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BrightSpring Health Services, Inc.
(NASDAQ:BTSG)
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Rating:64Neutral
Price Target:
$60.00
▲(4.84% Upside)
Action:Reiterated
Date:08/04/26
The score reflects solid improving fundamentals and a constructive earnings outlook (profitability recovery, strong guidance, and leverage improvement), tempered by weak price momentum and a high P/E valuation. Corporate developments are modestly supportive but secondary.
Positive Factors
Growth Outlook
The reiterated outlook indicates broad-based growth across Pharmacy Solutions and Provider Services, with adjusted EBITDA expected to grow faster than revenue. If achieved, this trajectory would expand earnings capacity and provide resources for continued investment, integration, and debt reduction.
Negative Factors
Thin and Declining Margins
Profitability has recovered, but the low EBITDA margin leaves limited room for execution errors or reimbursement pressure. The longer-term gross-margin decline also signals persistent cost intensity, which could constrain earnings conversion even as revenue continues to expand.
Read all positive and negative factors
Positive Factors
Negative Factors
Growth Outlook
The reiterated outlook indicates broad-based growth across Pharmacy Solutions and Provider Services, with adjusted EBITDA expected to grow faster than revenue. If achieved, this trajectory would expand earnings capacity and provide resources for continued investment, integration, and debt reduction.
Read all positive factors
BrightSpring Health Services, Inc. (BTSG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.40B
Dividend YieldN/A
Average Volume (3M)2.41M
Price to Earnings (P/E)44.3
Beta (1Y)1.16
Revenue Growth19.91%
EPS Growth350.11%
CountryUS
Employees23,500
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)1.43
Shares Outstanding197,864,240
10 Day Avg. Volume2,358,660
30 Day Avg. Volume2,410,491
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)4.05
Price to Sales (P/S)0.59
P/FCF Ratio19.22
Enterprise Value/Market Cap1.39
Enterprise Value/Revenue1.20
Enterprise Value/Gross Profit9.67
Enterprise Value/Ebitda26.94
Forecast
1Y Price Target
$80.54Price Target Upside40.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)1.82
Revenue Forecast (FY)$15.34B
BrightSpring Health Services, Inc. Business Overview & Revenue Model
Company Description
BrightSpring Health Services, Inc. operates across the United States, offering a range of healthcare solutions directly within patients' homes and local communities. The company's extensive platform focuses on providing crucial pharmacy and medica...
How the Company Makes Money
BrightSpring primarily makes money by providing healthcare services and pharmacy services that are reimbursed by government programs and other payors. Its revenue model is largely fee-for-service (and, where applicable, contracted reimbursement) a...
BrightSpring Health Services, Inc. Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Positive
The call communicated broad-based, above-expectation operational and financial execution: strong top-line growth (23% YoY), robust adjusted EBITDA growth (44% YoY), margin expansion, quality and patient satisfaction leadership, balance sheet progress and constructive guidance. Notable headwinds were clearly disclosed—primarily IRA-driven revenue impacts to Home & Community Pharmacy, a one-time tax cash outflow that depressed reported OCF in the quarter, some sequential margin seasonality, and an earlier-stage chronic infusion ramp. On balance the positive growth, margin improvement, quality metrics, cash generation guidance and credit upgrades outweigh the disclosed challenges.Positive Updates
Strong Company Revenue and EBITDA Growth
Total company revenue of $3.9 billion in Q2 2026, up 23% year-over-year; adjusted EBITDA of $206 million, up 44% year-over-year; adjusted EBITDA margin of 5.3%, an improvement of ~80 basis points versus prior year.
Negative Updates
IRA-Related Revenue Headwinds to Home & Community Pharmacy
Home & Community Pharmacy revenue declined to $540 million, down 8% year-over-year; management attributes approximately $200 million of full-year revenue impact in Home & Community Pharmacy from IRA-driven pricing changes (roughly $45M per remaining quarter) with an estimated ~$15 million EBITDA impact for Home & Community.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Company Revenue and EBITDA Growth
Total company revenue of $3.9 billion in Q2 2026, up 23% year-over-year; adjusted EBITDA of $206 million, up 44% year-over-year; adjusted EBITDA margin of 5.3%, an improvement of ~80 basis points versus prior year.
Read all positive updates
Company Guidance
BrightSpring reiterated 2026 guidance (excluding the divested Community Living business and any not-yet-closed acquisitions): total revenue $15.1B–$15.425B (≈17.0%–19.5% growth vs. FY25 excl. Community Living), with Pharmacy Solutions revenue of $13.2B–$13.5B and Provider Services revenue of $1.9B–$1.925B; total adjusted EBITDA of $820M–$845M (≈32.8%–36.8% growth vs. FY25 excl. Community Living) that includes roughly $35M of EBITDA contribution from the Amedisys/LHC assets. The company expects about $600M of operating cash flow for 2026 with ~70% EBITDA-to-operating-cash conversion and to end the year with leverage below 2.0x (net debt was ~ $1.7B and leverage 2.15x as of June 30); management also said Q3 and Q4 should show continued, similar quarter‑over‑quarter growth.BrightSpring Health Services, Inc. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
70
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.37B | 12.91B | 11.27B | 8.83B | 7.72B | 6.70B |
| Gross Profit | 1.78B | 1.52B | 1.59B | 1.43B | 1.35B | 1.25B |
| EBITDA | 638.89M | 459.53M | 398.13M | 349.52M | 391.80M | 433.34M |
| Net Income | 294.04M | 190.67M | -18.06M | -154.60M | -53.91M | 49.80M |
Balance Sheet | ||||||
| Total Assets | 5.99B | 6.41B | 5.93B | 5.53B | 5.44B | 5.51B |
| Cash, Cash Equivalents and Short-Term Investments | 550.38M | 88.37M | 61.25M | 13.07M | 13.63M | 46.73M |
| Total Debt | 2.39B | 2.71B | 2.90B | 3.67B | 3.68B | 3.77B |
| Total Liabilities | 3.93B | 4.53B | 4.27B | 4.92B | 4.66B | 4.71B |
| Stockholders Equity | 2.05B | 1.88B | 1.65B | 584.74M | 754.78M | 774.82M |
Cash Flow | ||||||
| Free Cash Flow | 402.35M | 394.69M | -57.14M | 137.26M | -74.77M | 210.90M |
| Operating Cash Flow | 506.35M | 490.17M | 23.77M | 210.78M | -4.65M | 270.17M |
| Investing Cash Flow | 461.55M | -305.08M | -140.24M | -134.43M | 45.36M | -1.19B |
| Financing Cash Flow | -487.75M | -157.87M | 164.65M | -76.91M | -73.81M | 705.22M |
BrightSpring Health Services, Inc. Technical Analysis
Positive
57.23
Price Trends
59.76
Positive
62.90
Negative
53.20
Positive
Market Momentum
1.04
Negative
59.18
Neutral
75.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTSG, the sentiment is Positive. The current price of 57.23 is below the 20-day moving average (MA) of 59.11, below the 50-day MA of 59.76, and above the 200-day MA of 53.20, indicating a bullish trend. The MACD of 1.04 indicates Negative momentum. The RSI at 59.18 is Neutral, neither overbought nor oversold. The STOCH value of 75.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BTSG.
BrightSpring Health Services, Inc. Risk Analysis
BrightSpring Health Services, Inc. disclosed 56 risk factors in its most recent earnings report. BrightSpring Health Services, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BrightSpring Health Services, Inc. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $8.48B | 77.97 | 30.25% | ― | 49.76% | ― | |
68 Neutral | $1.12B | 268.34 | 1.84% | ― | 47.63% | ― | |
64 Neutral | $12.40B | 44.30 | 15.23% | ― | 19.91% | 350.11% | |
56 Neutral | $2.77B | 96.35 | 0.01% | ― | 24.10% | 84.08% | |
52 Neutral | $520.07M | -1.05 | -99.16% | ― | -4.50% | -184.71% | |
52 Neutral | $1.09B | -5.87 | -13.08% | ― | -2.08% | 16.88% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.