BrightSpring Health Services (NASDAQ:BTSG) Issues Earnings Results

BrightSpring Health Services (NASDAQ:BTSG) released its quarterly earnings data on Friday. The company reported $0.33 EPS for the quarter, missing the consensus estimate of $0.34 by ($0.01), FiscalAI reports. BrightSpring Health Services had a net margin of 1.04% and a return on equity of 11.61%. The firm had revenue of $3.55 billion for the quarter, compared to the consensus estimate of $3.38 billion. During the same quarter in the prior year, the firm earned $0.11 EPS. The company’s revenue was up 29.3% compared to the same quarter last year.

Here are the key takeaways from BrightSpring Health Services’ conference call:

• BrightSpring delivered strong 2025 results with $12.9 billion revenue (up ~28% YoY) and $618 million adjusted EBITDA (up ~34% YoY), and issued 2026 guidance of $14.45–$15.0 billion revenue and $760–$790 million adjusted EBITDA (midpoint ≈ +25% YoY).
• The FTC‑approved divestiture of the community living business is expected to close by end of Q1, providing ~$715 million net proceeds that the company intends to use primarily to pay down debt and strengthen the balance sheet.
• BrightSpring closed the acquisition of 107 Amedisys/LHC home‑health branches for $239 million (cash) in Q4; the assets had pro forma 2025 revenue of ~$345 million and are expected to contribute ~$30 million to 2026 adjusted EBITDA, with integration and margin improvement targeted over time.
• Pharmacy growth is strong (specialty/infusion up sharply and a 149‑LDD portfolio with 16–20 launches planned), but management flagged ~$600 million of 2026 revenue headwinds from IRA changes, brand→generic conversions and customer bankruptcies — a near‑term revenue risk even if some conversions boost margins.
• Operating cash flow improved to $490 million in 2025, net debt was ~$2.5 billion at year‑end, leverage fell to 2.99x (2.6x pro forma for the divestiture) and management targets ~2.5x leverage by mid‑year, increasing capital flexibility.

BrightSpring Health Services Stock Performance

BTSG traded up $1.30 during trading on Friday, hitting $41.43. 6,195,393 shares of the company traded hands, compared to its average volume of 1,722,900. BrightSpring Health Services has a one year low of $15.48 and a one year high of $44.87. The stock’s fifty day moving average is $39.05 and its 200 day moving average is $33.10. The company has a quick ratio of 1.38, a current ratio of 1.79 and a debt-to-equity ratio of 1.36. The firm has a market cap of $7.47 billion, a P/E ratio of 67.92, a price-to-earnings-growth ratio of 0.55 and a beta of 2.36.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD raised its holdings in shares of BrightSpring Health Services by 4.7% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 10,662,236 shares of the company’s stock worth $399,302,000 after purchasing an additional 478,436 shares during the period. Invesco Ltd. grew its stake in shares of BrightSpring Health Services by 13.4% during the 4th quarter. Invesco Ltd. now owns 10,595,232 shares of the company’s stock worth $396,791,000 after acquiring an additional 1,248,107 shares during the period. T. Rowe Price Investment Management Inc. grew its stake in shares of BrightSpring Health Services by 21.7% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 6,123,865 shares of the company’s stock worth $229,339,000 after acquiring an additional 1,091,757 shares during the period. Alliancebernstein L.P. increased its holdings in BrightSpring Health Services by 12.1% in the 2nd quarter. Alliancebernstein L.P. now owns 5,450,085 shares of the company’s stock worth $128,568,000 after acquiring an additional 588,642 shares during the last quarter. Finally, State Street Corp raised its stake in BrightSpring Health Services by 99.5% in the 4th quarter. State Street Corp now owns 4,033,149 shares of the company’s stock valued at $151,041,000 after acquiring an additional 2,011,095 shares during the period.

Analysts Set New Price Targets

Several research analysts have weighed in on BTSG shares. BTIG Research upped their price objective on shares of BrightSpring Health Services from $50.00 to $55.00 and gave the stock a “buy” rating in a report on Monday, February 2nd. William Blair began coverage on shares of BrightSpring Health Services in a research report on Monday, December 8th. They issued an “outperform” rating on the stock. Wells Fargo & Company boosted their price objective on BrightSpring Health Services from $39.00 to $43.00 and gave the stock an “overweight” rating in a report on Wednesday, January 7th. Mizuho set a $45.00 price objective on BrightSpring Health Services in a research note on Friday, January 9th. Finally, Zacks Research lowered shares of BrightSpring Health Services from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, January 6th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $41.33.

About BrightSpring Health Services

BrightSpring Health Services (NASDAQ: BTSG) is a leading provider of home and community-based care and workforce solutions aimed at seniors, individuals with disabilities and those facing behavioral health challenges. The company’s operations encompass a broad spectrum of services, including personal care, skilled nursing, therapy, habilitation and supported living, as well as specialized behavioral health programs delivered through both clinical and non-clinical channels.

Through its network of subsidiary brands, BrightSpring offers integrated care in the patient’s home environment, fostering independence and improving quality of life.