Unless the context requires otherwise, references in this Quarterly Report on Form 10-Q (this “Form 10-Q”) to “Option Care Health,” the “Company,” “we,” “us” and “our” refer to Option Care Health, Inc. and its consolidated subsidiaries.
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements
CONDENSED CONSOLIDATED BALANCE SHEETS
IN THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS
| Line item | September 30, 2025 | December 31, 2024 |
|---|---|---|
| (unaudited) | ||
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | ||
| Accounts receivable, net | ||
| Inventories | ||
| Prepaid expenses and other current assets | ||
| Total current assets | ||
| NONCURRENT ASSETS: | ||
| Property and equipment, net | ||
| Operating lease right-of-use asset | ||
| Intangible assets, net | ||
| Referral sources, net | ||
| Goodwill | ||
| Other noncurrent assets | ||
| Total noncurrent assets | ||
| TOTAL ASSETS | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | ||
| Accrued compensation and employee benefits | ||
| Accrued expenses and other current liabilities | ||
| Current portion of operating lease liability | ||
| Current portion of long-term debt | ||
| Total current liabilities | ||
| NONCURRENT LIABILITIES: | ||
| Long-term debt, net of discount, deferred financing costs and current portion | ||
| Operating lease liability, net of current portion | ||
| Deferred income taxes | ||
| Other noncurrent liabilities | ||
| Total noncurrent liabilities | ||
| Total liabilities | ||
| STOCKHOLDERS’ EQUITY: | ||
| Preferred stock; par value; shares authorized, shares outstanding as of September 30, 2025 and December 31, 2024 | ||
| Common stock; par value: shares authorized, shares issued and shares outstanding as of September 30, 2025; shares issued and shares outstanding as of December 31, 2024 | ||
| Treasury stock; and shares outstanding, at cost, as of September 30, 2025 and December 31, 2024, respectively | () | () |
| Paid-in capital | ||
| Retained earnings | ||
| Accumulated other comprehensive income | ||
| Total stockholders’ equity | ||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these statements.
OPTION CARE HEALTH, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
| Line item | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| NET REVENUE | ||||
| COST OF REVENUE | ||||
| GROSS PROFIT | ||||
| OPERATING COSTS AND EXPENSES: | ||||
| Selling, general and administrative expenses | ||||
| Depreciation and amortization expense | ||||
| Total operating expenses | ||||
| OPERATING INCOME | ||||
| OTHER INCOME (EXPENSE): | ||||
| Interest expense, net | () | () | () | () |
| Equity in earnings of joint ventures | ||||
| Other, net | () | () | () | |
| Total other (expense) income | () | () | () | () |
| INCOME BEFORE INCOME TAXES | ||||
| INCOME TAX EXPENSE | ||||
| NET INCOME | ||||
| OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||||
| Change in unrealized (loss) gain on cash flow hedges, net of income tax benefit of , , and , respectively | $() | $() | $() | $() |
| OTHER COMPREHENSIVE (LOSS) INCOME | () | () | () | () |
| NET COMPREHENSIVE INCOME | ||||
| EARNINGS PER COMMON SHARE: | ||||
| Earnings per share, basic | ||||
| Earnings per share, diluted | ||||
| Weighted average common shares outstanding, basic | ||||
| Weighted average common shares outstanding, diluted |
The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these statements.
OPTION CARE HEALTH, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
| Line item | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net income | ||
| Adjustments to reconcile net income to net cash provided by operations: | ||
| Depreciation and amortization expense | ||
| Non-cash operating lease costs | ||
| Deferred income taxes - net | ||
| Loss on extinguishment of debt | ||
| Amortization of deferred financing costs | ||
| Equity in earnings of joint ventures | () | () |
| Stock-based incentive compensation expense | ||
| Distribution from equity method investments | ||
| Other adjustments | () | () |
| Changes in operating assets and liabilities: | ||
| Accounts receivable, net | () | () |
| Inventories | () | () |
| Prepaid expenses and other current assets | () | |
| Accounts payable | ||
| Accrued compensation and employee benefits | () | |
| Accrued expenses and other current liabilities | ||
| Operating lease liabilities | () | () |
| Other noncurrent assets and liabilities | ||
| Net cash provided by operating activities | ||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Acquisition of property and equipment | () | () |
| Business acquisitions, net of cash acquired | () | |
| Other investing activities | () | |
| Net cash used in investing activities | () | () |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Stock-based compensation tax withholdings | () | () |
| Purchase of company stock and related excise taxes | () | () |
| Repayments of debt principal | () | () |
| Proceeds from issuance of debt | ||
| Retirement of debt obligations | () | |
| Deferred financing costs | () | () |
| Other financing activities | ||
| Net cash used in financing activities | () | () |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | () | |
| Cash and cash equivalents - beginning of the period | ||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | ||
| Supplemental disclosure of cash flow information: | ||
| Cash paid for interest | ||
| Cash paid for income taxes | ||
| Cash paid for operating leases |
The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these statements.
OPTION CARE HEALTH, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(IN THOUSANDS)
| Line item | Preferred Stock | Common Stock | Treasury Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity |
|---|---|---|---|---|---|---|---|
| Balance - December 31, 2023 | — | $18 | $(255,107) | $1,204,270 | $457,513 | $14,978 | |
| Exercise of stock options, vesting of restricted stock, and related tax withholdings | — | — | — | (8,182) | — | — | () |
| Stock-based incentive compensation | — | — | — | 9,605 | — | — | |
| Purchase of company stock and related tax effects | — | — | (40,289) | — | — | — | () |
| Net income | — | — | — | — | 44,791 | — | |
| Other comprehensive income | — | — | — | — | — | 1,551 | |
| Balance - March 31, 2024 | — | $18 | $(295,396) | $1,205,693 | $502,304 | $16,529 | |
| Exercise of stock options, vesting of restricted stock, and related tax withholdings | — | — | — | 1,299 | — | — | |
| Stock-based incentive compensation | — | — | — | 7,608 | — | — | |
| Purchase of company stock and related tax effects | — | — | (78,768) | — | — | — | () |
| Net income | — | — | — | — | 53,043 | — | |
| Other comprehensive loss | — | — | — | — | — | (899) | () |
| Balance - June 30, 2024 | — | $18 | $(374,164) | $1,214,600 | $555,347 | $15,630 | |
| Exercise of stock options, vesting of restricted stock, and related tax withholdings | — | — | — | (948) | — | — | () |
| Stock-based incentive compensation | — | — | — | 10,407 | — | — | |
| Purchase of company stock and related tax effects | — | — | (42,388) | — | — | — | () |
| Net income | — | — | — | — | 53,856 | — | |
| Other comprehensive loss | — | — | — | — | — | (6,127) | () |
| Balance - September 30, 2024 | — | $18 | $(416,552) | $1,224,059 | $609,203 | $9,503 | |
| Balance - December 31, 2024 | — | $18 | $(507,598) | $1,231,435 | $669,336 | $11,047 | |
| Exercise of stock options, vesting of restricted stock, and related tax withholdings | — | — | — | (5,436) | — | — | () |
| Stock-based incentive compensation | — | — | — | 8,801 | — | — | |
| Purchase of company stock and related tax effects | — | — | (101,113) | — | — | — | () |
| Net income | — | — | — | — | 46,742 | — | |
| Other comprehensive loss | — | — | — | — | — | (2,398) | () |
| Balance - March 31, 2025 | — | $18 | $(608,711) | $1,234,800 | $716,078 | $8,649 | |
| Exercise of stock options, vesting of restricted stock, and related tax withholdings | — | — | — | (33) | — | — | () |
| Stock-based incentive compensation | — | — | — | 10,712 | — | — | |
| Purchase of company stock and related tax effects | — | — | (50,404) | — | — | — | () |
| Net income | — | — | — | — | 50,523 | — | |
| Other comprehensive loss | — | — | — | — | — | (1,684) | () |
| Balance - June 30, 2025 | — | $18 | $(659,115) | $1,245,479 | $766,601 | $6,965 | |
| Exercise of stock options, vesting of restricted stock, and related tax withholdings | — | — | — | 310 | — | — | |
| Stock-based incentive compensation | — | — | — | 11,125 | — | — | |
| Purchase of company stock and related tax effects | — | — | (63,077) | — | — | — | () |
| Net income | — | — | — | — | 51,816 | — | |
| Other comprehensive loss | — | — | — | — | — | (1,463) | () |
| Balance - September 30, 2025 | — | $18 | $(722,192) | $1,256,914 | $818,417 | $5,502 |
The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these statements.
OPTION CARE HEALTH, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. NATURE OF OPERATIONS AND PRESENTATION OF FINANCIAL STATEMENTS
Corporate Organization and Business — Option Care Health, and its wholly-owned subsidiaries, provide infusion therapy and other ancillary healthcare services through a national network of full service pharmacies, including with ambulatory infusion suites. Additionally, the Company has stand-alone ambulatory infusion suites, including with advanced practitioner capabilities. The Company contracts with managed care organizations, third-party payers, hospitals, physicians, and other referral sources to provide pharmaceuticals and complex compounded solutions to patients for intravenous delivery in the patients’ homes or other nonhospital settings. The Company operates in segment, infusion services. The Company’s stock is listed on the Nasdaq Global Select Market as of September 30, 2025.
Basis of Presentation — The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States and contain all adjustments, including normal recurring adjustments, necessary to present fairly the Company’s financial position, results of operations and cash flows for interim financial reporting. The results of operations for the interim periods presented are not necessarily indicative of the results of operations for the entire year. These unaudited condensed consolidated financial statements do not include all of the information and notes to the financial statements required by GAAP for complete financial statements and should be read in conjunction with the 2024 audited consolidated financial statements, including the notes thereto, as presented in our Form 10-K.
Principles of Consolidation — The Company’s unaudited condensed consolidated financial statements include the accounts of Option Care Health, Inc. and its subsidiaries. All intercompany transactions and balances are eliminated in consolidation.
The Company has investments in companies that are 50% owned and are accounted for as equity-method investments. The Company’s share of earnings from equity-method investments is included in the line entitled “Equity in earnings of joint ventures” in the unaudited condensed consolidated statements of comprehensive income. See Equity-Method Investments within Note 2, Summary of Significant Accounting Policies, for further discussion of the Company’s equity-method investments.
- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash and Cash Equivalents — The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. As of September 30, 2025, cash equivalents consisted of money market funds.
Prepaid Expenses and Other Current Assets — Included in prepaid expenses and other current assets are volume-based rebates receivable from pharmaceutical and medical supply manufacturers of million and million as of September 30, 2025 and December 31, 2024, respectively.
Equity-Method Investments — The Company’s investments in certain unconsolidated entities are accounted for under the equity method. The balance of these investments is included in other noncurrent assets in the accompanying condensed consolidated balance sheets. As of September 30, 2025 and December 31, 2024, the balance of the investments was million and million, respectively. The balance of these investments is increased to reflect the Company’s capital contributions and equity in earnings of the investees. The balance of these investments is decreased to reflect the Company’s equity in losses of the investees and for distributions received that are not in excess of the carrying amount of the investments. The Company’s proportionate share of earnings or losses of the investees is recorded in equity in earnings of joint ventures in the accompanying unaudited condensed consolidated statements of comprehensive income. The Company’s proportionate share of earnings was million and million for the three and nine months ended September 30, 2025, respectively. The Company’s proportionate share of earnings was million and million for the three and nine months ended September 30, 2024, respectively. Distributions from the investees are treated as cash inflows from operating activities in the unaudited condensed consolidated statements of cash flows. During the three and nine months ended September 30, 2025, the Company received distributions from the investees of $0.5 million and $2.1 million, respectively. During the three and nine months ended September 30, 2024, the Company received distributions from the investees of $0.5 million and $1.3 million, respectively. See Note 16, Related-Party Transactions, for discussion of related-party transactions with these investees.
Concentrations of Business Risk — The Company generates revenue from managed care contracts and other agreements with commercial third-party payers. Revenue related to the Company’s largest payer was approximately 14% for the three and nine months ended September 30, 2025. Revenue related to the Company’s largest payer was approximately 15% for the three and nine months ended September 30, 2024. There were no other managed care contracts that represent greater than 10% of revenue for the periods presented.
For the three and nine months ended September 30, 2025, approximately % of the Company’s revenue was reimbursable through direct government healthcare programs, such as Medicare and Medicaid. For the three and nine months ended September 30, 2024, approximately % and %, respectively, of the Company’s revenue was reimbursable through direct government healthcare programs, such as Medicare and Medicaid. As of September 30, 2025 and December 31, 2024, approximately % of the Company’s accounts receivable was related to these programs. Governmental programs pay for services based on fee schedules and rates that are determined by the related governmental agency. Laws and regulations pertaining to government programs are complex and subject to interpretation. As a result, there is at least a reasonable possibility that recorded estimates will change in the near term.
The Company does not require its patients or other payers to carry collateral for any amounts owed for goods or services provided. Other than as discussed above, concentration of credit risk relating to trade accounts receivable is limited due to the Company’s diversity of patients and payers. Further, the Company generally does not provide charity care; however, Option Care Health offers a financial assistance program for patients that meet certain defined hardship criteria.
For the three and nine months ended September 30, 2025, approximately 66% and 67%, respectively, of the Company’s pharmaceutical and medical supply purchases were from four vendors. For the three and nine months ended September 30, 2024, approximately 68% and 67%, respectively, of the Company’s pharmaceutical and medical supply purchases were from four vendors. Although there are a limited number of suppliers, the Company believes that other vendors could provide similar products on comparable terms for most products. However, a change in suppliers could cause delays in service delivery and possible losses in revenue, which could adversely affect the Company’s financial condition or operating results.
- BUSINESS COMBINATIONS
Intramed Plus, Inc. — On January 24, 2025, pursuant to the securities purchase agreement dated November 27, 2024, the Company completed the acquisition of 100% of the equity interests in Intramed Plus, Inc. (“Intramed Plus”) for a purchase price, net of cash acquired, of $117.2 million.
The allocation of the purchase price of Intramed Plus was accounted for as a business combination in accordance with ASC Topic 805, Business Combinations, with the total purchase price being allocated to the assets and liabilities acquired based on the estimated fair value of each asset and liability. Certain adjustments were made to preliminary valuation amounts related to accounts receivable, net during the three months ended September 30, 2025. The following is a preliminary estimate of the allocation of the consideration transferred to acquired identifiable assets and assumed liabilities, net of cash acquired, as of September 30, 2025, which remains open for accounts receivable, net (in thousands):
| Line item | Amount | Amount |
|---|---|---|
| Accounts receivable, net | $9,337 | |
| Referral sources (1) | 36,800 | |
| Trademarks/names (1) | 8,300 | |
| Inventory | 2,693 | |
| Other assets | 4,831 | |
| Accounts payable and other liabilities | (11,114) | |
| Fair value identifiable assets and liabilities | 50,847 | |
| Goodwill (2) | 66,400 | |
| Cash acquired | 2,968 | |
| Purchase price | 120,215 | |
| Less: cash acquired | (2,968) | |
| Purchase price, net of cash acquired | $117,247 |
(1) Referral sources and trademarks/names have been assigned a useful life of 15 years.
(2) Goodwill is attributable to cost synergies from procurement and operational efficiencies and elimination of duplicative administrative costs.
- REVENUE
The following table sets forth the net revenue earned by category of payer for the three and nine months ended September 30, 2025 and 2024 (in thousands):
| Line item | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| Commercial payers | $1,252,185 | $1,109,971 | $3,628,777 | $3,160,490 |
| Government payers | 172,750 | 147,005 | 501,243 | 424,033 |
| Patients | 10,081 | 21,570 | 54,053 | 67,261 |
| Net revenue |
5. INCOME TAXES
During the three and nine months ended September 30, 2025, the Company recorded tax expense of million and million, respectively, which represents an effective tax rate of % and %, respectively. The variance in the Company’s effective tax rate of % and % for the three and nine months ended September 30, 2025, respectively, compared to the federal statutory rate of 21%, is primarily attributable to the difference between federal and state tax rates and various non-deductible expenses. During the three and nine months ended September 30, 2024, the Company recorded tax expense of million and million, respectively, which represents an effective tax rate of % and %, respectively. The variance in the Company’s effective tax rate of % and % for the three and nine months ended September 30, 2024, respectively, compared to the federal statutory rate of 21%, is primarily attributable to the difference between federal and state tax rates, various non-deductible expenses, and a change in state valuation allowance. During the nine months ended September 30, 2024, the Company released $2.2 million of state valuation allowance.
The Company maintains a valuation allowance of $3.3 million against certain state net operating losses. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. In making this assessment, the Company considers the scheduled reversal of deferred tax liabilities, including the effect in available carryback and carryforward periods, projected taxable income, and tax-planning strategies. On a quarterly basis, the Company evaluates all positive and negative evidence in determining if the valuation allowance is fairly stated.
The Company’s tax expense of million and million for the three and nine months ended September 30, 2025, respectively, consists of quarterly federal and state tax liabilities as well as recognized deferred federal and state tax expense. The Company’s tax expense of million and million for the three and nine months ended September 30, 2024, respectively, consists of quarterly federal and state tax liabilities as well as recognized deferred federal and state tax expense.
The Company has accumulated federal net operating loss carryovers that are subject to one or more Internal Revenue Code (“Code”) Section 382 limitations. This may limit the Company’s ability to utilize its federal net operating losses.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company has reflected the applicable provisions of the OBBBA into its unaudited condensed financial statements for the nine months ended September 30, 2025, and there is no material impact on its unaudited condensed consolidated financial statements and related disclosures.
- EARNINGS PER SHARE
The Company presents basic and diluted earnings per share for its common stock. Basic earnings per share is calculated by dividing the net income of the Company by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is determined by adjusting the profit or loss and the weighted average number of shares of common stock outstanding for the effects of all potentially dilutive securities.
The earnings are used as the basis of determining whether the inclusion of common stock equivalents would be anti-dilutive. The computation of diluted shares for the three and nine months ended September 30, 2025 and 2024 includes the effect of shares that would be issued in connection with warrants, stock options, restricted stock awards and performance stock unit awards, as these common stock equivalents are dilutive to the earnings per share recorded in those periods.
The following table presents the Company’s common stock equivalents that were excluded from the calculation of earnings per share as they would be anti-dilutive:
| Line item | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| Stock option awards | 698,780 | 779,876 | 697,668 | 855,323 |
| Restricted stock awards | 630,075 | 324,877 | 524,731 | 365,835 |
| Performance stock unit awards | 3,881 | — | 333,995 | 257,735 |
The following table presents the Company’s basic earnings per share and shares outstanding (in thousands, except per share data):
| Line item | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| Numerator: | ||||
| Net income | ||||
| Denominator: | ||||
| Weighted average number of common shares outstanding | ||||
| Earnings per common share: | ||||
| Earnings per common share, basic |
The following table presents the Company’s diluted earnings per share and shares outstanding (in thousands, except per share data):
| Line item | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| Numerator: | ||||
| Net income | ||||
| Denominator: | ||||
| Weighted average number of common shares outstanding | ||||
| Effect of dilutive securities | ||||
| Weighted average number of common shares outstanding, diluted | ||||
| Earnings per common share: | ||||
| Earnings per common share, diluted |
- LEASES
During the three and nine months ended September 30, 2025, the Company incurred operating lease expenses of million and million, respectively, including short-term lease expenses, which were included as a component of selling, general and administrative expenses in the unaudited condensed consolidated statements of comprehensive income. During the three and nine months ended September 30, 2024, the Company incurred operating lease expenses of million and million, respectively, including short-term lease expenses, which were included as a component of selling, general and administrative expenses in the unaudited condensed consolidated statements of comprehensive income. As of September 30, 2025 and December 31, 2024, the weighted-average remaining lease term was 6.6 years and 6.5 years, respectively, and the weighted-average discount rate was % and %, respectively.
Operating leases mature as follows (in thousands):
| Fiscal Year Ended December 31, | Minimum Payments |
|---|---|
| 2025 | |
| 2026 | |
| 2027 | |
| 2028 | |
| 2029 | |
| Thereafter | |
| Total lease payments | |
| Less: interest | () |
| Present value of lease liabilities |
During the nine months ended September 30, 2025 and 2024, the Company commenced new leases, extensions and amendments, resulting in non-cash operating activities in the unaudited condensed consolidated statements of cash flows of million and million, respectively, related to increases in the operating lease right-of-use assets and operating lease liabilities. As of September 30, 2025, the Company did not have any significant operating or financing leases that had not yet commenced.
- PROPERTY AND EQUIPMENT
Property and equipment was as follows as of September 30, 2025 and December 31, 2024 (in thousands):
| Line item | September 30, 2025 | December 31, 2024 |
|---|---|---|
| Infusion pumps | $39,476 | $37,659 |
| Equipment, furniture and other | 26,901 | 24,055 |
| Leasehold improvements | 129,105 | 116,675 |
| Computer software, purchased and internally developed | 50,631 | 46,532 |
| Assets under development | 23,242 | 22,990 |
| Less: accumulated depreciation | () | () |
| Property and equipment, net |
Depreciation expense is recorded within cost of revenue and operating expenses within the unaudited condensed consolidated statements of comprehensive income, depending on the nature of the underlying fixed assets. The depreciation expense included in cost of revenue relates to revenue-generating assets, such as infusion pumps. The depreciation expense included in operating expenses is related to infrastructure items, such as furniture, computer and office equipment, and leasehold improvements. The following table presents the amount of depreciation expense recorded in cost of revenue and operating expenses for the three and nine months ended September 30, 2025 and 2024 (in thousands):
| Line item | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| Depreciation expense in cost of revenue | $757 | $568 | $2,096 | $1,735 |
| Depreciation expense in operating expenses | 7,022 | 6,063 | 20,615 | 18,485 |
| Total depreciation expense |
- GOODWILL AND OTHER INTANGIBLE ASSETS
Changes in the carrying amount of goodwill consist of the following for the three and nine months ended September 30, 2025 (in thousands):
| Line item | Amount | Amount |
|---|---|---|
| Balance at December 31, 2024 | ||
| Acquisitions | ||
| Balance at March 31, 2025 | ||
| Purchase accounting adjustments | () | |
| Balance at June 30, 2025 | ||
| Purchase accounting adjustments | ||
| Balance at September 30, 2025 |
There was no change in the carrying amount of goodwill for the three and nine months ended September 30, 2024.
The carrying amount and accumulated amortization of intangible assets consist of the following as of September 30, 2025 and December 31, 2024 (in thousands):
| Line item | September 30, 2025 | December 31, 2024 |
|---|---|---|
| Gross intangible assets: | ||
| Referral sources | $551,188 | $514,388 |
| Trademarks/names | 46,808 | 39,136 |
| Other amortizable intangible assets | 985 | 985 |
| Total gross intangible assets | ||
| Accumulated amortization: | ||
| Referral sources | (255,472) | (230,371) |
| Trademarks/names | (24,385) | (22,599) |
| Other amortizable intangible assets | (676) | (529) |
| Total accumulated amortization | () | () |
| Total intangible assets, net |
Amortization expense for intangible assets was million and million for the three and nine months ended September 30, 2025, respectively. Amortization expense for intangible assets was million and million for the three and nine months ended September 30, 2024, respectively.
- INDEBTEDNESS
Long-term debt consisted of the following as of September 30, 2025 (in thousands):
| Revolver Facility | Principal Amount$ | Principal Amount— | Discount$ | Discount— | Debt Issuance Costs$ | Debt Issuance Costs— | Net Balance$ | Net Balance— |
|---|---|---|---|---|---|---|---|---|
| First Lien Term Loan | 678,000 | (4,713) | (5,112) | 668,175 | ||||
| Senior Notes | 500,000 | — | (6,339) | 493,661 | ||||
| $() | $() | |||||||
| Less: current portion | () | |||||||
| Total long-term debt |
Long-term debt consisted of the following as of December 31, 2024 (in thousands):
| Revolver Facility | Principal Amount$ | Principal Amount— | Discount$ | Discount— | Debt Issuance Costs$ | Debt Issuance Costs— | Net Balance$ | Net Balance— |
|---|---|---|---|---|---|---|---|---|
| First Lien Term Loan | 631,617 | (5,537) | (7,555) | 618,525 | ||||
| Senior Notes | 500,000 | — | (7,372) | 492,628 | ||||
| $() | $() | |||||||
| Less: current portion | () | |||||||
| Total long-term debt |
On September 22, 2025, the Company entered into the fourth amendment (the “Fourth Amendment”) to the amended and restated First Lien Credit Agreement (the “Credit Agreement”). The Fourth Amendment, among other things, (i) refinances the existing term loans under the Credit Agreement with a new class of term loans (the “First Lien Term Loan”), reduces the interest rate on the First Lien Term Loan from Term Secured Overnight Financing Rate (“SOFR”) plus 2.25% to Term SOFR plus 1.75% and extends the maturity date of the First Lien Term Loan to September 22, 2032, (ii) provides for an additional $49.6 million of incremental First Lien Term Loan indebtedness, and (iii) extends the maturity date of the revolving credit commitments under the Credit Agreement (the “Revolver Facility”) to September 22, 2030.
As part of the above refinancing, certain lenders exited while others joined, resulting in both repayment and proceeds. The Company assessed whether the repayment of the First Lien Term Loan indebtedness resulted in an insubstantial modification or an extinguishment of the existing debt for each loan in the syndication by grouping lenders as follows: (i) Lenders participating in both the First Lien Term Loan and 4.375% Senior Unsecured Notes due 2029 (the “Senior Notes”); (ii) previous lenders that exited; and (iii) new lenders. The Company determined that proceeds from the issuance of debt totaled $229.8 million, resulting in a cash inflow from financing activities, net of $0.3 million in fees incurred, in the unaudited condensed consolidated statements of cash flows. The Company also recognized $180.2 million of retirement of debt obligations, resulting in a cash outflow from financing activities, in the unaudited condensed consolidated statements of cash flows.
In connection with the refinancing of the First Lien Term Loan, the Company incurred $6.7 million in debt issuance costs and third-party fees, of which $3.5 million was capitalized, $2.8 million was expensed as a component of selling, general and administrative expenses and $0.4 million was expensed as a loss on extinguishment as a component of other expense in the consolidated statements of comprehensive income. The Company recognized a loss on extinguishment of debt of $4.7 million included in the line entitled “Other, net” in the consolidated statements of comprehensive income, of which $0.4 million related to debt issuance costs incurred with the First Lien Term Loan refinancing, as discussed above, and $4.3 million related to existing deferred financing fees that were written off upon extinguishment.
As part of the above refinancing, the Company incurred $0.3 million in fees related to the Revolver Facility, all of which were capitalized and included as a cash outflow from financing activities within the unaudited condensed consolidated statements of cash flows.
The interest rate on the First Lien Term Loan was 5.89% and 6.82% as of September 30, 2025 and December 31, 2024, respectively. The weighted average interest rate incurred on the First Lien Term Loan was 6.51% and 6.56% for the three and nine months ended September 30, 2025, respectively. The weighted average interest rate incurred on the First Lien Term Loan
was 7.56% and 7.84% for the three and nine months ended September 30, 2024, respectively. The First Lien Term Loan matures on September 22, 2032.
The interest rate on the Senior Notes was 4.375% as of September 30, 2025 and December 31, 2024. The weighted average interest rate incurred on the Senior Notes was 4.375% for the three and nine months ended September 30, 2025 and 2024. The Senior Notes mature on October 31, 2029.
As of September 30, 2025, the Company had $4.0 million of undrawn letters of credit issued and outstanding, resulting in net borrowing availability under the Revolver Facility of $396.0 million. The Revolver Facility matures on the date that is the earlier of (i) September 22, 2030 and (ii) the date that is 91 days prior to the stated maturity date applicable to the Senior Notes to the extent any amount of the Senior Notes remains unpaid and outstanding as of the date that is 91 days prior to the stated maturity date applicable to the Senior Notes.
Long-term debt matures as follows (in thousands):
| Fiscal Year Ended December 31, | Minimum Payments |
|---|---|
| 2025 | |
| 2026 | |
| 2027 | |
| 2028 | |
| 2029 | |
| Thereafter | |
| Total |
During the three and nine months ended September 30, 2025 and 2024, the Company engaged in hedging activities to limit its exposure to changes in interest rates. See Note 11, Derivative Instruments, for further discussion.
The following table presents the estimated fair values of the Company’s debt obligations as of September 30, 2025 (in thousands):
| Financial Instrument | Carrying Value as of September 30, 2025 | Markets for Identical Item (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) |
|---|---|---|---|---|
| First Lien Term Loan | $668,175 | — | $677,186 | — |
| Senior Notes | 493,661 | — | 480,000 | — |
| Total debt instruments | — | $1,157,186 | — |
See Note 12, Fair Value Measurements, for further discussion.
- DERIVATIVE INSTRUMENTS
The Company utilizes derivative financial instruments for hedging and non-trading purposes to limit the Company’s exposure to its variable interest rate risk. Use of derivative financial instruments in hedging strategies subjects the Company to certain risks, such as market and credit risks. Market risk represents the possibility that the value of the derivative financial instrument will change. Credit risk related to a derivative financial instrument represents the possibility that the counterparty will not fulfill the terms of the contract. The notional, or contractual, amount of the Company’s derivative financial instruments is used to measure interest to be paid or received and does not represent the Company’s exposure due to credit risk. Credit risk is monitored through established approval procedures, including reviewing credit ratings when appropriate.
In October 2021, the Company entered into an interest rate cap hedge with a notional amount of $300 million for a five-year term beginning November 30, 2021. The hedge partially offsets risk associated with the First Lien Term Loan’s variable interest rate. The interest rate cap instrument perfectly offsets the terms of the interest rates associated with the variable interest rate of the First Lien Term Loan.
The following table summarizes the amount and location of the Company’s derivative instruments in the condensed consolidated balance sheets (in thousands):
| Derivative | Fair Value - Derivatives in Asset PositionBalance Sheet Caption | Fair Value - Derivatives in Asset PositionSeptember 30, 2025 | Fair Value - Derivatives in Asset PositionDecember 31, 2024 |
|---|---|---|---|
| Interest rate cap designated as cash flow hedge | Prepaid expenses and other current assets | $6,518 | $8,034 |
| Interest rate cap designated as cash flow hedge | Other noncurrent assets | 842 | 6,680 |
| Total derivative assets |
The gain and loss associated with the changes in the fair value of the effective portion of the hedging instrument is recorded in other comprehensive (loss) income. The gain and loss associated with the changes in the fair value of the hedging instrument is recognized in net income through interest expense.
The following table presents the pre-tax (loss) gain from derivative instruments recognized in other comprehensive (loss) income in the Company’s unaudited condensed consolidated statements of comprehensive income (in thousands):
| Derivative | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| Interest rate cap designated as cash flow hedge | $(1,941) | $(8,125) | $(7,354) | $(7,260) |
The following table presents the amount and location of pre-tax income recognized in the Company’s unaudited condensed consolidated statements of comprehensive income related to the Company’s derivative instruments (in thousands):
| Derivative | Income Statement Caption | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|---|
| Interest rate cap designated as cash flow hedge | Interest expense, net | $2,241 | $3,056 | $6,642 | $9,005 |
- FAIR VALUE MEASUREMENTS
Fair value measurements are determined by maximizing the use of observable inputs and minimizing the use of unobservable inputs. The hierarchy places the highest priority on unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurements) and gives the lowest priority to unobservable inputs (Level 3 measurements). The categories within the valuation hierarchy are described as follows:
- Level 1 — Inputs to the fair value measurement are quoted prices in active markets for identical assets or liabilities.
- Level 2 — Inputs to the fair value measurement include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.
- Level 3 — Inputs to the fair value measurement are unobservable inputs or valuation techniques.
While the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
First Lien Term Loan: The fair value of the First Lien Term Loan is derived from a broker quote on the loans in the syndication (Level 2 inputs). See Note 10, Indebtedness, for further discussion of the carrying amount and fair value of the First Lien Term Loan.
Senior Notes: The fair value of the Senior Notes is derived from a broker quote (Level 2 inputs). See Note 10, Indebtedness, for further discussion of the carrying amount and fair value of the Senior Notes.
Interest Rate Cap: The fair value of the interest rate cap is derived from the interest rates prevalent in the market and future expectations of those interest rates (Level 2 inputs). The Company determines the fair value of the investments based on quoted prices from third-party brokers. See Note 11, Derivative Instruments, for further discussion of the fair value of the interest rate cap.
Money Market Funds: The fair value of the money market funds is derived from the closing price reported by the fund sponsor and classified as cash and cash equivalents on the Company’s condensed consolidated balance sheets (Level 1 inputs).
There were no other material assets or liabilities measured at fair value at September 30, 2025 and December 31, 2024.
13. COMMITMENTS AND CONTINGENCIES
The Company is involved in legal proceedings and is subject to investigations, inspections, audits, inquiries, and similar actions by governmental authorities, arising in the normal course of the Company’s business. Some of these suits may purport or may be determined to be class actions and/or involve parties seeking large and/or indeterminate amounts, including punitive or exemplary damages, and may remain unresolved for several years. From time to time, the Company may also be involved in legal proceedings as a plaintiff involving antitrust, tax, contract, intellectual property, and other matters. Gain contingencies, if any, are recognized when they are realized.
The results of legal proceedings are often uncertain and difficult to predict, and the costs incurred in litigation can be substantial, regardless of the outcome. The Company does not believe that any of these pending matters, after consideration of applicable reserves and rights to indemnification, will have a material adverse effect on the Company’s condensed consolidated balance sheets.
However, substantial unanticipated verdicts, fines, and rulings may occur. As a result, the Company may from time to time incur judgments, enter into settlements, or revise expectations regarding the outcome of certain matters, and such developments could have a material adverse effect on its results of operations in the period in which the amounts are accrued and/or its cash flows in the period in which the amounts are paid.
- STOCK-BASED INCENTIVE COMPENSATION
Equity Incentive Plans — Under the Company’s 2018 Equity Incentive Plan (the “2018 Plan”), approved at the annual meeting by stockholders on May 3, 2018 and amended and restated on May 19, 2021 and May 15, 2024, the Company may issue, among other things, incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock units, stock grants, and performance units to key employees and directors. The 2018 Plan is administered by the Company’s Compensation Committee, a standing committee of the Company’s Board of Directors. As of May 2021, a total of 9,101,734 shares of common stock were authorized for issuance under the 2018 Plan. In May 2024, an additional 4,000,000 shares were authorized for issuance under the 2018 Plan, resulting in a total of shares of common stock authorized for issuance. The Company had stock options, restricted stock units and performance stock units outstanding related to the 2018 Plan as of September 30, 2025 and December 31, 2024. During the three and nine months ended September 30, 2025, total stock-based incentive compensation expense recognized by the Company related to the 2018 Plan was $11.1 million and $30.6 million, respectively. During the three and nine months ended September 30, 2024, total stock-based incentive compensation expense recognized by the Company related to the 2018 Plan was $10.4 million and $27.6 million, respectively.
15. STOCKHOLDERS’ EQUITY
Warrants — As of September 30, 2025 and December 31, 2024, the Company had warrants outstanding which entitle holders to purchase an number of shares of common stock.
Share Repurchase Program — The Company’s Board of Directors approved a share repurchase program of up to an aggregate $500.0 million of common stock of the Company. Under the share repurchase program, repurchases may occur in any number of methods depending on timing, market conditions, regulatory requirements, and other corporate considerations. The share repurchase program has no specified expiration date.
During the three and nine months ended September 30, 2025, the Company purchased and shares of common stock for an average share price of and , totaling million and million, respectively. During the three and nine months ended September 30, 2024, the Company purchased and shares of common stock for an average share price of and , totaling million and million, respectively. All repurchased shares became treasury stock. As of September 30, 2025, the Company is authorized to repurchase up to a remaining million of common stock of the Company.
Shares Outstanding — The following table shows the Company’s changes in shares of common stock for the three and nine months ended September 30, 2025 and 2024 (in thousands):
| Line item | 2025 | 2024 |
|---|---|---|
| Balance, beginning of the year | 166,261 | 174,576 |
| Equity award issuances | 529 | 492 |
| Share repurchases | (3,046) | (1,252) |
| Balance March 31, | 163,744 | 173,816 |
| Equity award issuances | 104 | 261 |
| Share repurchases | (1,554) | (2,666) |
| Balance June 30, | 162,294 | 171,411 |
| Equity award issuances | 20 | 135 |
| Share repurchases | (2,206) | (1,400) |
| Balance September 30, | 160,108 | 170,146 |
- RELATED-PARTY TRANSACTIONS
Transactions with Equity-Method Investees — The Company provides management services to its joint ventures such as accounting, invoicing and collections in addition to day-to-day managerial support of the operations of the businesses. The Company recorded management fee income of $1.9 million and $5.6 million for the three and nine months ended September 30, 2025, respectively. The Company recorded management fee income of $1.6 million and $4.5 million for the three and nine months ended September 30, 2024, respectively. Management fees are recorded in net revenues in the accompanying unaudited condensed consolidated statements of comprehensive income. During the three and nine months ended September 30, 2025, the Company received distributions from the investees of $0.5 million and $2.1 million, respectively. During the three and nine months ended September 30, 2024, the Company received distributions from the investees of $0.5 million and $1.3 million, respectively.
The Company had amounts due from its joint ventures of $0.6 million and due to its joint ventures of $0.5 million as of September 30, 2025. The Company had amounts due to its joint ventures of $1.4 million as of December 31, 2024. Receivables were included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets. Payables were included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets. These balances primarily relate to cash collections received by the Company on behalf of the joint ventures, offset by certain pharmaceutical inventories and other expenses paid for by the Company on behalf of the joint ventures.
17. SEGMENT REPORTING
The Company has adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures and has revised prior year disclosures to conform with the current year presentation. The Company operates as a single reportable segment, infusion services. Infusion services derives revenue through the clinical management of infusion therapy, nursing support and care coordination in order to provide solutions to complex patient conditions in the home or other nonhospital settings. The Company’s infusion services segment activities are managed on a consolidated basis and therapies are distributed and administered in a similar manner.
Operating segments have been identified based on the financial information utilized by the Company’s Chief Executive Officer, the chief operating decision maker (“CODM”). The CODM uses net income as a measure of profitability to assess segment performance and deciding how to allocate resources such as capital investments, share repurchases, and acquisitions. The CODM does not use or receive total assets by segment to make decisions regarding resources; therefore, the total asset disclosure by segment has not been included.
The following table reflects results of operations of the Company’s reportable segment (in thousands):
| Line item | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| Infusion services net revenue | $1,411,051 | $1,256,455 | $4,115,240 | $3,587,677 |
| Other revenue (1) | ||||
| Total Option Care Health revenue | ||||
| (Expense) Income: | ||||
| Cost of net revenues - drugs | () | () | () | () |
| Salaries, benefits, and other employee expense | () | () | () | () |
| Other segment items (2) | () | () | () | () |
| Depreciation and amortization expense | () | () | () | () |
| Interest expense, net | () | () | () | () |
| Equity in earnings of joint ventures | ||||
| Other, net | () | () | () | |
| Income tax expense | () | () | () | () |
| Net Income |
(1) Represents business activities related to other miscellaneous revenue streams.
(2) Other segment items includes expenses for medical supplies, delivery and packaging, leases, professional services, and other expenses.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Unless the context requires otherwise, references in this report to “Option Care Health,” the “Company,” “we,” “us” and “our” refer to Option Care Health, Inc. and its consolidated subsidiaries. Management’s discussion and analysis of financial condition and results of operations (“MD&A”) is intended to assist the reader in understanding and assessing significant changes and trends related to our results of operations and financial condition. The following discussion and analysis should be read in conjunction with the Company’s unaudited condensed consolidated financial statements and the related notes thereto included in Item 1 of Part I of this Form 10-Q. Certain statements in this Item 2 of Part I of this Form 10-Q, and in Item 1A, “Risk Factors” of Part I of our Annual Report on Form 10-K for the year ended December 31, 2024 (our “Form 10-K”), may cause our actual results, financial position, and cash and cash equivalents generated from operations to differ materially from these forward-looking statements.
Business Overview
Option Care Health, and its wholly-owned subsidiaries, provides infusion therapy and other ancillary healthcare services through a national network of 192 locations around the United States. The Company contracts with managed care organizations, third-party payers, hospitals, physicians, and other referral sources to provide pharmaceuticals and complex compounded solutions to patients for intravenous delivery in the patients’ homes or other nonhospital settings. Our services are provided in coordination with, and under the direction of, the patient’s physician. Our multidisciplinary team of clinicians, including pharmacists, nurses, and dietitians work with the physician to develop a plan of care suited to each patient’s specific needs. We provide home infusion services consisting of anti-infectives, nutrition support, therapies for neurological disorders and chronic inflammatory disorders, immunoglobulin therapy, and other therapies for chronic and acute conditions. The Company operates in one reporting segment, infusion services.
Composition of Results of Operations
The following results of operations include the accounts of Option Care Health and our subsidiaries for the three and nine months ended September 30, 2025 and 2024.
Gross Profit
Gross profit represents our net revenue less cost of revenue.
Net Revenue. Infusion and related healthcare services revenue is reported at the estimated net realizable amounts from third-party payers and patients for goods sold and services rendered. When pharmaceuticals are provided to a patient, revenue is recognized upon delivery of the goods. When nursing services are provided, revenue is recognized when the services are rendered.
Due to the nature of the healthcare industry and the reimbursement environment in which the Company operates, certain estimates are required to record revenue and accounts receivable at their net realizable values at the time goods or services are provided. Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. Specifically, the complexity of many third-party billing arrangements and the uncertainty of reimbursement amounts for certain services from certain payers may result in adjustments to amounts originally recorded.
Cost of Revenue. Cost of revenue consists of the actual cost of pharmaceuticals and other medical supplies dispensed to patients. In addition to product costs, cost of revenue includes warehousing costs, purchasing costs, depreciation expense relating to revenue-generating assets, such as infusion pumps, shipping and handling costs, and wages and related costs for the pharmacists, nurses, and all other employees and contracted workers directly involved in providing service to the patient.
The Company receives volume-based rebates and prompt payment discounts from some of its pharmaceutical and medical supplies vendors. These payments are recorded as a reduction of inventory and are accounted for as a reduction of cost of revenue when the related inventory is sold.
Operating Costs and Expenses
Selling, General and Administrative Expenses. Selling, general and administrative expenses consist principally of salaries for administrative employees that directly and indirectly support the operations, occupancy costs, marketing expenditures, insurance, and professional fees.
Depreciation and Amortization Expense. Depreciation within this caption relates to property and equipment and amortization relates to intangibles. Depreciation of revenue-generating assets, such as infusion pumps, is included in cost of revenue.
Other Income (Expense)
Interest Expense, Net. Interest expense consists principally of interest payments on the Company’s outstanding borrowings under the First Lien Term Loan, Revolver Facility, Senior Notes, amortization of discount and deferred financing fees, payments associated with the interest rate cap, and interest income earned on cash and cash equivalents. Refer to the “Liquidity and Capital Resources” section below for further discussion of these outstanding borrowings.
Equity in Earnings of Joint Ventures. Equity in earnings of joint ventures consists of our proportionate share of equity earnings or losses from equity investments in two infusion joint ventures with healthcare systems.
Other, Net. Other (expense) income primarily includes activity related to non-operating income and expenses.
Income Tax Expense. The Company is subject to taxation in the United States and various states. The Company’s income tax expense is reflective of the current federal and state tax rates.
Change in Unrealized (Loss) Gain on Cash Flow Hedge, Net of Income Tax Benefit (Expense). Change in unrealized (loss) gain on cash flow hedge, net of income tax benefit (expense), consists of the (loss) gain associated with the changes in the fair value of derivatives designated as hedging instruments related to the interest rate cap hedge, net of income taxes.
Results of Operations
The following table presents Option Care Health’s consolidated results of operations for the three and nine months ended September 30, 2025 and 2024 (in thousands, except for percentages):
| Line item | Three Months Ended September 30, 2025Amount | Three Months Ended September 30, 2025% of Revenue | Three Months Ended September 30, 2024Amount | Three Months Ended September 30, 2024% of Revenue | Nine Months Ended September 30, 2025Amount | Nine Months Ended September 30, 2025% of Revenue | Nine Months Ended September 30, 2024Amount | Nine Months Ended September 30, 2024% of Revenue |
|---|---|---|---|---|---|---|---|---|
| NET REVENUE | $1,435,016 | 100.0% | $1,278,546 | 100.0% | $4,184,073 | 100.0% | $3,651,784 | 100.0% |
| COST OF REVENUE | 1,162,114 | 81.0% | 1,021,797 | 79.9% | 3,379,076 | 80.8% | 2,907,170 | 79.6% |
| GROSS PROFIT | 272,902 | 19.0% | 256,749 | 20.1% | 804,997 | 19.2% | 744,614 | 20.4% |
| OPERATING COSTS AND EXPENSES: | ||||||||
| Selling, general and administrative expenses | 172,104 | 12.0% | 156,999 | 12.3% | 510,314 | 12.2% | 465,524 | 12.7% |
| Depreciation and amortization expense | 16,291 | 1.1% | 14,659 | 1.1% | 48,278 | 1.2% | 44,294 | 1.2% |
| Total operating expenses | 188,395 | 13.1% | 171,658 | 13.4% | 558,592 | 13.4% | 509,818 | 14.0% |
| OPERATING INCOME | 84,507 | 5.9% | 85,091 | 6.7% | 246,405 | 5.9% | 234,796 | 6.4% |
| OTHER INCOME (EXPENSE): | ||||||||
| Interest expense, net | (14,146) | (1.0)% | (12,345) | (1.0)% | (41,824) | (1.0)% | (38,150) | (1.0)% |
| Equity in earnings of joint ventures | 2,176 | 0.2% | 1,391 | 0.1% | 5,300 | 0.1% | 3,921 | 0.1% |
| Other, net | (3,570) | (0.2)% | (583) | — | (8,497) | (0.2)% | 1,983 | 0.1% |
| Total other (expense) income | (15,540) | (1.1)% | (11,537) | (0.9)% | (45,021) | (1.1)% | (32,246) | (0.9)% |
| INCOME BEFORE INCOME TAXES | 68,967 | 4.8% | 73,554 | 5.8% | 201,384 | 4.8% | 202,550 | 5.5% |
| INCOME TAX EXPENSE | 17,151 | 1.2% | 19,698 | 1.5% | 52,303 | 1.3% | 50,860 | 1.4% |
| NET INCOME | $51,816 | 3.6% | $53,856 | 4.2% | $149,081 | 3.6% | $151,690 | 4.2% |
| OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||||||||
| Change in unrealized (loss) gain on cash flow hedges, net of income tax benefit of $478, $1,998, $1,809 and $1,785, respectively | (1,463) | (0.1)% | (6,127) | (0.5)% | (5,545) | (0.1)% | (5,475) | (0.1)% |
| OTHER COMPREHENSIVE (LOSS) INCOME | (1,463) | (0.1)% | (6,127) | (0.5)% | (5,545) | (0.1)% | (5,475) | (0.1)% |
| NET COMPREHENSIVE INCOME | $50,353 | 3.5% | $47,729 | 3.7% | $143,536 | 3.4% | $146,215 | 4.0% |
Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024
The following tables present selected consolidated comparative results of operations from Option Care Health’s unaudited condensed consolidated financial statements for the three months ended September 30, 2025 and 2024.
Gross Profit
in thousands, except for percentages
| Line item | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Variance |
|---|---|---|---|
| Net revenue | $1,435,016 | $1,278,546 | $12.2% |
| Cost of revenue | 1,162,114 | 1,021,797 | 13.7% |
| Gross profit | $272,902 | $256,749 | $6.3% |
| Gross profit margin | 19.0% | 20.1% |
The increase in net revenue was primarily driven by organic growth in the Company’s portfolio of therapies, consisting of acute revenue that had mid-teens growth relative to prior year while chronic revenue grew in the low double-digits. Acute growth was largely driven by the impact of shifts in the competitive landscape, which increased the volume of patient service. The increase in cost of revenue was primarily driven by the growth in revenue and therapy mix. The decrease in gross profit margin was primarily due to certain higher cost therapies included within chronic growth (including rare and orphan therapies). Gross profit was also impacted by the previously disclosed reduction in the procurement spread, which the Company expects to continue for the remainder of the year.
Operating Expenses
in thousands, except for percentages
| Line item | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Variance |
|---|---|---|---|
| Selling, general and administrative expenses | $172,104 | $156,999 | $9.6% |
| Depreciation and amortization expense | 16,291 | 14,659 | 11.1% |
| Total operating expenses | $188,395 | $171,658 | $9.8% |
The increase in selling, general and administrative expenses during the three months ended September 30, 2025 was primarily due to an increase in salaries, benefits and general costs to support the business and debt refinancing costs. See Note 10, Indebtedness, of the unaudited condensed consolidated financial statements for further information on the Company’s debt refinancing costs. Selling, general and administrative expenses have declined as a percentage of revenue to 12.0% for the three months ended September 30, 2025 compared to 12.3% for the three months ended September 30, 2024, primarily due to the Company’s focus on leveraging existing infrastructure to control spending. The increase in depreciation and amortization expense was primarily due to the Intramed Plus acquisition. See Note 3, Business Combinations, of the unaudited condensed consolidated financial statements for further information.
Other Income (Expense)
in thousands, except for percentages
| Line item | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Variance |
|---|---|---|---|
| Interest expense, net | $(14,146) | $(12,345) | $14.6% |
| Equity in earnings of joint ventures | 2,176 | 1,391 | 56.4% |
| Other, net | (3,570) | (583) | NM(1) |
| Total other (expense) income | $(15,540) | $(11,537) | $34.7% |
(1) Not meaningful
The increase in interest expense, net during the three months ended September 30, 2025 was primarily attributable to less interest income generated from our cash and cash equivalents, partially offset by a decrease in the interest rate on the Company’s First Lien Term Loan, compared to the three months ended September 30, 2024. See Note 10, Indebtedness, of the unaudited condensed consolidated financial statements for further information. The change in other, net period over period was primarily attributable to the $4.7 million loss on extinguishment of debt from the Company’s debt refinance during the three months ended September 30, 2025 with no comparable activity during the three months ended September 30, 2024. See Note 10, Indebtedness, of the unaudited condensed consolidated financial statements for further information.
Income Tax Expense
in thousands, except for percentages
| Line item | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Variance |
|---|---|---|---|
| Income tax expense | $17,151 | $19,698 | $(12.9)% |
The Company recorded income tax expense of $17.2 million and $19.7 million for the three months ended September 30, 2025 and 2024, respectively, which represents an effective tax rate of 24.9% and 26.8%, respectively. The variance in the Company’s effective tax rate of 24.9% for the three months ended September 30, 2025, compared to the federal statutory rate of 21.0%, was primarily attributable to the difference between federal and state tax rates and various non-deductible expenses. The variance in the Company’s effective tax rate of 26.8% for the three months ended September 30, 2024, compared to the federal statutory rate of 21.0%, was primarily attributable to the difference between federal and state tax rates, various non-deductible expenses, and a change in state valuation allowance.
Net Income and Other Comprehensive Income (Loss)
in thousands, except for percentages
| Line item | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Variance |
|---|---|---|---|
| Net income | $51,816 | $53,856 | $(3.8)% |
| Other comprehensive income (loss), net of tax: | |||
| Changes in unrealized (loss) gain on cash flow hedges, net of income taxes | (1,463) | (6,127) | (76.1)% |
| Other comprehensive (loss) income | (1,463) | (6,127) | (76.1)% |
| Net comprehensive income | $50,353 | $47,729 | $5.5% |
The change in net income was attributable to the factors described in the above sections.
For the three months ended September 30, 2025 and 2024, the change in unrealized (loss) gain on cash flow hedges, net of income taxes was related to the change in fair market value of the $300.0 million interest rate cap hedge executed in October 2021.
Net comprehensive income increased to $50.4 million for the three months ended September 30, 2025, compared to net comprehensive income of $47.7 million for the three months ended September 30, 2024, primarily as a result of the factors described in the above sections.
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
The following tables present selected consolidated comparative results of operations from Option Care Health’s unaudited condensed consolidated financial statements for the nine months ended September 30, 2025 and 2024.
Gross Profit
in thousands, except for percentages
| Line item | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | Variance |
|---|---|---|---|
| Net revenue | $4,184,073 | $3,651,784 | $14.6% |
| Cost of revenue | 3,379,076 | 2,907,170 | 16.2% |
| Gross profit | $804,997 | $744,614 | $8.1% |
| Gross profit margin | 19.2% | 20.4% |
The increase in net revenue was primarily driven by organic growth in the Company’s portfolio of therapies, consisting of acute revenue that had mid-teens growth relative to prior year while chronic revenue grew in the low-teens. Acute growth was largely driven by the impact of shifts in the competitive landscape, which increased the volume of patient service. The increase in cost of revenue was primarily driven by the growth in revenue and therapy mix. The decrease in gross profit margin was primarily due to certain higher cost therapies included within chronic growth (including rare and orphan therapies). Gross profit was also impacted by the previously disclosed reduction in procurement spread, partially offset by temporary mitigation efforts executed in the first quarter.
Operating Expenses
in thousands, except for percentages
| Line item | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | Variance |
|---|---|---|---|
| Selling, general and administrative expenses | $510,314 | $465,524 | $9.6% |
| Depreciation and amortization expense | 48,278 | 44,294 | 9.0% |
| Total operating expenses | $558,592 | $509,818 | $9.6% |
The increase in selling, general and administrative expenses during the nine months ended September 30, 2025 was primarily due to an increase in salaries, benefits, and general costs to support the business and debt refinance costs. See Note 10, Indebtedness, of the unaudited condensed consolidated financial statements for further information on the Company’s debt refinancing costs . Selling, general and administrative expenses have declined as a percentage of revenue to 12.2% for the nine months ended September 30, 2025 compared to 12.7% for the nine months ended September 30, 2024, primarily due to the Company’s focus on leveraging existing infrastructure to control spending. The increase in depreciation and amortization expense was primarily due to the Intramed Plus acquisition. See Note 3, Business Combinations, of the unaudited condensed consolidated financial statements for further information.
Other Income (Expense)
in thousands, except for percentages
| Line item | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | Variance |
|---|---|---|---|
| Interest expense, net | $(41,824) | $(38,150) | $9.6% |
| Equity in earnings of joint ventures | 5,300 | 3,921 | 35.2% |
| Other, net | (8,497) | 1,983 | NM(1) |
| Total other (expense) income | $(45,021) | $(32,246) | $39.6% |
(1) Not meaningful
The increase in interest expense, net during the nine months ended September 30, 2025 was primarily attributable to less interest income generated from our cash and cash equivalents, partially offset by a decrease in the interest rate on the Company’s First Lien Term Loan, compared to the nine months ended September 30, 2024. See Note 10, Indebtedness, of the unaudited condensed consolidated financial statements for further information. The change in other, net during the nine months ended September 30, 2025 was primarily attributable to accruals related to an abandoned or unclaimed property voluntary disclosure agreement program which was related to the pre-merger operations of BioScrip, Inc. (“BioScrip”), which was entered into by BioScrip prior to its merger with the Company in 2019. As of September 30, 2025, the matters related to this program are ongoing. Additionally, the change in other, net during the nine months ended September 30, 2025 was attributable to the $4.7 million loss on extinguishment of debt from the Company’s debt refinance during the nine months ended September 30, 2025 with no comparable activity during the nine months ended September 30, 2024. See Note 10, Indebtedness, of the unaudited condensed consolidated financial statements for further information.
Income Tax Expense
in thousands, except for percentages
| Line item | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | Variance |
|---|---|---|---|
| Income tax expense | $52,303 | $50,860 | $2.8% |
The Company recorded income tax expense of $52.3 million and $50.9 million for the nine months ended September 30, 2025 and 2024, respectively, which represents an effective tax rate of 26.0% and 25.1%, respectively. The variance in the Company’s effective tax rate of 26.0% for the nine months ended September 30, 2025, compared to the federal statutory rate of 21.0%, was primarily attributable to the difference between federal and state tax rates and various non-deductible expenses. The variance in the Company’s effective tax rate of 25.1% for the nine months ended September 30, 2024, compared to the federal statutory rate of 21.0%, was primarily attributable to the difference between federal and state tax rates, various non-deductible expenses, and a change in state valuation allowance.
Net Income and Other Comprehensive Income (Loss)
in thousands, except for percentages
| Line item | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | Variance |
|---|---|---|---|
| Net income | $149,081 | $151,690 | $(1.7)% |
| Other comprehensive income (loss), net of tax: | |||
| Changes in unrealized (loss) gain on cash flow hedges, net of income taxes | (5,545) | (5,475) | NM(1) |
| Other comprehensive (loss) income | (5,545) | (5,475) | NM(1) |
| Net comprehensive income | $143,536 | $146,215 | $(1.8)% |
(1) Not meaningful
The change in net income was attributable to the factors described in the above sections.
For the nine months ended September 30, 2025 and 2024, the change in unrealized (loss) gain on cash flow hedges, net of income taxes was related to the change in fair market value of the $300.0 million interest rate cap hedge executed in October 2021.
Net comprehensive income decreased to $143.5 million for the nine months ended September 30, 2025, compared to net comprehensive income of $146.2 million for the nine months ended September 30, 2024, primarily as a result of the factors described in the above sections.
Liquidity and Capital Resources
For the nine months ended September 30, 2025 and the twelve months ended December 31, 2024, the Company’s primary sources of liquidity were cash and cash equivalents of $309.8 million and $412.6 million, respectively. As of September 30, 2025, the Company had $396.0 million of borrowings available under its credit facilities (net of $4.0 million undrawn letters of credit issued and outstanding). As of December 31, 2024, the Company had $395.9 million of borrowings available under its credit facilities (net of $4.1 million undrawn letters of credit issued and outstanding). During the nine months ended September 30, 2025 and 2024, the Company’s cash flows from operations enabled investments in pharmacy, infusion suites, and information technology infrastructure to support growth and create additional capacity in the future, as well as to pursue acquisitions and share repurchases.
The Company’s primary uses of cash and cash equivalents include supporting our ongoing business activities, investment in capital expenditures in both facilities and technology, the pursuit of acquisitions, and share repurchases. Ongoing operating cash outflows are associated with procuring and dispensing drugs, personnel and other costs associated with servicing patients, as well as paying cash interest on outstanding debt and taxes. Ongoing investing cash flows are primarily associated with capital projects and business acquisitions, the improvement and maintenance of our pharmacy facilities and investment in our information technology systems. Ongoing financing cash flows are primarily associated with the quarterly principal payments on our outstanding debt, along with potential future share repurchases.
Our business strategy includes the deployment of capital to pursue acquisitions that complement our existing operations. We continue to evaluate acquisition opportunities and view acquisitions as a key part of our growth strategy. The Company has generally funded its acquisitions with cash and cash equivalents. The Company may require additional capital in excess of current availability in order to complete future acquisitions. It is impossible to predict the amount of capital that may be required for acquisitions, and there is no assurance that sufficient financing for these activities will be available on acceptable terms.
Short-Term and Long-Term Liquidity Requirements
The Company’s ability to make principal and interest payments on any borrowings under our credit facilities and our ability to fund planned capital expenditures will depend on our ability to generate cash and cash equivalents in the future, which to a certain extent, is subject to general economic, financial, competitive, regulatory and other conditions. Based on our current level of operations and planned capital expenditures, we believe that our existing cash and cash equivalents balances and expected cash flows generated from operations will be sufficient to meet our operating requirements over the next 12 months and beyond. We may require additional borrowings under our credit facilities and alternative forms of financings or investments to achieve our longer-term strategic plans.
Credit Facilities
On September 22, 2025, the Company entered into the Fourth Amendment to the Credit Agreement. The Fourth Amendment, among other things, (i) reduces the interest rate on the First Lien Term Loan from Term SOFR plus 2.25% to Term SOFR plus 1.75% and extends the maturity date to September 22, 2032, (ii) provides for an additional $49.6 million of incremental First Lien Term Loan indebtedness, and (iii) extends the maturity date of the Revolver Facility to September 22, 2030.
The principal balance of the First Lien Term Loan is repayable in quarterly installments of $1.7 million plus interest, with a final payment of all remaining outstanding principal due on September 22, 2032. Interest on the First Lien Term Loan is payable monthly on either (i) the SOFR plus an applicable margin of 1.75% for Term SOFR Loans; or (ii) a base rate, plus 0.75% for Base Rate Loans.
The Senior Notes bear interest at a rate of 4.375% per annum and are payable semi-annually in arrears on October 31 and April 30 of each year. The Senior Notes mature on October 31, 2029.
The Company’s Revolver Facility provides for borrowings up to $400.0 million. The Revolver Facility matures on the date that is the earlier of (i) September 22, 2030 and (ii) the date that is 91 days prior to the stated maturity date applicable to the Senior Notes to the extent any amount of the Senior Notes remains unpaid and outstanding as of the date that is 91 days prior to the stated maturity date applicable to the Senior Notes. Borrowings under the Revolver Facility will bear interest at a rate equal to, at the option of the Company, either (i) the Term SOFR applicable thereto plus the Applicable Rate or (ii) the then-applicable Base Rate plus the Applicable Rate, which Applicable Rate shall be, subject to certain caveats thereto, as follows (i) until delivery of financial statements and related Compliance Certificate for the first full fiscal quarter ending after the effective date of the First Lien Credit Agreement Amendment, (A) for Term SOFR Loans, 1.75%, or (B) for Base Rate Loans, 0.75% and (ii) thereafter, the Applicable Rate for Term SOFR Loans and Base Rate Loans, based upon the Total Net Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to the terms of the credit agreement. As of September 30, 2025, the Company had $4.0 million of undrawn letters of credit issued and outstanding, resulting in net borrowing availability under the Revolver Facility of $396.0 million.
Interest payments over the course of long-term debt obligations total an estimated $363.7 million based on final maturity dates of the Company’s credit facilities. Interest payments are calculated based on current rates as of September 30, 2025. Actual payments are based on changes in SOFR and exclude the interest rate cap derivative instrument.
Cash Flows
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
The following table presents selected data from Option Care Health’s unaudited condensed consolidated statements of cash flows:
in thousands
| Line item | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | Variance |
|---|---|---|---|
| Net cash provided by operating activities | $222,556 | $287,270 | $(64,714) |
| Net cash used in investing activities | (147,437) | (25,266) | (122,171) |
| Net cash used in financing activities | (177,862) | (122,827) | (55,035) |
| Net (decrease) increase in cash and cash equivalents | (102,743) | 139,177 | (241,920) |
| Cash and cash equivalents - beginning of period | 412,565 | 343,849 | 68,716 |
| Cash and cash equivalents - end of period | $309,822 | $483,026 | $(173,204) |
Cash Flows from Operating Activities
The decrease in cash provided by operating activities during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, was primarily due to a reduction in accounts payable, partially offset by increases in inventories, prepaid expenses, and accrued compensation and employee benefits.
Cash Flows from Investing Activities
The increase in cash used in investing activities during the nine months ended September 30, 2025 was primarily related to the Intramed Plus acquisition activity with no comparable activity during the nine months ended September 30, 2024.
Cash Flows from Financing Activities
The increase in cash used in financing activities was primarily related to the Company’s $214.9 million repurchase of common stock and related excise taxes during the nine months ended September 30, 2025, whereas the activity during the nine months ended September 30, 2024 was primarily related to the Company’s $160.1 million repurchase of common stock and related excise taxes.
Critical Accounting Policies and Estimates
The Company prepares its unaudited condensed consolidated financial statements in accordance with GAAP, which requires the Company to make estimates and assumptions. The Company evaluates its estimates and assumptions on an ongoing basis. Estimates and assumptions are based on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making assumptions about the carrying values of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period presented. The Company’s actual results may differ from these estimates, and different assumptions or conditions may yield different estimates.
There have been no material changes to the Company’s critical accounting policies and estimates as presented in our Form 10-K, which are hereby incorporated by reference.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
There have been no material changes to our exposure to market risk from those included in our Form 10-K, which is hereby incorporated by reference.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
The Company maintains disclosure controls and procedures (as such term is defined under Rule 13a-15(e) promulgated under the Exchange Act) that are designed to ensure that information required to be disclosed by the Company in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Under the supervision and with the participation of the Company’s management, including its Chief Executive Officer and Chief Financial Officer, management evaluated the effectiveness of the Company’s disclosure controls and procedures as of September 30, 2025. Based on that evaluation, the Company’s Chief Executive Officer and its Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2025.
Changes in Internal Controls over Financial Reporting
There were no changes in our internal control over financial reporting during the three months ended September 30, 2025 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
For a summary of legal proceedings, refer to Note 13, Commitments and Contingencies, of the unaudited condensed consolidated financial statements included in Item 1 of this Form 10-Q.
Item 1A. Risk Factors
There have been no material changes to the risk factors affecting our business, financial condition or results of operations from those set forth in Part I, Item 1A. “Risk Factors” in our Form 10-K. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our business, financial condition and/or operating results.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities
The Company’s Board of Directors approved a share repurchase program of up to an aggregate $500 million of common stock of the Company. This program has no specified expiration date.
The following table provides certain information with respect to the Company’s repurchases of common stock from July 1, 2025 through September 30, 2025:
| Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs |
|---|---|---|---|---|
| July 1, 2025 - July 31, 2025 | — | — | — | $350,000,914 |
| August 1, 2025 - August 31, 2025 | 485,768 | 28.31 | 485,768 | 336,249,232 |
| September 1, 2025 - September 30, 2025 | 1,719,767 | 28.32 | 1,719,767 | 287,543,218 |
| 2,205,535 | $28.32 | 2,205,535 | $287,543,218 |
Item 5. Other Information
Adoption, Modification and Termination of Rule 10b5-1 Plans and Certain Other Trading Arrangements
No director or officer of the Company has adopted, modified or terminated a Rule 10b5-1 plan or non-Rule 10b5-1 trading arrangement during the three months ended September 30, 2025.
Item 6. Exhibits
(a) Exhibits.
Exhibit Number Description
3.1 Fourth Amended and Restated Certificate of Incorporation of Option Care Health, Inc., effective as of May 15, 2025 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on May 16, 2025). 3.2 Amended and Restated By-Laws of Option Care Health, Inc., effective as of May 14, 2025 (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed on May 16, 2025). 10.1 Fourth Amendment to Amended and Restated First Lien Credit Agreement, dated as of September 22, 2025, by and among Option Care Health, Inc., a Delaware corporation, as borrower, each other Loan Party (as defined therein) party thereto, each 2025 Refinancing Term Lender (as defined therein) party thereto, each 2025 Incremental Term Lender (as defined therein), each Extending Revolving Credit Lender (as defined therein) and Bank of America, N.A., as administrative agent (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on September 25, 2025). 10.2 Employment Offer Letter, dated as of August 19, 2025, between Option Care Health, Inc. and Meenal A. Sethna (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on August 20, 2025). 10.3 Transition Agreement and Release, dated as of August 19, 2025, between Option Care Enterprises, Inc. and Michael Shapiro (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on August 20, 2025). 31.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 31.2 Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 32.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 32.2 Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 101.INS XBRL Instance Document 101.SCH XBRL Taxonomy Extension Schema Document 101.CAL XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF XBRL Taxonomy Extension Definition Linkbase Document 101.LAB XBRL Taxonomy Extension Labels Linkbase Document 101.PRE XBRL Taxonomy Extension Presentation Linkbase Document (104) XBRL Formatted Cover Page