
BrightSpring Health Services shows strong revenue and cash flow improvements, indicating positive growth. However, challenges with profitability and leverage remain, posing potential risks if not addressed.Income Statement
BrightSpring Health Services has shown a positive revenue growth trajectory, with revenue increasing significantly over recent years. The TTM revenue grew by 6.4% from the previous annual figure. Gross profit and EBIT margins are stable, though net profit margin is low due to relatively small net income. Despite profitability challenges, the company demonstrates strong revenue expansion.72
Positive
Balance Sheet
The company's debt-to-equity ratio has improved, reflecting reduced leverage, though it remains a concern with high total liabilities. Stockholders' equity has strengthened, supporting a better equity ratio. Return on equity shows improvement but remains modest, highlighting the need for better profitability to enhance shareholder value.65
Positive
Cash Flow
Operating cash flow has improved significantly, and free cash flow has turned positive, indicating better cash management. The free cash flow to net income ratio is favorable, suggesting efficient cash conversion. However, fluctuations in cash flow in previous years suggest potential volatility.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.99B | 11.27B | 8.83B | 7.72B | 6.70B | 5.58B |
| Gross Profit | 1.54B | 1.59B | 1.43B | 1.35B | 1.25B | 1.05B |
| EBITDA | 424.68M | 398.13M | 349.52M | 391.80M | 433.34M | 346.69M |
| Net Income | 65.52M | -18.06M | -154.60M | -53.91M | 49.80M | 20.81M |
Balance Sheet | ||||||
| Total Assets | 5.94B | 5.93B | 5.53B | 5.64B | 5.51B | 4.73B |
| Cash, Cash Equivalents and Short-Term Investments | 70.07M | 61.25M | 13.07M | 13.63M | 46.73M | 262.00M |
| Total Debt | 2.71B | 2.90B | 3.67B | 3.68B | 3.77B | 2.97B |
| Total Liabilities | 4.20B | 4.27B | 4.92B | 4.85B | 4.71B | 4.00B |
| Stockholders Equity | 1.74B | 1.65B | 584.74M | 754.78M | 774.82M | 704.98M |
Cash Flow | ||||||
| Free Cash Flow | 191.12M | -57.14M | 137.26M | -74.77M | 210.90M | 170.73M |
| Operating Cash Flow | 268.53M | 23.77M | 210.78M | -4.65M | 270.17M | 222.64M |
| Investing Cash Flow | -99.04M | -140.24M | -134.43M | 45.36M | -1.19B | -451.85M |
| Financing Cash Flow | -124.29M | 164.65M | -76.91M | -73.81M | 705.22M | 472.92M |
BrightSpring Health Services, Inc. Technical Analysis
Negative
19.36
Price Trends
21.78
Negative
20.44
Negative
19.65
Positive
Market Momentum
-0.47
Positive
42.48
Neutral
22.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTSG, the sentiment is Negative. The current price of 19.36 is below the 20-day moving average (MA) of 20.34, below the 50-day MA of 21.78, and below the 200-day MA of 19.65, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 22.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 1 New Risks
1.
The sale of our Community Living business may not occur on the terms agreed to by the parties, in the expected time frame, or at all and, as a result, could adversely affect the Company's business and financial condition. Q4, 2024
BrightSpring Health Services, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.61B | ― | -15.97% | ― | 16.29% | 66.01% | |
68 Neutral | $3.52B | 69.35 | 1.60% | ― | 20.60% | ― | |
68 Neutral | $1.79B | 37.99 | 6.05% | 3.87% | -17.69% | -10.24% | |
68 Neutral | $2.37B | 160.03 | 2.53% | ― | 6.79% | -18.52% | |
58 Neutral | $1.12B | ― | -10.99% | ― | 10.24% | 2.63% | |
58 Neutral | HK$15.88B | 26.77 | -16.88% | 4.76% | 8.45% | -109.32% | |
44 Neutral | $1.23B | ― | -14.18% | ― | -2.57% | 79.86% |
* General Sector Average
Performance Comparison
BTSG
BrightSpring Health Services, Inc.
19.85
8.33
72.31%
PINC
Premier
21.71
2.55
13.31%
EVH
Evolent Health
9.50
-11.37
-54.48%
TDOC
Teladoc
6.96
-0.25
-3.47%
PHR
Phreesia
27.10
4.86
21.85%
PRVA
Privia Health Group
19.45
0.10
0.52%
BrightSpring Health Services, Inc. Corporate Events
Executive/Board Changes
BrightSpring Health Services Executive Resignation Announced
Neutral
Jun 20, 2025
On June 20, 2025, Michael McMaude resigned from his roles as President of Hospice Services at BrightSpring Health Services, Inc. and CEO of its subsidiary, Abode Healthcare, Inc. His resignation was not due to any disagreements with the company. McMaude will continue as a consultant until January 26, 2027, under a Resignation Agreement that includes a monthly consulting fee and continued vesting of stock options. The agreement also outlines non-competition and non-solicitation clauses for McMaude.
The most recent analyst rating on (BTSG) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on BrightSpring Health Services, Inc. stock, see the BTSG Stock Forecast page.
Private Placements and FinancingRegulatory Filings and Compliance
BrightSpring Health Services Stock Offering Agreement
Neutral
Jun 12, 2025
On June 10, 2025, BrightSpring Health Services, Inc. entered into an underwriting agreement for an offering of 14,000,000 shares of its common stock at $21.75 per share, with the closing occurring on June 12, 2025. The company did not receive proceeds from the offering, which was conducted by the selling stockholders, but it involved customary legal and financial arrangements, including indemnification obligations under the Securities Act of 1933.
The most recent analyst rating on (BTSG) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on BrightSpring Health Services, Inc. stock, see the BTSG Stock Forecast page.
M&A TransactionsBusiness Operations and Strategy
BrightSpring Health Divests Community Living Business
Positive
Jun 10, 2025
On January 17, 2025, BrightSpring Health Services, Inc. announced the divestiture of its Community Living business for $835 million, marking a strategic shift to focus on its core services. This divestiture is expected to enhance BrightSpring’s operational efficiencies and strategic focus, allowing the company to better serve its target growth markets in home health, rehab, primary care, and hospice. The financial results of the Community Living business have been classified as discontinued operations, reflecting this major change in the company’s business strategy.
The most recent analyst rating on (BTSG) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on BrightSpring Health Services, Inc. stock, see the BTSG Stock Forecast page.
Executive/Board ChangesShareholder Meetings
BrightSpring Health Services Holds 2025 Annual Stockholders Meeting
Neutral
Jun 3, 2025
On May 28, 2025, BrightSpring Health Services, Inc. held its 2025 Annual Meeting of Stockholders, where significant decisions were made regarding the company’s governance and operations. During the meeting, Johnny Kim and Timothy A. Wicks were elected as Class I directors, and the appointment of KPMG LLP as the independent registered public accounting firm was ratified. Additionally, the stockholders approved the executive officers’ compensation and decided to hold advisory votes on executive compensation annually.
The most recent analyst rating on (BTSG) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on BrightSpring Health Services, Inc. stock, see the BTSG Stock Forecast page.
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.