Adjusted EBITDA grew 8.4% over prior year quarter, with a substantial portion from core operations.
Adjusted EBITDA margin improved by 30 basis points compared to prior year quarter.
Cash flow from operations was $4.2 billion; capital expenditures were $1.2 billion; share repurchases were $2.5 billion; dividends were $171 million.
Contract labor improved to 4.3% of total labor costs from 4.6% in prior year quarter.
Equivalent admissions increased 1.7% for the quarter and 2.3% year-to-date.
Managed care equivalent admissions grew 4% year-to-date, Medicare grew 3%, Medicaid was slightly down, and self-pay was slightly up but below expectations.
Revenue grew 6.4%, driven by greater demand, improved payer mix, and consistent patient acuity.
Supply expense increased slightly due to cardiac-related device spending.
The company reported a 24% increase in diluted earnings per share as adjusted to $6.84 for Q2 2025.
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.
Cash balance ended at $401 million, up $90 million from March 31, 2025.
Cash increased by approximately $90 million to over $400 million at quarter end due to improved billing cycle and healthy AR collections.
Earnings per share were $1.03 and diluted EPS was $0.92 for 2Q 2025.
Net income for 2Q was $35 million, a 186% year-over-year increase and 36% sequentially.
OCS Lung experienced approximately 14% sequential growth in 2Q.
Operating expenses for 2Q were $60 million, up 6% year-over-year, driven by 15% increase in R&D and 3% increase in SG&A.
Operating income for 2Q was $37 million, up 192% year-over-year and 33% sequentially, with operating margin expanding to 23%.
Operating profit was approximately $36.6 million in 2Q, representing more than 23% of total revenue and up from $27.4 million or 19% of total revenue in 1Q 2025.
Overall gross margin for 2Q was steady at 61.4%, similar to Q1.
Product revenue for 2Q reached $96 million, up 34% year-over-year and 9% sequentially.
Sequential growth was experienced across all 3 organ segments, driven by higher overall utilization and center penetration of OCS NOP in the U.S.
Service revenue for 2Q was $61 million, a 44% increase year-over-year and 11% sequentially.
Total gross margin for the quarter was approximately 61%, up 78 basis points compared to Q2 2024.
Total revenue for 2Q 2025 was $157.4 million, representing approximately 38% growth year-over-year and approximately 10% sequential growth from 1Q 2025.
Transplant logistics service revenue for 2Q was $29.8 million, representing 56% year-over-year and 14% sequential growth.
U.S. transplant revenue was approximately $152 million, up 40% year-over-year and 10% sequentially.
Adjusted EBITDA increased to $6.1 million or 24% of revenue, up from $3.9 million or 20% last year, reflecting improved gross margin and operational leverage.
BioLife Solutions reported Q2 2025 revenue of $25.4 million, a 29% year-over-year increase driven primarily by a 28% increase in cell processing revenue.
Cash and marketable securities totaled $100.2 million at quarter end, down from $107.6 million at the end of Q1, with cash usage driven by PanTHERA acquisition, debt repayments, and capital expenditures.
GAAP gross margin decreased slightly to 62% from 64% in Q2 2024, while adjusted gross margin was 65% compared to 67% last year, impacted by fleet repair costs and product mix.
GAAP net loss was $15.8 million or $0.33 per share, impacted by the IPR&D expense; excluding this, net loss per share would have been $0.01.
GAAP operating expenses rose to $42.1 million from $21 million, mainly due to a $15.5 million noncash IPR&D expense related to the PanTHERA acquisition and increased stock-based compensation.
GAAP operating loss was $16.6 million versus $1.3 million in the prior year, with adjusted operating loss improving slightly to $0.5 million from $0.8 million.
Dafinchi