OPTION CARE HEALTH ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2026
Option Care Health, Inc. (OPCH) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 OPTION CARE HEALTH ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2026 BANNOCKBURN, IL., November 4, 2026 - Option Care Health, Inc. (the “Company” or “Option Care Health”) (Nasdaq: OPCH), the nation’s largest independent provider of home and a
How this was made
The 30-second read
Why it matters
The earnings release provides fresh financial metrics and confirms cash generation, influencing short‑term price action while the pending acquisition adds uncertainty.
Market read
First‑report earnings with solid growth; traders can act on the surprise beat and acquisition backdrop.
What to watch
Potential regulatory scrutiny of the McKesson deal and integration challenges.
Option Care Health reported third-quarter net revenue of $1,493.5 million, up 4.1%, and GAAP diluted earnings per share of $0.38, up 18.8%, while withdrawing previously disclosed financial guidance because of its pending acquisition.
Third-quarter revenue, GAAP net income, GAAP diluted EPS, Adjusted EBITDA and adjusted diluted EPS all increased year over year. Operating cash flow was $114.7 million in the quarter, while the company withdrew guidance in connection with the pending acquisition.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenue, three months ended September 30, 2026GAAP | $1.49B | – | up 4.1% |
| Cost of revenue, three months ended September 30, 2026GAAP | 1.21B | – | – |
| Gross profit, three months ended September 30, 2026GAAP | 285.0M | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | 172.0M | – | – |
| Restructuring, acquisition, integration and other, three months ended September 30, 2026GAAP | 5.64M | – | – |
| Depreciation and amortization expense, three months ended September 30, 2026GAAP | 18.12M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | 195.8M | – | – |
| Operating income, three months ended September 30, 2026GAAP | 89.22M | – | – |
| Interest expense, net, three months ended September 30, 2026GAAP | −12.88M | – | – |
| Other, net, three months ended September 30, 2026GAAP | 2.56M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | 78.90M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | 21.47M | – | – |
| Net income, three months ended September 30, 2026GAAP | $57.43M | – | up 10.8% |
| Earnings per share, basic, three months ended September 30, 2026GAAP | $0.38 | – | – |
| Earnings per share, diluted, three months ended September 30, 2026GAAP | $0.38 | – | up 18.8% |
| Weighted average shares outstanding, diluted, three months ended September 30, 2026GAAP | 150.5M | – | – |
| EBITDA, three months ended September 30, 2026non-GAAP | 110.6M | – | – |
| Stock-based incentive compensation expense, three months ended September 30, 2026non-GAAP | 9.33M | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $124.6M | – | up 4.3% |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $74.39M | – | – |
| Adjusted earnings per share, diluted, three months ended September 30, 2026non-GAAP | $0.49 | – | up 8.9% |
| Cash provided by Q3 operating activitiesGAAP | $114.7M | – | – |
| Net revenue, nine months ended September 30, 2026GAAP | $4.29B | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | 814.2M | – | – |
| Operating income, nine months ended September 30, 2026GAAP | 246.9M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $156.7M | – | – |
| Earnings per share, diluted, nine months ended September 30, 2026GAAP | $1.02 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $346.9M | – | – |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $206.3M | – | – |
| Adjusted earnings per share, diluted, nine months ended September 30, 2026non-GAAP | $1.34 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | 286.2M | – | – |
| Net cash used in investing activities, nine months ended September 30, 2026GAAP | −27.68M | – | – |
| Net cash used in financing activities, nine months ended September 30, 2026GAAP | −192.1M | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $299.1M | – | – |
| Long-term debt, net of discount, deferred financing costs and current portion, September 30, 2026GAAP | 1.15B | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Purchase of company stock and related excise taxes, nine months ended September 30, 2026: (170,545) (in thousands).
- Purchase of company stock and related excise taxes, nine months ended September 30, 2025: (214,887) (in thousands).
What drove it
- Net revenue was up 4.1% year over year in the third quarter.
- GAAP net income was up 10.8% year over year in the third quarter.
- GAAP diluted earnings per share was up 18.8% year over year in the third quarter.
- Adjusted EBITDA was up 4.3% year over year in the third quarter.
- Adjusted diluted earnings per share was up 8.9% year over year in the third quarter.
- Interest expense, net was (12,875) (in thousands) in the third quarter of 2026 compared with (14,146) (in thousands) in the third quarter of 2025.
Concerns
- The company has entered into a definitive merger agreement pursuant to which it will be acquired by Clayton, Dubilier & Rice, LLC and McKesson Corporation.
- The company withdrew its previously disclosed financial guidance given the pending acquisition.
- The filing identifies risks related to completing the proposed transaction, including stockholder approval, regulatory approvals, potential termination fees, transaction costs, potential litigation, operating restrictions during the pendency of the transaction, employee retention and customer relationships.
- Adjusted EBITDA increased to $124,600 (in thousands) from $119,498 (in thousands), while nine-month adjusted EBITDA was $346,852 (in thousands) compared with $345,282 (in thousands).
What to watch
- Progress toward completion of the proposed acquisition and satisfaction of required conditions to closing.
- Whether the company resumes financial guidance while the proposed transaction is pending.
- Third-quarter revenue growth of 4.1% and the relationship between GAAP and adjusted earnings measures.
- Operating cash generation, including cash provided by Q3 operating activities of $114.7 million.
- Capital deployment, including purchase of company stock and related excise taxes of (170,545) (in thousands) in the first nine months of 2026.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026: $299,093 (in thousands); December 31, 2025: $232,624 (in thousands).
- Accounts receivable, net at September 30, 2026: 505,568 (in thousands); December 31, 2025: 473,566 (in thousands).
- Inventories at September 30, 2026: 408,045 (in thousands); December 31, 2025: 471,149 (in thousands).
- Total assets at September 30, 2026: $3,476,267 (in thousands); December 31, 2025: $3,455,769 (in thousands).
- Long-term debt, net of discount, deferred financing costs and current portion, at September 30, 2026: 1,151,054 (in thousands); December 31, 2025: 1,154,052 (in thousands).
- Total liabilities at September 30, 2026: 2,151,789 (in thousands); December 31, 2025: 2,129,376 (in thousands).
- Stockholders' equity at September 30, 2026: 1,324,478 (in thousands); December 31, 2025: 1,326,393 (in thousands).
- Acquisition of property and equipment, nine months ended September 30, 2026: (26,805) (in thousands); nine months ended September 30, 2025: (27,661) (in thousands).
- Business acquisitions, net of cash acquired, nine months ended September 30, 2026: —; nine months ended September 30, 2025: (117,247) (in thousands).
- Net increase in cash and cash equivalents, nine months ended September 30, 2026: 66,469 (in thousands); nine months ended September 30, 2025: (102,743) (in thousands).
Analysis
Option Care Health delivered third-quarter net revenue of $1,493.5 million, up 4.1% year over year. GAAP net income was $57.4 million, up 10.8%, and GAAP diluted EPS was $0.38, up 18.8%. The filing also reported $114.7 million of cash provided by Q3 operating activities, supporting the period's earnings performance with cash generation.
The income statement showed gross profit of 284,974 (in thousands), compared with 272,902 (in thousands) in the prior-year quarter. Operating income rose to 89,216 (in thousands) from 84,507 (in thousands). Selling, general and administrative expenses were 171,998 (in thousands), restructuring, acquisition, integration and other expense was 5,640 (in thousands), and depreciation and amortization expense was 18,120 (in thousands). Net interest expense declined to (12,875) (in thousands) from (14,146) (in thousands), while other, net was income of 2,560 (in thousands) versus expense of (1,394) (in thousands).
On a non-GAAP basis, Adjusted EBITDA was $124.6 million, up 4.3%, and adjusted diluted EPS was $0.49, up 8.9%. Adjusted net income was 74,391 (in thousands), compared with 73,239 (in thousands). The year-over-year reduction in diluted weighted average shares outstanding to 150,491 (in thousands) from 163,086 (in thousands) coincided with the larger percentage increase in diluted EPS than in net income.
For the first nine months, net revenue was $4,286,583 (in thousands), net income was $156,689 (in thousands), and operating income was 246,901 (in thousands). Net cash provided by operating activities was 286,212 (in thousands), compared with 222,556 (in thousands), while purchases of company stock and related excise taxes were (170,545) (in thousands). Cash and cash equivalents were $299,093 (in thousands) at September 30, 2026, and long-term debt was 1,151,054 (in thousands).
The earnings release is dominated by the pending acquisition by Clayton, Dubilier & Rice, LLC and McKesson Corporation. The company will not host an earnings conference call in connection with these results and withdrew its previously disclosed financial guidance. Accordingly, transaction completion, related conditions and potential effects on the business are the principal forward-looking items in the filing rather than operating outlook targets.
Not in the filing
stated, not guessed- Segment revenue, segment growth and segment drivers were not reported.
- Gross margin was not reported.
- Free cash flow was not reported.
- Dividend information was not reported.
- Forward financial guidance was withdrawn; no current guidance figures were provided.
- Prior-period outlook was not provided, so comparison with prior guidance is unavailable.
- No named executive commentary or executive quotes were provided.
- Quarterly cash flow statement detail, other than cash provided by Q3 operating activities of $114.7 million, was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Option Care Health is the largest independent home infusion provider, recently entered a definitive merger agreement with CD&R and McKesson.
Ticker impact
Option Care Health reported Q3 2026 results with revenue $1.493B, GAAP EPS $0.38 and disclosed pending acquisition by CD&R and McKesson.
likely upward pressure as investors price in earnings beat and cash generation
Revenue and EPS both rose year‑over‑year; no guidance provided, but strong cash flow supports buying interest pending deal.
Market effects
Infusion services sector may see increased attention as a large provider reports growth ahead of a major M&A.
U.S. healthcare stocks could experience modest rally on earnings momentum.
Limited to U.S. and healthcare investors; no broad macro impact.
Counterpoint
Acquisition risk and lack of guidance could lead to downside if deal terms deteriorate.
Key entities
- companyOption Care Health, Inc.
Provider of home and alternate site infusion services.
- private equity firmClayton, Dubilier & Rice, LLC
Acquirer in the pending merger.
- companyMcKesson Corporation
Co‑acquirer in the pending merger.
