Guardian Pharmacy 2025 Q3 Earnings Record Net Income Surges 109.1%

Guardian Pharmacy (GRDN) delivered a stunning turnaround in Q3 2025, reporting a 20% revenue increase to $377.43 million and a net income of $9.59 million—up from a $105.82 million loss in the prior year. The company exceeded revenue estimates by 6.63% and raised full-year guidance, signaling strong operational momentum.

Revenue

Guardian Pharmacy’s Q3 revenue surged 20.0% to $377.43 million, driven by a 13% year-over-year increase in resident count to 204,000. The company’s pharmacy services to long-term care facilities (LTCFs) saw robust demand, with assisted living and behavioral health facilities accounting for over two-thirds of revenue. Strategic acquisitions, including Managed Healthcare Pharmacy in Oregon, expanded its geographic footprint and contributed to the growth.

Earnings/Net Income

The company returned to profitability with EPS of $0.16, reversing a $2.00 loss per share in 2024 Q3. Net income reached $9.59 million, a 109.1% improvement from the prior year’s loss. This marked a record high for Q3 net income, reflecting effective cost management and reduced share-based compensation expenses.

Post-Earnings Price Action Review

The strategy of buying GRDN shares post-revenue beats and holding for 30 days appears favorable, supported by historical market trends. Guardian’s 20% revenue growth and raised guidance bolster investor confidence. However, risks like policy changes and acquisition integration costs remain.

CEO Commentary

CEO Fred Burke highlighted disciplined execution and purposeful growth, noting the company’s model combines local expertise with national scale. He emphasized navigating challenges like the Inflation Reduction Act and expanding through organic growth and acquisitions.

Guidance

Guardian raised 2025 revenue guidance to $1.43–$1.45 billion (from $1.39–$1.41 billion) and adjusted EBITDA to $104–$106 million (from $100–$102 million). The company expects Q4 SG&A costs to trend lower and cash conversion above 60%.

Additional News

1. M&A Activity: Guardian acquired Managed Healthcare Pharmacy, establishing its first Oregon presence and strengthening its Pacific Northwest footprint.

2. Price Target Hike: Truist raised its GRDN price target to $30, reflecting optimism about growth and operational execution.

3. Capital Structure: The company’s balance sheet remains strong, with $36.5 million in cash and no long-term debt.