Adjusted EBITDA improved to $9.1 million from a loss of $0.3 million in Q2 2024.
Adjusted revenue for Q2 2025 was $90.5 million, up 14% year-over-year excluding prior period test revenue adjustments.
Cash from operations was $10 million, ending the quarter with $186 million in cash and no debt after a $50 million share repurchase.
Non-GAAP gross margin improved by 340 basis points to 70.4%, with Testing Services margin at 77.6%, Patient & Digital Solutions at 39.5%, and Lab Products at 63.9%.
Operating expenses increased 3% year-over-year to $56.7 million, well below revenue growth, reflecting operational leverage.
Patient & Digital Solutions revenue grew 19% to $12.8 million, and Lab Products revenue increased 12% to $11.8 million.
Reported revenue was $86.7 million, including a $3.8 million write-off related to prior period tests, down 6% year-over-year.
Testing Services revenue was $66 million adjusted, up 14% year-over-year with approximately 49,500 tests delivered, marking the eighth consecutive quarter of volume growth.
Adjusted EBITDA grew 5.2% to $114 million, representing 8.1% of net revenue, and adjusted EPS increased 10.8% to $0.41.
Cash flow from operations exceeded $90 million in the quarter, with expectations to generate over $320 million for the full year.
Gross profit was $269 million, up almost 8% versus the prior year, despite gross margin rate pressure from lower-margin limited distribution and rare and orphan therapies.
Option Care Health delivered a strong second quarter with 15% revenue growth year-over-year, driven by mid-teens growth in both acute and chronic therapy portfolios.
The company repurchased $50 million in shares during the quarter, reflecting confidence in the business and its long-term potential.
Dafinchi