10-Q · April 30, 2026
Option Care Health reported Q1 2026 results with net revenue of $1.35 billion, slightly missing estimates by 0.3%, and an EPS of $0.40, exceeding expectations. The firm's revenue growth was driven by a high single-digit…
Earnings analysis · 10-Q
OPCH earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
Option Care Health delivered 1.9% year-over-year Q2 revenue growth to $1.442 billion and increased operating income to $85.1 million, with GAAP diluted EPS of $0.35. However, gross margin fell 50 basis points to 18.5%…
Read full summary
Option Care Health delivered 1.9% year-over-year Q2 revenue growth to $1.442 billion and increased operating income to $85.1 million, with GAAP diluted EPS of $0.35. However, gross margin fell 50 basis points to 18.5% and management continues to expect approximately $55 million of 2026 gross-profit pressure from CID dynamics. Cash conversion improved sharply, with six-month operating cash flow of $171.5 million, while the company retained $193.8 million of cash and $846.0 million of revolver capacity.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.35
What stood out
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Revenue grew and EPS improved sequentially
Q2 revenue increased $26.3 million, or 1.9% year over year, to $1.4424 billion. Revenue also rose from $1.35 billion in Q1 2026, while reported diluted EPS improved from $0.29 sequentially to $0.35.
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Cost discipline supported operating leverage
Operating income rose $2.4 million to $85.1 million, and operating margin expanded 10 basis points year over year to 5.9%, as SG&A declined $5.4 million, or 3.2%, to $164.7 million.
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Operating cash flow strengthened materially
Six-month operating cash flow more than doubled to $171.5 million from $83.1 million, principally due to lower inventory levels and working-capital optimization initiatives.
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Liquidity supports operations and M&A
Liquidity remained substantial, with $193.8 million of cash and cash equivalents and $846.0 million of net revolver availability at June 30, 2026.
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Material capital return capacity remains
The company repurchased 7.35 million shares in May at an average price of $20.41, leaving $525.0 million authorized under the repurchase program.
What to watch
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Mix pressure reduced gross margin
Gross profit fell $1.8 million year over year to $267.3 million despite a $26.3 million revenue increase, and gross margin contracted 50 basis points to 18.5% due to therapy-mix pressure.
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CID headwind remains substantial
Management expects chronic inflammatory disease portfolio dynamics—including patient attrition and unfavorable therapy mix—to negatively affect 2026 gross profit by approximately $55 million.
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Buybacks reduced cash balance
Cash and cash equivalents declined $38.9 million during the first six months of 2026 to $193.8 million, while financing outflows included $167.5 million of share repurchases.
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Debt carries meaningful interest obligation
The company estimates interest payments of $295.5 million through the final maturities of its credit facilities, based on rates as of June 30, 2026.
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No new risk-factor disclosures
No material changes to previously disclosed risk factors were reported in this 10-Q; Item 1A explicitly states there were no material changes from the 2025 Form 10-K.
Management's outlook
The 10-Q MD&A does not provide quantitative revenue or EPS guidance. Management states it expects CID-related dynamics to reduce 2026 gross profit by approximately $55 million; quantitative full-year guidance was addressed separately in the earnings release.
Earlier filings 4
10-K · February 24, 2026
Option Care Health describes itself as the largest independent home and alternate-site infusion provider with a national network (196 locations in 43 states) and a multidisciplinary clinical team of ~5,000. Revenue…
10-Q · April 29, 2025
Option Care Health reported Q1 2025 net revenue of $1,332,972,000 (up $186,920,000 or 16.3% vs Q1 2024) with gross profit of $263,052,000 and net income of $46,742,000. Margins show slight compression (gross margin…
10-Q · July 31, 2024
Option Care Health reported Q2 net revenue of $1,227,186,000 (three months ended June 30, 2024), up versus $1,069,072,000 in the prior-year quarter and modestly above the prior quarter (implied Q1 revenue…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.