BrightSpring Health Services (NASDAQ:BTSG) Issues Earnings Results, Misses Expectations By $0.01 EPS

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

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 Up 3.2%

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

Analyst Ratings Changes

BTSG has been the subject of several recent analyst reports. Wall Street Zen cut shares of BrightSpring Health Services from a “strong-buy” rating to a “buy” rating in a research note on Saturday, November 15th. BTIG Research increased their target price on BrightSpring Health Services from $50.00 to $55.00 and gave the stock a “buy” rating in a research report on Monday, February 2nd. TD Cowen restated a “buy” rating on shares of BrightSpring Health Services in a report on Tuesday, January 27th. Mizuho set a $45.00 price objective on shares of BrightSpring Health Services in a report on Friday, January 9th. Finally, Zacks Research lowered BrightSpring Health Services from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 6th. One equities research 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 stock. According to MarketBeat, BrightSpring Health Services currently has an average rating of “Moderate Buy” and a consensus target price of $41.33.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of BTSG. Cibc World Markets Corp acquired a new position in BrightSpring Health Services during the 4th quarter valued at approximately $276,000. Vise Technologies Inc. bought a new position in shares of BrightSpring Health Services during the third quarter worth about $273,000. Blair William & Co. IL acquired a new stake in shares of BrightSpring Health Services in the 4th quarter worth about $262,000. Jump Financial LLC acquired a new stake in shares of BrightSpring Health Services in the 2nd quarter worth about $257,000. Finally, Mackenzie Financial Corp acquired a new position in BrightSpring Health Services during the 4th quarter valued at about $252,000.

BrightSpring Health Services Company Profile

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.