What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-04-30 compared with 2025-10-30 · 62 added, 124 removed, 126 unchanged (60% of the section changed)

3 unchanged sentences

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, 2025 (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.

Option Care Health, and its wholly-owned subsidiaries, provide infusion therapy and other ancillary health care services through a national network of 87 full service pharmacies, including 73 with ambulatory infusion suites.

Additionally, the Company has 111 stand-alone ambulatory infusion suites, including 28 with advanced practitioner capabilities.

Our services are provided in coordination with, and under the direction of, the patient’s physician.

1 unchanged sentence

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.

Our national footprint enables us to collaborate with health systems and national payers to provide high quality care at an appropriate cost in a comfortable setting.

We have established key relationships that allow us access to local resources to ensure responsiveness to our patients’ needs.

At the center of everything we do is the patient.

This is the driving force behind all of our actions and the partnerships that we have across the healthcare ecosystem.

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.

The following results of operations include the accounts of Option Care Health and our subsidiaries for the three months ended March 31, 2026 and 2025.

Gross profit represents our net revenue less cost of revenue.

18 unchanged sentences

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.

Interest expense consists principally of interest and fee 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.

1 unchanged sentence

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 (expense) income primarily includes activity related to non-operating income and expenses.

Other income (expense) primarily includes activity related to non-operating income and expenses.

Income Tax Expense .

4 unchanged sentences

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):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Amount % of Revenue Amount % of Revenue Amount % of Revenue Amount % of Revenue

The following table presents Option Care Health’s consolidated results of operations for the three months ended March 31, 2026 and 2025 (in thousands, except for percentages):

Three Months Ended March 31,

Amount % of Revenue Amount % of Revenue

NET REVENUE $ 1,350,654 100.0 % $ 1,332,972 100.0 %

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NET COMPREHENSIVE INCOME $ 44,611 3.3 % $ 44,344 3.3 %

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.

Three Months Ended September 30,

2025 2024 Variance

(in thousands, except for percentages)

Net revenue $ 1,435,016 $ 1,278,546 $ 156,470 12.2 %

Cost of revenue 1,162,114 1,021,797 140,317 13.7 %

Gross profit $ 272,902 $ 256,749 $ 16,153 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

Three Months Ended September 30,

2025 2024 Variance

(in thousands, except for percentages)

Selling, general and administrative expenses $ 172,104 $ 156,999 $ 15,105 9.6 %

Depreciation and amortization expense 16,291 14,659 1,632 11.1 %

Total operating expenses $ 188,395 $ 171,658 $ 16,737 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)

Three Months Ended September 30,

2025 2024 Variance

(in thousands, except for percentages)

Interest expense, net $ (14,146) $ (12,345) $ (1,801) 14.6 %

Equity in earnings of joint ventures 2,176 1,391 785 56.4 %

Other, net (3,570) (583) (2,987) NM (1)

Total other (expense) income $ (15,540) $ (11,537) $ (4,003) 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

Three Months Ended September 30,

2025 2024 Variance

(in thousands, except for percentages)

Income tax expense $ 17,151 $ 19,698 $ (2,547) (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)

Three Months Ended September 30,

2025 2024 Variance

(in thousands, except for percentages)

Net income $ 51,816 $ 53,856 $ (2,040) (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) 4,664 (76.1) %

Other comprehensive (loss) income (1,463) (6,127) 4,664 (76.1) %

Net comprehensive income $ 50,353 $ 47,729 $ 2,624 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

Nine Months Ended September 30,

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

Three Months Ended March 31,

2026 2025 Variance

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Gross profit margin 19.4 % 19.7 %

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.

The increase in net revenue was primarily driven by high single-digit growth in the Company’s acute portfolio of therapies, while the chronic portfolio of therapies were down slightly compared to prior year.

Acute growth was driven by a focus on maintaining referral source and payer relationships along with strong partnerships with hospitals and health systems.

The chronic portfolio revenue was primarily impacted by shifts within the chronic inflammatory disease (“CID”) portfolio, related to increased patient attrition and unfavorable therapy mix, as well as slower than expected growth of certain other specialty therapies.

Management now expects the CID dynamics to negatively impact gross profit by approximately $55 million in 2026.

The increase in cost of revenue was primarily driven by the growth in revenue and therapy mix, while the decrease in gross profit margin was primarily due to headwinds on the CID portfolio.

Operating Expenses

Nine Months Ended September 30,

Three Months Ended March 31,

2026 2025 Variance

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Total operating expenses $ 189,469 $ 183,864 $ 5,605 3.0 %

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.

The increase in selling, general and administrative expenses during the three months ended March 31, 2026 was primarily due to investment in internal resources, technology, and other general costs to support both ongoing business needs as well as future business growth.

The Company anticipates these investments will drive revenue growth and enhance profitability and cash generation over time.

Other Income (Expense)

Nine Months Ended September 30,

Three Months Ended March 31,

2026 2025 Variance

5 unchanged sentences

(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.

The change in Other, net was primarily attributable to prior year accruals related to an abandoned or unclaimed property voluntary disclosure agreement (“VDA”) program with no comparable accruals in the current period.

This VDA is 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.

As of March 31, 2026, the matters related to this program are ongoing.

Income Tax Expense

Nine Months Ended September 30,

Three Months Ended March 31,

2026 2025 Variance

1 unchanged sentence

Income tax expense $ 15,660 $ 16,814 $ (1,154) (6.9) %

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)

Nine Months Ended September 30,

The Company recorded income tax expense of $15.7 million and $16.8 million for the three months ended March 31, 2026 and 2025, respectively, which represents an effective tax rate of 25.7% and 26.5%, respectively.

The variance in the Company’s effective tax rate of 25.7% and 26.5% for the three months ended March 31, 2026 and 2025, respectively, compared to the federal statutory rate of 21%, as well as year-over-year changes, was primarily attributable to state taxes in multiple jurisdictions and various non-deductible expenses.

Net Income and Other Comprehensive (Loss) Income

Three Months Ended March 31,

2026 2025 Variance

2 unchanged sentences

Other comprehensive income (loss), net of tax:

Changes in unrealized (loss) gain on cash flow hedges, net of income taxes (5,545) (5,475) (70) NM (1)

Other comprehensive (loss) income (5,545) (5,475) (70) NM (1)

Change in unrealized (loss) gain on cash flow hedges, net of income taxes (732) (2,398) 1,666 (69.5) %

Other comprehensive (loss) income (732) (2,398) 1,666 (69.5) %

Net comprehensive income $ 44,611 $ 44,344 $ 267 0.6 %

(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.

For the three months ended March 31, 2026 and 2025, 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 $44.6 million for the three months ended March 31, 2026, compared to net comprehensive income of $44.3 million for the three months ended March 31, 2025, 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).

For the three months ended March 31, 2026 and the twelve months ended December 31, 2025, the Company’s primary sources of liquidity were cash and cash equivalents of $177.3 million and $232.6 million, respectively.

On March 30, 2026, the Company entered into the Fifth Amendment to the amended and restated Credit Agreement dated as of October 27, 2021.

The Fifth Amendment, among other things, increases the Revolver Facility by $450.0 million, resulting in an aggregate capacity amount of $850.0 million.

As of March 31, 2026, the Company had $846.0 million of borrowings available under its credit facilities (net of $4.0 million undrawn letters of credit issued and outstanding).

As of December 31, 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).

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.

During the three months ended March 31, 2026 and 2025, the Company’s cash flows from operations have been invested in pharmacies, infusion suites, and information technology infrastructure to support growth and create additional capacity in the future, as well as the pursuit of acquisitions and the periodic repurchases of Company shares.

The Company’s primary uses of cash and cash equivalents include supporting our ongoing business activities, internal investment in resources to support future growth, investment in capital expenditures in both facilities and technology, the pursuit of acquisitions, and the pursuit of share repurchases.

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.

Ongoing financing cash flows are primarily associated with the quarterly principal payments on our outstanding debt, along with potential future repurchases of Company shares.

Our business strategy includes strategic deployment of capital to internal investments in resources, infrastructure, and technologies to support future growth, the pursuit of strategic tuck-in and adjacent acquisitions that complement our existing operations and the periodic repurchases of Company shares.

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 has historically 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.

2 unchanged sentences

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.

Based on our current level of operations and planned capital expenditures, we believe that our existing cash and cash equivalents balances, expected cash flows generated from operations, and availability under our credit facility 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.

On March 30, 2026, the Company entered into the Fifth Amendment to the Credit Agreement.

The Fifth Amendment, among other things, increases the existing Revolver Facility by $450.0 million, resulting in an aggregate capacity amount of $850.0 million.

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;

Interest on the First Lien Term Loan is payable monthly on either (i) the Secured Overnight Financing Rate (“SOFR”) plus an applicable margin of 1.75% for Term SOFR Loans;

or (ii) a base rate, plus 0.75% for Base Rate Loans.

3 unchanged sentences

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.

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 fourth amendment to the Credit Agreement, (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 such terms are defined in the Credit Agreement).

As of March 31, 2026, the Company had $4.0 million of undrawn letters of credit issued and outstanding, resulting in net borrowing availability under the Revolver Facility of $846.0 million.

Interest payments over the course of long-term debt obligations total an estimated $312.3 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.

Interest payments are calculated based on current rates as of March 31, 2026.

Actual payments are based on changes in SOFR and exclude the interest rate cap derivative instrument.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

The following table presents selected data from Option Care Health’s unaudited condensed consolidated statements of cash flows:

Nine Months Ended September 30,

Three Months Ended March 31,

2026 2025 Variance

(in thousands)

Net cash provided by operating activities $ 222,556 $ 287,270 $ (64,714)

Net cash used in operating activities $ (12,110) $ (7,214) $ (4,896)

Net cash used in investing activities (9,320) (126,693) 117,373

Net cash used in financing activities (33,873) (107,286) 73,413

Net (decrease) increase in cash and cash equivalents (102,743) 139,177 (241,920)

Net decrease in cash and cash equivalents (55,303) (241,193) 185,890

Cash and cash equivalents - beginning of period 232,624 412,565 (179,941)

1 unchanged sentence

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.

The increase in cash used in operating activities during the three months ended March 31, 2026 was primarily due to decreases in accounts payable due to the timing of vendor payments and accrued compensation and employee benefits due to annual variable incentive compensation payments, which increased over the prior year based on growth and Company performance compared to target goals.

The change was also driven by an increase in accounts receivable driven by administrative efforts focused on annual reverification of patients’ insurance coverage and deductible resets, partially offset by a decrease in inventory due to focused efforts on supply chain management.

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.

The decrease in cash used in investing activities during the three months ended March 31, 2026 was primarily related to the Intramed Plus acquisition made during the three months ended March 31, 2025 with no comparable activity during the three months ended March 31, 2026.

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.

The decrease in cash used in financing activities was primarily related to the Company’s $17.5 million repurchase of common stock during the three months ended March 31, 2026, compared to the Company’s $100.0 million repurchase of common stock during the three months ended March 31, 2025.

Critical Accounting Policies and Estimates

7 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis