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What were the key takeaways from Owens & Minor’s earnings call?

- **Strategic Restructuring**: Sold P&HS segment to Platinum Equity, repositioning as pure-play home-based care company with $2.1B net debt.
- **Patient Direct Growth**: 3.4% YTD revenue growth in Q3 2025, driven by sleep therapy and diabetes adherence programs.
- **Optum Partnership**: New preferred provider agreement targets 100,000+ healthcare providers, positioning to offset 2026 Kaiser contract loss.
- **Financial Health**: 2025 free cash flow of $78M (YTD), with 2026 outlook improving post-divestiture and stranded cost reduction.
- **Market Opportunity**: 96M prediabetic patients and 85M undiagnosed sleep apnea patients represent secular growth tailwinds.

**【CEO Opening Remarks】**
- Announced definitive agreement to sell Products & Healthcare Services (P&HS) segment to Platinum Equity, retaining equity stake. Rebranding as a pure-play home-based care company post-divestiture in Q1 2026.
- Patient Direct segment will focus on high-margin chronic care (diabetes, sleep apnea), with 37M diabetes patients and 85M undiagnosed sleep apnea patients in the U.S.
- Strategic investments in AI, automation, and cost reduction to improve patient experience and scale operations.
- Signed preferred provider agreement with Optum, leveraging 450 sales reps to target 100,000+ referral sources.

**【CFO Financial Commentary】**
- Q3 2025 revenue: $697M (3.4% YTD growth), driven by sleep therapy, ostomy, and urology. Adjusted EBITDA: $92M (down 15% YoY due to one-time $6M benefit in 2024).
- Full-year 2025 guidance: Revenue $2.76-2.82B, adjusted EBITDA $376-382M, adjusted EPS $1.02-1.07.
- Net debt: $2.1B (includes $100M Rotech exit costs and P&HS kitting facility overstock). Free cash flow from continuing ops: $28M (Q3) / $78M (YTD).

**【Q&A Highlights】**
- **2026 Outlook**: CEO expects strong organic growth in home-based care, offsetting loss of unprofitable Kaiser contract. CFO notes 2026 free cash flow will improve with stranded costs reduction.
- **Optum Agreement**: Early-stage, with potential to replace lost Kaiser margins with fewer new contracts.
- **P&HS Cash Flow Issues**: $100M+ inventory overstock for new kitting facility, expected to normalize in Q1 2026.
- **Balance Sheet Risk**: No covenant breaches; comfortably compliant with lenders.
- **Preferred Provider Agreements**: Focus on high-margin chronic care, with 96M prediabetic patients as growth opportunity.

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