BrightSpring Health's Q2 2025: Unraveling Contradictions on IRA Impact, Infusion Growth, and Profit Margins

Impact of IRA on pharmacy growth, infusion business growth expectations, impact of Inflation Reduction Act (IRA), home health and hospice growth potential, generic drug impact on gross profit per script are the key contradictions discussed in BrightSpring Health Services' latest 2025Q2 earnings call.



Strong Financial Performance:
- BrightSpring Health Services reported revenue of $3.1 billion for Q2 2025, representing 29% growth year-over-year.
- The total company adjusted EBITDA grew by 29% compared to the same period last year, reaching $143 million.
- The growth was driven by robust volume and revenue results across the Pharmacy Solutions and Provider Services segments, particularly in Onco360 and CareMed Specialty Pharmacy business.

Pharmacy Solutions Growth:
- Pharmacy Solutions revenue grew 32% year-over-year, with $2.8 billion in revenue for Q2 2025.
- The increase was driven by strong service levels with payer and manufacturing partners, generic drug conversions, and new LDD launches, which contributed to a healthy 38% growth in Specialty scripts.

Provider Services Expansion:
- Provider Services revenue rose by 11% year-over-year, totaling $358 million in Q2 2025.
- This growth was attributed to increased census in home health and hospice, leading to a 17% revenue increase in the Home Health Care segment and a 10% growth in person served.

Efficiency and Cost Management:
- The company's procurement and efficiency programs contributed to growth, with cash flow from operations at $49 million in Q2 2025.
- Efforts to leverage scale and technology, along with continuous improvement in operations, led to cost reductions and margin improvement.