Revenue growth reached 25.6% in 2026Q1, yet operating margins remain constrained, fluctuating between -0.7% and 4.0% over the last ten quarters due to high clinical overhead.
| Sales/Revenue | 13.65B | 12.91B | 11.27B | 8.83B | 7.72B | 6.7B | 5.58B | 4.53B |
| Revenue Growth % | 21.02% | 14.59% | 27.65% | 14.32% | 15.27% | 20.03% | 23.32% | - |
| Cost of Goods Sold | 11.98B | 11.39B | 9.68B | 7.39B | 6.37B | 5.45B | 4.53B | 3.69B |
| COGS % of Revenue | - | 88.24% | 85.9% | 83.76% | 82.46% | 81.36% | 81.21% | 81.57% |
| Gross Profit | 1.66B | 1.52B | 1.59B | 1.43B | 1.35B | 1.25B | 1.05B | 833.91M |
| Gross Margin % | 12.18% | 11.76% | 14.1% | 16.24% | 17.54% | 18.64% | 18.79% | 18.43% |
| Gross Profit Growth % | - | -4.45% | 10.79% | 5.87% | 8.49% | 19.02% | 25.76% | - |
| Operating Expenses | 1.21B | 1.11B | 1.38B | 1.29B | 1.17B | 1.01B | 883.55M | 770.59M |
| OpEx % of Revenue | - | 8.6% | 12.27% | 14.58% | 15.11% | 15.14% | 15.83% | 17.03% |
| Selling, General & Admin | 1.21B | 1.11B | 1.38B | 1.29B | 1.13B | 1.01B | 883.55M | 770.59M |
| SG&A % of Revenue | - | 8.6% | 12.27% | 14.58% | 14.58% | 15.14% | 15.83% | 17.03% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 40.86M | 0 | 0 | 0 |
| Operating Income | 449.95M | 408.06M | 206.37M | 147.18M | 187.83M | 234.18M | 165.19M | 63.31M |
| Operating Margin % | 3.3% | 3.16% | 1.83% | 1.67% | 2.43% | 3.5% | 2.96% | 1.4% |
| Operating Income Growth % | - | 97.73% | 40.22% | -21.64% | -19.79% | 41.77% | 160.91% | - |
| EBITDA | 572.07M | 572.34M | 410.86M | 349.52M | 391.8M | 433.34M | 346.69M | 218.18M |
| EBITDA Margin % | 4.19% | 4.43% | 3.65% | 3.96% | 5.07% | 6.47% | 6.21% | 4.82% |
| EBITDA Growth % | 27.12% | 39.3% | 17.55% | -10.79% | -9.59% | 24.99% | 58.9% | - |
| D&A (Non-Cash Add-back) | 122.12M | 164.28M | 204.48M | 202.34M | 203.97M | 199.16M | 181.5M | 154.87M |
| EBIT | 328.5M | 408.06M | 193.65M | 147.18M | 187.83M | 234.18M | 165.19M | 63.31M |
| Net Interest Income | -115.55M | -157.31M | -228.39M | -324.59M | -233.58M | -165.32M | -138.95M | -166.89M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 154.16M | 157.31M | 228.39M | 324.59M | 233.58M | 165.32M | 138.95M | 166.89M |
| Other Income/Expense | -238.15M | -270.12M | -241.11M | -324.59M | -233.58M | -165.32M | -138.95M | -166.89M |
| Pretax Income | 211.8M | 137.94M | -34.74M | -177.41M | -45.75M | 68.86M | 26.24M | -103.58M |
| Pretax Margin % | 1.55% | 1.07% | -0.31% | -2.01% | -0.59% | 1.03% | 0.47% | -2.29% |
| Income Tax | 41.94M | 33.15M | -14.22M | -20.58M | 8.46M | 17.6M | 5.09M | -32.49M |
| Effective Tax Rate % | 19.8% | 24.03% | 40.93% | 11.6% | -18.5% | 25.56% | 19.39% | 31.37% |
| Net Income | 309.89M | 190.67M | -18.06M | -154.6M | -53.91M | 49.8M | 20.81M | -72.38M |
| Net Margin % | 2.27% | 1.48% | -0.16% | -1.75% | -0.7% | 0.74% | 0.37% | -1.6% |
| Net Income Growth % | 441.48% | 1155.62% | 88.32% | -186.8% | -208.25% | 139.3% | 128.75% | - |
| Net Income (Continuing) | 244.35M | 104.8M | -20.52M | -156.84M | -54.22M | 51.26M | 21.15M | -71.09M |
| Discontinued Operations | 3M | 84.32M | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 10.51M | 11.3M | 3.73M | 27.81M | 29.31M | 25.65M | 30.39M | 53.36M |
| EPS (Diluted) | 1.40 | 0.87 | -0.09 | -0.90 | -0.31 | 0.29 | 0.12 | -0.42 |
| EPS Growth % | 287.79% | 1029.49% | 89.6% | -190.32% | -206.9% | 141.67% | 128.57% | - |
| EPS (Basic) | - | 0.94 | -0.09 | -0.90 | -0.31 | 0.29 | 0.12 | -0.42 |
| Diluted Shares Outstanding | 221.32M | 219.77M | 193M | 171.19M | 171.19M | 171.19M | 171.19M | 171.19M |
| Basic Shares Outstanding | 204.71M | 202.56M | 193M | 171.19M | 171.19M | 171.19M | 171.19M | 171.19M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Clinical labor wage inflation
According to the latest quarterly filings, BrightSpring Health Services achieved a 25.6% year-over-year revenue growth in 2026Q1, signaling that the company's aggressive consolidation strategy is successfully driving top-line expansion despite the inherent complexities of integrating large-scale pharmacy and clinical provider networks across diverse U.S. markets.
The acceleration in revenue growth suggests that the company is effectively capturing market share, likely benefiting from the integration of smaller, fragmented providers. However, investors should monitor whether this growth is sustainable or if it remains heavily dependent on continued acquisition activity to offset potential organic stagnation.
As reported in recent financial statements, the company maintains a thin gross margin of 11.76%, reflecting the high-volume, low-margin nature of its pharmaceutical distribution and labor-intensive clinical services, which leaves minimal room for error when managing inflationary pressures or shifts in government-mandated reimbursement rates for Medicare patients.
The narrow margin profile indicates that the business lacks significant pricing power, as it operates within a highly regulated environment where reimbursement is largely fixed. Any volatility in pharmaceutical costs or clinical labor expenses could disproportionately impact the bottom line, given the limited buffer currently available.
Based on the provided income statement data, operating income has struggled to scale proportionally with revenue, as evidenced by an operating margin that has fluctuated between -0.7% and 4.0% over the last ten quarters, suggesting that administrative and clinical overhead remains a significant drag on profitability.
The inability to consistently expand operating margins despite strong revenue growth implies that the company has not yet achieved the necessary operational efficiencies from its integrated model. This warrants further investigation into whether the current SG&A structure is bloated or if the cost of maintaining the 'closed-loop' platform is higher than anticipated.
Analysis of the reported figures reveals significant quarterly fluctuations in net income, ranging from a $45.8 million loss in 2024Q1 to a $148.8 million profit in 2026Q1, which appears heavily influenced by non-operating items and the timing of stock-based compensation expenses totaling $3.7 million in the most recent quarter.
The inconsistency in net income suggests that GAAP earnings may not be the most reliable indicator of the company's underlying cash-generative potential. Investors should look past these headline figures to evaluate whether the recent profit surge is driven by sustainable operational improvements or temporary accounting adjustments.
While top-line growth is robust, the company's reliance on Medicaid and Medicare reimbursement, combined with a high variable cost structure, creates a precarious environment where even minor wage inflation could lead to rapid margin compression, as seen in the historical volatility of the operating income line.
Short-sellers may focus on the company's inability to maintain consistent profitability, arguing that the 'closed-loop' model is more capital-intensive than the market currently appreciates. The risk of retroactive revenue adjustments and the potential for rising labor costs suggest that the current valuation may be overly optimistic.
Quick answers to the most common questions about buying BTSG stock.
For fiscal year 2025, BrightSpring Health Services, Inc. Common Stock (BTSG) reported total revenue of $12.91B. This represents a 185.3% increase compared to $4.53B in 2019.
BrightSpring Health Services, Inc. Common Stock (BTSG) is profitable, generating $190.7M in net income for the fiscal year ending 2025 with a net profit margin of 1.5%.
BrightSpring Health Services, Inc. Common Stock (BTSG) reported an operating income of $408.1M, resulting in an operating profit margin of 3.2%. This margin reflects the operational efficiency of the business before interest and taxes.
BrightSpring Health Services, Inc. Common Stock (BTSG) generated $1.52B in gross profit for the year, representing a gross profit margin of 11.8%. This demonstrates the company's core pricing power and production efficiency.