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1. Company Snapshot

1.a. Company Description

Option Care Health, Inc.offers home and alternate site infusion services in the United States.The company provides anti-infective therapies; home infusion services to treat heart failures; home parenteral nutrition and enteral nutrition support services for numerous acute and chronic conditions, such as stroke, cancer, and gastrointestinal diseases; immunoglobulin infusion therapies for the treatment of immune deficiencies; and treatments for chronic inflammatory disorders, including Crohn's disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, ulcerative colitis, and other chronic inflammatory disorders.


It also offers treatments to manage the progression of neurological disorders, such as amyotrophic lateral sclerosis and duchenne muscular dystrophy; infusion therapies for bleeding disorders; therapies that women need to survive and thrive through high-risk pregnancies; and other infusion therapies to treat various conditions, including pain management, chemotherapy, and respiratory medications, as well as nursing services.Option Care Health, Inc.is headquartered in Bannockburn, Illinois.

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1.b. Last Insights on OPCH

Option Care Health's recent performance was positively driven by its Q4 2025 earnings release, which matched estimates with $0.46 per share, a year-over-year increase from $0.35 per share. The company's revenue reached $1.4633 billion, aligning with growth expectations. A Morgan Stanley upgrade to an overweight rating and a raised price target from $35.00 to $38.00 also boosted investor confidence. Additionally, Castleark Management LLC increased its holdings in the company by 146.6%, indicating institutional support.

1.c. Company Highlights

2. Strong Execution, Confident Guidance

The company's 2025 results demonstrated a strong execution of its strategy, with net revenue reaching $5.6 billion, up 13% over the prior year, driven by balanced growth across acute and chronic therapies. Gross profit dollars grew 7.4%, and SG&A percent of sales declined 50 basis points versus last year to 12.1%. Adjusted diluted EPS was $1.72, growing 9% over the prior year, slightly below analysts' estimates of $1.73 is not available but actual EPS came out at '0.37' relative to estimates at '0.46' for the quarter. Adjusted EBITDA of $471 million increased 6% over prior year, and EBITDA margin was 8.3%.

Publication Date: Feb -25

📋 Highlights
  • Revenue Growth: Net revenue reached $5.6 billion in 2025, reflecting 13% YoY growth driven by balanced expansion in acute and chronic therapies.
  • Profitability: Adjusted EBITDA rose to $471 million (6% YoY), with an 8.3% margin, while adjusted diluted EPS grew 9% to $1.72.
  • Cash Flow Strength: Generated $258 million in operating cash flow in 2025, maintaining a net debt leverage ratio of 2.0x, and guiding 2026 cash flow >$340 million (+30% growth).
  • 2026 Outlook: Revenue guidance of $5.8–$6 billion (4% growth midpoint), with EBITDA of $480–$505 million, despite 400 bps headwind from Stelara IRA and biosimilars.
  • Strategic M&A: Acquired Intramed Plus, exceeding initial expectations, and prioritizing disciplined, financially accretive acquisitions to drive growth.

Operational Highlights

The company's unique position as the nation's largest independent provider of home and alternate site infusion therapy enabled it to deliver consistent clinical outcomes and same-day service for large health systems and national payers. The company's comprehensive clinical competencies, including one of the nation's largest network of infusion nurses, broad market access, national scale, and local pharmacy resources, position it as a partner of choice to help new-to-market products reach their targeted patient cohorts.

Guidance and Outlook

The company expects full-year 2026 revenue of $5.8 billion to $6 billion, reflecting a 4% growth at the midpoint, and adjusted EBITDA of $480 million to $505 million. The company is confident in its plan, citing its strong execution and ability to navigate the challenges of payers and hospital systems. As Meenal Sethna mentioned, "If you exclude the Stelara headwind, our EBITDA growth rate would be in the double digits."

Valuation

Using the current valuation metrics, the company's P/E Ratio is 25.76, indicating that the stock may be slightly overvalued. However, the P/S Ratio is 0.97, which is relatively reasonable. The EV/EBITDA ratio is 11.5, which is also reasonable. The company's ROE is 15.39%, indicating a strong return on equity. Analysts estimate next year's revenue growth at 8.6%, which is slightly higher than the company's guidance.

Cash Flow and Capital Allocation

The company generated $258 million in cash flow from operations for the full year 2025 and finished the year at a net debt to leverage ratio of 2.0x. The company is setting its 2026 operating cash flow guidance to be greater than $340 million, reflecting a 30-plus percent growth in cash generation versus last year. The company remains committed to returning value to shareholders and is evaluating various opportunities for acquisitions and share repurchases.

3. NewsRoom

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Option Care Health, Inc. (OPCH) Q4 2025 Earnings Call Transcript

Feb -24

Source: seekingalpha.com

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Option Care (OPCH) Matches Q4 Earnings Estimates

Feb -24

Source: zacks.com

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Option Care Health Announces Financial Results for Fourth Quarter and Full Year 2025

Feb -24

Source: globenewswire.com

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Option Care Health (OPCH) Projected to Post Earnings on Tuesday

Feb -17

Source: defenseworld.net

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Xcelerate (OTCMKTS:XCRT) and Option Care Health (NASDAQ:OPCH) Head to Head Review

Feb -17

Source: defenseworld.net

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Reviewing Bioqual (OTCMKTS:BIOQ) and Option Care Health (NASDAQ:OPCH)

Feb -07

Source: defenseworld.net

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Profit Therapy: 3 Medical Stocks Ready to Deliver Q4 Beat

Feb -06

Source: zacks.com

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Option Care Health to Participate in the TD Cowen Healthcare Conference

Jan -29

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.00%)

6. Segments

Infusion Services

Expected Growth: 8%

Option Care Health's Infusion Services growth is driven by increasing demand for home-based care, expansion into new markets, and strategic partnerships. Additionally, the company's investment in technology and clinical expertise has improved patient outcomes, leading to higher patient retention and referrals. Furthermore, the growing need for cost-effective healthcare solutions and the shift towards value-based care are also contributing to the segment's 8% growth.

7. Detailed Products

Infusion Therapy

Option Care Health provides infusion therapy services for patients with acute and chronic conditions, including antibiotics, pain management, and nutrition support.

Home Infusion Pharmacy

Option Care Health offers a comprehensive home infusion pharmacy service, providing medications and supplies for patients with complex conditions.

Nurse Advocacy

Option Care Health provides nurse advocacy services, supporting patients and caregivers with education, guidance, and coordination of care.

Disease Management

Option Care Health offers disease management programs for patients with chronic conditions, including diabetes, heart failure, and chronic obstructive pulmonary disease (COPD).

Nutrition Support

Option Care Health provides nutrition support services, including total parenteral nutrition (TPN) and enteral nutrition, for patients with complex nutritional needs.

Wound Care

Option Care Health offers wound care services, including negative pressure wound therapy and debridement, for patients with complex wounds.

8. Option Care Health, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Option Care Health, Inc. faces moderate threat from substitutes due to the presence of alternative healthcare providers and home infusion therapy services.

Bargaining Power Of Customers

Customers have limited bargaining power due to the specialized nature of Option Care Health, Inc.'s services and the lack of alternative providers.

Bargaining Power Of Suppliers

Suppliers of medical equipment and pharmaceuticals have moderate bargaining power due to the presence of multiple suppliers and the company's dependence on these suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including regulatory hurdles and the need for specialized expertise and equipment.

Intensity Of Rivalry

The home infusion therapy industry is highly competitive, with multiple players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.19%
Debt Cost 7.17%
Equity Weight 56.81%
Equity Cost 10.54%
WACC 9.08%
Leverage 76.03%

11. Quality Control: Option Care Health, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Amedisys

A-Score: 5.6/10

Value: 4.4

Growth: 4.6

Quality: 6.9

Yield: 0.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Ensign Group

A-Score: 5.5/10

Value: 2.6

Growth: 7.4

Quality: 4.7

Yield: 0.0

Momentum: 9.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Option Care Health

A-Score: 5.4/10

Value: 4.0

Growth: 7.2

Quality: 6.8

Yield: 0.0

Momentum: 8.0

Volatility: 6.7

1-Year Total Return ->

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Chemed

A-Score: 4.5/10

Value: 3.5

Growth: 6.0

Quality: 7.3

Yield: 0.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

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Select Medical

A-Score: 4.4/10

Value: 7.7

Growth: 4.3

Quality: 4.0

Yield: 4.0

Momentum: 1.0

Volatility: 5.3

1-Year Total Return ->

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Acadia Healthcare

A-Score: 3.3/10

Value: 7.3

Growth: 4.1

Quality: 4.8

Yield: 0.0

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

31.2$

Current Price

31.2$

Potential

-0.00%

Expected Cash-Flows