Option Care Health - 10-Q quarterly report FY2026 Q2

000101473912/312026Q2FALSEhttp://fasb.org/us-gaap/2026#PrepaidExpenseAndOtherAssetsCurrenthttp://fasb.org/us-gaap/2026#PrepaidExpenseAndOtherAssetsCurrentxbrli:sharesiso4217:USDiso4217:USDxbrli:sharesbios:pharmacybios:suitebios:segmentxbrli:pure00010147392026-01-012026-06-3000010147392026-07-2700010147392026-06-3000010147392025-12-3100010147392026-04-012026-06-3000010147392025-04-012025-06-3000010147392025-01-012025-06-3000010147392024-12-3100010147392025-06-300001014739us-gaap:PreferredStockMember2024-12-310001014739us-gaap:CommonStockMember2024-12-310001014739us-gaap:TreasuryStockCommonMember2024-12-310001014739us-gaap:AdditionalPaidInCapitalMember2024-12-310001014739us-gaap:RetainedEarningsMember2024-12-310001014739us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310001014739us-gaap:AdditionalPaidInCapitalMember2025-01-012025-03-3100010147392025-01-012025-03-310001014739us-gaap:TreasuryStockCommonMember2025-01-012025-03-310001014739us-gaap:RetainedEarningsMember2025-01-012025-03-310001014739us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-03-310001014739us-gaap:PreferredStockMember2025-03-310001014739us-gaap:CommonStockMember2025-03-310001014739us-gaap:TreasuryStockCommonMember2025-03-310001014739us-gaap:AdditionalPaidInCapitalMember2025-03-310001014739us-gaap:RetainedEarningsMember2025-03-310001014739us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-03-3100010147392025-03-310001014739us-gaap:AdditionalPaidInCapitalMember2025-04-012025-06-300001014739us-gaap:TreasuryStockCommonMember2025-04-012025-06-300001014739us-gaap:RetainedEarningsMember2025-04-012025-06-300001014739us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-04-012025-06-300001014739us-gaap:PreferredStockMember2025-06-300001014739us-gaap:CommonStockMember2025-06-300001014739us-gaap:TreasuryStockCommonMember2025-06-300001014739us-gaap:AdditionalPaidInCapitalMember2025-06-300001014739us-gaap:RetainedEarningsMember2025-06-300001014739us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-300001014739us-gaap:PreferredStockMember2025-12-310001014739us-gaap:CommonStockMember2025-12-310001014739us-gaap:TreasuryStockCommonMember2025-12-310001014739us-gaap:AdditionalPaidInCapitalMember2025-12-310001014739us-gaap:RetainedEarningsMember2025-12-310001014739us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-12-310001014739us-gaap:AdditionalPaidInCapitalMember2026-01-012026-03-3100010147392026-01-012026-03-310001014739us-gaap:TreasuryStockCommonMember2026-01-012026-03-310001014739us-gaap:RetainedEarningsMember2026-01-012026-03-310001014739us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-01-012026-03-310001014739us-gaap:PreferredStockMember2026-03-310001014739us-gaap:CommonStockMember2026-03-310001014739us-gaap:TreasuryStockCommonMember2026-03-310001014739us-gaap:AdditionalPaidInCapitalMember2026-03-310001014739us-gaap:RetainedEarningsMember2026-03-310001014739us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-03-3100010147392026-03-310001014739us-gaap:AdditionalPaidInCapitalMember2026-04-012026-06-300001014739us-gaap:TreasuryStockCommonMember2026-04-012026-06-300001014739us-gaap:RetainedEarningsMember2026-04-012026-06-300001014739us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-04-012026-06-300001014739us-gaap:PreferredStockMember2026-06-300001014739us-gaap:CommonStockMember2026-06-300001014739us-gaap:TreasuryStockCommonMember2026-06-300001014739us-gaap:AdditionalPaidInCapitalMember2026-06-300001014739us-gaap:RetainedEarningsMember2026-06-300001014739us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-06-300001014739bios:LegacyHealthSystemsMember2026-06-300001014739us-gaap:CorporateJointVentureMember2026-04-012026-06-300001014739us-gaap:CorporateJointVentureMember2026-01-012026-06-300001014739us-gaap:CorporateJointVentureMember2025-04-012025-06-300001014739us-gaap:CorporateJointVentureMember2025-01-012025-06-300001014739us-gaap:CustomerConcentrationRiskMemberbios:LargestPayerMemberus-gaap:RevenueFromContractWithCustomerMember2026-04-012026-06-300001014739us-gaap:CustomerConcentrationRiskMemberbios:LargestPayerMemberus-gaap:RevenueFromContractWithCustomerMember2026-01-012026-06-300001014739us-gaap:CustomerConcentrationRiskMemberbios:LargestPayerMemberus-gaap:RevenueFromContractWithCustomerMember2025-04-012025-06-300001014739us-gaap:CustomerConcentrationRiskMemberbios:LargestPayerMemberus-gaap:RevenueFromContractWithCustomerMember2025-01-012025-06-300001014739bios:GovernmentHealthcareProgramsMemberus-gaap:GovernmentContractsConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2026-01-012026-06-300001014739bios:GovernmentHealthcareProgramsMemberus-gaap:GovernmentContractsConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2026-04-012026-06-300001014739bios:GovernmentHealthcareProgramsMemberus-gaap:GovernmentContractsConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-04-012025-06-300001014739bios:GovernmentHealthcareProgramsMemberus-gaap:GovernmentContractsConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2025-01-012025-06-300001014739bios:GovernmentHealthcareProgramsMemberus-gaap:GovernmentContractsConcentrationRiskMemberbios:AccountsReceivableBenchmarkMember2026-01-012026-06-300001014739bios:GovernmentHealthcareProgramsMemberus-gaap:GovernmentContractsConcentrationRiskMemberbios:AccountsReceivableBenchmarkMember2025-01-012025-12-310001014739us-gaap:SupplierConcentrationRiskMemberus-gaap:CostOfGoodsProductLineMemberbios:FourVendorsMember2026-04-012026-06-300001014739us-gaap:SupplierConcentrationRiskMemberus-gaap:CostOfGoodsProductLineMemberbios:FourVendorsMember2026-01-012026-06-300001014739us-gaap:SupplierConcentrationRiskMemberus-gaap:CostOfGoodsProductLineMemberbios:FourVendorsMember2025-04-012025-06-300001014739us-gaap:SupplierConcentrationRiskMemberus-gaap:CostOfGoodsProductLineMemberbios:FourVendorsMember2025-01-012025-06-300001014739bios:IntramedPlusIncMember2025-01-240001014739bios:IntramedPlusIncMember2025-01-242025-01-240001014739bios:IntramedPlusIncMemberbios:ReferralSourcesMember2025-01-240001014739bios:IntramedPlusIncMemberus-gaap:TrademarksAndTradeNamesMember2025-01-240001014739bios:IntramedPlusIncMemberbios:ReferralSourcesMember2025-01-242025-01-240001014739bios:IntramedPlusIncMemberus-gaap:TrademarksAndTradeNamesMember2025-01-242025-01-240001014739bios:CommercialCustomerMember2026-04-012026-06-300001014739bios:CommercialCustomerMember2025-04-012025-06-300001014739bios:CommercialCustomerMember2026-01-012026-06-300001014739bios:CommercialCustomerMember2025-01-012025-06-300001014739bios:GovernmentCustomerMember2026-04-012026-06-300001014739bios:GovernmentCustomerMember2025-04-012025-06-300001014739bios:GovernmentCustomerMember2026-01-012026-06-300001014739bios:GovernmentCustomerMember2025-01-012025-06-300001014739bios:PatientCustomerMember2026-04-012026-06-300001014739bios:PatientCustomerMember2025-04-012025-06-300001014739bios:PatientCustomerMember2026-01-012026-06-300001014739bios:PatientCustomerMember2025-01-012025-06-300001014739us-gaap:StockOptionMember2026-04-012026-06-300001014739us-gaap:StockOptionMember2025-04-012025-06-300001014739us-gaap:StockOptionMember2026-01-012026-06-300001014739us-gaap:StockOptionMember2025-01-012025-06-300001014739bios:RestrictedStockAwardMember2026-04-012026-06-300001014739bios:RestrictedStockAwardMember2025-04-012025-06-300001014739bios:RestrictedStockAwardMember2026-01-012026-06-300001014739bios:RestrictedStockAwardMember2025-01-012025-06-300001014739bios:PerformanceStockUnitMember2026-04-012026-06-300001014739bios:PerformanceStockUnitMember2025-04-012025-06-300001014739bios:PerformanceStockUnitMember2026-01-012026-06-300001014739bios:PerformanceStockUnitMember2025-01-012025-06-300001014739bios:InfusionPumpsMember2026-06-300001014739bios:InfusionPumpsMember2025-12-310001014739bios:EquipmentFurnitureAndOtherMember2026-06-300001014739bios:EquipmentFurnitureAndOtherMember2025-12-310001014739us-gaap:LeaseholdImprovementsMember2026-06-300001014739us-gaap:LeaseholdImprovementsMember2025-12-310001014739us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2026-06-300001014739us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2025-12-310001014739us-gaap:AssetUnderConstructionMember2026-06-300001014739us-gaap:AssetUnderConstructionMember2025-12-310001014739us-gaap:CostOfGoodsAndServicesSold2026-04-012026-06-300001014739us-gaap:CostOfGoodsAndServicesSold2025-04-012025-06-300001014739us-gaap:CostOfGoodsAndServicesSold2026-01-012026-06-300001014739us-gaap:CostOfGoodsAndServicesSold2025-01-012025-06-300001014739us-gaap:OperatingExpenses2026-04-012026-06-300001014739us-gaap:OperatingExpenses2025-04-012025-06-300001014739us-gaap:OperatingExpenses2026-01-012026-06-300001014739us-gaap:OperatingExpenses2025-01-012025-06-300001014739us-gaap:CustomerListsMember2026-06-300001014739us-gaap:CustomerListsMember2025-12-310001014739us-gaap:TrademarksAndTradeNamesMember2026-06-300001014739us-gaap:TrademarksAndTradeNamesMember2025-12-310001014739us-gaap:OtherIntangibleAssetsMember2026-06-300001014739us-gaap:OtherIntangibleAssetsMember2025-12-310001014739us-gaap:SeniorNotesMemberus-gaap:RevolvingCreditFacilityMember2026-06-300001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMember2026-06-300001014739us-gaap:SeniorNotesMemberbios:SecondLienTermLoanMember2026-06-300001014739us-gaap:SeniorNotesMemberus-gaap:RevolvingCreditFacilityMember2025-12-310001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMember2025-12-310001014739us-gaap:SeniorNotesMemberbios:SecondLienTermLoanMember2025-12-310001014739us-gaap:SeniorNotesMemberbios:FirstLienCreditAgreementFifthAmendmentMemberus-gaap:SeniorLienMember2026-03-302026-03-300001014739us-gaap:SeniorNotesMemberbios:FirstLienCreditAgreementFifthAmendmentMemberus-gaap:SeniorLienMember2026-03-300001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:SeniorLienMember2026-06-300001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:SeniorLienMember2025-12-310001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:SeniorLienMember2026-04-012026-06-300001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:SeniorLienMember2026-01-012026-06-300001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:SeniorLienMember2025-04-012025-06-300001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:SeniorLienMember2025-01-012025-06-300001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:JuniorLienMember2025-12-310001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:JuniorLienMember2026-06-300001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:JuniorLienMember2025-04-012025-06-300001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:JuniorLienMember2025-01-012025-06-300001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:JuniorLienMember2026-01-012026-06-300001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:JuniorLienMember2026-04-012026-06-300001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:RevolvingCreditFacilityMember2026-06-300001014739us-gaap:SeniorNotesMemberbios:SecondLienCreditAgreementMemberMemberus-gaap:RevolvingCreditFacilityMember2026-06-300001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:FairValueInputsLevel1Member2026-06-300001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:FairValueInputsLevel2Member2026-06-300001014739us-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:FairValueInputsLevel3Member2026-06-300001014739us-gaap:SeniorNotesMember2026-06-300001014739us-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel1Member2026-06-300001014739us-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel2Member2026-06-300001014739us-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel3Member2026-06-300001014739us-gaap:FairValueInputsLevel1Member2026-06-300001014739us-gaap:FairValueInputsLevel2Member2026-06-300001014739us-gaap:FairValueInputsLevel3Member2026-06-300001014739us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:InterestRateCapMember2021-10-310001014739us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:SeniorNotesMemberbios:FirstLienTermLoanMemberus-gaap:InterestRateCapMember2021-10-012021-10-310001014739us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMember2026-06-300001014739us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMember2025-12-310001014739us-gaap:InterestRateCapMember2026-04-012026-06-300001014739us-gaap:InterestRateCapMember2025-04-012025-06-300001014739us-gaap:InterestRateCapMember2026-01-012026-06-300001014739us-gaap:InterestRateCapMember2025-01-012025-06-300001014739bios:A2018PlanMember2021-05-310001014739bios:A2018PlanMember2024-05-012024-05-3100010147392024-05-310001014739bios:A2018PlanMemberbios:HCIIncentiveUnitsMember2026-04-012026-06-300001014739bios:A2018PlanMemberbios:HCIIncentiveUnitsMember2026-01-012026-06-300001014739bios:A2018PlanMemberbios:HCIIncentiveUnitsMember2025-04-012025-06-300001014739bios:A2018PlanMemberbios:HCIIncentiveUnitsMember2025-01-012025-06-300001014739bios:CommonStockRepurchaseProgramMember2025-12-310001014739bios:CommonStockRepurchaseProgramMember2026-01-310001014739us-gaap:CommonStockMember2026-01-012026-03-310001014739us-gaap:CommonStockMember2025-01-012025-03-310001014739us-gaap:CommonStockMember2026-04-012026-06-300001014739us-gaap:CommonStockMember2025-04-012025-06-300001014739us-gaap:CorporateJointVentureMember2026-06-300001014739us-gaap:CorporateJointVentureMember2025-12-310001014739bios:ReportableSegmentMember2026-04-012026-06-300001014739bios:ReportableSegmentMember2025-04-012025-06-300001014739bios:ReportableSegmentMember2026-01-012026-06-300001014739bios:ReportableSegmentMember2025-01-012025-06-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


(Mark One)
☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the quarterly period ended June 30, 2026
			OR
☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from to

Commission file number: 001-11993

OPTION CARE HEALTH, INC.

(Exact name of registrant as specified in its charter)


Delaware						05-0489664
(State of incorporation)						(I.R.S. Employer Identification No.)
3000 Lakeside Dr. Suite 300N, Bannockburn, IL						60015
(Address of principal executive offices)						(Zip Code)

Registrant’s telephone number, including area code:

312-940-2443

Securities registered pursuant to Section 12(b) of the Act:


Title of each Class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value per share	OPCH	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

On July 27, 2026, there were 149,785,243 shares of the registrant’s Common Stock outstanding.

TABLE OF CONTENTS

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.

Forward-Looking Statements

This Form 10-Q includes forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including, without limitation, statements concerning our expectations regarding industry and macroeconomic trends and our operating performance. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “estimate,” “expect,” “may,” “should,” “will” and similar references to future periods.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. If any of these risks materialize, or if any of the assumptions underlying forward-looking statements prove incorrect, actual results and developments may differ materially from those made in or suggested by the forward-looking statements contained in this Form 10-Q. Important factors that could cause the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, those set forth 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”) filed with the U.S. Securities and Exchange Commission (the “SEC”). Although the Company has attempted to identify important risk factors, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could cause actual results and developments to differ materially from those made in or suggested by the forward-looking statements contained in this Form 10-Q. The Company cautions you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this Form 10-Q. Any forward-looking statement made by the Company in this Form 10-Q speaks only as of the date hereof. The Company undertakes no obligation to publicly update or to revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Table of Contents

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements

Table of Contents

OPTION CARE HEALTH, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS)


	June 30, 2026		December 31, 2025
	(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	193,767	$	232,624
Accounts receivable, net	511,507		473,566
Inventories	399,605		471,149
Prepaid expenses and other current assets	95,713		87,629
Total current assets	1,200,592		1,264,968

NONCURRENT ASSETS:
Property and equipment, net	140,408		139,236
Operating lease right-of-use asset	89,351		91,250
Intangible assets, net	20,229		21,897
Referral sources, net	270,410		287,281
Goodwill	1,606,743		1,606,743
Other noncurrent assets	51,044		44,394
Total noncurrent assets	2,178,185		2,190,801
TOTAL ASSETS	$	3,378,777	$	3,455,769

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	639,767	$	639,829
Accrued compensation and employee benefits	66,226		70,414
Accrued expenses and other current liabilities	83,615		88,329
Current portion of operating lease liability	23,089		23,996
Current portion of long-term debt	6,780		6,780
Total current liabilities	819,477		829,348

NONCURRENT LIABILITIES:
Long-term debt, net of discount, deferred financing costs and current portion	1,152,040		1,154,052
Operating lease liability, net of current portion	86,170		88,519
Deferred income taxes	58,920		56,019
Other noncurrent liabilities	2,272		1,438
Total noncurrent liabilities	1,299,402		1,300,028
Total liabilities	2,118,879		2,129,376

STOCKHOLDERS’ EQUITY:
Preferred stock; $0.0001 par value; 12,500,000 shares authorized, no shares outstanding as of June 30, 2026 and December 31, 2025	—		—
Common stock; $0.0001 par value: 250,000,000 shares authorized, 185,321,928 shares issued and 149,777,268 shares outstanding as of June 30, 2026; 184,522,423 shares issued and 156,857,801 shares outstanding as of December 31, 2025	18		18
Treasury stock; 35,544,660 and 27,664,622 shares outstanding, at cost, as of June 30, 2026 and December 31, 2025, respectively	(987,296)		(818,201)
Paid-in capital	1,268,767		1,263,549
Retained earnings	976,177		876,921
Accumulated other comprehensive income (loss)	2,232		4,106
Total stockholders’ equity	1,259,898		1,326,393
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,378,777	$	3,455,769

The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these statements.

Table of Contents

OPTION CARE HEALTH, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
NET REVENUE	$	1,442,400	$	1,416,085	$	2,793,054	$	2,749,057
COST OF REVENUE	1,175,149		1,147,042		2,263,789		2,216,962
GROSS PROFIT	267,251		269,043		529,265		532,095

OPERATING COSTS AND EXPENSES:
Selling, general and administrative expenses	164,659		170,092		339,221		338,210
Depreciation and amortization expense	17,452		16,241		32,359		31,987
Total operating expenses	182,111		186,333		371,580		370,197
OPERATING INCOME	85,140		82,710		157,685		161,898

OTHER INCOME (EXPENSE):
Interest expense, net	(14,020)		(14,447)		(27,324)		(27,678)
Equity in earnings of joint ventures	1,704		1,395		3,393		3,124
Other, net	1,163		(797)		1,236		(4,927)
Total other (expense) income	(11,153)		(13,849)		(22,695)		(29,481)

INCOME BEFORE INCOME TAXES	73,987		68,861		134,990		132,417
INCOME TAX EXPENSE	20,074		18,338		35,734		35,152
NET INCOME	$	53,913	$	50,523	$	99,256	$	97,265

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Change in unrealized (loss) gain on cash flow hedges, net of income tax benefit (expense) of $374, $548, $613 and $1,331, respectively	$	(1,142)	$	(1,684)	$	(1,874)	$	(4,082)
OTHER COMPREHENSIVE (LOSS) INCOME	(1,142)		(1,684)		(1,874)		(4,082)
NET COMPREHENSIVE INCOME	$	52,771	$	48,839	$	97,382	$	93,183

EARNINGS PER COMMON SHARE:
Earnings per share, basic	$	0.35	$	0.31	$	0.64	$	0.59
Earnings per share, diluted	$	0.35	$	0.31	$	0.64	$	0.59

Weighted average common shares outstanding, basic	152,931		162,931		154,782		164,188
Weighted average common shares outstanding, diluted	153,485		164,133		155,772		165,402

The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these statements.

Table of Contents

OPTION CARE HEALTH, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)


	Six Months Ended June 30,
	2026		2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	99,256	$	97,265
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	34,037		33,326
Non-cash operating lease costs	10,187		14,663
Deferred income taxes, net	2,901		1,634
Amortization of deferred financing costs	1,378		2,315
Equity in earnings of joint ventures	(3,393)		(3,124)
Stock-based incentive compensation expense	18,581		19,513
Distribution from equity method investments	1,100		1,600
Other adjustments	781		(744)
Changes in operating assets and liabilities:
Accounts receivable, net	(37,941)		(61,392)
Inventories	71,544		(12,718)
Prepaid expenses and other current assets	(9,958)		17,606
Accounts payable	2,610		(27,904)
Accrued compensation and employee benefits	(4,188)		8,730
Accrued expenses and other current liabilities	(3,264)		3,852
Operating lease liabilities	(11,544)		(12,603)
Other noncurrent assets and liabilities	(602)		1,100
Net cash provided by operating activities	171,485		83,119

CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(20,123)		(18,466)
Business acquisitions, net of cash acquired	—		(117,247)
Other investing activities	(877)		—
Net cash used in investing activities	(21,000)		(135,713)

CASH FLOWS FROM FINANCING ACTIVITIES:
Stock-based compensation tax withholdings	(14,285)		(7,900)
Purchase of company stock and related excise taxes	(170,545)		(152,429)
Repayments of debt principal	(3,390)		(3,255)
Deferred financing costs	(2,044)		—
Other financing activities	922		2,431
Net cash used in financing activities	(189,342)		(161,153)

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(38,857)		(213,747)
Cash and cash equivalents - beginning of period	232,624		412,565
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	193,767	$	198,818

Supplemental disclosure of cash flow information:
Cash paid for interest	$	30,377	$	32,526
Cash paid for income taxes	$	34,306	$	39,436
Cash paid for operating leases	$	16,160	$	15,107

The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these statements.

Table of Contents

OPTION CARE HEALTH, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(IN THOUSANDS)


	Preferred Stock		Common Stock		Treasury Stock		Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
Balance - December 31, 2024	$	—	$	18	$	(507,598)	$	1,231,435	$	669,336	$	11,047	$	1,404,238
Exercise of stock options, vesting of restricted stock, and related tax withholdings	—		—		—		(5,436)		—		—		(5,436)
Stock-based incentive compensation	—		—		—		8,801		—		—		8,801
Purchase of company stock, and related tax effects	—		—		(101,113)		—		—		—		(101,113)
Net income	—		—		—		—		46,742		—		46,742
Other comprehensive loss	—		—		—		—		—		(2,398)		(2,398)
Balance - March 31, 2025	$	—	$	18	$	(608,711)	$	1,234,800	$	716,078	$	8,649	$	1,350,834
Exercise of stock options, vesting of restricted stock, and related tax withholdings	—		—		—		(33)		—		—		(33)
Stock-based incentive compensation	—		—		—		10,712		—		—		10,712
Purchase of company stock, and related tax effects	—		—		(50,404)		—		—		—		(50,404)
Net income	—		—		—		—		50,523		—		50,523
Other comprehensive loss	—		—		—		—		—		(1,684)		(1,684)
Balance - June 30, 2025	$	—	$	18	$	(659,115)	$	1,245,479	$	766,601	$	6,965	$	1,359,948

Balance - December 31, 2025	$	—	$	18	$	(818,201)	$	1,263,549	$	876,921	$	4,106	$	1,326,393
Exercise of stock options, vesting of restricted stock, and related tax withholdings	—		—		—		(12,595)		—		—		(12,595)
Stock-based incentive compensation	—		—		—		10,199		—		—		10,199
Purchase of company stock, and related tax effects	—		—		(17,539)		—		—		—		(17,539)
Net income	—		—		—		—		45,343		—		45,343
Other comprehensive loss	—		—		—		—		—		(732)		(732)
Balance - March 31, 2026	$	—	$	18	$	(835,740)	$	1,261,153	$	922,264	$	3,374	$	1,351,069
Exercise of stock options, vesting of restricted stock, and related tax withholdings	—		—		—		(768)		—		—		(768)
Stock-based incentive compensation	—		—		—		8,382		—		—		8,382
Purchase of company stock, and related tax effects	—		—		(151,556)		—		—		—		(151,556)
Net income	—		—		—		—		53,913		—		53,913
Other comprehensive loss	—		—		—		—		—		(1,142)		(1,142)
Balance - June 30, 2026	$	—	$	18	$	(987,296)	$	1,268,767	$	976,177	$	2,232	$	1,259,898

The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these statements.

Table of Contents

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 health care services through a national network of 86 full service pharmacies and 187 ambulatory infusion suites, including 32 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 one segment, infusion services. The Company’s stock is listed on the Nasdaq Global Select Market under the stock ticker OPCH.

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 2025 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.

Table of Contents

2. 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 June 30, 2026, cash equivalents consisted of money market funds.

Accounts Receivable — The Company’s accounts receivable are reported at the net realizable value that reflects the consideration the Company expects to receive in exchange for providing services, which is inclusive of adjustments for price concessions. The majority of accounts receivable are due from commercial payers.

Included in accounts receivable are earned but unbilled gross receivables of $154.9 million and $155.1 million as of June 30, 2026 and December 31, 2025, respectively. As revenue and the associated receivable are recognized upon delivery of the goods, there may be delays between delivery and therapy administration. Billings often occur after therapy administration. Subsequent billing delays can range from one day up to several weeks due to the timing of therapy administration, the timing of obtaining certain required payer-specific documentation from internal and external sources, and payer-specific billing requirements which may delay billing until therapy completion.

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 $37.7 million and $35.3 million as of June 30, 2026 and December 31, 2025, 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 June 30, 2026 and December 31, 2025, the balance of the investments was $30.2 million and $27.9 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 $1.7 million and $3.4 million for the three and six months ended June 30, 2026, respectively. The Company’s proportionate share of earnings was $1.4 million and $3.1 million for the three and six months ended June 30, 2025, 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 six months ended June 30, 2026, the Company received distributions from the investees of $1.1 million. During the three and six months ended June 30, 2025, the Company received distributions from the investees of $1.6 million. 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 six months ended June 30, 2026. Revenue related to the Company’s largest payer was approximately 15% for the three and six months ended June 30, 2025. There were no other managed care contracts that represent greater than 10% of revenue for the periods presented.

For the three and six months ended June 30, 2026, approximately 13% of the Company’s revenue was reimbursable through direct government healthcare programs, such as Medicare and Medicaid. For the three and six months ended June 30, 2025, approximately 12% of the Company’s revenue was reimbursable through direct government healthcare programs, such as Medicare and Medicaid. As of June 30, 2026 and December 31, 2025, approximately 13% 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, concentrations of credit risk relating to trade accounts receivable are 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 six months ended June 30, 2026, approximately 57% of the Company’s pharmaceutical and medical supply purchases were from three vendors. For the three months ended June 30, 2025, approximately 59% of the Company’s pharmaceutical and medical supply purchases were from three vendors. For the six months ended June 30, 2025, approximately 67% of the Company’s pharmaceutical and medical supply purchases were from four vendors. Most of the pharmaceutical and

medical supplies that we purchase are available from multiple distributors, and the Company believes they are available in sufficient quantities to meet the needs of the Company and its patients. 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.

Table of Contents

3. 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. The following is a final allocation of the consideration transferred to acquired identifiable assets and assumed liabilities, net of cash acquired, (in thousands):


	Amount
Accounts receivable, net	$	9,240
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	50,750
Goodwill (2)	66,497
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.

Table of Contents

4. REVENUE

The following table sets forth the net revenue earned by category of payer for the three and six months ended June 30, 2026 and 2025 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Commercial payers	$	1,236,570	$	1,231,660	$	2,381,476	$	2,376,592
Government payers	186,432		167,975		364,312		328,493
Patients	19,398		16,450		47,266		43,972
Net revenue	$	1,442,400	$	1,416,085	$	2,793,054	$	2,749,057

5. INCOME TAXES

During the three months ended June 30, 2026, the Company recorded income tax expense of $20.1 million, representing an effective tax rate of 27.1%, compared with income tax expense of $18.3 million and an effective tax rate of 26.6% for the three months ended June 30, 2025. During the six months ended June 30, 2026, the Company recorded income tax expense of $35.7 million, representing an effective tax rate of 26.5%, compared with income tax expense of $35.2 million and an effective tax rate of 26.5% for the six months ended June 30, 2025. The Company’s effective tax rates for each period exceeded the federal statutory rate of 21.0% primarily due to state income taxes and various non-deductible expenses. The tax expenses consist of quarterly federal and state tax liabilities as well as recognized deferred federal and state tax expense.

Table of Contents

6. 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 for determining whether the inclusion of common stock equivalents would be anti-dilutive. The computation of diluted shares for the three and six months ended June 30, 2026 and 2025 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:


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Stock option awards	1,114,846	459,133	779,409	698,775
Restricted stock awards	1,152,170	191,393	1,057,060	658,340
Performance stock unit awards	365,508	633	269,624	293,010

The following table presents the Company’s basic earnings per share and shares outstanding (in thousands, except per share data):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Numerator:
Net income	$	53,913	$	50,523	$	99,256	$	97,265
Denominator:
Weighted average number of common shares outstanding	152,931		162,931		154,782		164,188
Earnings per common share:
Earnings per common share, basic	$	0.35	$	0.31	$	0.64	$	0.59

The following table presents the Company’s diluted earnings per share and shares outstanding (in thousands, except per share data):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Numerator:
Net income	$	53,913	$	50,523	$	99,256	$	97,265
Denominator:
Weighted average number of common shares outstanding	152,931		162,931		154,782		164,188
Effect of dilutive securities	554		1,202		990		1,214
Weighted average number of common shares outstanding, diluted	153,485		164,133		155,772		165,402
Earnings per common share:
Earnings per common share, diluted	$	0.35	$	0.31	$	0.64	$	0.59

Table of Contents

7. LEASES

During the three and six months ended June 30, 2026, the Company incurred operating lease expenses of $9.4 million and $19.9 million, respectively. During the three and six months ended June 30, 2025, the Company incurred operating lease expenses of $8.8 million and $17.0 million, respectively. Operating lease expense includes 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 June 30, 2026 and December 31, 2025, the weighted-average remaining lease term was 6.4 years and 6.5 years, respectively, and the weighted-average discount rate was 7.06% and 6.97%, respectively.

Operating leases mature as follows (in thousands):


Fiscal Year Ended December 31,	Minimum Payments
2026	$	15,675
2027	27,128
2028	21,285
2029	16,695
2030	13,564
Thereafter	43,855
Total lease payments	138,202
Less: interest	(28,943)
Present value of lease liabilities	$	109,259

During the six months ended June 30, 2026 and 2025, the Company commenced new leases, extensions and amendments, resulting in non-cash operating activities in the unaudited condensed consolidated statements of cash flows of $8.3 million and $21.6 million, respectively, related to the increases in the operating lease right-of-use assets and operating lease liabilities. As of June 30, 2026, the Company did not have any significant operating or financing leases that had not yet commenced.

Table of Contents

8. PROPERTY AND EQUIPMENT

Property and equipment was as follows as of June 30, 2026 and December 31, 2025 (in thousands):


	June 30, 2026		December 31, 2025
Infusion pumps	$	35,747	$	36,497
Equipment, furniture and other	30,639		28,087
Leasehold improvements	137,754		126,651
Computer software, purchased and internally developed	60,444		58,608
Assets under development	23,292		19,207
	287,876		269,050
Less: accumulated depreciation	(147,468)		(129,814)
Property and equipment, net	$	140,408	$	139,236

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 six months ended June 30, 2026 and 2025 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Depreciation expense in cost of revenue	$	930	$	712	$	1,678	$	1,339
Depreciation expense in operating expenses	8,183		6,944		13,820		13,593
Total depreciation expense	$	9,113	$	7,656	$	15,498	$	14,932

Table of Contents

9. GOODWILL AND OTHER INTANGIBLE ASSETS

There was no change in the carrying amount of goodwill for the three and six months ended June 30, 2026.

Changes in the carrying amount of goodwill consist of the following for the three and six months ended June 30, 2025 (in thousands):


	Amount
Balance at December 31, 2024	$	1,540,246
Acquisitions	65,684
Balance at March 31, 2025	$	1,605,930
Purchase accounting adjustments	(75)
Balance at June 30, 2025	$	1,605,855

The carrying amount and accumulated amortization of intangible assets consist of the following as of June 30, 2026 and December 31, 2025 (in thousands):


	June 30, 2026		December 31, 2025
Gross intangible assets:
Referral sources	$	551,188	$	551,188
Trademarks/names	46,808		46,808
Other amortizable intangible assets	985		985
Total gross intangible assets	598,981		598,981

Accumulated amortization:
Referral sources	(280,778)		(263,907)
Trademarks/names	(26,740)		(25,170)
Other amortizable intangible assets	(824)		(726)
Total accumulated amortization	(308,342)		(289,803)
Total intangible assets, net	$	290,639	$	309,178

Amortization expense for intangible assets was $9.3 million and $18.5 million for the three and six months ended June 30, 2026, respectively. Amortization expense for intangible assets was $9.3 million and $18.4 million for the three and six months ended June 30, 2025, respectively.

Table of Contents

10. INDEBTEDNESS

Long-term debt consisted of the following as of June 30, 2026 (in thousands):


	Principal Amount		Discount		Debt Issuance Costs		Net Balance
Revolver Facility	$	—	$	—	$	—	$	—
First Lien Term Loan	672,915		(4,233)		(4,592)		664,090
Senior Notes	500,000		—		(5,270)		494,730
	$	1,172,915	$	(4,233)	$	(9,862)	1,158,820
Less: current portion							(6,780)
Total long-term debt							$	1,152,040

Long-term debt consisted of the following as of December 31, 2025 (in thousands):


	Principal Amount		Discount		Debt Issuance Costs		Net Balance
Revolver Facility	$	—	$	—	$	—	$	—
First Lien Term Loan	676,305		(4,552)		(4,937)		666,816
Senior Notes	500,000		—		(5,984)		494,016
	$	1,176,305	$	(4,552)	$	(10,921)	1,160,832
Less: current portion							(6,780)
Total long-term debt							$	1,154,052

On March 30, 2026, the Company entered into the fifth amendment (the “Fifth Amendment”) to the amended and restated First Lien Credit Agreement (the “Credit Agreement”) dated as of October 27, 2021. The Fifth Amendment, among other things, increases the existing revolving credit commitments under the Credit Agreement (the “Revolver Facility”) by $450.0 million, resulting in an aggregate capacity amount of $850.0 million.

The interest rate on the Company’s term loan (the “First Lien Term Loan”) was 5.37% and 5.67% as of June 30, 2026 and December 31, 2025, respectively. The weighted average interest rate incurred on the First Lien Term Loan was 5.40% and 5.42% for the three and six months ended June 30, 2026, respectively. The weighted average interest rate incurred on the First Lien Term Loan was 6.57% and 6.58% for the three and six months ended June 30, 2025, respectively. The First Lien Term Loan matures on September 22, 2032.

The interest rate on the Senior Unsecured Notes (the “Senior Notes”) was 4.375% as of June 30, 2026 and December 31, 2025. The weighted average interest rate incurred on the Senior Notes was 4.375% for the three and six months ended June 30, 2026 and 2025. The Senior Notes mature on October 31, 2029.

As of June 30, 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. 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
2026	$	3,390
2027	6,780
2028	6,780
2029	506,780
2030	6,780
Thereafter	642,405
Total	$	1,172,915

During the three and six months ended June 30, 2026 and 2025, 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 June 30, 2026 (in thousands):


Financial Instrument	Carrying Value as of June 30, 2026		Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
First Lien Term Loan	$	664,090	$	—	$	672,915	$	—
Senior Notes	494,730		—		476,250		—
Total debt instruments	$	1,158,820	$	—	$	1,149,165	$	—

See Note 12, Fair Value Measurements, for further discussion.

Table of Contents

11. 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):

Fair Value - Derivatives in Asset Position

Derivative

Balance Sheet Caption

June 30, 2026

December 31, 2025

Interest rate cap designated as cash flow hedge

Prepaid expenses and other current assets

3,014

5,501

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):


	Three Months Ended June 30,				Six Months Ended June 30,
Derivative	2026		2025		2026		2025
Interest rate cap designated as cash flow hedge	$	(1,516)	$	(2,232)	$	(2,487)	$	(5,413)

The following table presents the amount and location of pre-tax income (loss) recognized in the Company’s unaudited condensed consolidated statements of comprehensive income related to the Company’s derivative instruments (in thousands):


		Three Months Ended June 30,				Six Months Ended June 30,
Derivative	Income Statement Caption	2026		2025		2026		2025
Interest rate cap designated as cash flow hedge	Interest expense, net	$	1,695	$	2,210	$	3,403	$	4,401

Table of Contents

12. 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 June 30, 2026 and December 31, 2025.

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. Material loss contingencies, if any, are accrued for when they are probable and reasonably estimable, and are disclosed when they are reasonably possible. 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 financial statements.

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.

Table of Contents

14. 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 13,101,734 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 June 30, 2026 and December 31, 2025. During the three and six months ended June 30, 2026, total stock-based incentive compensation expense recognized by the Company related to the 2018 Plan was $8.4 million and $18.6 million, respectively. During the three and six months ended June 30, 2025, total stock-based incentive compensation expense recognized by the Company related to the 2018 Plan was $10.7 million and $19.5 million, respectively.

15. STOCKHOLDERS’ EQUITY

Warrants — As of June 30, 2026 and December 31, 2025, the Company had warrants outstanding which entitle holders to purchase an immaterial number of shares of common stock.

Share Repurchase Program — In January 2026, the Company’s Board of Directors approved an increase to its 2025 share repurchase program authorization from $500.0 million to $1.0 billion 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 six months ended June 30, 2026, the Company purchased 7,351,057 and 7,880,038 shares of common stock for an average share price of $20.41 and $21.26, totaling $150.0 million and $167.5 million, respectively. During the three and six months ended June 30, 2025, the Company purchased 1,553,871 and 4,600,086 shares of common stock for an average share price of $32.18 and $32.61, totaling $50.0 million and $150.0 million, respectively. All repurchased shares became treasury stock. As of June 30, 2026, the Company is authorized to repurchase up to a remaining $525.0 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 six months ended June 30, 2026 and 2025 (in thousands):


	2026	2025
Balance at beginning of the year	156,858	166,261
Equity award issuances	659	529
Share repurchases	(529)	(3,046)
Balance at March 31,	156,988	163,744
Equity award issuances	140	104
Share repurchases	(7,351)	(1,554)
Balance at June 30,	149,777	162,294

Table of Contents

16. 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 $2.0 million and $3.9 million for the three and six months ended June 30, 2026, respectively. The Company recorded management fee income of $1.9 million and $3.7 million for the three and six months ended June 30, 2025, respectively. Management fees are recorded in net revenues in the accompanying unaudited condensed consolidated statements of comprehensive income. During the three and six months ended June 30, 2026, the Company received distributions from the investees of $1.1 million. During the three and six months ended June 30, 2025, the Company received distributions from the investees of $1.6 million.

The Company had amounts due from its joint ventures of $0.9 million and due to its joint ventures of $0.2 million as of June 30, 2026. The Company had amounts due to its joint ventures of $2.7 million as of December 31, 2025. Receivables were included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets, while 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 operates as a single reportable segment, infusion services. Infusion services derive 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 decide on 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):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Infusion services net revenue	$	1,416,777	$	1,393,008	$	2,742,784	$	2,704,189
Other revenue (1)	25,623		23,077		50,270		44,868
Total Option Care Health revenue	1,442,400		1,416,085		2,793,054		2,749,057
(Expense) Income:
Cost of net revenues - drugs	(1,024,241)		(1,004,610)		(1,973,605)		(1,937,678)
Salaries, benefits, and other employee expense	(213,631)		(212,195)		(430,224)		(417,887)
Other segment items (2)	(101,936)		(100,329)		(199,181)		(199,607)
Depreciation and amortization expense	(17,452)		(16,241)		(32,359)		(31,987)
Interest expense, net	(14,020)		(14,447)		(27,324)		(27,678)
Equity in earnings of joint ventures	1,704		1,395		3,393		3,124
Other, net	1,163		(797)		1,236		(4,927)
Income tax expense	(20,074)		(18,338)		(35,734)		(35,152)
Net Income	$	53,913	$	50,523	$	99,256	$	97,265

(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.

Table of Contents

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 Quarterly Report on Form 10-Q (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, provide infusion therapy and other ancillary health care services through a national network of 86 full service pharmacies and 187 ambulatory infusion suites, including 32 with advanced practitioner capabilities. 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. 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.

Table of Contents

Composition of Results of Operations

The following results of operations include the accounts of Option Care Health and our subsidiaries for the three and six months ended June 30, 2026 and 2025.

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 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.

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 income (expense) 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.

Table of Contents

Results of Operations

The following table presents Option Care Health’s consolidated results of operations for the three and six months ended June 30, 2026 and 2025 (in thousands, except for percentages):


	Three Months Ended June 30,								Six Months Ended June 30,
	2026				2025				2026				2025
	Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue
NET REVENUE	$	1,442,400	100.0	%	$	1,416,085	100.0	%	$	2,793,054	100.0	%	$	2,749,057	100.0	%
COST OF REVENUE	1,175,149		81.5	%	1,147,042		81.0	%	2,263,789		81.1	%	2,216,962		80.6	%
GROSS PROFIT	267,251		18.5	%	269,043		19.0	%	529,265		18.9	%	532,095		19.4	%

OPERATING COSTS AND EXPENSES:
Selling, general and administrative expenses	164,659		11.4	%	170,092		12.0	%	339,221		12.1	%	338,210		12.3	%
Depreciation and amortization expense	17,452		1.2	%	16,241		1.1	%	32,359		1.2	%	31,987		1.2	%
Total operating expenses	182,111		12.6	%	186,333		13.2	%	371,580		13.3	%	370,197		13.5	%
OPERATING INCOME	85,140		5.9	%	82,710		5.8	%	157,685		5.6	%	161,898		5.9	%

OTHER INCOME (EXPENSE):
Interest expense, net	(14,020)		(1.0)	%	(14,447)		(1.0)	%	(27,324)		(1.0)	%	(27,678)		(1.0)	%
Equity in earnings of joint ventures	1,704		0.1	%	1,395		0.1	%	3,393		0.1	%	3,124		0.1	%
Other, net	1,163		0.1	%	(797)		(0.1)	%	1,236		—	%	(4,927)		(0.2)	%
Total other (expense) income	(11,153)		(0.8)	%	(13,849)		(1.0)	%	(22,695)		(0.8)	%	(29,481)		(1.1)	%

INCOME BEFORE INCOME TAXES	73,987		5.1	%	68,861		4.9	%	134,990		4.8	%	132,417		4.8	%
INCOME TAX EXPENSE	20,074		1.4	%	18,338		1.3	%	35,734		1.3	%	35,152		1.3	%
NET INCOME	$	53,913	3.7	%	$	50,523	3.6	%	$	99,256	3.6	%	$	97,265	3.5	%

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Change in unrealized (loss) gain on cash flow hedges, net of income tax benefit (expense) of $374, $548, $613 and $1,331, respectively	(1,142)		(0.1)	%	(1,684)		(0.1)	%	(1,874)		(0.1)	%	(4,082)		(0.1)	%
OTHER COMPREHENSIVE (LOSS) INCOME	(1,142)		(0.1)	%	(1,684)		(0.1)	%	(1,874)		(0.1)	%	(4,082)		(0.1)	%
NET COMPREHENSIVE INCOME	$	52,771	3.7	%	$	48,839	3.4	%	$	97,382	3.5	%	$	93,183	3.4	%

Table of Contents

Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025

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 June 30, 2026 and 2025.

Gross Profit


	Three Months Ended June 30,
	2026			2025			Variance

	(in thousands, except for percentages)
Net revenue	$	1,442,400		$	1,416,085		$	26,315	1.9	%
Cost of revenue	1,175,149			1,147,042			28,107		2.5	%
Gross profit	$	267,251		$	269,043		$	(1,792)	(0.7)	%
Gross profit margin	18.5		%	19.0		%

The increase in net revenue was primarily driven by continued strong growth in the Company's acute portfolio of therapies, which saw high single-digit growth over the prior year, reflecting ongoing success in maintaining referral source and payer relationships and strong partnerships with hospitals and health systems. The Company’s chronic portfolio of therapies was flat versus the prior year. This was driven by growth in both the IG/neuro and rare and orphan portfolio and offset by a decline within the chronic inflammatory disease ("CID") portfolio, primarily due to patient attrition and unfavorable therapy mix. Management continues to expect CID-related dynamics to negatively impact gross profit by approximately $55 million during 2026.

The increase in cost of revenue was primarily attributable to higher revenue volumes and changes in therapy mix. Gross profit decreased slightly primarily due to the impact of shifts in therapy mix, including the continued headwinds in the CID portfolio, partially offset by growth in higher-margin therapies and ongoing operational initiatives.

Operating Expenses


	Three Months Ended June 30,
	2026		2025		Variance

	(in thousands, except for percentages)
Selling, general and administrative expenses	$	164,659	$	170,092	$	(5,433)	(3.2)	%
Depreciation and amortization expense	17,452		16,241		1,211		7.5	%
Total operating expenses	$	182,111	$	186,333	$	(4,222)	(2.3)	%

The decrease in selling, general and administrative expenses during the three months ended June 30, 2026 was primarily attributable to lower performance-based compensation expense, and disciplined execution of cost management and efficiency initiatives. These decreases were partially offset by continued investments in strategic growth initiatives, including commercial and operational capabilities that support long-term business growth.

Table of Contents

Other Income (Expense)


	Three Months Ended June 30,
	2026		2025		Variance

	(in thousands, except for percentages)
Interest expense, net	$	(14,020)	$	(14,447)	$	427	(3.0)	%
Equity in earnings of joint ventures	1,704		1,395		309		22.2	%
Other, net	1,163		(797)		1,960		NM(1)
Total other (expense) income	$	(11,153)	$	(13,849)	$	2,696	(19.5)	%

(1) Not meaningful

The change in Other, net during the three months ended June 30, 2026 was primarily attributable to adjustments related to certain unclaimed property liabilities recorded in the prior year with no comparable activity in the current-year quarter.

Income Tax Expense


	Three Months Ended June 30,
	2026		2025		Variance

	(in thousands, except for percentages)
Income tax expense	$	20,074	$	18,338	$	1,736	9.5	%

Income tax expense increased $1.7 million, or 9.5%, to $20.1 million for the three months ended June 30, 2026 compared to $18.3 million for the three months ended June 30, 2025. The Company’s effective tax rates were 27.1% and 26.6% for the three months ended June 30, 2026 and 2025, respectively, compared to the U.S. federal statutory rate of 21.0%. The Company’s effective tax rate for the three months ended June 30, 2026 and three months ended June 30, 2025 were higher than the U.S. federal statutory rate primarily due to state income taxes and various non-deductible expenses.

Table of Contents

Net Income and Other Comprehensive (Loss) Income


	Three Months Ended June 30,
	2026		2025		Variance

	(in thousands, except for percentages)
Net income	$	53,913	$	50,523	$	3,390	6.7	%
Other comprehensive income (loss), net of tax:
Change in unrealized (loss) gain on cash flow hedges, net of income taxes	(1,142)		(1,684)		542		(32.2)	%
Other comprehensive (loss) income	(1,142)		(1,684)		542		(32.2)	%
Net comprehensive income	$	52,771	$	48,839	$	3,932	8.1	%

The change in net income was attributable to the factors described in the above sections.

For the three months ended June 30, 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 $52.8 million for the three months ended June 30, 2026, compared to net comprehensive income of $48.8 million for the three months ended June 30, 2025, primarily as a result of the factors described in the above sections.

Table of Contents

Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025

Gross Profit


	Six Months Ended June 30,
	2026			2025			Variance

	(in thousands, except for percentages)
Net revenue	$	2,793,054		$	2,749,057		$	43,997	1.6	%
Cost of revenue	2,263,789			2,216,962			46,827		2.1	%
Gross profit	$	529,265		$	532,095		$	(2,830)	(0.5)	%
Gross profit margin	18.9		%	19.4		%

The increase in net revenue was primarily driven by continued strong growth in the Company's acute portfolio of therapies, which saw high single-digit growth over the prior year, reflecting ongoing success in maintaining referral source and payer relationships and strong partnerships with hospitals and health systems. The Company’s chronic portfolio of therapies experienced a slight decline versus the prior year. This was driven by growth in both the IG/neuro and rare and orphan portfolio and offset by a decline within the CID portfolio, primarily due to patient attrition and unfavorable therapy mix.

Operating Expenses


	Six Months Ended June 30,
	2026		2025		Variance

	(in thousands, except for percentages)
Selling, general and administrative expenses	$	339,221	$	338,210	$	1,011	0.3	%
Depreciation and amortization expense	32,359		31,987		372		1.2	%
Total operating expenses	$	371,580	$	370,197	$	1,383	0.4	%

Selling, general and administrative expenses during the six months ended June 30, 2026 remained relatively flat primarily due to lower performance-based compensation expense, disciplined expense management, and continued benefits from initiatives focused on improving operating efficiencies and optimizing administrative processes, partially offset by 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.

Table of Contents

Other Income (Expense)


	Six Months Ended June 30,
	2026		2025		Variance

	(in thousands, except for percentages)
Interest expense, net	$	(27,324)	$	(27,678)	$	354	(1.3)	%
Equity in earnings of joint ventures	3,393		3,124		269		8.6	%
Other, net	1,236		(4,927)		6,163		NM(1)
Total other (expense) income	$	(22,695)	$	(29,481)	$	6,786	(23.0)	%

(1) Not meaningful

The change in other, net during the six months ended June 30, 2026 was primarily attributable to an accrual for an unclaimed property audit recorded in the prior year 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 June 30, 2026, the matters related to this program are ongoing.

Income Tax Expense


	Six Months Ended June 30,
	2026		2025		Variance

	(in thousands, except for percentages)
Income tax expense	$	35,734	$	35,152	$	582	1.7	%

Income tax expense increased $0.6 million, or 1.7%, to $35.7 million for the six months ended June 30, 2026 compared to $35.2 million for the six months ended June 30, 2025. The Company’s effective tax rates were 26.5% for both six months ended June 30, 2026 and 2025, compared to the U.S. federal statutory rate of 21.0%. The Company’s effective tax rate for the six months ended June 30, 2026 and six months ended June 30, 2025 was higher than the U.S. federal statutory rate primarily due to state income taxes and various non-deductible expenses.

Table of Contents

Net Income and Other Comprehensive (Loss) Income


	Six Months Ended June 30,
	2026		2025		Variance

	(in thousands, except for percentages)
Net income	$	99,256	$	97,265	$	1,991	2.0	%
Other comprehensive income (loss), net of tax:
Change in unrealized (loss) gain on cash flow hedges, net of income taxes	(1,874)		(4,082)		2,208		(54.1)	%
Other comprehensive (loss) income	(1,874)		(4,082)		2,208		(54.1)	%
Net comprehensive income	$	97,382	$	93,183	$	4,199	4.5	%

The change in net income was attributable to the factors described in the above sections.

For the six months ended June 30, 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 $97.4 million for the six months ended June 30, 2026, compared to net comprehensive income of $93.2 million for the six months ended June 30, 2025, primarily as a result of the factors described in the above sections.

Table of Contents

Liquidity and Capital Resources

For the six months ended June 30, 2026 and the twelve months ended December 31, 2025, the Company’s primary sources of liquidity were cash and cash equivalents of $193.8 million and $232.6 million, respectively. As of June 30, 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 six months ended June 30, 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 share repurchases, and the pursuit of acquisitions.

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 cash 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 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 periodic repurchases of Company shares and the pursuit of strategic tuck-in and adjacent 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 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. 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, 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.

Table of Contents

Credit Facilities

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 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.

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 $850.0 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 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 June 30, 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 $295.5 million based on final maturity dates of the Company’s credit facilities. Interest payments are calculated based on current rates as of June 30, 2026. Actual payments are based on changes in SOFR and exclude the interest rate cap derivative instrument.

Table of Contents

Cash Flows

Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025

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


	Six Months Ended June 30,
	2026		2025		Variance

	(in thousands)
Net cash provided by operating activities	$	171,485	$	83,119	$	88,366
Net cash used in investing activities	(21,000)		(135,713)		114,713
Net cash used in financing activities	(189,342)		(161,153)		(28,189)
Net (decrease) increase in cash and cash equivalents	(38,857)		(213,747)		174,890
Cash and cash equivalents - beginning of period	232,624		412,565		(179,941)
Cash and cash equivalents - end of period	$	193,767	$	198,818	$	(5,051)

Cash Flows from Operating Activities

The increase in cash provided by operating activities during the six months ended June 30, 2026 was primarily driven by a reduction in inventory levels resulting from the Company's ongoing supply chain management initiatives and working capital optimization efforts. The Company continued to focus on improving inventory purchasing practices, enhancing demand forecasting, and aligning inventory levels with patient needs, which reduced the amount of cash invested in inventory during the period.

Cash Flows from Investing Activities

Cash used in investing activities during the six months ended June 30, 2026 was primarily related capital expenditures. Cash used in investing activities during the six months ended June 30, 2025 was primarily attributable to the Intramed Plus acquisition with no comparable activity during the six months ended June 30, 2026.

Cash Flows from Financing Activities

The increase in cash used in financing activities was primarily related to the Company’s $167.5 million repurchase of common stock during the six months ended June 30, 2026, compared to the Company’s $150.0 million repurchase of common stock during the six months ended June 30, 2025.

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.

Table of Contents

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 June 30, 2026. 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 June 30, 2026.

Changes in Internal Controls over Financial Reporting

There were no changes in our internal control over financial reporting during the three months ended June 30, 2026 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Table of Contents

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

In January 2025, the Company’s Board of Directors authorized a share repurchase program of up to an aggregate $500 million of common stock of the Company. In January 2026, the Company’s Board of Directors authorized an increase to its 2025 share repurchase program authorization from $500 million to $1 billion. This program has no specified expiration date.

The following table provides certain information with respect to the Company’s repurchases of common stock from April 1, 2026 through June 30, 2026:


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
April 1, 2026 - April 30, 2026	—	$	—	—	$	675,000,977
May 1, 2026 - May 31, 2026	7,351,057	20.41		7,351,057	525,000,993
June 1, 2026 - June 30, 2026	—	—		—	525,000,993
	7,351,057	$	20.41	7,351,057	$	525,000,993

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 June 30, 2026.

Table of Contents

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).
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

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


OPTION CARE HEALTH, INC.

Date: July 29, 2026			/s/ Meenal Sethna
Meenal Sethna
Chief Financial Officer and Executive Vice President
(Principal Financial Officer and Duly Authorized Officer)

Option Care Health - 10-Q quarterly report FY2026 Q2

What is the market capitalization of a company?

DISCLAIMER

Contact

Links


		Page Number
PART I

Item 1.	Financial Statements	4
	Condensed Consolidated Balance Sheets	5
	Unaudited Condensed Consolidated Statements of Comprehensive Income	6
	Unaudited Condensed Consolidated Statements of Cash Flows	7
	Unaudited Condensed Consolidated Statements of Stockholders’ Equity	8
	Notes to Unaudited Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34

PART II

Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 5.	Other Information	35
Item 6.	Exhibits	36

SIGNATURES		37