Key Highlights

  • Net Revenue was USD 1.49 billion against an estimate of USD 1.48 billion and USD 1.435 billion a year earlier.
  • EPS was USD 0.49 against an estimate of USD 0.49; GAAP diluted EPS was USD 0.38 against USD 0.32.
  • Net income was USD 57.4 million, with Gross Profit of USD 285.0 million at a 19.1% margin.
  • A Merger agreement dated October 5 provides USD 32.05 cash per share, closing stated for the first half of 2027.

Option Care Health, Inc. (NASDAQ:OPCH) reported third quarter net revenue of USD 1.49 billion, against an estimate of USD 1.48 billion and USD 1.435 billion a year earlier. EPS was USD 0.49, matching the USD 0.49 estimate, while GAAP diluted EPS was USD 0.38. The home infusion provider also disclosed a pending take-private agreement with affiliates of Clayton, Dubilier & Rice and McKesson.

Revenue, Margins and Earnings

Net revenue was USD 1,493.5 million, which the company stated was 4.1% above the prior year. Infusion services net revenue was USD 1,466.8 million, with other revenue of USD 26.8 million. Gross profit was USD 285.0 million against USD 272.9 million, and the gross profit Margin was 19.1% against 19.0%.

Operating income was USD 89.2 million against USD 84.5 million. Selling, general and administrative expenses were USD 177.6 million, and the company attributed the increase mainly to Transaction Costs tied to the pending merger. Interest expense, net was USD 12.9 million against USD 14.1 million, and income tax expense was USD 21.5 million at an effective rate of 27.2%, compared with 24.9%. Net Income was USD 57.4 million against USD 51.8 million.

Therapy Portfolio and Merger Terms

The company described high single-digit growth in its acute portfolio of therapies and low single-digit growth in its chronic portfolio. Growth in the IG/neuro and rare and orphan therapies was offset by a decline in chronic inflammatory disease therapies, which it linked to patient attrition and therapy mix. Management continues to cite a negative effect of approximately USD 55 million on 2026 gross profit from chronic inflammatory disease dynamics.

Under the merger agreement, each common share would convert to USD 32.05 in cash, subject to stockholder approval and regulatory approvals. The company would pay a termination fee of approximately USD 145.96 million in certain circumstances, and the buyer group would owe a reverse termination fee of approximately USD 291.93 million. While the merger is pending, acquisitions, capital expenditures and financing activities are subject to restrictions in the agreement.

Cash Flow, Debt and Capital Returns

For the nine months, net revenue was USD 4,286.6 million and net income was USD 156.7 million, or USD 1.02 per diluted share, against USD 149.1 million and USD 0.91. Net cash provided by Operating Activities was USD 286.2 million against USD 222.6 million, which the company tied to lower inventory from Supply chain and Working Capital initiatives. Investing outflows were USD 27.7 million, mainly capital expenditures.

Cash and cash equivalents were USD 299.1 million at September 30, against USD 232.6 million at year end 2025, with USD 846.0 million available under Credit facilities. Long-term debt, net, was USD 1,151.1 million. The company made no repurchases in the third quarter. In the first nine months it bought 7,880,038 shares at an average of USD 21.26, totaling USD 167.5 million, under a program the board raised to USD 1.0 billion in January.

Data Points to Watch

Net revenue of USD 1.49 billion sits alongside GAAP diluted EPS of USD 0.38, a 19.1% Gross Profit Margin and cash of USD 299.1 million. The company operates 87 full service pharmacies and 188 ambulatory infusion suites.

Management named the first half of 2027 as the period for the merger to close, October 5, 2027 as the date after which termination rights apply, and November 30, 2026 as the expiry of its USD 300.0 million Interest Rate cap hedge. It also stated that the First Lien Term Loan matures September 22, 2032 and the Senior Notes October 31, 2029.